BEDFORD, MASS. — Total nonresidential construction starts across the country rose by 16 percent from July to August thanks in large part to 201 percent growth in industrial starts, according to the latest report from Massachusetts-based Dodge Data & Analytics. Among the largest industrial projects that contributed to the growth were Facebook’s $1 billion data center project in Gallatin, Tenn., and Texas Instruments’ $740 million fabrication plant in Richardson, Texas. Construction starts in the commercial category, which includes office, hospitality and mixed-use, rose by 36 percent for the month. On year-to-date basis, the volume of total nonresidential starts remains 24 percent lower than the first eight months of 2019. “Construction starts continue to make up ground following the nadir of activity in April,” said Richard Branch, chief economist at Dodge. “The nascent recovery in starts, however, as summer turns to fall. The expiration of enhanced unemployment insurance benefits and small business loans that were provided in the CARES Act, the budget crises facing state and local governments and the impending expiration of the FAST Act on September 30 will all have a dampening effect on starts.”
NEW YORK CITY — Town Sports International Holdings Inc. (NASDAQ: CLUB), the parent company of New York Sports Clubs, Boston Sports Clubs and Lucille Roberts gyms, has filed for Chapter 11 bankruptcy, according to reports from multiple new outlets including CNBC and The Wall Street Journal. The company filed its petition in the U.S. Bankruptcy Court in Wilmington, Del. Town Sports, which operates about 200 fitness centers throughout the region, said that it does not plan to permanently close the majority of its gyms, which serve about 600,000 members. The fitness chain joins Dallas-based Gold’s Gym and 24 Hour Fitness as the latest operator to file for Chapter 11 bankruptcy in response to COVID-19, which has forced many such facilities to either close or operate at reduced capacities.
RARITAN, N.J. — Burlington has opened a new store at Somerville Circle Shopping Center, a 150,000-square-foot property located at the intersection of Routes 202/206 and Route 28 in Raritan, about 45 miles southeast of New York City. Burlington has backfilled a space formerly occupied by Toys ‘R’ Us/Babies ‘R’ Us. Other tenants at the center include Staples, Petco, Jersey Mike’s, Burger King and Five Below. Levin Management Corp. manages the property. The square footage of the store was not disclosed.
DELRAN, N.J. — Monster Pets, a retailer that serves the Philadelphia area, has signed a 57,930-square-foot industrial lease in the Southern New Jersey city of Delran. The property, which is now fully leased, is located near U.S. Route 130 and Swedes Run Industrial Park. Scott Mertz of NAI Mertz represented the landlord, a partnership between Endurance Real Estate Group and PCCP, in the lease negotiations. The representative of the tenant was not disclosed.
NEW YORK CITY — Bellwether Enterprise Real Estate Capital has provided a $5.6 million Freddie Mac permanent loan for the construction of a 71-unit affordable housing project located at 461 Alabama Ave. in Brooklyn. More than half the residences will be reserved for homeless renters. The financing was structured with a 35-year amortization schedule and a 4.63 percent fixed interest rate. Jim Gillespie and Ilya Weinstein of Bellwether Enterprise originated the loan on behalf of the borrower, a partnership between developer CB Emmanuel Realty and nonprofit Services for the Underserved.
The commercial real estate industry is still managing the COVID-19 pandemic and the heavy toll it has enforced on the national economy. The National Bureau of Economic Research declared in early June the U.S. economy was officially in a recession, less than three months after government-mandated shutdowns began en masse. Jay Olshonsky, president and CEO of New York-based NAI Global, says the sudden economic impact of the pandemic on the commercial real estate industry has already exceeded the global financial crisis. “The immediate magnitude of this is much greater than 2009,” says Olshonsky. “Some economists are predicting this could be 20 times as bad as far as the number of properties that are affected and could potentially go into default. The numbers are pretty staggering.” But Olshonsky is quick to point out that the current situation isn’t a doomsday scenario, nor is it permanent. “It will slowly get back to normal,” says Olshonsky. “There are a multitude of side effects. For every sell there’s a buy, for every loss there’s an opportunity. There will be opportunities that will be created.” Among those are distressed real estate assets, which can take the form of properties in foreclosure or mortgages that are …
FAIRLESS HILLS, PA. — Avison Young has brokered the sale of a 108,225-square-foot manufacturing and distribution facility at 200 Rock Run Road in Fairless Hills, located in Bucks County. Built in 1979 and renovated in 2016, the property offers proximity to several major interstates and has been fully occupied by CSC Sugar since 2012. Erik Foster, Mike Wilson Adam Gillespie, Paul French and Brian Hilger of Avison Young represented the seller, a partnership between Crestpoint Real Estate Investments, H&R REIT and PSP Capital Partners. The buyer was an undisclosed private investor.
CHAMBERSBURG, PA. — Sportsman’s Warehouse Holdings Inc. (NASDAQ: SPWH) will open a new store at 3285 Black Gap Road in Chambersburg, located roughly midway between Pittsburgh and Philadelphia in the southern part of the state. A grand opening celebration will take place Thursday, Sept. 24 through Friday, Sept. 26. The store will be the fourth Sportsman’s Warehouse in Pennsylvania and will offer more than 60,000 region-specific items including brand-name hunting, fishing, camping, shooting, apparel and footwear merchandise.
WESTBURY, N.Y. — Bloomingdale’s Furniture will open a 25,000-square-foot store at Samanea Mall in Westbury, located on Long Island, in spring 2021. Matthew Kucker and Jordan Baruch of Colliers International represented the landlord in the lease negotiations. Brian Schuster of Ripco Real Estate represented Bloomingdale’s. Samanea Mall originally opened in 1997 and is currently undergoing a multimillion-dollar renovation.
ROCHESTER, N.Y. — Blueprint Healthcare Real Estate Advisors, a brokerage firm specializing in seniors housing and healthcare assets, has brokered the portfolio sale of two assisted living communities located in the Upstate New York city of Rochester. A REIT sold the communities to a regional investor in an all-cash transaction. Further details were not disclosed.