AKRON, OHIO — McKinley has secured $32.9 million in credit tenant lease financing with KeyBank Real Estate Capital for FirstEnergy Plaza in downtown Akron. After executing a long-term lease with FirstEnergy Corp., McKinley secured the loan to finance major improvements at the 19-story, 335,000-square-foot Class A office tower. FirstEnergy Tower is part of a 530,000-square-foot twin-tower development, which includes Akron Center Plaza, owned by McKinley.
CHICAGO — Marcus & Millichap has arranged the sale of a three-story apartment building with an adjacent buildable lot at 1656 W. Erie St. in Chicago. The six-unit asset sold for $1.2 million. Kyle Stengle and Joseph Bergman of Marcus & Millichap’s downtown Chicago office represented the seller, a private investor, and secured the buyer, a private investor, in the transaction.
MISHAWAKA AND TERRE HAUTE, IND. — Veritas Realty has brokered two leases, totaling 58,977 square feet, for Fresh Thyme Farmers Market in Indiana. In the first transaction, Fresh Thyme Farmers Market leased 30,268 square feet at 5514 Grape Road in Mishawaka near South Bend. Tim Mehall of Newmark Grubb Cressy & Everett represented the landlord in the transaction. In the second deal, Fresh Thyme Farmers Market leased 28,709 square feet of retail space at Honey Creek Marketplace in Terre Haute, approximately 85 miles southwest of Indianapolis. Larry Davis of Sitehawk Retail represented the landlord in the transaction. Jamison Downs and Kyle Hughes of Veritas Realty represented the tenant in both transactions.
WAUKESHA, WIS. — Altus Commercial Real Estate has arranged a 535-square-foot lease at 2717 Grandview Blvd. in Waukesha, about 20 miles west of Milwaukee. Comfort Keepers, a home-service caregiver provider, has leased the space. Anita Frey of Altus Commercial Real Estate represented both parties in the transaction.
The industrial market in Los Angeles County is extremely tight and shows no signs of letting up as the trend for conversion of industrial property to creative office space by tech and media industries is very prevalent. Many industrial property owners either sell their assets and realize major equity gains with the new buyer planning a conversion, or choose to convert it to creative office themselves, garnering two to four times the rental rate for creative space. The vacancy rate of 3.2 percent in the first quarter of 2015 was parallel to that of the last quarter of 2014. To give some perspective, the downward trend of industrial vacancy has continued since the second quarter of 2013 when vacancy posted at a 5 percent rate. Additionally, the majority of larger industrial development in the region is build-to-suit product, which has virtually no impact on vacancy. The Downtown Los Angeles industrial market continues this trend of industrial property conversion to creative office. The Arts District is ground zero for this. While the rejuvenation and gentrification of Downtown is a welcome sight, the industrial users are now having to relocate, seeking other spaces throughout the LA basin. Many of these users are …
DALLAS — Miyama USA Texas and Pillar Commercial are teaming up on a proposed new office showroom/distribution project in Dallas. The 250,000-square-foot, two-building complex, SOHCO (previously known as Cornerstone Business Park), is owned by the Miyama family. Both existing facilities (9761 and 9755 Clifford Drive) are 100 percent leased and situated directly off I-35 just south of Spur 482, located between Love Field and DFW airports. The property includes an eight-acre site on which the development team is planning to build a third phase that will contain approximately 115,000 square feet with up to 30 dock-high doors. The Miyama family has owned SOHCO since 2006, and Pillar Commercial has worked with the Miyamas since 2007. A new jogging trail, clubhouse and upgrades to Phase I and Phase II are also being contemplated as part of the overall master plan.
PEORIA, ARIZ. — Heritage Communities of Omaha, Neb., has announced its plans to develop the company’s third seniors housing community in the Phoenix metro area: Orchard Pointe at Terrazza. Working in partnership with Telis Commercial Real Estate of Phoenix, the $22 million project will be located in Peoria as part of the Terrazza mixed-use development. When completed, Orchard Pointe at Terrazza will feature 118 units: 40 independent living, 56 assisted living and 22 memory care. Reece Angel Rowe, the architect for Heritage Communities’ other Phoenix properties, will also design this third location. Construction on the new project is slated to begin in 2016 with a projected open date in 2017. Heritage Communities’ first project in Arizona, Orchard Pointe, is located in Surprise. Opening in 2013, the community serves nearly 100 residents. Construction on Orchard Pointe at Arrowhead — Heritage’s second Phoenix-area community — is scheduled to begin this month in Glendale. Established in 2001, Heritage Communities owns and operates 10 senior living communities throughout Nebraska, Iowa and Arizona.
VANCOUVER, WASH. — Walker & Dunlop Inc. (NYSE: WD) has closed a $3.4 million loan for Arbor Ridge Assisted Living with the Vancouver Housing Authority. Arbor Ridge Assisted Living provides affordable housing for seniors who cannot afford private facilities within the local market. This is the first Rental Assistance Demonstration (RAD) transaction Walker & Dunlop and HUD’s Lean 232 program have completed for a health care facility. The RAD program is HUD’s major effort to recapitalize public affordable housing. RAD focuses on conserving affordable rental housing, meeting the needs of residents and constructing lasting communities along with supporting future property improvements. The Arbor Ridge transaction was structured with a 35-year term and a 35-year amortization schedule. Additionally, the loan was written to a 78.5 percent loan-to-value and 1.45 debt service coverage ratio. Michael Vaughn, senior vice president, led the Walker & Dunlop team.
BEAUMONT, TEXAS — NAI Wheeler, in conjunction with NAI Partners, represented Mustang Cat in the purchase of 12 acres located in Beaumont. Mustang Cat, an authorized Caterpillar dealer in Southeast Texas, is experienced in heavy construction machinery, compact construction equipment, power systems, on-highway trucks and equipment rental and support services in the industrial equipment industry. Lee Wheeler and Erica Goss of NAI Wheeler, along with Dan Boyles of NAI Partners, represented Mustang Cat during negotiations.
EL PASO, TEXAS — CBRE has arranged two long-term lease renewals for logistics tenants in El Paso. The buildings are part of a larger industrial portfolio purchased by Phoenix-based ViaWest Group earlier this year. Foreign trade and door-to-door logistics services firm Jichasa renewed a 20,000-square-foot lease at 7189 Merchant Ave., with plans for future expansion. The El Paso operations support a powdered milk supplier in Chihuahua, Mexico. Third party logistics provider Superior Transport & Logistics Inc. also renewed a 20,000-square-foot lease at 7157 Merchant Ave. Since acquiring the four-building, 245,745-square-foot portfolio in March, ViaWest Group has installed new roofing, resurfaced the parking lots and updated the exterior paint. Additional renovations are planned for the future. The portfolio is 58 percent occupied. Arturo De la Mora with CBRE’s El Paso office represented the landlord in lease negotiations.
