Property Type

Berkadia Arranges $12.5M Sale of Multifamily Portfolio in Birmingham

by Alex Tostado August 15, 2019

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.

August 15, 2019

Features Multifamily

CBRE: U.S. Apartment Turnover Rate Reaches Lowest Level in 20 Years, Signaling More Lease Renewals

by Kristin Harlow August 15, 2019

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 …

August 15, 2019

Illinois Leasing Activity Midwest Office

WeWork Leases 89,500 SF at Property Under Redevelopment in Chicago’s Fulton Market

by Kristin Harlow August 15, 2019

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.

August 15, 2019

Loans Midwest Multifamily Nebraska

Grandbridge Provides $88.3M Refinancing for Apartment Complex in Omaha

by Kristin Harlow August 15, 2019

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.

August 15, 2019

Development Industrial Midwest Missouri

Melton Machine to Occupy New 367,000 SF Headquarters in Missouri

by Kristin Harlow August 15, 2019

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.

August 15, 2019

Development Midwest Multifamily Ohio

Pizzuti Underway on 100-Unit Multifamily Development in Columbus

by Kristin Harlow August 15, 2019

COLUMBUS, OHIO — The Pizzuti Cos. is underway on the development of The Residences at The Sutton, a six-story multifamily project featuring 100 units and 123 parking spaces. The property is situated within the Short North neighborhood of Columbus, which is known for its art galleries, specialty shops, restaurants, pubs and coffee houses. Community amenities include a 2,000-square-foot rooftop deck, fitness center and package delivery room. Completion is slated for summer 2020. The Residences is the second phase of a multi-phase project, which includes a new mixed-use building located at 875 N. High St. The Offices at The Sutton is a four-story office and retail development that includes 45,000 square feet of office space and 12,000 square feet of ground-level retail space.

August 15, 2019

Development Industrial Midwest Ohio

Messer Breaks Ground on 73,000 SF Spec Industrial Building at Former Cincinnati Gardens Site

by Kristin Harlow August 15, 2019

CINCINNATI — Messer Construction has broken ground on a 73,000-square-foot speculative industrial building at 2249 Seymour Ave., formerly a parking lot for the Cincinnati Gardens complex. The Port of Greater Cincinnati Development Authority purchased the 19-acre gardens property in 2016 as part of its industrial revitalization strategy to create development-ready sites in order to attract advanced manufacturers to Hamilton County. Messer Construction bought a five-acre parcel from The Port for the construction of the new manufacturing facility and will develop it in partnership with Terrex Development. The project represents a $6.5 million investment, according to Tim Steigerwald, president and CEO of Messer. The project team includes BHDP Architecture, Colliers International and Fifth Third Bank. Completion is slated for next year.

August 15, 2019

Acquisitions California Multifamily Western

MG Properties Group Acquires Two Multifamily Assets in Los Angeles for $139.7M

by Amy Works August 15, 2019

LOS ANGELES — San Diego-based MG Properties Group has purchased two multifamily properties in Los Angeles for a total of $139.7 million. An undisclosed seller sold both properties. Totaling 397 units, the assets are The Enclave at Warner Center, which sold for $69.5 million, and Meridian Place Apartment Homes, which sold for $70.2 million. Located in Los Angeles’ Warner Center/Woodland Hills neighborhood, The Enclave at Warner Center features 195 units. Meridian Place Apartments, situated in Los Angeles’ Northridge district, features 202 units. MG Properties plans to enhance the interiors of the units and upgrade common area amenities at both properties. Greg Harris, Kevin Green and Joseph Grabiec of Institutional Property Advisors (IPA), a division of Marcus & Millichap represented the seller in the Enclave at Warner Center deal, while Sean Deasy and Blake Rogers of JLL represented the seller in the Meridian Place transaction. Brian Eisendrath, Brandon Smith and Cameron Chalfant of CBRE arranged acquisition financing for the deals.

August 15, 2019

Acquisitions Arizona Office Western

Harvard Investments, Lincoln Property Co. Sell Waypoint Office Campus in Metro Phoenix for $107.6M

by Amy Works August 15, 2019

MESA, TEMPE AND SCOTTSDALE, ARIZ. — Harvard Investments and Lincoln Property Co. (LPC) have completed the sale of Waypoint, a suburban Class A office campus located in Mesa, Tempe and Scottsdale. New York City-based Innovatus Capital Partners acquired the four-building asset for $107.6 million. Harvard and LPC developed the first 108,956-square-foot building at Waypoint in 2014 as a build-to-suit that was fully pre-leased to Verrda Mobility, formerly American Traffic Solutions. In 2016, the partnership completed the second 153,134-square-foot building. Additionally, the companies purchased two adjacent existing buildings to create the four-building, 426,951-square-foot Waypoint campus. At the time of sale, the campus was 98 percent leased. Tenants include Cognizant, Verra Mobility, Mitel, Ashton Woods, Beazer Homes, Nextcare, Udall Shumway and EPS Group. LPC serves as property manager for all four buildings and the company will maintain the management assignment as part of its almost 10 million-square-foot Phoenix property management portfolio. Dave Carder and Scott Boardman of Cushman & Wakefield are handling leasing for the property.

August 15, 2019

Acquisitions California Office Western

Intercontinental Real Estate, Harvest Properties Purchase 85,580 SF Office Building in San Francisco

by Amy Works August 15, 2019

SAN FRANCISCO — Intercontinental Real Estate Corp. and Harvest Properties have completed the acquisition and recapitalization of 400 Montgomery, a historic office building located in San Francisco’s Financial District. Located at the corner of California and Montgomery streets, 400 Montgomery features 85,580 square feet of office space. Constructed in 1901, the building has undergone a multi-million-dollar capital improvement program that included upgraded building systems and infrastructure, a new lobby, refreshed common areas and restrooms, as well as a complete façade restoration to preserve the building’s Renaissance/Baroque architecture and ornamentation. Additionally, more than half of the building’s space was redesigned as creative office space offering more than 13-foot ceiling heights, polished concrete floors and operable windows. At the time of sale, the building was 91 percent occupied by a variety of tenants, including Hexagone, Clearmetal, WE Communications, Lightsource Renewable Energy, Bank of Guam and Sterling Bank & Trust. Rob Hielscher, Michel Seifer, Erik Hanson, Cheri Pierce, Kristina Wollan and Michael Manas of JLL advised on the transaction.

August 15, 2019

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