We've all said time and again that the key to recovery in office real estate is continued and significant increase in employment rates. Like much of the rest of the country, Memphis has begun to see an uptick in employment in the professional and business sector. In the Memphis MSA, employment in this all-important sector for office real estate jumped from 73,400 to 87,100 during 2011, approaching pre-recession highs of 88,800. Additionally, on May 3, the U.S. Bureau of Labor Statistics reported that productivity in the U.S. fell at an annual rate of 0.5 percent for the first 3 months of 2012, after steady growth during 2011. This is the first sign that corporations have achieved the efficiency they desired and needed to weather the latest economic storm. As demand increases, corporations will be forced to hire to fill the gap between demand and capacity, so the good news for the market is that employment rates, the most fundamental drivers of office real estate, should continue to improve. There are a couple of black swan events, the outcomes of which will shape the immediate future of the office market in Memphis, and specifically the Central Business District. The first is …
Southeast
KISSIMMEE, FLA. — Kimco Realty Corp. has sold the 120,699-square-foot Vine Street Square, a shopping center located at the intersection of U.S. 192 and Dyer Boulevard in Kissimmee, to Phillips Edison — ARC Shopping Center REIT for $13.65 million. The property is 97.6 percent leased to tenants that include Walmart Neighborhood Market, Office Max, Dollar Tree, Humana and Outback Steakhouse. Jim Michalak and Paul Bores of Plaza Advisors represented the seller in the transaction.
CLEARWATER, FLA. — Island Way Towers LLC has purchased the 88-unit Dearborn Towers apartment complex, located at 223 Island Way in Clearwater, from the city of Dearborn, Mich., for $6.25 million. The eight-story building features a private fishing dock, marina, swimming pool and a community center. Kevin Kelleher, Darron Kattan and Bob Goldfinger of Franklin Street represented both parties in the transaction.
CHARLOTTE, N.C. — Childress Klein Properties has commenced construction on a 270,400-square-foot speculative industrial building in Charlotte’s Ridge Creek Distribution Center, located off Westinghouse Boulevard and General Drive in Charlotte. Averitt Express has signed a 67,000-square-foot lease to anchor the building, which will feature a 30-foot clear height ceilings, loading dock doors and parking for truck trailers. It will also contain energy and water saving features, including a reflective roof membrane, highly efficient electric lighting and plumbing and landscaping designed to limit water usage. The building was designed by Wagner Murray Architects and will be constructed by Shelco Inc.’s Charlotte office.
MIAMI — Marcus & Millichap has negotiated the sale of the 998-unit ValGard Self Storage, located at 6820 SW 81st Terrace in Miami. The property will be rebranded as Uncle Bob's Self Storage. Michael Mele of Marcus & Millichap represented Miami-based ValGard Pinecrest, the seller, in the transaction. Peter Weimer of Locke Acquisition Group represented Buffalo, N.Y.-based Sovran Acquisition LP., the buyer.
PONTE VERDE, FLA. — NorthMarq Capital has arranged $5 million in first mortgage refinancing for the 47,845-square-foot Village Professional Center, an office park located at 13000 Sawgrass Village Circle in Ponte Verde. Joel Coykendall of NorthMarq Capital’s Jacksonville, Fla., office arranged the 10-year loan with a 25-year amortization schedule through a correspondent life insurance company.
ATLANTA — Cortland Partners has purchased the 280-unit Tuscana Apartments, a garden-style community located at 6860 Bebout Drive in Norcross, for $7 million. Cortland Partners plans to invest $3.2 million in renovations, which will include the addition of washers and dryer connections in 216 units without them, new energy efficient HVAC systems and windows, improved landscaping, resurfaced and repainted athletic courts and expanded playground area.
FORT WASHINGTON, MD. — ARA’s Mid-Atlantic office has facilitated the sale of the 324-unit Remington Place, located at 2602 Brinkley Road in Fort Washington, for an undisclosed price. Drew White, Mike Marshall and Ryan Ogden of ARA represented Invesco Real Estate and Ross Development & Investment, the sellers, in the transaction. Cafritz Interests was the buyer.
ARLINGTON, VA. — Archstone has started construction on the 227-unit Parkland Gardens, located at the intersection of North Glebe Road and Lee Highway in Arlington. Amenities will include a resort-style pool with a sun deck and private nooks, two courtyards, an outdoor amphitheater with tiered seating and a pet spa. Union Bank and Sovereign Bank provided construction financing for the development.
ATLANTA — Georgia Realm LLC has acquired the 7,172-square-foot retail component of Realm, a 30-story, mixed-use building located at 3324 Peachtree Road NE in Atlanta, from WN City Center LP. for $1.8 million. The property is fully leased to Buckhead Pizza Co., Jimmy John's and Macon & Co. Salon. Neal Pringle and Mark Cooley of The Shopping Center Group represented the seller in the transaction.