Nearly three full quarters into the COVID-19 pandemic, no real estate asset class in the Washington, D.C., metro area has shown less macro-level distress than the industrial market. In fact, the industrial market may have actually benefited from the pandemic. Despite the immediate drop in demand and activity that resulted in the second quarter, the metro industrial market has bounced back and posted positive gains in both leasing activity and new construction. No other asset class can claim that in the D.C. area. Much of the industrial activity is centered in Northern Virginia, but Suburban Maryland has remained healthy as well. At the end of the third quarter, the overall vacancy rate for warehouse/logistics space, flex and service center industrial buildings stood at 6.2 percent. Unlike many industrial markets, the Washington, D.C., MSA is a service economy with more than 260 million square feet of space. Early industrial development around the Capital Beltway/Interstate 495 served to support an ever-growing population base driven by the federal government and its contractors. This, however, has changed in the past decade, with high-tech companies entering and dominating the market. Fueling D.C.’s healthy market is its high barrier to entry. Much of the development that …
ARLINGTON, VA. — AHC Inc. has delivered The Apex, a 256-unit affordable housing community in Arlington. AHC Management, a subsidiary of AHC Inc., is managing the $100 million development and is currently accepting applications. The Apex features a playground, sport court, community center, underground parking and fitness room. The community’s one-, two- and three-bedroom apartments are available for families earning 40 percent to 80 percent of the area median income (AMI). The Apex was designed to earn an EarthCraft Gold certification. To reduce environmental impact, the building offers energy-efficient appliances and features a green roof. The Apex has quick access to the biking and pedestrian trail that follows along the Four Mile Run Trail. The community also will offer a variety of social and educational programs for residents. The project’s financing includes up to $20.9 million in revolving loan funds from Arlington County’s Affordable Housing Investment Fund (AHIF). The redevelopment was awarded $2.5 million in 9 percent Low-Income Housing Tax Credits (LIHTC) and approximately $1 million in 4 percent LIHTC equity. Michael T. Foster Architects designed the apartment community, and Harkins Builders constructed the property. AHC Inc. is a regional developer of affordable housing communities based in Arlington, Va.
SHEPHERDSVILLE, KY. — JLL Income Property Trust has acquired a 1 million-square-foot, Class A industrial property known as Louisville Distribution Center in Shepherdsville. Core5 Industrial Partners sold the property for $95 million. The tenant roster was not named. Built in 2020, Louisville Distribution Center is located at 170 Clermont Road, within 20 miles of major distribution hubs including UPS Worldport (Air Distribution Hub), UPS Centennial Hub (Ground Distribution Hub) and the Louisville Muhammad Ali International Airport. The property includes 40-foot clear heights, cross-docking, LED motion sensor lighting, 234 trailer parking spaces and HVAC throughout. Core5 Industrial Partners is an industrial developer based in Atlanta, and JLL Income Property Trust is a Chicago-based REIT.
JACKSONVILLE, FLA. — Walker & Dunlop Inc. has arranged $61.3 million in financing for the acquisition of Bank of America Tower, a 44-story office building located at 50 N Laura St. in downtown Jacksonville. Adam Schwartz, Aaron Appel, Keith Kurland, Jonathan Schwartz, Michael Ianno, Sean Bastian and Ian Hawk of Walker & Dunlop arranged the financing for the buyer, Group RMC. Prime Finance provided the three-year, interest-only bridge loan, which features a low floating interest rate. Bank of America Tower is the only LEED-certified office tower in Jacksonville, according to Walker & Dunlop, and features views of the St. Johns River. The Class A high-rise building features over 662,241 rentable square feet, a five-story annex with an additional 35,881 square feet, as well as 900 parking spaces. In addition to a new HVAC system, recent upgrades have been made to the property’s amenities, lighting systems, security systems, elevator modernization, and refurbishment of all the common areas and lobby. Group RMC bought the tower from Hertz Investment Group, according to the Jacksonville Daily Record.
LAWRENCEVILLE, GA. — America’s Realty LCC, a Baltimore-based investment group, and investment partners Borough Equities and Dragon Fly Investments have purchased River Exchange, a 263,651-square-foot shopping center in Lawrenceville. The property is anchored by Kroger, which recently extended its lease by five years. John Tennant and Bryan Belk of Franklin Street represented the local owner, Monarch Investments, in the $19.3 million disposition. Marc Tropp of Eastern Union Funding arranged acquisition financing on behalf of the buyer. In addition to Kroger, River Exchange’s tenants include Goodwill, Farmers Home Furniture, Metro by T-Mobile, Citi Trends, Habitat for Humanity ReStore, Hertz, Cato and One Main Financial, as well as a Kroger fuel center. River Exchange is located at 2100 Riverside Parkway about 29 miles from downtown Atlanta in Gwinnett County.
