The industrial real estate market in West Michigan, and particularly in Kent County, continues to trend positive. CBRE’s most recent survey of this real estate class recorded the fifth consecutive period of positive absorption, resulting in a vacancy rate of 7.8 percent for gross industrial space. The industrial base in West Michigan includes nearly 95 million square feet of gross space, of which nearly 50 million square feet is categorized as “leased” space, with the balance “owner occupied.” The absorption of space is being led by the slow and steady improvement of economic conditions in our region. As of the December 2012, the Grand Rapids unemployment rate stood at 6.5 percent, much better than Michigan and the nation, with unemployment rates of 8.9 percent and 7.8 percent, respectively, for the same period. Economic Catalysts Much like the rest of the state, West Michigan has benefited from the steady improvement of the auto industry. The increase in vehicle sales — brought about by both pent-up demand following the recent recession and by need resulting from natural disasters such as Hurricane Sandy — has boosted manufacturing orders to local companies that supply parts and capital equipment to the auto industry. Additionally, our …
JACKSON, MINN. — AGCO, an agriculture company, has begun further expansion of its Jackson manufacturing center and plans to invest $42 million into the building during the next three years. AGCO will invest in infrastructure, increasing production capacity and efficiency in order to help meet growing demand for the tractors and application equipment built there. The three-year endeavor is made up of seven phases affecting all areas of the campus, including component manufacturing, the tractor assembly line and the application equipment assembly line. Once completed, the expansion will create 75 additional permanent jobs at the facility, bringing the total number of employees to more than 1,200. The project will increase production capacity by 25 percent for both the tractor and sprayer assembly lines, according to AGCO. The first phase, scheduled for completion in the fall, includes a 30,000-square-foot expansion of the component manufacturing area.
ARDEN HILLS, MINN. — The U.S. General Services Administration (GSA) has sold a 427-acre portion of the Twin Cities Army Ammunition Plant (TCAAP) in Arden Hills to Ramsey County for $28 million. The sale is part of GSA's ongoing efforts to dispose of excess federal property to save taxpayer dollars and make more efficient use of the government's real estate assets. The deal transfers ownership of 397 acres to Ramsey County immediately, while the remaining 30 acres will be transferred to the county after it conducts environmental remediation, which is expected to take approximately three years. GSA's disposal team in Boston facilitated the sale. The property is a portion of the former Twin Cities Ordnance Plant, which occupied nearly four square miles during World War II. The Army constructed 323 buildings and employed 24,000 civilian and military personnel at the peak of production.
COLUMBIA, MO. —Gilbane Development Co. and local partner Optimus Development have started construction on The Den, a 158-unit development at the University of Missouri. The Den will include a resort-style pool with lounge decks, multiple outdoor courtyards with fire pits, bocce courts, hammock gardens, pet parks, walking trails and an outdoor kitchen along with multiple BBQ areas. The community will also feature a pro-style sand volleyball court, 24-hour cardio and fitness room, Seattle style coffee café/computer center, clubhouse, game room, study rooms, tanning beds and bike/scooter storage. The apartments will be fully furnished with flat screen TVs, in-unit washer/dryers and private bathrooms for each resident. The Den will open to students in summer 2014.
CHICAGO — Maverick Commercial Mortgage Inc. has arranged $75.5 million in first mortgage debt and mezzanine financing for a mixed-use project located at 1400-1460 North Halsted in Chicago. A limited liability company sponsored by Structured Development was the borrower. In 2007, Structured Development developed the project, which encompasses an entire city block in the Clybourn Corridor. The project includes educational, retail, medical office and parking uses within the development. The project is 94 percent occupied with a variety of tenants including British Schools of Chicago, Advocate Health Centers, Northwestern Memorial Hospital, Diamond Headache Center, Town & Country Pediatrics, Pine Dental and REI. Deutsche Bank and Prime Finance provided the financing. The five-year, fixed-rate loan and additional capital allowed for Structured Development to refinance and recapitalize the project and buy out the former equity partner in the transaction. New York-based Kaye Scholer represented Deutsche Bank and Prime Finance in the transaction. Attorneys from Kaye Scholer included Aaron Lehrfield, Jeannie Bionda, Michael Dougherty and Christine O’Connell. Kathryn K. Arnold of Shefsky & Froelich represented the borrowers. Mid-America Real Estate Corp handles the leasing and management for Structured Development.
OMAHA — Investors Real Estate Trust’s operating partnership, IRET Properties, has completed its acquisition of Whispering Ridge Apartments, a nine-building, 336-unit apartment property in Omaha, for $28.3 million. The apartment community, which is situated on 18 acres, was constructed in 2010. With the acquisition, IRET Properties now owns approximately 1,370 apartment units in the Omaha/Lincoln area. IRET Properties will manage Whispering Ridge Apartments.
VALLEY PARK, MO. — NorthMarq Capital has arranged an $11 million first mortgage loan to refinance Forest Woods Apartments, a 260-unit multifamily property in Valley Park, a southwest suburb of St. Louis. Financing was based on a 10-year term and a 30-year amortization schedule. Forest Equities LLC was the borrower. Jeff Chaney of NorthMarq arranged the loan through Freddie Mac. The market-rate community is located at 101 Forest Parkway.
CHICAGO — Jones Lang LaSalle has been selected by Venture One Real Estate as the marketing agent for two of the developer’s industrial parks — Rock 39 Industrial Park and Loves Park Corporate Center — located along the I-39 Industrial Corridor west of Chicago. The two parks have a combined total of 340 acres. Shovel-ready sites of up to 120 acres with build-to-suit opportunities are available, ranging from 50,000 to 1.5 million square feet. Current tenants/owners include PepsiCo Inc., Con-way Inc. and Danfoss Group.
CAROL STREAM, ILL. — The Frain Group, a used manufacturing and processing equipment dealer, has acquired a 329,732-square-foot warehouse in Carol Stream, a western suburb of Chicago. The company plans to relocate its operations into the building, located at 245 E. North Ave., later this year. The property includes a 36,800-square-foot office, 26 dock doors and four drive-in doors. Dominic Carbonari and Frank Griffin of Jones Lang LaSalle represented the seller, Holland Stream LLC, in the transaction. Larry Goldwasser and Jay Maher of Cushman & Wakefield represented the buyer.
CHICAGO — A limited liability company, sponsored by Structured Development, has secured a $75 million loan for a Chicago mixed-use property located at 1400-1460 N. Halsted St. Benjamin Kadish of Maverick Commercial Mortgage Inc. arranged the first mortgage debt and mezzanine financing through Deutsche Bank and Prime Finance. Structured Development completed the property in 2007, which includes educational, retail and medical office components. The property is 94 percent occupied and tenants include British Schools of Chicago, Advocate Health Centers and Diamond Headache Center. The five-year, fixed-rate loan and additional capital will allow the borrower to refinance and recapitalize the property, and buy out the former equity partner in the transaction.