INDIANAPOLIS — The Life Properties, the property management and construction management affiliate of Olive Tree Holdings, is underway on a $9.9 million capital improvement program at The Life at Wood Springs, a 608-unit apartment community in Indianapolis. The project is slated for completion in the first quarter of 2025. Upgrades include interior renovations to 417 of the residences; the implementation of new windows and paint; laundry center upgrades; resident clubhouse, onsite office and roofing repairs; and improvements to the dog park, playground and asphalt. There have also been necessary repairs made to the pool, delivering an amenity back to residents that had been unavailable for years under previous ownership. Upgrades also include several sustainable and security features, including the implementation of low-flow plumbing retrofits, LED lighting and a new security camera system. The property was originally built in 1973.
EAST CHINA, MICH. — Marcus & Millichap has arranged the $2.8 million sale of a 12,174-square-foot property occupied by DaVita Dialysis and Saint Clair Nephrology in East China, a city in eastern Michigan along the border of Canada. The net-leased building is located at 4180 S. Hospital Drive across from Ascension River District Hospital and St. John Providence Health System. Both tenants have occupied the property since its construction in 2015. Austin Weisenbeck, Sean Sharko and Daniel Chumbley of Marcus & Millichap represented the buyer, a limited liability company.
As the pandemic lockdowns hammered offices and retail properties, investors abandoned those assets and plowed cash into apartments and warehouses, both of which witnessed robust rent growth and appreciation as the economy reopened. But in many cases, apartment investors tapped ultra-cheap, variable-rate financing to overpay for multifamily properties, expecting rental rates to continue to climb and help the deals pencil financially. While in large part rents have grown — albeit not at the same double-digit level seen during 2021 and early 2022 — buyers often made the deals with too much optimism and failed to account for potential risks or often, at least, underappreciated them. Now, not only has the debt on those multifamily assets become considerably more expensive in about a year’s time, but labor, insurance, taxes and other operating costs also have increased. As a result, financial cracks are emerging in the multifamily market, says Jeff Salladin, a managing director with Dallas-based private debt fund Revere Capital. What’s more, because of the typical 12-month apartment lease term, landlords are unable to pass those higher expenses onto tenants in a timely fashion, declares Salladin, leader of the firm’s real estate debt team. Even if multifamily owners could increase rents, …
MANTENO, ILL. — Gotion has unveiled plans to build a $2 billion electric vehicle (EV) lithium battery manufacturing plant in Manteno, a southern suburb of Chicago located in Kankakee County. According to a press release from the state of Illinois, the company’s decision was bolstered by a Reimagining Energy and Vehicles (REV) Illinois incentive package and the new Invest in Illinois fund. The plant is expected to begin production in 2024. The facility will focus on lithium-ion battery cell, battery pack production and energy storage system integration. Gotion’s total incentive package from the state, which includes REV, Invest in Illinois and other incentives, is valued at $536 million. Through REV, Gotion is eligible to receive tax benefits totaling $213 million over 30 years. The REV agreement specifies a minimum company investment of $1.9 billion and the creation of 2,600 full-time jobs that are paid at least 120 percent of the average wage of similar job classifications in Kankakee County. Local authorities also approved Gotion for property tax abatement for 30 years. As part of the state’s commitment to build out comprehensive EV hubs and support Illinois’ workforce, the state will also fund a new manufacturing training academy nearby, as well …
ROSEAU, MINN. — Kraus-Anderson has completed Phase II of an overall $43 million renovation for Roseau Community Schools in Roseau, a city in northern Minnesota. Kraus-Anderson began the 141,000-square-foot project in July 2020 following the approval of a bond referendum that voters passed by nearly 75 percent. Designed by JLG Architects, the project included the renovation and expansion of the K-12 school complex, consisting of 81,000 square feet of new construction and a 60,000-square-foot remodel. Phase I included two stories of new construction and extensive remodeling, including classroom spaces for English, language and social studies, along with site improvements. Phase II featured 16,416 square feet of new construction, remodeling and reconstruction. There are new spaces for educational programming and activities. The high school received new classrooms, including Career and Technology Education (CTE), a music suite for band and choir, administrative and common areas. The project also provides improved and enlarged gymnasium spaces to meet physical education, co-curricular and community programming needs. Kraus-Anderson also replaced aging building and major systems, including ventilation, heating, electrical, lighting, roofing, exterior walls and insulation.
