WATERLOO, IOWA — Marcus & Millichap has arranged a $3.4 million nonrecourse loan for the refinancing of Summerland Townhomes in Waterloo, about 55 miles northwest of Cedar Rapids. The property includes rental 22 units. Robert Bhat of Marcus & Millichap arranged the 12-year loan, which features a 30-year amortization schedule and a fixed rate of 3.9 percent.
CINCINNATI — Kroger will limit the number of customers to 50 percent of the international building code’s calculated capacity to allow for proper social distancing in every store. The standard building capacity for a grocery store is one person per 60 square feet. Under Kroger’s new reduced capacity limits that begin today, April 7, the number will be one person per 120 square feet. Cincinnati-based Kroger will monitor the number of customers by using QueVision technology, which already provides a count of the customers entering and exiting stores. Kroger’s new customer capacity limits joins other measures the retailer has established over the last few weeks to promote social distancing, including the addition of plexiglass partitions and floor decals. Kroger is also encouraging associates to wear protective masks and gloves. All locations are expected to have these supplies by the end of the week.
DETROIT — The conversion of TCF Center in Detroit into a 1,000-bed field hospital is ahead of schedule and slated for completion by Wednesday April 8, according to the Detroit Free Press. Members of the Michigan National Guard assisted the Federal Emergency Management Agency with logistics support and inventory of equipment and supplies. The transformation of the convention center into a federal medical station is in effort to treat COVID-19 cases during a period of surge demand. On April 1, Gov. Gretchen Whitmer signed an executive order formally declaring a state of disaster. As of Monday, April 6, there were 17,221 confirmed cases of COVID-19 in the state of Michigan and 727 deaths.
COLUMBUS, OHIO — Washington Prime Group, in partnership with the Institute for Justice Clinic on Entrepreneurship and members of the University of Chicago faculty, has launched the Open for Small Business initiative to address the unprecedented business closures resulting from the coronavirus pandemic. In order to address the issues small businesses face concerning near-term cash flow, Open for Small Business has provided a lease modification as well as other relevant templates that enable the deferral of payments until these local entrepreneurs get back on their feet. Open for Small Business is also hosting educational webinars about how to access U.S. Small Business Administration (SBA) guaranteed loans as well as public and nonprofit agency programs. Columbus-based retail REIT Washington Prime Group hosted its first webinar this past week and more than 300 small business owners participated. The IJ Clinic on Entrepreneurship provides free legal assistance, support and advocacy for low-income entrepreneurs in Chicago.
LAKEVILLE, MINN. — Upland Real Estate Group Inc. has negotiated the sale of a 6,480-square-foot property net leased to Pep Boys in Lakeville, about 25 miles south of Minneapolis. The sales price was undisclosed, but the asset sold at a cap rate of 6.37 percent. The tenant, a franchisee known as The Pep Boys-Manny Moe & Jack of California, has more than eight years remaining on the lease and operates roughly 236 stores. There are approximately 1,000 Pep Boys locations nationwide.
LENEXA, KAN. — Oak River Farms is moving its headquarters from Louisiana to The District at City Center Lenexa. The agribusiness will occupy 4,595 square feet on the fourth floor of Penn II beginning this summer. Founded in 2016, Oak River Farms works within farming, land management and onsite storage of grain. Travis Gage of CBRE represented the tenant in the lease transaction. John Coe and Ryan Biery of Copaken Brooks represented ownership, Copaken Brooks. When fully developed, City Center Lenexa will consist of more than 2 million square feet, including civic components for the city of Lenexa, nearly 1 million square feet of office and retail space, and 375 residential units.
CHICAGO — In order to recognize the unique and unprecedented conditions of COVID-19’s impact on its triple-net-leased seniors housing tenants, healthcare REIT Ventas has established a rent deferral program for those care providers for the month of April. Under the program, certain seniors housing care providers who are Ventas tenants can defer 25 percent of their April 2020 payment obligation until Oct. 1 or receipt of government assistance. All amounts deferred are required to be used for operating expenses to care for seniors at Ventas communities. Ventas says these tenants account for approximately 20 percent of its total portfolio by net operating income. Based on current expectations, Ventas estimates that the amount of payments deferred under the terms of this program for April could be in the range of $3 million to $9 million. As of March 28, out of the 740 communities within the Ventas portfolio, 33 communities have experienced at least one confirmed COVID-19 diagnosis affecting approximately 70 residents out of 70,000 and 25 staff out of 55,000. Ventas is based in Chicago.
WICHITA, KAN. — KeyBank Community Development Lending and Investment has provided a $10 million construction-to-permanent loan to Steele Properties for the acquisition and renovation of Shadyway Plaza in Wichita. Steele Properties, based in Denver, is a real estate investment company that acquires, rehabilitates and constructs affordable housing. Built in 1979, Shadyway Plaza serves elderly and disabled residents. The seven-story building includes 100 one-bedroom units, all of which are income-restricted under low-income housing tax credit regulations at 60 percent of area median income. Monroe Group Ltd., Steele’s sister company, will manage the property. Steele plans to spend $3.7 million on renovations, including a new roof and doors as well as upgrades to the security features, HVAC system, community room and common area lighting. In addition to the $10 million loan, financing included 4 percent tax credits allocated by the Kansas Housing Resources Corp., tax-exempt bonds issued by the city of Wichita and $4 million of tax credit equity provided by the National Development Council. Sarah Geis of KeyBank structured the financing. The 4 percent tax credit is designed to subsidize 30 percent of the low-income unit costs in a project.
GRAND RAPIDS, MICH. — NAI Wisinski of West Michigan has brokered the sale of Foote Hills Apartments & Townhomes in Grand Rapids for an undisclosed price. The 182-unit, Class B multifamily property sits on 19.2 acres. The community features a pool, fitness center and newly remodeled clubhouse. Scott Nurski and Craig Black of NAI Wisinski represented the undisclosed buyer and seller.
HURON, S.D. — Dougherty Mortgage LLC has provided a $5.5 million Fannie Mae loan for the refinancing of Wheatgrass Village in Huron in eastern South Dakota. Constructed in 2018, the 81-unit property consists of one three-story apartment building and two two-story rental townhomes. The property also includes two single-story garage buildings. The 12-year loan features a 30-year amortization schedule. Wheatgrass Village LLC was the borrower.