RICHMOND, IND. — Marcus & Millichap has arranged the $1.7 million sale of a 9,785-square-foot retail center in Richmond, a city in eastern Indiana. UPS and Hoppe Jewelers are tenants at the property, which is located at 3643 National Road East. The building was constructed in 2003 and renovated in 2019 and 2020. Damien Yoder and Madison Harman of Marcus & Millichap’s The Yoder-Harman Group represented the seller, a private investor. During negotiations, a tenant vacated, so the duo helped the seller create a new three-year master lease for the vacancy. They also advised the seller on how to maximize the property’s value by structuring a new five-year lease for Hoppe Jewelers to commence at the close of the sale. Buyer information was not provided.
PHOENIX AND TEMPE, ARIZ. — Capstone Advisors has purchased an urban core retail and entertainment property in Tempe and a flex industrial building in Phoenix. The names of the sellers were not released. Located at 420 and 501 S. Mill Ave. in Tempe, the retail and entertainment property consists of two buildings totaling 38,896 square feet. Capstone paid $22.2 million for the asset. At the time of sale, the property was fully occupied. Current tenants include Starbucks Coffee, Spinelli’s Pizza, Lotions & Potions, Bang Bang, Crispy Cones, Varsity Tavern, Rodeo Ranch and Low Key Piano Bar. In the second transaction, Capstone acquired a flex industrial building located at 16402 N. 28th Ave. in Phoenix for $5.8 million. Currently, the 51,680-square-foot building is used as a temperature-controlled, drop-ceiling office occupied by Kemper Insurance. Capstone plans to convert the building back to industrial use as soon as Kemper’s lease expires.
DENVER — Hunt Capital Partners (HCP), in collaboration with faith-based developer Mile High Ministries (MHM), has opened Clara Brown Commons, a four-story, 61- unit affordable multifamily property in Denver’s Cole neighborhood. Located at 3701 York St., Clara Brown Commons comprises 14 one-bedroom/one-bath, 28 two-bedroom/two-bath and 19 three-bedroom/two-bath apartments for low-income families earning up to 20 to 80 percent of the area median income. Apartments feature full-size refrigerators/freezers, electric ranges with recirculating hood, dishwashers, washers/dryers, ceiling fans and coat closets. Community amenities include a conference room, fitness room, children’s playroom, bike storage, mail area, sunroom, balcony and roof patio. Financing for the project included a tax-exempt $15.9 million construction loan and a tax-exempt $6.4 million construction-to-permanent loan, both provided by Pacific Western Bank. MHM provided a $6 million loan, composed of $1.8 million in City of Denver HOME funds, $1.5 million in Colorado Division of Housing HOME funds and $2.7 million in sponsor capital campaign funds. Completion of Clara Brown Commons is the first step of a three-stage plan to enrich the Cole neighborhood in northern Denver. Seventeen Habitat for Humanity townhomes adjacent to the apartment complex will open by end of January. Future phases will provide additional space for community …
GRAND JUNCTION AND PALISADE, COLO. — DXD Capital, a New Mexico-based self-storage private equity firm, has acquired a Hill & Homes Self-Storage portfolio featuring seven properties spread across Colorado’s western slope. A local private owner and developer sold the portfolio for an undisclosed price. Totaling 135,050 square feet, the portfolio features 922 units all managed from a central office. All locations have perimeter fences, remote-accessed security camera and gates. The facilities are located at 2222 Sandford Drive, 2462 Highway 6 and 50, 2693 Highway 50, 1462 Colorado Ave., 2787 Printer’s Court and 3170 Pipe Court in Grand Junction and 340 W. 3rd St. in Palisade. Thomas Parsons and Adam Schlosser of the LeClair-Schlosser Group of Marcus & Millichap represented the seller and procured the buyer in the deal.
DENVER — Colliers Mortgage has provided a Fannie Mae loan for the refinancing of The Everett, a market-rate multifamily property in Denver. Built in 2022, The Everett features 33 studio units with a loft floor, providing separation for bedroom and living areas. Other unit amenities include stainless steel appliances, dishwashers and in-unit washers/dryers. Ray Picone of Colliers’ Denver office secured the five-year loan for the borrower, The Everett LLC. The size of the loan was not disclosed.
