CLEVELAND, OHIO — KeyBank (NYSE:KEY) has closed a transaction to provide New Markets Tax Credit (NMTC) financing to the $21 million second phase of the University Circle Uptown development, a mixed-use and student housing project in Cleveland. The NMTC program, which was established in 2000 as part of the Community Renewal Tax Relief Act 2000, provides tax credit incentives to investors for equity investments in low-income communities. Keybank provided $9 million in NMTC loans and nearly $9 million in NMTC equity to the entire Uptown development. The second phase of the development will include retail and 50 dorm spaces for the Cleveland Institute of Art, providing nearly 130 beds for students. The property will also provide 40 additional units of traditional student housing and more than 20,000 square feet or ground-level retail space, including a new Corner Alley bowling. MRN Ltd. is developing the second phase, which is currently under construction.
DOWNERS GROVE, ILL. — Inland Real Estate Acquisitions Inc. has acquired Commerce Center, a shopping center in Downers Grove, a western suburb of Chicago, for $9.9 million. The center is located at Butterfield Road and South Highland Avenue along a major retail corridor. Commerce Center totals 104,196 square feet and is leased to Toys “R” Us and Best Buy. Mark Cosenza, vice president of Inland Real Estate Acquisitions, facilitated the transaction. Toys “R” Us has been open at the center for more than 30 years. Best Buy opened in 1992 and recently signed a 10-year lease renewal. In addition to the retail store, Best Buy uses the location to house a 10,000-square-foot training center and regional office.
Cleveland's retail market is continuing to slowly recover from the effects of the recent recession. This recovery is sparked by a number of factors. One of the brightest spots in the Cleveland retail market is the revival of downtown, which is bringing businesses, residents and retailers to the area, stabilizing the metro’s core. The number of visitors to downtown Cleveland is expected to double from 3 million in 2012 to 6 million in 2013, largely drawn by the opening of the Horseshoe Casino Cleveland last year. The completion of the highly anticipated Cleveland Medical Mart & Convention Center is also contributing to increased traffic. Several large conferences have already been booked and area retailers will benefit greatly from convention center traffic as visitors eat at local restaurants and shop at nearby stores. In addition to tourism, the daytime population of downtown is increasing as several employers move or expand offices. This growth is encouraging many residents to locate in proximity to these jobs, and the rising housing demand has spurred apartment development throughout downtown neighborhoods. As retailers expand in the area to serve this residential population, retail operators will benefit from rising occupancies and rents. Improving Vital Signs Cleveland’s economy …
SPRINGFIELD, ILL. — Alvin Mansour of The Mansour Group has arranged the sale of Southwest Plaza, a 368,065-square-foot retail center located in Springfield, for $45 million. The plaza was fully occupied at the time of sale. Built in 2003, Southwest Plaza was recently redeveloped and expanded to include tenants such as Barnes & Noble, Best Buy, Men's Wearhouse, Michael's, Office Depot, Party City, PetSmart, Ross Dress for Leses and Sports Authority. The Springfield market serves as headquarters for 12 nationally known insurance companies. The Mansour Group is a part of Marcus & Millichap.
INDIANAPOLIS — Rockbridge Partners has acquired the historic Canterbury Hotel, a 99-room, full-service hotel located in downtown Indianapolis, from Turner Woodard, an Indianapolis entrepreneur and investor. The purchase price was undisclosed. Rockbridge plans to renovate and transform the Canterbury Hotel into upscale lodging. Renovation plans include opening up and refurbishing the lobby area, relocating and expanding the fitness center and redeveloping the restaurant and lounge. The corridors and guestrooms will also be fully refurbished, including completely renovated guest bathrooms. The hotel is located adjacent to the Circle Centre Mall and St. Elmo's Steakhouse and is within walking distance of Monument Circle, the State Capitol, Bankers Life Fieldhouse and Lucas Oil Stadium. Azul Hospitality Group will manage the property.
CHICAGO — Millennium Properties has completed the $1 million sale of a 4.6-acre residential development site in the Little Italy/UIC neighborhood of Chicago. The property, which is located at 2500 W. Roosevelt Road, is a partially completed residential development known as Metro Place. A venture led by Daniel McLean, president and CEO of MCL Cos., developed the first phase of the project between 2006 and 2009. The first phase included 17 single-family homes and a six-unit condo building. The new owner, Eco Development Inc., intends to complete the remaining two phases, adding 14 single-family homes, 59 townhomes and nine six-flat condo buildings.
YELLOW SPRINGS, OHIO — GA Keen Realty Advisors has been retained by The Antioch Co. LLC to market and sell the company’s former headquarters in Yellow Springs through a bankruptcy sale process. The 95,062-square-foot building features 66,574 square feet of warehouse space and 26,823 square feet of office space. Currently, two tenants occupy a total of 20,555 square feet and produce annual rental income of approximately $250,000. Located at 888 Dayton St., the property is less than 20 miles northeast of Dayton.
ROLLING MEADOWS, ILL. — A joint venture between GlenStar Properties and Walton Street Capital has closed on its purchase of Continental Towers, which includes three suburban office towers and a small retail property. The purchase price was $58.8 million, or about $65 per square foot, according to the CoStar Group. The four-building property at 1701 Golf Road in Rolling Meadows, located about 28 miles northwest of Chicago, totals 911,000 square feet and was approximately 40 percent vacant at the time of sale. The joint venture, which acquired the property from special servicer CWCapital, is planning an $8 million renovation, including an overhaul of the parking lot, landscaping and lobbies. Brian Nagle and Jerrod Wigal of Colliers International represented the seller in the transaction.
CHICAGO — Marcus & Millichap has arranged the $1 million sale of a 3,200-square-foot, net-leased property occupied by 7-Eleven in Chicago. Stephen Rachman and Brian Parmacek, investment specialists in Marcus & Millichap’s Chicago O’Hare office, marketed the property on behalf of the seller, a developer. Adam Fortino and Ryan Engle, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, represented the buyer, a private investor. The property is located at 520 N. Halsted St. in the River West neighborhood of Chicago.
BLUE ASH, OHIO — Catholic Health Partners has signed two leases at 4600 McAuley Place, an office building in the Cincinnati suburb of Blue Ash. The locally based health system signed a five-year lease for 12,107 square feet and an 11-month lease for an additional 9,098 square feet. The leases total 21,205 square feet, taking up 90 percent of the building’s space. McAuley Place was built in 2001 and is located near I-71 and I-275. Chambers Street Properties recently acquired full ownership of the asset.