SURPRISE, ARIZ. — Orion Investment Real Estate, along with Property Dimensions Real Estate Group, has arranged the sale of an 18.5-acre commercial land site located at the northwest corner of Litchfield and Cactus roads in Surprise. Veramonte Land Holdings sold the parcel to Terry B. Brodkin & Associates, as 18.5 Litchfield & Cactus LLC, for $2.2 million. The buyer is working with LGE to develop high-quality flex space at the back of the property, while frontage is being sold off as retail pads. Judi Butterworth of Orion and Cathy Cheshier of Property Dimensions represented the seller in the transaction.
DURANGO, COLO. — Marcus & Millichap has arranged the sale of Durango Town Center, a retail shopping center located in Durango. A private partnership led by David Spriggs of Denver-based DMS Real Estate sold the asset to a private local investor for $13.3 million. Ryan Bowlby and Drew Isaac of Marcus & Millichap represented the seller, while Brian Hagger, also of Marcus & Millichap, represented the buyer. Phillip Gause of Marcus & Millichap Capital Corp. placed financing on behalf of the buyer. Located at 1125, 1145 and 1185 S. Camino Del Rio, Durango Town Center features 41,781 square feet of retail space.
SPRINGFIELD, ORE. — Senior Living Investment Brokerage has negotiated the sale of ElderHealth & Living Memory Care Village in Springfield. Built in 1988 and expanded in 1996, the memory care community features 95 beds across 59 units. The facility is approximately 30,215 square feet and is situated on approximately 5.1 acres of land. A regional operator with multiple West Coast communities acquired the property for an undisclosed price. The seller, a local owner-operator divesting its only seniors housing community, will stay on as a consultant. A local bank provided a balance-sheet loan for the acquisition. Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage handled the transaction.
By Sam Greenblatt, CEO, Electra Capital Today, a growing number of risk-averse financial institutions are pulling back from the multifamily rental market, leaving owners and investors struggling to complete their transactions. Fortunately, however, private firms are stepping into the gap with alternative sources of debt and equity capital. As the COVID-19 pandemic disrupted the national economy this spring, banks tightened their standards on all types of loans, according to a recent Federal Reserve survey of senior loan officers. Nearly half the surveyed lenders reported that they had tightened standards on multifamily loans in the first quarter. That pullback can have a potentially crippling impact on multifamily transactions. Let’s say an investor seeking to purchase a $50 million multifamily asset has raised $12.5 million (25 percent) in equity with a bank loan due to provide $37.5 million (75 percent). But before the deal could close, the bank implements a tighter 60 percent loan-to-value (LTV) ratio limiting its senior financing to $30 million. Now, the investor or transaction sponsor needs to come up with an additional $7.5 million on short notice or the deal will fall apart. This is where alternative private capital firms can provide flexible, short-term financing solutions, including bridge …
DENVER AND LOS ANGELES — Data center developer and operator Vantage Data Centers has entered into a definitive agreement with an investor group led by Colony Capital Inc. (NYSE: CLNY) to form a $3.5 billion partnership that will expand Vantage’s data center platform in North America and Europe. The firms expect the agreement to be finalized toward the end of the month. As part of the agreement, the Colony-led investor group will invest $1.2 billion in Vantage’s portfolio, including 12 stabilized North American data centers that span more than 1.4 million gross square feet in Santa Clara, Calif.; Quincy, Wash.; Montreal; and Quebec City, Canada. Vantage’s management team, led by President and CEO Sureel Choksi, will continue to manage and operate these assets as part of its global data center footprint. The Colony-Vantage partnership will allow Vantage to develop and maintain top-performing data centers in new and existing markets. The Denver-based company has been expanding in Europe the past few months, entering Wales through its acquisition of data center campus Next Generation Data that was announced in April. Vantage also acquired data center provider Etix Everywhere in February. The deal included a data center under construction in Frankfurt, Germany. Vantage …
A “black swan” event, the COVID-19 pandemic has had a devastating impact on the hospitality sector, affecting everything from revenue to operating models and the ability for hotel owners to pay debt service, says Brian Waldman, executive vice president of investments for Peachtree Hotel Group. The insights from Waldman came last Wednesday, July 1, during a webinar he moderated on the current state of the hospitality sector. The session was titled “Distressed Hotels: Sourcing Debt and Equity, Acquisitions and Value-Add Strategies.” A group of panelists not only discussed the epic challenges currently facing the industry, but also the road ahead. IMN hosted the event, and panel participants included David Parsky, managing principal of Arris Investments; Krystal England, senior director of Canyon Partners Real Estate; Rani Gharbie, head of acquisitions and development for The Pod Hotels; and Andrew Gindy, principal of Walton Street Capital. “Fundamentals are very depressed, and as a result the industry is in a cash-preservation mode,” began Gindy. “Recovery in terms of demand will remain unclear until there is some sort of vaccine or therapeutic measure to be taken against COVID-19. Without a visible end in sight, those of us in the industry need to preserve cash. Folks …
NEW YORK CITY — JEMB Realty is nearing completion of 1 Willoughby Square, a 500,000-square-foot office building in Brooklyn. The 34-story tower will feature underground parking and various outdoor amenity terraces and green spaces. FXCollaborative designed the project and will also be the anchor tenant upon completion, which is scheduled for the fourth quarter. The development team notes that the project represents the first ground-up office project in downtown Brooklyn in decades.
PORTSMOUTH, N.H. — Cornerstone Realty Capital has arranged a $34 million construction loan for West End Yards, a 134-unit multifamily project that will be located in Portsmouth, just south of the Maine-New Hampshire border. The property will feature one-, two- and three-bedroom units with quartz countertops, stainless steel appliances and individual washers and dryers. Amenities will include a fitness center and multiple common areas with lounges. The borrower and developer is Boston-based Torrington Properties. The direct lender was not disclosed.
BOSTON — BioMed Realty, an owner-operator of life sciences real estate, has entered into a partnership with Cresset Development and Boston-based Novaya Real Estate Ventures to acquire the XMBLY Campus at Assembly Square in the Somerville area of Boston. The campus spans 162,000 square feet of office and life sciences space and includes 7.5 acres for additional expansion. The new ownership plans to add lab, research and development and traditional office space. A timeline for construction has not yet been established.
NEW YORK CITY — Walker & Dunlop has acquired Beler Advisory Group (BAG), a locally based independent real estate finance firm. Mo Beler, former principal at BAG, will join Walker & Dunlop’s New York City capital markets debt and equity team, which is currently led by Aaron Appel, Jonathan Schwartz, Keith Kurland and Adam Schwartz. Beler, a 15-year industry veteran who has closed more than $6 billion in debt and equity transactions in his career, founded the company in 2019.