A trend in retail activity in Western New York and the Finger Lakes Region over the past six to 12 months has been the announcement or arrival of a number of high-end or specialty retailers and restaurants. Although traditionally these retailers are more selective about the markets they enter, as they continue to grow nationally they have to expand the list of potential markets they will consider. Some of them find that the Buffalo and Rochester metropolitan areas are markets in which high-end or specialty retailers or restaurants can thrive, particularly when Upstate New York’s lower occupancy costs and lighter competition are sufficient to offset potentially lower unit volumes. Whole Foods’ much-anticipated Western New York debut will be this summer in the Northtown redevelopment project by W.S. Development in Amherst. Whole Foods has also signed a lease in Brighton, a suburb of Rochester, for a 50,000-square-foot store at Palazzo Plaza, a proposed 90,000-square-foot shopping center on Monroe Avenue at Interstate 590. The project, being developed by the Daniele Family Companies, is currently making its way through the entitlement process. In a sign of the renaissance in progress in both Downtown Buffalo and Downtown Rochester, the first-ever national brand polished steakhouse …
South Portland, Maine — HFF has arranged the $16.5 million sale of Mallside Plaza, a 98,948-square-foot shopping center located in South Portland, Maine. The company also secured $12.6 million in acquisition financing for the deal. Tenants at the fully leased center include DSW Shoe Warehouse, Five Below, Guitar Center, Dollar Tree and Mattress Firm. The sale also included an outparcel single-tenant building net leased to Five Guys Burgers. Jim Koury of HFF marketed the property on behalf of the seller, Kimco Realty Corp., and procured the buyer, Northeast Capital Group. Porter Terry of HFF worked on behalf of the new owner to secure a 10-year, fixed-rate acquisition loan through Katahdin Trust Company.
MONT BELVIEU, TEXAS — Fidelis Realty Partners has broken ground on Mont Belvieu Marketplace, a 287,000-square-foot retail center in Mont Belvieu, a city approximately 30 miles east of Houston. The property will be located at the intersection of FM 3180 and Langston Boulevard. An 87,000-square-foot H-E-B store will anchor the property, which is scheduled to open in early 2018.
MONROE, N.C. — Charlotte-based Aston Properties has delivered a 70,000-square-foot self-storage facility at the site of a former Kmart store in Monroe, roughly 25 miles southeast of Charlotte. Located at 2120 W. Roosevelt Blvd., the property is managed by Extra Space Storage, one of the country’s largest self-storage operators. Aston Properties purchased the former retail building last year and invested $1.7 million to upgrade the interior and exterior. The climate-controlled facility offers units ranging in size from 25 square feet to over 300 square feet, and features drive-up access, 24-hour video surveillance and electronic gate access. The Monroe property is Aston Properties’ first conversion of a former retail space to self-storage.
MACHESNEY PARK, ILL. — Dunkin’ Donuts has unveiled plans to open a new location at the intersection of Harlem Road and North Second Street in Machesney Park, roughly seven miles north of Rockford, Illinois. The location will be the fourth store in the Rockford area for co-owners Vijay Patel and Greg Novak, who secured the new location in a shopping center occupied by Michalsen’s Office Furniture. Slated to open this fall, Dunkin’ Donuts will join several new tenants who have opened in Machesney Park, including Potbelly Sandwich Shop and Eggspresss. Pita Pit is expected to open later this month.
BROOKHAVEN, PA. — Katz Properties has completed the disposition of Brookhaven Shopping Center, a retail center located along State Route 352 in Brookhaven. Invesco Real Estate acquired the 211,758-square-foot property for an undisclosed price. Chris Angelone and Jim Galbally of JLL represented the seller in the deal. ShopRite and Lowes Home Improvement Warehouse anchor the center.
FRISCO, TEXAS — Henry S. Miller Cos. (HSM) has secured a 1,800-square-foot retail lease at Preston Hickory Crossing in Frisco. Verizon Wireless will occupy the space and open for business during the third quarter. Paul Vernon and Sean Lockovich of HSM represented the landlord, BAUG Corp., in the lease negotiations. The representative of the tenant was not disclosed.
SAN FRANCISCO — Sprint continues to expand its presence and investment in Northern California with plans to add 43 new retail locations throughout the area by the end of 2017. Currently, Sprint operates more than 170 branded retail locations throughout the Northern California region. Of the 43 new store locations, Sprint has already opened 13 new stores in Antioch, Bakersfield, Castro Valley, Delano, Freedom, Fresno, Gilroy, Hayward, Manteca, Napa, Pittsburg and Reno (two stores) — with the remaining 30 stores in various stages of leasing and design. Sprint is adding more network capacity in cities across the Northern California region, including rural locations. Sprint has used this spectrum to optimize and enhance coverage at the LinkedIn headquarters in Sunnyvale, the Four Seasons hotel in Palo Alto, and will soon complete upgrades at the Newpark Mall in Newark and the Southland Mall in Hayward.
PHOENIX — Harbert Management Corp. has acquired an ownership stake in High Street, a 628,000-square-foot mixed-use development located in Phoenix. Although the sales price was not disclosed, the buyer received a $93.5 million acquisition loan to fund the transaction. The property occupies 24.9 acres at 5100-5450 E. High St. along Loop 101 in northeast Phoenix, and features 88 multifamily units; 174,705 square feet of retail, dining and entertainment; and 330,369 square feet of office space. Tenants at the 83.7 percent leased center include Sprouts, Kona Grill, La Bocca, Pinspiration, Mellow Mushroom, Blue Martini, Ocean Prime and Modern Margarita. City North Associates LLC, a joint venture between ScanlanKemperBard Cos. and a private investment fund managed by Wayzata Investment Partners LLC, previously owned the property. Harbert Management has replaced Wayzata Investment Partners, now owning the property in partnership with ScanlanKemperBard. Ryan Gallagher, CJ Osbrink, Ryan Fitzpatrick and Clark Cashion of HFF worked on behalf of the original joint venture owner to procure the buyer in the transaction. Jeremy Womack and Tom Wilson of HFF worked on behalf of the new ownership to secure the acquisition loan through TPG RE Finance Trust. ScanlanKemperBard Cos. is a real estate merchant banking firm that acquires, develops …
Construction costs in Hawaii are beginning to plateau after seeing year-over-year increases for the past several years. The market has seen gray shell retail building costs of about $275 per square foot; and to vanilla shell, another $80 per square foot to $100. Restaurants range from $300 per square foot to $350 to take them from gray to finished shell without fixtures. Remarkably, even with escalating construction costs, retail leasing and development are both extremely active. This, combined with retail vacancy of about 3 percent and record rents, has spurred a wave of new projects. Some of the new retail projects currently under construction are: Kilauea Lighthouse Village, Kilauea Town, Kauai — The center is a 47,000-square-foot development anchored by a 10,000-square-foot Market at Kilauea. Construction on Kilauea Lighthouse Village has begun and is expected to be complete in late 2017. It is owned by Hunt Development and leased by Colliers International. Kahala Bowl Shopping Center, Honolulu – Anchored by McDonald’s, the 10,000-square-foot center is owned by Kamehameha Schools and leased by JLL. Kealanani Shopping Center, Kapolei — This 20,000-square-foot center, anchored by Panda Express, is an outparcel of the Walmart in Kapolei. It is owned by Panda RG Inc. …