ROSEVILLE AND ROCHESTER HILLS, MICH. — American House Senior Living Communities will add 40 units of memory care to its communities in the Detroit suburbs of Roseville and Rochester Hills. Virtus Real Estate Capital, a Texas-based private equity firm, arranged a loan through Talmer Bank and Trust to fund the expansion by American House, a Michigan-based operator. Each of the two new communities will include 40 units of licensed memory care and will share a campus with existing American House communities. REDICO is developing both projects. The Roseville community is set to open in September 2016, while the Rochester Hills community is scheduled to open in late 2016.
TAYLOR, MICH. — Friedman Integrated Real Estate Solutions has arranged a 40,489-square-foot industrial lease at a property in Taylor, approximately 18 miles southwest of Detroit. Trolley Investors LLC is leasing the space to KACE Logistics. The building is located at 21146 Trolley Industrial Drive. Bob Dabrowski of Friedman represented the tenant in the transaction.
In the Capital Region, an industrial/warehouse market with a little over 63 million square feet of space (spread over a 10-county area), vacancy rates have returned to pre-recession levels. It has been a long and steady climb out of a deep recessionary market, which hit this sector of the market the hardest during 2009. During that time, vacancy rates were hovering around the 11 percent mark. In the second quarter of this year, the regional vacancy rate stood at 7.3 percent. Compare this figure to the fourth quarter of 2014, when the vacancy rate was 8.9 percent. As a region, we are again enjoying the absorption of industrial space, as some regional operators expand and some new faces enter the market. We are constantly examining and reviewing the market to understand the current activity, and to anticipate and prepare for the coming trends and changes. So what has lead to the Capital District’s industrial/warehouse market recovery? Several factors are responsible. First and foremost, the overall recovery of both the national and local economies has played a significant role in our industrial recovery. According to the Bureau of Labor Statistics, the unemployment rate in the United States stood at 5.3 percent …
All of the property sectors in the Boston area are thriving, thanks to one of the strongest economies in the nation. As of April this year, the unemployment rate in Massachusetts was 4.7 percent and in Boston, it was 3.7 percent, according to the U.S. Bureau of Labor Statistics. Economists generally consider employment to be essentially “full” when unemployment rates dip below 5 percent. By comparison, the unemployment rates in neighboring states were 6.3 percent for Connecticut, 3.8 percent for New Hampshire and 6.1 percent for Rhode Island. The U.S. unemployment rate in April was 5.4 percent. Boston’s overall industrial vacancy rate at the close of the second quarter was 8.1 percent, according to CoStar, and includes warehouse/distribution space, flex space and R&D facilities. It was the fourth consecutive quarter that the vacancy rate has remained in the low 8 percent range. Overall net absorption has been negative this year: -82,364 square feet in the second quarter and -41,089 square feet in the first quarter this year. This compares with positive net absorption of more than 3.1 million square feet in the third and fourth quarters of 2014. However, we believe that the first half of this year is a …
SAN DIEGO — San Diego-based Zephyr has sold The Block, a 60,000-square-foot mixed-use site currently under development on Broadway in San Diego, to Vancouver, Canada-based Bosa Development. The final price was $33 million, according to The San Diego Union Tribune. Zephyr acquired the property in 2014 and received approvals to transform it into a mixed-use development. The incomplete re-development includes a 41-floor tower and 21-floor tower housing 498 residential units, a boutique hotel and retail space. Zoning of the site allows for development of up to 720,000 square feet. Currently, the property consists of 1950s-era retail, parking and office space. Bosa plans to demolish the existing structures and develop the mixed-use retail and residential community on the site. Joseph Wong Design Associates is the architect for The Block, which is estimated to cost at least $250 million.
ANAHEIM, CALIF. — Norman S. Wright Climatec Equipment of Southern CA has purchased a 63,774-square-foot industrial asset in Anaheim for $10.8 million. The building is located at 3325 E. La Palma Ave. The seller is La Palma/Miller Owner LLC. Mitch Zehner and Seth Davenport of Voit’s Anaheim office executed the sale.
GILBERT, ARIZ. — The Corporation of the Presiding Bishop of Church of Jesus Christ of Latter-Day Saints has purchased 10.4 acres of land in Gilbert for $4.2 million. The land is located at southeast corner of Val Vista Drive and Williams Field Road. Mark Wilcke of NAI Horizon represented the church in the transaction. Nate Worthen of Newmark Grubb & Frank represented the sellers, Arcus Williams Field-EP LLC and Pendleton Capital Partner LLC.
TEMECULA AND NOVATO, CALIF. — A real estate fund managed by Ares Management, in partnership with Citivest Commercial Investments LLC, has acquired two shopping centers located in Temecula and Novato, Calif. Acquisitions include Downtown Novato Center, a 98,000-square-foot retail center anchored by Lucky Supermarket in the North Bay region of the San Francisco Bay area; and Temecula Town Center, a 241,980-square-foot Target shadow-anchored shopping center located in Temecula. Terms of the transaction were undisclosed.
AUSTIN, TEXAS — HFF has arranged acquisition financing for Chez Moi, a 384-unit apartment community in Austin. Working on behalf of Griffis Residential, HFF placed the seven-year, 3.9 percent fixed-rate acquisition loan with a correspondent life insurance company. Chez Moi is situated on 21 acres at 12100 Metric Blvd. in north Austin with access to MoPac Expressway, I-35 and West Parmer Lane. The 94 percent-leased property features a variety of one-, two- and three-bedroom floor plans averaging 893 square feet. Community amenities include a swimming pool with sundeck, hot tub, outdoor fire pit, sand volleyball court, clubhouse, business center, dog park, car wash, nature trail and garage parking. Eric Tupler, Josh Simon and Casey Wenzel led the HFF debt placement team representing the borrower.
FORT WORTH, TEXAS — Ozburn-Hessey Logistics LLC has set up shop in the 100,500-square-foot Northpoint Trade Center Building II in Fort Worth, leasing the entire building for its sixth location in north Texas. Nick Talley of Dallas-based Bradford Commercial Real Estate Services represented the landlord, Exeter 700-751 Eight Twenty LP, in the transaction. Ozburn-Hessey, Northpoint’s new tenant at 731 Eight Twenty Blvd. in Fort Worth, has boosted occupancy to 94 percent in the 403,160-square-foot, four-building industrial project. The remaining vacancy totals 24,276 square feet. Developed in 1999, the project offers access to I-35 and Loop 820. Building II boasts 24-foot clear heights, 26 dock doors, a sprinkler system and 116 parking spaces on a 5.2-acre tract with 120-foot truck courts. Ann Huntington of CBRE represented Nashville-based Ozburn-Hessey in the lease transaction. The company maintains more than 36 million square feet of flexible warehouse space in at least 120 logistics centers worldwide.