CLINTON TOWNSHIP, MICH. — Bernard Financial Group has arranged an $8.8 million loan for Green Valley Apartments, located at 42480 Green Valley Drive in Clinton Township, about 25 miles north of Detroit. The multifamily property includes 420 units. The borrower is Green Valley Apartment Complex LLC. Neil Gorosh of Bernard Financial originated the loan.
CHICAGO — A developer has acquired 6920 South Crandon Avenue, a 65-unit, 11-story affordable multifamily property in Chicago’s South Shore neighborhood.Scott Harris and Ryan Engle of Marcus & Millichap represented the seller, a limited liability company, and the buyer in the transaction. The property currently operates under a Housing Assistance Payment (HAP contract) administered by the Chicago HUD office. The HAP contract was recently renewed.
ST. JOHN, IND. — A Midwest-based developer has sold a net-leased Walgreens property, located at 9290 Wicker Ave. in St. John, about 20 miles north of Fort Wayne, for $3.5 million. Walgreens has approximately five years left on its lease at the 13,905-square-foot retail property. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The buyer was a private net-leased investment fund and was self-represented.
CHICAGO — Real estate investment firm Aviv has closed its initial public offering of 13.2 million shares of its common stock at an offering price of $20 per share. Including the overallotment option, Aviv sold 15.1 million shares in the offering and received net proceeds of approximately $278.8 million. The company’s common stock is listed on the New York Stock Exchange under the symbol “AVIV.” Aviv intends to use the net proceeds from the offering to repay certain indebtedness and for general corporate purposes, including the potential acquisition of additional properties. Morgan Stanley, Bank of America Merrill Lynch and Goldman, Sachs & Co. acted as joint book-running managers of the offering, and Citigroup, RBC Capital Markets, SunTrust Robinson Humphrey, RBS and CSCA acted as co-managers. Chicago-based Aviv REIT owns 258 post-acute and long-term care skilled nursing facilities and other healthcare properties.
A relatively strong 2012 Columbus office market left us with a few questions that will be answered as we move through 2013 and into 2014. Will rental rates continue to increase incrementally while vacancy and tenant improvement allowances continue to fall? Will we see speculative office development for the first time in five years? There are other compelling questions, which should keep things interesting for the next 12 to 18 months. Will the handful of prospects for large blocks of office space opt for longer lease terms versus recent trends favoring short-term deals? Will Canadian investors continue to perceive Central Ohio as a great place to shop for bargains as the Canadian dollar maintains its strength against the U.S. dollar? Development Picks Up Of course, new construction is currently the big story. Last year, the development community broke ground on more than 1 million square feet of new office space, including two downtown projects near Nationwide Arena. The projects include a 286,000-square-foot building, of which Columbia Gas has pre-leased 208,000 square feet, and a 214,000-square-foot Nationwide Insurance build-to-suit. In the Northeast office submarket, nearly 200,000 square feet of new development is under construction, including a headquarters facility for Bob Evans …
BUFFALO AND SARTELL, MINN. — Grandbridge Real Estate Capital has arranged a $7.7 million first mortgage loan for two multifamily properties: Hidden Cove Apartments, an 84-unit apartment complex in Buffalo; and Meadowlawn Village, a 95-unit apartment complex in Sartell. Tony Carlson of Grandbridge originated the loan. Funding for the 10-year, fixed-rate loan was provided through Fannie Mae’s Delegated Underwriting and Servicing program and includes a 30-year amortization schedule. The loan required no personal guaranty and allowed the borrower to pay off the existing financing.
KENOSHA, WIS. — Marcus & Millichap has arranged the $1.1 million sale of a 7,000-square-foot, net-leased property occupied by Advance Auto Parts in Kenosha, about 40 miles south of Milwaukee. Advance Auto Parts is located at 7545 Sheridan Road. Adam Prins and Matthew Hazelton of Marcus & Millichap represented the seller, a limited liability company, and the buyer, a REIT.
MT. PLEASANT, MICH. — Kmart has extended its 80,399-square-foot lease for five more years at Central Michigan Commons in Mt. Pleasant, about 70 miles north of Lansing. The lease will expire on Aug. 31, 2018. Agree Realty Corp. owns the 241,458-square-foot shopping center. Other tenants include Panera Bread, GNC, Rue 21, JC Penny, Target and Staples.
TAYLOR, MICH. —Signature Associates has arranged the lease of 21,000 square feet of high-tech space at 20330 Superior Road in Taylor, about 20 miles southwest of Detroit. Brad Viergever of Signature Associates represented the landlord, Persiconi & Persiconi LLC, and the tenant, Life Bridge Church.
PALATINE AND VERNON HILLS, ILL. — Inland Real Estate Acquisitions Inc. has acquired two Mariano’s Fresh Market stores, located in Palatine and Vernon Hills, for a combined total of $46.3 million. Mariano’s Fresh Market, part of Milwaukee-based Roundy’s Inc., is an upscale grocer with nine Chicagoland locations. The Vernon Hills location opened in June 2011. The Palatine location opened in January 2012. Each store is approximately 71,000 square feet and fully occupied by Mariano’s on 20-year leases. Mark Cosenza of Inland Real Estate Acquisitions facilitated the transaction. Brand Duff of Stan Jonson Co. represented the seller, IM Properties. Inland Real Estate Acquisitions acquired Mariano’s first store, located in Arlington Heights, in April 2011.