FORDS, N.J. — Marcus & Millichap has brokered the sale of King’s Road Office Center, a 37,135-square-foot building in Fords, located about 30 miles south of Manhattan. The property was 92 percent leased at the time of sale and fetched a price of roughly $4.3 million. Alan Cafiero and Brent Hyldahl of Marcus & Millichap brokered the deal on behalf of the seller, a limited liability company. Additional terms of sale were not disclosed.
MOUNTAIN LAKES, N.J. — Sunrise Senior Living has opened Sunrise of Mountain Lakes, a 99-unit assisted living and memory care facility located in the Northern New Jersey borough of Mountain Lakes. Nearby medical support is available to support care coordination and wellness though Saint Clare’s Denville Hospital and Morristown Medical Center. Information about starting rents was not disclosed.
NEW YORK CITY — Newmark has negotiated a 26,000-square-foot office lease at The Devlin Building, located at 459 Broadway in Manhattan’s SoHo District. Howard Kesseler and Alexander Kesseler of Newmark represented the landlord, The Chetrit Organization, in the lease negotiations. Sinvin Commercial Real Estate represented the tenant, F. Schumacher & Co., a designer of luxury textile products.
By Cecilia Hyun, Siegel Jennings Co. Since early 2020, the COVID-19 pandemic has upended lives and disrupted the normal course of businesses, including those in the commercial real estate market. As in many other sectors, however, this public health crisis has not affected all commercial properties equally. Real estate occupied by essential businesses such as grocery stores, sellers of household goods and warehouse clubs, for example, have weathered the pandemic well. A few have even increased their market share. By contrast, many office buildings, hospitality and non-essential retail properties have suffered severely. Taxing jurisdictions and assessors have responded to the crisis with varying degrees of success. The Ohio Legislature passed special legislation (spearheaded by Siegel Jennings Managing Partner Kieran Jennings) to allow a onetime, 2020 tax year valuation complaint for a valuation date of Oct. 1, 2020, since the usual tax lien date of Jan. 1 would not have shown the effects of COVID. Other assessors applied limited reduction factors to account for the sudden pandemic-induced decrease in property values. As values recover, it is important for taxpayers to monitor still unfolding consequences as they review their property tax assessments. Initially, hotels and experiential property uses suffered the steepest losses …
The pandemic isn’t entirely behind us yet, but many colleges and universities see the writing on the wall when it comes to funding future on-campus housing projects. Tighter budgets, more privacy, possible future closures, and nearly two years of delayed, deferred or canceled projects have driven a wedge between what establishments need to offer their students to remain competitive and what they have to work with. Enter public-private partnerships (P3). These arrangements between private investment firms and public universities have been bridging the funding gap for nearly 20 years. In a post-COVID world, however, their presence isn’t just appreciated, it’s vital in many instances. “COVID has shown how important P3 relationships are for institutions facing budget cuts and higher costs,” says Michael Leonczyk, director at Chicago-based Harrison Street. “There is a growing acceptance of P3s as a critical vehicle to allow higher education institutions to stay on the cutting edge when it comes to retaining and attracting students and ensuring they have access to resources that facilitate their academic and social lives. This includes housing, dining, parking, energy, water and athletics.” In 2003, there were three higher education P3 transactions, which totaled $100 million. By 2016, this number had swelled …
By Mark McAdams, Vice President, JLL While the Inland Empire is more well-known for its industrial real estate, the region’s office market has continued with its own success and stability pre- and post-COVID. As employees of office buildings seek refuge from high home prices in neighboring Los Angeles and Orange counties, occupiers equally appreciate the accommodating office rental rates while supporting their employee’s draw to the region. The current office market is in nearly the same place it was at the end of the first quarter of 2020 when COVID appeared on the scene. The overall market vacancy rate stands at 7.8 percent. Some of the submarkets have lower vacancies today than in the first quarter of 2020. Some smaller submarkets have seen even lower vacancy rates down to unprecedented levels at 3 percent to 5 percent. Only one submarket, San Bernardino, has a double-digit vacancy rate at 12.6 percent, and that is still considered healthy. Anything sub-10 percent is generally considered a landlord’s market. These are historically low vacancy rates that have rarely been seen since the area started developing the bulk of its office inventory in the mid-1980s. The pandemic put a hold on rental rate increases that had …
