FOWLER AND RENSSELAER, IND. — BWE has arranged a $10.8 million USDA RHS 538 GRRHP loan to provide permanent financing for the renovation of two affordable housing properties totaling 132 units in Indiana. Madison Cottages of Benton County, located in Fowler, totals 61 units across eight buildings. Madison Cottage of Rensselaer features 71 units across 12 buildings. All of the units are reserved for tenants earning up to 60 percent of the area median income. Lundat Kassa and Bob Morton of BWE structured the loan with a 40-year term and amortization. The project received additional financing through the use of 4 percent Low-Income Housing Tax Credits provided by the Indiana Housing and Community Development Authority.
ONTARIO, CALIF. — Adept Urban Development has obtained $107 million in financing for the construction of Adept Ontario, a master-planned, mixed-use development at 4117 E. Concours St. in Ontario. Situated adjacent to Toyota Arena, the first phase of Adept Ontario will include 384 multifamily units and 26,000 square feet of retail space, as well as several digital media signs. Stefen Chraghchian of Marcus & Millichap Capital Corp. secured the financing with Affinius Capital and Bank OZK on behalf of the developer.
SANTA CLARA AND SAN JOSE, CALIF. — Gantry has secured an $11 million permanent loan to refinance two industrial properties in Santa Clara and San Jose. Totaling 78,250 rentable square feet, the properties are a flex-industrial building at 3175 De La Cruz Blvd. in Santa Clara and a single-tenant industrial facility at 1941 Ringwood Ave. in San Jose. Murphy Osborne and Alex Poulos of Gantry’s San Francisco office represented the borrower, a private real estate investor, in the financing. The 10-year, fixed-rate, cross-collateralized loan was secured through one of Gantry’s correspondent life company lenders. Terms include prepayment flexibility and 25-year amortization.
ST. LOUIS PARK, MINN. — Thorofare Capital, an affiliate of asset management platform Callodine Group LLC, has provided a $42.9 million bridge loan to refinance Risor of St. Louis Park, a 170-unit active adult community in the Minneapolis suburb of St. Louis Park. The borrower, Roers Cos., will use the financing primarily to retire an existing construction loan on the Class A property at 3510 Beltline Blvd. Completed in November 2023, the community is 78 percent leased. The six-story building features an interior courtyard and 4,000 square feet of ground-floor retail space. Amenities include a coffee bar, golf simulator, pet wash, fitness center, movie theater, library lounge, clubroom, pool, spa and pickleball court. Scott Loving, William Hintz, Scott Streiff and Gary Marchiori of JLL arranged the loan.
GREENPORT, N.Y. — New Jersey-based intermediary Cronheim Mortgage has arranged the $25 million refinancing of two Long Island hotels. The Sound View Hotel and Harbor Front Inn are both boutique waterfront properties that are located in the North Fork community of Greenport. Both hotels offer a variety of accommodations, and Sound View also houses food-and-beverage establishments. The sponsor is Eagle Point Hotel Partners. The direct lender was not disclosed.
BRASELTON, GA. AND MEMPHIS, TENN. — CBRE has arranged the sale of a two-property industrial portfolio in Braselton and Memphis totaling more than 1.6 million square feet. The facilities include a 613,440-square-foot cross-dock warehouse in Braselton, a city on the northeast outskirts of the metro Atlanta area, and a 1 million-square-foot cross-dock warehouse in Memphis. The Braselton facility was built in 2016 and is fully leased to a large e-commerce company, and the Memphis property was built in 2021 and is fully occupied by Medtronic. Frank Fallon, Trey Barry, José Lobon, Royce Rose, George Fallon, Ryan Bain, Zach Graham and Bentley Smith of CBRE represented the seller, JW Mitchell Co., in the transaction. The buyer and sales price were not disclosed. Additionally, Brian Linnihan, Mike Ryan, Richard Henry and Taylor Crowder of CBRE’s debt and structured finance team in Atlanta arranged a $69.9 million acquisition loan through Wells Fargo on behalf of the buyer.
PARKVILLE, MD. — Colliers Mortgage has arranged a $10.4 million HUD-insured loan for the refinancing of The Cottages of Perry Hall, a 64-unit seniors housing community in Parkville. Situated on 3.2 acres about seven miles northeast of Baltimore, the property features four cottages that provide assisted living and memory care living arrangements. Services and amenities at The Cottages of Perry Hall include 24-hour care, full-service dining, housekeeping, community and activities rooms, beauty salon, fully landscaped courtyards and secure outdoor space. Christopher Fenton and Catherine Eby of the Lenox, Mass., office of Colliers Mortgage, in partnership with Health Financing Consultants, arranged the financing on behalf of Charter Senior Living. The loan carries a 35-year term and amortization schedule.
ERIE, COLO. — The Minneapolis office of Colliers Mortgage has provided a $19.3 million HUD 213 loan for the construction of Village Cooperative of Erie, an age-restricted cooperative residential property in Erie. The borrower is Village Cooperative of Erie. The property will feature 64 one-, two- and two-bedroom plus den units with stainless steel appliances, nine-foot ceilings and in-unit washers/dryers. Community amenities will include underground heated parking, a fitness center, community room with serving kitchen and private meeting room, hobby room, parcel/mail room, on-site management, an elevator, community deck and garden plots.
EDINA, MINN. — Cushman & Wakefield has arranged an $11.3 million take-out refinancing package for The E, a boutique office building in the Minneapolis suburb of Edina. Located at 7201 Metro East Blvd., The E totals 108,000 square feet. Constructed in 1981 and fully renovated and rebranded in 2021, the property is 94 percent occupied by 11 tenants. More than 97,000 square feet of new tenancy followed a $6.7 million renovation of the asset. Adam Hoffman, Jeff Altenau, Zach Yarnoff and Avery Ticer of Cushman & Wakefield represented the owner, City Center Realty Partners/Contrarian Capital Management, in securing the bank financing.
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Lee & Associates Report: Final Quarter 2024 Net Absorption Trends in Industrial, Office Likely Temporary; Multifamily, Retail Net Absorption Trajectories Stickier
Lee & Associates’ 2024 Q4 North America Market Report looks back at the tenant demand, absorption rates and vacancy trends for industrial, office, retail and multifamily sectors nationwide to extrapolate what might be on the horizon for 2025 and beyond. While net absorption in industrial and retail is down from the same period in 2023, the reasons — too much supply in the pipeline versus too little — are opposite for each sector. Similar mirroring due to reverse factors can be seen in the net positive absorption last quarter in office and multifamily. Net industrial absorption was down 45 percent in the last quarter of 2024, compared to the same quarter in 2023. However, vacancy rates are likely to decline this year due to a lower volume of construction starts completing in 2025. New in-office policies among prominent companies contributed to the office market’s second consecutive quarter of positive absorption, but overall, office vacancy numbers are expected to continue rising until 2026. Low vacancy and factors challenging development meant very few options for retail tenants seeking new, high-quality space. Retail tenants in the food and beverage arena have been taking advantage of increased national spending on food outside the home …