Property Type

Declining U.S. Industrial Vacancy Rates Tied to E-commerce Growth

by Haisten Willis August 4, 2016

The U.S. industrial vacancy rate dropped 20 basis points (bps) to 8.8 percent during the second quarter of 2016, largely driven by companies building or leasing warehouse space to meet continued demand for e-commerce shopping, according to CBRE. The decline marked the 25th consecutive quarterly drop in available U.S. industrial space. “Plummeting U.S. industrial vacancy rates signify that this sector of the commercial real-estate market is benefitting from increasing acceptance of the e-commerce model,” says Chris Roach, president of BBG Valuation, an independent national commercial real estate valuation and assessment firm headquartered in Dallas. “We anticipate this downward trend in vacancy rates will continue for at least the remainder of this year.” According to CBRE’s second-quarter U.S. industrial and logistics report, the national industrial market expanded for a 25th consecutive quarter, logging 66.2 million square feet of positive net absorption. This was up 8 percent over the previous quarter. At the same time, a total of 41.6 million square feet of new supply was added nationally, which failed to keep up with demand. The growing trend in e-commerce shopping is expected to continue to fuel demand for warehouse space, which is needed to store inventory for shipping directly to consumers …

August 4, 2016

Market Reports Michigan Midwest Midwest Market Reports Multifamily

Metro Detroit Apartment Market Finds Its Groove

by Christina Cannon August 4, 2016

Favorable hiring trends in metro Detroit have driven household formation to its highest point since the start of the new millennium. As a result, multifamily asset performance and operations have shown marked improvement with respect to demand, occupancy, rents and prices. In the first quarter of the year, local employers created 14,500 jobs for a year-over-year gain of 2.3 percent, which brought Detroit’s unemployment level to its lowest level since 2001. Employment advances were led by the professional and business services sector as well as the leisure and hospitality sector, which added 16,100 and 6,000 workers, respectively. Total employment at the end of 2016 is projected to be 1.9 percent higher than it was at the end of 2015. The generally higher paying professional and business services jobs will lead to broad-based employment growth through the rest of the year, and gains in this segment are expected to support growing demand for luxury rentals. In any event, rental demand in Detroit is on the rise for the foreseeable future. Construction takes off Encouraged by positive employment trends, economic indicators and a recovering automotive industry, new construction, renovation and conversion are thriving. Developers have new multifamily projects underway in more than …

August 4, 2016

California Multifamily Western

Decron Properties Buys Adagio at South Coast in Santa Ana for $96M

by Nellie Day August 3, 2016

SANTA ANA, CALIF. — Decron Properties has purchased the 349-unit Adagio at South Coast in Santa Ana for $96 million. The multifamily community is located at 3124 S. Main St. The garden-style property was built in the 1970s. Decron plans to renovate unit interiors with shaker-style cabinets, quartz countertops, stainless-steel appliances, vinyl plank flooring and in-unit washers and dryers. The seller was Prime Residential.

August 3, 2016

California Multifamily Seniors Housing Western

Sabra Plans to Divest 29 Genesis-Managed Skilled Nursing Facilities

by Nellie Day August 3, 2016

IRVINE, CALIF. — Sabra Health Care REIT (NASDAQ: SBRA) plans to sell off 29 of its 78 skilled nursing facilities currently managed by Genesis Healthcare Inc. The plan, announced on the Irvine-based company’s second-quarter earnings call, is the latest in a trend of publicly traded REITs reducing their exposure to skilled nursing. Last year Ventas spun off its skilled nursing portfolio into a separate REIT, and in May HCP Inc. announced it planned to do the same. As part of the deal, as the facilities are sold, Genesis’ rent will be reduced by 7.5 percent of the net proceeds from the sales. Sabra is currently under contract to sell five other Genesis-managed facilities. If Sabra completes those transactions and is able to sell the entire 29-property portfolio, it will reduce the number of Sabra-owned, Genesis-managed facilities from 78 to 43. If completed, Sabra estimates the sales will reduce the percentage of its revenue from skilled nursing from 51.1 percent to 24.9 percent, after sales proceeds are reinvested.

