SIOUX FALLS AND BROOKINGS, S.D. — Upland Real Estate Group has arranged the sale of two properties net leased to Arby’s in South Dakota for an undisclosed price. The buildings are located in Sioux Falls and Brookings. Arby’s has 20-year leases with 5 percent rent increases every five years on both properties. The tenant on the leases, DRM Inc., is one of the largest Arby’s franchisees and operates 109 Arby’s locations in seven Midwest states. Deborah Vannelli, Keith Sturm and Amanda Leathers of Upland represented the undisclosed seller. Both properties sold to cash buyers completing 1031 exchanges.
NEW YORK CITY — Locally based brokerage firm Ariel Property Advisors has negotiated the $4.5 million sale of a 39,130-square-foot multifamily development site in the Bedford Park area of The Bronx. The site at 3165 Villa Ave. is approved for up to 57 units of residential development. Victor Sozio, Benjamin Vago, Daniel Mahfar and Jason Gold of Ariel Property Advisors brokered the deal. The buyer and seller were not disclosed.
ATLANTA — Shortened attention spans and the desire for instant gratification are a couple of the changing consumer behaviors that impact the multifamily operations industry. Karen Key, a president with Houston-based Asset Living, said that 75 percent of consumers expect a response time in less than 24 hours from a business. Twenty percent expect a response time within minutes. “If you’re missing that mark and someone else is responding to them, whether it’s a client, prospect or resident, you’ve lost them. They’re gone.” Key’s remarks came during the operations panel at the 2023 InterFace Multifamily Southeast conference, which took place Thursday, Nov. 30 in Atlanta. France Media and Southeast Real Estate Business hosted the event at the Westin Buckhead hotel. Ed Wolff, president of California-based LeaseLock, moderated the panel, which was entitled “What’s Changed and What’s Not Changed in Terms of Occupancy, Rental Rates and Operations?” Key emphasized that many of these changes resulted from the COVID-19 pandemic. “When the pandemic happened, everyone got spoiled in terms of having everything at their fingertips. They were tied to a computer all day every day,” she said. As such, Asset Living’s use of social media as an advertising tool increased significantly ever …
— By Jason DuFault, Regional Managing Director – Southern California, KW Commercial — With a population of about 440,000, the City of Long Beach has grown substantially over the past two decades. This is due, in part, to the draw of its coastal location, public spaces, dining and nightlife, employment, the ports of Los Angeles and Long Beach, and its many tourist attractions, including the Queen Mary and the Aquarium of the Pacific. This all bodes well for the retail sector. However, over the past 18 months, the retail market has been inconsistent for success based on location. The city’s overall vacancy rate is currently around 4.3 percent, with the most challenged market being downtown Long Beach, which is currently at 4.6 percent. While the vacancy is still low by most standards, I believe it will likely increase before it gets better. Like many CBDs across the nation, Long Beach’s office vacancy has been high. The decline in the daytime population has retailers struggling. The most challenging projects to rent out retail-wise seem to be the newer vintage mixed-use properties. On the other hand, smaller submarkets in east Long Beach, such as Second Street and Naples, have been strong, giving …
FLAGSTAFF, ARIZ. — TSB Realty has arranged the sale of Elara at The Sawmill, an 804-bed student housing community located near the Northern Arizona University campus in Flagstaff. TSB represented the seller, a partnership between McGrath Real Estate Partners and Kayne Anderson Real Estate, in the disposition of the property to an undisclosed buyer. TSB Capital Advisors consulted on the buyer’s joint venture partnership and secured acquisition financing for the transaction. Built in 2022, the community offers studio through four-bedroom units. Shared amenities include a resort-style swimming pool, jumbotron, grilling pavilion, fitness center, private and group study lounges, a pet wash station and an outdoor bouldering rock. “We’re proud to get this deal over the finish line before the end of the year, especially in the current market environment,” says Timothy Bradley, a principal with TSB Realty and founder of TSB Capital Advisors. “As the newest purpose-built property in a very high-barrier-to-entry market, with a top-of-the-line amenities package, 99 percent occupancy and impressive rent growth, Elara is an excellent addition to the buyer’s portfolio.”
SANTA ANA, CALIF. — Tabani Group has acquired Bristol Marketplace, a retail property located at 1351 W. 17th St. in the Orange County city of Santa Ana. An undisclosed seller sold the asset for $16.7 million. The 107,687-square-foot plaza comprises a two-story, 99,751-square-foot former Kohl’s and adjacent shop space. The buyer plans to reposition the vacant box space. Gleb Lvovich, Daniel Tyner, Geoff Tranchina and Conor Quinn of JLL Capital Markets Investment Sales Advisory represented the seller in the deal.
BELLEVUE, WASH. — Veritas Investments Los Angeles (VILA) has purchased Bellefield Major, a multifamily property located in downtown Bellevue, for $16.1 million. VILA plans to make cosmetic upgrades to the value-add property, which has already undergone extensive interior and exterior renovations over the past decade. Dan Chhan, Tim McKay, San Wayne and Matt Kemper of Cushman & Wakefield represented the seller, a local family investor, in the transaction. Located at 1830 108th Ave. SE, Bellefield Manor features 44 apartments and is situated within a half-mile of the new Sound Transit South Bellevue light rail station, which is slated to open in spring 2025.
SAN ANTONIO — Artemis Real Estate Partners has purchased Franklin Park Alamo Heights, a 221-unit seniors housing community in San Antonio. Artemis is taking over as equity partner for Chicago-based Harrison Street while retaining Franklin Park as part owner in the joint venture. Franklin Park Alamo Heights features 117 independent living units, 64 assisted living units and 40 memory care units. Richard Swartz, Jay Wagner, Jim Dooley and Jack Griffin of JLL arranged the recapitalization of the property. Allison Holland, also with JLL, arranged a Freddie Mac loan for the new ownership entity. Neither the price nor the amount of the financing were disclosed.
GARLAND, TEXAS — Palladium USA is nearing completion of Embree Eastside, a 107-unit mixed-income housing community in Garland, a northeastern suburb of Dallas. About a quarter of the units will be rented at market rates, while the remainder will be reserved for renters earning between 30 and 60 percent of the area median income (AMI). Amenities will include a pool, dog park, walking trails, fitness center, conference room, computer lab and a kids’ playroom. HEDK is the project architect. General contractor Brownstone Construction is teaming up with Garland Housing Finance Corp. on construction. PNC Bank provided both equity ($13.7 million) and debt ($11.2 million) for the project. The first units are scheduled to come on line in the first quarter of next year.
BEAVERTON, ORE. — BKM Capital Partners has acquired 217 Distribution Center, a five-building industrial park in Beaverton, from an institutional investor for an undisclosed price. The 1970s-era property is located at 10950-11065 SW 11th St. Totaling 451,062 square feet, the asset features 13 units ranging in size from 9,945 square feet to 67,459 square feet. The park offers 68 dual dock-high and 12 grade-level loading capabilities, up to 24-foot clear heights and access to 14 railway dock doors. Less than 9 percent of the asset’s total footprint consists of office space. BKM plans to invest $4 million in capital improvements, including upgrading to roofs, parking lots, landscaping, HVAC systems and interiors, as well as updates to the signage and paint scheme. Additionally, improvement plans call for increasing the number of units from 13 to 15 and decreasing the average unit size from 34,697 square feet to 29,975 square feet.