UTAH — CFG, a subsidiary of CFG Bank, has provided $16.3 million in bridge-to-HUD financing for the acquisition of two skilled nursing facilities. The properies, which are in Utah, support a total of 220 beds. The deal allowed the undisclosed borrower to expand its footprint into a new state. Further details were not disclosed. Tommy Dillon of CFG originated the transaction.
LOS ANGELES — Big Sunday, a nonprofit committed to helping others through service projects and giving opportunities, has purchased an office building located at 1741 N. Cherokee Ave. in the Hollywood neighborhood of Los Angeles. Los Angeles Beautification Team, a nonprofit dedicated to resource conversations and community improvement, sold the asset for $5.4 million. Big Sunday plans to use the 6,743-square-foot asset as its headquarters, with move-in scheduled for April. Gruen Associates designed the property, which opened in 2021. The building offers up to 18-foot clear heights with multiple offices and a large training room, as well as 7,000 square feet of landscaped outdoor green space. Nicole Mihalka and Cal Ross of JLL, along with the Kenny Stevens team at Compass, represented the seller in the deal.
BONNER SPRINGS, KAN. — Mattel Inc. (NASDAQ: MAT), through a licensing partnership with Epic Resort Destinations, has unveiled plans for a second Mattel Adventure Park location. The entertainment resort destination will be located in Bonner Springs, Kan., and is set to open in 2026. Construction is expected to begin later this year. Mattel Adventure Park Kansas City will offer the attractions of Mattel Adventure Park Glendale, Ariz., including Hot Wheels roller coasters. Thomas & Friends: World of Sodor will include five family-friendly experiential attractions and rides, including a dedicated indoor play space. The Kansas City park will also be home to the larger-than-life Barbie Beach House. The attraction also includes a Barbie-themed flying theater and The Barbie Rooftop restaurant and bar. There will also be a laser tag arena and a mini golf experience.
CINCINNATI — The Kroger Co. (NYSE: KR) has entered into a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health. The Cincinnati-based retailer’s serves patients with chronic illness that requires complex care. Clinicians and therapy programs allow patients and prescribers to benefit from education and resources, counseling, side effect management, financial assistance, personalized care and administrative expertise. The specialty pharmacy business supports patients facing diseases including rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. Kroger Specialty Pharmacy is separate from other Kroger Family of Pharmacies, including in-store retail pharmacies and The Little Clinics. Therefore, in-store retail pharmacies and The Little Clinics are not included in this transaction. The deal is subject to customary closing conditions and is expected to close in the second half of 2024. RBC Capital Markets LLC is serving as financial advisor, and Weil, Gotshal & Manges LLP and Arnold & Porter Kaye Scholer LLP are serving as legal advisors to Kroger.
SHAWNEE, KAN. — Diversified Commercial Capital has arranged a $6.6 million acquisition and improvement loan for an 80,403-square-foot property occupied by Rush Funplex in Shawnee. The family entertainment center is located within a multi-tenant retail center along the Shawnee Mission Parkway. Diversified arranged the fixed-rate, five-year loan on behalf of the undisclosed borrower through a regional lender.
GREENFIELD, WIS. — Founders 3 Real Estate Services has brokered the $1.7 million sale of a 21,848-square-foot flex industrial facility in Greenfield, a southern suburb of Milwaukee. The property is located at 3442 S. 103rd St. Derek Yentz of Founders 3 represented the seller, Progressive Casualty Insurance Co. The buyer was an entity doing business as SAM-Progressive LLC.
LANSING, MICH. — Strategic Foods, doing business as Carrie’s Kitchen, has signed a 4,040-square-foot retail lease in Lansing. Carrie’s Kitchen, a soul food restaurant, will take the space formerly home to Wing Heaven Sports. Zach Burk and Bill McLeod of Gerdom Realty & Investment represented the tenant in the lease. Scott Adams of NAI Mid-Michigan represented the undisclosed landlord.
LOS ANGELES— The Star LLC has submitted revised design plans for The Star, a proposed $1 billion office campus at 6061 W. Sunset Blvd. in the Hollywood neighborhood of Los Angeles. The development firm, led by local investor and developer Maggie Miracle, first submitted a proposal for the project in 2021 with renderings designed by Chinese architecture firm MAD Architects. The initial concept held a $500 million price tag. The original design was ultimately scrapped by Miracle to incorporate garden-like outdoor spaces, which she believes have become increasingly attractive to office tenants following the COVID-19 pandemic, according to reports by the Los Angeles Times. Updated plans for the project, which doubles down on the initial investment price, were designed by Foster + Partners and include a 22-story, cylindrical tower with a spiral of external gardens rising from the street level. The development will offer spacious floor plates and floor-to-ceiling windows offering unobstructed views of downtown Los Angeles, the Hollywood Sign and Pacific Ocean. Each floor will feature a series of external shaded and landscaped social garden terraces designed by SALT Landscape Architects. Plans for the project — which will target WELL and LEED certifications — also include a rooftop restaurant …
By Brad Belden, Colliers Now that the final numbers are in for 2023, we can undoubtedly say that the worst of COVID is behind us in the world of retail leasing. 2023 saw increased rental rates, longer-term deals and record low vacancy rates across the nation. It’s great news; retail is not dead and it could even be argued that it’s never been busier. But it’s also… different. On average, leases are shrinking and how space is used is changing. And demand, coupled with customers’ increased desire to visit evolving concepts, is making for another busy year ahead for this segment of the industry. So far, 2024 is off to a great start and this year’s trends are already taking form. On the consumer side, a significant shift back to bricks-and-mortar retail is already underway as consumers seek to connect with retailers again and make shopping an “experience.” On the retailer side, two factors are driving change: the emergence of AI, which is allowing many retailers to analyze and customize the customer experience while improving operations behind the scenes to boost sales (regardless of the tenant type, retail tenants in Chicago and across the U.S. have one thing in common: …
Developers and owners of net lease properties have been used to receiving high prices for their assets — fueled by low debt costs for buyers — over the past decade. With rising interest rates, that has changed. Cap rates have been rising and capital is harder to obtain, be it for new net lease development or acquisition of existing assets. That has narrowed the demand, resulting in a lower sales volume over the past year. The volume of single-tenant net lease investment sales was down about 34 percent in 2023 compared to 2022, according to Northmarq’s fourth-quarter 2023 Market Snapshot for Single-Tenant Retail. The average cap rate, meanwhile, rose from 5.62 percent in 2022 to 6.14 percent in 2023. Development of new single-tenant net lease deals is stymied by access to capital, with many regional banks — the lifeline of small developers — on the sidelines. Shopping Center Business interviewed a number of executives in the net lease sector, and studied research from leading firms for our annual overview of the single-tenant net lease property sector. Dealflow and Trends While deal velocity is down, deals are still happening. Today, deals are much more individualized, and both parties usually have to …