Property Type

Warning Sign: Hotel Sector Sees First Year-Over-Year Occupancy Drop Since 2009

by Jeff Shaw June 7, 2016

Occupancy rates for U.S. hotels declined 0.5 percent during the first quarter of 2016, causing the first year-over-year decline since the fourth quarter of 2009, according to hotel data research firm STR. The Hendersonville, Tenn.-based company suggests that the industry has passed the inflection and is forecasting hotel occupancy declines in both 2016 and 2017. The national occupancy rate dropped from 61 percent in first-quarter 2015 to 60.7 percent in first-quarter 2016. The information was included in CBRE’s annual Hotel Horizons report, which suggests that new supply is outpacing hotel demand nationwide. Supply increased by 1.5 percent from first-quarter 2015 to first-quarter 2016, but demand only increased by 1 percent over the same time period. The report is not all bad news, however. CBRE predicts the average daily room rate (ADR) will increase by 4.3 percent in 2016, and another 4.9 percent in 2017. This increase in rates will offset the projected decline in occupancy, and result in an increase in revenue per available room (RevPAR) of 4.2 percent and 4.7 percent in 2016 and 2017, respectively. The numbers are modest compared with the 6 to 8 percent RevPAR increases of recent years, but positive nonetheless. “The first-quarter decline in occupancy …

June 7, 2016

California Retail Western

Agree Realty Corp. Acquires 11-Property Retail Portfolio for $79.5M

by Nellie Day June 6, 2016

LOS ANGELES — Michigan-based Agree Realty Corp. has acquired a portfolio of 11 retail net lease properties from an undisclosed seller for $79.5 million. The portfolio consists of properties net leased to national and super-regional retailers, including Orchard Supply Hardware, Hobby Lobby, Smart & Final, Walmart Neighborhood Market, Big Lots and Ross Dress for Less. Nearly 40 percent of the portfolio’s net operating income is derived from investment-grade tenants operating in e-commerce resistant sectors, including home improvement, grocery, discount apparel, craft and novelty, and specialty retail. More than 50 percent of the portfolio’s net operating income is attributable to properties near the Los Angeles and San Francisco markets and an additional 30 percent of the portfolio’s net operating income is derived from properties near to the Seattle, Denver, Austin and Orlando markets. Additionally, the portfolio has a weighted-average remaining lease term of 11.4 years.

June 6, 2016

California Retail Western

Hanley Investment Group Arranges $8.6M Sale of Target-Anchored Shopping Center

by Nellie Day June 6, 2016

SAN BERNARDINO, CALIF. — Hanley Investment Group Real Estate Advisors has arranged the $8.6 million sale of Seven Trees Shopping Center, a 150,338-square-foot, Target-anchored shopping center located in San Bernardino. Ed Hanley and Kevin Fryman of Hanley represented the buyer, Westland Real Estate Group, and the seller, a Los Angeles-based private investor, in the transaction. The property was 85 percent leased at the time of sale to tenants including Baskin Robbins, County of San Bernardino, Payless ShoeSource, Sally Beauty Supply and Waba Grill.

June 6, 2016

Colorado Mixed-Use Western

OZ Architecture to Design DriveTrain Mixed-Use Development in Denver

by Nellie Day June 6, 2016

DENVER — Developers Tom and Brooke Gordon have chosen OZ Architecture to design DriveTrain, a mixed-use development to be built in Denver’s RiNo neighborhood. The development is projected to cost between $75 million and $90 million, according to reports by the Denver Business Journal. The project will include pedestrian-friendly, interconnected residential, retail, restaurants, incubator space for local chefs and artists, underground parking and a 120-room boutique hotel. The property’s residential component will include condominiums ranging from penthouses, to micro-units and affordable housing. Groundbreaking is expected to take place in early 2017, with completion scheduled for late 2018.

June 6, 2016

California Industrial Western

LRSAC, Cutting Edge Sports Training to Open 3,500 SF Training Center in Ladera Ranch

by Nellie Day June 6, 2016

LADERA RANCH, CALIF. — Ladara Ranch Strength and Conditioning (LRSAC) and Cutting Edge Sports Training have partnered to open a sports and fitness training center at Ladera Sports Center in Ladera Ranch. The training facility will occupy 3,500 square feet of space at the $35 million, solar-powered multi-use facility, which is slated to open this summer. Located on Terrace Road, Ladera Sports Center will feature a 60,000-square-foot gymnasium with 48,750 square feet of court spaces, including eight basketball and volleyball courts, that have air conditioning, noise decibel reduction systems, superior wood flooring and ceiling-mount volleyball nets with ample spectator seats per court.

