NORTH CHARLESTON, S.C. — Marcus & Millichap has brokered the $5.4 million sale of Clement Arms Apartments, a 49-unit multifamily community located at 1815 Clements Ave. in North Charleston. The property was built in 1980 on 1.2 acres. Ryan Lipomi, Will Graves and Nate McDaniel of Marcus & Millichap’s Charleston office represented the seller and procured the buyer in the transaction. Both parties requested anonymity.
By Taylor Williams Tenant demand and availability of capital for industrial deals are still healthy in Texas, but end users and developers are demonstrating a clear push for smaller footprints in their leases and projects. This shift reflects a marked departure from recent years, when massive speculative facilities were financed without hesitation or preleasing and industrial users had little choice but to accept staggering levels of rent growth. Spikes in interest rates bear some, but not all, blame for this emerging dynamic. Local and regional banks tend to be go-to debt providers on industrial projects, and these groups take defensive positions with their capital flows during high interest rate environments. And while reliance on e-commerce and third-party distribution remains deeply ingrained in consumer preferences, users still see value in rightsizing their footprints in today’s market. As such, the industrial landscape is changing in Texas, where exceptionally strong population growth nonetheless ensures that the sector remains on very solid footing overall. But changes are undoubtedly happening. Large-scale spec facilities are being swapped for smaller build-to-suits, and manufacturing deals are taking up a larger share of the development pipeline. Lenders are tightening leverage and demanding more upfront equity for projects that they …
GOODYEAR, ARIZ. — Prologis Inc. (NYSE: PLD) has acquired Airpark Logistics Center in Goodyear, a western suburb of Phoenix, for $184 million. Creation and CrossHarbor Capital Partners were the sellers. The transaction marks the largest multi-building industrial business park acquisition in Arizona history, according to Creation. Located directly adjacent to Phoenix Goodyear Airport, the campus spans 170 acres. The first phase, comprising three buildings with 1.4 million square feet of leasable space, was completed last month. LGE Design Build served as the architect and general contractor. The second phase of the project includes 84 acres of undeveloped land for build-to-suit industrial projects. At full build-out, the development will span more than 2.7 million square feet. “The recognition of Airpark Logistics Center’s potential by a logistics real estate leader like Prologis is a testament to the quality of the asset,” says Grant Kingdon, principal of Creation’s Mountain region. “The center’s strategic location, innovative design and growth potential align perfectly with our vision for delivering sustainable developments that meet the needs of modern logistics tenants. This sale is especially significant today given the current market dynamics, where deals of this scale are rare.” Will Strong, Kirk Kuller, Michael Matchett and Molly Hunt …
By Sara Hanke, The Lerner Co. Eternally optimistic is the state most commercial real estate brokers find themselves in, particularly when it comes to the retail sector. We must be, as the conditions of the retail market are quite often painted in negative broad strokes. The predictions that online sales would be the demise of physical retail proved wrong. Retailers that are digitally native continue to open brick-and-mortar locations after realizing the limits of online customer acquisition and growth. Most recently, the pandemic has shown us that retail can weather the storm of restrictions and limitations. Now we are in a post-pandemic world where the restrictions and upheaval of the way we consume has shifted our mindset. Shoppers have returned to their daily shopping, eating and entertainment needs. Navigating the complexities of the retail real estate market continues to keep us all on our toes. The first and third quarters were healthy with vacancy dipping below 5 percent. So far, the third quarter has proven strong due to new-to-market concepts looking to do multiple location rollouts as well as existing retailers looking to add additional locations. As the year progresses, we are not without challenge. There has been a shortage …
