Top Stories

Public-Private Partnership Breaks Ground on 616-Bed Student Housing Project in Nashville

by Taylor Williams May 3, 2021

NASHVILLE, TENN. — A public-private partnership between Balfour Beatty Campus Solutions, Axium Infrastructure and Vanderbilt University has broken ground on a 616-bed student housing project in Nashville. The total cost of the project was not disclosed, but the Nashville Post and Nashville Business Journal both reported late last week that the development team received approximately $107 million in construction financing. According to Vanderbilt University’s news service, construction of the project was originally scheduled to start last summer but was delayed due to COVID-19. The community will be located on Broadway between Lyle and 20th avenues and will include 25,000 square feet of retail space. The new residence hall will offer a mix of studio, one- and two-bedroom units targeting graduate and professional students. Residences will be furnished with full washers and dryers, and costs of utilities will be included in rent. Shared amenities will include a 13,000-square-foot collaboration space with a dedicated area for academic and entrepreneurial endeavors, private study spaces, fitness center and a public courtyard. “Providing an updated housing option with modern amenities in a vibrant neighborhood convenient to campus will further the university’s goal to recruit the best graduate and professional students and provide them with an …

May 3, 2021

Arizona California Company News Top Stories Western

Realty Income Agrees to Acquire VEREIT in All-Stock Transaction, Create $50B REIT

by Julia Sanders April 30, 2021

SAN DIEGO and PHOENIX — Realty Income Corp. (NYSE: O), a San Diego-based real estate investment trust active in the net lease sector, has agreed to acquire VEREIT (NYSE: VER), a Phoenix-based real estate investment trust in the single-tenant net lease sector. The all-stock transaction will create a combined company dominant in the net lease space with an enterprise value of approximately $50 billion, making it one of the largest real estate investment trusts. VEREIT shareholders will receive 0.705 shares of Realty Income stock for every share of VEREIT stock they own. After the merger agreement closes, the combined company — operating as Realty Income — plans to create a taxable spin-off of substantially all of the office properties of both companies into a new, self-managed, publicly traded REIT known as SpinCo. Realty Income and former VEREIT shareholders are expected to own about 70 percent of Realty Income and 30 percent of SpinCo. “This is a huge game changer for the REIT market,” says Scott Merkle, managing partner of SLB Capital Advisors, which specializes in net lease transactions. “It creates the sixth largest REIT, makes Realty Income multiples larger than the nearest net lease competitor, and allows them to become …

April 30, 2021

California Hospitality Top Stories Western

Ohana Real Estate Sells 130-Room Montage Healdsburg Luxury Resort in California’s Wine Country for $265M

by Katie Sloan April 29, 2021

HEALDSBURG, CALIF. — Ohana Real Estate Investors has sold the Montage Healdsburg, a 130-room luxury hotel located within California’s Sonoma County wine country. Sunstone Hotel Investors Inc. (NYSE: SHO) bought the resort for $265 million, more than $2 million per key. Montage Healdsburg is a newly built, 258-acre resort situated within walking distance of downtown Healdsburg. The property offers bungalow-style guest rooms and suites alongside shared amenities including a full-service spa; multiple swimming pools; an archery range; pickleball courts; bocce ball; dining options including a multi-level main restaurant and an outdoor bar and grill overlooking the resort’s vineyards; and meeting and event space. The property also offers a number of 4,500-square-foot, move-in-ready residences titled Harvest Homes, which feature four bedrooms with bed-to-bath parity. Ohana will retain ownership of the residential parcels within the property, and has begun constructing homes and selling custom homesites affiliated with the resort. “This sale reflects the strong interest from investors in best-in-class, leisure-oriented resorts as the hotel industry begins to recover from the effects of the COVID-19 pandemic,” says James Cole, head of asset management at Ohana. Dentons was legal advisor to Ohana on the transaction. This disposition marks Ohana’s second sale of a hotel …

