AMITYVILLE, N.Y. — Marcus & Millichap has brokered the $4.6 million sale of a 15,120-square-foot retail building leased to Walgreens in the Long Island community of Amityville. The building was constructed on 2.6 acres in 2001, and Walgreens recently extended its lease through 2035. Derrick Dougherty and Nick Geaneotes of Marcus & Millichap represented the sellers in the transaction and procured the buyer. Both parties were locally based entities that requested anonymity. John Horowitz of Marcus & Millichap assisted in closing the deal as the broker of record.
For more than seven months in 2024, the commercial real estate investment market remained on a sluggish path. High interest rates continued to not only challenge many asset owners who needed refinancing, but also buyers and sellers looking to make deals. For instance, some $174.7 billion in property investment sales during the first half of the year was 7 percent below a year earlier, according to MSCI Real Assets. In such uncertain times, it’s not unusual for the commercial real estate market to experience bouts of bifurcation. Typically, those are marked by trends such as rising demand for higher quality offices during economic slumps when tenants can fetch discounted rents. Early in the recovery phase, it’s not unusual for investment to flow into tech-oriented metros at the expense of other cities. The Federal Reserve’s aggressive hike of the federal funds rate has created another category of bifurcation, especially as it relates to floating-rate bridge debt and how lenders are managing their loan portfolios. That is, the difference between the performance of assets depending on when owners financed the properties, says Jeff Salladin, a managing director with Dallas-based private debt fund Revere Capital. “It’s a question of vintage,” he explains. “Loans …
HOUSTON — Locally based investment firm Interra Capital Group has acquired the 600,000-square-foot historic Esperson complex in downtown Houston. Comprising two structures that are known as the Niels and Mellie Esperson Buildings, the complex is home to a mix of commercial users. The buildings were originally constructed in 1927 and 1941 to pay homage to real estate and oil magnate Niels Esperson and reflect the importance of those industries in the growth of the local economy during that time. Cameron Management manages the property, which Interra acquired by foreclosure through a note purchased from MetLife Investment Management earlier this year. Details on Interra’s plan to revitalize the property were not disclosed.
FRISCO, TEXAS — Marcus & Millichap has brokered the sale of a 9,291-square-foot retail strip center in Frisco. The property was fully leased at the time of sale to five tenants: Active Dental, Stonebrook Eyecare & Eyewear, ATI Physical Therapy, Momo’s Coffeehouse and Jamba Juice. William Kim of Marcus & Millichap represented the buyer, JT Arlington, in the transaction. Duke Dennis of Marcus & Millichap Capital Corp. (MMCC) arranged $2.8 million in acquisition financing through a local credit union for the deal. The nonrecourse, five-year loan carried a fixed interest rate of 7 percent.
ORLANDO, FLA. — Colliers has brokered the $68.5 million sale of Lee Vista Promenade, a 313,981-square-foot regional power retail in Orlando. Brad Peterson, Whitaker Leonhardt and Eric AmRhein of Colliers represented the seller, SITE Centers, in the transaction. Donald Jennewein, also with Colliers, arranged an undisclosed amount of acquisition financing through City National Bank on behalf of the buyer, Dundas Real Estate Investments. Situated on 74.2 acres in Orlando’s North Airport submarket, Lee Vista Promenade was 95.5 percent leased at the time of sale to tenants including Academy Sports + Outdoors, Epic Theaters, Ross Dress for Less, HomeGoods, Michaels, Bealls Outlet, Petco, Ulta Beauty, Five Below and Famous Footwear. The shopping center was built in 2016 and also features three development parcels totaling 18.1 acres. A little more than one-third of the shopping center’s revenue is generated from restaurant tenants, according to Colliers.
BOSTON — Locally based investment and management firm Capital Properties has received a $19 million loan for the refinancing of The S.S. Pierce Building, a 72,790-square-foot office and retail building located in the Brookline area of Boston. Originally constructed in 1898 for grocer S.S. Pierce, the building currently features street-level retail space and three levels of office space. Brookline Bank is a retail tenant, and the office component includes users in the financial services and behavioral health fields, among others. Patrick Boyle, Kevin Phelan and Rose Liu of Colliers arranged the fixed-rate loan through an undisclosed balance sheet lender on behalf of Capital Properties.
CHARLESTON, S.C. — Atlanta-based SJC Ventures, along with general contractor Hill Construction, has completed Phase II of West Ashley Station, a shopping center located at 1125 Savannah Highway in Charleston’s West Ashley neighborhood. Spanning 29,000 square feet, the second phase is fully leased to tenants including Hollywood Feed, Hand & Stone, Another Broken Egg, Pacific Dental, GoodVets, Jersey Mike’s Subs, Nothing Bundt Cakes, CAVA, Nikita Hair Salon, House of Sage (a women’s boutique retailer) and Serotonin Centers. Several tenants in the second phase are already open. SJC Ventures expects all tenants to be open by February 2025. John Orr and Lindsey Halter of Carolina Retail Experts marketed West Ashley Station for lease. Phase I of the property includes a 45,062-square-foot Whole Foods Market that opened in 2018.
FAIRFIELD, CONN. — New Jersey-based intermediary Cronheim Mortgage has arranged a $5 million permanent loan for Fairfield Shopping Center in southern coastal Connecticut. The 72,000-square-foot center was built in 1955. Anchored by Restoration Hardware Outlet, which recently backfilled a 35,000-square-foot space formerly occupied by Bob’s Stores, the center is also home to tenants such as T-Mobile, The UPS Store, Village Bagels and HobbyTown USA. Andrew Stewart, Dev Morris and Allison Villamagna of Cronheim arranged the debt on behalf of the owner, the firm of late local developer Albert Phelps.
PEACHTREE CORNERS, GA. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $9.1 million acquisition loan for Spalding Woods, an 84,000-square-foot shopping center located at 4015 Holcomb Bridge Road in Peachtree Corners, a northeast suburb of Atlanta. Garrett Fierstein of MMCC’s Orlando office, along with Simon Grigoryan of Marcus & Millichap’s Jacksonville office, arranged the financing through an out of state credit union on behalf of the borrower, an undisclosed, privately held investor. The 10-year loan was underwritten with a 25-year amortization schedule, 65 percent loan-to-value (LTV) ratio and flexible prepayment options. Spalding Woods’ tenant roster includes Dollar Tree, Peachtree Corners Eye Clinic, KFC/Taco Bell, Dunkin’ and Clean Eatz. Additional spaces are available for build-out, according to MMCC.
MANCHESTER, PA. — Marcus & Millichap has brokered the $3.8 million sale of a 6,129-square-foot gas station in Manchester, a southern suburb of Harrisburg, that is occupied by fuel station and convenience store operator Sheetz. The newly built facility sits on a 3.3-acre site next to East Manchester Village Centre shopping center. Derrick Dougherty and Nick Geaneotes of Marcus & Millichap represented the seller and procured the buyer, both of which were Pennsylvania-based entities that requested anonymity, in the transaction.