The industrial real estate market in Southeast Wisconsin continued its climb upward during 2012 as the overall vacancy rate fell from 7.1 percent to 6.5 percent. The result was positive net absorption of 3.6 million square feet for the year. This trend marks two-and-a-half straight years without a quarter of negative absorption. Seven of the eight counties in the Milwaukee industrial market area posted a reduction in vacancies during 2012. In Kenosha County, for example, the vacancy rate dropped from 11.1 percent in the fourth quarter of 2011 to 9.4 percent in the fourth quarter of 2012. Two transactions by Venture One Real Estate LLC accounted for most of the positive net absorption. The first transaction, which occurred in December 2012, was the sale of a 62,000-square-foot facility to EMCO Chemical Distributors Inc. This deal was followed shortly by Venture One’s acquisition of the 160,300-square-foot former Cenveo Inc. facility in Kenosha. Kenosha’s industrial market should perform well this year because of overflow demand from the Racine County market, which will necessitate deals in Kenosha. The shortage of space in Racine County will make it a better candidate for build-to-suit and speculative developments in 2013. Transaction Highlights Strong demand in Waukesha …
KANSAS CITY, KAN. — Red Development has received $39.9 million in equity financing for the acquisition of Legends Outlets Kansas City. The property is a 1.2 million-square-foot outdoor mall located 12 miles west of downtown Kansas City, and is 94 percent leased. Kevin O’Grady and Matt Grant of Cohen Financial, working with Artis Advisors, secured the financing from a New York private equity firm.
DES MOINES, IOWA — Denver-based Baceline Investments LLC has purchased Clocktower Square, a 142,356-square-foot retail center in West Des Moines for $6.9 million. Clocktower Square is currently 68 percent leased and includes tenants T.J. Maxx, Starbucks, Office Max and Tires Plus. Situated on 11 acres, the shopping center is located on 28th St. and University Ave. The property was originally constructed in 1983 and renovated in 1997.
MACOMB, MICH. — Mid-America Real Estate-Michigan Inc. has arranged a 3,580-square-foot lease in the Shops at Macomb Park in Macomb. The Kroger-anchored shopping center is located at 26 Mile and Romeo Plank roads. Gabe Schuchman and Karen Mullane of Mid-America represented the landlord, Macomb Park 2 LLC, in the transaction. The tenant is Henry Ford.
CHICAGO — Chicago Mayor Rahm Emanuel is expected to announce sometime today plans for a $173 million, 10,000-seat arena for DePaul University’s basketball teams to be built near downtown Chicago, reports the Chicago Tribune. The basketball arena will be located near McCormick Place and be built with $125 million in public funds — $55 million in tax-increment financing and $70 million in hotel taxes, according to the newspaper. Plans also include the construction of two mega hotels on the property in the hopes of growing convention and meeting business in Chicago.
ELK GROVE VILLAGE, ILL. — CenterPoint Properties has broken ground on an 87,975-square-foot build-to-suit redevelopment located in Elk Grove Village for Weiss-Röhlig. The international logistics company in airfreight and sea freight transport will lease 57 percent of the facility with the remaining 43 percent to be completed on a speculative basis. The building will be situated on 4.4 acres of land at 1601 Estes Road, about 25 miles northwest of Chicago. Colliers International represented CenterPoint, and CBRE represented Weiss-Röhlig in the long-term lease transaction. CenterPoint, in a venture with an institutional advisor, expects construction to be completed this fall.
CHICAGO — NorthMarq has arranged $31.6 million in first mortgage refinancing for a 23-property industrial portfolio throughout the suburban Chicago area. The portfolio consists of 900,000 square feet and includes a diverse mix of more than 90 tenants in single- and multi-tenant industrial properties. The borrower, VIP Holdings I, wanted the flexibility to sell individual properties, partially prepay the loans and fix long-term rates for the portfolio, according to NorthMarq. Financing was based on five- and seven-year terms and a 25-year amortization schedule. Jeff Cherner and Rup Patel of NorthMarq arranged the loans through a life insurance company and a regional bank.
BARABOO, WIS. — Irgens will develop a $6.5 million, 30,000-square-foot medical office building on the St. Clare’s Hospital campus in Baraboo, about 40 miles north of Madison. SSM Healthcare, owner and operator of St. Clare Hospital and Dean Health System, will provide a variety of primary and specialty care services at the new building. The project, which will be located adjacent to the existing St. Clare Hospital, is scheduled for completion in December. As the developer and owner of the building, Irgens has overseen all facets of the project, including financing procurement, site due diligence, entitlements and design/construction administration. The facility is 100 percent pre-leased, with Dean taking 50 percent of the space and St. Mary’s Dean Ventures leasing the remaining portion. The new facility will enable the hospital to continue to expand its service lines in conjunction with its physician and health system partners. Other project team members include Eppstein Uhen Architects and J.H. Findorff & Son Inc. as the general contractor.
JACKSON, MICH. — Bernard Financial Group has arranged a $7.6 million loan for Alpine Lake Apartments in Jackson. The property includes 34 two-story apartment buildings and 268 units. Alpine Lake LLC was the borrower. Pillar Capital Finance LLC was the lender. Kevin Kovachevich of Bernard Financial Group originated the loan.
FOREST LAKE, MINN. — Dougherty Mortgage LLC has closed a $4.6 million Fannie Mae loan for the refinancing of Mill Pond II Apartments in Forest Lake, located about 30 miles north of Minneapolis. The borrower was Mill Pond II LLC. The 10-year loan includes a 30-year amortization schedule. The recently constructed 60-unit multifamily affordable housing property is located at 525 4th St.