Midwest

AURORA, ILL. — McShane Construction Co. will build Fox Valley Apartments, a 47-unit affordable housing adaptive reuse project in Aurora. McShane will redevelop two historic schools and construct one new building. Housing For All LLC, Visionary Ventures, Cordogan Clark & Associates and JTE Real Estate Services make up the development team. The 25,000-square-foot Mary A. Todd School will be transformed into 11 apartment units and a health clinic for low-income families. The building was originally constructed in the early 1900s and most recently used for West Aurora School District’s early childhood programs until 2019. The 39,000-square-foot Lincoln Elementary School will be transformed into 14 apartment units. Originally constructed in the late 1800s, the school has sat vacant since 2007. The ground-up building will rise two stories with 22 units. At least 30 percent of the units will be reserved for renters who earn up to 30 percent of the area median income. Amenities will include a common laundry room, community room, computer lab and tenant storage. Completion is slated for October 2023.

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LAWRENCE, KAN. — Marcus & Millichap has negotiated the $4.5 million sale of Lawrence 27, a 12,945-square-foot retail building in Lawrence. The property was built in 2014 and expanded in 2017. Lawrence 27 was fully occupied at the time of sale by Buffalo Wild Wings, Tropical Smoothie Café, Vapor World, Sports Clips and SunTan City. Zachary Turner, Scott Wiles, Erin Patton and Craig Fuller of Marcus & Millichap represented the buyer, a Kansas-based partnership. A Kansas City-based development firm was the seller.

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CHICAGO — CBRE has arranged the sale of a 58,803-square-foot office building in Chicago’s Fulton Market for an undisclosed price. The loft-style property, located at 217 N. Jefferson St., was built in 1937 and renovated in 2017. The building rises six stories and includes 40 surface parking spaces. Keely Polcynski and Blake Johnson of CBRE represented the seller, Metonic. A private buyer purchased the asset.

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OMAHA, NEB. — Marcus & Millichap has negotiated the sale of a two-property multifamily portfolio in metro Omaha for $27.5 million. Built in 2000 and 2001, Northridge and Flatwater total 192 units. The communities are located 10 miles apart and feature a mix of one- and two-bedroom floor plans. Jason Hornik, Greg Parker and Kent Guerin of Marcus & Millichap represented the seller and buyer, neither of which were disclosed.

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OMAHA, NEB. — Investors Realty has brokered the sale of a 123,664-square-foot retail property in Omaha for $21.4 million. Located at the intersection of 72nd and Pacific streets, the asset is home to Aldi, Cavender’s and Kohl’s. Ember Grummons of Investors Realty represented the seller, NewStreet Properties. Jason Taylor of Equity Management Group represented the buyer, Caller Properties.

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MINOT, N.D. — Kraus-Anderson has completed construction of a 110,000-square-foot Scheels store at Dakota Square Mall in Minot. Designed by R.L. Engrebretson Architecture, the $20.6 million project involved the remodeling of an 85,000-square-foot former Sears store combined with a 25,000-square-foot space for a conference room, classroom and offices. The store offers a selection of sports gear, clothing and shoes. Shoppers can also enjoy Ginna’s Café, which serves soups, sandwiches and coffee, and Fuzziwig’s Candy Factory, which sells homemade fudge.

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NAPERVILLE, ILL. — Physician Real Estate Capital Advisors (PRECAP) has arranged the sale of a 19,900-square-foot building in Naperville for $15.2 million. Constructed in 2008 and located at 1243 Rickert Drive, the property is home to Suburban Gastroenterology and Midwest Endoscopy Center. In 2020, the endoscopy center underwent a 6,800-square-foot expansion and renovation. Scott Niedergang of PRECAP represented the seller, a physician partnership, and procured the buyer, a privately held company specializing in healthcare real estate acquisitions.

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NEW BRIGHTON, MINN. — Clear Height Properties has acquired Rush Lake Business Park in New Brighton, a northern suburb of Minneapolis. The purchase price was undisclosed. The industrial property consists of two buildings totaling 79,028 square feet that are 87 percent leased. Harrison Wagenseil and Erik Coglianese of Transwestern represented the undisclosed seller. Transwestern will also handle leasing on behalf of Clear Height. The transaction marks the first acquisition in Minnesota for Oak Brook, Ill.-based Clear Height.

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US Treasury 10 Year Rates

By Melissa Jahnke, associate director of operations, Walker & Dunlop The Federal Reserve raised interest rates by 75 basis points in June and then another 75 basis points in July, sending shockwaves across the commercial real estate industry. Fortunately, there are opportunities and solutions to bypass these potential roadblocks. Specifically, investors in a segment of multifamily housing known as small balance lending (SBL), encompassing five- to 150-unit properties, have several options to realize their aspirations for financing multifamily portfolios. View a higher resolution version of the timeline above here. During a recent webcast “Financing Amid Rising Rates: Best Approaches for $1M-$15M Multifamily Loans,” Walker & Dunlop’s market experts spoke about navigating today’s financing landscape. The expert panel included Allison Williams, senior vice president and chief production officer; Allison Herrera, senior director of SBL; and Tim Cotter, director of capital markets. These experienced professionals have found ways to make deals happen in a wide variety of financing environments and have shared their perspectives and guidance. If you are an owner of five- to 150-unit properties that require loans between $1 million to $15 million, the following will help you navigate today’s financial environment and build your momentum. Step 1: Consider the …

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INDIANAPOLIS — Eastern Union has arranged $54 million in acquisition financing for a three-property multifamily portfolio totaling 628 units in Indianapolis. Built in 1980, Lake Marina features 348 units across 28 buildings. Lake Marina Realty LLC was the seller. Country Lake Townhomes is a 184-unit property that was built in 1974. Country Lake Apartments LLC was the seller. Zidan Realty Investments sold the 96-unit Fountainview, which was constructed in 1965. Michael Muller of Eastern Union arranged the 10-year, floating-rate loan with interest-only payments for the first five years. Arbor provided the Fannie Mae loan. The borrower was undisclosed.

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