CHICAGO — Chicago-based Ventas Inc. has sold five senior housing assets to affiliates of Emeritus Corp. for an aggregate sale price of $62.5 million. The facilities, which are located in four states, house a total of 432 units. Prior to the sale, Emeritus was the operator of the five assets. The acquisition price represents a 6.7 percent capitalization rate on current annualized cash rent of $4.2 million. Ventas Inc. expects to record a gain of approximately $23 million on the sale. In addition to providing $10 million in seller financing for the transaction, the company was released from approximately $7 million of existing mortgage debt. The loan is guaranteed by Emeritus, and bears an interest at an average rate of 8.25 percent, which is payable monthly, and matures in 3 years. The company can accelerate the loan on the occurrence of various events. Emeritus remains a operator in 11 other senior housing properties owned by Ventas.
KANSAS CITY, MO. — A 135,000-square-foot Lowe’s Home Improvement Warehouse has opened at Blue Ridge Crossing, which is located at Interstate 70 and Highway 40 in Kansas City. The center is a redevelopment of the former Blue Ridge Mall that was demolished in 2005. Additional tenants at Blue Ridge Crossing include Applebee’s, Foxy Nails, McDonald’s, Royal Buffet, Sports Clips, Starbuck’s Coffee, T-Mobile, Vintage Stock, GNC, Mattress Firm, Verizon and a Wal-Mart Supercenter. In addition to the Lowe’s opening, developer LANE 4 Property Group has plans to open two new phases at the center. The former Blue Ridge Cinema will be demolished to make room for pad sites. A bank, a convenience store, restaurants, shops and a hotel are proposed for the site. Additionally, a vacant parcel west of Lowe’s will be opened for development. Plans for the site call for restaurants and other retailers.
WOODRIDGE, ILL. — Chicago-based HSA Commercial Real Estate has leased more than 72,000 square feet of industrial space within its recently developed Park 355 facility, which is located at 2145 Internationale Pkwy. in Woodridge. Trenton, N.J.-based Highway Distribution Systems has leased 57,525 square feet of space for warehousing and distribution. The tenant was represented by Ben Cremer and Michael Robbins of NAI Hiffman. Additionally, The Village of Woodridge has taken 14,480 square feet, which will be used as a warehouse for village equipment and maintenance operations. J.D. Salazar of Champion Realty Advisors represented the village in lease negotiations. The 254,000-square-foot building, which is now 80 percent occupied, is the first phase of the Park 355 development. Situated on a 33-acre site, the park will include another spec building or build-to-suit facility that will measure as much as 350,000 square feet in size. Chuck Canale of Colliers Bennett & Kahnweiler is the project’s leasing agent, and worked with Tim Thompson of HSA in negotiating the terms of the two leases.
WAUKESHA, WIS. — Lee & Associates has brokered the $5.5 million sale of a retail building located at 2700 N. Grandview Blvd. in Waukesha. The 14,650-square-foot building is fully occupied by Walgreen’s, which has 19 years remaining on its lease. A California-based family trust has purchased the building from a Milwaukee-based investor. Steve Doran and John Walsh of Lee & Associates represented the seller; Allen Dehnke of Peninsula Real Estate represented the buyer in the transaction.
