AMANDA, OHIO — The Boulder Group has brokered the $1.2 million sale of an 8,320-square-foot property occupied by Family Dollar in Amanda, about 30 miles southeast of Columbus. Constructed in 2016, the building is located at 308 E. Main St. Family Dollar has 11 years remaining on its lease. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest-based real estate owner. A Southeast-based real estate investor purchased the asset.
Multifamily investors prefer to concentrate capital in the primary markets. Although prices are steep and cap rates low, the gateway cities offer private equity and institutional buyers the young, affluent tenants, economic diversification, deep trough of performance data and property market liquidity that can’t be found in smaller cities. Gateway cities offer these assets…until they don’t. The pandemic recession has turned the usual way of looking at things upside down. At least for the moment, tenants are fleeing the high costs and perceived dangers of dense urban living for the relative safety and larger floor plans found in suburbs and, in some cases, secondary and tertiary markets. The impact on property performance is significant. In the modern urban mid- and high-rise buildings favored by large portfolio investors, occupancy and rents are down materially, trimming forward-looking net operating income 15 percent or more in many Los Angeles, New York and San Francisco buildings. Determining fair asset value is nearly impossible under the circumstances. Buyers still may be willing to bid at prices generating deeply sub-4 percent initial yields but only against conservatively underwritten NOI levels that discount an extended period of performance weakness. Few owners are willing to realize the resulting …
CHICAGO — The Howard Hughes Corp. and Riverside Investment & Development have opened 110 North Wacker Drive, a 55-story office tower situated along the Chicago River. The 1.5 million-square-foot project is the tallest office building completed in the city in the last three decades, according to the developers. Bank of America is the anchor tenant. Other opening-day tenants include real estate investment advisor Heitman, global investment bank Lincoln International and law firms Jones Day and Morgan Lewis. Construction began in summer of 2018. Although no development cost was disclosed, Bank of America and JP Morgan Chase provided a $495 million construction loan at that time. The Class A tower features a 45-foot-wide riverwalk on its ground level. The covered area, which connects two downtown pedestrian paths and a small park, offers 22,000 square feet of public space. The project features technology designed to maximize overall health and wellness. This includes best-in-class HVAC systems, advanced dispatch elevators and a customized app that provides touchless building access, transportation information, event listings and the ability to book fitness and spa activity. Several enhancements have been added to address COVID-19 concerns, including advanced secondary air filtration systems, more air changes per hour than most …
WEST ALLIS, WIS. — McShane Construction Co. has completed building The West Living, a 177-unit luxury apartment project in West Allis, a western suburb of Milwaukee. McShane constructed the community on behalf of developer, Mandel Group. The first level of the four-story complex is a parking structure. Units consist of studios, one-, two- and three-bedroom floor plans. Amenities include a club area, fitness center, dog park and rooftop patio. Zimmerman Architectural Studios served as architect. Units are currently available for move-ins. Monthly rents start at $909 for studios.
CHICAGO — Industrious will open a 52,000-square-foot flexible office space at Willis Tower in Chicago. Scheduled to open in phases in the first quarter of 2021, the space is now available for lease. It is the latest of more than 100 locations for Industrious. EQ Office, owner of Willis Tower, says the management agreement with Industrious is an opportunity to roll out new flexible layouts and office configurations as well as updated common areas that reflect health and safety standards. The 110-story Willis Tower is currently in the midst of a $500 million renovation project. The revamped office tower will include 125,000 square feet of amenities exclusive to tenants, a 30,000-square-foot outdoor terrace and a 300,000-square-foot retail and dining destination known as Catalog.
AKRON, OHIO — ASW Supply Chain Services LLC has signed an 80,000-square-foot industrial lease at 3111 Gilchrist Road in Akron. The supply chain management company provides integrated warehousing, distribution, fulfillment, asset management and transportation services. Bill Sadataki of NAI Pleasant Valley represented the landlord, Raith Capital Partners LLC.
WAUWATOSA, WIS. — Software company Dematic has opened a 37,330-square-foot office at The Mayfair Collection in Wauwatosa, a suburb of Milwaukee. PREMIER Design + Build Group built out the 27,200 square feet on the first floor and added another 10,130 square feet by constructing a mezzanine level. The space can accommodate up to 200 employees and features seven conference rooms. TOA Architecture/Urban Design provided architectural and interior design services. Dematic is a logistics technology services firm that specializes in supply chain optimization. HSA Commercial is the owner and developer for The Mayfair Collection, a mixed-use project comprising residential, retail and office space.
CHICAGO — Foxtrot Ventures, a food delivery company, has leased 13,000 square feet at The Glass Factory in Chicago’s East Pilsen. Foxtrot will operate a commissary kitchen at the site in order to serve its eight convenience stores throughout Chicago. Commissary kitchens enable foodservice providers to prepare and store food without having to own and maintain the facilities themselves. Brent Burden of Jameson Commercial represented ownership of The Glass Factory. Andrew Becker and Michael Wexler of Canvas Real Estate Collective represented Foxtrot. Located at 900 W. Cermak Road, The Glass Factory is a former glass manufacturing facility. It is currently undergoing renovations and will ultimately consist of four buildings of office and industrial space.
MILWAUKEE — An affiliate of fifteenfortyseven Critical Systems Realty LLC, in partnership with Harrison Street, has acquired Milwaukee’s historic Wells Building. The purchase price was $7.25 million, according to the Milwaukee Business Journal. The 15-story, 165,000-square-foot building is located at 324 E. Wisconsin Ave. and dates back to 1901. The property has a long history as a communications center and once served as the Milwaukee headquarters for Western Union Telegraph Co. Today, the building serves as a carrier hotel and data center. A carrier hotel is a building in a downtown location that houses networks and cloud services. The buyer plans to make significant investments in the building’s power and cooling infrastructure. Ascendant Holdings LLC, a Wisconsin-based commercial real estate development and investment company, was the seller.
CLEVELAND — The NRP Group has broken ground on 5115 at The Rising, a 78-unit apartment community in Cleveland’s Broadway-Slavic Village. The project is being developed in collaboration with University Settlement, a social services provider that has been serving area residents for more than 90 years. In addition to the 78 apartment units, the development will include 10 townhomes. Project financing comes from The Ohio Housing Finance Agency, KeyBank, Ohio Capital Corp. for Housing, Third Federal Foundation and the City of Cleveland. University Settlement plans to relocate its corporate offices to a 20,000-square-foot commercial space on the ground floor of the building. Completion is slated for early 2022.
