KANSAS CITY, KAN. — VICI Properties Inc. has entered into a construction loan agreement with affiliates of Homefield Kansas City to provide up to $105 million in financing for the development of a Margaritaville Resort in Kansas City. The construction loan has an initial term of three years with three 12-month extension options. The Margaritaville Resort, set to open in summer 2025, will serve as the anchor to the Homefield Development, an ongoing project in Kansas City that will house Homefield’s new youth sports training facility and baseball center that are currently under development within the Homefield Resort campus. Both the training facility and baseball center are slated to open this spring. Homefield is an operator of youth sports facilities. Simultaneous with entering the loan agreement, VICI entered into a call right agreement that provides VICI with a call option on the Margaritaville Resort, the Homefield youth sports training facility, the Homefield baseball center and the existing Homefield youth sports complex in Olathe. VICI also received a right of first refusal to acquire the real estate of any future Homefield property in a sale-leaseback transaction, should Homefield elect to monetize such assets. If the call right is exercised, all of …
VERNON HILLS, ILL. — A partnership between Avgeris and Associates Inc., The Missner Group and Wylie Capital has acquired International Corporate Park, commonly known as the former American Hotel Register site, in the Chicago suburb of Vernon Hills. The venture paid $29.5 million for the site from an entity affiliated with American Hotel Register, according to Crain’s Chicago Business. Originally developed in 1996, the 70-acre site features a 257,927-square-foot warehouse, which will remain in the redevelopment, and a five-story, 202,000-square-foot office building, which will be demolished. Plans call for more than 900,000 square feet of new industrial space in up to four buildings. Redevelopment of the site is anticipated to begin later this year. The Missner Group will also serve as general contractor. American Hotel Register is a hospitality supplies distributor.
COLUMBUS, OHIO — Woda Cooper Cos. Inc. has opened Lockbourne Greene, a 60-unit affordable housing community with an onsite early learning center in Columbus. Woda developed the property at 1840 Lockbourne Road in partnership with Healthy Homes, which is affiliated with Community Development for All People and Nationwide Children’s Hospital’s Healthy Neighborhoods Healthy Families Initiative. The project transformed a vacant Columbus Land Bank property. The development is available for workforce families, seniors and other general occupancy residents who earn 40 to 70 percent of the area median income, or roughly $39,680 to $69,440 annually for a family of four. Rents range from $760 to $999 per month, depending on income category and size of unit. The three-story, 71,000-square-foot building includes 12 one-bedroom, 40 two-bedroom and eight three-bedroom apartments. Five units offer features for people with disabilities. Community amenities include an onsite management office, resident fitness center and community room. Financing for the $16 million project came from a diverse mix of public, private and nonprofit sources. Equity financing was made possible through the allocation of federal Low-Income Housing Tax Credits via the Ohio Housing Finance Agency. Bank of America invested $7.3 million in the tax credits and supplied a construction …
OVERLAND PARK, KAN. — Walnut Risk Management LLC has signed a 5,640-square-foot office lease at the Aspiria campus in Overland Park. The insurance broker firm specializes in commercial and personal lines insurance brokerage. Construction has begun on the build-out of Walnut Risk Management’s new office, and the company plans to take occupancy in June. Wichita-based Occidental Management owns and manages the Aspiria campus, which is the redevelopment of the former Sprint headquarters.
GRIMES, IOWA — Upland Real Estate Group has brokered the $1.8 million sale of an Arby’s-occupied property in Grimes, a northwest suburb of Des Moines. Arby’s has a 20-year triple net lease with 5 percent rent increases every five years. The tenant on the lease, DRM Inc., is one of the largest Arby’s franchisees and operates 109 Arby’s restaurants in seven Midwest states. Deborah Vanelli, Keith Sturm and Amanda Leathers of Upland represented the undisclosed seller.
PHILADELPHIA — Dave’s Hot Chicken will open three restaurants at properties owned by Federal Realty Investment Trust in the Philadelphia metro area. Scheduled to open this month, the first store will span 2,995 square feet at Northeast Shopping Center in Philadelphia. Dave’s will also open restaurants at Ellisburg Shopping Center in Cherry Hill, New Jersey, and Willow Grove Shopping Center in Willow Grove, Pennsylvania, in the spring and fall of this year. Those stores will span 3,086 and 2,825 square feet, respectively.