CHILLICOTHE, MO. — KAI Design & Build, DLR Group, and JE Dunn Construction have completed the Chillicothe Correctional Center located at 3151 Litton Rd. in Chillicothe. The $120 million prison, which has replaced an outdated facility constructed in 1887, provides expanded services to female offenders in substance abuse treatment, academic education and re-entry services. The 430,000-square-foot facility includes five butterfly-shaped housing units with a total capacity of 1,636 inmates. Future plans call for an additional housing unit to be constructed at the site. Components at the prison include a beauty shop, a religious center, a library, a bakery, a cosmetology lab, a gymnasium and a greenhouse. More than 400 security cameras were installed throughout the campus, which was completed in less than 2 years. St. Louis-based KAI Design & Build provided design services for the central plant, which houses the campus’ mechanical systems; the administrative segregation and mental health building; the reception and diagnostic center with the medical wing; the central services building, which houses the facility’s education, recreational and industrial training areas; and the greenhouse. DLR Group provided design and engineering services for the administration building, the housing units and the central utility loop. JE Dunn served as construction …
CONNEAUT, OHIO — Love Funding has processed one of the first applications under the LEAN loan program, HUD’s new healthcare program for acquisition, refinance, new construction and substantial rehabilitation loans. The LEAN program, which was formed to make the HUD 232 program process easier and more efficient, provides non-recourse assumable loans for new and existing assisted living, board and care, and intermediate or skilled nursing care facilities. Robert Smallwood of Love Funding’s Cleveland office used the LEAN processing to secure an approximately $6.51 million acquisition loan for Villa at the Lake, an assisted living facility located in Conneaut. Situated on an approximately 8.6-acre site, the 59,125-square-foot facility includes 90 single units and single-deluxe suites. Financing was based on a 6.4 percent fixed interest rate, with a 35-year amortization schedule. The loan marks the fourth deal that Love Funding has completed for Lawton, Mich.-based Randall Residence.
OMAHA. NEB. — Darland Construction Co. has been selected to build an Urban Active Fitness facility at 146th Street and West Maple Road in Omaha. The 48,532-square-foot building is underway, and is slated for completion this summer. The two-story fitness center will include a running track, a pool, saunas, spinning rooms, basketball and tennis courts, tanning rooms, and a kids play area. Ekhoff, Ochenkoski & Polk Architects is serving as designer for the project. The estimated cost of completion for the building was not disclosed.
DES PLAINES, ILL. — On behalf of the Illinois Bone & Joint Institute, Skokie, Ill.-based The Missner Group has completed a 60,000-square-foot medical office building located at 900 East Rand Road in Des Plaines. The Illinois Bone & Joint Institute will occupy approximately 27,000 square feet of the three-story building, with the remaining space available for lease. The Missner Group has also completed the interior build-out for the institute, which includes offices, examination rooms, MRI facilities, X-ray facilities and related medical support. Situated on the first floor of the building is a 7,889-square-foot MRI suite with a state-of the-art mechanical and electrical system, as well as treatment and physical therapy rooms, and an occupational therapy and physical fitness area. The second floor of the office features a 19,349-square-foot clinic suite with 32 exam rooms, four X-ray rooms and five conference rooms. Glen Missner of The Missner Group was the executive for the project; Stephen Rankin Associates provided architectural services. Larry Debb and John Kosich of GVA Williams were the co-developers for the project, and are serving as the owners’ representatives.
MIDDLEBURG HEIGHTS, OHIO — Harold Belkin, a West Coast-based entrepreneur, has acquired nine industrial facilities located at 6909 Engle Rd. and 17820-17830 Englewood Rd. in Middleburg Heights, Ohio. The properties, which are situated on two campuses, total approximately 300,000 square feet. The buildings were constructed between 1980 and 1996, and are currently 94 percent occupied. Elrad-Hadley Associates and Best Metals Properties sold the property for an undisclosed amount.
ANN ARBOR, MICH. — University of Michigan’s Board of Regents has approved the $108 million purchase of pharmaceutical firm Pfizer Inc.’s Ann Arbor property. Situated adjacent to the University’s North Campus, the 174-acre site includes approximately 2 million square feet of laboratory and administrative space in 30 buildings. While the specific uses for each building will be set throughout the next year, the property will be used for the university’s research activities in health, biomedical sciences and other disciplines. As a result of the expansion, the university has anticipated the need to hire 2,000 researchers and staff members during the next 10 years. The majority of funding for the acquisition is coming from the university’s health reserves, with the institutions investment proceeds funding the remainder of the purchase. The university plans to close on the Pfizer property in June following successful due diligence and compliance with any state and regulatory requirements.