Depending on who’s speaking, or what you’re reading, the forecasts for the 2016 Houston industrial real estate market run the full spectrum from bull to bear. Whether you are a landlord trying to fill a vacancy; a developer weighing the decision on whether to build or not; or an investor or a potential tenant looking for the best lease terms, your decision making is driven by a few key factors. These include the price of oil and where you think it is headed, the type of industrial facility you build/own/require, and in what submarket of Houston it is located. With current oil prices hovering in the low $30s per barrel, and threatening to go lower, you don’t have to look hard to find plenty of economists forecasting a rough 2016 for Houston industrial real estate. But that’s not the whole picture. No doubt the ongoing drilling downturn has hit the city hard. A recent survey was conducted of single-tenant manufacturing facilities ranging from 10,000 to 50,000 square feet in the West, Northwest and North Houston submarkets. The survey reported over 2.4 million square feet available in 120 buildings, with an additional 240,000 square feet under construction in 15 more buildings. …
ATLANTA — Post Properties has announced it will develop Post Centennial Park, a 438-unit, midrise apartment community located in Atlanta’s central business district. Development costs are expected to total $96 million. The luxury apartment project will be located adjacent to Centennial Park and within walking distance of the MARTA Civic Center and Peachtree Center rail stations and the Atlanta Streetcar. The community will include a mix of studio, one-, two- and three-bedroom apartments averaging 808 square feet. Post Properties forecasts market rents to average approximately $1,620 per month. Ten percent of the planned units will be designated as workforce housing, with rents forecast to average approximately $1,090 per month. Atlanta-based Post Properties currently has 2,290 units in six apartment communities under construction with a total estimated development cost of $478.6 million. The company expects to complete Post Centennial Park in mid-2018.
MIAMI BEACH, FLA. — Boardwalk Properties, a private multifamily ownership group, has purchased a 15-property, 240-unit apartment portfolio in Miami Beach for $59 million. The assets are located between 7th and 15th streets in Miami Beach’s South Beach district. Boardwalk plans to keep the existing property management team in place and invest in property improvements, including new roofing, paint for the exterior and common areas, central air conditioning, hurricane impact windows and doors, video cameras for security, laundry services, landscaping, energy efficient toilets and electrical and plumbing systems. Real estate attorney Neil Rollnick of Hinshaw & Culbertson LLP represented Boardwalk Properties in the transaction.
WEST PALM BEACH, FLA. — PRP LLC, a specialized real estate opportunity fund manager and value-add investor, has sold The Forum, a 278,367-square-foot, three-building office complex located in West Palm Beach. An undisclosed buyer purchased the asset for $20.5 million. Located at 1655-1675 Palm Beach Lakes Blvd., the office property is located a quarter-mile east of I-95 and three miles north of Palm Beach International Airport. PRP completed a substantial renovation of the three 10-story buildings in 2013. The Forum was 61 percent leased at the time of sale. Ike Ojala, Herman Rodriguez and Jorge Portela of HFF represented PRP in the transaction.
KENNESAW, GA. — TerraCap Management LLC has purchased Bailey Park, a five-building, 198,475-square-foot industrial/flex park located in Kennesaw, a northern suburb of Atlanta. The private equity fund manager purchased the asset for $18.3 million, marking the first time the company has acquired a property outside of Florida. The park features 12-, 14- and 18-foot clear heights; grade-level and dock-high loading; surface parking and well-maintained landscaping. TerraCap has retained Lincoln Property Co. to provide leasing and management services to the park, which is currently 80 percent leased. Tom Shafer of CBRE represented the seller, J.W. Richardson Enterprises Inc., in the transaction.
MCDONOUGH, GA. — PointOne Holdings has purchased Bridge Mill Vista, a 276-unit garden-style apartment community in McDonough, for $18.1 million. The company will rebrand the complex Hampton Point Apartments. PointOne assumed an existing Freddie Mac loan and obtained an acquisition loan from Freddie Mac to complete the purchase. Built in three phases between 1991 and 2000, Hampton Point was 93 percent occupied at the time of sale. The community’s residences average 1,130 square feet and feature security alarm panels, entry foyers, patio/balconies, large closet space and full-size washer/dryer connections. PointOne plans to invest $2 million to upgrade the unit interiors and the leasing and resident centers, as well as modernizing the community amenities including a new dog park, children’s playground, fitness center, cyber café, outdoor kitchens and fireplaces, new signage and a gazebo with picnic tables and outdoor grilling stations.
COLUMBUS, OHIO — Grandbridge Real Estate Capital has arranged a $24.9 million refinancing loan for a multifamily property in Columbus. The Charleston is a 287-unit, Class A apartment complex that features amenities such as a laundry facility, valet dry cleaning, swimming pool, fitness center, business center, dog park, car detailing area, sand volleyball court, shuffleboard courts and a picnic area with gas grills. The loan includes 12 months of interest-only payments, a 15-year term and a 30-year amortization schedule. Ted Schmidt of Grandbridge arranged the loan for the undisclosed borrower through Freddie Mac.
ELGIN, ILL. — Associated Bank has closed a $10.6 million acquisition and bridge loan for a 246,446-square-foot industrial property in Elgin, approximately 40 miles northwest of Chicago. Molto Properties was the borrower and acquired the newly-constructed building from Ryan Cos. The cross-dock industrial building is located at 2770 Alft Court within the Randall Crossings Business Park. Molto Properties, founded in 2008, focuses on the acquisition, development and operation of real estate. Craig Przygoda of Associated Bank managed the loan.
WEST CHESTER, OHIO — CBRE has arranged the sale of 9.1 acres of land in West Chester, approximately 22 miles north of Cincinnati. Becknell Industrial acquired the property from IDI Gazeley and plans to build a 138,750-square-foot industrial building on the land. The plot of land is located at the corner of Union Centre Boulevard and LeSaint Drive and is part of Port Union at Union Center, a master-planned park. Construction is scheduled to start this spring. Jeremy Kraus of CBRE represented the seller in the transaction. CBRE will also market the property on behalf of Becknell.
CRYSTAL LAKE, ILL. — Avison Young has brokered the sale of a 35,364-square-foot medical office building in Crystal Lake, approximately 50 miles northwest of Chicago. MB Real Estate Healthcare purchased the building occupied by Centegra Health for an undisclosed price. Located at 420 N. Route 31, the Class A building was originally completed as a build-to-suit for McHenry County Orthopedics, which was recently acquired by Centegra Health. Erik Foster and Mike Wilson of Avison Young represented the seller, a large physician group, in the transaction.