KANSAS CITY, MO. AND MINNEAPOLIS — Arch Street Capital Advisors LLC has acquired two recently completed industrial assets totaling 2 million square feet in metro Kansas City and Minneapolis for an undisclosed price. The single-tenant, build-to-suit facilities serve as distribution space for an e-commerce company. Arch, on behalf of one of its institutional capital partners, provided preferred equity construction financing and a forward commitment to acquire the assets upon completion.
ST. CHARLES, ILL. — Associated Bank has provided a $20 million loan for the acquisition of Carroll Tower Apartments in St. Charles, about 40 miles west of Chicago. The affordable housing community is located at 200 N. Second St. along the Fox River. The six-story property is home to 108 one-bedroom units that are fully occupied. Units are restricted to low-income residents who are 62 years of age or older. Teresa Rubio of Associated Community Development LLC managed the loan and closing. The borrower, 3 Diamond Development LLC, plans to preserve the property’s affordability status.
GROVE CITY, OHIO — In a joint venture with Trident Capital Group, Invesco Real Estate Income Trust Inc. (INREIT) has purchased a 95 percent interest in an industrial building in the Columbus suburb of Grove City. Built in 2000, the fully leased property spans 378,283 square feet. The transaction marks INREIT’s fourth industrial investment. INREIT acquired the property in conjunction with the purchase of a shopping center in New York for a combined price of $94 million. The seller was undisclosed.
HOLLAND, MICH. — JLL Capital Markets has brokered the sale of Felch Street Shopping Center in the Grand Rapids suburb of Holland. The sales price was undisclosed. The 166,100-square-foot shopping center is fully leased to tenants such as Barnes & Noble, Bed Bath and Beyond, Jo-Ann Fabrics, Old Navy, Jonathan Stevens Mattress, Party City, PetSmart, Shoe Carnival, T.J. Maxx and Ulta Beauty. Amy Sands, Clinton Mitchell, Michael Nieder and Matthew Schoenfeldt of JLL represented the undisclosed seller. A private fund based in the Southeast purchased the asset.
RED LAKE FALLS, MINN. — Altoz Inc. is expanding its manufacturing space in Red Lake Falls, a city in northwest Minnesota. The outdoor power equipment company will add a new 62,500-square-foot facility, which is slated for completion by this fall. The development marks the first phase of a multi-phase expansion project, which will bring the company’s combined space to more than 400,000 square feet between Red Lake Falls and Greenbush. The new facility will accommodate state-of-the-art metal fabrication equipment.
By Cecilia Hyun, Siegel Jennings Co. Since early 2020, the COVID-19 pandemic has upended lives and disrupted the normal course of businesses, including those in the commercial real estate market. As in many other sectors, however, this public health crisis has not affected all commercial properties equally. Real estate occupied by essential businesses such as grocery stores, sellers of household goods and warehouse clubs, for example, have weathered the pandemic well. A few have even increased their market share. By contrast, many office buildings, hospitality and non-essential retail properties have suffered severely. Taxing jurisdictions and assessors have responded to the crisis with varying degrees of success. The Ohio Legislature passed special legislation (spearheaded by Siegel Jennings Managing Partner Kieran Jennings) to allow a onetime, 2020 tax year valuation complaint for a valuation date of Oct. 1, 2020, since the usual tax lien date of Jan. 1 would not have shown the effects of COVID. Other assessors applied limited reduction factors to account for the sudden pandemic-induced decrease in property values. As values recover, it is important for taxpayers to monitor still unfolding consequences as they review their property tax assessments. Initially, hotels and experiential property uses suffered the steepest losses …
SKOKIE, ILL. — Murphy Development Group has opened Highpoint at 8000 North, a 153-unit luxury apartment community in Skokie. Luxury Living Chicago Realty is the marketing and leasing provider, while Lincoln Property Co. is the property manager. Located at 8000 Lincoln Ave., the 12-story property features amenities such as a rooftop deck, fitness center, dog run, pet wash and lounges. First move-ins are underway. Monthly rents start at $1,750 for studios. Lucien Lagrange served as architect.
MINNEAPOLIS — Colliers Mortgage has provided a $25 million HUD 221(d)(4) loan for the construction of Satori Boutique Apartments in Minneapolis. The apartment complex will consist of 112 units within a six-story building. There will be one level of underground parking and first-floor commercial space. Of the 112 units, 23 will be restricted for residents earning 50 percent or less of the area median income. The project is situated within an opportunity zone and received tax-increment financing from the City of Minneapolis. The loan is fully amortized over 40 years. Satori Apartments I LLC was the borrower.
JEFFERSONVILLE, IND. — Mumford Co. has negotiated the sale of the Sheraton Louisville Riverside Hotel in Jeffersonville, just north of Louisville along the Ohio River. The 180-room hotel rises 10 stories. Affiliates of Sotherly Hotels Inc. sold the property to Riverside Hotel LLC, a partnership of two multi-unit hotel ownership groups with holdings across the eastern half of the U.S. The buyer plans to continue operating the hotel under the Sheraton brand and undertake a renovation program. Our Town Hospitality will be retained as property manager. David Mumford, Burton Brooks and George Arvanitis of Mumford Co. brokered the transaction.
DOWNERS GROVE AND MOKENA, ILL. — Northmarq has arranged two loans totaling $15.7 million for the refinancing of two industrial properties in suburban Chicago. The buildings total 275,254 square feet and are located in Downers Grove and Mokena. Jeff Frankel of Northmarq arranged the loans through a life insurance company. Both loans feature five-year terms, 30-year amortization schedules and fixed interest rates.