Self-storage has had an amazing run since just before the pandemic. Cap rates started near 6 percent, with buildings starting at $150 per square foot. Then came the flood of pandemic capital pushing prices — by mid-2022 prices jumped to a point no one had previously experienced. “In some of the bigger markets, we were seeing per-square-foot prices of $300 and above for the first time,” says Denise Nunez, executive managing director with NAI Horizon. Cap rates fell to as low as 4 percent. “The low cap rates had gotten to such a point where many brokers were not even pricing deals because they didn’t want to miss that extra that they could get on the sale.” But rising interest rates have had an impact on self-storage, as they have had on every other commercial real estate asset class, with prices reversing again. Investors are still unsure of what the Federal Reserve will be doing in the near term with monetary policy. Building costs are high — final delivery construction costs are still higher by 40 percent or more than pre-pandemic. That reality has resulted in investors alternating between cold feet and, with some signs that the Fed may plan …
DENVER — Alliance Residential has completed the disposition of Broadstone Kendrick, a multifamily community in Denver’s Uptown neighborhood, Jackson Square Properties sold the asset for $111 million. Constructed in two phases between 2021 and 2022, the 184,574-square-foot Broadstone Kendrick consists of two eight-story buildings with two levels of subterranean parking. The property features 254 studio, one- and two-bedroom apartments with an average unit size of 727 square feet. The two buildings are located at 1780 Marion St. and 1160 E. 18th Ave. across the street from the Uptown Medical District. Units feature gas ranges, wine fridges and soft-close drawers and cabinets. Community amenities include two rooftop terraces; a fitness center and wellness center fully equipped with Technogym and barre equipment; a lounge; and coworking space. Terrance Hunt, Shane Ozment, Chris Cowan, Chris Hart, Brad Schlafer and Jessica Graham of CBRE’s multifamily investment properties team in Denver represented the seller in the transaction.
TOMBALL, TEXAS — Houston-based development and investment firm NewQuest Properties has announced that The Grand at 249, a $90 million retail project the northwestern Houston suburb of Tomball, is now 96 percent leased. The site spans 65 acres and fronts both Tomball Tollway/Texas Highway 249 and Grand Parkway/Texas Highway 99, and the center itself will feature 404,256 square feet of shopping, dining and entertainment space. Tenants that have already committed include AT&T, Boomer Jack’s, Gringo’s, Jersey Mike’s, Milano Nails and Two Pho Nine Asian Fusion.
ROUND ROCK, TEXAS — Minneapolis-based LS Black Development has broken ground on Preserve at Mustang Creek, an $88 million affordable housing project in the northern Austin suburb of Round Rock. Designed by Merriman Anderson Architects, Preserve at Mustang Creek will total 252 units that will be reserved for households earning 30 to 60 percent of the area median income (AMI). Units will come in one-, two-, three- and four- bedroom floor plans, and amenities will include a pool, playground, clubroom and outdoor grilling and dining stations. Construction is scheduled for a fall 2025 completion.
ANAHEIM, CALIF. — Easterly Government Properties has acquired 1065 Link, a four-story office building within Link OC in Anaheim. A partnership between a global real estate investment, development and management firm and a global investment manager sold the asset for $31.1 million, or $327 per square foot. Originally constructed in 1991, 1065 Link features 95,371 square feet of institutional-grade office space. The property underwent interior and exterior renovations in 2020. Key building features include a newly renovated lobby and exterior common areas and over-standard parking. The State of California occupies the entire building. Jeffrey Cole, Nico Napolitano, Brad Brandenburg and Kristen Bogler of Cushman & Wakefield’s Capital Markets team in Southern California represented the seller in the transaction.
BAYTOWN, TEXAS — Newmark has brokered the sale of Stone Brook, a 376-unit apartment community located in the eastern Houston suburb of Baytown. Built in 2000, Stone Brook offers one-, two- and three-bedroom units and amenities such as a pool, playground and a dog park. Zach Springer of Newmark represented the seller, Dallas-based private equity firm Knightvest Capital, in the transaction. Tip Strickland, also with Newmark, originated an undisclosed amount of Freddie Mac acquisition financing on behalf of the buyer, Bluebird. The 10-year, fixed-rate loan was structured with a loan-to-value ratio above 80 percent and seven years of interest-only payments.
