CARROLLTON, TEXAS — Walker & Dunlop has arranged $18.4 million in refinancing for The Flats at Frankford Station, a 185-unit apartment complex located at 1652 W. Frankford Road in Carrollton. Property amenities include a putting green, pet spa, pool and an outdoor kitchen. Stuart Wernick and Matt Newton of Walker & Dunlop arranged the 10-year Fannie Mae loan on behalf of Frankfurt Properties LLC. A portion of the funds will be used to pay off existing construction debt.
ATLANTA — Healthcare Realty Trust Inc. (NYSE: HR), a healthcare REIT based in Nashville, has agreed to purchase 15 medical office buildings located in the metro Atlanta area from Meadows & Ohly for $612.5 million. More than 85 percent of the portfolio is located on hospital campuses, and all of the assets are associated with three leading health systems in Atlanta. The portfolio spans 1.3 million square feet and was 96.2 percent leased at the time of the deal announcement. The assets have an average building age of 9.7 years. The portfolio is expected to produce net operating income of $29.9 million in 2018. The portfolio includes nine properties totaling 772,400 square feet associated with WellStar Health System, including a 165,400-square-foot, off-campus facility currently under construction. Set to open in September, the asset is fully preleased to WellStar. The other eight facilities are situated on three hospital campuses and are nearly 60 percent leased to WellStar, which operates 11 hospitals and has a 21 percent market share, making it the leading health system in the Atlanta MSA. Three medical office buildings totaling 276,700 square feet are affiliated with Piedmont Healthcare, the third-largest healthcare system in the Atlanta market with 14.5 …
Total nonfarm payroll employment rose by 209,000 in July, according to the Bureau of Labor Statistics (BLS), beating expectations and boosting confidence that this expansionary phase of the economy still has legs. A panel of economists assembled by the Wall Street Journal predicted a net gain of 180,000 jobs. Job growth is always a welcome sign for the commercial real estate industry — especially when the numbers exceed expectations — because employment drives demand for all types of space. To dissect the latest job figures and identify some of the underlying trends, REBusinessOnline reached out to three real estate economists for their insights: Steve Hovland, director of research at Irvine, California-based HomeUnion Inc.; Ken McCarthy, principal economist and applied research lead for the U.S. based in Cushman & Wakefield’s New York office; and Ryan Severino, chief economist at JLL who works out of the New York City office. What follows are their edited responses. REBusinessOnline: From a commercial real estate standpoint, what did you find most encouraging about the July job numbers and why? Ryan Severino: We are in the ninth year of economic expansion, and business and professional services continues to represent about one-quarter of the job gains, both …
PHOENIX — Cathedral Development Group has completed the $33 million conversion of a historic luxury hotel in Phoenix into The Historic Westward Ho Apartments, an affordable seniors housing community. Originally built in 1928, the hotel hosted famed guests such as President John F. Kennedy, President Ronald Reagan, Jackie Gleason and Paul Newman throughout its history. Cathedral purchased the property in 1978 and has spent 40 years trying to preserve and restore the property. Cathedral Development Group utilized public/private programs to help fund three separate renovation projects. The renovations included new energy efficient heating and cooling features, a new plumbing system throughout the property to enhance water efficiency, new features in select units such as kitchen cabinets, floors, bathroom fixtures, energy efficient windows, a lightning protection system for the building and the restoration of the historic courtyard fountain. In a related but separately funded project, the first floor commercial space was remodeled and a long-term lease signed with Arizona State University. The property can now host up to 289 elderly and disabled residents. Based in Providence, R.I., Cathedral Development Group is working on projects in Rhode Island, New York, Maine, Connecticut, Arizona and Delaware.
CHICO, CALIF. — Fountain Residential Partners has broken ground on Campus Walk, a 174-bed student housing community located near California State University – Chico. The property will offer fully furnished two- and four-bedroom units. Community amenities are set to include study rooms, a pool deck with a movie screen, and a specially designed outdoor fitness and lounge area. Chico-based general contractor Modern Building Inc. is building the community, which Aspen Heights will lease and manage. The development is scheduled for completion in fall 2018.
LAS VEGAS — Blueprint Studios Trends has leased an 81,000-square-foot space within the Southwest Corporate Campus in Las Vegas that formerly served as the headquarters of International Gaming Technology (IGT). The campus is located at 7900 W. Sunset Road. The studio plans to use the space to produce designs for large-scale events, including tradeshows, general sessions, exhibit booths, summits and sales kick-off meetings. Southwest Corporate Campus was completed in 2007. Notable neighboring tenants include IGT, IKEA, Pepsi, UFC, Freeman Company, Scientific Games, Ainsworth and Switch. The Naseef Team of Colliers International represented Blueprint. Susan Borst, Dan Doherty, Chris Lane and Jerry Doty of Colliers International represented the landlord, Panattoni Development.
LAS CRUCES, N.M. — The 91-room Home2 Suites by Hilton has debuted in Las Cruces. The new hotel is located at 1120 N. Telshor Blvd. The property offers all-suite accommodations with fully equipped kitchens and modular furniture. It also features complimentary Internet and communal spaces. Trademark Home2 Suites amenities include Spin2 Cycle, a combined laundry and fitness area, Home2 MKT for grab-and-go items and the Inspired Table, a complimentary daily breakfast that includes more than 400 potential combinations. Home2 Suites is situated near downtown Las Cruces, Las Cruces International Airport, New Mexico State University, Veterans Memorial Park and Dripping Springs Natural Area. The pet-friendly property is owned by Las Cruces Hotel Partners LLC and managed by Kana Hotel Group.
NEW YORK CITY — Equicap has closed a $16 million bridge loan for two retail properties located in the Bay Ridge section of Brooklyn for an undisclosed borrower. The loan was used to acquire two Santander locations that were owned by Santander Bank. Both locations included accompanying retail space, some of which was occupied and vacant. Daniel Hilpert of Equicap arranged the financing for the borrower.
KING OF PRUSSIA, PA. — A joint venture between Merion PHC Holdings LLC and Moreland Development LLC has acquired an office property located at 950 Pulaski Drive in King of Prussia, approximately 20 miles northwest of Philadelphia. Hemar Realty Co. sold the asset for $8.2 million. The 40,000-square-foot property is currently configured as physicians’ offices, exam rooms and labs. Gary Leone and Steven Gartner of CBRE represented the seller in the deal.
NEW YORK CITY — Cleeman Realty Group has brokered two separate transactions in Brooklyn totaling $6.1 million. In the first deal, an undisclosed buyer acquired a three-story, 3,440-square-foot residential walk-up building in Brooklyn’s Fort Greene area for $2.5 million. The building features eight rental units, four of which are vacant. Zach Hering of Cleeman Realty represented the buyer and undisclosed seller in the transaction. In the second deal, an undisclosed seller sold a vacant mixed-use building located on St. Felix Street in Brooklyn for $3.5 million. The 4,600-square-foot property features five residential units and two floors of community space. The building has been vacant since it was built in 2007. Michael Cleeman of Cleeman Realty represented the seller, while Hering represented the undisclosed buyer in the deal.
