WASHINGTON, D.C. — Commercial and multifamily mortgage loan originations increased 59 percent in the third quarter of 2024 compared to a year ago, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The third-quarter volume also represents a 44 percent increase from the second quarter. There was a 510 percent year-over-year increase in the dollar volume of loans for healthcare properties, a 99 percent increase for hotel properties, 82 percent increase for retail properties, 57 percent increase for industrial properties and a 56 percent increase for multifamily properties. Office real estate originations decreased 3 percent from a year ago. Among investor types, the dollar volume of loans originated for commercial mortgage-backed securities (CMBS) increased by 260 percent year-over-year. There was a 69 percent increase for depository (i.e. bank) loans, a 62 percent increase for investor-driven lender loans, 31 percent increase in loans for life insurance companies and a 28 percent increase in loans from government-sponsored enterprises (GSEs, namely Fannie Mae and Freddie Mac). Jamie Woodwell, MBA’s head of commercial real estate research, says that lower interest rates due in part to the Federal Reserve’s 50-basis-point decrease in September were “a key driver” for the uptick …
BRIDGETON, MO. — Marcus & Millichap has arranged the $8.8 million sale of a 22,097-square-foot medical office building in Bridgeton, a northwest suburb of St. Louis. Located at 3550 McKelvey Road, the property is occupied by St. Louis Heart and Vascular. There are more than 17 years remaining on the triple-net lease. Built in 1974, the facility is situated near DePaul Hospital. Alec Coronado of Marcus & Millichap represented the seller, an out-of-state developer, and procured the buyer, Montecito Medical.
MELVILLE, N.Y. — Northwell Health, the state’s largest provider, has signed a 19,162- square-foot office and healthcare lease in the Long Island community of Melville. Northwell plans to operate a pharmacy center and administrative offices within the 55,686-square-foot building at 40 Melville Park Road, which is owned by locally based firm Simone Development Cos. Darren Leiderman of Colliers represented Northwell in the lease negotiations. Simone Development was self-represented.
DETROIT — PACE Loan Group has provided a $3.3 million C-PACE loan for the renovation of the Samaritan Center in Detroit. The four-building business complex features more than 525,000 square feet. The loan covers 60 percent of the energy-efficiency project’s $5.5 million renovation, which will update the main building and is expected to reduce annual repair expenses and utility costs. Redeveloped from a former hospital, Samaritan Center was founded to help spur redevelopment on the east side of Detroit and is owned by SER Metro-Detroit. At least 65 percent of the space is leased to nonprofits, which aim to promote education and physical and mental well-being in the community. Currently, the property is used for medical services, senior living, education, social services and office space. The C-PACE proceeds will be used to finance qualifying energy-efficiency improvements, including LED lighting, HVAC, chillers and boilers, upgraded building control systems and new elevators. These improvements are expected to save $328,370 annually in energy costs and reduce annual maintenance costs by $250,000. SER Metro-Detroit also received a $2 million grant from the State of Michigan to update the building façade, replace large sections of the roof and rebuild air handlers.
NEW ALBANY, OHIO — Flagship Healthcare Properties has acquired a 14,416-square-foot ambulatory surgery center (ASC) in New Albany, about 15 miles northeast of Columbus. The purchase price was undisclosed. Built in 2003, the property at 6520 W. Campus Oval is fully leased to Central Ohio Surgical Institute, which is majority owned by nonprofit healthcare system OhioHealth. The ASC features five operating rooms and offers multiple surgical specialties, including ENT, plastics, orthopedics, gynecology, dentistry and gastroenterology. The property is situated within the 9,000-acre New Albany International Business Park. Flagship utilized its private real estate investment trust, Flagship Healthcare Trust, for the acquisition. Flagship will provide property management and asset management services for the ASC. Fifth Third Bank provided acquisition financing. Nick Myeres of Zeustra represented the undisclosed sellers.
