Property Type

NEW YORK CITY — Global Net Lease (NYSE: GNL) and The Necessity Retail REIT (NASDAQ: RTL) have entered into a merger agreement under which GNL will acquire RTL in an all-stock transaction. The combined company is expected to own and manage over 1,350 properties with an aggregate real estate asset value of approximately $9.6 billion. Under terms of the merger agreement, GNL stockholders are expected to own approximately 45 percent of GNL post-closing, RTL stockholders are expected to own about 39 percent, and the owner of the former external manager is expected to own up to 17 percent.  The merger is projected to generate approximately $21 million in annual cash savings realized within 12 months of transaction close, according to the companies. The combined entity will be internally managed, with external asset and property management functions to be performed by AR Global. Internalizing management is expected to result in approximately $54 million in annual cash savings. Headquartered in New York City, Global Net Lease is a publicly traded REIT that focuses on commercial properties with an emphasis on sale-leaseback transactions involving single-tenant, mission-critical, income-producing net lease assets across the United States and in Europe. Its portfolio features 311 properties totaling 39.3 million square feet across 11 …

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— By Priscilla Nee, Executive Vice President, CBRE — The Los Angeles apartment market started showing signs of cooling as supply has risen to meet demand. Rents decreased marginally year over year as last year’s apartment demand decreased following pent-up pandemic demand. In response to decreased prices, renter demand for space has seen an increase in the first few months of 2023.  Across the market, vacancy is sitting just below 4.5 percent as of first-quarter 2023, which is up from all-time lows of around 3.7 percent one year prior. Concessions for new renters are present. They have been steady and increasing since the third quarter of 2022 as landlords work to attract great renters to new and existing projects.  Additional new supply is outpacing present demand, despite early upticks in demand for the year. That, paired with a strong development pipeline and an additional 27,000 units under construction, may continue to drive vacancy rates up should demand not increase in kind. This could lead to potential reductions in lease rates if a property sits vacant on the market long enough.  Most current development and construction is centered in Downtown LA, Koreatown and South LA. Markets like Inglewood are setting themselves …

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KANSAS CITY, MO. — The National Association of Insurance Commissioners (NAIC) has renewed its office lease at Eleven Eleven Main in Kansas City. The tenant plans to renovate its space, which totals about 109,000 rentable square feet across the fourth floor and floors eight through 11. Owner Copaken Brooks is involved in the property and construction management for the renovation project. Ryan Biery of Copaken Brooks represented ownership alongside CBRE’s Rollie Fors and Brice Shamberger. Sven Sykes, Tom Volini and Bryan Johnson of Colliers represented NAIC.

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LE SUEUR, MINN. — Kraus-Anderson has broken ground on a new $40.4 million elementary school for Le Sueur-Henderson Public Schools. In August 2022, voters approved a $39.9 million referendum to fund the new school. The project will be built adjacent to the high school and will be located at 901 Ferry St. in Le Sueur, about 57 miles southwest of Minneapolis. Designed by ATS&R Planners, Architects and Engineers, the two-story, 113,090-square-foot school will serve grades K-5. Plans call for classrooms, labs, a music room, kid’s club, cafeteria, administrative offices, nurse’s area, 30,000-square-foot field house, three-court gymnasium and 6,000-square-foot storm shelter. There will also be secure entry, a parking lot, bus drop-off and two playgrounds. Completion is slated for August 2024.

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BURNSVILLE, MINN. — Marcus & Millichap has arranged the $8.6 million sale of the Best Western Premier Nicollet Inn, a 131-room hotel in the Minneapolis suburb of Burnsville. Located at 14201 Nicollet Ave., the property features a full-service restaurant. With an occupancy rate of 42.3 percent and an average daily rate of $119.62, the hotel’s revenue per available room was $50.60 as of year-end 2022. Jake Erickson, Joseph Ferguson, Jared Plamann and Jon Ruzicka of Marcus & Millichap represented the seller, a limited liability company. The team also secured and represented the buyer, a fund manager.

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MAPLE GROVE, MINN. — Davis has opened Maple Grove Specialty Center, a 44,000-square-foot medical office building in the Minneapolis suburb of Maple Grove. MNGI Digestive is the anchor tenant and occupies the 22,000-square-foot second floor. The property will also be home to Minnesota Oncology, which leased the entire first floor. In addition to serving as developer, Davis owns the building and provides property management and leasing services. The project team included Minneapolis-based Synergy Architecture Studio and Plymouth, Minn.-based Timco Construction Inc.

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KANSAS CITY, MO. — Locally based IAS Partners has begun development of a 15,000-square-foot, multi-tenant retail and restaurant building at Metro North Crossing, a mixed-use project in Kansas City. The facility is located along Highway 169 adjacent to the newly opened Hawaiian Bros Island Grill and Whataburger. Construction of the shell building is slated for December, with tenants expected to open in spring 2024. The building is located alongside Woodstone, a $60 million luxury apartment complex with 249 apartment and townhome-style units that opened in fall 2022. Metro North Crossing is also home to T-Shotz, a 52,000-square-foot golf entertainment venue.

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DALLAS — New York-based Fortis Property Group will renovate and rebrand Chase Tower, a 55-story, 1.2 million-square-foot office building located at 2200 Ross Ave. in downtown Dallas. The centerpiece of the project will be the reimagining of the lobby, including the installation of a new art gallery with pieces by local artists. New lighting and flooring will accentuate the artwork, and ownership will also upgrade the elevator cabs. Lastly, Fortis will rebrand the property as Dallas Arts Tower and add two new food-and-beverage concepts, a café and a Greek restaurant. Stream Realty Partners leases the building. CBRE represented the restaurant operator, Milkshake Concepts, in its negotiations to lease the lobby space.

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MCKINNEY, TEXAS — General contractor Brasfield & Gorrie has topped out a 438,000-square-foot industrial building in the northern Dallas suburb of McKinney that is a build-to-suit for defense contractor Raytheon. The seven-story facility will include 259,200 square feet of manufacturing space and 43,200 square feet of office space, as well as lab space. Corgan is the project architect, and KDC is the developer. Construction is scheduled for a first-quarter 2024 completion.

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HOUSTON — The NHP Foundation, a nonprofit owner-operator based in New York City, has opened The Citadel at Elgin, a 74-unit affordable housing complex in Houston’s historic Third Ward. Residences come in studio and one-bedroom floor plans and are reserved for renters age 55 and above who earn between 30 and 80 percent of the area median income. Units are furnished with stainless steel appliances, quartz countertops and in-unit washers and dryers. Amenities include a multi-purpose room, courtyard and outdoor grilling and dining stations. Houston-based nonprofit Change Happens CDC manages the property.

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