Property Type

Kayne Anderson to Acquire Sentio Healthcare Properties for $825M

by John Nelson May 4, 2017

BOCA RATON AND ORLANDO, FLA. — Kayne Anderson Real Estate Advisors (KAREA) has entered into a definitive merger agreement under which affiliates of KAREA will acquire Sentio Healthcare Properties Inc. KAREA will acquire all of the outstanding shares of Sentio in an all-cash transaction valued at $825 million. Sentio is a public, non-listed real estate investment trust (REIT), externally advised by Sentio Investments. The firm’s portfolio includes 34 seniors housing communities and medical office buildings located in 16 states across the United States. The Orlando-based company is financially backed by KKR (NYSE: KKR), a global private equity firm based in New York City. The merger would end KKR’s partnership with Sentio. Sentio’s board of directors has unanimously approved the merger, which is expected to close in the third quarter of this year. KAREA plans to increase the value of the Sentio portfolio through property renovations, facility expansions and other operational enhancements. KAREA is part of Kayne Anderson Capital Advisors LP, a $26 billion, Los Angeles-based alternative investment management firm with more than 30 years of experience in the energy, infrastructure, growth capital, real estate, middle market credit and distressed municipal sectors. KAREA, which operates out of Boca Raton, focuses on …

May 4, 2017

Industrial Market Reports Midwest Midwest Market Reports Nebraska

New Construction Starts, Low Vacancies Further Omaha’s Industrial Success

by Kristin Harlow May 4, 2017

Similar to the past couple of years, it is difficult to identify one or two items to highlight about the Omaha industrial market. Although the most impressive improvement might be the amount of new construction starts in 2016, factors such as sales prices per square foot, number of overall transactions, average asking rents, vacancy rates, landlord concessions all trended in a favorable direction for owners of industrial properties. This has been a staggering year- over-year trend, which has led many industry professionals to ask the same question: Is the market becoming too hot? User-driven projects over 100,000 square feet were the highlight of 2016, with multiple large projects breaking ground. Those users included Thrasher Inc., a rapidly growing, Omaha-based basement waterproofing and foundation repair company, which broke ground on its 209,000-square-foot office and warehouse facility located near 120th Street and Valley Ridge Drive; and Oxbow Industries, a Murdock, Neb.-based manufacturer, that is working with a developer on a new 140,000-square-foot facility at 150th Street and Schram Road. However, new construction starts for large projects were not the only storyline. Companies including Rotella’s Italian Bakery (6949 S. 108th St.) and State Steel (13413 Centech Road) made notable expansions to their existing …

May 4, 2017

Features Retail Top Stories

M&M: Positive Economic Forces Buoy Net-Leased Retail Sector, Despite Rising Interest Rates

by Kristin Harlow May 4, 2017

Steady growth of the U.S. economy will likely continue through 2017, benefitting a wide range of single-tenant, net-lease retail concepts that will dominate the development pipeline over the coming year, according to Marcus & Millichap’s latest Net-Leased Retail Research Report. The report details three aspects of the U.S. economy that are proving to be positive forces for the net-leased retail sector: job growth, consumer sentiment and core retail sales. Job growth gains averaged 195,000 positions per month over the last year, and the unemployment rate has fallen to 4.7 percent, the lowest level since 2007. The report also references an annual increase in average hourly earnings of 2.8 percent. Consumer sentiment posted its highest level since 2000, with expectations also elevated. The U.S. consumer confidence index is 11.9 percent above the average reading since the survey began in 1967. Core retail sales, defined as aggregate sales excluding automobile and gasoline sales, vaulted 5.7 percent year-over-year in February. Lead growth categories within the retail sector include e-commerce, food and drink establishments and health and personal care stores. As For Rising Interest Rates The postelection surge of the 10-year Treasury yield, as well as the Federal Reserve’s decision to increase the federal funds …

May 4, 2017

Features Multifamily Top Stories

MBA: First-Quarter Mortgage Originations Up 9 Percent Year Over Year

by Taylor Williams May 4, 2017

WASHINGTON, D.C. — Commercial and multifamily mortgage originations increased by 9 percent during the first quarter of 2017 on a year-over-year basis, according to the Mortgage Bankers Association (MBA). The results are based on the MBA’s Commercial/Multifamily Mortgage Bankers Originations index, which has tracked quarterly activity since 2002. The first quarter saw the dollar volume of loans for industrial properties increase by 40 percent compared with the first quarter of 2016. The volume of loans for healthcare and multifamily properties rose by 22 percent and 14 percent, respectively, during the same time frame. Loan production for all property classes was down 27 percent relative to the fourth quarter of 2016, but that was to be expected, says Jamie Woodwell, MBA’s vice president of commercial real estate research. “Commercial real estate borrowing and lending started 2017 on much the same footing it ended 2016,” says Woodwell. “Multifamily properties remain the key force behind overall origination trends. Matching, broader investment themes, financing for industrial properties also picked up while retail declined.” The dollar volume of loans originated by Fannie Mae and Freddie Mac during the first quarter represented a 33 percent increase from the same period a year ago. On the flip …

