The tide is changing for subcontracting in the Washington, D.C., multifamily market. In the past year, while much of the country has been in recovery, Washington construction managers experienced a white-hot market in wood-frame, market-rate apartments. Along with multiple building opportunities, there was an abundance of qualified subcontractors offering extremely competitive pricing. Currently, new properties continue to be developed, but reductions in the subcontracting pool and changes in building codes are creating a climate of increased pressure for construction managers. Subcontractor Capacity Recently, our industry has seen unprecedented subcontractor failures, workforce leaving the area and some company owners leaving the business altogether because they are not willing to risk their livelihoods anymore. Profits and cash flow were just too tight. At the same time, more than 20,000 units will be added to the D.C. market during the next two years. Affordable and tax credit markets have come back strong as well, and rent increases in the new ground-up apartments have created a booming submarket in Class B renovations. For example, Snell Construction Corp. of Arlington, Va., is repositioning two major properties: Southern Towers, a 2,500-unit, 1960s era high-rise community in Alexandria, and Monticello Gardens, with 794 apartments in Falls Church, …
Southeast
ATLANTA — Cascade Investments, a privately owned investment arm of Bill Gates, has purchased Four Season Hotel Atlanta in Midtown Atlanta for an undisclosed amount. Cascade purchased the hotel from Host Hotels & Resorts, which has owned it since 1998. Four Seasons Hotel Atlanta opened in 1997 and features 244 guestrooms, 18 luxury suites, a 7,790-square-foot private spa and fitness center and two upscale restaurants. The hotel occupies the first 19 floors of a 54-story tower. Toronto-based Four Seasons Hotels & Resorts will continue to operate the hotel. Four Seasons Hotels & Resorts is owned jointly by Cascade, Kingdom Holding Co. and Triples Holdings. The transaction also includes the acquisition of 99,000 square feet of office space in the tower. The Four Seasons Hotel Atlanta is Cascade’s second Four Seasons acquisition in recent weeks.
CARY, N.C. — The Connor Group has purchased Amberwood at Lochmere, a 206-unit, garden-style apartment community located in Cary, part of the Raleigh-Durham metro area. The Connor Group purchased the property from Amberwood Apartment Associates LP for $18.1 million. The apartment community features tennis courts, a putting green, playground and walking/hiking trails.
MARIETTA, GA. — Jones Lang LaSalle has arranged the sale of Powers Ferry Plaza, an 86,401-square-foot shopping center located on Powers Ferry Road in Marietta, a suburb immediately north of Atlanta. The shopping center is anchored by Micro Center, a computer and technology retailer. Kris Cooper and Margaret Caldwell of Jones Lang LaSalle represented the seller, Equity One, in the transaction. An Atlanta-based investor purchased the center.
MEMPHIS, TENN. — Paramount Lodging Advisors has brokered the sale of Drury Inn & Suites, a 118-room hotel located in Memphis. A regional investor purchased the hotel and has rebranded it as a Quality Inn & Suites. Adam Montufar and Brent Clemens of Paramount represented the seller, DSW Inns LLC, in the transaction.
RICHMOND, VA. — Cushman & Wakefield | Thalhimer has arranged a 35,849-square-foot office lease at Park Central III in Richmond. The one-story office building is located at 8831 Park Central Drive. Mac Wilson and James Stikeleather of Cushman & Wakefield represented the landlord in the transaction. The tenant, Universal Health Services Inc., is a Fortune 500 hospital management company.
CHARLOTTE, N.C. — Capital Advisors Inc., a full-service commercial mortgage banking firm based in Charlotte, has signed a definitive merger agreement with Dickinson, Logan, Todd & Barber Inc. (DLTB), a commercial mortgage banking firm serving insurance company lenders. The merged company will operate under the Capital Advisors name and will be headquartered in Charlotte. The new company will also have regional production offices in Raleigh, Greensboro, Greenville, Columbia, Atlanta, Birmingham and Jacksonville. Additionally, C. Cooper Willis, president of Capital Advisors, will serve as president of the merged operation, which will service more than $1.5 billion for its insurance company lenders.
FORT MYERS, FLA. — GMA Architects & Planners has completed Discovery Village, a new seniors living community in Fort Myers. The 121,000-square-foot community includes three wings for independent living, assisted living and Alzheimer residents. The new building features courtyard gardens, a theater, game room, living room with a fireplace and bar, fitness facilities and a pool. The rest of the design team includes Development Consulting LLC, interior designer IAK Florida Design and general contractor DeAngelis Diamond Construction.
CELEBRATION, FLA. — Cushman & Wakefield has arranged a $17.4 million acquisition loan for 163 unsold condominium units in the 210-unit Mirasol at Celebration. Mike Ryan, Brian Linnihan and Jeff Walker of Cushman & Wakefield’s Atlanta office arranged the loan on behalf of the buyers, affiliates of Walton Street Capital LLC and Levin Realty Associates. Jay Ballard, Ken Delvillar and Lindsey Pfaender of Cushman & Wakefield’s Orlando office represented the seller in the transaction.
MANASSAS, VA. — Aztec Group Inc. has secured $8 million in financing for Self Storage Plus Manassas, a 697-unit, 73,400-square-foot self storage facility in Manassas. The property, built in 2008, is located at 11840 Sudley Manor Drive. Charles Penan and Howard Taft arranged the 10-year loan with a fixed 5.15 interest rate through Goldman Sachs on behalf of the borrower, a self storage developer, owner and operator based in Washington, D.C. The loan features a 30-year amortization schedule.