MOUNT VERNON, N.Y. — NorthMarq has arranged a $7.5 million loan for the refinancing of Lohman Village, a 31-unit seniors housing community in Mount Vernon, a northern suburb of New York City. The loan features a fixed interest rate with a seven-year term on a 30-year amortization schedule. Robert Ranieri of NorthMarq arranged the loan through PCSB Bank. The borrower was New York-based seniors housing owner Wartburg.
CONYERS, GA. — Brennan Investment Group has acquired 15.9 acres in Conyers to develop a 216,000-square-foot speculative industrial building. The site is located at 2082 E. Park Drive, 28 miles east of downtown Atlanta. The facility will include 32-foot clear heights, an ESFR sprinkler system, auto parking and trailer storage. Groundbreaking is scheduled for the third quarter, with completion expected in the third quarter of 2020. Bobby Mayson of Lavista Associates represented the buyer in the transaction. The seller and sales price were not disclosed.
OKATIE, S.C. — Hammes Co. has broken ground on a 70,000-square-foot medical office building in Okatie. Scheduled to open in late 2020, the three-story building will expand services in the surrounding area and supplement Beaufort Memorial’s existing acute care regional hospital. The new facility will provide primary care, OB-GYN, orthopedics, urgent care, cardiology, gastroenterology, neurology, vascular and general surgery, a breast health center, outpatient rehabilitation, laboratory and imaging services and a full-service cancer center. Hammes will develop, own and manage the property. Okatie is located 15 miles west of Hilton Head Island.
OPELIKA, ALA. — Colliers International has negotiated the $33 million sale of Paces at the Estates, a 270-unit apartment community in Opelika. The property offers one- and two-bedroom floor plans. Paces at the Estates is located at 4150 Academy Drive, about four miles from downtown Auburn. Communal amenities include a swimming pool, fire pit, courtyard, playground, 24-hour fitness center and bike storage racks. RREAF Holdings LLC, a Dallas-based real estate investment firm, purchased the property from Burt & Willis LLC. Brian Savage of Colliers represented the buyer in the transaction and Stephen Perlis, also of Colliers, represented the seller.
GAINESVILLE, FLA. — TSCG has brokered the sale of Gainesville Plaza, a 162,000-square-foot retail center situated along NW 13th Street in Gainesville. The center was 92.4 percent leased at the time of sale to tenants including Burlington, Ross Dress for Less, Sav-A-Lot, 2nd & Charles (a Books-A-Million concept), Lumber Liquidators and Hibbett Sporting Goods. The sale also includes a 1.4-acre outparcel fronting 13th Street that can accommodate 4,000- and 3,750-square-foot buildings. Gainesville Plaza was built in 1971 and renovated in 2014. Anthony Blanco of TSCG and his sales team represented the seller, an affiliate of a publicly traded REIT, in the transaction. An affiliate of Wicker Park Capital Management LLC acquired the center for an undisclosed price.
BIRMINGHAM, ALA. — Berkadia has arranged the $12.5 million sale of the Core 174 Portfolio, which includes four apartment complexes in Birmingham totaling 174 units. The portfolio includes Element 26, Fox Hall, Forest Park and 5th Avenue, all of which are located within three miles of downtown Birmingham. Core 174 was constructed between 1963 and 1978 and renovated between 2013 and 2015. David Etchison, Abe Maddox and Caleb Frizzell of Berkadia represented the seller, Birmingham resident Elton Stephens Jr., in the transaction. Birmingham-based Hughes Capital Partners acquired the portfolio at a 4.7 percent cap rate.
LOS ANGELES — Multifamily turnover, the percentage of total rented units not renewed each year, fell to 47.5 percent in 2018, its lowest level in at least two decades, according to CBRE. Five of the six major multifamily REITs recorded lower turnover in the first quarter of 2019 than the prior year. For AvalonBay, Camden, Equity Residential, MAA and UDR, the average annualized first-quarter rate fell by 200 basis points to 42 percent. Essex was the exception with a 100-basis-point rise to 41 percent. The REITs’ historical data also confirm that turnover has been falling for many years, argues CBRE. For example, Equity Residential’s first-quarter annualized rate of 39.2 percent was its lowest level since at least 2005. Benefits of lower turnover rates generally outweigh disadvantages. Turnover hurts a property due to loss of rent while the unit is vacant, possible rent concessions needed to release the unit and expenses to make it ready for a new renter. Turnover costs are at least $1,000 per unit and can easily rise to more than $3,000, according to the National Apartment Association. Yet, owners often achieve more rent growth when units turn. Higher turnover can be advantageous during periods where the market …
CHICAGO — Coworking giant WeWork has leased 89,500 square feet at 1155 W. Fulton St. in Chicago’s Fulton Market. The lease represents all of the office space within the building, which was acquired earlier this year by Barnett Capital Ltd. and Domus Special Situations Group and is undergoing a redevelopment. As originally developed, 1133 and 1155 were separate three-story industrial buildings. Through the redevelopment process, the new ownership has combined the buildings to create larger floorplates, add a fourth floor and convert the property into office and retail space. A rooftop deck and amenity space will wrap around the perimeter of the fourth floor. The property spans a total of 100,000 square feet. The location will serve as WeWork’s 13th location in Chicago.
OMAHA, NEB. — Grandbridge Real Estate Capital has provided an $88.3 million Freddie Mac loan for the refinancing of The Atlas Apartments in Omaha. The apartment complex was originally built as a hospital in 1977. NuStyle Development renovated the property into a 732-unit apartment property starting in 2018. Amenities include an indoor pool, fitness center, sand volleyball courts, conference rooms, clubhouses, bike storage rooms, grilling patios, a rooftop deck, rooftop pool and pedestrian bridge to Creighton University. Brett Olson and Jeff Witt of Grandbridge originated the 11-year loan, which features a fixed rate and a 30-year amortization schedule.
WASHINGTON, MO. — Melton Machine & Control Co. (MMCC) will celebrate its 50th anniversary early next year and move into a new headquarters and manufacturing facility in Washington, about 50 miles west of St. Louis. Contegra Construction Co. is building the 367,000-square-foot project, which will more than double the size of MMCC’s current operations and include a 74,000-square-foot corporate office, training and conference space. The facility is located on a 42-acre site in Heidmann Industrial Park. Joining Contegra on the project team are Gray Design Group, 21 Design Group, Case Structural Engineering, RJP Electric, Wiegmann Associates, Heggemann Plumbing, Bi-State Fire Protection and Washington Engineering & Architecture. Founded in 1970, MMCC designs and builds automated welding systems for a variety of industries, including automotive. The employee-owned company, which moved to Washington, Mo. in 1976, employs 132 workers and plans to add another 20 employees at the expanded operation.