LYNCHBURG, VA. — Capital Growth Medvest has broken ground on a $105 million healthcare project in Lynchburg, a city in central Virginia at the foothills of the Blue Ridge Mountains. The project comprises two adjacent outpatient hospitals: Centra Rehabilitation Hospital (50 beds, 62,500 square feet) and Centra Behavioral Health Hospital (72 beds, 61,000 square feet). JE Dunn Capital Partners and Sila Realty Trust are capital partners on the project, and Carter Bank is providing senior construction financing. Operating partners on the project include Centra Health, LifePoint Rehabilitation and Lifepoint Behavioral Health, both of which are affiliates of LifePoint Health. The two Lynchburg projects represent Capital Growth Medvest’s sixth and seventh development partnerships with Lifepoint across six states. JE Dunn is serving as the general contractor for both hospitals, and Earl Swensson Associates and Stengel Hill Associates are the architects for the rehabilitation and behavioral health hospitals, respectively. Both facilities are slated for completion in late 2025.
ARLINGTON, TEXAS — Alliance Consolidated Group of Cos. has purchased a 15,110-square-foot healthcare property in Arlington. The sales price was $6 million. According to LoopNet Inc., the single-tenant property at 950 N. Davis Drive was originally built in 1985. The seller, an orthopedic care provider doing business as MCS Dallas Medical PLLC, will lease back the space from the new ownership.
OMAHA, NEB. — Cushman & Wakefield has brokered the sale-leaseback of a 70,000-square-foot specialty orthopedic hospital in Omaha for an undisclosed price. Built in 2004 and expanded in 2020, the property is fully occupied by OrthoNebraska. The two-story facility is dedicated to musculoskeletal care with 24 inpatient beds, 12 operating rooms and several treatment rooms. Gino Lollio, Travis Ives, Sushil Puria and Tyler Morss of Cushman & Wakefield, along with TJ Twit of The Lund Co., an alliance of Cushman & Wakefield, represented OrthoNebraska in the transaction. Montecito Medical Real Estate was the buyer.
Affordable HousingBuild-to-RentCivicData CentersFeaturesHealthcareHospitalityIndustrialLife SciencesMixed-UseMultifamilyNet LeaseNevadaOfficeRestaurantRetailSelf-StorageSeniors HousingSingle-Family RentalStudent HousingWesternWestern Feature Archive
Emerging Trends Report Predicts Rebound in Transaction Volume in 2025 as Capital Markets Are ‘Poised for Recovery’
LAS VEGAS — At the September meeting of the Federal Open Market Committee (FOMC), the Federal Reserve lowered the federal funds rate by 50 basis points, which is the first easing of monetary policy in four years. This move lowered the short-term interest rate to a target range of 4.75 to 5 percent. Elevated borrowing costs have stifled commercial real estate transaction volumes the past couple years as buyers and sellers found that values were a moving target. Now with a reduction in interest rates, many real estate professionals expect transaction volume to rebound at least moderately. “In 2025, we expect lower interest rates will reduce borrowing costs, aid in price discovery and ultimately encourage an uptick in [commercial real estate] transactions,” said Angela Cain, global CEO of the Urban Land Institute (ULI). Cain’s comments came in a prepared statement to summarize the findings of Emerging Trends in Real Estate 2025, an annual report jointly produced by PwC US and ULI. The report was published in conjunction with ULI’s Fall Meeting, which is taking place this week at Resort World Las Vegas. Cain said that the real estate professionals surveyed for the report relayed that sentiment is improving, though many remain cautious. …
PARAMUS, N.J. — New Jersey Brain & Spine will open a 16,222-square-foot clinic in the Northern New Jersey community of Paramus. The neurosurgery practice will relocate from nearby Hackensack to the 348,510-square-foot building at 650 From Road in January. Ben Brenner, David DeMatteis, and Mark Zaziski of Cushman & Wakefield represented the landlord, Onyx Equities, in the lease negotiations. Cresa is designing the space.