MINNEAPOLIS — Owner Accesso has completed new office leases or renewals totaling 57,113 square feet at IDS Center in Minneapolis. The tenants, which are in various industries such as finance, legal and business consulting, include: Fabyanske, Westra, Hart & Thomson; Hursch Blackwell LLP; WiseFool; Bremer Bank National Association; Mattel Sales Corp.; and Lathrop GPM. IDS Center rises 47 stories and totals 1.4 million square feet.
TRAVERSE CITY, MICH. — Bernard Financial Group has arranged a $4 million loan for the refinancing of Tradewinds Terrace, a 122-unit multifamily property in Traverse City. Dennis Bernard and Joshua Bernard of the firm arranged the loan on behalf of the borrower, an entity doing business as Tradewinds Terrace Owner LLC. Ameritas Life Insurance Co. provided the loan, terms of which were undisclosed.
ANN ARBOR, MICH. — Fitness concept Stretch Lab has signed a 1,207-square-foot retail lease at the Uptown Ann Arbor mixed-use development in Ann Arbor. Other retail tenants at the property include Beyond Juice, Marco’s Pizza, Banfield Pet Hospital, Paint Nail Bar, Detroit Wing Co. and The Great Greek. Stephen Smith of TNF Realty represented Stretch Lab in the lease. Michael Murphy, Vicki Gutowski and Tjader Gerdom of Gerdom Realty & Investment represented the owner, Beztak Properties.
SANTA CLARITA, CALIF. — The Center at Needham Ranch, a 1.7 million-square-foot industrial park in Santa Clarita, has reached full occupancy. Beverage manufacturer DrinkPAK has leased the last two buildings in the final phase of the development. This will expand the company’s footprint at the center to 965,000 square feet. Construction on the final phase will be completed by year-end 2023. DrinkPAK will occupy the 107,522-square-foot Building 17 and the 85,802-square-foot Building 18 at the center. The company had previously pre-leased the entire 198,451-square-foot Building 14, following its leasing of 172,324 square feet of space in Building 2 in October 2020 and 400,095 square feet in Buildings 3 and 4 in April 2021. The Center at Needham Ranch is a joint venture between Trammell Crow Co. and Clarion Partners. Patrick DuRoss, John DeGrinis and Jeff Abraham of Newmark represented DrinkPAK in the most recent lease. CBRE’s Craig Peters, Cameron Merrill and Doug Sonderegger are the center’s leasing agents.
FARMINGTON, MO. — Axiom Capital Corp. has arranged a $3 million loan for the refinancing of a 51,373-square-foot retail building in Farmington, a city in eastern Missouri. Built in 2016, the single-tenant property is occupied by Hobby Lobby. The nonrecourse loan features a five-year term and a fixed interest rate. The lender and borrower were not provided.
CORONA, CALIF. — Kearny Real Estate Co., a Los Angeles-based developer and investor, has sold Corona Lakeside Logistics Center, a five-building industrial park located in the Riverside County submarket of Inland Empire. The buyer, GLP Capital Partners, acquired the 730,000-square-foot development for $325 million. Michael Kendall, Richard Schwartz, Gian Bruno, Joey Reaume and Kenny Patricia of Colliers represented both parties in the transaction. The sales price represents the largest ground-lease ownership transfer in the history of the Inland Empire and one of the largest ever for Southern California, according to Colliers. “The buyer recognized the intrinsic value of this development and is thrilled to be adding it to its growing portfolio of Class A properties,” says Kendall. “Kearny built a best-in-class industrial development at the Inland Empire bullseye that is the I-15/CA-91 interchange.” “This is a culmination of seven years in the making,” adds Schwartz. “It was an honor to work with the Kearny team through the development phase and witness its project come to fruition.” Kearny recently delivered the park nearly two years after breaking ground. The developer signed a 99-year ground lease at the 37-acre site in 2019 with a private family owner, a deal that was …
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Lee & Associates’ First-Quarter 2023 Sector-by-Sector Analysis Indicates Market-Wide Cooling
High interest rates and economic uncertainty in the first quarter of this year contributed to lower absorption and declining rent growth in industrial, retail and multifamily sectors across the country, with some regional exceptions, according to Lee & Associates’ 2023 Q1 North America Market Report. Meanwhile office continues to struggle. The sector experienced its third-largest quarterly contraction since the beginning of the pandemic, as work-from-home preferences decoupled office occupancy from job growth numbers. The full Lee & Associates report is available (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city) here. The analysis below provides an overview of four major commercial real estate sectors alongside trends, economic background and exceptions within each sector. Industrial Overview: Sharp Decline Hits First-Quarter U.S. Demand There was a sharp first-quarter decline in U.S. tenant demand for industrial space as wholesalers and retailers reconsider their inventory levels out of caution over the economic outlook. Net absorption in the first quarter totaled 39.4 million square feet, a 57 percent drop from the record set a year ago. The overall U.S. vacancy rate settled at 4.4 percent, an increase of 40 basis points from the close of 2022, comfortably …
TAMPA, FLA. — Boca Raton-based Basis Industrial has purchased portfolio of industrial properties located in Tampa for $33 million. The portfolio includes Brandywine Business Center at 3801 Corporex Park Drive; Corporex Plaza at 3902 Corporex Park Drive and Presidents Plaza Business Center at 4801 George Road. Together the properties total 224,108 square feet. Tenants at the properties, which were 96 percent occupied at the time of sale, include Joffrey’s Coffee, Global Alliance Distributors, Ademco Inc., E-Med Source and Tri-Ed Distribution. Anthony Scavo represented Basis Industrial on an internal basis. Douglas Mandel of Marcus & Millichap’s Institutional Property Advisors (IPA) division represented the undisclosed sellers.
PEACHTREE CORNERS, GA. — Spalding Site Partners LLC has acquired a 2.2-acre land parcel in Peachtree Corners with plans to develop a mixed-use property. Upon completion, the development will include 170 residential units, ground-floor retail space, a fitness center and an extension of the Peachtree Corners public trail system. Redline Property Partners, which has a 98,040-square-foot office building at the site, sold the land for an undisclosed price.
ORLANDO, FLA. — CBRE has arranged the sale of an industrial portfolio comprising 241,124 square feet across three buildings in Orlando. Located at 10425 S. Orange Ave., 523 W. Grant St. and 44 27th St., the buildings total 130,400, 62,210 and 48,514 square feet, respectively. GID Industrial purchased the portfolio, which was fully leased to 14 tenants, including USPS, at the time of sale. José Lobón, Trey Barry, Frank Fallon, Royce Rose and Alain Bonvecchio of CBRE Capital Markets represented the undisclosed, Boston-based seller in the transaction. David Murphy and Monica Wonus of CBRE also assisted with the sale, the price of which was not disclosed.