NEW YORK CITY — JLL has arranged the $10.8 million sale of two apartment buildings located at 175-177 East Third St. in Manhattan’s East Village. The five-story, walk-up buildings house a total of 20 one-bedrooms units, two of which have been duplexed with the basement. Hall Oster, Teddy Galligan and Guthrie Garvin of JLL represented the seller, an undisclosed private investor that owned the buildings for 30 years, in the transaction. The buyer was Lockhill Properties.
PENNSAUKEN, N.J. — Fastener Dimensions, a manufacturer and distributor of precision bolts for the aerospace industry, has acquired a 60,000-square-foot industrial building in the Southern New Jersey community of Pennsauken. The sales price was $4.2 million. Fastener Dimensions will continue to occupy the freestanding building, where it has operated out of for the past several years. Jonathan Klear of NAI Mertz brokered the deal. The seller was not disclosed.
NEW YORK CITY — Tapestry (NYSE: TPR), owner of fashion brands Coach, Kate Spade and Stuart Weitzman, has agreed to acquire luxury fashion group Capri Holdings Limited (NYSE: CPRI) for $8.5 billion. Both companies are based in New York City. Capri Holdings consists of Versace, Jimmy Choo and Michael Kors. The group spans a retail footprint of over 1,200 stores globally, including 223 Versace locations, 237 Jimmy Choo stores and 812 Michael Kors locations. The all-cash transaction, which was unanimously approved by the board of directors at both Tapestry and Capri Holdings, is expected to close in 2024. Capri shareholders will receive $57 per share. Combined, the companies generated $12 billion in global annual sales in 2022 and have a presence in over 75 countries. “We are excited to announce the acquisition of Capri Holdings — uniting six iconic brands and exceptional global teams,” says Tapestry CEO Joanne Crevoiserat. “The combination of Coach, Kate Spade and Stuart Weitzman together with Versace, Jimmy Choo and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities and shareholders around the world.” Tapestry has secured $8 billion in fully committed bridge …
By Andrew Welker, founder and CEO, Welker Properties Institutional investment in the single-family housing market is waning as high interest rates show no sign of letting up. For the first time in years, corporate investors looking to borrow money are having difficulty finding cash flow with current interest rates. As a result, some institutional investment firms are hitting pause on real estate portfolios or pivoting to all-cash deals on low-priced housing stock. This shift makes it more difficult for individual first-time homebuyers to get in on the game. With buyers and sellers holding out for better returns, a shrinking debt market isn’t helping with the supply shortage. According to data supplied by Freddie Mac and analyzed by Axios, the country needs nearly 4 million units — both for rent and for sale — to meet demand based on current rates of household formation. There simply isn’t enough housing being built to meet demand. Enter build-to-rent (BTR), an asset class that’s skyrocketed in popularity in recent years as COVID-19 pushed people out of cities and affordable homeownership further from their reach. Offering the four-walled privacy of a single-family unit and the conveniences of multifamily construction, BTR is community-style living for …
By Jamie Dunford, CBRE Outside of office product, Cleveland and Northeast Ohio haven’t historically been of interest for most out-of-town multifamily developers and investors. They viewed the region as a tertiary or secondary market with a declining population and a lackluster economy. Until recently, urban living in the central business district (CBD) and surrounding neighborhoods was rare — Cleveland was a commuter city with a strong office market from the 90s until the Great Financial Crisis (GFC) in 2008. At one point in time, Northeast Ohio boasted one of the highest concentrations of Fortune 500 companies with headquarters or other office space in the region, and the CBD had the largest job hub in the state of Ohio. Most office buildings in the CBD were owned by institutional capital or national developers. However, the GFC vastly altered this landscape as unemployment rose, companies left or downsized, and many office assets went back to the lender. This left an oversupply of office product in the market, and the older buildings suffered the most. However, this created a market opportunity that Cleveland developers seized, and the city eventually became a national leader in converting historic office assets to multifamily while taking advantage …
GLENDALE, ARIZ. — Westcore has completed a $92.7 million acquisition of the 906,125-square-foot Hatcher Industrial Park from Ryan Cos. US. Westcore partnered with Ryan one year ago for the development of the property, and this transaction marks the completion of the project and sale. Located in Glendale, the two-building industrial campus includes a 519,167-square-foot facility at 15101 W. Hatcher Road and a 386,958-square-foot asset at 15151 W. Hatcher Road. The warehouses feature 40-foot clear heights, ESFR sprinklers, eight grade-level doors, 167 dock-high doors and ample parking, including electric vehicle parking. Westcore is building out speculative office suites, equipping the buildings with full HVAC, LED warehouse lighting and dock packages with 40,000-pound-capacity levelers. Ryan Cos. served as the developer and builder for Hatcher Industrial Park and Ryan A+E Inc. served as architect. Tony Lydon, Marc Hertzberg, Riley Gilbert and Kelly Royle of JLL assisted with the transaction and are managing the leasing efforts for the property.
