ELMHURST, ILL. — Inland Real Estate Acquisitions LLC has purchased the Edward-Elmhurst Health Center in Elmhurst, about 20 miles west of Chicago. The purchase price was not disclosed. The 13,000-square-foot medical office building is located at 755 N. York St. Newly constructed in 2017, the property is home to Edward Health Ventures, which operates as Edward-Elmhurst Health. Serving as a medical office space, the property includes 10 exam rooms, one procedure room, one endoscopy suite and four recovery rooms. The center features physicians who specialize in family medicine, internal medicine, obstetrics/gynecology and gastroenterology. Mark Cosenza and Brett Smith of Inland completed the deal on behalf of an Inland affiliate. The seller was not disclosed.
The overall Kansas City retail market remains very healthy and active. As retailers continue to navigate through e-commerce challenges, developers continue to get creative with the redevelopment of existing centers, adding mixed-use components and consolidation of big box vacancies. Restaurants and hospitality seem to be catalysts in helping to kick-start these redevelopments from the retail side. Over the past year, retail spending in Kansas City has continued to increase, but there remains a limited amount of speculative construction in the market. Therefore, the vacancy rate has dropped from 6.2 percent in 2016 to 5.7 percent as of the third quarter of 2017. The average rental rate has increased from $12.85 to $13.05 per square foot as of the third quarter. Solid job creation from major employers like Cerner and Garmin has helped the unemployment rate of 3.7 percent stay below the national average of 4.1 percent. The restaurant sector is in the process of evolving just as the retail sector is. We are seeing a lot of the major chains slowly shuttering locations where the larger footprint is no longer viable. These properties are getting backfilled fairly quickly by retailers and smaller local restaurant groups. Retail investors have stayed active. …
EAGAN, MINN. — American Realty Advisors (ARA) has acquired Central Park Commons in Eagan. The sales price was $126.3 million, according to the Minneapolis Business Journal. The 403,219-square-foot retail center is currently 97 percent occupied by tenants including Hy-Vee, HomeGoods, Marshalls, Hobby Lobby, Ulta and Petco. The newly constructed property, located at 3333 Pilot Knob Road, also includes medical office space. Bob Mahoney of CBRE represented the seller, a joint venture between CSM Corp. and John Johannson.
MAPLE GROVE, MINN. — Onward Investors has sold Wedgewood Commerce Center in Maple Grove, a northwest suburb of Minneapolis, for $8.4 million. Built in 1988, the 85,404-square-foot office building is located at 6900 Wedgwood Road. Onward purchased the property in February 2015 and subsequently renovated vacant office spaces and made significant upgrades to the lobby. Additional upgraded amenities include a bike room that allows tenants to store and service their bikes on site. Major tenants include Henningson & Snoxell, PartnerRe America Insurance Co. and McKinstry Communications. Atlanta-based WCC Partners LP was the buyer.
ALLEGAN AND OWOSSO, MICH. — Cohen Financial and Pillar, both divisions of SunTrust Bank, have arranged $11.5 million in HUD loans for the refinancing of two seniors housing properties in Michigan. Cathy Bronkema of Cohen Financial and Joshua Hausfeld of Pillar arranged a $6.5 million loan for Oliver Woods Retirement Village, an 80-unit property in Owosso. They also secured a $5 million loan for Briarwood Assisted Living, a 39-unit property in Allegan. The borrower is a Grand Rapids-based senior living property owner and operator. The SunTrust/Pillar healthcare financing platform can meet borrowers’ financing needs from bridge financing to long-term, fully amortizing loans, according to Bronkema.
ELYRIA, OHIO — Dougherty Funding LLC has provided a $2.7 million loan for the refinancing of Midway Mall in Elyria, about 30 miles southwest of Cleveland. The retail center encompasses 585,606 square feet of gross leasable area. The mall is approximately 80 percent occupied by 75 tenants, and is comprised of a mix of national, regional and local tenants. Elyria Realty LLC, Midway CH LLC and Midway Nassim LLC were the borrowers. Dougherty served as lead lender and is servicing the loan.
GRAND RAPIDS, MICH. — BlackBird East will open a retail store in the Gas Light Village district of Grand Rapids. The men and women’s clothing store will occupy 2,744 square feet at 2166 Wealthy St. Renovations are currently being made to transform the space from a gym to the retail shop. BlackBird East anticipates opening by early March 2018. Bill Tyson of NAI Wisinski of West Michigan represented the landlord in the lease transaction. Dave Kwekel of Dave Kwekel Development LLC represented the tenant.
CHICAGO — Scion Student Communities has purchased a 24-property student housing portfolio containing 13,666 beds across 18 states for $1.1 billion. The portfolio involves 20 leading national universities. The transaction also includes the recapitalization of two communities previously owned by Scion-affiliated private syndications. Five different Harrison Street Real Estate Capital funds owned the properties in partnership with multiple operators. Chicago-based Scion Student Communities is a joint venture between the Scion Group, GIC and Canada Pension Plan Investment Board (CPPIB). The portfolio contains a mix of recently developed Class A properties in primarily Tier 1 university markets, as well as select value-added assets. “This is a compelling investment opportunity to efficiently build further scale in the U.S. student housing sector with a portfolio of high-quality, well-located properties in new and existing joint venture markets,” says Hilary Spann, managing director and head of U.S. real estate investments for CPPIB. Harrison Street sold an additional nine-property student housing portfolio to Scion this past March for $465 million. These assets were within a larger 11-property portfolio the JV acquired from four different owners. This portfolio contained a total of 5,000 beds at eight universities. Scion Student Communities notes it plans to pursue additional opportunities to …
MINNEAPOLIS — Mesa West Capital has provided a $20 million loan for the refinancing of the Colwell Building in Minneapolis. Built in 1909, the 150,000-square-foot office building is located at 123 N. 3rd St. in the Warehouse District. A joint venture led by San Francisco-based Spear Street Capital recently completed the first phase of a multi-million dollar renovation of the property. Improvements included new terrazzo floors in the lobby, upgrades to the elevator systems, a new HVAC system and new windows. Proceeds from the five-year loan will be used to build a fitness center and bike storage room, as well as to fund leasing and tenant improvement costs associated with stabilizing the building.
RICHMOND HEIGHTS, MO. — Draper and Kramer Inc. has opened The Flats at EVO in the St. Louis suburb of Richmond Heights. The collection of 46 townhome-inspired rental apartments is the second phase of EVO, a multifamily property that also includes an adjacent four-story, 281-unit apartment complex that opened in 2016. The 46 units include one-, two- and three-bedroom floor plans ranging from 764 to 1,465 square feet. Rents range from $1,375 to $2,570. Currently, renters will receive one month of free rent when signing a 13-month lease. Amenities at the property include an outdoor pool deck with grills, dog spa, fitness room, yoga studio and business center.