PALOS HEIGHTS, ILL. — The Boulder Group has arranged the $15.5 million sale of a single-tenant property net leased to Jewel-Osco in Palos Heights, about 25 miles southwest of Chicago. The 57,685-square-foot building is located on a nearly 10-acre parcel at 12803 Harlem Ave. Randy Blankstein and Jimmy Goodman of Boulder Group represented the seller, a Southwest-based private real estate investment company. A Midwest-based family partnership purchased the asset.
NASHVILLE, TENN. — Highwoods Properties Inc. (NYSE: HIW) plans to build a new $285 million headquarters campus in Nashville’s central business district (CBD) for Asurion, a privately held tech solutions firm. The Nashville-based company specializes in providing insurance and warranty plans covering mobile devices and other consumer electronics. Asurion will consolidate four of its existing local offices into the new campus, as well as create 400 new information technology jobs, according to local media reports. Highwoods, a Raleigh-based REIT that now has a development pipeline exceeding $700 million, recently executed the 551,000-square-foot build-to-suit office lease with Asurion. The tech firm will occupy 98.3 percent of the campus under a long-term lease. Nashville has been a haven for employment gains since the downturn. In the past decade, the Middle Tennessee metro has experienced 25 percent job growth, according to the Bureau of Labor Statistics. The Nashville MSA’s unemployment rate was 2.3 percent in May 2018. The Asurion campus will be built on a 4.2-acre site located at Church Street and 11th Avenue North along the Gulch Greenway, a seven-mile urban trail. The development will include two buildings rising eight and nine stories built atop a six-level parking podium. The planned parking …
CHICAGO — Mercedes Benz has signed a 3,700-square-foot lease to open a pop-up store at 401 N. Michigan Ave. on Chicago’s Magnificent Mile. The automaker will begin occupying the space late this month for a three-month period. Mercedes will offer a rotating display of new models in the building’s plaza. Danny Jacobson, Luke Molloy and Stephen Ansani of CBRE represented Walton Street Capital in the lease transaction. Walton Street recently purchased the 737,000-square-foot office tower, which features 30,000 square feet of retail space. An Apple store currently occupies 22,000 square feet of the retail space.
CHINO, CALIF. — Progressive Real Estate Partners has facilitated the sale of a retail property located at 12510 Central Ave. in Chino. An undisclosed buyer acquired the property and business for $2.9 million. A Shell-branded gas station and convenience store occupies the free-standing property. Built in the mid-1980s, the property features four 10,000-gallon tanks and an 840-square-foot, 24-hour convenience store. The full-service store offers a variety of snacks, to-go coffee, drinks, beer, wine and ATM. Victor Buendia and Mike Lin of Progressive Real Estate represented the buyer and the undisclosed seller in the transaction.
ORANGE, CALIF. — SRS Real Estate Partners has arranged the sale of retail property located at the intersection of East Katella Avenue and North Tustin Street in Orange. A San Francisco-based private investor acquired the property from a Los Angeles-based private investor for $2.8 million. BIG-O Tires occupies the 3,380-square-foot property on a triple-net lease basis with 5.5 years remaining on the lease at the close of escrow. Matthew Mousavi and Michael Walseth of SRS’ National Net Lease Group represented the seller, while Eric Chin of Coldwell Banker Residential Brokerage represented the buyer in the transaction.
It’s safe to say that the Jackson MSA, as a whole, responds slower to national trends than the vast majority of markets in the United States. In regards to the economic recovery, Jackson is about two years behind the national economy post-recession. The retail market is just now moving from the recovery phase and into the expansion phase of its growth cycle, which is evidenced by decreasing vacancy rates and stabilizing lease rates. A limited amount of new construction has been a main driver for absorption in this area. There is approximately 35 million square feet of retail inventory in the Jackson MSA, with a moderate amount of new construction scheduled to deliver in the next 12 months. The first phase of expansion for the retail market is beginning to occur and is expected to gain in strength over the next 12 to 18 months. From an investment sales standpoint, Jackson has seen continued interest and stable transaction velocity from local and national retail investors in the last 12 to 24 months. As cap rates have compressed nationally, investors have continued to look to tertiary markets like Jackson in search of higher yields. The current going-in cap rate for acquisitions …
HICKORY HILLS, ILL. — HFF has negotiated the $4.5 million sale of a 4,500-square-foot BP/Circle K service station in Hickory Hills, a southwest suburb of Chicago. The property is located near I-294. BP and Circle K have operated at the property since 2004 under a triple net lease that has six years remaining. Marc Mandel, Steve Schrenk and Robin Stolberg of HFF marketed the asset on behalf of the seller, a private investor. The North American Development Group NNN REIT was the buyer.
AURORA, OHIO — The Cooper Commercial Investment Group has brokered the $2.9 million sale of an 8,460-square-foot retail property in Aurora, a suburb of Cleveland. Tenants include Kay Jewelers, Mattress Warehouse and Samurai Japanese Steak House. The outparcel is part of Marketplace at Four Corners, a nearly 1 million-square-foot regional shopping center. Dan Cooper of Cooper Group represented the seller, a Florida-based private investment group. An East Coast-based private investment group purchased the asset.
The Midland-Odessa retail market continues to get stronger due to the rise in oil prices over the last year. West Texas intermediate crude oil prices have risen from around $46 per barrel in June 2017 to more than $72 per barrel as of June 27, 2018. According to a recent survey from the Dallas branch of the Federal Reserve, new technology is allowing energy companies to break even at $25 per barrel. In addition, the Midland Development Corp. (MDC) notes that the combined Midland-Odessa unemployment rate is down to 2.8 percent, which is the lowest on record. The rise in prices, combined with this scaling of the oil-driven economy, is contributing to local consumers having more disposable income. In turn, spending at restaurants, hotels and retail stores in the Midland-Odessa area is up across the board. Housing Connects The Dots Due to the rise in oil prices and strong economic growth, demand for more housing developments in the Midland-Odessa market is strong and getting stronger. And wherever there’s a boom in housing, a new wave of retail development is likely to follow. According to the MDC, roughly 500 single-family building permits had been issued as of March, the highest first-quarter …
TOLEDO, OHIO — Joel J. Gorjian, principal of Gorjian Acquisitions, has completed the purchase of the Airport Plaza shopping center in Toledo for an undisclosed price. The 16,000-square-foot center is located on a 2.1-acre site along Airport Highway. Tenants include a nail salon and a laundry mat. The seller was a private investor. Gorjian has acquired 24 properties across the country in the last year.
