As market momentum from 2015 spilled over into the first quarter of 2016 for the Dallas-Fort Worth metropolitan area, commercial retail metrics are still firing on all cylinders. The three key market indicators of occupancy, absorption and development are robust and expect to remain that way for the foreseeable future. With fundamentals in check and a thriving economy led by strong employment and population growth, metro Dallas will continue to be a thriving marketplace and a safe haven for investor capital. Record High Occupancy The Dallas-Fort Worth retail market ended 2015 with an impressive 93 percent occupancy — a little over a 1 percent increase from year-end 2014 — achieving its highest occupancy rate in the last three decades. The continued occupancy increase is directly related to net absorption and largely attributable to positive population and employment growth in the Metroplex. Continued Absorption Since 2012, absorption has continuously outpaced the delivery of new construction, and nothing in the foreseeable future looks to disturb this new norm. First quarter 2016 absorption totaled over 1.6 million square feet, with half of that figure attributed to new deliveries. This is the seventh consecutive quarter where absorption eclipsed 1 million square feet. This is …
FAIRFIELD, CONN. — NorthMarq Capital has arranged $11 million in refinancing for Turnpike Shopping Center, a retail property located at 1955-2009 Black Rock Turnpike in Fairfield. The 10-year loan features five years of interest-only payments followed by a 30-year amortization schedule. The 110,000-square-foot retail center is occupied by ShopRite Supermarket, Eastern Mountain Sports and Party City. Ernest DesRochers of NorthMarq secured the financing for the undisclosed borrower.
WESTERLY, PROVIDENCE AND WARWICK, R.I. — Rhode Island Commerce Corp. Board of Directors and Rhode Island Governor Gina Raimondo have approved more than $7 million in state relocation and redevelopment credits. Funding three projects, the economic development tools include $362,055 in tax credits under the Qualified Jobs Incentive Tax Credit Program to support company relocation and growth, $3 million for the first Tax Increment Financing agreement to support hotel development and $3.6 million Rebuild Rhode Island tax credits to fund the redevelopment of a historic property. Ivory Ella, a socially-minded online retailer, will receive the $362,055 for the relocation of 40 of its current jobs, 19 of which qualify under the Qualified Jobs Incentive Tax Credit program, from Connecticut to Westerly. Homewood Suites Hotels – Exchange Street LLC will receive $3 million for the construction of a $24.5 million 120-room hotel with ground-floor retail in downtown Providence. The board approved $3.6 million in Rebuild Rhode Island tax credits to support the adaptive reuse of a vacant historic mill complex along the Pawtuxet River in Warwick. The property will be redeveloped into a 200,000-square-foot mixed-use development, costing an estimated $34.6 million.
SOUTH BURLINGTON, VT. — Doug Nedde and Fernando Cresta of Nedde Real Estate have acquired a multi-tenant commercial building located at 1891 Williston Road in South Burlington. Lee Zachary, owner of the Zachary’s restaurant chain, sold the 49,200-square-foot property for an undisclosed sum. The property is occupied by Enterprise Rentals, Treehouse Woodworking, MAACO, United Fighting Arts Institute and MOTO VT.
CHICAGO — The Boulder Group has brokered the $11.2 million sale of a retail building net leased to Walgreens. A private investor in a 1031 exchange purchased the asset, located at 2001 Milwaukee Ave. in Chicago, from a Midwest-based private investor. Walgreens’ absolute triple net lease expires Dec. 31, 2031. The Western Chicago Transit Authority Blue Line “L” Station is located one block south of the Walgreens. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction.
MILWAUKEE — Siegel-Gallagher has brokered the sale of a 15,000-square-foot retail building in Milwaukee for an undisclosed price. KAOJI Properties LLC purchased the building from 11010 Hampton LLC. The single-tenant property was built in 1966 and is located at the corner of Hwy 100 and Hampton Avenue. Shaun Dempsey of Siegel-Gallagher brokered the transaction.
MANHATTAN BEACH, CALIF. — JLL Retail has launched the $150 million redevelopment of Manhattan Village Shopping Center, a 44-acre, 573,000-square-foot mixed-use center in Manhattan Beach. The redevelopment plan begins with the update and remerchandising of the center’s interior mall. Key tenants, including Apple, Williams Sonoma, Pottery Barn, Sephora and Victoria’s Secret, among others, will be joined by affordable, luxury-brand retail, unique-to-market shops and signature restaurants. Future phases of the development plan include: • The Village Shops, a 53,300-square-foot open-air expansion of retail and restaurant space adjacent to the enclosed mall; • The renovation of the existing community center component, which is anchored by Ralph’s Fresh Fare and CVS/pharmacy; • The addition of amenities that complement the environmentally friendly setting, including a central plaza, pedestrian and bike-friendly paths, valet service, consolidated and covered parking, landscaping and water features
HAWTHORNE, CALIF. — Quantum Capital Partners has secured $16.9 million in long-term debt to refinance Hawthorne Xchange, a neighborhood shopping center in Hawthorne. The 10-year loan features a 30-year amortization schedule and a 4 percent fixed rate. The borrower is local investor Howard Building LLC. Loan proceeds will be used to retire the maturing debt assumed when Howard acquired the center from Danros Inc. in March 2015 for $25 million. Located at 2831-2909 W. 120th St., the 63,837-square-foot property is fully occupied by a variety of tenants, including Sprint, Starbucks Coffee, Sears Appliance and 24 Hour Fitness. Mike Yim and Jonathan Hakakha of Quantum Capital arranged the financing.
SANTA MARIA, CALIF. — Phillips Edison Grocery Center REIT II has acquired Broadway Pavilion in Santa Maria for an undisclosed price. The 142,944-square-foot center is anchored by Food Maxx, a banner of Save Mart, a private chain of supermarkets that owns and operates stores in Northern and Central California and Northern Nevada. Additional tenants include Starbucks Coffee, Subway, Sally Beauty, Rent-A-Center, Cricket Wireless, Play It Again Sports, Party City, Hallmark and Federal Credit Union.
GERMANTOWN, TENN. — Trademark Property Co. has signed three new retailers to join Saddle Creek, a 173,000-square-foot outdoor lifestyle retail center in Germantown, roughly 22 miles east of Memphis. The new tenants include Atlanta-based American Threads, Sephora and Sur La Table. American Threads will open its 1,995-square-foot store next to Janie and Jack later this year; Sephora will open its 5,701-square-foot store next to Michael Kors later this year; and Sur La Table will open its 5,807-square-foot store next to Brooks Brothers in 2017. Saddle Creek is currently home to 40 retailers, including Apple, Anthropologie, J. Crew and Banana Republic. Other retailers opening this summer include Grimaldi’s Pizzeria, Paper Source and Sleep Number.