Property Type

Chicago’s Multifamily Sector Boasts Healthy Occupancy Rates, Strong Rent Growth

by Kristin Harlow June 8, 2023

By Mark Stern, JLL Chicago’s multifamily sector currently enjoys strong market fundamentals highlighted by healthy occupancy rates and continued rental rate growth. The current core apartment rents average over $4 per square foot, which is higher than previous peak pricing. After the pandemic, rental rates between late 2021 to 2022 recorded 10 to 15 percent growth, which is substantially ahead of the historical norms. Currently, the Chicago rental market is experiencing more stable rent growth in the 3 to 4 percent range. Chicago remains one of the most affordable major markets to rent an apartment when looking at the current average effective rents as a percentage of median household income. This affordability will allow owners to continue to push rental rates in the future. One of the major factors leading to strong operating fundamentals in the Chicago market is the lack of new supply. The supply in Chicago is currently 1 percent of the inventory, which is quite low in comparison to other markets where there could be as much as 10 to 12 percent of the inventory under construction. In the city, there are just over 7,000 units under construction slated for delivery between 2023 and 2024. The majority …

June 8, 2023

Features Retail

Buyer, Seller Disconnect Continues Amid Challenging Retail Lending Environment

by Katie Sloan June 8, 2023

When comparing this year’s retail investment sales market to last year’s, the main difference is the dramatic increase in the cost of capital. Naturally, this has led to a decrease in transaction activity and a disconnect between buyers and sellers. Over the past year, the Federal Reserve has raised the federal funds rate nine times for a total of 475 basis points to tame inflation. These actions have led to a sharp rise in commercial mortgage rates, which have a significant impact on pricing. The average mortgage rate on loans closed in the fourth quarter of 2022 across all commercial real estate asset classes was 5.3 percent, according to CBRE, up from 3.3 percent in the fourth quarter of 2021. Additionally, according to the Federal Deposit Insurance Corp. (FDIC), 2023 represents the largest year in bank failures in terms of total assets since 2008. In March, the FDIC took the reins at two regional banks, Silicon Valley Bank and Signature Bank, after massive bank runs. “Many would-be sellers are on the sidelines due to the downward pressure on pricing, leading to lower transaction velocity,” says Matt Hazelton, senior director with JLL Capital Markets in Minneapolis. “Property values have decreased about …

June 8, 2023

Acquisitions California Retail Western

Hanley Brokers $36.5M Sale of Bristol Place Shopping Center in Santa Ana, California

by Jeff Shaw June 7, 2023

SANTA ANA, CALIF. — Hanley Investment Group Real Estate Advisors has brokered the $36.5 million sale of Bristol Place, a 61,454-square-foot retail center located in Santa Ana. Built in 1968, the property was renovated in 2019 and was 89 percent occupied at the time of sale. Matt Burnett, Kevin Fryman and Ed Hanley of Hanley represented the seller, a joint venture between an affiliate of Cadence Capital Investments and Oakwood Real Estate Partners. Ron Duong of Marcus & Millichap represented the buyer, a California-based private investor.

June 7, 2023

Acquisitions California Industrial Office Western

Diamond Realty Holdings Buys Flex Property in El Segundo, California for $6M

by Jeff Shaw June 7, 2023

EL SEGUNDO, CALIF. — Diamond Realty Holdings has purchased an industrial flex/office building in El Segundo for $6 million. The property is located at the intersection of Lairport Street and East Mariposa Avenue. A long-term tenant currently occupies 2,400 square feet of the main, 14,400-square-foot structure. The remaining 12,000 square feet is available for lease and fully divisible. The new ownership plans to complete interior and exterior renovations to improve the façade and access to the site, as well as create open flex industrial space that can accommodate a variety of uses. CBRE’s Bob Healey, John Lane, Richard Melbye and Jane Healey represented both the buyer and the undisclosed seller in the transaction.

June 7, 2023

Leasing Activity Office Utah Western

CBRE Arranges Four New Leases at Office Building in Salt Lake City

by Jeff Shaw June 7, 2023

SALT LAKE CITY — CBRE has arranged leases for four new tenants at a 22-story, Class A office building in Salt Lake City. The building is located at 222 South Main St. and is now fully occupied. The new tenants include UMB Bank, global law firm Greenberg Traurig, CBRE itself and HKS Architects. CBRE’s Scott Wilmarth and Nadia Letey represented the landlord, KBS, in the lease transactions.

