JOLIET, ILL. — Marcus & Millichap has brokered the sale of a 5,077-square-foot retail property net leased to Panera Bread in Joliet for $4.3 million. The building is located at 2400 W. Jefferson St. Austin Weisenbeck and Sean Sharko of Marcus & Millichap marketed the property on behalf of the seller, a developer. Karly Iacono of Marcus & Millichap’s New Jersey office represented the buyer, a limited liability company completing a 1031 tax-deferred exchange.
BROOKFIELD, WIS. — The Boulder Group has arranged the sale of a PNC Bank ground lease in Brookfield for $2.5 million. The single-tenant, net-leased property is located at 12821 W. Bluemound Road. The original 20-year ground lease commenced in November 2012. Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a Northeast-based real estate investor. The Midwest-based buyer completed a 1031 tax-deferred exchange. There are 2,459 PNC Bank branches nationwide.
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Walker & Dunlop: Rent, Lenders, Tech in the Midst of Coronavirus
In recent weeks, the ability of commercial real estate owners to access debt and equity has come into question as the novel coronavirus wreaks havoc on the economy. While some deals in the pipeline are still getting done, the debt markets took a pause as the pandemic took hold. Debt markets were waiting for clarity on how various sectors would react, according to Mark Strauss, managing director of capital markets, and Rob Quarton, director of capital markets, with Walker & Dunlop’s Irvine, Calif., office. The two recently spoke with REBusinessOnline via Zoom about the robustness of certain asset types, market stability, debt pricing and adoption of tech-heavy creativity in the wake of COVID-19 and its effects on commercial real estate nationwide. Commercial Real Estate Debt & Coronavirus Strauss and Quarton primarily work with institutional capital sources that provide capitalization for commercial real estate developers and owners. As such, they have a broad view of all debt markets and their willingness to fund. Debt funds are one of the most affected areas of the financial markets. “The way that debt funds finance their position behind the scenes — either using collateralized loan obligations (CLOs), bank warehouse lines or repo facilities — …
BOYNTON BEACH, FLA. — PEBB Enterprises and Banyan Development have received $27 million in financing for their Mainstreet at Boynton mixed-use project underway in Boynton Beach. Buffalo, N.Y.-based M&T Bank provided the loan. The property is situated at 6405 W. Boynton Beach Blvd., 13 miles north of Boca Raton in Palm Beach County. A 26,000-square-foot Sprouts Farmers Market will anchor the project, which will also feature a Wawa on an outparcel. The retail portion is 85 percent preleased. A 158-bed, 117,000-square-foot co-living facility will also be a part of the project. Jupiter, Fla.-based general contractor Mason Construction expects to complete the project in second-quarter 2021.
AUSTIN, TEXAS — Colliers International has arranged the $7.4 million sale of a 12,900-square-foot retail property Austin. The tenant, CVS, has 13 years remaining on its 25-year lease. Jon Busse and Volmey Campbell of Colliers represented the San Diego-based seller in the transaction. Brad Kritzer and David Chasin of Pegasus Investments represented the buyer, a California-based 1031 exchange investor.
THOUSAND OAKS, CALIF. — Dekel Capital has arranged $59 million in construction financing on behalf of The Latigo Group for the construction of 299 Thousand Oaks, a mixed-use development located in Thousand Oaks. Situated on 3.2 acres, 299 Thousand Oaks will feature 142 Class A apartments, 9,820 square feet of ground-floor retail space and parking for 239 vehicles. The four-story property will offer studio, one- and two-bedroom units, with 11 units designated as affordable housing for low-income families. Community amenities will include a 3,000-square-foot fitness center, pool, garden courtyards and open space. Additionally, the project will feature smart technology, including keyless entry and remote thermostat control. Shlomi Ronen of Dekel Capital secured the financing, which a publicly traded REIT and a life insurance company provided.
MESA, ARIZ. — Stratis-Mesa Properties has completed the disposition of The Shoppes at Higley Village, a neighborhood retail center in Mesa. An undisclosed buyer acquired the asset for $5.5 million, or $224 per square foot. The three-building, 24,580-square-foot property features 14 tenants, including Walmart Neighborhood Market, Bahama Buck’s, Great Clips and Marco’s Pizza. At the time of sale, the property was 85 percent occupied. Derek Buescher of Orion Investment Real Estate represented the seller in the transaction.
FORT MOHAVE, ARIZ. — Marcus & Millichap has arranged the sale of a retail property located at 4751 Highway 95 in Fort Mohave. A limited liability company sold the property to a private investor for $2.1 million. Mark Ruble, Jamie Medress and Chris Lind of Marcus & Millichap’s Phoenix office represented the seller, while Andrew Irvine of Marcus & Millichap’s Ontario, Calif., office procured the buyer in the deal. Starbucks Coffee occupies the 2,021-square-foot property, which was constructed in 2020. The tenant has a new 10-year lease, including 10 percent rental increases every five years and four five-year renewal options. The double-net lease is backed by Starbucks Corp.
BLOOMFIELD HILLS, MICH. — Agree Realty Corp. (NYSE: ADC) recorded $21.2 million in net income during the first quarter, up from $18.3 million the same period a year ago, a 15.7 percent increase. As of March 31, the retail REIT’s portfolio consisted of 868 properties located in 46 states totaling 16.3 million square feet of gross leasable area. The portfolio was approximately 99.3 percent leased. In regard to COVID-19, as of April 17, Agree received April rent payments from over 87 percent of its portfolio. All of the company’s investment-grade tenants paid April rent. Agree received short-term rent relief requests or requests for further discussions regarding rent from approximately 33 percent of its portfolio. Not all tenant requests will result in modification agreements, nor is the company forgoing its contractual rights under lease agreements. Approximately 81 percent of stores within Agree’s portfolio are currently open, 26 percent of which are operating on a limited basis. The remaining 19 percent are closed. Total acquisition volume for the first quarter of 2020, excluding acquisition and closing costs, totaled $227.7 million and included 51 assets net leased to off-price retail, auto parts, general merchandise, dollar store, home improvement, grocery and auto service retailers. …
Over the past few decades, Omaha has grown in both size and reputation as a Midwest gem that offers affordable housing, a solid job market, excellent schools and a central location that makes both business and leisure travel a relative breeze. As our city has grown, our lifestyle has adapted, which has had an interesting impact on commercial real estate. While some developments are flourishing, others have been struggling. Overall, retail growth in Omaha is slow, but occupancy is robust in Class A-located centers. The main corridors in west Omaha (Center, Dodge and Maple streets) have strong occupancy and rents now pushing $40 per square foot NNN for new construction. Restaurants, medical/retail (or “medtail”) and fitness have become the main drivers of recent retail space use. “Treasure hunt” discount concepts such as Ross, Marshalls, TJ Maxx, Burlington and Five Below have all opened multiple locations in the past 24 months in a wide range of demographic areas of Omaha. Mall activity Nationally, the traditional shopping mall concept has been plagued by big-name store closures as consumers continue to turn to online shopping. Locally, some traditional malls are faring better than others. Westroads, which opened in 1968, remains strong in both …