August 3, 2016

California Retail Western

Marcus & Millichap Arranges $6.7M Sale of Mt. Eden Shops Near San Francisco

by Nellie Day August 3, 2016

HAYWARD, CALIF. — Marcus & Millichap has arranged the $6.7 million sale of Mt. Eden Shops, a 10,184-square-foot retail property located at 25965-26250 Industrial Blvd. in the San Francisco suburb of Hayward. The property consists of two freestanding buildings on one parcel anchored by Starbucks Coffee and 7-Eleven. Vincent Schwab and Jeffrey Ida of Marcus & Millichap’s San Francisco office marketed the property on behalf of the seller, an undisclosed limited liability company.

August 3, 2016

California Retail Western

Coldwell Arranges $6.2M Sale of The Plaza at Gordon Ranch in Metro LA

by Nellie Day August 3, 2016

LAKEWOOD, CALIF. — Coldwell Banker Commercial Advisors has arranged the $6.2 million sale of The Plaza at Gordon Ranch, a 9,939-square-foot retail center located in the Los Angeles suburb of Lakewood. Scott Hook of Coldwell Banker Commercial represented the seller and buyer in the transaction. Both parties were undisclosed. 7-Eleven anchors the center, which consists of eight units.

August 3, 2016

California Multifamily Seniors Housing Western

Blueprint Brokers $6M Sale of 99-Bed Skilled Nursing Facility in California

by Nellie Day August 3, 2016

RIVERBANK, Calif. — Blueprint Healthcare Real Estate Advisors has arranged the sale of Riverbank Nursing Center, a 99-bed skilled nursing facility in Riverbank, approximately 90 miles east of San Francisco. The property was positioned as a value-add property in an underserved market. Neither the buyer nor seller were disclosed. Christopher Hyldahl was the lead advisor on the transaction, supported by Gideon Orion.

August 3, 2016

Industrial Texas

Stream, USAA Break Ground on 397,600 SF Warehouse in New Braunfels

by Haisten Willis August 3, 2016

NEW BRAUNFELS, TEXAS — Stream Realty Partners and USAA Real Estate Co. have begun construction on the I-35 Logistics Center located on I-35 in New Braunfels. Construction has commenced on the 397,600-square-foot, Class A warehouse with delivery expected in March 2017. Stream is developing the project to accommodate tenants from 87,000 to 397,000 square feet. The project will also offer up to 4.2 acres of I-35 frontage land, available for separate purchase.

August 3, 2016

Multifamily Texas

S2 Capital Acquires Two Apartment Complexes in Dallas

by Haisten Willis August 3, 2016

DALLAS — S2 Capital, a multifamily real estate investment company, has acquired River Oaks Apartments, located at 711 Brentford Place in Arlington, and The Grove at White Rock, located at 10429 Lone Tree Lane in east Dallas. River Oaks was built in 1983 and consists of 188 units. S2 Capital plans to spend $2.5 million on interior and exterior renovations for this complex. The project exterior, amenities and interiors will be renovated to compliment S2 Capital’s north Arlington portfolio that now consists of eight properties and 2,700 units. The Grove at White Rock has a total of 282 units and is located in the Lochwood neighborhood of east Dallas. S2 Capital plans to spend $5 million in both interior and exterior renovations for the property. S2 Capital plans to rename this apartment complex “The Zeke” after the Dallas Cowboys’ newest running back, Ezekiel Elliott.

August 3, 2016

Office Texas

ML Realty Arranges Two Industrial Leases at Park West in Coppell

by Haisten Willis August 3, 2016

COPPELL, TEXAS — ML Realty Partners LLC has signed two leases totaling 183,404 square feet in the firm’s 13-building Park West portfolio in Coppell, situated just north of Dallas-Fort Worth International Airport. The development includes nine existing, fully leased industrial buildings plus another four buildings under construction. ZS Pharma, a biopharmaceutical company, leased 98,015 square feet at 508 Wrangler Drive. HCA Health Services, a provider of healthcare services, leased 85,389 square feet at 631 Southwestern Boulevard. Brian Bachrach with Lincoln Harris CSG represented HCA in the lease transaction.

August 3, 2016

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