LINCOLN, NEB. — Metonic Real Estate Solutions has acquired a 72-unit apartment complex in Lincoln for an undisclosed price. Marshall Apartments was built in 1998 and consists of two three-story buildings. The buyer plans to make improvements to the amenities and units. Seldin Co. will manage the property. The seller in the transaction was undisclosed.
With a three-year average occupancy of 96 percent, Omaha’s apartment market has displayed strong fundamentals that we expect to continue this year and beyond. Given the strong tailwinds created by Omaha’s healthy economy — the local unemployment rate stood at 3.6 percent in January compared with 4.9 percent nationally — it is not surprising that occupancy is high, rents and revenues are rising and new developments continue. According to the recently released IREM fall 2015 Omaha Metropolitan Area Apartment Survey, the year-end market occupancy rate was a strong 96 percent, with the lowest submarket at 94 percent and the highest at an outstanding 98 percent. On a 10-year historical basis, the Omaha market’s occupancy rate has ranged from a low of 92 percent in 2008 to a high of 96 percent in both 2013 and 2015. Any owner will tell you a solid two percent gain in occupancy over a multi-year period has a significant impact on net operating income. Both rents and revenues continue to grow within the Omaha market. Most owners have been raising rents between 2 and 4 percent a year, and in some cases 5 percent. The general expectation is that rents and revenues will both …
OMAHA — Investors Real Estate Trust has sold the Nebraska Orthopaedic Hospital in Omaha for $24.3 million to the in-place tenant. The 61,758-square-foot facility is located at 2808 S. 143rd Plaza. The hospital provides services such as physical therapy, diagnostic imaging, surgery and rheumatology. The facility also features an infusion clinic. Investors Real Estate Trust primarily invests in income-producing medical office and apartment properties located in the upper Midwest.
It is difficult to find one aspect of the Omaha industrial market to highlight when recapping 2015. Quite frankly, about every single facet of the market improved last year: sale prices ticked up, land prices rose, absorption was positive, the vacancy rate was low, asking rental rates climbed, and there was plenty of new construction. There are no signs of this momentum slowing. What is even more telling is the steady trend in the same direction — the market has shown signs of improvement each of the last five years. There have not been one or two transactions skewing the metric. Sales prices of existing industrial property averaged $56 per square foot in 2015, and over 2 million square feet of inventory was sold. This is quite a jump over the average of $47 per square foot in 2014. We believe this uptick in sales prices is due to a number of factors, but most notably a combination of high demand, low inventory of platted industrial lots and high construction costs. Users have been forced to make a choice — build new product or rehab existing buildings. This dilemma has created a bit of an odd and possibly concerning scenario: …
LINCOLN, NEB. — HSA Commercial Real Estate has acquired a 42,040-square-foot medical office building in Lincoln for an undisclosed price. Elizabeth Park South Medical Center is located at 4501 S. 70th St. and is fully leased by The Physician Network’s East Lincoln Internal Medicine, Lincoln Pediatric Group and Lincoln Behavioral Group. The three tenants have occupied the building since it opened in 1996. Dana Hamric and Jonathan Kesler of Newmark Grubb Knight Frank represented the seller, MJM-MED LLC, in the transaction.
OMAHA, NEB. — Carter Validus Mission Critical REIT II Inc. has acquired Old Mill Rehabilitation in Omaha for $13 million. The property is a 40,402-square-foot skilled nursing facility that was built in 2014. Old Mill offers 44 private rooms with in-suite bathrooms and showers. Amenities include 24-hour room service and a full-service salon. Rehabilitation services at the facility include physical, occupational and speech therapy, IV therapy, medication management and wound care. Carter Validus Mission Critical REIT II is a non-traded real estate investment trust.
LINCOLN, NEB. — Easterly Government Properties Inc. has acquired a 137,671-square-foot government property in Lincoln. The building is currently leased to the General Services Administration on behalf of the U.S. Citizenship and Immigration Services (USCIS) with five years remaining on a 15-year lease. The property in Lincoln is part of the USCIS Nebraska Service Center, which is one of four national USCIS service centers across the country that provides services including the management of citizenship and naturalization processes, family member immigration, and U.S. work eligibility and authorizations. The building was constructed as a build-to-suit in 2005.
OMAHA, NEB. — Q10 | Daisley Ruff Financial has arranged $7 million in permanent financing for Aksarben Village 2, a Class A office property in Omaha. The loan features a 10-year, fixed-rate term with a 25-year amortization schedule. The non-recourse loan also features no holdbacks for tenant improvements or reserves. Steve Ruff and Eric Petersen of Q10 | Daisley Ruff Financial arranged the financing.
WAYNE, NEB. — Darland Construction Co. has broken ground on an expansion and remodeling project for Providence Medical Center located in Wayne, approximately 45 miles southwest of Sioux City, Iowa. Highlights of the project include a new emergency entrance, a new ambulance garage, 20 new patient rooms and the relocation of the pharmacy, X-ray lab, and administration offices. The expansion will add 9,150 square feet and will provide more space in the labor and delivery rooms. Completion of the renovation and expansion is slated for 2017. Avant Architects is serving as the primary architect on the project.
LINCOLN, NEB. — Q10 | Daisley Ruff Financial Corp. has arranged a $2.5 million refinancing loan for Meadowlane Shopping Center in Lincoln. The property consists of a 34,600-square-foot retail strip center, a 6,000-square-foot freestanding retail building and a 27,389-square-foot mixed-use building. Ace Hardware anchors the strip center. Other tenants of the strip center include Honest Abe’s, Great Wall, The Fit Canine and Slideware Electronics. Subway and One More Bar are the tenants in the freestanding building. Steve Ruff and Eric Petersen of Q10 | Daisley Ruff Financial Corp. arranged the transaction. The long-term, fixed-rate loan is fully amortizing. The lender, borrower and all other details of the transaction were undisclosed.