Considering the city’s recent negative press, as well as the government loans that General Motors and Chrysler both required in order to manage their way through structured bankruptcies nearly five years ago, it is understandable why one would question the economic vibrancy of Detroit and the surrounding region. However, the much-maligned Motor City is actually a lot healthier than the view projected by the city’s high-profile bankruptcy status. The Michigan jobless rate is hovering near 9 percent. While still high compared to other states, the unemployment rate is the lowest it has been since mid-2008. Since March 2012, the state has gained more than 18,000 manufacturing jobs and over 20,000 jobs in other sectors. The U.S. energy boom is making it more cost effective for factories to operate, and Michigan’s manufacturing base is directly benefitting from lower energy costs. In addition to the automotive sector, Michigan industries that thrive include advanced manufacturing, defense, information technology, water technology, medical devices, food processing and logistics and supply-chain management. The rebound in manufacturing has cut metro Detroit’s overall industrial vacancy rate by 400 basis points since the peak of the recession, falling from approximately 14 percent in mid-2010 to 10 percent at the …
CHICAGO — Dallas-based 7-Eleven has retained Chicago-based NRC Realty & Capital Advisors to coordinate the sale of 72 gasoline stations and convenience stores across the country. The portfolio include 22 locations in Texas, 17 properties in South Carolina, 12 stores in Pennsylvania, nine Ohio properties, four stores in Michigan, three Indiana properties, three stores in West Virginia, a Florida property and one store in Utah. The lot sizes range from approximately 8,000 square feet to 5.6 acres, with store sizes ranging from kiosks to 4,640 square feet. Fifty of the sites being offered are fee-owned properties and the remaining are leaseholds. All sites are being sold without 7-Eleven branding, and most sites are offered with fuel supply, which would be provided by SEI Fuels Inc., a 7-Eleven subsidiary.
CHAMPAIGN, ILL. — Associated Bank has provided the developers of Champaign Hyatt Place with $19.4 million in construction financing. Located at 217 N. Neil St. in Champaign, the nine-story hotel will feature 145 rooms, 3,300 square feet of meeting space, a restaurant and lounge, an indoor pool, an exercise room and a business center, as well as a three-story, 145-stall parking garage. The property, which is being developed by a partnership between Campus Acquisition Retail & Hospitality and YG Financial Group, is slated to open in March. Craig Pryzygoda of Associated Bank’s commercial real estate banking division managed the loan closing.
NILES, ILL. — An undisclosed seller completed the disposition of Golf Road Plaza in Niles, a suburb northwest of Chicago, for $3.3 million. Auto Zone, L.A. Tan, H&R Block and Discount Mattress occupy the 25,992-square-foot retail strip center. Richard Kehoe of Inland Brokerage & Auctions represented the seller. The buyer was not disclosed.
ST. CLOUD, MINN. — Michael Padilla of NorthMarq Capital’s Minneapolis office has secured $1 million in refinancing for Victorian Terrace Apartments in St. Cloud. Located at 230-240 Second St. NE, the property offers 48 residential units. The loan was structured with a 10-year term and 15-year amortization schedule. NorthMarq arranged the loan for the borrower through its relationship with a correspondent life insurance company.
FARMINGTON HILLS, MICH. — Arboretum Acquisition LLC has selected Friedman Integrated Real Estate Solutions to handle the management, leasing and construction assignment for Arboretum Office Park in Farmington Hills, a suburb northwest of Detroit. Located on 40 acres at 34405-34605 W. Twelve Mile Road and constructed in 1986, the 432,000-square-foot property features enclosed walkways connecting each building and large courtyards. Additional amenities feature on-site management and security card access system, high-speed data, cable and fiber-optic cabling, full-service cafeteria and sundry shop, conference center, state-of-the-art temperature control system and abundant parking. Planned improvements for the property include refurbishing the building’s exterior, landscape enhancements and fully remodeled lobbies with a high-end, modern finish. The property owner is a partnership between David Friedman of Friedman Integrated Real Estate Solutions and C. Michael Kojaian of Kojaian Ventures.
KANSAS CITY, MO. — Hufft Projects, an architecture and design firm, has purchased a 60,000-square-foot industrial and manufacturing warehouse. MidFirst Bank sold the property, which is located at 3612 Karnes Blvd. in Kansas City, for an undisclosed price. Hufft has made about $1.4 million in improvements in the space with plans for additional improvements to the building and surrounding area. Ben Boyd and Russell Pearson of Lee & Associates Kansas City represented the seller. Roxanne Elliott of Lane4 Property Group Inc. represented the buyer in the transaction.
INDIANAPOLIS — Tremont Realty Capital has arranged a $6 million loan for the refinancing of Lantern Estates. Located in Indianapolis, the 220-unit multifamily property was 90 percent occupied at the time the loan was originated. Amenities include a community office, clubhouse and swimming pool. Tom Lorenzini of Tremont’s Chicago office arranged the three-year bridge loan, which was funded through a hedge fund capital source. The non-recourse loan features a low variable interest rate and no prepayment penalty. Additionally, there is an interest-only feature for the first 12 months. The loan-to-value is 75 percent.
CHICAGO — Pembrook Capital Management has funded $7.25 million in preferred equity financing for a 148,877-square-foot property in Chicago. Located at 5307 S. Hyde Blvd., the 11-story building, which features 192 residential units and 20,833 square feet of retail space, was constructed in 1918 and occupied by Del Prado Hotel until the early 1970s when it was converted into apartments. The funding will recapitalize the property following a recent $28 million renovation. The owner has completed façade work as well as retail space and storefront improvements. The borrower was not disclosed.
CHICAGO — The Chicago office of Tremont Realty Capital has arranged $18.8 million in refinancing for four manufactured home communities in Indiana, Wisconsin and Iowa. The properties include the 278-site Arlington Valley in Bloomington, the 200-homesite Lincoln Park in West Allis, the 207-unit Sunset Village in Marshalltown, and the 191-site Wheatland Estates in Burlington. Tom Lorenzini with the Chicago office of Tremont arranged the four loans, which were funded through a relationship CMBS lender. The four individual 10-year loans are non-recourse with a 5 percent fixed interest rate amortized over 30 years.