ANN ARBOR, MICH. — Fitness concept Stretch Lab has signed a 1,207-square-foot retail lease at the Uptown Ann Arbor mixed-use development in Ann Arbor. Other retail tenants at the property include Beyond Juice, Marco’s Pizza, Banfield Pet Hospital, Paint Nail Bar, Detroit Wing Co. and The Great Greek. Stephen Smith of TNF Realty represented Stretch Lab in the lease. Michael Murphy, Vicki Gutowski and Tjader Gerdom of Gerdom Realty & Investment represented the owner, Beztak Properties.
FARMINGTON, MO. — Axiom Capital Corp. has arranged a $3 million loan for the refinancing of a 51,373-square-foot retail building in Farmington, a city in eastern Missouri. Built in 2016, the single-tenant property is occupied by Hobby Lobby. The nonrecourse loan features a five-year term and a fixed interest rate. The lender and borrower were not provided.
High interest rates and economic uncertainty in the first quarter of this year contributed to lower absorption and declining rent growth in industrial, retail and multifamily sectors across the country, with some regional exceptions, according to Lee & Associates’ 2023 Q1 North America Market Report. Meanwhile office continues to struggle. The sector experienced its third-largest quarterly contraction since the beginning of the pandemic, as work-from-home preferences decoupled office occupancy from job growth numbers. The full Lee & Associates report is available (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city) here. The analysis below provides an overview of four major commercial real estate sectors alongside trends, economic background and exceptions within each sector. Industrial Overview: Sharp Decline Hits First-Quarter U.S. Demand There was a sharp first-quarter decline in U.S. tenant demand for industrial space as wholesalers and retailers reconsider their inventory levels out of caution over the economic outlook. Net absorption in the first quarter totaled 39.4 million square feet, a 57 percent drop from the record set a year ago. The overall U.S. vacancy rate settled at 4.4 percent, an increase of 40 basis points from the close of 2022, comfortably …
ST. LOUIS — Berkadia has arranged the sales of two multifamily properties and one multifamily development site in St. Louis for a combined $100 million. The first transaction includes Southfield Apartments, a 429-unit, garden-style community located at 5549 Southfield Drive. The second deal is an unnamed high-rise property. The third transaction includes 15 acres of land that will be utilized to develop a townhome-style community with 160 units. Andrea Kendrick, Ken Aston and Bobby Mills of Berkadia brokered the sales. Buyer and seller information was not provided.
COLUMBUS, OHIO — Trident Capital Group and The O’Connor Group have completed development of the first phase of Rickenbacker Industrial Center in Columbus. The first phase includes a 1 million-square-foot speculative building on 60 acres. The property features a clear height of 40 feet, 104 docks, four drive-in doors, 347 parking spaces and 9,827 square feet of office space. The project offers convenient access to Rickenbacker International Airport and Norfolk Southern Intermodal Yard. Upon full build-out, Rickenbacker Industrial Center will consist of 3.7 million square feet across 230 acres. Jeff Lyons and Michael Mullady of CBRE are the leasing agents.
WARSAW, IND. — JLL Capital Markets has brokered the sale of Warsaw Commons, an 87,858-square-foot shopping center in Warsaw, about 40 miles northwest of Fort Wayne. The sales price was undisclosed. Built in 2012, the fully occupied property is home to tenants such as TJ Maxx, PetSmart, Ulta, Dollar Tree and Shoe Carnival. Michael Nieder of JLL represented the seller, IRC Retail Centers. Nate Monson and Brandon Goodman of Colliers represented the buyer, The Lofts at 5 Points LLC.
CHICAGO — Kiser Group has negotiated the sale of a three-property multifamily portfolio in Chicago’s East Woodlawn and Bronzeville neighborhoods for $8.6 million. The buildings, which feature a combined 70 units, are located at 6625 S. Drexel Ave., 4901 S. Michigan Ave. and 4725 S. Michigan Ave. The units have updated kitchens and bathrooms, but current rents are about 30 percent below market rents, according to Kiser. The brokerage firm’s Birk | Sklar team brokered the transaction. Buyer and seller information was not provided.
VERMILLION, S.D. — Marcus & Millichap has arranged the $2.1 million sale of a 2,365-square-foot retail property occupied by Starbucks in Vermillion, home of the University of South Dakota. The net-leased building has a new 10-year lease with Starbucks that features 7.5 percent rental increases every five years. Mark Ruble and Chris Lind of Marcus & Millichap represented the seller, a limited liability company. Buyer information was not provided.
CHICAGO — McShane Construction Co. and Powers & Sons Construction have completed 23rd Place at Southbridge, a 206-unit mixed-income community located on Chicago’s Near South Side. The Community Builders and McCaffery Interests developed the project, which is situated on the former Harold Ickes Homes site. The two-building development features 15,000 square feet of ground-floor retail space. Approximately 50 percent of the units are affordable to households earning up to 80 percent of the area median income. The project features amenity space on the first and sixth floors, including lounges, terraces and a fitness center. A new public right-of-way, 23rd Place, connects the two buildings and can be closed off to create public gathering space for community activities. The transit-oriented development is located adjacent to the Cermak-McCormick Place Green Line L stop. Nia Architects and Antunovich Associates provided architectural services.
INDIANAPOLIS — Greystone has provided $40.1 million in Fannie Mae DUS financing for two multifamily properties totaling 408 units in Indianapolis. Dan Sacks and Avi Kozlowski of Greystone originated the loans. In the first transaction, Greystone provided a $23.5 million Fannie Mae Green Rewards loan with a 10-year term and 30-year amortization. The 26-building property was constructed in 1972 and features 200 units. Loan proceeds enable the borrower to acquire and make improvements to the community. In the second transaction, Greystone secured a $16.6 million fixed-rate loan that features a 10-year term and 35-year amortization. The garden-style community was built in 1970 and consists of 208 units across 24 buildings. In addition to refinancing, loan proceeds enable the borrower to make improvements and monetize a portion of its equity.
