ONTARIO, OHIO — Industrial Commercial Properties LLC (ICP), a Cleveland-based commercial real estate development company, has finalized an agreement with the City of Ontario to redevelop a former General Motors Co. stamping plant. Located about 65 miles northeast of Columbus, the 270-acre site could accommodate up to 2 million square feet upon full buildout, according to ICP. The Ontario plant closed in 2010 after GM’s bankruptcy restructuring in 2009. The city took possession of the property in 2018. ICP plans to redevelop the site into Ontario Commerce Park and says occupancy could begin as early as next year. The first tenant will be specialty film producer Charter Next Generation, which will occupy 45,000 square feet. ICP has also redeveloped former GM sites in Batavia and Moraine, Ohio.
MONEE, ILL. — DeBartolo Development LLC and Location Finders International have sold an 879,040-square-foot warehouse in Monee, a southern suburb of Chicago, for $50.3 million. Dallas-based Hillwood, a Perot company, was the buyer. Located on 61 acres within Bailly Ridge Corporate Center, the facility is named Bailly Ridge 4. It features a clear height of 36 feet, 100 dock doors, four drive-in doors, 346 trailer stalls and up to 406 car parking stalls. Principle Construction Group completed construction of the property in November 2019. Bailly Ridge Corporate Center spans 412 acres. Notable tenants include Amazon, XPO Logistics and Hancock Tires.
DES MOINES, IOWA — First Hospitality has opened a 124-room Home2 Suites by Hilton hotel in Des Moines. The property is located at 2650 University Ave. on the Drake University campus. The hotel features two meeting spaces totaling more than 1,000 square feet, an indoor pool and an outdoor patio space with a firepit. Michael Weldon will serve as the hotel’s general manager. As a result of COVID-19, Hilton has created the Hilton CleanStay program in partnership with RB, maker of Lysol. This program includes increased cleaning schedules, changes to amenities and services and social distancing requirements. The project joins First Hospitality’s growing national portfolio of more than 7,000 hotel rooms.
BATAVIA, ILL. — JLL Capital Markets has brokered the $2.5 million sale of a Raising Cane’s Chicken Fingers ground lease in Batavia within suburban Chicago. The 3,343-square-foot, single-tenant retail building sits on one acre at 1998 McKee St. Construction of the building was completed this year. Alex Sharrin and Alex Geanakos of JLL represented the seller, Kensington Development Partners. A family trust was the buyer. Raising Cane’s has more than 520 restaurants in 28 states.
SYCAMORE AND SPRINGFIELD, ILL. — Knoebel Construction has completed two Jiffy Lube locations in Sycamore and Springfield. The automotive service centers each span 3,500 square feet and each cost $1.2 million to build. Knoebel has also been selected to build six additional Jiffy Lube locations in four Midwest states for Stonebriar Auto Services, a Jiffy Lube franchisee. Those projects are in Cape Girardeau and Nixa, Mo.; Lake Hallie and Manitowoc, Wis.; Jeffersonville, Ind.; and Machesney, Ill. Completion of those facilities is slated for early 2021.
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Cleveland, Milwaukee & St. Louis Multifamily Forecasts Indicate Case for Caution
In earlier research, we found that investors may find advantageous risk and reward tradeoffs during the pandemic in often overlooked Midwest secondary markets. For the most part, average rent and occupancy metrics in these markets continued to rise throughout the summer, recession notwithstanding. Together, their inviting cap rates, rising NOI and low historic income volatility form a fairly compelling investment predicate. We also found that positive performance attributes were not limited to the region’s most robust economies. Even metropolitan markets that have experienced slow demographic growth — like Cincinnati and Detroit — posted surprisingly good revenue growth. Can the same logic be extended to metropolitan areas experiencing actual demographic decline? A review of recent trends in three “high-yield” markets with negative population growth – Cleveland, Milwaukee and St. Louis – shed some light on the question. View higher resolution version of chart above here. With respect to occupancy, the answer is yes. In fact, property level data published by Yardi suggest that market conditions in each of these metro areas has been constructive since February. Between February and October, average occupancy among stabilized same-store property samples increased by 14 basis points in Cleveland and 10 bps in St. Louis, in …
MINNEAPOLIS — Citing its multiple shopping channels and merchandising mix, Target Corp. (NYSE: TGT) reported Wednesday that its third-quarter comparable sales grew 20.7 percent compared with the same period a year ago. Digital comparable sales soared 155 percent, accounting for 10.9 percentage points of Target’s comparable sales growth. Same-day services such as order pickup grew 217 percent. “Our strong results in 2020 reflect the benefits of our multi-year effort to build a durable and flexible model, with a suite of fulfillment options,” said Brian Cornell, chairman and CEO, in a prepared statement. “We’ve seen a deepening level of engagement and trust from our guests. The result is unprecedented market share gains and historically strong sales growth, both in our stores and our digital channels.” Target benefits from a “one-stop solution,” stated Cornell in an interview with CNBC. In other words, shoppers can pick up multiple items from groceries to apparel in one trip. Minneapolis-based Target’s stock price closed at $166.85 per share Wednesday, Nov. 18, up from $111.96 per share one year ago. This month, Target reopened two stores in Minneapolis and Atlanta that were destroyed in May due to riots and civil unrest following the George Floyd tragedy. The …
ST. LOUIS — Kwame Building Group will serve as construction manager for The City District, an $81 million mixed-use project in North St. Louis City. The project will revitalize 10 blocks in the historic O’Fallon Park neighborhood. A series of new construction and redevelopment initiatives will reimagine 610,000 square feet into retail, single-family and multifamily homes, and community greenspace. The project will be built in two phases with completion slated for spring 2025. The O’Fallon neighborhood is home to many large and historical homes, according to Kwame. In Phase II, $1 million will be invested for the rehabilitation of 26 existing homes. Several large, single-family homes will be converted into multi-use rental properties. AMJ Investment Group is the developer and Jackson Design Group is the architect. Other project partners include the City of St. Louis and Alderman John Collins-Muhammad.
EDINA, MINN. — The Edina Housing Foundation has selected Lupe Development Partners and Ecumen to develop 118 units of affordable seniors housing in Edina. The project would be built on a parcel of land near Southdale Mall that the foundation owns. With rents ranging from $650 to $1,600, the proposed development will be affordable to seniors with household annual incomes ranging from $22,000 to $58,000. Ecumen will manage the property upon completion. The project team will work with the City of Edina to develop public art and community programing components. The development will feature one- and two-bedroom floor plans. Amenities will include a fitness center, community room, business center, package and mail center, green roof and walking path connections to the city’s trail system. The next steps are for the project team to begin the development planning and approval process with the city and obtain construction financing. Pending approval, construction could begin in spring 2022.
OLATHE, KAN. — Schlage Lock Co. has renewed its 253,440-square-foot industrial lease at 2119 E. Kansas City Road in Olathe. Dan and Kurt Jensen of Kessinger Hunter represented the landlord, a fund managed by DRA Advisors LLC. Ed Elder of Colliers International represented Schlage, which is one of the nation’s largest producers of commercial and consumer locks. The building has convenient access to major highways and nearby logistics support services.