The office sector in Rhode Island’s commercial real estate market has seen a strong carryover and positive momentum from 2017, into 2018, which we continue to enjoy today. The market has seen positive absorption in most areas and with little speculative development on the horizon, lease rates are being affected accordingly. It’s safe to say, it is no longer a Tenant’s market. In Providence, vacancy rates are hovering in the 12 percent range, down from 16.5 percent just a few years ago. Recent projects include the redevelopment of South Street Landing, a $230 million dollar renovation of the former Narragansett Electric power station which is now home to the URI/CCRI Nursing School as well as some of the administrative offices of Brown University. Just a block away, construction is underway for the 191,000-square-foot Providence Innovation Center. This will be occupied by the Brown University School of Professional Studies, Johnson & Johnson and the Cambridge Innovation Center. The redevelopment of 75 Fountain Street, a 160,000-square-foot building, once fully occupied by the Providence Journal, has also enjoyed positive absorption. The redevelopment by Nordblom Company and Cornish Associates has attracted companies such as Tufts Healthcare, GE Digital and Virgin Pulse to join the Providence …
Atlanta is the logistics hub and economic engine of the Southeast, which is the fastest growing region in the country. Its 700 million square feet of industrial space makes it the fifth largest logistics market in the United States. Traditionally, population and job growth are key drivers of industrial demand, and Atlanta has had strong growth in each. The metro added 78,000 people in 2017, or nearly 214 new residents every day, which is reminiscent of the solid population growth of the 1990s when Atlanta averaged nearly 100,000 new residents every year. Additionally, Atlanta has had solid job growth, growing 2.5 percent last year, second only to Dallas/Fort Worth among the 12 largest metro areas in the U.S. E-commerce has caused a surge in demand for industrial space that has benefitted the Atlanta industrial market. Online retail sales now make up over 9 percent of total retail sales, according to the U.S. Census Bureau, up from 5 percent in 2012. A recent report from Cushman & Wakefield stated that while e-commerce accounted for just 5 percent of leases in 2013, it now commands over 20 percent of all warehouse leasing. As Amazon and others ramp up delivery times from two-day …
AUSTIN, TEXAS — New York-based Meridian Capital has arranged a $23 million loan for the recapitalization of a 344-unit apartment community in Austin. The community is located north of downtown on Cameron Road and features a pool, spa, on-site laundry and playground. Dov Jeremias and Brian Flax of Meridian arranged the loan, which featured an interest rate that was 200 basis points above the 30-day LIBOR rate, through KeyBank. The sponsor was not disclosed.
DALLAS — Roadtex Transportation Corp., a logistics firm specializing in transit of refrigerated goods, has signed a 27,901-square-foot industrial lease renewal at 10705 King William Drive in Dallas. Ryan Boozer of Stream Realty Partners represented Roadtex in the lease negotiations. Adam Graham and Ken Wesson of Lee & Associates represented the landlord, EastGroup Properties.
HOUSTON — NAI Partners has brokered the sale of a 23,000-square-foot warehouse located at 13735 FM 529 in Houston. The Class B, single-tenant property was built in 2014 and features 28-foot ceiling heights and two grade-level doors. John Ferruzzo, Nick Peterson and Ryan Searle of NAI Partners represented the seller, Southbelt Park Ltd., in the transaction. David Otis of Texas Shoreline Properties represented the buyer, GD Capital LLC.
PLANO, TEXAS — MYCON General Contractors has begun construction of a 20,000-square-foot ambulatory surgery center for local ophthalmology practice Brooks Eye Associates in Plano, a northern suburb of Dallas. Designed by Houston-based Browne McGregor Architects Inc., the facility will include two operation rooms, consultation and diagnostic areas, offices, and a reception area. Completion is slated for January 2019.
ANGLETON, TEXAS — Marcus & Millichap has arranged the sale of Old Ash Square, a 16,000-square-foot shopping center in Angleton, about 45 miles south of downtown Houston. The property was fully leased at the time of sale to tenants such as State Farm Insurance, Alamo Title and USDA. Justin Miller and Davis Hansen of Marcus & Millichap represented the seller, a local developer, in the transaction. Other terms of sale were not disclosed.
KEARNY, N.J. — Cushman & Wakefield has brokered the sale of Kearny Square, a 138,895-square-foot retail center in Kearny. The retail center was delivered in 2016 and is anchored by BJ’s Wholesale Club and ShopRite. Andy Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Seth Pollack, and Frank DiTommaso II of Cushman & Wakefield represented the seller, the original developer, in the transaction. Bentall Kennedy’s U.S. Core Fund purchased the property for an undisclosed amount. Kearny Square was 100 percent leased to 13 tenants at the time of the sale.
DETROIT — Bridging North America, a partnership of Fluor and ACS Infrastructure Canada, was selected to design, build, finance, operate and maintain the Gordie Howe International Bridge project for Windsor-Detroit Bridge Authority. The planned bridge and border crossing will span the Detroit River and connect Detroit to Windsor, Canada by linking I-75 and I-96 with the new extension of Highway 401 in Ontario. When complete, the bridge will be the longest cable-stayed bridge in North America. The scope of the project also includes building new ports of entry on both the U.S. and Canadian side of the Detroit River as well as improvements to existing infrastructure. Early work will start this summer in advance of financial close, which is set for this fall. Fluor and ACS will operate and maintain the facility for 30 years to performance standards that will be established by WDBA following completion.
MINNEAPOLIS — TH Real Estate has provided an $83.2 million loan for the refinancing of The Marshall near the University of Minnesota in Minneapolis. The Class A student housing community features 994 beds within 316 units. The property was developed in 2004 and was 98.9 percent occupied as of March 31. A joint venture between Schenk Realty Group and EdR owns the property. The fixed-rate loan features a 10-year term.