The continued emergence of the e-commerce sector, and continued healthy deal volume among New Jersey’s “traditional” industrial tenants are generating significant momentum for the state’s industrial market. This includes the food, retail and consumer products industries. Strengthening fundamentals have reinforced this theme consistently over the past 24 months, or longer. During 2015, robust demand for modern warehouse space fueled the markets along the New Jersey Turnpike, pushing the state’s warehouse and distribution vacancy to a 15-year low (6.4 percent). This marks a significant five-year drop from a peak of 11.2 percent at the close of 2010. Additionally, the state’s industrial net absorption reached an all-time annual high (12.5 million square feet). Of this, 84 percent occurred within warehouse/distribution product. Big-box demand continues unabated. Currently, we are tracking multiple 1 million-square-foot requirements — the most we’ve seen in many years. Additionally, and importantly, the heightened focus on last-mile delivery is drawing tenants to small and mid-size infill sites. These range from close-in locations providing immediate access to New York City and Philadelphia, to densely populated hubs all along the New Jersey Turnpike. As vacancy rates approach all-time lows and available inventory tightens, an increasing number of deals involve Class B assets. …
CARLSBAD, CALIF. — CBRE Capital Markets’ Debt & Structured Finance team has arranged a $43 million loan for Cornerstone Real Estate Advisers LLC to refinance Bressi Ranch Village Center, a retail center in Carlsbad. Michael Riccio and Mark McGovern of CBRE’s San Diego office secured the long-term, fixed-rate loan for the borrower. Delivered in 2010, the 116,403-square-foot center is 97 percent occupied by 30 tenants, including Stater Bros. and Trader Joe’s.
BOISE — CareTrust REIT (NASDAQ: CTRE), an investor based in San Clemente about midway between Los Angeles and San Diego, has acquired Shaw Mountain at Cascadia, a 98-bed skilled nursing facility in Boise, for $8.9 million. This deal was a sale-leaseback transaction with the seller and operator, Cascadia Healthcare LLC. The acquisition was funded by an 8.5 million-share equity offering that occurred in March.
FORT COLLINS, COLO. — US Property Trust has acquired Mulberry & Lemay Crossing, an 18,988-square-foot shopping center located in Fort Collins, for an undisclosed price. Walmart and The Home Depot shadow anchor the center. Tenants at the property, located at 1281 E. Magnolia St., include RadioShack, Supercuts, Silver Mine Subs, The UPS Store, Qdoba, Dairy Queen, GameStop, Papa John’s, State Farm and Chase Bank.
SANTA CLARITA, CALIF. — Hanley Investment Group Real Estate Advisors (HIG) has arranged the sale of Bouquet Center, a 148,903-square-foot, grocery-anchored shopping center located in the Los Angeles suburb of Santa Clarita. The price was not disclosed. Ed Hanley and Kevin Fryman of HIG represented the seller, a Los Angeles-based private investor, in the sale of the property to an undisclosed, publically traded REIT. Built in 1985, the center underwent a $7 million renovation in 2007. Tenants at the 95 percent occupied property include Vons, CVS/pharmacy, Ross Dress for Less, Chase, Citibank, Wendy’s, Baskin Robbins, Jersey Mike’s Sub, Little Caesars Pizza and Payless ShoeSource.
SAN DIEGO — Excel Trust has hired Luke Petherbridge president and CEO. Petherbridge currently serves as the CFO and treasurer of DDR Corp., a power center REIT with 352 value-oriented shopping centers. At DDR Corp., Petherbridge has overseen the execution of $5 billion worth of real estate transactions, raised over $9 billion of long-term capital and supported various strategic initiatives. A fund managed by Blackstone Real Estate acquired Excel Trust in 2015. Through additional acquisitions, the San Diego-based company’s leased and managed portfolio will have more than doubled to include over 80 retail assets covering 19 million square feet. The portfolio consists of high-quality, open-air shopping centers with concentrations in California, Texas, New York and Florida.
DALLAS — On behalf of Quadrant Investment Properties, CBRE has announced a number of capital improvements for Saint Paul Place. The Class A office building is a 22-story, 273,217-square-foot tower in the Dallas Arts District. Located at the intersection of North Saint Paul Street and Ross Avenue, Saint Paul Place overlooks the Dallas Museum of Art and Klyde Warren Park. Renovation plans include a new tenant lounge on the second floor complete with a conference center and outdoor patio deck with fire pit. The deck will extend to Ross Avenue and overlook the Dallas Museum of Art. Additionally, the espresso bar inside the building will be renovated to include areas for dining and working. The lobby will also receive an upgraded seating area and new Wi-Fi accessibility. Celeste Fowden, Seth Thatcher and Ben Davis of CBRE’s Dallas office are leasing the property on behalf of Quadrant Investment Properties. The tower was built in 1983 and is 80 percent leased to tenants including D Magazine, accounting firm Crowe Horwath and Sendero Business Systems.
ARLINGTON, TEXAS — In an all-cash transaction, SkyWalker Property Partners has acquired a 72,518-square-foot, Class A office building in Arlington. The property is the first for the company’s Opportunity Knocks Fund in preparation for the launch of a major capital campaign in June. The 40 percent leased office building at 701 Highlander Blvd. is located on the city’s south side, close to Arlington Highlands and Parks Mall. The 4.6-acre property includes a T-Mobile cell tower. At least $400,000 will be invested into addressing deferred maintenance and upgrading the 30-year-old structure. Roughly $150,000 is earmarked to remediate waterproofing issues with the roof, windows and granite-clad skin panels. The lobby will be getting new lighting, finishes and furniture. Upgrades are also planned for elevator cabs and common areas. The exterior plan calls for a new monument sign and landscaping improvements. Work is expected to get underway within 30 days. Twenty-six tenants-in-common investors, known as TIC-Highlander Building LLC, sold the five-story office building. The buyer, This Land is Highland, was represented by Gary Walker of Coldwell Banker Commercial Alliance DFW, along with Colt Power and Grant Irvin of NAI Robert Lynn. Paul Getty of Sperry Van Ness/First Guardian Group of San Jose, Calif., …
ROSENBERG, TEXAS — NewQuest Properties has finalized a 38,835-square-foot lease with 24 Hour Fitness Worldwide Inc. at the 550-acre Brazos Town Center in the Houston suburb of Fort Bend County. Site work is underway on a tract fronting FM 762 and adjacent to Spec’s Wines, Spirits & Finer Foods. The California-based fitness center pioneer is planning to open a sport club, one of four concepts in its portfolio, by year’s end. McLeod-Cobb and Bob Conwell of NewQuest Properties represented the landlord, while their colleague Jeff Hayes negotiated on behalf of 24 Hour Fitness. The project’s new tenant has more than 400 clubs nationwide and nearly 4 million members. The 99 percent leased Brazos Town Center is located at the junction of Southwest Freeway (I-69) and FM 762.
LEWISVILLE, TEXAS — Spec’s Wines, Spirits & Finer Foods, a shopping experience founded and operated by the same Houston family since 1962, has leased 25,908 square feet of retail space in Lakepointe Crossing, a power retail center located at 2416 S. Stemmons Freeway in Lewisville. Blake Shipp of The Weitzman Group handled negotiations as the leasing agent for Lakepointe Crossing. Jody Detmore of SFP Brokerage LLC represented Spec’s. Cencor Realty Services’ property manager, Susana Gandara, manages Lakepointe Crossing.