NEW YORK CITY — JLL has negotiated the $6 million sale of an 11-unit apartment building located at 169 Mulberry St. in Manhattan’s Little Italy neighborhood. According to StreetEasy, the building, which includes a single retail space that is occupied by an Italian restaurant, was originally constructed in 1914 and rises six stories. Hall Oster, Teddy Galligan and Guthrie Garvin of JLL represented the seller and procured the buyer, both of which were private investors that requested anonymity, in the transaction.
CHICAGO — Interra Realty has brokered the sale of a 60-unit apartment building in Chicago’s Lakeview East neighborhood for $17.5 million. Located at 528 W. Oakdale Ave., the building includes 20 studios, 36 one-bedroom units and four two-bedroom units. Constructed in 1970, the property has undergone a full modernization over the past 18 months that added new finishes and upgrades to amenity spaces, including a fitness center, package room, additional laundry room and outdoor seating. Craig Martin and Joe Smazal of Interra represented the buyer, Beal Properties, and the seller, Horizon Realty Group.
INDIANAPOLIS — Government Investment Partners (GIP) has acquired three office and retail buildings located near Monument Circle in downtown Indianapolis for roughly $14 million. The adjacent properties are located at 2 N. Meridian St., 20 W. Washington St. and 24 W. Washington St. The primary tenant is the Indiana Department of Health, which recently signed a 10-year lease extension for the entire 161,400 square feet of office space across all three buildings for its headquarters. The ground-floor retail space is leased to Bank of America, T-Mobile and Taco Bell Cantina, which recently signed a 2,860-square-foot lease to occupy the former Sugarfire Smokhouse space. There is 12,000 square feet of available retail and restaurant space, including the former homes of Rock Bottom Brewery and Pearings Café. Alex Cantu, Alex Davenport and Rachel Patten of Colliers represented the sellers, Two North Meridian Co. and John Goodman. Goodman will have a continued role with the properties as a consultant to GIP. Founded in 2016, GIP is a real estate investment, development and management firm specializing in properties leased to federal, state and local government entities. The firm’s portfolio now totals more than 30 buildings in 18 states.
MINNEAPOLIS — Lupe Development Partners and Wall Cos. are planning to demolish the former Minneapolis Public Works storage building at 3501 E. 44th St. The developers plan to build a 90-unit affordable housing building in its place. The project is still pending final approval from the Minneapolis City Council, but construction is expected to begin in spring 2024 if the remaining financing is secured. Named Snelling Yards, the community will feature three- and four-bedroom units. Of the total units, 26 will be reserved for residents who earn up to 30 percent of the area median income (AMI) and 39 will be reserved for those who earn up to 50 percent AMI. Additionally, 13 units will be designated for veterans experiencing homelessness. Snelling Yards is a joint venture with Ecumen, which owns the adjacent 100-unit affordable seniors housing development, The Hillock. Lupe and Wall were granted development rights to the property in 2017. The project has received more than $2 million from the City of Minneapolis Affordable Housing Trust Fund and another $1.2 million from Hennepin County’s Affordable Housing Incentives Fund and Environmental Response Fund. The project is currently advancing through the Metropolitan Council’s Livable Communities Demonstration Account grant process.
FAIRFIELD, OHIO — NorthPoint Development is underway on Fairfield Trade Center in Fairfield, about 25 miles north of Cincinnati. The project comprises two buildings totaling 304,364 square feet and 313,833 square feet, respectively. Completion is slated for the second quarter of 2024. Doug Whitten of CBRE is handling leasing of the development, which is situated in proximity to major transportation arteries.
SOMERS, WIS. — Marcus & Millichap has arranged the $2.3 million sale of a 2,361-square-foot retail property occupied by Chipotle in Somers, a southern suburb of Milwaukee. Constructed this year, the net-leased building is located at 3671 Market Lane and features a 400-square-foot patio as well as a drive-thru. Nicholas Kanich of Marcus & Millichap represented the seller, a development group based in Wisconsin. The asset sold to a Minnesota-based buyer completing a 1031 exchange.
PHILADELPHIA — Hilco Redevelopment Partners (HRP) has broken ground on the first phase of The Bellwether District, a redevelopment project encompassing 1,300 acres in South Philadelphia. The project will transform the former Philadelphia Energy Solutions refinery into a state-of-the-art innovation, e-commerce and logistics campus. Demolition of the obsolete industrial site is now substantially complete. The redevelopment will be a 14 million-square-foot campus divided into two areas: 250 acres dedicated to innovation and 750 acres for industrial and logistics facilities. HRP expects The Bellwether District to augment the life sciences and research infrastructure in nearby University City and to bring supply chain logistics and advanced manufacturing to the site, which is located near Philadelphia International Airport and The Port of Philadelphia. “When our team arrived here in Philadelphia, we did not see a former refinery — we saw what I believe to be the most strategic piece of real estate east of the Mississippi, if not in the entire United States,” says Roberto Perez, CEO of HRP. HRP projects that the development of The Bellwether District will create 19,000 direct permanent jobs and nearly 28,000 direct construction jobs over a 10- to 15-year timeline. The groundbreaking marks the first phase of …
The effects of sweeping macroeconomic forces in recent years are now manifesting themselves in industrial projects in Dallas-Fort Worth (DFW). And while the market still enjoys healthy fundamentals and tenant demand, the product being delivered now comes with a new look, functionality and set of requirements from end users. To some degree, this paradigm shift in how industrial properties are conceived, designed and constructed stems from major economic factors and trends that are beyond the ability of architects, contractors and developers to control. To start with the obvious, interest rates are now five times what they were 18 months ago. When hikes of that magnitude are enacted so expeditiously, real estate professionals of all walks are impacted, even if it’s in an indirect manner. “Demand for industrial space is there; if developers are building, the rents are probably there to cover those costs,” says Mike Williams, vice president of preconstruction at Dallas-based Talley Riggins Construction Group. “But for developers that are trying to form a team to get enough equity to get a loan — those deals aren’t working anymore with these rates. So paying extra close attention to who your clients are and their funding sources has been the …
COMMERCE, CALIF. — A Dedeaux Properties entity has acquired a distribution facility in the Los Angeles suburb of Commerce. 99 Cents Only Stores sold the asset for $190 million in a sale-leaseback transaction. Situated on 24 acres at 4000 Union Pacific Ave. and 4040 Noakes Ave., the asset features 882,000 square feet of distribution space. The property is immediately adjacent to the Hobart Intermodal Railyard and located within a gated and guarded campus. Jack Cline of Lee & Associates, in collaboration with Eastdil Secured, facilitated the sale.
AZUSA, CALIF. — JLL Capital Markets has arranged $84 million in post-close acquisition financing for Azusa Industrial Center in Azusa, approximately 20 miles east of Los Angeles. The borrower was IDS Real Estate Group. Built between 1986 and 1987, the three-building, 432,500-square-foot asset is fully leased to four tenants. Spanning 23.6 acres, the property features a total of 73 dock doors, seven grade-level doors, truck courts ranging from 130 feet to 160 feet and clear heights ranging from 24 feet to 30 feet. Matt Stewart, Ace Sudah and Daniel Skerrett of JLL Capital Markets secured the four-year, floating-rate loan through PGIM Real Estate’s debt fund focused on transitional bridge lending. Jace Bertegs led the PGIM Real Estate team.