A slight decline in vacancy this year confirms that Washington, D.C.’s apartment sector is in a new phase, where a closer alignment in tenant demand and completions will maintain vacancy within a tight range. Solid rental absorption promises to persist as employers hire workers who create new households and homeownership remains out of reach for many who cannot qualify for mortgages. However, potential cuts in defense spending might dull future housing demand in Virginia. The difference in the multifamily market at mid-year 2012 and one year ago shows the revival of residential construction as developers have cranked up production of all types of housing. Multifamily starts have jumped and represent more than 40 percent of all residential groundbreakings over the past year, approximately two times the typical proportion. All sections of the market will receive new multifamily stock this year, with only modest growth expected in Maryland offset by significant completions in Virginia. Meanwhile, most of this year’s production in the district will come online in the second half of 2012, limiting the extent of vacancy declines in the third and fourth quarters. Positive job growth supported growth in D.C.’s multifamily sector. Employers added 25,200 workers in the first six …
Southeast
MEMPHIS, TENN. — US Foods has more than doubled the size of its distribution center in Memphis by adding 385,000 square feet. Improvements include a new state-of-the-art kitchen in which the company will hold product demonstrations for customers and an on-site truck repair shop. The expanded facility was officially dedicated to Joe Campbell, the former president of US Foods who was instrumental in the facility’s expansion. US Foods’ Memphis division has more than 375 employees and serves customers throughout the Southeast, including independent restaurants, healthcare and hospitality entities, government and educational institutions.
BALTIMORE — Minneapolis-based Target Corp. will open a new Target store in Baltimore in October 2013 as part of the Canton Crossing Shopping Center on Boston Street. The new Target will be approximately 135,000 square feet and will employ approximately 200 employees. The Baltimore East location will be the third Target in Baltimore.
FAYETTEVILLE, N.C. — Fayetteville’s Cross Creek Mall will expand by 46,000 square feet and will deliver new tenants Chico’s, LOFT, White House/Black Market, Men’s Warehouse, Reed’s Jewelers and Lane Bryant by fall 2013. Construction is set to begin in early 2013. Cross Creek Mall is located at the intersection Morganton and Skibo roads in Fayetteville. The regional mall is anchored by Belk, Macy’s, JC Penney and Sears. Chattanooga, Tenn.-based CBL & Associates Properties Inc. owns Cross Creek Mill.
BRADENTON, FLA. — CBRE Capital Markets has secured a $12.7 million acquisition loan with structured bridge financing on behalf of Beachwold for the purchase of Fountain Lake, a 201-unit apartment community in Bradenton. Charles Foschini, Christian Lee and Christopher Apone of CBRE arranged the financing through Kennesaw, Ga.-based NXT. Fountain Lake is located at 5620 Fountain Lake Circle and was built in 1984. The multifamily property was recently renovated and amenities include a pool, clubhouse, carports, tennis courts, fitness center, business center and car care center.
PLANTATION, FLA. — Plantation Technology Center, a 99,000-square-foot office building and warehouse at 1700 and 1800 N.W. 66th Ave. in Plantation, has sold for $8.85 million. Plantation Properties of Broward traded the property to COFE Fund I – Plantation LLC. Tenants at Plantation Technology Center include Metro PCS, the Broward County Department of Revenue and the Federation of Public Employees. Lloyd Berger and Judy Dolan of Berger Commercial Realty represented the seller.
OWINGS MILLS, MD. — Owings Mills Transit LLC has broken ground on a four-story, 200,000-square-foot Class A office building within Metro Centre at Owings Mills, a mixed-use development in Owings Mills. The office development represents Phase I of the 1.2 million-square-foot office component of Metro Centre at Owings Mills, and will be completed by mid-year 2013. The mixed-use development will also consist of 300,000 square feet of retail space and restaurant space; 1,700 residential units; a hospitality component of up to 250 rooms; and 120,000 square feet of educational facilities. David S. Brown Enterprises LTD is the site manager.
SANDY SPRINGS AND MARIETTA, GA. — Atlanta-based Branch Properties LLC has purchased two retail properties in the Atlanta area. The firm acquired City Walk in Sandy Springs for $24.5 million in a special servicer-managed REO sale. City Walk is a 168,100-square-foot shopping center anchored by Kroger and located on Sandy Springs Drive. It is 71 percent leased. Fain Hicks of NAI Brannen Goddard and C-III Realty Services brokered the transaction. Branch Properties LLC also acquired 53,600 square feet of small shop space in three buildings at Merchant’s Festival in Marietta for $13.1 million. The Target-anchored shopping center is located at the intersection of Johnson Ferry and Roswell roads. Target sold the space to Branch Properties but the Target retail space in Merchant’s Festival was not included. Chris DeCoufle and Kevin Reavey of CBRE represented Target in the transaction.
TAMPA, FLA. — Safeguard Self Storage has sold a three-property self-storage portfolio in the Tampa area for approximately $25 million to W.P. Carey. The portfolio totals 2,250 units and 225,569 square feet. The three properties are located at 31100 U.S. Highway 19 North in Palm Harbor, Fla.; 3708 W. Bearss Ave. in Tampa; and 2501 22nd Ave. North in St. Petersburg, Fla. Michael Mele of Marcus & Millichap’s National Self-Storage Group represented Safeguard Self Storage in the transaction.
BALTIMORE — New York-based Promed Acquisition Inc. has purchased a leasehold interest in four floors of the eight-story Johnston Professional Building on the campus of MedStar Union Memorial Hospital in Baltimore. Johnston Professional LP sold the leasehold interest for $21.75 million. The first four floors are owned and operated by the hospital and the top four floors are subject to a long-term air rights lease. The property is located at 3333 N. Calvert St. and is fully occupied with tenants MedStar Union Memorial Hospital and Greater Chesapeake Orthopedic Associates. Jonathan Carpenter, James Wellschlager and Douglas Brinkley of Cassidy Turley represented the seller.