NEW ALBANY, OHIO — Minneapolis-based healthcare real estate firm Davis has sold New Albany Medical Building II on the Mount Carmel Surgical Hospital campus for $27.7 million. The 59,233-square-foot medical office building is located in the Columbus suburb of New Albany. Davis acquired the asset in late 2019. The building is now 95 percent leased to tenants such as New Albany Surgery Center, OrthoNeuro, 161 Dental Studio, Ohio Skin, Capitol Pain and Stephen Webster Endodontics. Milwaukee-based Physicians Realty Trust was the buyer.
GRIMES, IOWA — Matthews Real Estate Investment Services has brokered the $17.5 million sale of an Amazon-occupied distribution center in Grimes, about 16 miles northwest of Des Moines. Built in 2019 and located at 1301 Southeast Gateway Drive, the property spans 109,786 square feet. Alexander Harrold of Matthews represented the buyer, a Los Angeles-based family office completing a 1031 exchange. The buyer was seeking an investment opportunity in the Midwest that would provide higher yields compared with California, according to Matthews. Matt Berres, Samer Khalil, Karick Brown and Jeffrey Miller of Newmark represented the seller, Briar Capital Management.
AURORA, ILL. — Atlantic Residential and Focus are converting a vacant Sears store and parking lot at Fox Valley Mall in Aurora into a 304-luxury apartment complex named Lumen Fox Valley. Evanston, Ill.-based Morgante Wilson Architects Ltd. is handling the design of the interiors, including all common areas and amenities. Lumen Fox Valley will feature studios to three-bedroom floor plans and amenities such as a two-story lounge, private dining room, game room, fitness center, yoga studio and outdoor pool. The project team includes architects Torti Gallas + Partners and HKM Architects + Planners as well as general contractor Focus. USAA Real Estate provided project financing. Completion is slated for this fall.
INDIANAPOLIS — Skender, working with Meyer Najem Construction, has begun structural construction of the new Indiana University Health (IU Health) Capitol View medical office building and parking garage in downtown Indianapolis. The project consists of a 250,000-square-foot medical office building and a 310,000-square-foot parking structure with 939 parking spaces. A pedestrian bridge connects the building to the parking structure. The project has been under construction since November and is now entering the structural phase of construction. Structural construction refers to components of the building that are essential to its stability such as foundations, floors, walls or beams. Completion is slated for summer 2023. The project team includes architect atelierRISTING, civil engineer Circle Design and structural engineer Lynch, Harrison & Brumleve. The team is pursuing LEED Silver certification for the property.
CHICAGO — Four Star Mushrooms (FSM) has signed a lease to open an 11,000-square-foot production facility at 300 N. Oakley St. in Chicago’s Kinzie Industrial Corridor. The facility represents a significant expansion from the company’s current 1,800-square-foot space. FSM’s mission is to revolutionize the cultivation of rare, unique and nutrient-dense mushrooms to help build sustainable food and ecological systems. The new facility will feature a commercial kitchen, wet lab, dry lab, cold storage, retail storefront and dining concept. Dimitri Tsiribas and Michael Conway of JLL represented FSM in the site selection process. Controlled environment agriculture, which involves the cultivation of plants and fungi in an indoor setting, is a rapidly growing sector of the food and agriculture market, according to JLL.
BENTON HARBOR, MICH. — Mno-Bmadsen, the independent, non-gaming investment entity of the Pokagon Band of Potawatomi Indians, has acquired a 50 percent stake in City Center Lofts in downtown Benton Harbor, a city in Southwest Michigan. Cressy Commercial Real Estate sold the stake for an undisclosed price and will retain a 50 percent stake in the property. Originally constructed in the 1880s, City Center Lofts sits on the corner of Main and Pipestone streets. The two-story, 20,000-square-foot building is home to 16 apartments and two commercial spaces. All the apartment units are occupied, and one commercial space is available for lease. Cressy rehabilitated City Center Lofts last year in partnership with the Michigan Economic Development Corp. and the Benton Harbor City Council. Mno-Bmadsen is diversifying its real estate portfolio, which is known as Redtail Properties. The entity is also investing in local communities and land that has historical significance to the Pokagon Band of Potawatomi, which is a federally recognized Indian tribe located in Southwest Michigan and Northwest Indiana. The tribe owns more than 6,000 acres of land in Michigan and Indiana. Mno-Bmadsen is derived from the Pokagon phrase for “the good path.”
NEW ALBANY, IND. — Marcus & Millichap has brokered the $4.1 million sale of the Green Valley Commons medical office building in New Albany, just north of Louisville. All IN Pediatrics has occupied the 13,456-square-foot property ever since it was constructed as a build-to-suit for the company in 2005. All IN is the largest longstanding pediatric practice in the state of Indiana, according to Marcus & Millichap. Gus Poulos, Joseph DiSalvo and Alexander Nulf of Marcus & Millichap represented the seller, an individual trust. The team also secured and represented the buyer, a limited liability company.
Like much of the country, the Milwaukee industrial market flourished over the last 12 to 24 months and has continued to shatter records across the board. Tenant demand far exceeded supply, driving vacancy rates down and rental rates up. Pent-up capital chased deals at record numbers, compressing cap rates further in this sector. And new construction continued its speedy pace, with over 8 million square feet on schedule to be delivered in 2022. But with inflation surpassing 8 percent and interest rates on the rise, the question now is how long will we continue this record-setting pace? Just-in-time to just-in-case As supply chain constraints emerged during the pandemic, businesses switched from the widely used just-in-time model to just-in-case, meaning drastic increases in inventory storage and logistic needs for many companies. Tenants scrambled to lease additional space to house what inventory they could get in stock. At the start of 2021, Class A industrial vacancy in Milwaukee was 9.68 percent. By the end of the year, that number had been slashed in half to just 4.39 percent as the flight to quality industrial product exceeded deliveries. In the fourth quarter of 2021, 1.65 million square feet of new industrial space …
CHICAGO — Logistics Property Co. has unveiled plans to develop 1237 West Division, an industrial project on the west side of Chicago that will span 600,000 square feet of logistics space across two floors. The city’s first multi-story warehouse will also offer both rooftop parking and an adjacent five-story parking garage. Logistics Property recently closed on the 11.5-acre land sale in Chicago’s Goose Island neighborhood and received approval from the Chicago City Council for the project. Situated adjacent to the four-way interchange at Division Street and Elston Avenue, 1237 West Division is located 3.5 miles from the Chicago Loop and 15 miles from Chicago O’Hare International Airport. The JLL team of Michael Conway, Leslie Lanne, Dan McGillicuddy and Gavin Stainthorpe will lease and market the property. “1237 West Division provides flexibility for companies that must get closer to their customers,” says Lanne, who leads JLL’s urban infill group. “It gives them access to modern distribution space, which urban core markets are severely lacking.” The first level of 1237 West Division will feature 36-foot clear heights, 28 dock doors and two drive-in doors. The second floor, which will be accessible by separate two-way, double-wide ramps, will feature 33-foot clear heights, 28 …
COLUMBUS, OHIO — Walker & Dunlop Inc. has arranged $59.8 million in debt and equity financing for the construction of Green|House, an apartment project in the Short North Arts District of Columbus. The seven-story development will feature 158 units and 3,700 square feet of retail space. Amenities will include a fitness center, outdoor pool, spa, sauna and community room. The project is the adaptive reuse of an existing building. Kaufman Development is the developer. Jeff Morris, Chad Kiner and A.J. Mangan of Walker & Dunlop arranged the debt through a regional bank and secured a national insurance company as the equity partner. The loan features a fixed interest rate and a three-year term.