TOLEDO, OHIO — Reichle Klein Group has brokered the $6.3 million sale of a 201-unit apartment property in Toledo. Beacon Place, located at 426 Beacon St., is comprised of 26 buildings situated on 16.5 acres. 401 E. Woodruff LLC sold the property to an undisclosed California-based investor. Tony Plath and Harlan Reichle of Reichle Klein Group represented the seller in the transaction.
FRANKLIN, IND. — RESOURCE Commercial Real Estate has arranged the sale of a 48-unit multifamily community in Franklin, approximately 25 miles south of Indianapolis, for an undisclosed price. Parkside Apartments was built in 1962 and offers a mix of one- and two-bedroom units with an average size of 733 square feet. Parkside Properties LLC sold the complex to Parkside Franklin Apartments LLC. Michael Wernke of RESOURCE Commercial Real Estate brokered the transaction.
LAKE BUENA VISTA, FLA. — Noble Investment Group has agreed to buy a five-hotel portfolio in Orlando, Atlanta and New Jersey for $142 million. The portfolio includes a total of 1,396 rooms. The acquisition includes three Marriott-managed properties in the Orlando suburb of Lake Buena Vista: the 312-room Courtyard Lake Buena Vista, the 388-room Fairfield Inn Lake Buena Vista and the 400-room Springhill Suites Lake Buena Vista. The remaining two properties, both operated by Remington Lodging, are the 146-room Courtyard Edison in Edison, N.J., and the 150-room Residence Inn Buckhead in Atlanta. The hotels achieved an average RevPAR (revenue per available room) of $84, with a 79 percent occupancy rate and ADR (average daily rate) of $106 over a 12-month basis. The portfolio has an existing debt balance of about $98 million. The seller, Ashford Hospitality Trust, expects the net proceeds from the disposition to be about $37 million after debt repayment and transaction costs. Ashford will use the proceeds for general corporate purposes, including net debt reduction, stock buybacks or the acquisition of other full-service hotels. The transaction is scheduled to close during the current quarter. “We are pleased to announce this sale as it provides a positive first step …
Raleigh’s office market is the strongest it’s been in years, with employment and corporate investments continuing to climb throughout the Triangle region. A current lull in the delivery of new construction and the market’s increased popularity have created a space crunch for Class A office space, especially for tenants seeking large blocks. While a good amount of new construction started or continued in 2015, there’s still a gap in “move-in ready” space. Vacancy fell from 11.7 percent in the second quarter to 11.2 percent in the third quarter, causing rent growth for Class A space. Direct asking rent increased from $23.81 per square foot in the second quarter to $24.14 per square foot in the third quarter and is expected to continue to increase until delivery of new construction picks up, which will likely be mid-2016/early 2017. The market has definitely shifted in favor of the landlord, and concessions that were made during the recession have fallen off as owners no longer have to offer them to secure tenants. Desire for Class A space in the Triangle has pushed pre-leasing rental rates to a historic high north of $33 per square foot — and they are likely go higher before …
BOSTON — Cushman & Wakefield’s Equity Debt & Structured Finance Group has arranged a $43.5 million loan with Mesa West Capital for a short-term floating rate execution to maximize proceeds on a luxury retail property located at 201 Newbury St. in Boston. Situated in Back Bay, the 24,716-square-foot property is 87 percent leased to retailers, including Anthropologie, Dr. Martens, Ted Baker and Timberland. Trisha Connolly of Cushman & Wakefield represented the borrower 201 Newbury – Prince LLC in the short-term loan transaction.
NEW YORK CITY — Alpha Realty has arranged the sale of an apartment building located at 82 Christopher St. in Manhattan’s West Village. The asset sold for $9.9 million, or more than $1,500 per square foot. Glenn Raff of Alpha Realty represented the undisclosed buyer, while Scott Schwartz, also of Alpha Realty, represented the overseas seller in the transaction.
NEW YORK CITY — Eastern Union Funding has secured a $5.1 million loan on behalf of a Brooklyn-based investor for the acquisition of a mixed-use property located at 900 Grand St. in Brooklyn’s East Williamsburg neighborhood. The 22,600-square-foot property features two ground-floor commercial/retail spaces totaling 15,000 square feet, and residential lofts on the second floor. As a former industrial property, the building also features 12-foot to 17-foot ceiling heights, five drive-ins, two elevators and 8,000 buildable square feet. Alex Freund of Eastern Union Funding arranged the nine-year, fixed-rate loan through Suffolk County Bank.
NORWALK, CONN. — Houlihan-Parnes Realtors has arranged a $2.7 million first mortgage for an office property located at 83 East Ave. in Norwalk. The five-year loan, provided by a local bank, features a 3.75 percent interest rate and a five-year option to extend. The 40,000-square-foot office and medical property is occupied by 25 tenants. The building is managed and leased by GHP Office Realty. Andrew Greenspan and James Houlihan of Houlihan-Parnes arranged the loan, while Ray Cohen of Chicago Title arranged the title. The borrower was represented by Christie Houlihan of Zuckerman, Gore, Brandies and Crossman as legal counsel.
HOUSTON — Lionstone Investments and Midway plan to rebrand the buildings located at 712 and 708 Main St. in downtown Houston as “The Jones on Main.” The property, once known as the Gulf Oil Building, is the current Houston banking headquarters for JPMorgan Chase & Co. The name pays tribute to Houston businessman and philanthropist Jesse Jones, who commissioned the building in 1927. The Art Deco tower dominated was the city’s tallest building until 1963. Proposed renovations to the site include ground-level connection of the two buildings, the addition of high-end interior amenities, as well as new street-level restaurant and retail spaces along Main and Rusk streets. New storefronts, the addition of sidewalk patios and a nearby bike valet are designed to enliven and activate the streetscape. Historic interior details, including original frescoes illustrating the history of Texas and Houston in the Main Street lobby, will be integrated into a new public space featuring communal tables and lounge seating called the Currency Lounge. Lionstone Investments purchased the property in 2013. The property is located at intersecting MetroRail lines and the downtown tunnel system, making it easily accessible. JPMorgan Chase remains the building’s main tenant, occupying nearly 452,000 square feet of office …
MURFREESBORO, TENN. — National Health Investors Inc. (NYSE: NHI), a publicly traded seniors housing and healthcare REIT based in Murfreesboro, has purchased 12 skilled nursing facilities in Texas from operator Legend Healthcare for a total of $174.5 million. The sales were structured as two separate transactions. In the first, NHI bought eight of Legend’s existing Texas facilities totaling 931 beds for $118.5 million. In the second transaction, NHI purchased four more facilities from Legend that are in various stages of development for $56 million. The first of those facilities is expected to open in 2017. Legend is seeking to step away as operator of all the facilities, so NHI will lease all 12 newly purchased facilities, as well as seven others previously operated by Legend, to affiliates of The Ensign Group (NASDAQ: ENSG). The 15-year lease for the 15 currently operating facilities will have an initial annual amount of $17.8 million plus an annual, inflation-based escalator. The lease has two five-year renewal options. Upon entering the new lease on May 1, Ensign will also purchase two skilled nursing facilities in Texas from NHI. Ensign will pay $24.6 million for the 245-bed portfolio.