ATLANTA — Berkadia has brokered the $7.8 million sale of Arbor Gardens, a 102-unit multifamily property in Atlanta. Matthew White, Paul Vetter, Andrew Mays and Judy MacManus of Berkadia’s Atlanta office led the transaction on behalf of the seller, a joint venture between Atlantica and Auerbach Funds. Arbor Gardens sold to White Mountain Management, and the sales price equals to $76,471 per unit. The property was 99 percent occupied at the time of the sale. Built in 1973, Arbor Gardens is located at 5503 Riverdale Road in the Atlanta portion of Clayton County. The property is 3.4 miles south of Hartsfield-Jackson International Airport. The community’s amenities include a swimming pool, playground, sports court and community garden. Atlantica is a real estate firm based in Atlanta, Auerbach Funds is a real estate private equity firm based in New York and White Mountain Management is an independent investment firm based in New Jersey.
DORAL, FLA. — Terra and Terranova Corp. have sold a 23.7-acre site in Doral for $55 million, or $2.3 million per acre. The land houses PepsiCo’s former bottling plant, which spans 232,000 square feet. Terra and Terranova, two South Florida investment firms led by David Martin and Stephen Bittel, respectively, initially acquired the site for $40 million in January 2018 and subsequently leased the property back to PepsiCo through July 2020. The unnamed buyer shares a Santa Monica address with GLP Capital Partners (GCP), an investment firm that specializes in logistics properties. The former PepsiCo bottling plant is located at 7777 Northwest 41st St. and is situated less than two miles from Miami International Airport. The property is zoned for industrial development and can accommodate up to 500,000 square feet of commercial space. Terra is a Miami-based real estate development and investment company. Terranova Corp. is a South Florida commercial real estate investment firm.
ATLANTA — Middle Street Partners and equity partner Pacific Coast Capital Partners (PCCP) have broken ground on a 323-unit apartment community in Atlanta’s Grant Park district. Middle Street expects to finish the property in 2023, with the first residences available in November 2022. Brock Hudgins Architects is spearheading design, and J.M. Wilkerson Construction Co. is the general contractor. Middle Street Partners, a Charleston-based real estate investment and development company, paid $6.9 million for the land. The property is located on the Atlanta BeltLine’s expanding Southside Trail at 1015 Boulevard SE. The six-story apartment community will feature a combination of studio, one- and two- bedroom units with an average of 729 square feet. The property will also have 5,000 square feet of direct BeltLine frontage retail and commercial space, as well as an underground parking garage. In line with the City of Atlanta’s Inclusionary Zoning policy, 15 percent of the homes will be available at 80 percent area median income (AMI). The unnamed property’s units will feature designer cabinetry and lighting, quartz countertops, stainless steel and gas appliances, island sinks and top-control dishwashers, along with dedicated office spaces designed with new work-from-home policies in mind. Community amenities include a 24-hour fitness …
WASHINGTON, D.C. — A total of 793,000 Americans have filed for unemployment assistance through the week ending Feb. 6, the U.S. Department of Labor reported Thursday. The amount of initial jobless claims exceeded the 760,000 figure that economists surveyed by Dow Jones predicted but is a decrease from last week’s revised amount of 812,000. The four-week moving average declined to 823,000 claims, a 33,000 difference from the revised average for the previous four weeks. Continuing claims, for which data lags a week, fell to approximately 4.5 million, which CNBC reports is the lowest total since March 2020.
EAST POINT, GA. — Duke Realty’s Atlanta office has acquired a larger space at Camp Creek Business Center in East Point and signed a lease extension and expansion with Ashley Furniture Industries LLC, a current tenant at the park. Ashley Furniture will be the sole occupant of the 336,960-square-foot facility located at 4505 N. Commerce Drive. Jeff Maris of Ashley Furniture explained why the furniture company decided to move. “Four years ago, we found the space at Camp Creek Business Center and our needs were met. In 2020, as we experienced increased demand and company growth, Duke Realty was able to help us find additional space very quickly and with limited disruption,” said Maris. Duke Realty’s Camp Creek development in East Point is 98 percent leased to tenants including FedEx, Amazon, Dick’s Sporting Goods and The Home Depot. Duke Realty is an industrial-only property REIT based in Indianapolis.