PERRIS, CALIF. — Rockefeller Group has completed the $13.4 million acquisition of a 14-acre parcel in Perris for the development of Patterson Commerce Center, a 259,000-square-foot distribution center. The project will be located adjacent to Optimus Logistics Center, a 1.4 million-square-foot, two-building logistics center. Full construction is slated to commence in September. The building will feature 36-foot clear heights, 56-foot by 60-foot column spacing, 145 parking spaces and a 185-foot to 240-foot truck court with 59 trailer stalls. Completion of Patterson Commerce Center is scheduled for summer 2024. The project team includes HPA Architects, Huitt-Zollars and RM Dalton. Jo McKay, Michael McKay and Michael Fine of Lee & Associates represented the Rockefeller Group on the land purchase and will oversee leasing of the project.
LA PALMA AND LA HABRA, CALIF. — DMI Real Estate Group has completed the dispositions of two shopping centers — La Palma Collection and The Row on Harbor — for a combined $25.5 million. Joseph Lising of Cushman & Wakefield’s Southern California retail team, along with Daniel Sydor of Cushman & Wakefield’s Valuation & Advisory Services, represented and advised DMI in the dispositions. Located at 7811-7971 Valley View St. in La Palma, La Palma Collection features 23,882 square feet of multi-tenant retail space. A private 1031 exchange buyer acquired the asset for $13 million. Ron Duong of Marcus & Millichap represented the buyer in the deal. The Row on Harbor, located at 1450-1478 S. Harbor Blvd. in La Habra, features 23,314 square feet of retail space. At the time of sale, the property was fully leased to 14 tenants, including EggBred, AkaFuji, Furai Chicken, Bodhi Leaf Coffee Traders, Code Ninjas and Club Pilates. A 1031 all-cash buyer acquired the property for $12.5 million.
DAVIS, CALIF. — Michaels Student Living has completed Orchard Park, a 1,549-bed residence hall developed through a public-private partnership with the University of California, Davis and the Collegiate Housing Foundation. The development spans 11 buildings, offering 613 units for graduate students and students with families. The community also includes indoor amenity spaces, two community centers and programmed outdoor space. This property is the second phase of development for the public-private partnership, following The Green at West Village, a nine-building community offering 3,290 beds.
COLORADO SPRINGS, COLO. — Berkadia has arranged the financing of a 72-bed memory care facility in Colorado Springs. Jay Healy and Andrew Lanzaro of Berkadia Seniors Housing & Healthcare secured a $14.4 million bridge loan to retire the existing construction debt and transaction costs. Berkadia Seniors Housing & Healthcare was able to offer an 18-month, floating-rate, bridge-to-HUD loan to allow the borrower enough time to continue improving NOI to a level that will support a HUD refinancing. Berkadia Seniors Housing & Healthcare anticipates submitting the HUD application within 12 months. The Washington-based borrower completed the community in 2018 and, despite strong lease-up velocity in 2019, struggled throughout much of 2020 and 2021 due to key staff turnover and multiple COVID-19 lockdowns. Occupancy hit a low point of 30 percent in December 2020 before new facility-level leadership stepped in to stabilize the community, managing to increase occupancy to 72 percent by March 2023.