BOULDER, COLO. — KeyBank has arranged $50.4 million in total combined financing for a tax-exempt bond transaction to support Koelbel & Co.’s construction of Diagonal Crossing. Located in Boulder, Diagonal Crossing will feature 105 garden-style apartments for families earning at or below 60 percent of area median income. KeyBank’s Community Development Lending & Investment (CDLI) team provided a $24.7 million construction loan and $10.4 million in Low-Income Housing Tax Credit equity. Additionally, KeyBank Real Estate Capital arranged a $15.3 million permanent loan through a forward commitment for Fannie Mae to issue a mortgage-backed security. Diagonal Crossing will be developed on two parcesl: Lot 3 and Lot 6. Lot 3 will feature 85 affordable housing units in two three-story buildings and one two-story building, while Lot 6 will feature 20 affordable housing units across four buildings. Sarah Geis and Beth Palmer Wirtz of KeyBank’s CDLI team collaborated with Jeff Rodman of KeyBank’s Commercial Mortgage Group on the financing for the project.
MESA, ARIZ. — Santa Barbara, Calif.-based Pacifica Real Estate Group has acquired Pecos Gateway Business Park in Mesa from Mesa-based Boomerang Capital Partners for $14.6 million. Located at 8743 E. Pecos Road, the three-building, multi-tenant property features 125,896 square feet of industrial space. Built in 2008 and situated on 10.5 acres, the asset features 18-foot to 23-foot clear heights, 11 dock-high loading doors, 29 grade-level loading doors and suites ranging in size from 2,000 square feet to 17,500 square feet. At the time of sale, the property was 100 percent occupied. Bob Buckley, Tracy Cartledge and Steve Lindley of Cushman & Wakefield’s Phoenix office represented the seller in the deal.
COLORADO SPRINGS, COLO. — Marcus & Millichap has arranged the purchase of Eagleview Apartments, a multifamily property located at 1803 Prairie Road in Colorado Springs. A private local investor acquired the property for $8.7 million. Built in 1968, the 52,000-square-foot building features 65 two-bedroom/one-bath units, covered parking, a swimming pool, fitness center and on-site laundry. Brian Haggar of Marcus & Millichap represented the buyer, while Phillip Gause, also of Marcus & Millichap, secured acquisition financing for the buyer. The name of the seller was not released.
The Hawaii investment sale market was active in 2018 with an abundance of capital seeking investment opportunities throughout the state and across all product types. Mortgage availability from local banks and non-local financiers remained strong, and there was a steady flow of new interest from debt and equity sources looking for first opportunities in Hawaii. Last year’s transaction volume (including entity level) was up 33 percent from 2017 to $5.5 billion. Institutional and cross-border investment volumes were up from 2017 and performing well above the 10-year average. It was a slower year for private investors and REITs, though institutional capital from Singapore, Zurich, Kuwait, Germany and Japan were the foreign standouts in 2018. Entity-level activity boosted Hawaii’s transaction volume significantly in 2018. We anticipate this story to continue to spill over into Hawaii through 2019 as institutions deploy large amounts of capital to build scale. Brookfield’s acquisition of GGP was the largest entity-level transaction, which included the 2.5 million-square-foot Ala Moana Center with its two office buildings consisting of about 400,000 square feet, the Whalers Village in Maui and the Prince Kuhio Plaza in Hilo. The hospitality sector led the charge for the third year in a row with $2.45 …
From a manufacturing perspective, Oklahoma City has historically been considered a “tertiary market” when stacked against South Central and Midwest power players such as Dallas-Fort Worth (DFW), Houston, Kansas City, San Antonio, Austin and Denver. As large manufacturing users consider multiple markets in the Central United States, Oklahoma City is often included in the initial list but typically fails to make the short list for various reasons. However, as labor costs rise, Oklahoma City may find itself being pushed to the front of the line. Past Misses Oklahoma City’s industrial market totals approximately 108 million square feet, making it a smaller market than DFW, Houston, Kansas City, San Antonio, Austin or Denver. Primarily driven by the oil & gas, aerospace and consumer goods industries, this market’s fundamentals tend to move in lockstep with oil & gas commodity prices. The city has tried to diversify the economy over the past decade and bring in non-oil & gas users. But there is still room for improvement. The metro has seen its share of growth; however, overall industrial construction still pales in comparison to larger markets. Growing Appeal The industrial booms seen in DFW, Houston, Kansas City, San Antonio, Austin and Denver over …
MILWAUKEE — Hammes Partners has sold a 23-property medical office portfolio across nine states for $400 million. The Class A properties, totaling 979,000 square feet, are located in Virginia, Washington, North Carolina, Illinois, New York, New Jersey, Pennsylvania, Alabama and Texas. Mindy Berman and Steve Leathers of JLL Healthcare Capital Markets brokered the sale on behalf of Milwaukee-based Hammes. Giant healthcare REIT Welltower Inc. (NYSE: WELL) was the buyer, according to media reports. “Selling points included the portfolio’s alignment with major health systems, durable income and locations in strong metro markets,” says Berman. Hammes Partners is a private equity platform that invests on behalf of institutional investors, with a focus on the U.S. healthcare real estate market. Toledo, Ohio-based Welltower is a real estate investment trust that mostly invests in healthcare and seniors housing properties. — Kristin Hiller
Rhode Island — Talonvest has arranged a $17.4 million acquisition loan for a self-storage portfolio in Rhode Island. The three properties consist of 1,416 storage units across 177,575 square feet. Erich Pryor, Jim Davies, Tom Sherlock, and Terra Hendrich of Talonvest represented the borrower, Rosewood Property Co. in the transaction. The lender was a national bank. Terms of the financing included a 10-year, fixed-rate loan with interest-only payments for the full loan term. The three metro Rhode Island properties expand Rosewood’s portfolio to 48 self-storage properties across 12 states.
MAYNARD, MASS. — Capital Group Properties and SRS Real Estate Partners have announced that Market Basket Supermarket will be the anchor grocery store for the Maynard Crossing mixed-use project in Maynard. The 306,000-square-foot development is slated to open in the first quarter of 2020. The project will also include The Vue at Maynard Crossing, a 180-unit apartment complex developed by LeCesse Development as well as a 143-unit independent living community for seniors developed by Hawthorn Retirement Group. The project will also feature multiple restaurants, retail shops, fitness options and medical offices. Maynard is approximately 25 miles west of downtown Boston.
PLEASANT PRAIRIE, WIS. — Doheny’s has entered into a sale-leaseback agreement with STAG Industrial Holdings LLC for a 195,415-square-foot property in Pleasant Prairie. STAG purchased the industrial building for $16 million. Doheny’s, a swimming pool supply company, signed a long-term lease with the new ownership. Sam Badger, Whit Heitman, Brad Weiner and Jared Paff of CBRE represented Doheny’s in the transaction. Doheny’s has eight distribution centers nationwide.
ELGIN, ILL. — The Boulder Group has arranged the sale of a single-tenant property net leased to Jewel-Osco in Elgin for $14.8 million. The 69,129-square-foot building, located at 1660 Larking Ave., was remodeled in 2009. Jewel-Osco has approximately 19 years remaining on its lease. Randy Blankstein and Jimmy Goodman of Boulder represented both parties in the transaction. A Los Angeles-based real estate firm completing a 1031 tax-deferred exchange purchased the asset. A Southwest-based private real estate investment company was the seller.