What a difference a year makes! Retail real estate in Miami is not dead nor in the depths of huge vacancy rates and declining rents; current vacancy rate is 4.3 percent and rental rates have slipped by 0.1 percent over the past year. Let’s explore several indicators of the value and use of the current state of the shopping center industry, restaurant space, entertainment space and big-box retailers. South Florida restaurant space, due to COVID-19 restrictions, was not open to customers over the last 18 months. Many anticipated only a few restaurants to survive with lots of second-generation restaurant space expected to be given back to landlords. Due to the U.S. Small Business Administration’s Paycheck Protection Program and restaurateurs flocking to Miami from across the country — mainly the Northeast, especially New York City — the glut of restaurant space vacancy never occurred. When there is available second-generation restaurant space, it gets leased quickly. South Florida has seen national chain quick-service restaurants (QSR) looking for ghost kitchens which restricts customers to pick-up and delivery. Restaurant sales are back to pre-COVID-19 levels beginning the second quarter this year. The restaurant market appears to be healthy, again. News is not so great …
DAVENPORT, FLA. — Berkadia has secured $43.2 million in acquisition financing for Legends at ChampionsGate, a 252-unit multifamily community located outside of Orlando. Mitch Sinberg and Matthew Robbins of Berkadia secured the financing on behalf of Taurus Investment Holdings, which acquired the property for $53.8 million from an undisclosed seller. The three-year, floating-rate, interest-only loan was underwritten at a 75 percent loan-to-cost ratio and inclues additional funds to finance capital improvements. Located at 8101 Champions Circle, Legends at ChampionsGate was built in 2002 and includes one-, two- and three-bedroom floor plans. The units include built-in shelving, digital thermostats, hardwood style flooring, walk-in closets and private balconies. Community amenities include a swimming pool, fitness center, playground, business center and yoga room. Situated 26.5 miles south of downtown Orlando, the community is approximately 7.2 miles from Interstate 4.
ORLANDO, FLA. — Newport Capital Partners has acquired West Colonial Oaks, a 160,792-square-foot, grocery-anchored shopping center situated on the southwest corner of West Colonial Drive and North Hiawassee Road in Orlando. Newport Capital acquired the property via its Newport Capital Partners Fund III. The property was sourced and acquired off-market from a private investor. Newmark arranged acquisition financing through Ameris Bank. The seller and sales price were not disclosed. West Colonial Oaks is currently 94 percent leased and its largest tenant is national discount retailer Ollie’s Bargain Outlet. The property’s other tenants include Fancy Fruit & Produce, Office Depot, Crazy Buffet, Family Dollar, Olive Garden and Optum Primary Care. The shopping center is shadow-anchored by The Home Depot and is also close to employment and education drivers including Valencia College, Orlando Health Central Hospital and the Seaboard Industrial neighborhood, which is home to Amazon’s 1.1 million-square-foot distribution center.
ARLINGTON, VA. — JLL Capital Markets has facilitated the sale of Alexan Earl, a 333-unit multifamily community in Arlington. Walter Coker, Brian Crivella, Robert Jenkins and Bill Gribbin of JLL represented the seller, Trammell Crow Residential, which also had an equity partner. Lincoln Property Co. and Cadillac Fairview acquired the property for an undisclosed price. Additionally, Michael Cosby, Jimmy Conley, Jamie Leachman and Andy Scott of JLL secured a five-year, floating-rate acquisition loan through Mesa West Capital LLC. Alexan Earl features studio, one- and two-bedroom residential units averaging 827 square feet across two buildings. The property also features 3,396 square feet of retail space. Units include quartz countertops, undercabinet lighting, movable and fixed islands, undermount sinks, hard wood inspired laminate tile flooring, custom closets, stainless steel appliances and washers and dryers. Community amenities include a rooftop pool with an indoor/outdoor bar, ground-level courtyard, two fitness centers, social clubroom, complimentary Wi-Fi in all shared spaces, 24/7 concierge services and coworking space. Located off Wilson Boulevard at 1122 North Hudson St., Alexan Earl is located within walking distance of the Clarendon Metro Station.
WASHINGTON, D.C. — Greysteel has arranged the $11.5 million sale of The Verona, a 67-unit multifamily property located at 5601 13th St. NW in northwest D.C. Built in 1955, The Verona is located in the 16th Street Heights neighborhood of D.C.’s Ward 4. Community amenities include a pet park and nearby public transportation. Kyle Tangney and Herb Schwat of Greysteel represented the buyer in the transaction. The seller was not disclosed.
