CINCINNATI — Digital sales at the Kroger Co. (NYSE: KR) increased 92 percent in the first quarter, according to the company’s latest financial results. Total company sales were $42 billion in the first quarter, compared with $37 billion for the same period last year. Cincinnati-based Kroger does not separately break out its e-commerce sales from total sales. Excluding fuel and dispositions, sales grew 19.1 percent. Kroger’s first quarter ended on May 23. Kroger says its most urgent priority during the pandemic has been “to provide a safe environment for associates and customers with open stores, e-commerce solutions and an efficiently operating supply chain.” Kroger has invested more than $830 million to reward associates and safeguard its employees, customers and communities. The company’s stock price closed at $31.80 per share on Thursday, June 18, up from $23.64 one year ago.
TOLEDO, OHIO — Hunt Real Estate Capital has provided a $17.2 million Fannie Mae loan for the refinancing of Steeplechase Apartments in Toledo. The 242-unit, garden-style multifamily property was built in phases from 1999 to 2004. It sits on a 19.5-acre site. The 12-year, fixed-rate loan features a 30-year amortization schedule. Hunt provided initial acquisition financing for the asset in 2017. Since the acquisition, the undisclosed borrower has invested $524,000 in capital improvements, including new water heaters, appliances, windows, landscaping, vinyl replacement, HVAC upgrades and carpet replacement.
By Steve Nowak, Siegel Jennings Co. A recent decision from an Ohio appeals court highlights a developing and troubling pattern in the state’s property tax valuation appeals. In a number of cases, an appraiser’s misuse of the highest and best use concept has led to extreme overvaluations. Given its potential to grossly inflate tax liabilities, property owners and well-known tenants need to be aware of this alarming trend and how to best respond. In the recently decided case, a property used as a McDonald’s restaurant in Northeast Ohio received widely varied appraisals. The county assessor, in the ordinary course of setting values, assessed the value at $1.3 million. Then a Member of the Appraisal Institute (MAI) appraiser hired by the property owner calculated a value of $715,000. Another MAI appraiser, this one hired by the county assessor, set the value at $1.9 million. The average of the two MAI appraisals equals $1.3 million, closely mirroring the county’s initial value. Despite the property owner having met its burden of proof at the first hearing level, the county board of revision rejected the property owner’s evidence without analysis or explanation. The owner then appealed to the Ohio Board of Tax Appeals (BTA). …
COLUMBUS, OHIO — CRG is developing the Cubes at Rickenbacker, a 320,000-square-foot speculative distribution warehouse in Columbus, on behalf of an affiliate of Lexington Realty Trust. Contegra Construction Co. is the general contractor. Completion is slated for the fourth quarter of this year. Situated in the Rickenbacker submarket of Columbus, the project is four miles from the Rickenbacker International Airport. The development will feature a clear height of 36 feet, 32 dock doors, two drive-in doors, a trailer lot and parking for 132 cars. Jeff Lyons and Joseph Kimener of CBRE will serve as leasing agents.
COLUMBUS, OHIO — Industry Columbus, a 236-unit luxury apartment complex in downtown Columbus, is set to open later this month. Charles Street Development Corp. is the developer. The project is the first and only community in downtown Columbus to feature a rooftop swimming pool and hot tub, onsite dog park and full floor of coworking space. Located at 230 E. Long St., the community features studios, one- and two-bedroom units, as well as private townhomes. Additional amenities include a pet washing station, sports bar and lounge, private event space, outdoor courtyard and fitness center. Monthly rents start at $1,095. Residents can currently earn $3,000 toward rent by moving in before Aug. 15. Village Green is the property manager. Denver-based Charles Street maintains a regional office in Ohio.
