Charles Cronin of Axiom Capital Corp. discusses how the longest upcycle in history is impacting the lending environment. Cronin weighs in on the overall health of the commercial real estate lending industry now and what people learned from the 2007/08 financial crisis. What can people expect from the market going into 2020, especially with high prices and fierce competition in both sales and lending? Low credit spreads and rates are positive signs for commercial real estate. However, challenges related to high-end apartments and areas with very high costs of living signal the need for both discipline and flexibility as secondary and tertiary markets become more attractive. Watch the video to hear more about what Cronin sees in today’s market. This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week newsletter series, followed by video interviews from MBA CREF.
NEW ORLEANS — Provident Realty Advisors, a Dallas-based developer, has opened Canal 1535, a 330-unit multifamily building in the central business district (CBD) of New Orleans. Canal 1535 features one- and two-bedroom apartments. Amenities include a fitness center, parking garage and heated swimming pool. The property is now leasing to new residents, with rents ranging from approximately $1,500 to $3,700. The total development cost is estimated at $85 million. The building is situated on Canal Street in the heart of New Orleans, near Tulane University Medical School and Louisiana State University School of Medicine. The property is located blocks from the French Quarter, the Mercedes-Benz Superdome and St. Louis Cemetery No. 2, and offers convenient access to public transportation via the Regional Transit Authority streetcar line. Julie Valley, asset manager at Provident, says that the building is intended to serve the growing workforce in the CBD, including native New Orleanians and those moving to the city for work. The economic outlook for 2020 is forecasting an additional 9,400 jobs in the city, an increase of 1.6 percent, according to New Orleans CityBusiness. — Alex Patton
COLUMBIA, S.C. — Colliers International has arranged the sale of a 37-property, 5.5 million-square-foot industrial portfolio spanning 16 counties in South Carolina. The portfolio was 83 percent leased to 57 tenants at the time of sale. Chuck Salley, Dave Mathews, Thomas Beard and John Peebles of Colliers International’s Columbia office represented the buyer, Cleveland-based Weston Inc., in the transaction. The seller was Reger Holdings LLC. The sales price and specific property details were not disclosed. According to CoStar Group, the transaction volume accounts for the largest single acquisition of properties within South Carolina in the past 10 years. Weston hired Colliers International | South Carolina and Columbia-based LCK Construction Services to handle brokerage, marketing, accounting, property management and project management for the portfolio, which includes a team of 40 professionals across Colliers’ Columbia, Charleston, Greenville and Spartanburg offices.
DUNEDIN, FLA. — Primerica Group One Inc. has sold Dunedin Commons, a 280-unit apartment complex in Dunedin, for $62.5 million. The property offers one-, two- and three-bedroom floor plans. Communal amenities include a clubhouse, media center, cyber café, fitness center, infinity pool, outdoor kitchen, playground, dog washing station and walking and jogging trails. Dunedin Commons is situated at 2701 Dunedin Commons Place, 25 miles west of downtown Tampa. Jason Stanton, Cole Whitaker and Marc Sumner of Berkadia represented the Tampa-based seller in the transaction. Dallas-based Westdale Asset Management Ltd. acquired the property.
SPRING HILL, TENN. — The Kirkland Co. has brokered the $53.3 million sale of Commonwealth at 31, a 248-unit multifamily community in Spring Hill. The gated community offers one-, two- and three-bedroom floor plans and communal amenities such as a pool, fitness center, dog park, storage units, outdoor kitchen and a business center. San Francisco-based Hamilton Zanze acquired the property, which is situated at 2880 Commonwealth Drive, 32 miles south of downtown Nashville. Miller Harris, Dennis Harris and William Kirkland of Kirkland represented the buyer and undisclosed seller in the transaction.
BATON ROUGE, LA. — Azad Commercial Realty Services LLC has acquired Hammond Aire Plaza, a 349,660-square-foot retail center in Baton Rouge. The property was 97 percent leased at the time of sale to tenants including Burlington, Marshalls, Michaels and Stein Mart. Albertsons shadow anchors the center. Hammond Aire Plaza is located at 9616-9638 Airline Highway, seven miles east of downtown Baton Rouge. Mark Gilbert and Fain Hicks of Cushman & Wakefield represented the undisclosed seller in the transaction.
ALTAMONTE SPRINGS, FLA. — Marcus & Millichap has negotiated the $14.2 million sale of Remington Inn & Suites, a mixed-use property featuring 180 hotel rooms and 216 apartment units in Altamonte Springs. The one-bedroom apartment units are available to rent on a short-term basis, starting at $273 per week or $950 per month. Amenities include a pool, business center, complimentary newspapers and a playground. The property is situated at 450 Douglas Ave., 10 miles north of downtown Orlando. David Greenberg and Gabriel Shamay of Marcus & Millichap represented and procured the undisclosed buyer in the transaction. The undisclosed seller has owned the property since 1983.
John Randall of Grandbridge Real Estate Capital talks about the capital available in the commercial real estate market. The risk-adjusted returns available in CML [capital market line] debt capital markets is superior to that offered by alternative investment classes, he says. “Until we see any meaningful steepener on the curve or significant disruption, there’s really no end in sight to the liquidity in both debt and equity flowing into commercial real estate.” This breeds fierce competition, but there has not been any meaningful slippage in risk terms or how lenders are underwriting assets. As far as the multifamily sector goes, Randall sees no end to the growing demand from renters. “As a country, we are underhoused to the tune of 3 million to 4 million units… and we’re running at an annual deficit in excess of 350,000 units,” he notes. Watch the interview to hear Randall’s insights on multifamily, as well as Grandbridge’s plans following the merger of BB&T with SunTrust to form Truist. (Grandbridge is a subsidiary of BB&T, now Truist.) This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week …
COLLEGE PARK, MD. — JLL has negotiated the $62.7 million sale of Monument Village at College Park, a 235-unit multifamily community in College Park. The property features one-, two- and three-bedroom floor plans averaging 894 square feet. Communal amenities include a pool with cabanas and outdoor grilling areas, fitness center with yoga and spin studios, Zen garden, clubroom with catering kitchen and billiards, movie theater and gaming room with snack bar, conference room, lounge with computer workstations and coffee bar, pet spa and a dog run. There is also 4,800 square feet of ground-level retail space. Completed in 2016, the asset is situated at 9123 Baltimore Ave., two miles north of University of Maryland and 10 miles northeast of downtown Washington, D.C. Walter Coker, Brian Crivella and Robert Jenkins of JLL represented the seller, Monument Realty, in the transaction. Foulger-Pratt purchased the community.
GRAHAM, N.C. — Southwood Realty has purchased Watercourse and Waterside, two adjacent apartment complexes in Graham, for $62 million. Watercourse was built in 2016 and was 98 percent occupied at the time of sale. Built in 2019, Waterside was 93 percent occupied at the time of closing. Each asset totals 444 units and feature one-, two- and three-bedroom floorplans averaging 956 square feet. Montgomery Carolina was the general contractor, Finley Design was the architect and 10 Federal was the property manager for both assets. Amenities include a saltwater swimming pool, playground, picnic and grilling area, fitness center, car washing station and a dog park at each property. The seller and developer of both assets is The Eco Group, a collaboration between Durham-based Montgomery Carolina and Sanford, N.C.-based Lee-Moore Capital Co.