Affordable HousingDevelopmentFloridaLeasing ActivityMixed-UseMultifamilyOfficeRestaurantRetailSeniors HousingSoutheastTop Stories
SG Holdings Completes Leasing at $350M Mixed-Use Development in Miami, Plans Summer Opening
MIAMI — SG Holdings has completed leasing at Sawyer’s Walk, a 3.4-acre mixed-use development underway in Miami’s Overtown neighborhood. The project, which will feature retail space, offices and affordable housing for seniors, is set to open this summer. SG Holdings is a partnership comprising Swerdlow Group, SJM Partners and Alben Duffie. The development team broke ground on Sawyer’s Walk in summer 2021. The development costs were not disclosed, but the Miami Herald reported the price tag hovers around $350 million. “The anticipated delivery of our mixed-use development will serve as an economic catalyst for Overtown, with the creation of over 1,000 quality jobs, the opening of a new full-service supermarket and mix of national retail stores that will serve the immediate community and surrounding neighborhoods,” says Michael Swerdlow, managing partner of Swerdlow Group. Sawyer’s Walk will feature 175,000 square feet of retail space. Committed tenants include Target (50,000 square feet), Aldi (25,000 square feet), Ross Dress for Less, Five Below, Tropical Smoothie Café and Burlington. MSC Group, a global cargo ship line and the world’s third-largest cruise line, purchased the property’s 130,000 square feet of office space with plans to combine its South Florida cruise and cargo operations under one roof. …
By Nick Fiquette, Sansone Group Lingering effects of COVID-19 In the aftermath of the global pandemic, the St. Louis real estate market finds itself at a crossroads, continuing to see the persistent impacts of COVID-19. Corporate strategies are evolving as companies evaluate their real estate footprints to accommodate the changing work environment and desires of employees. As lease expirations loom, businesses are engaged in a delicate dance of evaluating their physical space needs. The pendulum of work-from-home policies, initially adopted to streamline footprints, appears to be swinging back. Recently, Edward Jones listed a 227,000-square-foot Class A building that it owns on the market for lease and is planning on occupying it instead. This example could serve as a positive indicator for the future of the office market. The market is transforming as companies look to accommodate employee demands, prioritizing safe, walkable areas and amenity-rich buildings. This shift is particularly evident in the struggle faced by commodity real estate, as businesses increasingly gravitate toward locations that contribute positively to the employee experience. As a result, investors are remaining cautious about purchasing office assets due to surging interest rates and uncertainties surrounding the future of the office market. Corporate giants reevaluate real …
AcquisitionsContent PartnerFeaturesLoansMidwestMultifamilyNAINortheastOfficeRetailSoutheastTexasWestern
Previous Year’s Challenges Shape 2024 Outlook for Cap Rates, Investment Activity, Distressed Properties
If NAI Global president and CEO Jay Olshonsky had to use one word to sum up the 2023 commercial real estate market, it would be “inactive.” The interest rate-fueled bid-ask spread stifled investment sales of all property types, and in the office sector especially, tenants avoided making any space decisions if they didn’t have to. One month into 2024, not much has changed. From an investment sales perspective, Olshonsky still sees properties offered at capitalization rates between 4 and 5 percent while interest rates are 6 percent or higher, which is prolonging the disconnect between buyers and sellers. Meanwhile, robust job creation well beyond today’s levels is needed to create the leasing demand that will reverse the office sector’s troubles in the new era of hybrid work. But that’s not likely to happen in 2024 as the tech sector, in particular, continues to lay off workers. “I’ve been in the real estate business a long time, and this is a cycle unlike most others,” says Olshonsky. “The biggest problem we have right now is mainly record-high office vacancy just about everywhere — certainly in the large cities — which we’ve never really seen before. On the investment side, lenders cannot …
SAN DIEGO — JLL has secured a $149 million loan for the refinancing of a three-property multifamily portfolio in the Southeastern United States. Aldon Cole, Tim Wright and Bharat Madan of JLL’s San Diego office arranged the three-year, fixed-rate loan through a life insurance company on behalf of the borrower, Sunroad Enterprises. The properties in the portfolio include the 313-unit Verde Vista in Asheville, N.C.; the 288-unit Avenues at Verdier Point in Charleston, S.C.; and the 256-unit Adara at Godley Station in Savannah, Ga. San Diego-based Sunroad Enterprises acquired the three properties in 2021 and has since completed 100 percent of its planned exterior and common area renovations and 50 percent of interior renovations.