LITTLE ROCK, ARK. — Grandbridge Real Estate Capital has provided a $26.1 million construction loan for The Residences at Harbor Town Apartments, a planned 175-unit community in Little Rock. Alan Tapie of Grandbridge’s Atlanta office originated the loan through HUD’s 221(d)(4) program, which is the agency’s flagship loan product for the construction of new market-rate apartments and affordable housing projects. The loan will feature a 40-year term, fixed interest rate and a 40-year amortization schedule. Situated along the Arkansas River, The Residences at Harbor Town will be within walking distance of the Clinton Library and downtown Little Rock. The property will be situated behind the planned Rock City Yacht Club and will add 80 more boat slips to the marina, according to development plans on the yacht club’s website. The borrower/developer and construction timeline were not disclosed.
MEMPHIS, TENN. — Woodyard Realty Corp. has brokered the $13.5 million sale of Phase II of 266 Lofts in downtown Memphis. Pittsburgh-based Alpha Capital Partners purchased the second phase, which was fully occupied at the time of sale. The seller, VS Developments, delivered the 74-unit second phase in late 2018 and the 77-unit first phase in 2017. Lea Heilig of Woodyard Realty represented the seller and procured the buyer. Phase II also added two street-level retail spaces leased to a restaurant/bar and a boutique salon. Situated in the South Main Arts district in Memphis, the three-story multifamily community features units ranging from 790 to 1,300 square feet and amenities such as a fitness center, pool and a poolside restaurant that delivers room-service meals to residents.
AUSTIN, TEXAS — HFF has arranged a loan of an undisclosed amount for the refinancing of the 278-room Aloft Austin Downtown and the 144-room Element Austin Downtown, the first dual-branded hotel in Austin that opened in July 2017. The property is located near the Sixth Street Entertainment District, the University of Texas at Austin and the State Capitol Building. Danny Kaufman, Christopher Carroll, Jeff Bucaro, Nicole Aguiar and Doug Opalka of HFF placed the debt through PGIM Real Estate Finance on behalf of the borrower, Indiana-based White Lodging. Proceeds from the loan, which carried a 10-year term and a fixed interest rate, will be used to retire the existing construction loan, repatriate a portion of sponsor equity and cover closing costs.
Assessors and their minions frequently take the position that an occupied store is more valuable than an unoccupied store, a conclusion commonly referred to as the “dark store theory.” Owners of big-box retail properties and their tax advisers bristle at this erroneous contention because real property taxes are just that — a tax on the value of the real estate. It is the assessor’s function to value the property’s real estate components, which consist primarily of land, bricks and mortar. In the case of most big boxes, the real estate components include land, concrete, pop-up concrete or metal slabs. It is a common but mistaken practice of assessors to place a greater taxable value on a big box occupied by a major retailer than on a vacant building of equal design, construction and utility. This errant valuation methodology has given rise to controversy played out through expert testimony and sophisticated argument before administrative agencies and the courts. It is in this context that the term “dark store theory” has come into play. A call to action Owners of big-box real estate need to deliver a consistent response in the face of this increasingly pervasive and costly misconception. And because informal meetings …
RICHARDSON, TEXAS — Los Angeles-based Stanton Road Capital LLC has acquired Campbell Glen II, a 210,000-square-foot office building located in the northeastern Dallas suburb of Richardson. The Class A building, which is currently vacant, was formerly 100 percent leased to AT&T. Stanton Road Capital will undertake a capital improvements program that will overhaul the property’s lobby and common areas and introduce new amenities, including a fitness center, tenant lounge and outdoor recreational spaces. Cushman & Wakefield will handle leasing of the property under the new ownership.
HOUSTON — Local firm HS Development will build The Edge at Langham Creek, a 115-unit apartment project that will be located in northwest Houston. The property will offer convenient access to Interstate 10, the Energy Corridor and Texas Medical Center West Campus. Mark Crosswell and Eric Kline of Berkadia arranged approximately $1.8 million in preferred equity through MidHudson Capital to complete the $18 million capital stack for the project. Construction is underway and the developer expects to complete the project by May 2020.
SAN ANTONIO — California-based direct lender Money360 has closed a $4.4 million bridge loan for the refinancing of an undisclosed office property in San Antonio. The loan featured a 24-month term, a fixed interest rate of approximately 7.8 percent and a loan-to-value structure of 69.8 percent. The borrower was not disclosed.
MORENO VALLEY, CALIF. — Brixton Capital has completed the sale of Towngate Center, a community shopping center located at 12625 Frederick St. in Moreno Valley. An Asian-Pacific-based 1031 exchange buyer acquired the asset for $50.9 million. At the time of sale, the 290,000-square-foot property was 95 percent occupied by national and regional credit tenants, including TJ Maxx/Home Goods, BevMo, Ross Dress for Less, Dollar Tree, ULTA Beauty, Regency Theaters, Planet Fitness, Chipotle and Wells Fargo Bank. Phillip Voorhees of CBRE’s National Retail Partners-West represented the seller in the transaction.
SAN ANTONIO — Harrington Industrial Plastics, one of the nation’s largest distributors of plastic products, has signed a 6,000-square-foot industrial lease at 4030 Naco-Perin Blvd. in northeast San Antonio. Roger Hill and Kyle Mueller of JLL represented the landlord, Aguja Holdings LLC, in the lease negotiations. The representative of the tenant was not disclosed.
HENDERSON, NEV. — MCR has purchased Hilton Garden Inn Las Vegas/Henderson, a hotel located approximately six miles from McCarran International Airport. Terms of the deal were not released. Located at 1340 W. Warm Springs Road, the hotel features 139 pet-friendly guestrooms with microwaves, coffee makers and refrigerators; free Wi-Fi; Rachel’s Kitchen, serving breakfast, lunch and dinner; The Pavilion Pantry, a 24-hour convenience store; 1,300 square feet of meeting and event space for up to 100 people; 24-hour business center; fitness center; heated outdoor swimming pool and hot tub; and on-site laundry service.