CINCINNATI — Merchants Capital has secured a $57 million FHA/HUD Section 221(d)(4) loan for 4th & Race, a 264-unit apartment community currently under development in downtown Cincinnati. The project is slated to open in the first half of 2021. Merchants secured the new construction loan on behalf of the developer, Flaherty & Collins Properties. The new loan represents the multifamily component of the project, which will also feature 20,000 square feet of retail space and a five-story parking garage. The residential portion will sit atop the retail and parking components. Amenities will include a sky deck, pool, fitness center, yoga room, gaming area and club room. Flaherty & Collins worked concurrently with the city of Cincinnati, the Port Authority of Greater Cincinnati and the Cincinnati Center City Development Crop. to bring the project to life. FHA/HUD Section 221 (d) (4) loans are used exclusively for the construction or substantial rehabilitation of multifamily properties. Eligible assets include market-rate, low-to-moderate income and subsidized multifamily properties.
CINCINNATI — Phillips Edison & Co. Inc. (PECO), an internally managed real estate investment trust and owner of grocery-anchored shopping centers, has issued an update regarding the impact of the COVID-19 impact. Rent and recoveries collected for May totaled 80 percent of monthly billing, up from 78 percent in April. Cincinnati-based PECO says that once tenants are open and able to pay their standard monthly rent, the landlord will begin discussions about recovering missed rent payments. As of May, 91 percent of PECO’s tenants were open for business. PECO has recently launched PECO Connect, a new webpage designed to help tenants reopen as states continue to relax social distancing and stay-at-home requirements. The resources include information on curbside pickup, outdoor dining, signage, educational webinars, tenant rewards and an internal communications platform. PECO manages a portfolio of 312 properties, including 285 wholly owned properties comprising approximately 31.9 million square feet across 31 states.
INDIANA AND OHIO — Canada-based Granite Real Estate Investment Trust (NYSE: GRP.U) has acquired eight U.S. industrial properties totaling approximately 4 million square feet for $246.1 million. The buildings are fully leased to various tenants. The Midwest properties include: 445 Airtech Parkway in Indianapolis; 5415 Centerpoint Parkway in Obetz, Ohio; 6201 Green Pointe Drive South in Groveport, Ohio; 8779 Le Saint Drive in Hamilton, Ohio; and 8754 Trade Port Drive in West Chester, Ohio. Granite also acquired three properties in the Southeast. These include: 4460 E. Holmes Road in Memphis, Tenn.; 4995 Citation Drive in Memphis, Tenn.; and 8650 Commerce Drive in Southaven, Miss. The acquisitions are expected to close in the second quarter. Granite expects to fund the purchases using a combination of net proceeds from its recent equity offering and cash on hand. Granite’s portfolio consists of more than 90 properties totaling approximately 40.3 million square feet of leasable area.
BLUE ASH, OHIO — The Chicago office of United Kingdom-based 90 North Real Estate Partners, acting as the investment advisor to Kuwait-based Rasameel Investment Co., has purchased a 400,296-square-foot office property in Blue Ash. The campus serves as the new headquarters of Ensemble Health Partners. 90 North acquired the property from a local developer for an undisclosed price. The campus, situated at 11311 Reed Hartman Highway in suburban Cincinnati, formerly served as the Procter & Gamble Sharon Woods Technical Center. Over the last year, the campus has been redeveloped for Ensemble, which is a medical billing management company. The property consists of a 390,096-square-foot main building, a newly constructed 75,554-square-foot addition and a separate 10,200-square-foot building that is being converted into a conference center. The campus also includes 2,262 car parking spots and sits on 51.3 acres. Ensemble expects to be operational in the facility by September. The company is expected to bring approximately 2,000 employees to the property.
REYNOLDSBURG, OHIO — RED Mortgage Capital, a division of ORIX Real Estate Capital, has provided an $11.4 million Freddie Mac loan for the refinancing of Redwood Reynoldsburg in suburban Columbus. Formerly known as Blacklick Pointe, the 89-unit multifamily community consists of 20 one-story buildings. Each residence has an attached two-car garage. Built in 2018, the property is 94.4 percent occupied. Reynoldsburg One LLC was the borrower. The 10-year loan features a 30-year amortization schedule.