Surging payrolls, new household formations, growing barriers to homeownership and multifamily’s role as a hedge for inflation all helped fuel robust apartment fundamentals in 2021. With interest rates expected to rise in 2022, the question becomes: will the appetite for apartment investments remain strong for all types of investors and in which markets? Hilary Provinse, executive vice president and head of mortgage banking at Berkadia, says she sees many reasons to be enthusiastic about the opportunities in multifamily markets this year. “Fannie Mae and Freddie Mac will continue to set the standard for multifamily lending; however, strong life company, bank and debt fund appetites will compete heavily again in 2022. They will fill the needs not met by the government-sponsored enterprises (GSEs) or HUD.” When it comes to accelerating multifamily trends, Provinse sees an expansion in the scope of multifamily interest: “One of the trends we see accelerating (as a result of COVID) is increased investor demand in not only secondary markets, but even tertiary markets. This was a trend we had seen a decade ago, but now it’s on steroids.” “Because people can work from wherever now and because of more flexible work arrangements…we’ve seen this willingness to …
BONDURANT, IOWA — Avison Young’s capital markets group has brokered the sale of a 2.7 million-square-foot fulfillment center occupied by Amazon in Bondurant, a city northeast of Des Moines, for more than $325 million. The newly constructed, four-story property sits across the street from a 270,000-square-foot Amazon sortation facility. Jonathan Hipp, James Hanson and Richard Murphy of Avison Young represented the seller, Mesirow Realty Sale-Leaseback Inc. Earl Webb of 9th Green Advisors also advised Mesirow on the sale. Virginia-based Capital Square was the buyer.
MOUNT PLEASANT, WIS. — In April, Ashley Capital is scheduled to break ground on Buildings V and VI at Enterprise Business Park in Mount Pleasant. Both speculative industrial buildings will span 390,000 square feet each and are scheduled for completion in the fourth quarter. The developer has already completed three buildings totaling more than 1.2 million square feet at the business park, which is situated near I-94 and about 30 miles south of Milwaukee. Terry McMahon and Cody Ziegler of Cushman & Wakefield/Boerke and John Sharpe and Tom Boyle of Lee & Associates are the leasing agents for Enterprise Business Park.
FRIDLEY, MINN. — JLL Capital Markets has arranged a $12.8 million loan for the refinancing of Northern Stacks VIII and The Boiler Room, two buildings within the 122-acre Northern Stacks industrial park in the Minneapolis suburb of Fridley. Northern Stacks VIII is a 178,763-square-foot distribution and warehouse facility, while The Boiler Room is a 13,186-square-foot brewery. Northern Stacks VIII and The Boiler Room were renovated in 2020 and 2019, respectively, and are fully leased to five tenants. The Boiler Room is home to Forgotten Star Brewery and Northern Stacks Event Center. Brock Yaffe and Britta Lund of JLL arranged the loan behalf of the borrower, a joint venture between Minneapolis-based Hyde Development and Mortenson Properties Inc. A regional bank provided the seven-year, fixed-rate loan, proceeds of which will be used to take out two acquisition and redevelopment loans.
ARLINGTON HEIGHTS, ILL. — Marcus & Millichap has negotiated the sale of a 38,864-square-foot medical office building in the Chicago suburb of Arlington Heights for $3 million. The property, located at 2010 S. Arlington Heights Road, is 84 percent occupied by medical tenants. It recently underwent upgrades such as a new HVAC system, new elevator, new tile in the first-floor corridors and updated suites. Tammy Saia and Tami Andrew of Marcus & Millichap represented the seller, a local limited liability company. An Atlanta-based limited liability company was the buyer.
GRAFTON, WIS. — NAI Greywolf has brokered the sale of a 36,154-square-foot industrial building in Grafton, about 20 miles north of Milwaukee. The sales price was undisclosed. The property, which features both manufacturing and office space, is located at 1000 Hickory St. and features a clear height of 14 feet. David Hodge of NAI Greywolf represented the buyer, World Emblem, which plans to hire about 75 employees to work out of the facility.
CHICAGO — The Habitat Co., a Chicago-based multifamily developer and operator, plans to build a 33-story apartment high-rise in its hometown. The firm closed on the site acquisition at 344 N. Canal St. in Chicago’s Fulton River District that is currently home to the five-story Cassidy Tire brick building. Designed by Solomon Cordwell Buenz, the new tower will rise 375 feet and feature a glass façade. Habitat’s joint venture partner on the project is Diversified Real Estate Capital LLC, a private equity investment firm based in Chicago. The land seller was not disclosed. “As we know from experience, there will always be a demand for Class A rentals in prime city locations like 344 N. Canal, so the fact that a highly experienced and successful developer like The Habitat Co. was behind the building only made it that much more attractive for us to be part of the project,” says Jeff Cherner, executive vice president of Diversified Real Estate Capital. Habitat Co. will begin demolition and break ground on the 343-unit property this spring, though a target delivery date was not disclosed. Upon completion, the unnamed community will feature a mix of studio, one- and two-bedroom units, as well as …
GLENVIEW, ILL. — McShane Construction Co. has completed a 429,524-square-foot addition to the warehouse and showroom for Abt Electronics in the Chicago suburb of Glenview. The expansion more than doubled the tenant’s space. The project includes 22,230 square feet of office space and 407,294 square feet of warehouse space. The office buildout includes trucking offices, security offices, a break room and open office space. The single-story warehouse features a clear height of 32 feet and 39 semi-truck docks. Abt sells home appliances and electronics.
ILLINOIS, INDIANA AND WISCONSIN — Ryan Cos. US Inc. has completed three new healthcare facilities in the Midwest. The properties include Edward-Elmhurst Health Center in Woodridge, Ill.; U.S. Department of Veterans Affairs community-based outpatient clinic in Brownsburg, Ind.; and Froedtert & the Medical College of Wisconsin Community Hospital in Mequon, Wis. The Woodridge facility rises two stories and spans 36,100 square feet at the southwest corner of Route 53 and 75th Street. The property includes offices for primary care physicians and specialists. Additional services include a walk-in clinic, behavioral health, physical therapy, laboratory and diagnostic imaging. The Brownsburg facility is located just west of Indianapolis. The clinic provides primary care and specialty services such as mental health, orthopedics, podiatry, neurology, cardiopulmonary, women’s health, blood draw, optometry, audiology, radiology, prosthetics and physical therapy to veterans. The building also houses a pharmacy, meeting spaces for 175 staff members, food services, a chem lab, training classroom, locker rooms and police services. Lantz-Boggio Architects served as architect. The 17,000-square-foot hospital in Mequon is located across the street from the 89,300-square-foot Froedtert Mequon Health Center that Ryan developed in 2017. The suburban Milwaukee facility will house eight inpatient beds, a seven-bed emergency department, laboratory, pharmacy …
CLEVELAND — IWG, a provider of flexible workspaces, has opened Spaces Cleveland in the city’s historic Warehouse District. The 27,000-square-foot flexible workspace is situated within the Western Reserve Building and features 48 offices and three meeting rooms. IWG says it added 2 million new customers globally in 2021, reflecting the largest growth in its 30-year history.