April 29, 2021

Development Georgia Mixed-Use Southeast Top Stories

CIM Group Completes Loft-Style Residences Within $5B Centennial Yards Project in Downtown Atlanta

by Kristin Harlow April 28, 2021

ATLANTA — CIM Group has completed construction of The Lofts at Centennial Yards South, an adaptive reuse apartment project within the larger $5 billion development in downtown Atlanta known as Centennial Yards. A ribbon-cutting ceremony that took place yesterday also marked the completion of the 160 Trinity offices as well as the launch of construction at 99 Ted Turner creative office, 185 Ted Turner office and the Canyon, a 740-foot-long retail, dining and event destination. Located adjacent to Atlanta’s Castleberry Hill neighborhood, Centennial Yards South comprises six acres and is the first portion to reach completion within the 50-acre Centennial Yards. A redevelopment of the former Southern Railway Freight Depot and Office Building, which served Norfolk Southern from 1982 to 2005, anchors this portion of the development. The Lofts at Centennial Yards South features 162 loft-style apartments, including 27 furnished units to accommodate corporate relocations and Atlanta’s burgeoning film industry. The apartments will be available for occupancy starting this summer. The creative office space at 99 Ted Turner will span approximately 80,000 square feet. The Canyon will serve as a pedestrian promenade below street level. LaGrange-based craft beverage company Wild Leap is slated to open a two-level brewery, distillery and …

April 28, 2021

Acquisitions California Multifamily Top Stories Western

Waterford, Development Authority Jointly Acquire Metro LA Apartments for $300M, Plan Workforce Housing Conversion

by Amy Works April 27, 2021

GLENDALE, CALIF. — Waterford Property Co., in partnership with the California Statewide Communities Development Authority (CSCDA), has purchased Altana, an apartment community located at 633 N. Central Ave. in Glendale, for $300 million. The partnership plans to convert the 507-unit property to workforce housing. Upon taking ownership, Waterford and CSCDA will immediately lower rents for qualified new residents making 80 percent to 120 percent of the area median income (AMI) in Los Angeles County. Current tenants who qualify can participate in the program during lease renewals. The AMI for Los Angeles County is $52,574 annually, which translates to roughly $4,381 per month. To be considered affordable, a household would need to spend less than 30 percent of its monthly income on rent. For Los Angeles County and Glendale, this means that rents equal to or less than $1,314.30 per month are deemed affordable for households earning 100 percent of AMI. Rental rates at Altana currently range from $2,235 per month for a one-bedroom unit to $4,340 for a two-bedroom apartment and loft layout, according to the property website. In partnership with CSCDA, Waterford has now acquired four multifamily communities in California since the start of the year as part of …

April 27, 2021

Development North Carolina Office Southeast Top Stories

Apple to Open $1B Office Campus in North Carolina’s Research Triangle, Add 3,000 Jobs

by Taylor Williams April 26, 2021

CUPERTINO, CALIF. — Apple Inc. (NASDAQ: AAPL) will open a $1 billion office campus in North Carolina’s Research Triangle, a move that is expected to add more than 3,000 new jobs to the local economy. The move is part of a larger, $430 billion expansion and capital investment program that the Cupertino-based tech giant projects will bring about 20,000 new jobs to the country over the next five years. According to the Raleigh News & Observer, North Carolina’s Economic Investment Committee, for its part, approved a job creation and tax incentives plan for Apple that was valued at $845 million over 40 years, the largest such grant in state history. The local newspaper also reports that the campus will span about 1 million square feet and will be located in Wake County on a site near the border of Cary and Morrisville, two smaller towns on the south side of the triangle. A construction timeline has not yet been released. As part of its commitment to the Tar Heel State, Apple plans to launch a $100 million fund to support local schools and invest $110 million in improving pieces of local infrastructure, such as bridges and telecommunications systems. The new …

April 26, 2021

Acquisitions Massachusetts Northeast Retail Top Stories

JLL Arranges $295M Sale of Stop & Shop-Anchored Grocery Portfolio in Northeast

by Julia Sanders April 23, 2021

QUINCY, MASS. — JLL Capital Markets has arranged the $295 million sale of a portfolio of 11 single-tenant retail buildings net leased on a long-term basis to Stop & Shop in markets throughout Connecticut, Massachusetts and Rhode Island. JLL marketed the portfolio on behalf of the sellers, Winstanley Enterprises and Surrey Equities. The Inland Real Estate Group of Cos. Inc. was the buyer. Additionally, JLL arranged two acquisition loans totaling approximately $158 million on behalf of the new owner. The two 10-year, fixed-rate loans were originated by JLL through a life insurance company and a CMBS lender. The 11 buildings in the portfolio are all net leased to Stop & Shop, a division of Ahold Delhaize USA Inc., which is the third-largest supermarket operator in the U.S. Quincy, Mass.-based Stop & Shop is the No. 1 grocer by market share in Connecticut, Massachusetts and Rhode Island, according to JLL. The 748,141-square-foot portfolio includes three properties in the Boston area; one in the Cape Cod, Mass. area; four in the Providence, R.I. area; and three in the Hartford, Connecticut area. According to a JLL research report, titled “U.S. Grocery Tracker 2021,” grocery-anchored retail centers continue to be investors’ preferred retail property …

