FAIRFAX, VA. — Gyrodyne LLC has sold Fairfax Medical Center, a two-building, 57,621-square-foot medical office complex in Fairfax. JAG Associates LLC purchased the property for $14 million. Gyrodyne’s predecessor, Gyrodyne Co. of America Inc., purchased the property in 2009 for $12.9 million.
FREDERICKSBURG, VA. — NorthPoint Capital Funding Inc. has arranged an $8.3 million loan to refinance The Jefferson Building, a 73,000-square-foot office building in Fredericksburg. Built in 2005, the three-story property is located at 150 Riverside Parkway and was 90 percent leased at the time of financing. Mark Perkowski of NorthPoint Capital Funding arranged the long-term, fixed-rate loan with a 25-year amortization schedule through Kansas City Life Insurance Co. According to NorthPoint Capital Funding, the loan represents 72 percent of The Jefferson Building’s value.
COLONIAL HEIGHTS, VA. — Armada Hoffler Properties Inc. has closed on the acquisition of Southgate Square, a 220,000-square-foot retail center located in Colonial Heights, roughly 23 miles south of Richmond. The center was fully leased at the time of sale to tenants such as Burlington Coat Factory, Michaels, Staples, PetSmart, Sleepy’s and Jo-Ann Fabric and Craft Stores. Southgate Square is located in close proximity to Southpark Mall, a Walmart Supercenter and Dimmock Square, a 100,000-square-foot retail center that Armada Hoffler purchased in 2014. The Virginia Beach, Va.-based REIT purchased Southgate Square in exchange for approximately $21.1 million of debt and the issuance of roughly 1.6 million units of limited partnership interest in Armada Hoffler’s operating partnership.
HERNDON, VA. — NXT Capital has provided a $22.3 million loan to finance the recapitalization of Parkway Atrium, a 184,000-square-foot, Class B office building located in Herndon, about 25 miles west of Washington, D.C. The building has historically been leased to GSA tenants. The undisclosed borrower plans to use the loan proceeds to renovate the asset. Cary Abod and Robert Carey of HFF’s Washington, D.C., office arranged the loan through NXT Capital.
MIDLOTHIAN, VA. — Marcus & Millichap has arranged the $5.4 million sale of Tower Medical, a 20,028-square-foot medical office building located at 13520-13540 Hull St. in the Midlothian suburb of Richmond. Tower Medical’s tenants include Bon Secours Health Systems and Sheltering Arms Hospital. Chandler Pace of Marcus & Millichap led the team in representing the seller, the original developer that built the asset in 2005, and securing the buyer, a 1031 investor based in Washington, D.C. The Marcus & Millichap team included Robert Filley, Christopher Chadwick, Dawson Rinder, Josh Feldman and Ian Ruel.
ALEXANDRIA, VA. — KLNB Retail has brokered the sale of New Grand Shopping Center, a 65,330-square-foot shopping center located at 6229-6259 Little River Turnpike in Alexandria, roughly 10 miles outside of Washington, D.C. The center was fully leased at the time of sale and anchored by New Grand Mart, an international supermarket that specializes in Korean, East Asian, Latino and African groceries. Other tenants include Pho Factory, TempAsian Café, Hee Been Restaurant, Panaderia Latina, Mamas Chicken, Kabob Restaurant, Halal Meats, a dry cleaner, laundromat, men and women’s hair salons and a beauty supply store. Andy Stape and Vito Lupo of KLNB Retail represented the seller, Grand Shopping Center LLC, and procured the buyer, a private real estate fund advised by Crow Holdings Capital-Real Estate. The sales price was not disclosed.
RICHMOND, VA. — Apple Hospitality REIT Inc. (NYSE: APLE) has agreed to acquire Apple REIT Ten Inc. for $1.3 billion. The merger will create one of the largest select-service hospitality REITs in the industry with a combined 234 hotels and 30,017 rooms. The hotels are located in 94 MSAs across 33 states. The company, which will retain the Apple Hospitality REIT name and ticker symbol, will have an enterprise value of approximately $5.7 billion, according to the companies. Apple Ten, a non-traded REIT, was built and is managed by the same team that currently manages the publicly traded Apple Hospitality REIT. The $1.3 billion transaction value is comprised of $94 million in cash, roughly 49.1 million Apple Hospitality common shares issued to Apple Ten shareholders, and the assumption of approximately $239 million in debt. The merger agreement provides Apple Ten with a 45-day window to solicit alternative proposals from third parties. The termination fee for Apple Ten is $5 million if the company decides to pull out of the agreement within the 45-day window. Following that grace period, Apple Ten will have to pay $25 million to negate the merger with Apple Hospitality. The grace period ends on May 28. …
ROANOKE, VA. — H&R Retail has arranged the sale of Valley View, an 81,789-square-foot shopping center located at 1123 Valley View Blvd. in Roanoke, for an undisclosed price. The center was fully leased at the time of sale to tenants including hhgregg and Dick’s Sporting Goods. Michael Gorsage and Kate Howarth of H&R Retail represented the seller, Valley View SC LLC, in the transaction. David Andrews of The Shopping Center Group represented the buyer, Southeast Holdings LLC.
RICHMOND, VA. — CBRE | Richmond has arranged a 36,125-square-foot lease for a new 2nd & Charles store in Richmond. The new and used goods retailer will replace a former Babies “R” Us store at the Tuckernuck Square shopping center located at 9004 W. Broad St. 2nd & Charles specializes in trading used books, audio books, CDs, DVDs, video game systems, vinyl records and accessories. Brand new merchandise is also available for purchase along with musical instruments and autographed books. According to CBRE | Richmond, each 2nd & Charles store typically has more than 500,000 items and three miles of shelf space. The new store will be the retailer’s second location in the greater Richmond area and third in Virginia. Rob Black, Robby Brownfield and Chris Doyle of CBRE | Richmond represented 2nd & Charles in the transaction.
CHARLOTTESVILLE, VA. — Dominion Realty Partners plans to develop Fifth Street Place Apartments, a 200-unit, Class A community located at the intersection of I-64 and 5th Street in Charlottesville. The property will be situated adjacent to Red Light Management’s new 465,000-square-foot retail center that will be anchored by Wegmans. Community amenities will include an upscale clubroom with Wi-Fi access, fitness center, coffee bar, business center and a large swimming pool. This is Dominion Realty’s first development in Charlottesville. Citizens Bank of Charlotte provided construction financing for the project. The design team, which includes architect Rule Joy Trammell & Rubio and general contractor VCC, plans to deliver Fifth Street Place in spring 2017.