SYRACUSE, UTAH — JLL has arranged an equity placement for the Syracuse Medical Office Building development in Syracuse, approximately 30 miles north of Salt Lake City. CJ Kodani and Mark Root of JLL Capital Markets secured the equity through Chesnut Healthcare Real Estate for the developer, Fort Street Partners. Located at 3000 W. Antelope Drive, the 20,399-square-foot medical office building is fully pre-leased by three regional physical groups. Completed is slated for 2025.
DENVER AND AURORA, COLO. — Dalfen Industrial has completed the dispositions of two industrial facilities totaling 150,000 square feet in Denver and Aurora. Acquisition prices were not disclosed for either deal. Denver-based Armstrong Capital Development acquired I-70 Industrial Center, a two-building, 77,222-square-foot light industrial warehouse complex in Denver. CBRE arranged the transaction. Dalfen originally purchased the asset in August 2019. Wanko, a design, engineering and manufacturing firm, purchased Aurora Center I, a 75,000-square-foot, Class A industrial building in Aurora. Built in 2003, the facility features side- and rear-loading options, a fully gated and secured truck court, trailer parking, and additional land on the east side of the building that could be used for additional trailer parking or as a potential 30,000-square-foot building expansion. Cushman & Wakefield executed the transaction.
ENCINITAS, CALIF. — Calbay Development has completed the sale of 1967 San Elijo Ave. in Cardiff-by-the-Sea, a beach community in Encinitas, north of San Diego. Albatross LLC acquired the asset for $3.1 million. Situated on 16,702 square feet, the coastal pad is adjacent to Cardiff Seaside Market Center and across from San Elijo State Beach. Jack in the Box formerly occupied the 1,429-square-foot building, which offers 20 parking spaces. The buyer plans to redevelop the property and occupy the site. Reg Kobzi, Michael Peterson and Joel Wilson of CBRE represented the seller in the deal.
DEERFIELD, ILL. — Walgreens (NASDAQ: WBA) is set to close a significant portion of its store locations across the United States over the next three years. The company is finalizing its “footprint optimization program” after failing to meet earnings expectations in its fiscal third quarter, which ended May 31. Walgreens CEO Tim Wentworth reported in the company’s earnings call on Thursday morning that 25 percent of stores in the United States were not profitable, and that “changes are imminent” for those locations. The retail pharmacy chain currently runs about 8,600 locations in the United States, meaning that as many as 2,150 underperforming stores face potential closure. “We are finalizing a multifactor store footprint optimization program, which we expect will include the closure of a significant portion of these underperforming stores over the next three years,” said Wentworth. “Plans to finalize this number are in motion, and we will update you in due course.” Even among the underperforming stores that will remain open, “we will contemplate additional closures if performance does not improve, which includes external factors, such as reimbursement rates,” said Wentworth. “While it is not an easy decision to close a store, we will work to minimize customer disruptions. …
— By Vanessa Herzog, SIOR, CCIM, Principal, Lee & Associates | Seattle — Industrial markets in the Pacific NW are adjusting to new parameters but remaining steady. Vacancy rates are hovering around 7% in the 6-county region along the I-5 corridor (Arlington to Vancouver, WA). Leasing activity slowed in the first quarter but started picking up as we progress through the second quarter. New construction is active with permitted projects, but the regional project pipeline is diminishing, not due to demand, but due to high land price expectation, stabilized rental rates and continued high costs of new construction. We think this trend will continue well into 2025 leaving Developers and Land Sellers frustrated. Regionally, large land parcels are difficult to find or assemble, leaving Developers looking at infill assemblages, land use changes or full site redevelopment. IOS specialized properties are slowing in demand from Tenants. Finally, we are seeing the small owner user facilities for sale or lease, and the demand from this user group level off. Here are some statistics: Total Inventory at 398M SF, Current Vacancy rate 7% (27.8M SF), Market Asking Rates $1.12/SF/Mo., Sublease Space 20% of total vacancy (5.6 M/SF): New Construction underway 9.9M SF. Demand …
PLANO, TEXAS — North Carolina-based investment firm Bell Partners has acquired Gateway Crossing Apartments, a 831-unit multifamily community in Plano. Built in phases between 2013 and 2017, the property features one-, two- and three-bedroom units with an average size of 950 square feet. According to Apartments.com, amenities include multiple pools, a fitness center, clubhouse, game room, lounge, media center, pet play area, business center and outdoor grilling and dining stations. Daniel Baker of CBRE brokered the sale. The seller and sales price were not disclosed. Bell Partners plans to rebrand the property as Bell Gateway Village.
MIDLOTHIAN, TEXAS — A subsidiary of Specialty Building Products has signed a 550,000-square-foot industrial lease in Midlothian, a southern suburb of Dallas. The metro Atlanta-based building materials provider will occupy a full building at Southern Star Logistics Park, the site of which features dual rail service and 25 acres for outdoor storage. Jim Hazard and Barrett Bufkin of Cresa represented the tenant in the lease negotiations. Kacy Jones, Steve Koldyke and Brian Gilchrist of CBRE represented the landlord, Chicago-based Logistics Property Co., in conjunction with internal agents J.C. Hay and Max Mueller.
CORPUS CHRISTI, TEXAS — Self-storage brokerage firm Versal has arranged the sale of a 306-unit facility in Corpus Christi. The property spans 41,848 net rentable square feet. Bill Bellomy, Michael Johnson, Logan Foster and Hugh Horne of Versal represented the seller, Andover Properties, which operated the facility under its Storage King USA brand, in the transaction. The team also procured the buyer, an undisclosed, publicly traded REIT.
HOUSTON — General contractor Tellepsen Construction is underway on the Center for Biotechnology, a 17,450-square-foot academic project on the campus of San Jacinto College in Houston. Designed by Pfluger Architects, the facility is a laboratory suite with an entry lobby fitted with lockers, a breakroom and workroom for students and staff. Completion is slated for May 2025.
HOUSTON — Colliers has negotiated a 10,533-square-foot industrial lease in Houston. According to LoopNet Inc., the property at 7420 Wynnpark Drive was built in 1967 and totals 49,088 square feet. John Parsley and Jeff Peltier of Colliers represented the tenant, furniture provider Meredith O’Donnell Inc., in the lease negotiations. Boone Smith of Stream Realty Partners represented the undisclosed landlord.
