MACOMB TOWNSHIP, MICH. — Kennedy Funding Financial has provided a $1.2 million loan for the development of an industrial park in Macomb Township, a northern suburb of Detroit. The 55-acre property is located at 17300 23 Mile Road. The borrower, Elite Sport Ventures LLC, acquired the property in December 2014 with plans to develop it into smaller parcels. A 2.5-acre portion of the site located near 23 Mile Road will be sold and developed into a hotel.
DEERFIELD, ILL. — Walgreens Boots Alliance Inc. (NASDAQ: WBA), a global pharmacy-led enterprise comprising brands such as Walgreens and Duane Reade, plans to shutter 600 of its stores as part of its $4.38 billion purchase of rival Rite Aid Corp. During a conference call on Wednesday, Oct. 25, Walgreens spokesman Michael Polzin said the 600 shuttered stores will mostly be Rite Aid locations within close proximity to existing Walgreens stores as the company looks to optimize its retail store footprint. On Sept. 19, Walgreens announced it had secured regulatory clearance for its acquisition of 1,932 stores, three distribution centers and related inventory from Rite Aid. According to Walgreens’ earnings report released yesterday, the first few Rite Aid stores were acquired in the past week. Walgreens plans to transfer ownership of the remaining stores in phases as it aims to complete the store transfers by spring 2018. Walgreens has reviewed its combined U.S. store portfolio to determine the affected stores. The company expects to start closings between spring 2018 and mid-2019. As a result of the store closures, Walgreens expects to realize $300 million in annual savings through Aug. 31, 2020. The savings will be derived primarily from procurement, cost savings …
The Columbus industrial market continues to thrive as a hot center for logistics, warehousing and manufacturing. Its strategic location within a one-day truck drive of 50 percent of the U.S. population and one-third of the Canadian population is an important part of this success. Other contributing factors to this success include a strong Midwestern work ethic, low cost of real estate, low taxes, low wages and minimal union activity. With a total population of about 2 million in metro Columbus, central Ohio has 86,000 employees in the manufacturing industry and 80,000 employees in logistics at 4,100 logistics companies. Positive vital signs Central Ohio’s 273-million-square-foot industrial real estate market continues to expand with nearly 5.7 million square feet of new construction in 2017. Year to date, there has been 1.3 million square feet of positive net absorption and vacancy is 4.6 percent, down from 5.1 percent as of year-end 2016. Net absorption totaled 9 million square feet in 2016. Effective rental rates in central Ohio range from $2 to $3.75 per square foot net for larger warehouse and manufacturing spaces. Operating expenses run from 35 cents to $1.25 per square foot. Sales prices will range from $10 to $45 per square …
CHICAGO — Carter Validus Mission Critical REIT Inc. has entered into a definitive agreement in two separate transactions to sell data centers for a combined $1 billion. The REIT will sell a 251,141-square-foot data center in metro Chicago for $315 million. An affiliate of Digital Realty Trust LP has purchased the property, which is situated on 19 acres of land. Carter Validus has also entered into a definitive agreement to sell a 14-property data center portfolio to Singapore-based Mapletree Industrial Trust for $750 million. The transactions are expected to close in the fourth quarter. Moelis & Co. LLC served as lead financial advisor, along with KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. serving as co-advisors. Morris, Manning & Martin LLP served as legal counsel.
DETROIT — The Detroit Pistons and Henry Ford Health System have broken ground on a 175,000-square-foot training, rehabilitation and sports medicine complex in the New Center area of Detroit. The Henry Ford – Detroit Pistons Performance Center, slated to open during the summer of 2019, will house a new training facility and corporate headquarters for the NBA franchise. A comprehensive sports medicine, treatment and rehabilitation facility will be managed by the health system. The property will also incorporate public spaces for community relations, networking receptions and team hosted events. The facility is located on a land parcel owned by Henry Ford one block north of its corporate offices and approximately two miles north of the new Little Caesars Arena. Project costs are estimated at $65 million, according to Crain’s Detroit Business.
LINCOLNSHIRE, ILL. — Associated Bank has arranged a $66.8 million syndicated loan for the construction of 444 Social, a 302-unit luxury apartment property in Lincolnshire, a northern suburb of Chicago. The Class A property will be located at 444 Parkway Drive. The property will feature 127 one-bedroom units, 126 two-bedroom units and 15 three-bedroom units. Completion is slated for spring 2019. Associated Bank, which served as the lead arranger on the deal, provided $20 million of the loan package. Krista Casper of Associated Bank originated the loan for the borrower, SMASH Residential Chicago LLC, an affiliate of ECD Co.
CLAYTON, MO. — Franklin Partners has acquired The Plaza in Clayton, a 325,172-square-foot office building in Clayton, about nine miles west of St. Louis. The purchase price was not disclosed. The 16-story property is located at 190 Carondelet Plaza. Smallwood, Reynolds, Stewart, Stewart designed the building, while St. Louis-based THF Realty developed the property in 2001. Paul Lundstedt, Dan Deuter, Mark Palmer, Artie Kerckoff and TJ Redmond of CBRE represented the seller, KBS REIT.
CHICAGO — Apartment Investment Advisers (AIA) has brokered the sale of a 67-unit apartment building in Chicago’s Uptown neighborhood for $8.2 million. The eight-story property is located at 940 W. Winona St. A Chicago-based multifamily investment and management firm acquired the building with plans to complete a modernization and repositioning program. Bill Cassin of AIA represented the seller, a private investor that had owned and operated the building since the mid-1990s.
ST. CHARLES, MO. — Cullinan Properties Ltd. has unveiled plans for the next phase of construction at Streets of St. Charles, which is located about 25 miles northwest of St. Louis. Phase II will include a 60,000-square-foot, three-story building designed to accommodate more retail and office tenants. Construction is slated to begin in spring 2018. The building, located at the northeast corner of Beale and Lombard streets, will incorporate 20,000 square feet of ground-floor retail space and 40,000 square feet of office space. Cullinan Properties will handle leasing efforts for the retail space, while Balke Brown Transwestern will market the office space. Streets of St. Charles, which opened in 2012, features tenants such as Prasino, Tucanos Brazilian Grill, Firebirds Wood Fired Grill, Leopard Boutique, Olivino Tasting Bar and Sole & Blues.
HILLSIDE, ILL. — Interra Realty has negotiated the sale of Hillside Park Apartments in Hillside, about 15 miles west of Chicago, for $4.3 million. The 71-unit apartment property is located at 600 Wolf Road. The seven-building property consists of 27 one-bedroom units and 44 two-bedroom units. James Clough of Interra represented the undisclosed seller and procured the buyer, R&R Luxury Apartments.