WOODRIDGE, ILL. — Standard Real Estate Investments LP is making an equity investment through its new $150 million investment vehicle in the Woodridge Industrial Center, a 217,000-square-foot logistics facility being developed by Trammell Crow Co. in suburban Chicago. The project is located on a 17-acre site in Woodridge and is slated for completion in summer 2024. The building will feature 22 dock doors, 130-foot truck courts and 270 parking spaces. The project team includes Harris Architects, general contractor FCL and civil engineer SpaceCo.
CHICAGO — ACO Commercial has arranged the sale of a five-acre development site located at 3000-3052 S. Pitney Court in Chicago’s Bridgeport neighborhood for $8 million. George Toscas and Linda Hatter of ACO represented the seller, St. Louis-based SOHO Investments Inc. The buyer was the Chinese American Service League Inc. The nonprofit plans to develop the site into a comprehensive community care campus with affordable seniors housing, an adult day service center for seniors, an early childcare center and an industrial/commercial kitchen for senior meals and culinary training programs. Additionally, a community center will offer sports programs and outdoor garden space along the river as well as space for meetings. People’s Gas and Coke Co. formerly owned the riverfront property for more than 100 years.
MILWAUKEE — Marcus & Millichap has brokered the sale of a 12,900-square-foot retail property occupied by CVS Pharmacy in Milwaukee for $3.1 million. The net-leased building was constructed in 2007. Jeff Rowlett of Marcus & Millichap’s The Rowlett Group represented the seller, a local investor group. The Rowlett Group also procured the buyer, a Delaware-based REIT. At the time of sale, there were just under 10 years remaining on the initial 25-year ground lease.
CINCINNATI AND BOISE, IDAHO — Kroger Co. (NYSE: KR) and Albertsons Cos. Inc. (NYSE: ACI) have agreed to sell 413 stores across 17 states and Washington, D.C., as part of the $24.6 billion merger between the two grocery giants. The buyer is C&S Wholesale Grocers, a New Hampshire-based grocery supply company overseeing brands including Piggly Wiggly and Grand Union. According to multiple news outlets including USA Today and Crain’s, the sales price is roughly $1.9 billion. In addition to the 400-plus grocery stores, C&S will also acquire eight distribution centers and two office properties that Kroger or Albertsons operate, as well as five private label brands. No store closures are expected to occur as a result of this selloff. The brands that will change ownership include Quality Food Centers (QFC), a regional operator in the Pacific Northwest; Mariano’s, which operates 44 stores in Illinois; and Alaska-based Carrs. Kroger owns QFC and Mariano’s, while Albertsons owns Carrs after acquiring the brand from Safeway and changing the name to Carrs-Safeway. Lastly, under the terms of the agreement, C&S will receive exclusive licensing rights to the Albertsons brand name in four states: Arizona, California, Colorado and Wyoming. In addition, Kroger will divest the …
LANSING, MICH. — Waramaug Hospitality has opened the DoubleTree by Hilton Lansing, a 256-room hotel in Lansing. Waramaug acquired the property in 2021 and decided to rebrand it and renovate all guestrooms and corridors, the lobby, Made Market, restaurants and bar, meeting rooms and pre-function spaces. The hotel also features a fitness center and two-story indoor pool. The second floor of the property connects to the Lansing Center, the city-owned 125,000-square-foot convention center. The property marks the eighth within Waramaug’s portfolio that is under the Hilton umbrella.