CINCINNATI — Dayton, Ohio-based The Connor Group has sold Kensington Park apartments located at 11651 Norbourne Dr. in Cincinnati. Newport Beach, Calif.-based Core Realty Holdings has purchased the 316-unit property for $19.5 million. The Connor Group acquired the complex in 2005, and investors made a 52 percent overall return on the Kensington Park sale in 3.5 years.
Midwest
HIGHLAND HEIGHTS, OHIO — Osborne Capital Group has begun the redevelopment of the 87,000-square-foot former Alpha Plaza retail center located at the interchange of Wilson Mills Road and Interstate 271 in Highland Heights. The development, which is being renamed The Shoppes at Alpha Place, will house 110,000 square feet of retail space. Panera Bread, Verizon Wireless and Shish Grill will tenant the 18,000-square-foot newly constructed component of the center. A freestanding Key Bank branch is also being built as part of project. The project has an estimated gross cost of $12 million. Construction is slated for completion in December, with retailers opening in early 2009.
What area is your expertise? For the purpose of this report I will be discussing the office market in and around Akron. What trends do you see presently in office development in your area? Akron has historically been a fairly conservative and stable office development market. Fortunately, this has meant that our area has not fallen in the trap of being over developed like a lot of cities experience in a market downturn. However, as we’ve experienced in the past down markets, those tenants that are making moves are expecting and getting rental concessions, increased tenant improvement allowances and very attractive rental rates. We’ve also experience a substantial increase in locally owned businesses opting to either build or buy their own office space which is due to the attractive mortgage rates and sale prices. Who are the active office developers in your area? In the 35-plus years that I’ve been in the office/industrial real estate business, I have not seen as many major expansion projects announced as I’ve seen in the past 18 months in our area. These projects will undoubtedly help bolster the Akron economy and help spur additional growth, or a trickledown effect as some would choose to …
CHICAGO — Two independent directors at Chicago-based General Growth Properties Inc. (NYSE: GGP) have assumed senior interim management positions: Adam Metz will serve as interim CEO, replacing John Bucksbaum, and Thomas Nolan Jr. will serve as interim president, replacing Robert Michaels. Bucksbaum and Michaels resigned their positions effective October 26, according to an 8-K filed with the Securities and Exchange Commission today. Bucksbaum will continue to serve as chairman of the company, and Michaels, who has given up his board seat, will serve as COO as well as a senior officer of the company. Metz is a founding partner of Polaris Capital LLC; Nolan most recently served as a managing director of Trefethen & Co. As a response to economic challenges facing General Growth, the company has placed its Las Vegas portfolio of retail properties up for sale. The portfolio includes Fashion Show Mall, Grand Canal Shoppes and The Palazzo. Goldman, Sachs & Co. and Eastdil Secured are responsible for the marketing effort, which is expected to begin immediately. Additionally, the company is working with its lenders to extend the November 28, 2008 maturity date of loans for Fashion Show Mall and The Palazzo. General Growth Properties continues to remain …
NILES, ILL. — Advantage Freight Network has selected Summit Design + Build to serve as general contractor for the company’s new corporate headquarters located at 7230 N. Caldwell Ave. in Niles. Currently housed in Deerfield, Ill., the firm is relocating to an existing 48,326-square-foot facility, which Summit Design + Build is completely renovating. The new facility consists of 38,932 square feet of office space, which includes private offices, huddle rooms, conference rooms, a training room, restrooms, a kitchen, a vending area and an open office area with the capacity to house more than 300 employees. Additional plans include a workout facility, a heated parking garage and a parking lot for more than 200 cars. The facility, which is situated on a 4.3-acre site, is slated for completion in the first quarter of 2009. Cornerstone Architects is the project architect; Anthony Burns and Jeff Josephs of Sydney Partners represented Advantage Freight Network in the transaction.
RACINE, WIS. — The Commercial & Investment Division of Milwaukee-based Ogden & Co. has brokered the sale of a 71-unit assisted living facility located at 5737 Erie St. in Racine. John and Richard Coury of Elizabeth Residence and Ramsey Woods Residence, respectively, have acquired the property from Villa St. Anna Inc., a subsidiary of Franciscan Ministries Inc. The property is situated within the Wind Point area of the Village of Caledonia. The new owners, which have plans to operate a 50-unit community-based residential facility at the property, will renovate the existing building, enlarging the units, adding full bathrooms and expanding the living area. Additionally, the new owners have plans to construct a 24-unit residential care apartment complex at the approximately 4-acre site. Dave Nance of Ogden & Co. represented the seller; James Ried represented the buyer in the transaction. The acquisition price was not disclosed.
CHICAGO — Essex Realty Group has arranged the sale of 10 S. Mason, a 41-unit corridor property located within the Austin neighborhood of Chicago. The building houses 26 studio; 13 one-bedroom; and two two-bedroom units. The sales price was approximately $1.08 million. Jon Morgan and David Gross of Essex represented both parties in the transaction.
OTSEGO AND GRAND RAPIDS, MICH. — Grubb & Ellis|Paramount Commerce has brokered two Michigan office transactions totaling more than 65,000 square feet. In Otsego, the company has arranged the sale of a 51,606-square-foot office property located at 313 W. Allegan. The Cardinal Newman Liberal Arts Project has purchased the building from Otsego Public Schools for an undisclosed amount. The property was acquired for a proposed liberal arts college. Jed Schildroth and Andrew Visser of Grubb & Ellis|Paramount Commerce represented the seller in the transaction. Additionally, Ray Kisor of Grubb & Ellis|Paramount Commerce has brokered the acquisition of a 14,154-square-foot office property located at 246 Ionia Ave. NW in Grand Rapids. Van Andel Institute has purchased the facility from the Diocese of Grand Rapids. Stan Wisinski of The Wisinski Group represented the seller in the transaction.
JOLIET, ILL. — Ryan Cos. US has completed $9.6 million in infrastructure improvements at Laraway Crossings, which is a 352-acre business park located on Route 53 in Joliet. The project included completing the extension of Emerald Drive and Cashel Road, site grading the remaining lots, and completing the park stormwater system and landscaping. Completion of the infrastructure improvements has enabled Laraway Crossings to offer pad-ready sites ranging in size from 8 acres to 80 acres. Upon completion, Laraway Crossings could house approximately 6 million square feet of industrial space. Swedish retailer Ikea plans to develop a 1.3 million-square-foot Midwest distribution center at the park. Steve Connolly and Eric Tresslar of NAI Hiffman are marketing the property on behalf of Ryan Cos. US.
LINCOLN, NEB. — Dallas-based KDC has begun construction of a 150,000-square-foot office building located within the University of Nebraska Technology Park in Lincoln. Plano, Texas-based Perot Systems will occupy the two-story facility, which is seeking LEED Certification. Green elements of the building include raised access flooring and under-floor air distribution. KDC will also develop a technology service delivery center at the facility. Construction is slated for completion in the third quarter of 2009. Perot Systems has leased the build-to-suit office for 10 years. KDC was presented in-house by Ab Atkins; Bob Edge, Gary Collett, Mari Jones, Meg Hardin and Matt Heidelbaugh with Cushman & Wakefield of Texas represented Perot Systems in the transaction.