ALPHARETTA, GA. — Stan Johnson Co. has brokered the sale of Windward Square, a 11,166-square-foot shopping center located at 5215 Windward Parkway in the northern Atlanta suburb of Alpharetta. Jeff Enck of Stan Johnson Co. represented the 1031 exchange buyers, a group of private investors based in Georgia. Penn Hodge Properties sold the property for more than $3.2 million. Windward Square was fully leased to six tenants at the time of sale, including Verizon Wireless and Eye Level Learning Center. Originally constructed in 2003, the center is shadow-anchored by Costco and has other neighboring tenants including The Home Depot and Walmart. The property fronts Windward Parkway and is situated on nearly 1.6 acres.
ATLANTA — Cousins Properties (NYSE: CUZ) has acquired 725 Ponce, a 372,000-square-foot office property in Midtown Atlanta, for $300.2 million. The seller, New City Properties, completed development of the 12-story asset in late 2019. Located on the Atlanta BeltLine and directly across from popular mixed-use development Ponce City Market, 725 Ponce is fully leased to tenants such as BlackRock, McKinsey & Co. and Chick-fil-A. The $140 million development includes an adjacent 60,000-square-foot Kroger grocery store, which replaced a former Kroger that was built in 1986. As part of the transaction, Cousins also acquired a 50 percent ownership interest in an adjacent land site for an additional $4 million that can accommodate 150,000 to 200,000 square feet of development. Atlanta-based Cousins is a self-managed REIT that primarily invests in Class A office buildings within Sun Belt markets. The company’s stock price opened at $40.04 per share Friday, July 30, up from $30.49 per share one year ago. Cousins recently sold One South at the Plaza, a 40-story office tower in Uptown Charlotte, for $271.5 million. Additionally, Cousins and New City recently unveiled plans to develop a mixed-use project known as Neuhoff in the Germantown submarket of Nashville. Plans call for 448,000 …
CHARLOTTE, N.C. — KBS has signed two leases at Crossroads Distribution Center, a 496,723-square-foot business park located in Charlotte. The leases exceeded 100,000 square feet and brought the property to full occupancy. The transactions include a long-term, 73,300-square-foot lease with Service Metal, a pipe fitting distributor, and a long-term, 26,933-square-foot lease with Caesarstone US, a quartz countertop manufacturer. Located at 11401 Granite St., Crossroads Distribution Center features Interstate 77 frontage with warehouse, distribution and office/showroom space. Completed in 2007, the property includes four warehouses with clear heights ranging from 24 to 30 feet. Each building features 50-foot concrete aprons, loading docks and truck courts ranging from 110 to 140 feet. The property also has an onsite car wash/detail. Matt Treble and Eric Ridlehoover of Cushman & Wakefield handled the leasing transactions on behalf of KBS. Matt Hargrove and Alek Salfia of CBRE represented Ceaserstone, and William Maxwell at Trinity Partners represented Service Metal.
WASHINGTON, D.C. — CIM Group has acquired The Vale at The Parks, a newly constructed, mixed-use apartment development in Washington, D.C. The project features 301 apartment units, 18,269 square feet of ground floor commercial space and 316 parking stalls. The sales price and seller were not disclosed. Located at 6800 Georgia Ave. NW, The Vale offers a mix of studio, one-, two- and three-bedroom apartments. Community amenities include a fitness center, indoor and outdoor yoga studio, club room, bike parking, courtyard with cabanas and a saltwater pool. Primrose Schools, an accredited early education and childcare center, has leased 16,576 square feet of commercial space at The Vale. The Vale is the first new construction multifamily rental building at The Parks at Walter Reed, a 66-acre mixed-use redevelopment of the former Walter Reed Army Medical Center. At full buildout, the 3.1 million-square-foot development will feature 190,000 square feet of retail space; 325,000 square feet of office, medical and educational uses; 20,000 square feet of creative and cultural uses; and a hotel/conference center. Residential options will include more than 2,200 condominiums, townhomes and apartments. A joint venture of Hines, Urban Atlantic and Triden Development developed The Vale at The Parks and The …
RIDGEVILLE, S.C. — JLL Capital Markets has secured an undisclosed amount of equity and construction financing for the development of Preserve at Ridgeville Apartments, a 240-unit, garden-style multifamily community near Charleston. Located at 1050 Old Gilliard Road in Ridgeville, the Preserve at Ridgeville will be situated 35.2 miles north of Charleston and 28.1 miles from Charleston International Airport. Once completed, the three-story property will feature a pool, health club with virtual classes, a bark park with pet washing area and a putting green. John Gavigan of JLL represented the development team of Piedmont Private Equity and Ecstatic Properties in arranging equity with American South Real Estate Fund, Material Capital Partners and Altriarch Capital, as well as a loan through Churchill Stateside Group LLC. Piedmont Private Equity is an Atlanta-based, privately held real estate operating and investment company.