By Chapman Brown of Marcus & Millichap Once renowned for its industrial prowess, Birmingham is experiencing a dynamic retail renaissance fueled by a convergence of local economic growth, strategic development initiatives and shifting consumer behaviors. As major retail projects come to fruition and submarkets heat up with investment activity, the city is poised for a transformative period that promises to redefine its retail landscape. Birmingham’s retail sector is intricately linked to broader economic trends both locally and nationally. Factors such as population growth, employment rates and disposable income levels significantly influence consumer spending habits and retail demand within the city. Additionally, the rise of e-commerce and changing demographics are prompting retailers and developers to adapt and innovate to stay competitive. These factors, combined with a diverse array of buyers and sellers, are driving retail investment activity. Institutional investors, private equity firms and real estate developers are among the key buyers, attracted by the city’s strong fundamentals and growth prospects. On the selling side, property owners and developers are seizing opportunities to unlock value and redeploy capital into new ventures. Several major retail projects are currently underway, poised to leave a lasting impact on the market. One notable project is The …
NASHVILLE, TENN. — Naftali Credit Partners and J.P. Morgan have provided $120 million in financing for 1111 Church Street, a recently developed multifamily and retail project in Nashville. New York City-based Tidal Real Estate Partners is the borrower. The five-year financing comprises a senior loan from J.P. Morgan and a mezzanine loan from Naftali, which will be used to refinance an existing construction loan and provide bridge financing to a sale or permanent financing. Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Michael Diaz and Michael Ianno of Walker & Dunlop arranged the financing on behalf of the borrower. Located in the North Gulch neighborhood, the property features 380 multifamily units in studio, one- and two-bedroom layouts, in addition to 52,000 square feet of amenities, 45,000 square feet of retail space and dedicated parking. Amenities include an outdoor pool, fitness center, pickleball court and golf simulators, and a recently opened Puttshack.
KISSIMMEE, FLA. — JLL Capital Markets has arranged a $47.1 million loan for the refinancing of The Crosslands, a 529,212-square-foot power retail center located at 1100 W. Osceola Parkway in Kissimmee, roughly 20 miles outside Orlando. The borrower is a joint venture between Hampshire Cos., Federated Hermes and O’Connor Capital Partners. Jon Mikula, Michael Klein, Brian Gaswirth, Michael Kavaler and Val McWilliams of JLL secured the three-year loan through TD Bank on behalf of the borrower. The Fresh Market, Burlington, Academy Sports + Outdoors, Hobby Lobby, Marshalls/HomeGoods and Ross Dress for Less anchor the property, which was developed between 2014 and 2016 and fully leased at the time of financing.
PROVO, UTAH — Target has signed a deal to occupy 135,000 square feet of retail space at Provo Towne Centre in Provo. Brixton Capital is currently remodeling the shopping center. The Target will include CVS/pharmacy, Starbucks Coffee, Ulta Beauty, Target Optical and an adult beverage department. Greely, Colo.-based Roche Construction Mountain West is the general contractor for Target, while Big D Construction Mountain West is the general contractor for Provo Towne Centre.
International Dark Sky Discovery Center Breaks Ground on $25M Observatory in Fountain Hills, Arizona
FOUNTAIN HILLS, ARIZ. — International Dark Sky Discovery Center (IDSDC) has broken ground on its new observatory in Fountain Hills, approximately 30 miles northeast of Phoenix. SWABACK Architects + Planners designed the $25 million project, which McCarthy Building Cos. is constructing. The 23,000-square-foot facility will encompass a 27.5-inch PlaneWave telescope housed within a 20.5-foot domed observatory, and a 65-seat planetarium. The center will also offer a 150-capacity multipurpose auditorium and a “Night Sky Experience” exhibit space equipped with interactive educational and historical components. IDSDC will offer activities, educational opportunities and events for all ages, primarily serving the K-12 communities in Arizona. With the first research-grade telescope in the greater Phoenix area, the IDSDC will allow Valley residents to view parts of the sky that have become hidden due to growing light pollution.
PICKERINGTON, OHIO — Largo Capital Inc. has arranged a $7.9 million loan for the refinancing of a 90,040-square-foot shopping center in Pickerington, a southeast suburb of Columbus. The fully leased property is home to tenants such as Big Lots and Planet Fitness. Kevin Ross of Largo arranged the nonrecourse, fixed-rate loan. The lender and borrower were undisclosed.
MADISON, OHIO — Marcus & Millichap has brokered the $3 million sale of a 72,048-square-foot retail center in Madison, a city in northeast Ohio. Anchored by Tractor Supply Co. and Bealls, the property is located at 6581 N. Ridge Road. Additional tenants include Goodwill, Snap Fitness, Eagle Financial Services and TNT Tanning. Scott Wiles, Erin Patton and Craig Fuller of Marcus & Millichap represented the Florida-based seller, which was the original developer of the property. The team also procured the buyer, an Ohio-based private investor. The buyer received acquisition financing from a life insurance company at a 70 percent loan-to-value ratio.
MOUNT AIRY, N.C. — Legacy Realty Group Advisors has brokered the sale of Independence Square, a 63,507-square-foot shopping center located in Mount Airy, a city on the North Carolina-Virginia border. The center was 97 percent leased at the time of sale to tenants such as Ollie’s Bargain Outlet, Dollar General and USPS. Jacob Baruch of Legacy Realty Group represented the seller in the transaction, and Kevin Henry of Pine Forest Oak Island Realty represented the buyer. Both parties requested anonymity, and the sales price was also not disclosed.
THORNTON, COLO. — Indianapolis-based TM Crowley & Associates has partnered with Atlanta-based NLG Capital Management (NLGCM), a division of The Net Lease Group, to develop The Highlands at Thornton, a mixed-use property at the northeast intersection of Quebec Street and 136th Avenue in Thornton. Situated on 23 acres, the project will offer more than 101,925 square feet of retail, commercial and medical office space. CVS Caremark will anchor the development. Lisa Vela and Jay Landt of Colliers will handle leasing efforts for the project.
DES PERES, MO. — AXSYS Capital has sold a 17,190-square-foot office and retail property in Des Peres, a western suburb of St. Louis, for $3.4 million. Built in 1986, the two-story building is located at 11780 Manchester Road. John Shuff of Pace Properties and Ted Green of Avison Young represented the buyer, CommunityAmerica Credit Union (CACU). Mark Dorsey of Avison Young, along with Luke Grant and Jason Riegelsberger of Skyline Missouri Realty, represented the seller, Des Peres Plaza Partners LLC on behalf of AXSYS Capital. The seller had purchased the asset in late 2016 for $2.1 million with a cap rate of approximately 8 percent financed by Carrollton Bank. CACU is evaluating plans to redevelop the property for a new CACU location, according to the seller.