Everyone is familiar with the expression “Rome wasn’t built in a day.” However, what most people do not know is that the second half of that phrase is, “but they were laying bricks every hour.” Bricklayers in Nashville are busy people these days, accommodating the demand for new commercial development. That’s not just a metaphor for the developers of record — the utility contractors, dirt movers, pavers, framers and roofers are all busy trying to keep up with the constant stream of construction. With record levels of construction comes the high demand for a skilled workforce to complete the necessary work. We constantly hear that approximately 30,000 people are moving to Nashville per year. However, a large amount of this new workforce via this in-migration are millennials looking to work in the IT or healthcare fields rather than skilled labor. If you were to ask any “bricklayer” what concerns them the most, almost assuredly the recruitment and retention of qualified labor will be at the forefront of the conversation. With the younger generation less likely to enter the blue collar workforce, why in 2017 did we see 6 million square feet of industrial warehouse space delivered? Make no mistake, that …
Property Type
BETHESDA, MD. — HCR ManorCare, an Ohio-based seniors housing operator, will file for Chapter 11 bankruptcy protection and transfer its management operations to its landlord, Quality Care Properties (NYSE: QCP). HCR ManorCare, which currently manages about 320 seniors housing properties, is the second-largest skilled nursing operator in the country. The company’s management contracts also span the assisted living, hospice and home care sectors. The move follows HCR’s declaration of approximately $385 million in delinquent rent payments. Reuters reports that the company’s total debt is roughly $7.1 billion and that QCP will put its own management teams in place at properties previously managed by HCR. Under the terms of the agreement, HCR’s operating subsidiaries will not file for Chapter 11 bankruptcy protection. The parent company’s name and brand will also remain in place, but as a wholly owned subsidiary of QCP. QCP itself is a spin-off of healthcare REIT HCP (NYSE: HCP), which created the company specifically to remove HCR ManorCare’s 320 properties from its portfolio. QCP and HCR have been in negotiations for months regarding hundreds of millions in unpaid rent. In addition, QCP will give up its REIT designation, as it will now both own and operate its properties. “This …
NEW YORK CITY — JPMorgan Chase has signed a 10-year lease to occupy 436,905 square feet of space at 390 Madison Ave., a 32-story office building slated to open this summer. L&L Holding Co. is undertaking the redevelopment of the 850,000-square-foot property in conjunction with New York-based Clarion Partners, acting on behalf of the New York State Common Retirement Fund. The lease includes 16 full office floors and two street-level retail spaces. JP Morgan’s office space will include a conference center, multiple outdoor terraces and several double-height amenity areas. The firm will also open a Chase bank branch on the ground floor. David Levinson, David Berkey, Andrew Wiener and Jim Traynor of L&L Holding represented the landlord and tenant in the deal.
HOUSTON — Arbor Realty Trust Inc., a publicly traded REIT and direct lender, has secured a $35.9 million loan for the refinancing of Nottingham Village, a 317-unit apartment community in Houston. The garden-style property was built in two phases in 1971 and 1983 and offers a saltwater pool and on-site maintenance. Ronen Abergel of Arbor Realty Trust secured the loan, which features a fixed interest rate and a 35-year term, through the FHA 223(d) program. About $500,000 of the loan proceeds will go toward renovating the property’s interiors and electrical systems. The borrower was not disclosed.
NEW YORK CITY — Rockwood Capital has received a total of $260 million in financing for 2 Grand Central Tower, the company’s office building located at 140 E. 45th St. in Manhattan’s Midtown East section. Approximately $60 million is new capital and $200 million will be used to refinance existing debt at the property. Built in 1981, the 44-story property features 650,000 square feet of office space. Rockwood Capital, BBR Partners, Cortec Group, Banorte Securities and the General Services Administration are tenants at the building. Diana Brummer and Elizabeth Akerman of Stroock represented Rockwood in the financing.
NEW YORK CITY — TerraCRG has brokered the sale of an apartment building located at 267 Flatbush Ave. in Brooklyn’s Prospect Heights neighborhood. An undisclosed buyer acquired the property for $9.7 million, or $919 per square foot. The four-story building features nine apartment units and one commercial unit. Morgan’s BBQ occupies the commercial space. Ofer Cohen, Dan Marks, Adam Hess and Daniel Lebor of TerraCRG brokered the transaction.
NEW YORK CITY — Union Investment has acquired a retail property located at 412 W. 14th St. in Manhattan’s Meatpacking District. Premier Equities sold the three-story property for an undisclosed price. The 17,000-square-foot property is Toyota’s new experiential retail concept, “Intersect by Lexus.” The location will give customers the opportunity to experience the Lexus brand in a high-end environment featuring a showroom, coffee shop, full-service restaurant and gallery space. The acquisition was made on behalf of Unilmmo: Global, an open-ended retail estate fund.
Spellman Brady Completes Interior Design for 87,700 SF Seniors Housing Community on Long Island
by Amy Works
PATCHOGUE, N.Y. — Spellman Brady & Co. has completed interior design work for Village Walk, a five-story assisted living community in the Long Island village of Patchogue. Carlisle Senior Living Communities, an affiliate of The D&F Development Group, is developing the 87,700-square-foot community. Spellman Brady & Co. is a St. Louis–based interior design firm specializing in senior living, healthcare and higher education.
DALLAS — Hill & Wilkinson has completed the renovation of 1217 Main Street, a 28,000-square-foot mixed-use building in downtown Dallas. Built in 1958, the property features four floors of office space and 2,500 square feet of ground-floor restaurant space. The renovation included upgrades to the building’s structural support system and façade. 5G Studio Collaborative served as architect on the project and Armstrong-Douglass served as structural engineer.
AUSTIN, TEXAS — Texas Realty Capital (TRC) has arranged a $14 million loan for the acquisition of Park Plaza, an office property with condominium and retail components in downtown Austin. Sun Life Assurance Co. of Canada provided the loan, which features a 10-year term and a fixed interest rate. The borrower was not disclosed.