BOSTON — Global architecture and design firm Sasaki has opened its new 64,000-square-foot office headquarters at 110 Chauncy St. in downtown Boston. The space spans seven of the building’s eight floors. Sasaki, which signed a 16-year lease in 2021 to relocate from the western suburb of Watertown, also redesigned the building’s lobby, retail space and entrance. MC Real Estate Partners owns 110 Chauncy Street, which was originally constructed in the 1890s.
MINNEAPOLIS — Kraus-Anderson has begun a $2 million renovation project for Modist Brewing Co. in Minneapolis. Designed by Perkins & Will, the 7,000-square-foot renovation of Modist’s existing North Loop building will add new offices, a brewing lab and event space. There will be a two-story event space along with a pre-function bar and waiting area. Kraus-Anderson is working in partnership with J. Benson, a minority business enterprise contractor. Completion is slated for mid-July. Modist Brewing is located at 505 N. 3rd St. within the city’s warehouse district.
Multifamily transaction activity slowed in the second half of 2022 and continues to remain muted due to pricing uncertainty. U.S. multifamily sales totaled $187 billion in 2022, down 16.1 percent from $222.9 billion in 2021, according to Yardi Matrix. The Federal Reserve has raised its key short-term rate, the federal funds rate, nine times over the past year for a total of 475 basis points in an aggressive move to fight inflation. The Fed’s actions have led to a sharp rise in commercial mortgage rates, which have a significant impact on pricing, states Yardi Matrix. The 10-year Treasury yield, the benchmark for permanent, long-term financing, is now hovering around 3.5 percent, up from 2.3 percent one year ago. “In the current climate with inflation and rising interest rates, we’re a bit more cautious, but no less active in scouring the market for great investments,” says Tim Donovan, director of investments for Midloch Investment Partners. “Investment sales are happening in this market, including by us, but it’s generally taking longer for buyers and sellers to agree on a price, and for buyers to raise the equity required to meet lender terms for permanent financing.” In January, the Consumer Price Index rose …
NEW YORK CITY — Walker & Dunlop’s capital markets team has arranged $94 million in construction financing for the development of College Point Logistics Center in the College Point neighborhood of Queens, just across Flushing Bay from LaGuardia International Airport. A joint venture between Wildflower Ltd. and Drake Real Estate Partners is developing the project, with construction costs estimated at $146 million. College Point Logistics Center will be a ground-up warehouse and structured parking facility. The property will feature 81,000 square feet of rentable industrial space, as well as 160,000 square feet of enclosed parking across two floors and 68,000 square feet of surface-level parking. Wildflower designed the project with ground-floor warehouse space and multi-story parking to maximize the project’s efficiency and meet the needs of modern industrial and logistics tenants. College Point Logistics Center is located alongside the Whitestone Expressway, making it accessible to LaGuardia and John F. Kennedy International Airports, the New York and Atlantic Railways and the Red Hook Container Terminal. Development of the facility is scheduled for completion in the second quarter of 2024. Jonathan Schwartz, Aaron Appel, Mo Beler, Ari Hirt and Triston Stegall led the Walker & Dunlop team in securing the floating-rate loan on behalf of …
— By Jace Gan, Executive Vice President, Colliers — Before 2020, Orange County’s industrial base shrank due to developers opting to redevelop multifamily and creative office spaces. Historically tight market conditions limit the number of new leases, and rising interest rates price out many businesses looking to purchase a building. However, we are seeing a significant increase in industrial development across Orange County for the first time in a while. Orange County industrial properties have seen a pullback from institutions that were putting capital out the door. About 2.4 million square feet of new industrial space was constructed in 2022 — a significant increase over the 660,000-square-foot, five-year average. Setting Pace Most activity occurs in North County, which makes up 45 percent of OC’s industrial base. Irvine has remained the hub for more specialized uses related to aerospace, medical, etc. Key developments across the region are dictating the speed of future activity. Goodman recently developed a 1.5-million-square-foot, four-building logistics center in Fullerton. The overall size is rare for the OC, and was 89 percent pre-leased before completion. Samsung took two buildings totaling 1 million square feet. Sprouts took 337,000 square feet in another building. Sares Regis Group is redeveloping an …
HOUSTON — Ziegler has arranged $76 million in bond financing for Brazos Presbyterian Homes (BPH), a nonprofit seniors housing owner-operator based in Houston. The tax-exempt, draw-down bonds are supported by a three-bank syndicate comprised of Amegy Bank, Hancock Whitney and Trustmark. BPH owns and operates three continuing care retirement communities in Texas: Brazos Towers at Bayou Manor, The Hallmark and Longhorn Village. The bonds will fund an expansion project at Longhorn Village, refinance bonds from 2013 and pay the costs of issuance. The expansion project will add 48 independent living apartments to the community, as well as underground parking. Greenbrier Development is assisting with the development.
FORT WORTH, TEXAS — Samsung HVAC America, the Korean electronics giant’s North American heating and cooling products division, has signed a 132,000-square-foot industrial lease expansion at AllianceTexas in Fort Worth. The company, a longtime tenant at AllianceTexas, now occupies all 360,000 square feet of Alliance Gateway 55. Mark Becker, Jay Benner, Adam Cooke and Lou D’Avanzo of Cushman & Wakefield represented the tenant in the lease negotiations. Samuel Rhea and Reid Goetz internally represented the landlord, Hillwood.
HOUSTON — Lument has provided a $21.1 million bridge loan for the refinancing of Hermann Park, an 80-bed seniors housing property in Houston. The facility offers assisted living and memory care services. Doug Harper, Chris Mauger and Casey Moore of Lument originated the financing, which carried a 36-month term and a one-year extension option, on behalf of the borrower, California-based owner-operator Silverado.
LYNNWOOD, WASH. — MSquared has received $54 million in funding for Kōz on Alderwood, a 200-unit apartment development in the Seattle suburb of Lynnwood. Kōz Development is partnering with MSquared on the mixed-income, transit-oriented development. The project is being financed by $35 million in debt from Coastal Community Bank, $13 million in equity from MSquared and $6 million in equity from Kōz Development investors. Construction of Kōz on Alderwood is scheduled to begin in spring 2023, with a planned completion date of early winter 2025.
PEORIA, ARIZ. — Montecito Medical Real Estate has acquired Banner Health Center Peoria, a fully leased, 68,000-square-foot medical building in Peoria, for $29 million. The three-story medical office building features a multi-specialty ambulatory surgery center with three operating rooms, advanced imaging, and primary and specialty care. It is leased on a single-tenant basis to Banner Health. The center is a key outpatient location for Banner Health, serving its patients in the northwest Phoenix metro area. It is less than two miles from the 410-bed Banner Boswell Medical Center. JLL represented the seller, Banner Health, in this transaction. The JLL Healthcare Capital Markets Advisory team consisted of Mindy Berman, Matt Dicesare and John Chun, along with Phoenix market leader Pat Williams.