WASHINGTON, D.C. — The outbreak of the novel coronavirus has continued to clobber the hotel sector as industry experts say 70 percent of workers have been furloughed and eight in 10 rooms are vacant, according to a survey conducted by the American Hotel & Lodging Association (AHLA). The data from the survey also leads the AHLA to project that vacancy rates in 2020 will be the lowest (38 percent) since the Great Depression. The vacancy rate was 66 percent from 2017 to 2019. “Hotels were one of the first industries affected by the pandemic and will be one of the last to recover,” said Chip Rogers, president and CEO of AHLA. The survey also reports that the full-service hotels that are remaining open are operating on average with a 14-person staff, a fraction of the average 50-person staff pre-crisis. Resort hotels, which often operate seasonally based on peak tourism months and averaged about 90 employees per location as recently as March 13, are down to an average of five employees per resort today. As of this writing, there were 49,963 deaths and 869,172 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).
ATLANTA — A joint venture between Jonathan Rose Cos., Columbia Residential and SUMMECH Community Development Corp. has acquired City Views at Rosa Burney Park near downtown Atlanta. The Section 8 and low-income housing tax credit (LIHTC) community comprises 181 units reserved for residents earning 40, 60 or 80 percent of the area median income (AMI). City Views, which offers two- to five-bedroom floor plans, is situated at 259 Richardson St. SW, a mile from downtown Atlanta. The new ownership is planning a $16.5 million upgrade, which will include new roofs, windows, elevators and façade. There will also be brick repairs and repainting, as well as improved Americans with Disabilities (ADA) accessibility, HVAC and plumbing. Apartment interiors will also be completely renovated, including new LVT flooring, kitchens, bathrooms, Energy Star appliances, low-flow plumbing fixtures and LED light fixtures. Additionally, several thousand square feet of community space that was previously closed off and used for storage will be reactivated, including a fitness center, craft room, package room, upgraded laundry facilities, community room with warming kitchen and free Wi-Fi, a computer learning center and updated management and resident services offices. Residents will be temporarily relocated off-site on a rolling basis, in durations of fewer …
ORLANDO, FLA. — In an effort to limit contact and feed frontline healthcare workers, Park Pizza & Brewing Co. has partnered with Beep, a company operating self-driving shuttles, to deliver food to the Orlando VA Medical Center in the city’s Lake Nona neighborhood. To limit contact with the delivery, each pizza box is sealed, put onto a cart, loaded into the shuttle by Park Pizza & Brewing restaurant employees and the onboard shuttle attendant, and personnel at the medical center are then able to roll the cart into the hospital. The shuttles typically operate on a fixed route, but that has been paused due to the COVID-19 crisis. Park Pizza & Brewing opened within Lake Nona in November 2018. The VA hospital opened in 2015 and provides acute care, complex specialty care, advanced diagnostic services, a large multispecialty outpatient clinic, and administrative and support services to more than 100,000 veterans in the area. Beep and Lake Nona developer Tavistock Development Co. are exploring other opportunities to utilize the autonomous shuttles to serve the community during COVID-19.
DALLAS — SRS Real Estate Partners has arranged the $13 million sale of nine retail properties leased to Hydraulic Supply Co. The locations are in Fort Lauderdale, Pompano Beach, Riviera Beach, Fort Myers, Orlando, Tampa, Florida City and Belle Glade, Fla.; as well as Forest Park, Ga. Each location has nine years remaining on the lease. The assets range from 7,000 to 12,000 square feet and double as last-mile distribution and storage properties for the retailer. Motion Industries Inc., a subsidiary of Genuine Parts Co., owns Hydraulic Supply Co. Hydraulic Supply carries a selection of more than 20,000 hydraulic, pneumatic and industrial products. Patrick Nutt, Kyle Fant and Britt Raymond of Dallas-based SRS represented the seller, Florida-based SunCap Investment Fund, in the transaction. There were eight undisclosed, individual buyers for the assets.
