PITTSBURGH — JLL has arranged a $74 million loan for the refinancing of Southside Works, a 471,939-square-foot office and retail development in Pittsburgh. Built in phases between 2002 and 2004 and renovated in 2021, Southside Works comprises 245,570 square feet of office space and 226,369 square feet of retail space. The development also features multiple pocket parks, open green spaces, sport courts and a dog park. Nick Unkovic and Jeremy Bernstein of JLL arranged the six-year, floating-rate loan through Dollar Bank on behalf of the borrower, SomeraRoad.
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Lee & Associates’ Third-Quarter 2022 Economic Rundown by Sector
Lee & Associates’ newly released 2022 Q3 North America Market Report examines third-quarter 2022 industrial, office, retail and multifamily outlooks throughout the United States. This sector-based review of commercial real estate trends for the third quarter of the year examines the difficulties facing each asset class and where opportunities in the commercial real estate landscape may be emerging. Lee & Associates has made the full market report available here (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city), but the summaries below provide high-level considerations of the overall health and obstacles for the industrial, office, retail and multifamily sectors. Industrial Overview: High Rent, Low Vacancy Everywhere North American industrial space availability is tight everywhere while rent growth and property prices remain near or have moved beyond historic highs. Through the third quarter, the United States’ vacancy rate settled at 4 percent, up 10 basis points from second quarter 2022. Average rents increased 11.4 percent year over year with gains of 19 percent in Miami, 18.7 percent in Southern California’s Inland Empire, 16 percent in Phoenix and 14.6 percent in Atlanta. Since the COVID lockdown in March of 2020, developers of U.S. logistics space have been …
SNELLVILLE, GA. — Atlantic Capital Partners has arranged the sale of Snellville Pavilion, a 311,093-square-foot shopping center located in the Atlanta suburb of Snellville in Gwinnett County. Fred Victor, Justin Smith and Chris Peterson of Atlantic Capital represented the seller, Kimco Realty, and procured the New York-based buyer, United Properties, in the $38.3 million deal. Snellville Pavilion was 99 percent leased at the time of sale to tenants including Kohl’s and Belk, both of which have anchored the center since 2000.
GLASTONBURY, CONN. — Poag Shopping Centers has acquired The Shops at Somerset Square, a 113,422-square-foot retail center in Glastonbury, roughly 10 miles southeast of Hartford. The Tennessee-based investment firm has partnered with JLL to lease and manage the open-air center, which houses tenants such as Chipotle Mexican Grill, AT&T, Edward Jones, Francesca’s and Jos. A Bank. The seller and sales price were not disclosed.
LONGMONT, COLO. — An affiliate of Northbrook, Ill.-based Pine Tree, in partnership with New York-based Wafra Inc., has purchased Harvest Junction, a shopping center in Longmont, for $73.8 million. Completed in 2006, Harvest Junction features 364,000 square feet of retail space. Current tenants include Best Buy, Dick’s Sporting Goods, Marshalls, Ross Dress for Less, Michaels, Petco and Designer Shoe Warehouse. Barry Brown, Bryan Ley and Jason Schmidt of JLL’s Retail Capital Markets Investment Sales and Advisory team brokered the transaction.
VACAVILLE, CALIF. — Gantry has arranged a $23 million permanent loan to refinance debt on Vacaville Commons, a power retail center in Vacaville. Tenants at the 400,000-square-foot property include Safeway, Ross Dress for Less, Big 5, Chase Bank, Chick-fil-A and Chili’s. Tom Dao and Erinn Cooke of Gantry’s San Francisco office arranged the financing on behalf of a private real estate investment partnership. The 10-year, fixed-rate loan, features an interest-only period transitioning to 30-year amortization. A correspondent life company lender provided the capital.
ORANGE, CALIF. — PSRS has arranged $15 million in financing for Galleria L’Orange, a multi-tenant retail center in Orange. Michael Tanner and Tony Messiah of PSRS secured the non-recourse loan that features a 10-year term and 30-year amortization. A correspondent life insurance company provided the capital. Situated on 3.1 acres, the three-building asset offers 40,323 square feet of retail space and 180 parking spaces. Tenants include Starbucks Coffee, Supercuts, U.S. Bank, H&R Block and T-Mobile.
SHAWNEE, KAN. — Block & Co. Inc. Realtors has sold the Merriam Grand Station redevelopment site in Shawnee for an undisclosed price. The buyer, Drake Development, plans to redevelop the former Kmart and Pegah’s sites into two apartment buildings with retail and restaurant space. Drake will keep the Merriam Grand Station name. Completion is slated for 2025. Block & Co. will retain the management and leasing of the front lots on both sides of the development, including the Freddy’s Frozen Custard and the Krispy Kreme as well as the Shell gas station and the Chipotle that is under construction. David Block, Max Kosoglad and Alex Block of Block & Co. and Matt Pennington of Drake represented the respective parties in the sale.
NEW YORK CITY — Cushman & Wakefield has arranged $142.9 million in construction financing for 120 Fifth Avenue, a mixed-use development in the Park Slope neighborhood of Brooklyn. The borrowers, Senlac Ridge Partners and The William Macklowe Company, are redeveloping the two-acre site, currently a one-story vacant grocery store and its parking lot, into a 212,000-square-foot mixed-income housing property and retail plaza. The project will comprise two buildings featuring 180 residential units, 25 percent of which will be affordable. The development will also offer 67,000 square feet of retail space and a 225-space underground parking garage. Lidl Supermarket and CVS Pharmacy recently signed long-term leases for approximately 35,000 square feet of the retail space with the developer. An expected date for project completion was not disclosed. The property is located four blocks from Flatbush Avenue and Barclays Center, the home of the NBA’s Brooklyn Nets, and is within walking distance to the 2, 3, 4, 5, B, D, N, Q and R trains. Cushman & Wakefield’s Equity, Debt & Structured Finance team of Gideon Gil and Lauren Kaufman represented the borrowers in the transaction. Macklowe and Senlac Ridge acquired the development site, the former home to Key Foods, in 2020. …
PORTLAND, TEXAS — McLeod Cobb Investments will develop Portland Town Center, a $100 million multifamily and retail project that will be located near Corpus Christi in South Texas. Plans for Portland Town Center currently call for 200,000 square feet of retail space that will be anchored by a 128,500-square-foot Target store, as well as 300 multifamily units. The design team includes Osborn & Vane Architects Inc. and Terra Associates Inc, and Arch-Con Corp. is the general contractor. Plains Capital Bank provided construction financing for the 45-acre project. Construction is scheduled to begin in November.