HARRISBURG, PA. — Marcus & Millichap has brokered the $12 million sale of a 927,828-square-foot industrial property in Harrisburg. The complex consists of eight buildings on a 21.3-acre site that are leased to tenants including PP&L Electric Utilities Corp., Capital Building Supply, Martin Logistics and Midwest Transport Inc. Craig Dunkle, Chad Thomason and Mher Vartanian of Marcus & Millichap represented the seller and buyer, both of which were limited liability companies that requested anonymity, in the deal. Sean Beuche of Marcus & Millichap assisted in closing the transaction as the broker of record.
EDISON, N.J. — Colliers International has negotiated the sale of a 30,000-square-foot medical office building in Edison, located roughly midway between Newark and Trenton. At the time of sale, the property was 83 percent leased to five tenants. Kim Kretowicz of Colliers represented the undisclosed seller and procured the buyer, private equity real estate firm Thomas Park, in the transaction.
By Taylor Williams For lenders and investors in New York City’s affordable housing market, accurately underwriting rent growth, operating costs and long-term asset appreciation can be a tricky proposition in today’s economic environment. To be fair, buyers and financiers of affordable housing properties in many U.S. markets are being forced to adjust and recalculate their metrics due to forces they can’t control. Yet macroeconomic factors like rising inflation, which puts heavy pressure on construction and operating costs, can often seem more acute in the Big Apple, where the cost of living and doing business is already higher than virtually anywhere else in the country. Economic Drivers The labor and materials costs for the renovations and rehabilitations that many affordable housing communities need are rising. According to Producer Price Index data supplied by the U.S. Bureau of Labor Statistics, for the month of August, the latest report available at the time of this writing, the aggregate cost of construction materials had risen by 19 percent from August 2019. Much of this rise in materials costs is due to disruption of the global supply chain via COVID-19, causing developers of much-needed housing stock to incur heftier budgets and longer construction timelines on …
AcquisitionsAffordable HousingCaliforniaDevelopmentLife SciencesMixed-UseMultifamilyOfficeTop StoriesWestern
IQHQ Buys Site in Bay Area to Develop New Elco Yards Life Sciences Campus
REDWOOD CITY, CALIF. — IQHQ, a private life sciences developer and owner with offices in San Diego and Boston, has purchased a “shovel-ready” development site in the Bay Area town of Redwood City that is fully entitled for mixed-use. The firm plans to develop Elco Yards, a project that will feature four life sciences buildings and two residential communities, as well as green space open to the public. The four office buildings will span 600,000 square feet and include laboratory, meeting and research and development space. The buildings are designed to meet LEED Gold standards. “Elco Yards represents an iconic project in a thriving life sciences market with a proven track record of attracting top companies and diverse talent,” says Steve Rosetta, CEO of IQHQ. “We are excited to advance this project, which is fully entitled and well-positioned to address the unmet demand for premier lab space in the Bay Area.” The multifamily portion will include two communities totaling 540 units. IQHQ is partnering with Charleston, S.C.-based Greystar for the residential component, which will feature 147 income-restricted units, according to Redwood City Mayor Diane Howard. “We look forward to Greystar’s continuing involvement and the creation of much-needed housing in Redwood …
SOUTH DAYTONA, FLA. — The Klotz Group of Cos., a Jacksonville, Fla.-based private equity real estate investment platform, plans to develop the Halifax Riverfront Residences & Marina, an $85 million mixed-use multifamily and marina project in South Daytona. Klotz, in partnership with KABR, purchased the site in September 2020 for $1.6 million and immediately began working with the City of South Daytona to review and approve the project. The partnership expects to break ground in late 2022, and construction is expected to take about 24 months. Located at 2941 S. Ridgewood Ave., the Halifax Riverfront Residences & Marina will include 330 residential units, more than 15,000 square feet of commercial space and 145 boat slips. The project will have dockside restaurants and a tiki bar.
SAN DIEGO — Berkadia has secured a $148 million loan for the refinancing of Town & Country Resort in San Diego. The borrower is a partnership between Lowe and Atlas Hotels. Scott Hall and Aaron Lapping of Berkadia arranged the floating-rate loan through Värde Partners for the borrower. Situated on 31 acres in San Diego’s Mission Valley submarket, Town & Country Resort features 671 guest rooms, five food and beverage outlets, two resort pools, a water slide and more than 292,000 square feet of indoor and outdoor meeting space. CoralTree Hospitality Group manages the resort.
WILMINGTON, N.C. — Middleburg Communities, a Vienna, Va.-based multifamily development, investment, construction and management company, has completed the disposition of Mosby at Riverlights, a 250-unit, Class A apartment community in Wilmington. Boca Raton, Fla.-based RAS Realty Partners purchased the property for $63.8 million and plans to rebrand the property as Oasis at Riverlights. Developed and completed by Middleburg Communities earlier this month, Mosby at Riverlights features one-, two- and three-bedroom homes. Units feature granite countertops, hard-surface plank flooring, designer lighting and stainless steel appliances. Community amenities include a pool with outdoor cabanas, an 8,000-square-foot, two-level clubhouse with terraces and an outdoor kitchen with grilling areas. Located at 4027 Watercraft Ferry Ave., the property is situated 6.5 miles from downtown Wilmington, about 7.6 miles from the University of North Carolina at Wilmington and approximately 6.4 miles from Wilmington Riverwalk.
JUPITER, FLA. — Cushman & Wakefield has brokered the sale of Riverwalk Center, a 35,324-square-foot, Class A office building located in Jupiter. ESJ Capital Partners sold the property for $12.3 million. Anthony Librizzi of Cushman & Wakefield represented the buyer, an entity doing business as RJM Jupiter Riverwalk LLC, in the transaction. Librizzi will also oversee leasing at the property. Truist Wealth, a wealth management advisory firm, recently renewed a 10,930-square-foot lease at Riverwalk Center. Truist Wealth has been a tenant at the property since 2005. The new owner of the property will occupy the fifth floor. Located at 150 US Highway 1, Riverwalk Center sits within Jupiter Yacht Club, a master-planned, mixed-use development that includes five condominium buildings, a 23,150-square-foot retail and restaurant building and a protected marina. Built in 2003, the office property offers amenities such as garage parking.
KENNESAW, GA. — TSB Realty has negotiated the sale of Bixby Kennesaw, a 656-bed student housing community located near the Kennesaw State University campus in Georgia, on behalf of Gilbane Development Co. TSB Capital Advisors helped to secure acquisition financing on behalf of the buyer, an undisclosed joint venture partnership. Bixby Kennesaw offers a mix of studio, one-, two-, three-, four- and five-bedroom units. Community amenities include a heated saltwater swimming pool, outdoor courtyard with fire pits, 24-hour fitness center and a rooftop terrace overlooking the university’s football stadium.
HOLLYWOOD, FLA. — FM Capital has arranged the $6.2 million financing of Lincoln Gardens Apartments, a 77-unit multifamily community in Hollywood. Sheridan Capital provided the loan, which was structured with an 80 percent loan-to-cost ratio and full-term interest-only payments. Noam Temchin of FM Capital arranged the financing for the borrower, Gelt Team. Located at 2711 Lincoln St., Lincoln Gardens is situated about 3.6 miles from Hollywood Beach, 7.6 miles from Fort Lauderdale-Hollywood International Airport and 10.5 miles from Fort Lauderdale. Built between 1952 and 1987, the property was 80 percent occupied at the time of financing. Community amenities include a pool, courtyard and parking.