LOUISVILLE, KY. — Dermody Properties has fully leased LogistiCenter at Louisville Airport, a 352,800-square-foot industrial building in Louisville. The property, situated at 2825 Transglobal Drive, is located within Renaissance South Business Park adjacent to Louisville Muhammad Ali International Airport. The newly delivered building offers 32-foot clear height, 46 dock-high doors, four drive-in doors, 73 trailer parking stalls, 256 auto parking spaces and LED warehouse lighting. Dermody broke ground on the 17.1-acre site in June after acquiring the land from Renaissance South Business Park developer Louisville Renaissance Zone Corporation (LRZC). The tenant was not disclosed.
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Walker & Dunlop: Rent, Lenders, Tech in the Midst of Coronavirus
In recent weeks, the ability of commercial real estate owners to access debt and equity has come into question as the novel coronavirus wreaks havoc on the economy. While some deals in the pipeline are still getting done, the debt markets took a pause as the pandemic took hold. Debt markets were waiting for clarity on how various sectors would react, according to Mark Strauss, managing director of capital markets, and Rob Quarton, director of capital markets, with Walker & Dunlop’s Irvine, Calif., office. The two recently spoke with REBusinessOnline via Zoom about the robustness of certain asset types, market stability, debt pricing and adoption of tech-heavy creativity in the wake of COVID-19 and its effects on commercial real estate nationwide. Commercial Real Estate Debt & Coronavirus Strauss and Quarton primarily work with institutional capital sources that provide capitalization for commercial real estate developers and owners. As such, they have a broad view of all debt markets and their willingness to fund. Debt funds are one of the most affected areas of the financial markets. “The way that debt funds finance their position behind the scenes — either using collateralized loan obligations (CLOs), bank warehouse lines or repo facilities — …
DURHAM, N.C. — JLL has negotiated the $65.9 million sale of Lodge at Croasdaile, a 320-unit, garden-style multifamily community in Durham. The property offers one-, two- and three-bedroom floor plans totaling 340,160 square feet of rentable commercial space. The community was developed in three phases and was completely delivered in 2019. Communal amenities include a saltwater pool, outdoor grilling areas, resident lounge with community kitchen and coffee bar, fitness center with yoga space, outdoor pavilion with games, private gardens and a dog park. The property is situated at 3130 Hillandale Road, six miles north of downtown Durham. Jeff Glenn, Andrea Howard, Allan Lynch, Caylor Mark, John Currin and Justin Good of JLL represented the seller, a joint venture between Boston-based The Davis Cos. and Gemini Partners LLC, in the transaction. The buyer was Virginia-based RST Development, which assumed management operations under its affiliate, Hercules Living.
WASHINGTON, D.C. — An estimated 4.4 million Americans filed for first-time unemployment claims during the week ending April 18, the Department of Labor reports. The COVID-19 pandemic continues to affect millions of Americans as business and public spaces are closed. Over the past five weeks, the total number of Americans filing first-time unemployment claims is 26 million, all but wiping out the 24.4 million jobs created in the 11 years since the Great Recession. The latest figure shows a declining trend in weekly jobless claims, with the number of initial jobless claims having decreased for three straight weeks, according to the Department of Labor. As of this writing, there were 46,859 deaths and 843,614 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).
BOYNTON BEACH, FLA. — PEBB Enterprises and Banyan Development have received $27 million in financing for their Mainstreet at Boynton mixed-use project underway in Boynton Beach. Buffalo, N.Y.-based M&T Bank provided the loan. The property is situated at 6405 W. Boynton Beach Blvd., 13 miles north of Boca Raton in Palm Beach County. A 26,000-square-foot Sprouts Farmers Market will anchor the project, which will also feature a Wawa on an outparcel. The retail portion is 85 percent preleased. A 158-bed, 117,000-square-foot co-living facility will also be a part of the project. Jupiter, Fla.-based general contractor Mason Construction expects to complete the project in second-quarter 2021.
NAPLES, FLA. — Gates Construction has delivered The Pineapple House at Sapphire Lakes, a two-story, 127-unit seniors housing community in Naples. The owner and operator is Senior Care Residence Sapphire Lakes at Naples LLC. The property spans 115,381 square feet and offers an open-air courtyard, fitness center, massage areas, hydrotherapy room, pool, beauty salon, theater room, library, chapel, craft room, private dining room, clubroom bar and dining options that will include a bistro and an open-air patio. The new community is located at 7901 Radio Road, seven miles east of downtown Naples. Michael Kerner, Development Consulting LLC and Phoenix Associates of South Florida Inc. designed the community.