The Las Vegas retail market is transitioning from recovery to stability. Based on CoStar’s second-quarter report, the overall vacancy rate was 9.9 percent, a slight decrease from the 10 percent experienced at the end of the second quarter of 2014. The decrease is impressive considering the 2 million square feet in net absorption that occurred during this same period. Rental rates have continued to average around $1.30 per square foot, per month for the past 2.5 years, although we are hearing about newer centers achieving impressive rate increases. There was 822,512 square feet of retail space under construction at the end of the second quarter of 2015. Ikea is the largest retail project currently under construction in Southern Nevada, which is expected to open next summer. The second largest project is Tivoli Village’s 117,516-square-foot expansion. Restoration Hardware also signed a lease this quarter for 77,000 square feet at Tivoli. It is expected to take up occupy during the first quarter of 2016. Though private investors dominate the market, we are seeing more institutional investors who are interested in acquiring newly stabilized product. Cap rates have continued to decline, averaging 6.53 percent for 2015, compared to a 2014 average of 6.99 …
MENDOTA HEIGHTS, MINN. — Cushman & Wakefield | NorthMarq has brokered the sale of a six-building office portfolio to an entity related to MSP Real Estate. The 420,000-square-foot portfolio is located on Northland Drive in Mendota Heights, approximately 10 miles southeast of Minneapolis. Terms of the transaction were not disclosed. The six Class A office buildings offer competitive lease rates and are all located with convenient access to the Minneapolis-St. Paul International Airport, I-35E, I-494 and State Highway 55. The first building in the park was constructed in 1988, with the remainder of the properties built throughout the 1990s and early 2000s. The sale is the first office acquisition by MSP Real Estate, which in recent years has primarily focused on apartment and seniors housing assets. Cushman & Wakefield | NorthMarq will continue to manage the property. Cushman & Wakefield | NorthMarq represented the seller, United Properties.
KANSAS CITY, MO. — Berkadia has brokered the sale of Northeast View Apartments located at 222 Garfield Ave. in Kansas City. Built in 1972, the 137-unit property features one-, two- and three-bedroom floor plans. Trinity-Northeast View LLC of Chicago sold the property to California-based Kci-Northeast View. The property is less than three miles from LEGOLAND Discovery Center and two miles from downtown Kansas City. Additionally, Berkadia brokered the sale of Arbor Crossings located at 834 Sheridan Road in Muskegon Township, Mich., approximately 46 miles north of Grand Rapids. Built in 1995, the 18-unit property sold for $4.25 million and offers one-, two- and three-bedroom floor plans. Arbor Crossings is less than four miles from downtown Muskegon and less than two miles from Muskegon Community College. Read Property Group of New York bought the property from Sterling Group Inc. of Mishawaka, Indiana.
AKRON, OHIO — Brennan Investment Group LLC has acquired Landmark Plastic Corp.’s headquarters building located at 1331 Kelly Ave. in Akron. The acquisition of the Landmark Plastic facility was funded through Brennan’s $300 million joint venture with one of Arch Street Capital Advisors’ institutional clients. Full transaction terms were not disclosed. The building is 100 percent leased to Landmark Plastic, which specializes in the manufacturing of thermoformed and injection molded products for the horticultural industry.
TROY, MICH. — Signature Associates has brokered the sale of a 38,000-square-foot industrial building located at 1731 Thorncroft Drive in Troy, a northern Detroit suburb. Terms of the transaction were not disclosed. The building is located off West Maple Road with several automotive tenants nearby, including Midas, Belle Tire and Troy Auto Glass. Joe Banyai of Signature Associates represented the buyer, Troy Industrial Properties LLC, and the seller, First Industrial LP.
GRAND RAPIDS — NAI Wisinski of West Michigan has brokered a 14,400-square-foot industrial lease for MBL Tool & Die LLC in Grand Rapids. The property is located at 3650 Broadmoor Ave in a very industrialized area of Southeast Grand Rapids and is part of a 43,200-square-foot flex building. The lease is for a term of five years. The property features seven dock doors and 10 overhead doors. Jeremy Veenstra represented the tenant in the transaction.
BAKER, CALIF. — Progressive Real Estate Partners has arranged the sale of the Baker Burger King location. A private North Hollywood-based investor bought he 3,705-square-foot outpost for $2.45 million. Frank Vora of Progressive represented the seller, a private investor, in this transaction.
NAPA, CALIF. — A joint venture between Madison Marquette and Carlin Co. has arranged the recapitalization of Oxbow Publix Market, a 30,000-square-foot shopping center located in Napa. The center is 98 percent occupied by tenants including Hog Island Oyster Co., Gott’s Roadside, Five Dot Ranch, C Casa, The Fatted Calf, Kitchen Door, The Model Bakery, Ritual Coffee Roasters and Oxbow Cheese and Wine.
WESTMINSTER, CALIF. — NorthMarq Capital has secured $4.5 million in refinancing for Palm Court Plaza, a 29,000-square-foot retail property located in Westminster. The transaction was structured with a 20-year term and 25-year amortization schedule. Joe Giordani of NorthMarq arranged financing for the borrower through a life insurance company.
DENVER — Holliday Fenoglio Fowler (HFF) has arranged joint venture equity and financing for a recapitalization of Denver Pavilions, a 351,347-square-foot, open-air regional shopping mall located in downtown Denver. Mary Sullivan, John Jugl and Eric Tupler of HFF worked on behalf of the owner, Gart Properties, to arrange a joint venture equity partnership with MetLife Real Estate Investors, and to place a 10-year, fixed-rate loan for the partnership with Cornerstone Real Estate Advisers. The 95 percent leased center was renovated in 2010, and is home to tenants including H&M, United Artists theater, Lucky Strike Lanes, Hard Rock Café, Coyote Ugly Saloon, Barnes and Noble, Forever 21, Banana Republic and BareMinerals.