SAN FERNANDO VALLEY, CALIF. — Matthews Real Estate Investment Services has directed the sale of a nine-property multifamily portfolio in San Fernando Valley. The portfolio traded for $20.2 million in an off-market transaction. The names of the seller and buyer were not released. Totaling 124 units, the portfolio consists of nine apartment buildings spread across the San Fernando Valley, a 250-square-mile urbanized region of Los Angeles County comprising 34 neighborhoods and nearly 1.7 million people. Daniel Withers and John Boyett of Matthews Multifamily division arranged the sale.
MONTANA — Blueprint Healthcare Real Estate Advisors has arranged the sale of two skilled nursing facilities totaling 338 beds in Montana. The seller is a national operator that was looking to leave the state to focus on other markets. The undisclosed buyer assumed the seller’s HUD debt against the properties. The price and locations of the facilities were not disclosed.
NORWALK AND CITY OF INDUSTRY, CALIF. — JLL Capital Markets has arranged the sales of two vacant retail assets located in Los Angeles County for a combined consideration of $4.8 million. Happy Sky Inc. acquired the 8,100-square-foot building, located at 11732 Rosecrans Ave. in Norwalk. Completed in 1950, the freestanding building is situated on 0.5 acres of land. The adjacent 29-stall parking lot was included in the deal. The buyer plans to convert the property, which was formerly occupied by Mega Shoe Factory, into a coin-operated laundromat. Bliss Car Wash purchased the 1.1-acre, two-parcel asset at 120 S. Hacienda Blvd. in City of Industry. Formerly a bank branch building with a drive-thru, the one-story, 5,500-square-foot building features 66 parking spaces on a rectangular lot. The buyer plans to demolish the existing building and construct an express car wash facility on the property. Adam Friedlander of JLL Retail Capital Markets represented the sellers, private investors, in each transaction.
TACOMA, WASH. — Ready Capital has closed $2.1 million in refinancing for an apartment building located in Tacoma. The undisclosed sponsor constructed the 10-unit, Class B asset in 2015. The non-recourse, hybrid-rate loan features a 20-year term (seven years fixed rate and 13 years floating rate), a 30-year amortization schedule and yield maintenance prepay.
AKRON, OHIO — Burns & McDonnell has signed a lease to occupy the entire third floor of a new speculative office building within White Pond Crossing in Akron. The engineering, architecture and construction firm will occupy 14,940 square feet upon completion of the 45,000-square-foot building this summer. White Pond Crossing currently consists of six buildings totaling 67,900 square feet. Stacy Tramonte of NAI Pleasant Valley brokered the lease transaction. Tramonte handles all leasing for the new spec building.
KANSAS CITY, MO. — StorageMart has acquired a Go Storage facility located on 8th Street in downtown Kansas City. The purchase price was undisclosed. The self-storage facility features 310 climate-controlled units. The property recently underwent a renovation and received a new elevator. StorageMart plans to make further improvements, including adding perimeter fencing, gates with keypad access, renovating the office and installing motion sensor lighting in the loading bay.
JOLIET, ILL. — Marcus & Millichap has brokered the sale of a 5,077-square-foot retail property net leased to Panera Bread in Joliet for $4.3 million. The building is located at 2400 W. Jefferson St. Austin Weisenbeck and Sean Sharko of Marcus & Millichap marketed the property on behalf of the seller, a developer. Karly Iacono of Marcus & Millichap’s New Jersey office represented the buyer, a limited liability company completing a 1031 tax-deferred exchange.
BROOKFIELD, WIS. — The Boulder Group has arranged the sale of a PNC Bank ground lease in Brookfield for $2.5 million. The single-tenant, net-leased property is located at 12821 W. Bluemound Road. The original 20-year ground lease commenced in November 2012. Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a Northeast-based real estate investor. The Midwest-based buyer completed a 1031 tax-deferred exchange. There are 2,459 PNC Bank branches nationwide.
In response to the outbreak of COVID-19, the disease caused by the novel coronavirus, industrial landlords in Dallas-Fort Worth (DFW) are demonstrating greater flexibility on short-term lease structures in order to keep deals moving forward. With most of the nation sheltering in place to stem the spread of the virus, e-commerce activity is accelerating, leading to greater demand for distribution and logistics services. In addition, supply chain operators that service essential industries — such as grocery, healthcare, construction and infrastructure — are working overtime to store and ship the necessary product to end users. In addition, many of these suppliers are also carrying more inventory. This is because are at interest rates are at historic lows, making it cheaper to stockpile goods and equipment, and because the global healthcare crisis has caused demand for certain foods, household products and consumer goods to skyrocket. All of this activity translates to short-term disruption in industrial real estate. Some deals are on hold, and the market is now seeing more unforeseen requirements from firms that need additional space for inventory storage, as well as from distribution and logistics users that are hiring more workers and shipping more product. “Several larger distribution companies are still …
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Walker & Dunlop: Rent, Lenders, Tech in the Midst of Coronavirus
In recent weeks, the ability of commercial real estate owners to access debt and equity has come into question as the novel coronavirus wreaks havoc on the economy. While some deals in the pipeline are still getting done, the debt markets took a pause as the pandemic took hold. Debt markets were waiting for clarity on how various sectors would react, according to Mark Strauss, managing director of capital markets, and Rob Quarton, director of capital markets, with Walker & Dunlop’s Irvine, Calif., office. The two recently spoke with REBusinessOnline via Zoom about the robustness of certain asset types, market stability, debt pricing and adoption of tech-heavy creativity in the wake of COVID-19 and its effects on commercial real estate nationwide. Commercial Real Estate Debt & Coronavirus Strauss and Quarton primarily work with institutional capital sources that provide capitalization for commercial real estate developers and owners. As such, they have a broad view of all debt markets and their willingness to fund. Debt funds are one of the most affected areas of the financial markets. “The way that debt funds finance their position behind the scenes — either using collateralized loan obligations (CLOs), bank warehouse lines or repo facilities — …