BOSTON — Indianapolis-based pharmaceutical giant Eli Lilly & Co. has unveiled plans for a $700 million institute for genetic medicine in Boston’s Seaport District. The opening is slated for 2024. The company has signed a 334,000-square-foot lease at 15 Necco St., a 12-story healthcare and life sciences building that Alexandria Real Estate Equities (NYSE: ARE) is developing. At the facility, Lilly will develop genetic medicines with a range of applications, including diabetes, immunology and central nervous system research. Curtis Cole, John Carroll III, Evan Gallagher, Tim Allen and Caitlin Mahoney of Colliers represented Eli Lilly in the deal. The site will also include a shared space modeled after Lilly Gateway Labs in San Francisco to support biotech startups in the Boston area. This area will afford users access to dedicated and configurable lab and office space and opportunities for collaboration with Lilly scientists. These companies are expected to generate as many as 150 additional new jobs once the space is fully occupied. The investment follows Lilly’s 2020 Prevail Therapeutics initiative, which centered on the launch of a gene therapy facility in New York City. Lilly projects that within five years, employment at the Boston facility will grow from 120 to …
KISSIMMEE, FLA. — TrueRate Services has arranged a $42 million loan on behalf of Kingswood International for the refinancing of The Reunion Resort in Kissimmee, about 22.6 miles from Orlando. Dan Gorczycki and Peter Stobierski of TrueRate Services secured the capital from an undisclosed New York-based finance company. The $42 million financing included a $34 million loan from Hillcrest Finance and an $8 million mezzanine loan from Trawler Capital. Both loans had three-year terms with two one-year options. Located at 7593 Gathering Drive, The Reunion Resort spans over 2,000 acres off Interstate 4. Resort amenities include three golf courses, tennis courts and academy, a spa and fitness center, 25,000 square feet of conference facilities, seven restaurants, 11 swimming pools and a five-acre water park. The Reunion Resort owns 25 villas, but an additional 271 villas and 87 homes participate in the resort’s rental management program. Since purchasing the property in early 2019 from LRA Orlando LLC, the previous owner invested $9 million in renovations. The loan proceeds will be used to pay off the existing acquisition loan, relocate golf holes and expand the water park.
AUSTELL, GA. — Rancho Santa Margarita, Calif.-based Kairos Investment Management Co. has acquired Walton Crossing, a 238-unit affordable housing community in Austell, about 17.8 miles from downtown Atlanta. The undisclosed seller, an affordable housing developer and investor, sold the property for $34.6 million. Built in 1990 on 20.1 acres, Walton Crossing offers one-, two- and three-bedroom floorplans. Unit features include fireplaces, extra storage space, balconies and patios, walk-in closets and energy-efficient kitchen appliances. Community amenities include a pool, private fitness center, playground, tennis and sport court, gazebo, classrooms and community space. The property also includes an adventure center with a kitchen, which offers a complimentary after-school enrichment programs for the residents’ children. Most of the units are reserved for households earning 60 percent or less of the area median income (AMI). Kairos plans to install washers and dryers in the units and deploy Environmental, Social and Governance (ESG) programs to help conserve water at the property. Located at 1820 Mulkey Road, the multifamily community is situated 8.1 miles from Kennesaw State University and 24.8 miles from Hartsfield-Jackson Atlanta International Airport.
NASHVILLE, TENN. — The Preiss Co. has broken ground on Signature Music Row, a 105-unit multifamily project in Nashville. Raleigh-based Preiss partnered with Speedwagon Capital Partners on the development, and JLL arranged an undisclosed amount of construction financing through Memphis-based First Horizon. The construction timeline for the project was not disclosed. Signature Music Row will include studio, one-, two- and three-bedroom floorplans. The property will have 3,000 square feet of amenity space including a clubhouse, leasing office and fitness area. The property will also feature a sky lounge overlooking Music Row. Unit features will include Corian countertops with tile backsplash, two-tone cabinetry, stainless steel appliances, wood plank flooring throughout the unit and LED ceiling fans in each bedroom and living room. Located in Nashville’s Music Row submarket, the new development is situated near Vanderbilt University and The Vanderbilt University Medical Center. The property is also close to Bridgestone Arena and the Country Music Hall of Fame.