BETHLEHEM, PA. — NAI Summit has brokered the $5.5 million sale of a 48,000-square-foot industrial and research and development (R&D) facility in the Lehigh Valley city of Bethlehem. The facility features 32 clean rooms, warehouse space, an office area and a machine shop. Mike Adams and Sarah Finney Miller of NAI Summit represented the seller and former occupant, semiconductor manufacturer IQE, in the transaction. The buyer, German pharmaceutical company GfM Bremen, will also occupy the building.
YORK, PA. — Marcus & Millichap has negotiated the $2.9 million sale of a 10,000-square-foot medical office building in York, about 100 miles west of Philadelphia. The building at 1550 Rodney Road was fully leased at the time of sale to the University of Pittsburgh Medical Center. Spencer Koch, Scott Gould, Rory Shelby and Christopher Biuso of Marcus & Millichap represented the undisclosed seller in the transaction. The buyer was also not disclosed.
The Washington, D.C., office market is facing challenging times, marked by unprecedented vacancy rates, dwindling demand and a significant supply-demand imbalance. Within these constraints, the flight to quality trend is reshaping how investors and lenders view office assets and should lead to an inventory reclassification. The divide between high-quality assets and lesser properties widens almost daily, creating a bifurcated market with fierce competition for quality space. Meanwhile, older, less desirable properties languish, accumulating vacancies as they fail to meet current occupier expectations. Without intervention, the less desirable properties will continue to drag down the market’s perception, obscuring the success of top-tier spaces with a headline vacancy rate. To contribute to the stabilization of the market, office participants must acknowledge this divide and assess distressed assets not as liabilities, but as opportunities to reset and reclassify properties based on realistic usage and demand. Lenders are central to this process as they control a substantial portion of distressed office stock. After years of extending loans to stave off foreclosure during uncertain times, many are now realizing that relief is unlikely to materialize organically. As a result, foreclosures are already up 121 percent in 2024 year-to-date over 2023 in Washington, D.C. On average, …
HOUSTON — Global investment firm Stonepeak, which is headquartered in New York City, has acquired a portfolio of six industrial properties totaling 2.3 million square feet in Houston. The properties, the names and addresses of which were not disclosed, serve tenants in the logistics sector and are all located within eight miles of Port Houston. JLL acted as Stonepeak’s financial advisor in the transaction. The seller and sales price were not disclosed.
DALLAS — Creation, a developer with offices in Dallas and Phoenix, will build 635 Exchange, a three-building, 600,000-square-foot industrial project in North Dallas. The 36-acre site at the intersection of Interstates 35E and 635 formerly housed a City of Dallas landfill, and the new buildings will feature 32- to 36-foot clear heights. LGE Design Build is handling the architectural and general contracting aspects of the project, with construction scheduled to begin over the summer. Stream Realty Partners has been tapped as the leasing agent.
DALLAS — Los Angeles-based investment firm ShainRealty Capital has purchased Yorktown Luxury Apartments, a 226-unit complex located in the Kessler Park area of Dallas, for $39.5 million. Built in 2016, the property offers studio, one-, two- and three-bedroom units and amenities such as a pool, lounge and outdoor grilling and dining stations. Eric Calub, Caleb Jones and Paul Harris of Berkadia brokered the sale. The seller was Nuveen Real Estate. Arbor Realty Trust provided a $27.6 million CMBS acquisition loan to ShainRealty Capital that was structured with a five-year term, fixed interest rate of 5.88 percent and a 70 percent loan-to-value ratio. The new ownership will make capital improvements and has rebranded the property as Infinity on Yorktown.
WEBSTER, TEXAS — CBRE has brokered the sale of Baybrook Passage, a 189,334-square-foot shopping center in Webster, a southeastern suburb of Houston. Best Buy and Staples anchor the center, which was built in 2003 and was 97 percent leased at the time of sale. Other tenants include Boot Barn, Skechers and healthcare provider Memorial Hermann. Mark Witcher, Jolie Duhon, Chris Cozby, Jim Batjer and Harrison Tye of CBRE represented the seller, Gulf Coast Commercial Group, in the transaction. The local buyer, SLS Properties, was self-represented.
ARLINGTON, VA. — ZOM Living has completed construction on Hazel & Azure at National Landing, a 491-unit luxury multifamily complex in Arlington. Balfour Beatty was the general contractor on the project, and bKL Architecture served as the project architect. Situated at 3030 & 3130 S. Potomac Ave., the development comprises two towers — the 15-story Hazel and11-story Azure — as well as 8,900 square feet of ground-floor retail space. Urban Boxing will occupy 4,709 square feet in the Hazel tower, Coffee Republic will occupy 2,006 square feet in Azure and a third tenant will comprise the remaining 2,201 square feet of retail space in the Azure tower. Monthly rental rates at Hazel range from $2,180 to $7,010, and Azure’s rents range from $2,294 to $8,805, according to Apartments.com. Units come in townhome, studio, one-, two- and three-bedroom floor plans that range in size from 516 to 1,852 square feet. Amenities include a rooftop pool, outdoor deck and grilling area, clubroom, fireplace, fitness and wellness spa, yoga room, coworking spaces, a self-serve resident market and a pet spa for dogs. The complex also offers concierge and white glove package delivery services and electric vehicle charging stations.
WASHINGTON, D.C. — Akridge and National Real Estate Development have begun welcoming residents to The Byron, a 384-unit apartment community in southwest Washington, D.C. The Byron is Phase I of The Stacks, a six-acre mixed-use campus. Upon completion, The Stacks will include 2 million square feet of space, including a hotel, offices, apartments, shops and restaurants. The development team for The Stacks includes Akridge, National Development, Bridge Investment Group, Blue Coastal Capital and institutional funds managed by National Real Estate Advisors. Amenities at The Byron include a 10,000-square-foot Flex gym that features a sauna, recovery room and outdoor workout space, a multi-sport simulator, two rooftop pools, pet spa, serenity garden, TV lounge with an adjoined terrace, chef’s catering kitchen and gathering spaces. Additional conveniences include Capital Bikeshare and bike maintenance stations and an onsite resident market that is scheduled to open this summer, as well as The Passage, a pedestrian-only cobblestone street. According to Apartments.com, the 14-story building offers studios, one-, two- and three-bedroom units ranging in size from 432 to 1,565 square feet. Monthly rents start at approximately $2,230.
SOUTHAVEN AND OLIVE BRANCH, MISS. — JLL Capital Markets has brokered the sale of two distribution centers totaling 589,598 square feet in the Mississippi suburbs of metro Memphis. The properties include Stateline Building K in Southaven and Crossroads Building L in Olive Branch. Tulsa-based real estate firm Sealy & Co. was the buyer. The sales price was not disclosed. Motivational Fulfillment & Logistics Services leases the 347,604-square-foot Stateline K facility, and American Music Supply occupies the 241,994-square-foot Crossroads L property. Both assets feature 32-foot clear heights, ESFR sprinkler systems, parking spaces and flexible layouts to accommodate single or multi-tenant uses. Matt Wirth, Britton Burdette, Dennis Mirtchell and Jim Freeman of JLL represented the seller, IDI Logistics LLC, in the transaction. Jack Wohrman of JLL handles leasing efforts for the property.