MOORESVILLE, N.C. — Lowe’s Cos. Inc. (NYSE: LOW) has announced it will close all 99 of its Orchard Supply Hardware stores by Feb. 1. Founded in San Jose, Calif., in 1931 and acquired by Lowe’s in 2013, Orchard Supply Hardware operates locations in California, Oregon and Florida. Lowe’s is closing the stores to focus on its core home improvement business. “Our strategic reassessment is ongoing as we evaluate the productivity of our real estate portfolio and non-retail business investments,” said Marvin Ellison, president and CEO of Lowe’s, in an earnings statement. “While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy.” In addition to shuttering Orchard Supply stores, Lowe’s said it plans to “aggressively” tighten its store inventory, reducing lower-performing stock and increasing the depth of high-selling items. Mooresville-based Lowe’s increased sales 7.1 percent, year-over-year, in the second quarter of 2018. However, the company adjusted its full-year earnings and profits forecast to account for closing costs. The Orchard Supply closure is expected to cost the company between $390 million and $475 million. The company lowered the forecast for its full-year increase in sales from 5 percent to 4.5 percent. Store …
U.S. economic growth in 2018 is expected to be the strongest in three years. The steady momentum in the Cleveland office market fully supports this forecast. Overall vacancy rates in the Cleveland metro area align with national trends in the range of 12 to 14 percent, rental rates are increasing modestly with averages in the low $20s per square foot and the market for Class A office space continues to be very tight. Tenant improvement allowances offered by landlords are rising faster than rents in a competitive leasing environment, ranging from $20 to $60 per square foot. Larger, multi-floor blocks of quality space are becoming especially difficult to come by in both the central business district (CBD) as well as the suburbs, making new office construction projects more viable than in the past. Attraction, retention When it comes to attracting the best and brightest workforce, office occupiers are seeking vibrant, walkable locations, rich with amenities and character. Building owners and developers in the Cleveland CBD continue to introduce office conversion projects that bring more apartments downtown, helping in turn to strengthen the office market. The K&D Group is currently converting a portion of the iconic 52-story Terminal Tower to …
CUERO, TEXAS — Colliers International has arranged the sale of a 336,000-square-foot industrial complex in Cuero, located about 90 miles east of San Antonio. The property formerly served as a cotton weaving facility but will now function as the main Texas distribution center for the buyer, OHS Resources Corp., a Houston-based supplier of oil and gas drilling products. Jason Scholtz of Colliers represented the seller, MV Cuero Partners LLC, in the transaction.
HUTTO, TEXAS — Paradigm Metals, a provider of precision machining and sheet metal fabrication, will relocate its headquarters from Pflugerville to Hutto, a northern suburb of Austin. Paradigm Metals expects to invest about $10 million to acquire and develop a new facility within Innovation Business Park, a 72-acre development that broke ground in 2017. Construction of the new facility, which will initially house 250 employees, is slated to begin later this year. Paradigm Metals plans to begin relocating to the new facility in 2019.
CIUDAD JUAREZ, MEXICO — CBRE has negotiated a lease renewal for 277,424 square feet of warehouse and distribution space within Finsa Industrial Park in Ciudad Juarez, the sister city of El Paso. Anthony Mash of CBRE represented the tenant, Intermatic, a producer of energy control devices, in the lease negotiations. The landlord, Finsa – Cibanvo SA Institucion DE Banca, was self-represented. The new lease term is seven years.
HOUSTON — Florida-based Driftwood Hospitality has sold Hyatt House Houston Energy Corridor, a 116-room hotel located at 15405 Katy Freeway in Houston. The buyer was Houston-based Energy Corridor Hotels LLC, which acquired the asset for an undisclosed price. Michael Yu, Rahul Bijlani and Agrama Mannapperuma of CBRE, in conjunction with Ten-X Commercial through a managed bid process, represented the seller and buyer in the transaction.
MCKINNEY, TEXAS — Marcus & Millichap has brokered the sale of Powerhouse Business Complex, a 49,883-square-foot industrial building located in the northern Dallas suburb of McKinney. Adam Abushagur of Marcus & Millichap represented the seller and procured the buyer in the transaction. Both parties were private investors that requested anonymity.
NEW YORK CITY — CIT Group has arranged a $45 million construction loan for a nine-story, mixed-use condominium project in the Tribeca neighborhood of Manhattan. The project will be called The Cast Iron House and will consist of 13 condominium units as well as ground-floor retail. The financing will fund the development and restoration of the property. CIT arranged financing for the borrower, 361 Broadway Associates Holdings LLC, through and undisclosed lender.
HARRISBURG, PA. — Hotel owner-operator MCR has acquired the 107-room TownePlace Suites Harrisburg Hersey in Harrisburg. The price was undisclosed. The property is 10 miles from the 121-acre Hersheypark theme park in Hershey. Located at 450 Friendship Road, the hotel features free daily buffet-style breakfast, 24-hour fitness center, on-site laundry service and an indoor pool as well as a whirlpool.
NEW YORK CITY — Natixis has provided a $30 million loan for the acquisition of a five-story self-storage facility in the Ft. Greene neighborhood of Brooklyn. The property is located at 202-208 Tillary St. Kathy Anderson and Brad Domenico of Progress Capital arranged the financing on behalf of borrowers Joy Construction and Maddd Equities. The new owners plan to continue self-storage operations while they evaluate potential redevelopment opportunities.