MINNEAPOLIS — Grandbridge Real Estate Capital has secured an $8.4 million first mortgage loan to refinance an apartment portfolio in Minnesota. The properties are located in the Twin Cities metro area and include seven buildings totaling 220 units. Tony Carlson of Grandbridge’s Minneapolis office originated the 10-year, fixed-rate loan that features a 20-year amortization schedule. A life insurance company provided funding for the loan for the undisclosed borrower. The loan required no personal guaranty and loan proceeds were used to retire existing debt. The properties were fully occupied at closing.
Midwest
MUNSTER, IND. — Paine/Wetzel TCN Worldwide has arranged the lease of a 56,800-square-foot space at 9200 Calumet Ave. in Munster. AM Manufacturing Co. will occupy space in the Munster Lake Business Center. AM Manufacturing makes equipment for the pizza, tortilla, bagel and baking industries. The company is expanding its facilities and relocating from Dolton, Ill. Ed Wabick of Paine/Wetzel TCN Worldwide arranged the lease for the landlord, Munster Development LLC.
INDIANAPOLIS — Brennan Investment Group LLC has acquired Jackson Industrial Park in Indianapolis. The portfolio consists of four multi-tenant, light-industrial facilities totaling approximately 260,400 square feet. Brennan Investment Group successfully utilized crowdfunding with Realty Mogul to complete the purchase. The property is 77 percent occupied.
It’s a trend that’s happening across the country. Millennials are fleeing the suburbs of their childhood and choosing to work and live in the urban areas of every major American city. But there’s a unique twist to this story in Kansas City. While Millennials are moving downtown in droves, many have a reverse commute. Most Fortune 500 companies have remained in the suburbs after their flight from downtown beginning in the 1970s. In addition, several large companies have jumped the state line due to favorable tax incentives. In the second quarter, the downtown office vacancy rate stood at an unhealthy 29.9 percent. Only one office submarket posted a higher vacancy rate. Meanwhile, the leading submarket, South Johnson County, recorded a 12.8 percent vacancy rate. It’s been difficult for older office buildings with smaller floor plates of 10,000 to 15,000 square feet to compete as companies look for larger floor plates of 25,000 to 30,000 square feet. Companies are also finding that surface parking in the suburbs is more economical. Building Conversion Wave The good news is that a slow reversal in both the multifamily and office markets is occurring as older and historic office buildings are adapting to the demands …
KENWOOD, OHIO — Faris Lee Investments has arranged the $32 million sale of two fully occupied retail centers in Kenwood, an affluent suburb of Cincinnati. The properties, which are located across the street from each other, include Kenwood Pavilion and Kenwood City Place. Donald MacLellan, Richard Chichester, Chris DePierro and Tom Chichester of Faris Lee Investments represented the seller, a joint venture between Cincinnati-based Jeffrey R Anderson Real Estate and Kentucky-based P&P RE LLC. The team also represented the buyer, Colorado-based GDA Real Estate Services LLC, who purchased the portfolio in a 1031 tax-deferred exchange.
EDEN PRAIRIE, BLOOMINGTON, ORONO AND MOUND, MINN. — MJ Partners Real Estate Services has brokered the $22 million sale of a four-property Metro RV & Mini Storage Portfolio in Minneapolis. Metro Storage HHF Venture LLC, a joint venture between Lake Forest, Illinois-based Metro Storage and Chicago-based Heitman, purchased the properties. The portfolio consists of 208,184 rentable square feet with 1,501 storage units and 448 RV/parking spaces. The properties are located in Eden Prairie, Bloomington, Orono and Mound, Minn. The portfolio features overall occupancy of 82.2 percent for three stabilized properties, and 53 percent for the recently opened Orono property. The properties will all be rebranded as Metro Self Storage.
POWELL, OHIO — Marcus & Millichap has arranged the $2.5 million sale of Children of America, a 10,482-square-foot net-leased property located in Powell, a northern suburb of Columbus. The school, which is located at 7560 Sawmill Parkway, is licensed to serve 186 children. The property was sold at 95 percent of its original list price. Tammy Saia of Marcus & Millichap’s Chicago Oak Brook office represented the seller, a developer. Michael Glass, also of Marcus & Millichap, assisted in closing the transaction. Children of America operates 60 schools in 12 states.
CHICAGO, SKOKIE AND DES PLAINES, ILL. — The Missner Group has arranged three industrial leases in Chicago, Skokie and Des Plaines, Ill. In Chicago transaction, FHC Marketing leased 33,817 square feet of industrial space within 4711 N. Lamon Ave. FHC specializes in point-of-purchase marketing by designing and producing custom store fixtures, POP displays, merchandisers, sign holders and graphics. In the Skokie transaction, Conya Global renewed its 4,000 square foot space at 5520 W. Touhy Ave. The company is a wholesale supplier and designer of quality urban women's clothing. In the Des Plaines transaction, Cleanse Culture Inc. leased a 5,646-square-foot industrial space at 500 E. Touhy Ave. Cleanse Culture provides 100 percent organic, vegan, gluten-free, raw, cold-pressed?juices, smoothies, raw food and cleanses. June McCrory of The Missner Group, which owns each of the properties, represented management in the lease negotiations.
CHICAGO — The BSC Group has arranged a total debt recapitalization, helping Florida-based iStorage replace existing loans with a new $50 million revolving credit facility. This transaction included a portfolio of 19 self-storage properties located in Ohio, Florida, New Jersey, Virginia, Georgia, Nevada and California. The new credit facility provides the borrower with additional capital to be used for general working capital purposes, as well as the future expansion of the business. The three-year loan was funded by a national bank and featured a variable rate of 2.25 percent over LIBOR with no amortization requirements and open pre-payment. The BSC Group is a Chicago-based commercial real estate financing advisor and self-storage specialist.
MILWAUKEE — Marcus & Millichap has arranged the $22.1 million sale of The Franklin Apartments, a 114-unit multifamily property in east downtown Milwaukee.The sales price equates to $193,860 per unit. The apartment community features one- and two-bedroom units averaging 1,028 square feet each. Marcus & Millichap represented the undisclosed seller and buyer in the transaction. David Gaines, Alex Blagojevich and Matthew Fitzgerald of Marcus & Millichap were the brokers involved in the transaction.