June 7, 2023

California Healthcare Leasing Activity Office Western

Pasadena Child Development Associates Leases 16,163 SF Medical Office Space in Pasadena, California

by Jeff Shaw June 7, 2023

PASADENA, CALIF. — Pasadena Child Development Associates (PCDA) has leased 16,163 square feet of office and medical office space in Pasadena. The lease encompasses two adjacent buildings, one located at 790 East Green St. and the other at 118 South Oak Knoll Ave. Both buildings are located in Pasadena’s Central Business District. The East Green space is an 8,027-square-foot office medical building. The Oak Knoll space is a two-story office building covering 8,136 square feet. Tina LaMonica of NAI Capital Commercial represented the tenant in the lease transactions.

June 7, 2023

Company News Multifamily Seniors Housing Washington Western

Veda Living to Manage 10 Seniors Housing Properties in Washington State

by Jeff Shaw June 7, 2023

WASHINGTON — Veda Living, the management company spin-off of ETROS Management Firm, has taken on a 10-property management agreement in Washington state. ETROS Management Firm, founded in 2016, specializes in turnaround management solutions for underperforming senior living assets. The properties are all branded as Greenlake Senior Living communities, which target middle-market seniors in the Pacific Northwest. With this most recent management deal, Veda Living now operates a portfolio of 15 properties across the nation.

June 7, 2023

Development Florida Multifamily Southeast

ROVR Development to Build 1,600-Unit River Rapids Apartments in Miami

by John Nelson June 7, 2023

MIAMI — ROVR Development plans to develop The River Rapids, a 1,600-unit apartment development situated on 10.2 acres along the Miami River. The developer recently acquired a 6.2-acre site for $23.5 million as part of the multi-phase community. Located at 2750 N.W. South River Drive, Phases I and II of River Rapids, dubbed Tides and Moorings, will add 600 units to the local supply. The properties will comprise an eight-story building and 12-story tower that will house units ranging from studios to three-bedroom apartments. ROVR plans to develop three more phases at adjacent sites located between 1701 and 1851 Delaware Parkway totaling 1,000 units. ATL Architecture and Michael Wolk Design are leading the designs for the Tides and Moorings communities.

June 7, 2023

Development Florida Loans Multifamily Southeast

JLL Secures $77M Construction Loan for Multifamily Project in Daytona Beach, Florida

by John Nelson June 7, 2023

DAYTONA BEACH, FLA. — JLL has secured $77 million in construction financing for the development of Atlantica at Daytona, a 341-unit apartment community located at 1799 N. Williamson Blvd. in Daytona Beach. The borrower, a joint venture between Sovereign Properties and Invest Capital Group, plans to open first units at the garden-style property in October 2024. Gregory Nalbandian, Jesse Wright and Joshua Odessky of JLL arranged the three-year loan with a 75 percent loan-to-cost ratio through Broadshore Capital Partners. Atlantica at Daytona will feature one-, two- and three-bedroom units averaging 981 square feet in size. Amenities will include a resort-style pool, grill station, screened lanai with a fireplace, bar and TVs, outdoor summer kitchen, dog park, coworking space, game room and a high-tech fitness center.

June 7, 2023

Arkansas Company News Development Retail Southeast

Walmart Opens Second In-Store Fulfillment Center in Bentonville, Arkansas

by John Nelson June 7, 2023

BENTONVILLE, ARK. — Walmart has opened its second in-store fulfillment center, dubbed Market Fulfillment Center (MFC), at a store in its headquarters city of Bentonville. The Walmart store (Store 100) is located at 406 S. Walton Blvd. The retail giant’s MFC strategy calls for high-tech fulfillment centers to be built within existing Walmart stores and powered by Alphabot, a proprietary storage and retrieval system. “This new order fulfillment system is truly game changing,” says Ryan Simpson, store manager at Store 100. “Not only does it enhance the customer experience through quicker, more accurate online order fulfillment, it also provides us the runway to continue growing our business now and in the future.” Walmart’s proof of concept store for the MFC strategy was in Salem, N.H. Walmart plans to continue opening MFCs in select stores in the coming years.

June 7, 2023

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