A combination of location and demand for e-commerce continues to drive industrial activity across New Jersey, spurring increased activity in the already robust northern and central regions of the state and driving a frenzy of activity in the south. Unlike some of the previous speculative booms, however, this one appears be carefully thought out and is likely to be sustainable. Northern and Central New Jersey We are seeing an enormous increase in the number of tenants interested in the market who face a limited supply. Across Northern and Central New Jersey, a record low vacancy rate of 3.4 percent is pushing rental rates to an all-time high despite a healthy but cautious building cycle. The region is an inherently attractive one, thanks to its proximity to New York City and Port Newark as well as the ability to reach 60-plus million people in the tri-state area in a matter of hours. Speculative development across North and Central New Jersey is ongoing, and we anticipate a number of legacy sites to be redeveloped during the next two- to five-year period. Of course, the 2008 recession remains on everyone’s mind. Accordingly, speculative velocity is not as robust as it was in previous …
WASHINGTON, D.C. — Meridian Group and affiliates of WeWork Property Advisors, an investment fund established by coworking firm WeWork, have created a joint venture to buy 1333 New Hampshire Ave. N.W., a 350,000-square-foot office building in Washington, D.C. Washington Business Journal reported the sales price was $136.5 million. Affiliates of WeWork Property Advisors are contributing 50 percent of the equity, and WeWork Cos. Inc. will lease more than 100,000 square feet of the building. Meridian plans to renovate the building, which is 84 percent leased to Akin Gump Strauss Hauer & Field, a law firm that has been in the space for 25 years. The firm is set to leave by August. Renovations are slated to begin next year and be completed in summer 2020. Collins Ege at Eastdil Secured represented the seller, Boston Properties, in this transaction, and Nicholas Seidenberg at Eastdil Secured represented the Meridian Group in its acquisition financing.
GAINESVILLE, GA. — Georgia Ports Authority will develop a new 104-acre inland port in Gainesville. Currently, containers moving by truck travel 600 miles roundtrip to and from the Port of Savannah. When the new rail yard opens, drivers will be able to make shorter trips from area manufacturers and distribution facilities to the northeast Georgia site. The port is slated to be complete in 2021. Gainesville is located along Interstate 985, about 55 miles northeast of Atlanta. In conjunction with the port announcement, Auto Metal Direct, a distributor of auto body panels and trim for classic cars and trucks, announced it will open a 318,000 square-foot distribution and fulfillment center near the port. Construction will begin soon, and upon completion, the $15 million development will bring 40 jobs to Hall County.
ORLANDO, FLA. — The Allen Morris Co. and Ustler Development Inc. have secured a $66 million construction loan for the Creative Village Parcel M Apartments in downtown Orlando, a $108 million development. Financing was provided by SunTrust Bank and Santander Bank. Affiliates of the developers provided equity, and Walker & Dunlop arranged an additional equity partner. The community is set to consist of a Class A, 14-story, 409-unit building across the street from the University of Central Florida (UCF) Downtown campus and Valencia College Downtown Campus that are set to open in August. Creative Village Parcel M Apartments is slated to be complete in mid-2020. The project team includes architect Baker Barrios and general contractor Brasfield & Gorrie. Creative Village Parcel M Apartments is part of the $1 billion Creative Village, a 68-acre mixed-use and transit-oriented community that will serve as the home to high-tech and digital corporations, as well as UCF and Valencia College students, employees and residents.
RALEIGH, N.C. — Halpern Enterprises Inc. has completed Leesville Market Place, a 62,880-square-foot retail development in Raleigh. Publix anchors the property, located inside Interstate 540 at the intersection of Leesville and Strickland roads. Situated adjacent to CVS, Walgreens, a medical office building and Leesville Towne Centre, Leesville Market Place will add tenants Hollywood Feed, Sport Clips and Noire the Nail Bar early next year.
DAVENPORT, FLA. — PREP Property Group Inc. (PREP) has purchased Posner Commons, a 460,565-square-foot shopping center in Davenport, seven miles south of Disney World’s main entrance. Built in 2008, Posner Commons is home to national tenants such as Dick’s Sporting Goods, Ross Dress for Less, JC Penney, Best Buy, PetSmart, Michaels and Cinepolis Theatre. The sales price and seller were undisclosed.
MINNEAPOLIS — Brickstone Partners Inc. and KMK Capital, in partnership with Deutsche Finance America, are developing LakeHaus, a 200-unit apartment community on Lake Calhoun in Minneapolis. The eight-story project will be situated on a 1.7-acre site at 3100 W. Lake St. The unit mix includes 36 studios, 85 one-bedroom units, 74 two-bedroom units and five penthouses. Amenities will include a rooftop swimming pool, clubroom, fitness center, lobby with coffee bistro, courtyards and grilling stations. Completion is slated for 2020. Kristian Lichtenfels, Josh Simon, Stella Pappas and Jules Sherwood of HFF arranged a construction loan through a national bank. The team also arranged mezzanine financing through EverWest Real Estate Partners. The development is valued at more than $119 million, according to HFF.
INDIANAPOLIS — Emma Capital has acquired two apartment properties in Indianapolis for an undisclosed price. Brandywine Apartments is a 296-unit community located at 8444 Rothbury Drive. The Hunt Club Apartments is a 200-unit community located at 5421 Calder Way. Both properties were built in the early 1970s. Emma Capital plans to rebrand the communities. Sellers were not disclosed.
TROY, MICH. — Bernard Financial Group has arranged a $28.5 million CMBS loan for the refinancing of Sheffield Office Park in Troy. The office property spans three buildings and 504,075 square feet. Office suites range in size from 773 to 32,000 square feet. Dennis Bernard arranged the loan on behalf of the borrower, Sheffield Owner LLC.
ARLINGTON HEIGHTS, ILL. — Avison Young has brokered the sale of a 123,944-square-foot office building in Arlington Heights for an undisclosed price. Northwest Community Healthcare (NCH) purchased the building, which is located at 3040 Salt Creek Lane. The company will relocate its non-clinical business operations and support services staff from a neighboring 50,000-square-foot property to fully occupy the new building. Mark Johnson of Avison Young represented NCH in the sale. The seller was not disclosed.