MINNETONKA, MINN. – Welsh Capital has secured a loan of $2.75 million for Corner Shoppes, a retail center in Maplewood, Minn. The center is a 16,582-square-foot multi-tenant location, and the financing for the property was provided by local commercial banks.
Midwest
AKRON, OHIO — KeyBank, a division of Cleveland-based KeyCorp, has broken ground for the development of a new Akron headquarters and bank branch. The new three-story, 21,000-square-foot building is being constructed at the corner of University Avenue and South Main Street. Upon completion, which is expected in fall 2010, the first floor of the building will house a Key bank branch, and the second and third floors will house offices for Key’s Akron regional headquarters and Key Private Bank. The company’s current Akron headquarters and bank branch are located at 157 S. Main St., and Key Private Bank’s offices are located at 222 S. Main St. The project is being developed by Brecksville, Ohio-based The Terra Group.
MILFORD, OXFORD AND LOVELAND, OHIO — Investment Property Advisors has brokered the sales of three Ohio apartment communities for a total of approximately $6 million. The first property is Lila Chateau, a 96-unit community located in Milford. The property traded for $3.42 million at an 8.5 percent capitalization rate. The second property is Pinehurst Apartments, a student housing community located adjacent to Miami University in Oxford. The property was acquired by an undisclosed party based in upstate New York for $1.42 million. Finally, Miami Hills, an apartment community located in Loveland, was purchased by a Cincinnati-based investor for $1.15 million. The seller was the property’s original developer. Jeff Dilbone of Investment Property Advisors represented the sellers in all three transactions.
GAHANNA, OHIO — Simon Jonna of Marcus & Millichap’s Southfield, Mich., office has arranged the sale of a CVS/pharmacy in Gahanna for $3.3 million. The store, which is located in the Columbus, Ohio, metro area, is a CVS prototype that was built in 2006 and has more than 20 years remaining on the lease term. Jonna represented the sellers and coordinated the loan assumption approval that was necessary to complete the transaction.
SHOREVIEW, MINN. — Welsh Capital has secured a $4.35 million loan for a flex industrial property located in the Twin Cities suburb of Shoreview. The single-tenant building contains 70,826 square feet of office and warehouse space, and is located at 707 W. County Rd. The borrower received a new first and second mortgage for the property. Terms of the deal were not disclosed.
PRAIRIE VILLAGE AND FAIRWAY, KAN. — Kansas City, Mo.-based LANE4 Property Group has acquired three shopping centers located in the Kansas City metropolitan area. The properties include: Prairie Village Shopping Center, located at the intersection of 71st Street and Mission Road in Prairie Village; Corinth Square North and Corinth Square South, located at the intersection of 83rd Street and Mission Road, also in Prairie Village; and Fairway Shopping Center, located at Shawnee Mission Parkway and Belinder Road in Fairway. The portfolio totals more than 416,000 square feet of space, along with 154,000 square feet in ground leases; all of the centers are anchored by grocery stores. Major tenants include Hen House Grocery, Westlake Hardware, Macy’s, CVS/pharmacy and Chico’s. The portfolio was sold by Raleigh, N.C.-based REIT Highwoods Properties, which acquired the shopping centers in 1998 from their original developer, JC Nichols Co. All three were constructed in the 1950s and 1960s. LANE4 will manage and lease all three centers. Financing for the purchase was provided by the Kansas City office of Bank of America, with permanent financing provided by the Kansas City office of Grandbridge Real Estate Capital. The purchase price was not released.
PEORIA, ILL. — Stamford, Conn.-based Alliant Capital has arranged $8.7 million in Fannie Mae DUS funding for the refinancing of The Grove of Peoria, located in Peoria. The garden-style apartment community contains 318 units and occupancy was approximately 93 percent at the time of closing. The loan carries a 5.39 percent interest rate, a 5-year term with a 4.5-year yield maintenance and a 75 percent loan-to-value ratio. The loan was originated by John Starr of Alliant Capital. The borrower was not disclosed.
CHICAGO — Chicago-based Essex Realty Group has brokered the sale of 7657 South Morgan Street, a 12-unit walk-up apartment building located in Chicago’s Auburn Gresham neighborhood. Each of the units contains two bedrooms. Jon Morgan and David Goss of Essex represented the seller, a local bank, as well as the undisclosed buyer. The property traded for approximately $370,000.
GRAND ISLAND, NEB. — KeyBank Real Estate Capital has secured $6 million in financing for Autumn Park Apartments, a 144-unit, garden-style multifamily community located in Grand Island. The loan, which closed 2 months after application, comprises a conventional fixed-rate mortgage. The lender was Fannie Mae and the borrower was Timm Autumn Park LLC.
“Ride out the storm,” may be the refrain of industrial developers, landlords and tenants, as the recession and the resulting uncertainties have all players in the Twin Cities commercial real estate industry watching carefully and exploring their options. For starters, development has ground to a halt. This may be the silver lining, however, since it will enable the market to more easily absorb existing product and sublease space, thus allowing the market to recover more quickly when the economy begins to turn the corner. There is a small amount of spec product on the market, but this represents such a small amount that it has little to no impact. Fortunately, the restrained development has allowed the industrial market to catch its breath. During the first quarter, absorption fell in positive territory, with nearly 197,000 square feet absorbed, leading to a slight decline in vacancy from 10.1 percent to start the year to 9.9 percent by the first quarter’s end. The modest absorption has largely been driven by smaller deals. Another side effect has been the collapse of the land market. Land prices have come down as much as 50 percent from their highs during a flurry of activity some 12 …