WASHINGTON, D.C. — The National Retail Federation (NRF) predicts U.S. retail sales in 2021 will increase between 10.5 to 13.5 percent over last year to a range of $4.44 trillion and $4.56 trillion. These predictions are higher than the initial 2021 forecast the organization made in February that was between 6.5 percent and 8.2 percent growth and a total between $4.33 trillion and $4.4 trillion. In the beginning of 2021, the economy was looking more positive for the retail industry, but there were still pandemic restrictions and limitations on businesses. However, states across the country have lifted these pandemic restrictions, allowing for business for retailers to flourish. Jack Kleinhenz, NRF’s chief economist, says the economy is growing at an accelerating rate due to months of pent-up demand from people being stuck inside their homes for a year. The NRF does not revise retail sales’ forecasts often, but the numbers had improved so much since February that they needed to, according to Kleinhenz. The first five months of 2021 showed retail sales were 17.6 percent higher than the same time period the year before, which meant the numbers already surpassed the original forecast of retail sales. Additionally, retail sales in May …
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Re-Evaluating Valuations: One Year Later
Four months into the pandemic, Meghan Czechowski, valuation lead for Apprise by Walker & Dunlop and managing director of the Midwest Region, advised multifamily appraisers not to jump to conclusions about the long-term impacts of the pandemic. “We did advise caution, and it ended up playing exactly the way we thought it would: results differed market by market and asset by asset. That’s how we approach valuation at Apprise to start with, and that approach is how most of the appraisal industry wound up valuing multifamily throughout the pandemic.” Over a year after her initial assessment, Meghan spoke again to REBusinessOnline about what has changed in the world of multifamily appraisals and where those changes are trending. Incorporating Valuation Data from 2020 Early in 2020, there was a general assumption that there would be a discount in multifamily values, but there were no sales to support that assumption until June/July of last year when sales comps appeared on properties in most markets. Now it is essential to ensure that the data Apprise collects reflects the current reality. Once the shutdowns ended, data collection became easier. Czechowski says that real-time information allowed for an even better way to understand, analyze and …
Atlanta is a city that is always evolving. Even prior to the pandemic, rapid change seemed to be the one constant thing about the market. This continues to be true today; from downtown to the furthest suburban reaches, Atlanta’s retail landscape is vibrant with new brands and ambitious projects. One of the most notable areas of growth in greater Atlanta is the expansion of single-tenant operators, especially quick-service restaurants. New national players such as Whataburger and Raising Cane’s are entering the metro Atlanta market, as other popular chains such as Freddy’s Frozen Custard & Steakburgers and gusto! continue to expand. Evolving faster than restaurants, however, are discount retailers. Forbes recently noted that The TJX Cos., Ross Dress for Less, Burlington and Five Below are among the chains with active expansion plans. Dollar Tree also recently announced Family Dollar Tree, a new concept that combines its flagship brands into a hybrid shop for more rural communities with less convenient access to necessity retail. While some grocers such as Kroger and Sprouts Farmer Market have slowed growth, Publix is picking up the slack, opening and planning multiple locations throughout greater Atlanta. German discount grocer Lidl, which opened its first U.S. store just …
ATLANTA — CP Group has acquired One CNN Center, a 1.2-million-square-foot office building in downtown Atlanta, for an undisclosed price. The acquisition was completed via a joint venture with funds managed by Miami-based Rialto Capital Management LLC. The transaction makes CP Group the second largest office owner in the state of Georgia, according to the company. The seller, WarnerMedia, will lease back the CNN Center for several years. WarnerMedia is the parent company of 24-hour news station CNN, which broadcasts from the building. Located at 190 Marietta St. NW, the CNN Center is located in the center of Atlanta’s central business district, near State Farm Arena, Mercedes-Benz Stadium, Centennial Olympic Park, Georgia World Congress Center, World of Coca-Cola, Georgia Aquarium, College Football Hall of Fame and the Center for Civil & Human Rights. “The CNN Center is one of Atlanta’s most iconic landmarks and we look forward to embracing the opportunity to strategically transform the asset and build off the city’s current momentum,” says Chris Eachus, partner at CP Group. The center is located adjacent to Centennial Yards, which is a $5 billion mixed-use project that will include multiple residential and office towers, restaurants and retail. “Many markets across the …
CLINTON, MD. — JLL Capital Markets has secured a $44.5 million loan for The Landing at Woodyard, a newly redeveloped, 210,000-square-foot shopping center located in the Washington, D.C. suburb of Clinton. JLL worked on behalf of the borrower, Meritus Realty Ventures, to place the 10-year, fixed-rate CMBS loan with Morgan Stanley Real Estate. Loan proceeds were used to repay the existing bridge loan and fund remaining tenant improvements for the tenants that recently signed new leases. Meritus has owned Landing at Woodyard since 2016. The center is currently 95 percent leased and has a tenant roster including Aldi, Chick-fil-A, Marshalls, Popeyes, Ross Dress for Less, Burlington and Panera. Situated at 8801 Woodyard Road, Landing at Woodyard is located at the intersection of Branch Avenue and Woodyard Road. The project was renamed The Landing at Woodyard partially due to its proximity to Andrews Air Force base, which is just two miles away. Max Herzog, Marko Kazanjian and Daniel McIntyre of JLL represented the borrower.