May 4, 2017

Industrial Texas

Developers Break Ground on 231,030 SF Flex Campus in Metro Austin

by Taylor Williams May 3, 2017

CEDAR PARK, TEXAS — Developers IGX Brushy Creek LLC and American National Insurance Co. Eagle LLC have broken ground on Brushy Creek Corporate Center, a two-building, 231,030-square-foot flex/industrial campus in the northern Austin suburb of Cedar Park. Situated on 16 acres along Brushy Creek Drive, the buildings will feature 48-inch dock-high doors and 24-foot clear heights. The general contractor, Cantera Design Builders LLC, is expected to deliver the project in August. AQUILA Commercial will serve as the leasing and sales broker on the project.

May 3, 2017

Healthcare Texas

HCA Holdings to Acquire Two Hospitals Totaling 417 Beds in Metro Houston, San Antonio

by Taylor Williams May 3, 2017

TOMBALL AND JOURDANTON, TEXAS — HCA Holdings, a Tennessee-based, publicly traded operator of more then 300 medical properties, will acquire two hospitals totaling 417 beds in Texas from subsidiaries of Community Health Systems. The two properties are Tomball Regional Medical Center, a 350-bed facility in the Houston metro of Tomball, and South Texas Regional Medical Center, a 67-bed facility in the San Antonio metro of Jourdanton. The transaction is expected to close this summer.

May 3, 2017

Retail Texas

Crayola Experience to Open 60,000 SF Location at Shops at Willow Bend in Plano

by Taylor Williams May 3, 2017

PLANO, TEXAS — Crayola will open a new Crayola Experience family attraction at the Shops at Willow Bend, a mall located at 6121 W. Park Blvd. in Plano. The 60,000-square-foot concept, which will be situated between the food court and Macy’s, will feature a 5,000-square-foot Crayola Store. Crayola expects to hire about 200 part- and full-time employees during peak employment at the new store, which is the fourth of its kind. The opening is slated for 2018.

May 3, 2017

Georgia Loans Multifamily Southeast

Eastern Union Funding Arranges $39.1M Acquisition Loan for Metro Atlanta Apartment Community

by John Nelson May 3, 2017

TUCKER, GA. — Eastern Union Funding has arranged a $39.1 million acquisition loan for Landmark at Mountain View, a 989-unit apartment community located at 110 Wood Bend Drive in Tucker, a suburb of Atlanta in DeKalb County. Marc Belsky and Jonathan Singer of Eastern Union Funding arranged the three-year loan through Arbor Commercial Mortgage on behalf of the borrower, a private investment group based in New York that purchased the property for $38 million. Built in 1986, Landmark at Mountain View was 92 percent occupied at the time of sale. Berkadia Real Estate Advisors represented the seller in the sale.

May 3, 2017

Alabama Arkansas Georgia Hospitality Kentucky Louisiana Mississippi South Carolina Southeast

R&R REIT Acquires 1,020-Room Hotel Portfolio for $35M

by John Nelson May 3, 2017

MISSISSSAUGA, ONTARIO — R&R Real Estate Investment Trust (R&R REIT) has agreed to acquire a portfolio of nine extended stay hotels in the Southeast and Midwest totaling 1,020 rooms for an aggregate purchase price of $35 million. The properties are currently owned and operated by entities controlled by R&R REIT’s Majid Mangalji and Michael Klingher. Five of the hotels operate under the HomeTowne Studios brand, and the remaining four operate under the HomeTowne Suites brand. The properties are located in Kentucky, Georgia, Mississippi, Arkansas, Louisiana, Alabama, Illinois and South Carolina. Blake, Cassels & Graydon LLP and Greenberg Traurig LLP acted as legal counsel to the REIT, and Raymond James Ltd. acted as financial advisor to the special committee charged with approving the portfolio acquisition. Following the closing of the acquisition, the REIT’s portfolio will comprise 10 hotels located in nine states.

May 3, 2017

Multifamily North Carolina Southeast

Colliers Brokers $20.8M Sale of Apartment Community in Greensboro

by John Nelson May 3, 2017

GREENSBORO, N.C. — Colliers International has brokered the $20.8 million sale of Hidden Lakes Apartments, a 483-unit multifamily community located in Greensboro. Living Well Homes purchased the asset from CORE Realty Holdings Management Inc. Will Mathews and Brooks Colquitt of Colliers represented CORE Realty in the transaction. Colliers has brokered five sales on behalf of CORE Realty in the past 10 months.

May 3, 2017

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