SPRINGFIELD, MO. — Gladstone Commercial Corp. has purchased the leasehold interests in a 14,560-square-foot retail building in Springfield, Mo. leased to the Walgreens Co., for $2.7 million. The tenant has 62 years remaining on its lease term with rights to terminate every five years in years 19 to 62.
ORLANDO — Orlando-based CNL Properties Trust Inc. has agreed to acquire five senior living communities from affiliates of Primrose Retirement Communities for $84 million. The properties include Grand Island Senior Living in Grand Island, Neb.; Marion Senior Living in Marion, Ohio; Mansfield Senior Living in Mansfield, Ohio; Casper Senior Living in Casper, Wyo.; and Sweetwater Senior Center in Billings, Mont. The transition is expected to close the first quarter of 2012. The communities will continue to be operated by Primrose under a long-term lease agreement with CNL. As of Dec. 1, the properties were 96 percent occupied.
JACKSON, OHIO — Boston-based STAG Industrial Inc. has acquired a 307,000-square-foot warehouse and distribution facility in Jackson for $12.6 million. The building was constructed in 2001 as a build-to-suit and is fully leased to Gerdau Ameristeel Perth Amboy Inc., a long steel manufacturer.
KINROSS, MICH. — Mascoma Corp., a renewable fuels company, has signed a cooperative agreement with the U.S. Department of Energy (DOE) to assist in the design and construction of a commercial-scale hardwood cellulosic ethanol facility in Kinross. The cooperative agreement provides $80 million in DOE funding. The facility will convert hardwood pulpwood to ethanol. Construction of the Kinross plant in Michigan's Upper Peninsula is expected to begin in the next three months, and is slated for completion in 2013. Kinross Cellulosic Ethanol LLC, a joint venture formed by Mascoma and Valero Energy Corp., will develop and operate the Kinross plant.
LENEXA, KAN. — All American Supply Co. has renewed its lease for 49,775 square feet of industrial space at Lenexa Industrial, located at 9775 Lackman Rd. in Lenexa. Matthew Severns of Kessinger / Hunter & Co. represented the landlord, TAK Properties, in the deal. Tom Haverty of Colliers International represented the tenant.
One of the hardest-hit real estate segments, both in Cleveland and across the nation, has been the retail sector. A dramatic reduction in consumer spending over the past four years has caused significantly lower retail sales and resulted in a long list of bankrupt retailers and struggling retail centers. While the pullback by the consumer has ultimately led to numerous instances of shuttered stores and bank-owned retail centers across the region, there have also been some noticeable trends that illustrate the underlying resiliency and strength of this segment. Digging in the dirt Although the pace of retail development has been at a near standstill for the past few years, some projects have begun to take shape. The furthest along is a new 86,000-square-foot Giant Eagle in Broadview Heights, which is under construction with an early 2012 opening planned. The South Euclid/Cleveland Heights area has also emerged as a favored development location with two large-scale projects. The long-planned expansion and renovation to the northern half of Cedar Center began in the spring with the construction of a new GFS Marketplace. When fully completed in late 2012, this project is expected to contain approximately 60,000 square feet of total retail as well …
Southeastern Wisconsin’s industrial market absorbed nearly 1.28 million square feet in the third quarter — the fifth consecutive quarter of positive absorption — and 2.87 million square feet of absorption year-to-date. The vacancy rate registered 7.6 percent in the third quarter, down from 9.2 percent a year ago, according to Xceligent/CARW. Leasing activity in Milwaukee and Waukesha counties has accounted for 80 percent of the 2.87 million square feet absorbed year-to-date. Kenosha and Racine counties both experienced positive absorption of 81,527 square feet and 486,832 square feet in the third quarter, respectively. While impressive, this data is less substantial than previous quarters that we have analyzed. Traditionally, Racine and Kenosha counties compete for tenants crossing over the border from Illinois. These two counties will likely attract the next speculative or build-to-suit developments in Southeastern Wisconsin. With leasing and sales activity continuing to be on the rise late into the third quarter, we expect these positive trends to carry over into the final quarter of 2011. Quality industrial space is being depleted in many of the more popular submarkets south of I-94 and west of I-45. Natural tensions between quality supply and increasing demand are causing a stabilization of lease rates …
BELVIDERE, ILL. — Pacific Global Logistics has signed a lease for 30,000 square feet of industrial space, located at 3915 Morreim Dr. in Belvidere. Emmett Gray of Whitehead Commercial Realty represented Pacific Global in the transaction. The landlord, Landmark Real Estate Group, was represented by Shane Van Sickle of Landmark.
MILFORD, OHIO — Colliers International of Cincinnati completed the sale of three ground leases at the River's Edge development in Milford, totaling $2.4 million. A local investor purchased a Gold Star Chili ground lease for $550,000. The 2,400-square-foot building is located at 85 River's Edge Dr. A ground lease of Red Robin, located at 45 River's Edge Dr., sold for $1.2 million to a private investor. The 6,300-square-foot restaurant was constructed in 2003. A Wendy's ground lease sold for $628,000 to a private investor. The 3,200-square-foot building is located at 75 River's Edge Dr. Steven Timmel, Jeffrey Johnston and Christopher Prosser represented the seller, a private developer, in the transaction.
CHICAGO — Sperry Van Ness has arranged the $3 million sale of 2100-14 S. Indiana, a multifamily property in Chicago. The 54,000-square-foot building was a failed condominium conversion that had been in foreclosure since 2008. The undisclosed buyer plans to convert the property into an apartment building, with retail on the first floor. Jeff Baasch of Sperry Van Ness represented both the buyer and undisclosed bank in the transaction.