NEW YORK CITY — Global luxury group Kering has acquired a multi-level retail property at 715-717 Fifth Ave. in New York City for $963 million. The Paris-based company manages the development of a number of major fashion houses including Gucci, Saint Laurent, Balenciaga and Alexander McQueen. The 115,000-square-foot space spans multiple levels at the base of the Corning Glass Building, a 28-story office tower developed in 1959. Rival fashion houses Dolce & Gabbana and Armani currently occupy the space. The Armani lease at the property is up in a few months, according to reports by the New York Post. Real estate developer Jeff Sutton’s Wharton Properties sold the space. The company also recently sold 720 and 724 Fifth Ave. to fashion house Prada for a combined $835 million. Eastdil Secured advised Wharton Properties in all three deals, according to the New York Post. Any potential impact on the space’s current tenants was not specified. Plans to maintain Gucci’s current flagship location across the street from 715-717 Fifth Ave. at Trump Tower were not mentioned in Kering’s release. Manhattan’s Fifth Avenue ranked as the world’s most expensive retail destination in Cushman & Wakefield’s latest Main Streets Across the World report. With …
— By Jeff Lefko, Executive Vice President, Hanley Investment Group Real Estate Advisors — Hanley Investment Group is expanding and opening its newest office in San Diego in early 2024. San Diego, the eighth most populous city and the fifth largest county in the United States, ranks second only to Los Angeles County in California, boasting a population nearing 3.28 million. With a substantial GDP of $206 billion, San Diego holds the 17th largest metropolitan area position in the U.S. and the fourth largest in California. The city’s economy thrives on defense, tourism, international trade and research/manufacturing sectors. Notably, in 2022, San Diego experienced an 8 percent growth in life science employment, reinforcing its position as a premier life science research destination. Attracting 28.8 million annual visitors, it stands as a prominent U.S. travel destination, generating approximately $13.6 billion in yearly spending and employing 214,000 San Diegans directly and indirectly. San Diego’s robust economy, diverse population, quality education, and prime location render it a desirable hub for commercial retail investment. The business-friendly climate further enhances its allure, while the limited supply of new retail construction helps maintain stable real estate fundamentals. The changing economy and rising interest rates have caused …
With high operating costs eroding profitability at many urban stores, major retailers are concentrating development and store renovations in suburban locations with layouts geared to the latest consumer preferences. As more retailers follow suit, early adopters provide object lessons in best practices to better serve an evolving customer base and reveal pitfalls to avoid along the way. “Retailers are more sensitive to the pressures of high costs and loss prevention in urban markets, and as a result, they are backing off in those areas,” says Cornelius Brown, a principal and regional manager in the Philadelphia office of Bohler. “Retailers looking to grow, in our experience, are shifting to the suburbs and using retail program methods to cut costs.” Bohler is a land development design and consulting firm that helps developers move their projects forward quickly. Recently, those clients have been keen to avoid risk in both site selection and design features, Brown says. Streamlining Retail Development Retail programs allow developers to use pre-existing retail layout prototypes to determine optimal site arrangements. This approach uses checklists to assign one of several pre-made layouts to a development based on factors such as road location, grading and elevation, parking needs, drive-through layout, loading …
Confluent Development, Ascentris Buy 161,000 SF ParkRidge Six Office Building in Lone Tree, Colorado
LONE PINE, COLO. — A joint venture between Confluent Development and Denver-based Ascentris has acquired ParkRidge Six, a five-story, Class A office building in Lone Tree, approximately 15 miles south of Denver. Terms of the transaction were not released. At the time of sale, the 161,000-square-foot building was fully leased. The property features a generous parking ratio, a third-party-operated cafeteria, large-format training rooms, a fitness center, small breakout rooms and outdoor amenity space. This acquisition is the first collaboration between Confluent Development and Ascentris. CBRE facilitated the acquisition.
PORT ST. LUCIE, FLA. — Big-box wholesale retail giant Costco and St. Louis-based development firm Sansone Group have teamed up to purchase 192 acres within Legacy Park at Tradition, a 425-acre industrial park in Port St. Lucie. The companies plan to develop a 595,000-square-foot depot facility at the site. Costco has industrial development rights to expand its project up to 1.9 million square feet. Other Sansone-developed projects at Legacy Park at Tradition include build-to-suit facilities for FedEx Ground and Amazon, as well as two speculative facilities. The developer is also in the planning stages of another spec facility and a cold storage property within the park. The project team for the Costco development includes engineer Culpepper & Terpening, legal counsel Husch Blackwell, the City of Port St. Lucie and Robert Smith and Kirk Nelson at CBRE. The construction timeline was not disclosed.