PAPILLION, NEB. — Lancaster Pollard has provided a $23.4 million HUD loan for the refinancing of The Cottages at Hillcrest Country Estates in Papillion, about 15 miles southwest of Omaha. The Cottages features 126 skilled nursing beds and 12 independent units. The property is located within Hillcrest Country Estates, a planned 44-acre community featuring independent living, assisted living, memory care and long-term care. The campus was designed and managed in such a way to allow for the individual components, such as the Cottages, to be financed separately. The 35-year, FHA 232/223(f) loan refinances the existing bank debt and inter-company notes used to construct and stabilize The Cottages. Quintin Harris led the transaction for Lancaster Pollard.
With asking rental rates increasing, an average vacancy rate of 5.7 percent and a low average asking rent per unit of just $855 per month, Omaha’s apartment market is increasingly attractive to national and regional investors. According to apartment research firm Reis, Omaha’s average asking rental rate has increased in every quarter for the past seven years, and is expected to increase by another 2.2 percent in 2018. While not stellar growth, it continues a steady march upward that has benefited owners in Omaha for quite some time. Driving the growth in rents is the balanced nature of the Omaha market coupled with Omaha’s strong underlying economy. From a population growth perspective, census data shows that Omaha’s metropolitan statistical area (MSA) has grown 1.2 percent per year since 2010, and is now estimated at 939,000 people. That steady trend is expected to continue for the foreseeable future, as Omaha’s population is projected to grow another 1.1 percent per year through 2022. In terms of absorption, Omaha has averaged an annual addition of 4,000 households over the past 10 years, according to Reis. Renters account for 34.3 percent of Omaha MSA’s housing units, translating to roughly 1,372 new renter households each …
GREENWOOD, NEB. — Byrne & Jones Construction Co. has completed a new asphalt plant in Greenwood, about 20 miles northeast of Lincoln. CMI Roadbuilding Inc., an asphalt plant supplier, assisted with the project. The property is located on eight acres at 13801 238th St. with close proximity to the highway. The St. Louis-based civil site contractor opened an office in Gretna, Neb. in 2014 to provide asphalt and concrete paving services to commercial, retail and institutional customers. The office serves clients in Omaha, Lincoln, southeast Nebraska and surrounding areas. Within the past year, Bryne & Jones has completed a number of asphalt projects in Nebraska, including projects for CarMax, Lowe’s and Lincoln Crossing Shopping Center.
The pace of evolution in the retail sector is accelerating in a manner that few would have anticipated even five years ago. E-commerce has proven to be a very powerful disruptor, affecting both retailers and property owners alike. For some who have had the foresight and financial resources to adapt to this change, the disruption has brought opportunities for growth and increased market share. Clearly, not all have been able to adapt — some due to lack of execution and others seemingly caught in circumstances beyond their control. Despite the turbulence within the retail category, overall U.S. retail sales grew a very respectable 4.2 percent during 2017, according to the U.S. Department of Commerce. The growth is attributed to continuing gains in employment and a marked improvement in economic growth during the second half of the year. On the local level, the Omaha retail market exhibited moderate improvement during 2017, following a year of weak performance in 2016. The market absorbed just over 364,000 square feet during the year (see chart), slightly under the average annual rate of 378,000 square feet for the past five years. The overall vacancy rate decreased from 11.2 percent to 10.5 percent during the year as …
OMAHA, NEB. — Scarlett Hotel Group has acquired the Marriott Fairfield Inn & Suites Downtown Omaha for an undisclosed price. The 113-room hotel is located at 1501 Nicholas St. near the TD Ameritrade Stadium and CenturyLink Convention Center and Arena. The four-story property recently underwent a renovation to upgrade all public spaces, including a completely revamped lobby and guest rooms. The seller was not disclosed.
OMAHA, NEB. — The Noddle Cos. has been selected to develop the new corporate headquarters for Kiewit Corp. in north downtown Omaha. The office building will range from 165,000 to 185,000 square feet. HDR designed the project, which also includes a parking garage for 650 cars. Construction costs are estimated at $76 million. The new headquarters for the construction and engineering organization will be situated across the street from Kiewit University. Construction is scheduled to begin in October and finish in 2020.
NORFOLK, NEB. — Darland Construction Co. is building a 130,000-square-foot medical office building for Faith Regional Health Services in Norfolk. The project, located in northeastern Nebraska, is slated for completion in spring 2019. The four-story building will include an outpatient surgery center on the main floor. The remainder of the building will be dedicated to women’s and children’s services, surgical and medical specialty offices and orthopedics. Avant Architects is the project architect.
OMAHA — Cushman & Wakefield/The Lund Co. has brokered the sale of Grandridge Apartments in Omaha for an undisclosed price. The 470-unit apartment property is located at 5439 N. 100th Plaza along I-680. Scott Koethe of Cushman & Wakefield/The Lund Co. represented the New York-based seller. Monarch Investment & Management Group purchased the asset.
LINCOLN, NEB. — Bellwether Enterprise Real Estate Capital LLC has arranged a $43 million acquisition loan and a $12.8 million equity placement for Links at Lincoln in Nebraska. The 612-unit workforce housing property is situated on 100 acres. Residents have access to the onsite nine-hole golf course. Other amenities include a fitness center, tennis court, playground, hot tub and tanning rooms. Phil Melton and John Roberts of Bellwether Enterprise arranged the $43 million Freddie Mac loan. Todd Johnson of Bellwether Enterprise arranged the $12.8 million equity investment.
OMAHA — NorthMarq Capital has arranged a $31 million loan for the refinancing of Park 120 in Omaha. The apartment property features 282 units. Josh Larsen of NorthMarq arranged the 12-year loan, which features a 30-year amortization schedule. A life insurance company provided the loan.