June 6, 2016

California Retail Western

Nunes California Properties LLC Sells 4,400 SF Retail Building in Madera

by Nellie Day June 6, 2016

MADERA, CALIF. — Nunes California Properties LLC has completed the disposition of a retail building located at 2300 W. Cleveland Ave. in Madera. NIKI Madera LLC acquired the 4,400-square-foot property for an undisclosed price. Nick Frechou of Retail California, a division of Pearson Realty, represented the seller and buyer in the deal.

June 6, 2016

Indiana Michigan Midwest Retail

Marcus & Millichap Brokers $36M Sale of Two Midwest Retail Properties

by Christina Cannon June 6, 2016

HOLLAND, MICH. AND GOSHEN, IND. — Marcus & Millichap has brokered the sale of two Midwest retail properties for $36 million. In the first deal, the buyer purchased Felch Street Shopping Center, a 164,181-square-foot property in Holland, Mich. The Felch Street Shopping Center is shadow-anchored by Lowe’s. Other tenants include Barnes & Noble, Bed Bath & Beyond, Office Max, Old Navy, Party City, Shoe Carnival, T.J. Maxx, JoAnn Fabrics, Ulta and Jonathan Stevens Mattress. In the second deal, Willow Lakes Plaza was sold. The 139,141-square-foot center is located in Goshen, Ind. Willow Lakes Plaza is situated on a 14.8-acre site and features tenants such as Bath & Body Works, Kohl’s, Michaels, OfficeMax and Rue21. The center is shadow-anchored by Target. Simon Jonna and Raymond Jonna of Marcus & Millichap represented the seller in the transactions. The buyers and sellers in both transactions were undisclosed.

June 6, 2016

Michigan Midwest Multifamily Seniors Housing

CareTrust REIT Acquires Four Assisted Living Communities in Michigan for $30.8M

by Christina Cannon June 6, 2016

FLINT, MICH. — CareTrust REIT Inc. (NASDAQ: CTRE) has acquired a portfolio of four assisted living and memory care communities in the greater Flint area for a total of $30.8 million. Flint is located approximately 70 miles northwest of Detroit. The four properties include The Pines of Clarkston, a 46-unit community in Clarkston; The Pines of Goodrich, a recently completed, 40-unit community in Goodrich; The Pines of Burton, a 62-unit community in Burton; and The Pines of Lapeer, a 40-unit community in Lapeer. Premier Senior Living LLC took over operations of all four communities effective June 1. The communities were added to an existing master lease with CareTrust, which already included two recently acquired communities in North Carolina. The $30.8 million purchase price included transaction costs. The communities produce approximately $2.7 million per year under the terms of the lease. CareTrust funded the acquisition with proceeds from its recent 8.5 million-share equity offering in March.

June 6, 2016

Illinois Loans Midwest Multifamily Seniors Housing

Capital One Provides $20.9M Loan to Refinance Seniors Housing Community in Chicago

by Christina Cannon June 6, 2016

CHICAGO — Capital One has provided a $20.9 million fixed-rate HUD 232/223(f) loan to refinance a 318-bed skilled nursing facility in Chicago. The loan features a 35-year term. The facility was built in 1975 and offers on-site dialysis and can accommodate patients with a diagnosis of dementia. Joshua Rosen of Capital originated the transaction.

June 6, 2016

Illinois Loans Midwest Multifamily

Pembrook Capital Management Provides $16.6M Loan for Chicago Apartment Property

by Christina Cannon June 6, 2016

CHICAGO — Pembrook Capital Management LLC, through its third commercial real estate debt fund, has provided a $16.6 million loan to The NHP Foundation for the acquisition of 152 affordable housing units. The Mark Twain Hotel is a single-room occupancy property in the Gold Coast neighborhood of Chicago. The NHP Foundation will maintain the property, located at North Clark and West Division streets, as affordable units. The 58,000-square-foot Mark Twain Hotel was built in 1932 as a residential hotel and features over 9,000 square feet of ground-floor retail space. The NHP Foundation plans to add kitchens to each unit and community space to the property. The renovation is anticipated to begin in 2017. The property will be included in the National Register’s proposed Residential Hotels in Chicago, 1900–1930 group designation, which recognizes this class of accommodation from this era as historically significant. The Chicago Community Loan Fund, Bellwether Enterprise Real Estate Capital, US Bank and the City of Chicago Department of Planning and Development also contributed financial resources to the acquisition and renovation of the property.

June 6, 2016

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