April 23, 2021

Development Georgia Hospitality Southeast Top Stories

Skanska, SG Contracting Selected to Build $308.3M Signia by Hilton Hotel in Downtown Atlanta

by Katie Sloan April 22, 2021

ATLANTA — A joint venture between Skanska and SG Contracting Inc. has been selected to build a $308.3 million Hilton (NYSE: HLT) hotel adjacent to the Georgia World Congress Center (GWCC) in downtown Atlanta. The 1.2 million-square-foot hotel will be the first newly constructed project under Hilton’s upscale Signia banner, and will act as a headquarters hotel for the GWCC. The property will overlook the Mercedes-Benz Stadium and is located near the Omni Atlanta Hotel, CNN Center, State Farm Arena and the Georgia Aquarium. The 40-story hotel is set to feature 975 guest rooms alongside amenities including 75,000 square feet of world-class meeting and event space; a connected walkway to the GWCC; spa; fitness center; 6,670-square-foot pool deck; an outdoor event lawn; a market; two chef-driven restaurants; and three bars. “The Signia by Hilton will further elevate Atlanta’s international presence and position as a major host of civic, cultural and commercial events,” says Scott Cannon, executive vice president and general manager for Skanska’s Georgia and South Carolina operations. Skanska and SG Contracting will provide pre-construction and construction management services for the hotel, which Gensler designed to achieve LEED Gold certification. The development, which Cannon says will generate approximately 600 construction jobs, is …

April 22, 2021

Acquisitions New Jersey Northeast Office Top Stories

Birch Group Acquires Four-Building Office Portfolio in Northern New Jersey for $255M

by Kristin Harlow April 21, 2021

SHORT HILLS, N.J. — The Birch Group has acquired a four-building office portfolio in the Short Hills submarket of Northern New Jersey for $255 million. The 843,300-square-foot portfolio comprises four Class A buildings located at 51, 101, 103 and 150 JFK Parkway. The properties are currently 80 percent leased to 22 tenants, including Citibank, Investors Bank, KPMG, Bank of America, UBS, Dun & Bradstreet, Morgan Stanley and Wells Fargo. “During the pandemic, there has been a demographic shift to the suburbs, and the migration of this talent pool represents an extraordinary opportunity to meet the demand for high-quality office assets in prime New Jersey markets,” says Mark Meisner, CEO and founder of Birch. “Short Hills is among one of the most prestigious suburban locales and it has consistently achieved above-average rents in New Jersey, while maintaining the highest occupancy rates within the market.” David Bernhaut led a Cushman & Wakefield team that represented the seller, Mack-Cali Realty Corp. (NYSE: CLI). The buyer has also retained Cushman & Wakefield as the leasing agent for the properties. Birch says it views the acquisition as a repositioning opportunity and plans to employ a value-add strategy. Birch will complement $15.2 million of recently completed …

April 21, 2021

Acquisitions Georgia Mixed-Use North Carolina Office Southeast Top Stories

Preferred Apartment Communities Agrees to Sell Southeast Office Portfolio to Highwoods for $717M

by John Nelson April 20, 2021

ATLANTA AND RALEIGH, N.C. — Preferred Apartment Communities (NYSE: APTS) has agreed to sell a portfolio of office assets in Atlanta and North Carolina to Highwoods Properties Inc. (NYSE: HIW). The deal, which is expected to close during the third quarter, is valued at $717 million and includes $28 million of planned improvements and $5 million in transaction costs. The sale comprises the bulk of Preferred Apartment Communities’ (PAC) office assets. Joel Murphy, president and CEO of the Atlanta-based REIT, says that the sale of the office portfolio is part of a larger plan to simplify its real estate footprint. The company also sold a portfolio of student housing properties last year as part of that plan. “Upon closing, PAC’s real estate portfolio will be further streamlined with an increased primary weighting on our core, Class A, suburban Sun Belt multifamily business and our complementary 100 percent grocery-anchored Sun Belt retail investments,” says Murphy, referring to PAC’s wholly owned retail investment subsidiary New Market Properties LLC. The portfolio sale to Highwoods includes seven properties in Atlanta, Charlotte and Raleigh. The assets include: • 150 Fayetteville, a 560,000-square-foot tower in downtown Raleigh • Capitol Towers, a two-building complex in Charlotte’s SouthPark …

April 20, 2021

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