BREA, CALIF. — Wood Investments Cos. has signed UFC GYM to open within a 30,000-square-foot retail property formerly occupied by Tower Records in Brea, roughly 30 miles southeast of Los Angeles. Scheduled to open in the third quarter of this year, UFC GYM will fully occupy the two-story, single-tenant building. Jim Manarino and Tracey Zimmerman of Manarino & Associates represented Wood Investments in the leasing negotiation.
JERSEY CITY, N.J. — CBRE has negotiated an 80,000-square-foot industrial lease within HRP Hudson Logistics Park in Jersey City. The 86-acre park is a redevelopment of a former coal-fired power plant. Kevin Dudley and Nicholas Klacik of CBRE represented the tenant, global logistics firm D.B. Schenker, in the lease negotiations. David Knee, Chris Hile and Ryan Milanik of JLL represented the landlord, Hilco Redevelopment Partners.
BROCKTON, MASS. — Urban Air Adventure Park, an entertainment concept centered on trampolines, has signed a 52,900-square-foot retail lease in the southern Boston suburb of Brockton. The freestanding building sits on four acres across the street from Westgate Mall. Rob Robledo and John Ferris of CBRE represented the landlord, locally based investment firm The Bulfinch Cos., in the lease negotiations. The opening is slated for spring 2024.
NEW YORK CITY — Global Holdings Management Group has acquired a 57-unit apartment building located at 51 Irving Place in Manhattan. The location offers immediate proximity to the Gramercy Park and Union Square neighborhoods. Built in 1969, the six-story building features studio, one- and two-bedroom units as well as 8,000 square feet of retail space. The seller and sales price were not disclosed.
DARLINGTON, WIS. — Kraus-Anderson will soon break ground on Memorial Hospital of Lafayette County, a $64.8 million replacement hospital and clinic building in Darlington, a city in Southwest Wisconsin. The current facility has provided a full range of acute care inpatient and outpatient services since 1952. Designed by Eppstein Uhen Architects, the 80,000-square-foot hospital will feature a new emergency department, diagnostic imaging, surgical services with two operating rooms, a procedure room, medical and surgical unit, pharmacy, rehabilitation and a vision clinic with a retail eye shop. The project will also include space for behavioral health and mindfulness sessions as well as a 3,600-square-foot standalone building that will house two residency units and a garage for maintenance storage. The project received various loans, all of which will be paid for by the proceeds of the hospital. The project was also awarded $14 million in additional grant funds. Completion is slated for fall 2024. The current facility will remain in operation during construction.
MERRIAM, KAN. — Berkadia has arranged the sale of Georgetown Apartments in Merriam, a southwest suburb of Kansas City. The sales price was undisclosed. The 395-unit apartment community is situated on 33 acres at 7200 Eby Drive. The property was built in 1965, according to Apartments.com. Amenities include a pub room, billiards room, fitness center, indoor and outdoor swimming pools, a clubhouse, event space and laundry facilities. Pete Evans, Michael Spero and Kevin Jury of Berkadia represented the seller, New York-based Malkin Properties, and the buyer, Illinois-based Artisan Capital Group. John Schorgl of Berkadia structured a five-year acquisition loan through Freddie Mac.
OHIO AND MICHIGAN — Marcus & Millichap has brokered the $10 million sale-leaseback of a three-property industrial portfolio in Ohio and Michigan. The tenant is WW Williams, a truck and diesel engine maintenance and repair company. The properties are located in Cleveland and Brunswick, Ohio, as well as Dearborn, Mich. Alex Frankel, Chris Lind and Mark Ruble of Marcus & Millichap represented the seller and procured the buyer, a limited liability company.
ENGLEWOOD, OHIO — Red Oak Capital Holdings LLC has provided a $5.5 million bridge loan for the acquisition and conversion of a former Kmart store in Englewood, a northwest suburb of Dayton. The borrower, United Storage 360 LLC, plans to convert the property into an Extra Space Storage-branded facility. The site includes an 85,000-square-foot building that was constructed in 1975. Redevelopment plans call for a 60,000-square-foot self-storage facility with 546 units. The borrower plans to exit Red Oak’s bridge loan with permanent financing or a sale following completion of renovations, which are scheduled for later this year.
NAPERVILLE, ILL. — Eaglestone Manufacturing has signed an 85,608-square-foot industrial sublease at 1560 Fronternac Road in the Chicago suburb of Naperville. Eaglestone is a manufacturer of production line equipment such as conveyor belts and sorting systems. The property was constructed in 1988 and features a newly renovated 4,500-square-foot office space as well as a clear height of 22 feet, six interior docks, two drive-in doors and ample parking. Eaglestone expects to take occupancy in the fourth quarter. Mandy Lewandowski and Luke Ferzacca of DarwinPW Realty/CORFAC International represented the undisclosed sublessor. Nick Eboli and Andrew Block of Lee & Associates represented Eaglestone.
By Jeff Enck, senior vice president, SRS Real Estate Partners Throughout the world of retail investment sales, reality is setting in. Buyers and sellers of unanchored retail shops are adjusting to lingering market uncertainty, which, at least for now, seems to be here to stay. Over the past 12 to 18 months, the Federal Reserve has doused the white-hot, inflation-powered economy with buckets of interest rate hikes, increasing the effective federal funds rate from .08 percent at the beginning of 2022 to 5.08 percent today. Based on the central bank’s latest public signals, it doesn’t appear that interest rates are coming back down anytime soon. But it’s important to note that, historically speaking, they are not significantly high. Debt Challenges Continue Insurance companies, credit unions and relationship-driven lenders are financing the majority of retail deals in the market today. Typical bank loans, however, have slowed significantly as some institutions are either inactive or face rates are too high to meet debt service coverage ratios. Some private investors are buying with all cash or closing with cash plus lines of credit. A recent example of a “new normal” deal involves a life insurance company loan on a purchase transaction of a $15 …