DURHAM, N.C. — The Upper Deck Co., a Carlsbad, Calif.-based worldwide sports and entertainment company, has signed a lease to occupy a full building totaling 126,000 square feet at Alexander Commerce Park in Durham. Upper Deck will be Alexander Commerce Park’s first tenant. Upper Deck’s lease will serve as the company’s East Coast office. Colton Clifton with BPG Management represented the tenant in the lease transaction. Austin Nagy, Ann-Stewart Patterson and Bryan Everett of CBRE represented the landlord, Trinity Capital. Alexander Commerce Park is a Class A industrial park featuring three buildings totaling 441,000 square feet. The property will be located on TW Alexander Drive in Durham’s Research Triangle Park. The remaining two buildings are 189,280 square feet and 126,000 square feet. Construction is underway with a completion date in the first half of 2022. Designed by DMA Architects, the buildings will feature 32-foot clear heights, ESFR fire protection and three primary entrances along each façade to allow for easy subdivision for multiple tenants. In addition to Alexander Commerce Park, Trinity Capital is currently developing 147 Exchange in Durham and wrapping up development at Eastgate 540, a six-building, 980,000-square-foot industrial park in Raleigh’s East Wake submarket.
JACKSONVILLE, FLA. — CBRE has brokered the sale of Pinebrook Apartment Homes, a 208-unit multifamily property located in Jacksonville. Bella Property LLC acquired the property for $26.1 million, or $125,481 per unit. Cliff Taylor and Joe Ayers of CBRE represented the seller, an entity doing business as Pinebrook CE Partners LLC, in the transaction. Originally built in 1974, Pinebrook is located at 7500 Powers Ave. and features 13 apartment buildings and one clubhouse. The apartment community is situated 7.7 miles from downtown Jacksonville and 34 miles from St. Augustine. Pinebrook has had improvements completed to the property over the past 18 months, including renovations to the exterior and unit interiors.
SHELBY AND HICKORY, N.C. — Berkshire Hathaway has arranged the sale of a self-storage portfolio in Shelby and Hickery. The sales price was not disclosed. Parker Sweet and Cameron Vale of Berkshire Hathaway represented the seller and secured the buyer, both privately owned companies. The properties total 1,570 units and 219,000 net rentable square feet.
WASHINGTON, D.C. — The U.S. economy added 850,000 jobs in June, according to the nonfarm payroll employment report released Friday by the Bureau of Labor Statistics (BLS). Economists surveyed by Dow Jones expected a gain of approximately 706,000 jobs. The BLS also revised the May job gains upward from 559,000 to 583,000. In April, the job gains were revised up from 266,000 to 269,000. Meanwhile, the unemployment rate increased from 5.8 percent in May to 5.9 percent in June, which was higher than the 5.6 percent predicted by economists. Additionally, state governments during June added 69,000 jobs while local governments added 124,000, according to CNS news. The BLS reported that the amount of people who quit their jobs rose by 164,000 to 942,000 last month. CNBC states that the labor force participation rate was unchanged at 61.6 percent. Also, the amount of people who lost their jobs did not change much in June and stayed the same at 3.2 million. While nonfarm payroll employment is up by 15.6 million since April 2020, it is down by 6.8 million, or 4.4 percent, from its pre-pandemic level in February 2020, according to BLS. With little to no pandemic restrictions left on businesses, …
MIAMI — CP Group, formerly Crocker Partners, has acquired One Biscayne Tower, a 38-story office tower in downtown Miami, in a joint venture with funds managed by Rialto Capital Management and Sabal Capital Partners. Dow Chemical sold the asset for $225 million, according to the Daily Miami News. L&B Realty has managed One Biscayne Tower on behalf of Dow for the last 20 years. Located along the waterfront, the property overlooks Bayfront Park, Biscayne Bay, Miami Beach and the Atlantic Ocean. Trammell Crow Co. developed the property in 1973, with Gutierrez-Latimer and Praga Associates as designers, according to the Council on Tall Buildings and Urban Habitat. One Biscayne Tower features nine floors of parking below 24 floors of office space. Amenities include a newly renovated lobby, fitness center, Pilates studio, two banks, a deli and a variety of services such as a florist, car wash, hair salon, print shop and Amazon locker delivery. The acquisition brings CP Group’s total downtown Miami holdings to over 2 million square feet, including SunTrust International Center and Citigroup Center, formerly known as Miami Center. The company claims it is now the largest office landlord in downtown Miami, largest commercial landlord in Florida, third-largest landlord …