FARMERS BRANCH, TEXAS — Lee & Associates has negotiated a 46,104-square-foot industrial lease at 14275 Welch Road in the northern Dallas metro of Farmers Branch. Adam Graham of Lee & Associates represented the tenant, Missouri-based Don Smith & Associates, in the lease negotiations. Barry Stokes of Exeter Property Group represented the landlord, Finlayson Logistic Assets LLC.
BRIDGETON, MO. — US Capital Development has broken ground on an engineering and light manufacturing facility for Leonardo DRS Inc. in Bridgeton. The $32 million build-to-suit project will accommodate the company’s growing land systems line of business. The company is a defense contractor that integrates a wide range of systems for the U.S. Army, Air Force and Marine Corps. This includes a variety of systems in ground vehicles, including recon and surveillance, mission support, vehicle survivability and lethality. Brinkmann Constructors is serving as the general contractor for the 171,500-square-foot facility. Completion is slated for early 2020.
ELK GROVE VILLAGE, ILL. — Cawley Chicago has arranged the sale of a 31,059-square-foot industrial building in Elk Grove Village for an undisclosed price. The property is located at 1001 Fargo Ave. Andrew Maletich of Cawley Chicago represented the buyer. Sam Durkin of JLL represented the seller.
DALLAS — Colony Industrial has sold a light industrial portfolio spanning 2.3 million square feet across four states for $136 million. Nuveen Real Estate, a subsidiary of TIAA, purchased the properties. The sale includes 18 buildings in Atlanta, five in Dallas, five in Houston and six buildings spread across Pennsylvania and New Jersey. CBRE National Partners represented Dallas-based Colony Industrial in the sale. Colony Industrial is the industrial platform of Colony Capital Inc. (NYSE: CLNY), a real estate investment firm with $44 billion of assets under management. “We’ve owned and operated these assets for some time and the portfolio value had achieved Colony Industrial’s targets,” says Lew Friedland, managing director at Colony Capital and head of Colony Industrial. “We reevaluate the portfolio as opportunities arise, and this sale to Nuveen enables us to rebalance our property mix to align with our long-term strategic plans.” Nuveen is an investment manager that maintains its international headquarters in New York. — Kristin Hiller
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TD Bank: Construction Delays have Bolstered the Multifamily Market
It may sound counterintuitive, but Gregg Gerken, head of U.S. commercial real estate at TD Bank, believes some of the challenges the multifamily development market has faced have actually benefited the market. He specifically references labor shortages and construction delays. There were concerns in some areas that too much product might come online too fast, hampering absorption and rent growth. But the recent speedbumps have allowed the pipeline to even out a bit, staggering the delivery of new units and preventing overbuilding. Demand still outpaces supply in many markets, which has led to average vacancy rates of around 5 percent and healthy rent growth. Both developers and renters can look forward to new product delivering at a steady pace in 2019. Watch the video to hear takeaways from MBA CREF and 2019 predictions from Gerken.
MIAMI — Avison Young has arranged two leases totaling 184,718 square feet. within Dolphin Commerce Center in Miami. Roca Tile USA signed a 134,383-square-foot lease renewal and expansion, adding 25,745 square feet to its footprint within the business park. FastKit Corp., a custom packing and printing company, renewed its 50,335-square-foot lease. Dolphin Commerce Center spans 750,000 square feet about 15 miles west of downtown Miami and about 10 miles west of Miami International Airport.
KILGORE, TEXAS — HFF has brokered the sale of a 550,000-square-foot distribution center leased to Orgill, the world’s largest independent hardware distributor, in the eastern Texas city of Kilgore. Built in 2007 on 65.2 acres, the property is currently being expanded by almost 329,000 square feet with completion expected in mid-2019. Adam Herrin and Stephen Bailey of HFF represented the seller, Elysian Partners LLC, in the transaction.
CARROLLTON, TEXAS — Lee & Associates has negotiated a 55,232-square-foot industrial lease at 2080 McDaniel Drive in the northern Dallas metro of Carrollton. Nathan Denton of Lee & Associates represented the tenant, Buzzballz, a provider of alcoholic beverages, in the lease negotiations. Gil Stroube and Michael Peinado of Lincoln Property Co. represented the landlord, Prologis.
WOODINVILLE, WASH. — Locally based Park Row LLC has purchased The Park at Woodinville, a Class A industrial park located at 14103 NE 200th St. in Woodinville, a suburb approximately 20 miles northwest of Seattle. Newport Beach, Calif.-based KBS sold the property for $47.2 million, or $197 per square foot, in an off-market transaction. Todd Gauthier and Jason Bloom of Kidder Mathews represented the buyer in the deal. The five-building, 239,607-square-foot industrial park features a café/deli, loading docks and outdoor patios.
FREMONT, CALIF. — Talonvest Capital has arranged a $22.4 million bridge loan for CIP Real Estate for the purchase of Fremont Business Center, a flex business park located in Fremont. The four-year non-recourse bank loan will finance up to 68 percent of total project costs, including future funding for capital improvements and leasing costs. Fremont Business Center consists of five research-and-development buildings totaling 148,926 square feet of space. The property features suites ranging in size from 5,736 square feet to 28,391 square feet. Erich Pryor, Tom Sherlock and Eric Snyder of Talonvest Capital secured the financing.