IRVINE, CALIF. — ValueRock Realty Partner has purchased a retail property located at 16171 Lake Forest Drive in Irvine. An undisclosed seller sold the property for $9 million in an off-market transaction. Best Buy has occupied the 41,150-square-foot property since 2004.
GILBERT, ARIZ. — Walker & Dunlop Inc. has provided $17 million in Freddie Mac financing for American Orchards, an assisted living and memory care community in the Phoenix suburb of Gilbert. Completed in June 2016, American Orchards consists of two distinct buildings: The Sapwood Building with 38 assisted living suites and The Heartwood Building with 35 memory care suites. The 10-year, non-recourse, fixed-rate financing features two years of interest-only payments. The transaction will allow the borrower — American Care Concepts — to pay off existing bank debt while cashing out equity for future projects. Walker & Dunlop’s team included Kevin Giusti, Jeff Ringwald and Bill Jackson.
SAN DIEGO — BLT Enterprises has completed the renovation of a two-story, 77,000-square-foot office building located at 5454 Ruffin Road in San Diego’s Kearny Mesa submarket. The company originally acquired the property in 2017 and has converted it back to its original 54,000-square-foot footprint by removing the dated addition of a second-story office space constructed in the late 1980s. The renovated space features modern office, research and development, and flex space, as well as an enhanced parking ratio. Additional renovations include an updated exterior, new HVAC equipment and a new roof membrane. Ware Malcomb provided architectural services and Bycor General Contracting served as the contractor for the project.
AURORA, CO. — Hillcrest Development and Pathfinder Partners have completed a $1.6 million renovation and rebranding program at V-Esprit, a 100-unit seniors housing independent living community in the Denver suburb of Aurora. Previously known as the Shalom Park Senior Living Campus, the two companies acquired the property in 2017. Situated on 14 acres, the community features 40 patio homes and 60 apartments ranging from 725 to 1,373 square feet. Residents are restricted to those aged 55 and older. Renovations to the community include converting four one-bedroom apartment units into a clubhouse and card room, as well as refurbishing and modernizing the theater room, library, communal dining area and leasing office. Apartment interiors were also upgraded along with hallways and corridors. Hillcrest Development Group LLC is a Denver-based development company. Pathfinder Partners LLC is a San Diego-based firm specializing in opportunistic and value-add real estate investments.
HOUSTON — Retail follows rooftops, as the expression goes, but over the last decade in Houston, brick-and-mortar development and single- and multifamily construction have rarely moved at the same pace. Houston experienced a major housing boom in the years leading up to the oil downturn, which began in late 2014. A report from houstonproperties.com, which tracks the metro’s single-family market, notes that Houston topped the nation in new construction starts of single-family homes in 2013 and 2014. In addition, during that two-year stretch there were 28 high-rise apartment buildings under construction, and 83 additional high-rise multifamily projects either approved or proposed. Houston’s emergence as a strong-performing retail market in an era where brick-and-mortar shopping is on shaky ground was one of the key topics explored by real estate professionals at the second annual InterFace Houston Retail Real Estate conference. Crowds packed into the meeting rooms of the Royal Sonesta hotel in the city’s Galleria neighborhood on Tuesday, April 17 to hear about just how much new retail development the market can bear. Before retail development could catch up to the torrid pace of housing development, oil prices tanked, thousands of blue- and white-collar energy workers were laid off, housing prices …
TOLEDO, OHIO — Toledo-based healthcare REIT Welltower Inc. (NYSE: WELL) has entered into an 80/20 joint venture with ProMedica Health System to acquire Quality Care Properties (NYSE: QCP) for nearly $2 billion in cash. The joint venture will acquire the real estate of QCP’s principal tenant, HCR ManorCare, the nation’s second-largest nursing home chain. Toledo-based HCR ManorCare filed for Chapter 11 bankruptcy in March after struggling to pay rent to QCP, which owns nearly all of the facilities in which HCR ManorCare operates. QCP won a court approval earlier this month to acquire HCR ManorCare out of bankruptcy. QCP itself is a spin-off of healthcare REIT HCP (NYSE: HCP), which created the company in 2016 specifically to remove HCR ManorCare’s 320 properties from its portfolio. As part of the transaction, ProMedica has agreed to buy the operations of HCR ManorCare, making the nonprofit healthcare organization a national U.S. healthcare provider. “This acquisition will enable ProMedica to expand their service offering beyond acute care hospitals to include home health, post-acute care and residential memory care,” says Tom DeRosa, CEO of Welltower. The HCR ManorCare chain has more than 50,000 employees providing services in 450 assisted living facilities, skilled nursing and rehabilitation …
With asking rental rates increasing, an average vacancy rate of 5.7 percent and a low average asking rent per unit of just $855 per month, Omaha’s apartment market is increasingly attractive to national and regional investors. According to apartment research firm Reis, Omaha’s average asking rental rate has increased in every quarter for the past seven years, and is expected to increase by another 2.2 percent in 2018. While not stellar growth, it continues a steady march upward that has benefited owners in Omaha for quite some time. Driving the growth in rents is the balanced nature of the Omaha market coupled with Omaha’s strong underlying economy. From a population growth perspective, census data shows that Omaha’s metropolitan statistical area (MSA) has grown 1.2 percent per year since 2010, and is now estimated at 939,000 people. That steady trend is expected to continue for the foreseeable future, as Omaha’s population is projected to grow another 1.1 percent per year through 2022. In terms of absorption, Omaha has averaged an annual addition of 4,000 households over the past 10 years, according to Reis. Renters account for 34.3 percent of Omaha MSA’s housing units, translating to roughly 1,372 new renter households each …
HOUSTON — NAI Partners has negotiated the sale of a distribution center totaling 172,848-square-feet located at 175 Southbelt Industrial Drive in Houston. Clay Pritchett of NAI Partners represented the buyer, TTD Houston Realty LLC, a subsidiary of New England-based online furniture importer and distributor East-West Furniture LLC. The company will relocate its entire operation from the Boston area to Houston. Derek Russell and Larry Gray of Oxford Partners represented the seller, CLARK-ELLIOT LLC.
AUSTIN, TEXAS — HFF has secured approximately $19.9 million in financing for a project to convert 81,711 square feet of warehouse space in Austin into a creative office property. Branded UpCycle, the new office property will be located on Sixth Street in East Austin and will feature conference space, bike storage and a coffee bar. Robert Wooten and Eric Tupler of HFF placed the loan on behalf of the borrower, a joint venture between EverWest Real Estate Investors and WHI Real Estate Partners. An entity affiliated with Marathon Asset Management LP originated the loan, which features a three-year term and a floating interest rate. Proceeds from the loan will be used to complete the conversion by May.
KENNEDALE, TEXAS — Karr Self-Storage, a division of Marcus & Millichap, has brokered the sale of Kennedale Self Storage, a 324-unit facility in Kennedale, a southeastern suburb of Fort Worth. The drive-up, non-climate-controlled units total 36,810 net rentable square feet. Brandon Karr and Danny Cunningham of Marcus & Millichap represented the seller, a private investor who built the property in 1985, in the sale. A Dallas-based self-storage owner/operator purchased the property for an undisclosed price.
