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DevelopmentMixed-UseNew YorkNortheastOfficeRetailTop Stories

Ingka Investments Acquires Stake in Fifth Avenue Mixed-Use Tower Development in Manhattan, Now to Feature IKEA Store

by John Nelson

NEW YORK CITY — Ingka Investments, the investment arm of Ingka Group, which owns and operates a majority of IKEA stores globally, has purchased a one-third stake in the development of a 1 million-square-foot mixed-use tower underway in Manhattan. As part of the arrangement, IKEA will open a two-level store at the base of 570 Fifth Avenue, which will include a corner entrance along Fifth Avenue. Extell Development Co. is the master developer of 570 Fifth Avenue, which will feature Class A retail space and offices at the intersection of Manhattan’s Plaza and Grand Central districts. The project marks the largest development on Fifth Avenue in more than 60 years, according to Ingka Investments. “We have been working on assembling this project for almost two decades, and Ingka Investments’ substantial commitment allows us to move forward with the construction and leasing of the best new office building in New York,” says Gary Barnett, founder and chairman of Extell Development, which will retain a two-thirds ownership stake in the development. Ingka Investments’ stake in the tower includes the planned IKEA store. IKEA will open a “customer meeting point,” the retailer’s small-format store prototype, within the tower’s 80,000 square feet of planned …

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AcquisitionsMultifamilyNortheastPennsylvaniaTop Stories

Morgan Properties Acquires 3,434-Unit Multifamily Portfolio in Pennsylvania

by Taylor Williams

CONSHOHOCKEN, PA. — Morgan Properties, a development and investment firm based in metro Philadelphia, has acquired a portfolio of 11 multifamily properties totaling 3,434 units in Pennsylvania. Morgan purchased the properties from their original developer, DePaul Management Co. The price was not disclosed. Matt Stefanski and Zachary Pierce of Berkadia brokered the transaction. The portfolio consists of: The new ownership plans to invest more than $80 million in capital improvements to the portfolio. Renovations will feature upgrades to units’ kitchens and bathrooms, as well as the installation of in-unit washers and dryers. Morgan will update lighting, landscaping, roofing and parking areas at all properties and install high-efficiency heating systems. Amenity and common area enhancements will also be undertaken throughout the portfolio. These initiatives will include fitness center upgrades and expansions; construction of exterior dog parks and pet wash stations; and additions of new amenities like Amazon package hubs, playgrounds, pickleball courts and outdoor grilling and dining stations. “The DePaul acquisition directly supports our strategic goal of acquiring large multifamily portfolios with high barriers to entry where our market concentration will enable us to achieve operational efficiencies and capitalize on economies of scale,” says Jonathan Morgan, president of Morgan Properties. — …

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Company NewsRetailTop Stories

Walgreens Considers 2,150 Underperforming Stores for Potential Closure

by Jeff Shaw

DEERFIELD, ILL. — Walgreens (NASDAQ: WBA) is set to close a significant portion of its store locations across the United States over the next three years. The company is finalizing its “footprint optimization program” after failing to meet earnings expectations in its fiscal third quarter, which ended May 31. Walgreens CEO Tim Wentworth reported in the company’s earnings call on Thursday morning that 25 percent of stores in the United States were not profitable, and that “changes are imminent” for those locations. The retail pharmacy chain currently runs about 8,600 locations in the United States, meaning that as many as 2,150 underperforming stores face potential closure. “We are finalizing a multifactor store footprint optimization program, which we expect will include the closure of a significant portion of these underperforming stores over the next three years,” said Wentworth. “Plans to finalize this number are in motion, and we will update you in due course.” Even among the underperforming stores that will remain open, “we will contemplate additional closures if performance does not improve, which includes external factors, such as reimbursement rates,” said Wentworth. “While it is not an easy decision to close a store, we will work to minimize customer disruptions. …

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AcquisitionsMultifamilyTop Stories

KKR Acquires $2.1B National Multifamily Portfolio

by Hayden Spiess

NEW YORK CITY — New York City-based investment firm KKR has acquired a portfolio of multifamily properties for roughly $2.1 billion. Development and operating company Quarterra Multifamily was the seller.  Situated throughout the United States, the portfolio comprises more than 5,200 multifamily units. The properties include a mix of mid- and high-rise buildings, with a concentration in the states of California, Washington, Florida, Texas, Georgia, North Carolina, Colorado and New Jersey. The number of individual properties was not disclosed. According to Daniel Rudin, KKR managing director, the portfolio “serves high-growth metropolitan areas across the country, where new supply will slow down significantly looking out beyond the next couple years.” “We believe this is a great moment to invest in real estate, as transaction activity starts to pick up on the heels of two years of dislocation in commercial real estate markets,” adds Justin Pattner, partner and head of real estate equity in the Americas with KKR.  Gibson Dunn & Crutcher LLP advised KKR in the transaction, and Troutman Pepper Hamilton Sanders LLP and Jones Lang LaSalle advised the seller.  Carter-Haston, MG Properties and Dalan Real Estate will work with KKR to operate the properties moving forward.  — Hayden Spiess

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DevelopmentMidwestMixed-UseOfficeOhioTop Stories

Joint Venture Plans $100M Mixed-Use Redevelopment of Former Medical Mutual Headquarters in Downtown Cleveland  

by Kristin Harlow

CLEVELAND — Spark GHC and Cleveland Construction Inc. have formed a joint venture to redevelop a 400,000-square-foot office building in downtown Cleveland into mixed-use space. Dubbed Project Scarlet, the $100 million development involves the adaptive reuse of the Rose Building, which formerly served as the headquarters of insurance company Medical Mutual. The joint venture plans to transform the property into a boutique hotel with apartment units and ground-floor retail space. The project team says the development will not only breathe new life into a historic structure, but also address the evolving needs of the Cleveland community for contemporary living spaces and upscale hospitality offerings. Founded in 1934, Medical Mutual is the oldest and one of the largest health insurance companies based in Ohio. The Rose Building had served as the home of Medical Mutual since 1947, but the insurer announced in late 2022 that it would leave the downtown offices for its suburban headquarters in Brooklyn, Ohio, according to Cleveland.com. Since 2020, the Cleveland market has emptied nearly 2.4 million square feet of office space due to negative absorption, according to Newmark. The office vacancy rate increased to 23.4 percent in the first quarter of 2024, up 50 basis points …

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DevelopmentIndustrialNorth CarolinaSoutheastTop Stories

Ozempic Manufacturer Novo Nordisk Breaks Ground on $4.1B Production Facility Near Raleigh

by John Nelson

CLAYTON, N.C. — Novo Nordisk, a Danish pharmaceutical giant, has broken ground on a 1.4 million-square-foot manufacturing facility in the Raleigh suburb of Clayton. The drugmaker plans to invest $4.1 billion in the development in order to boost the production of diabetes treatment Ozempic, weight loss drug Wegovy and other injectable therapies. Operations at the 56-acre site will include filling and packaging syringes and injection pens. According to CNBC, the demand for Wegovy and Ozempic has outstripped supply in the United States over the past year. The disparity has led to “intermittent shortages,” reports the national news outlet. In 2024 alone, Novo Nordisk is investing $6.8 billion into pharmaceutical production, up from approximately $4 billion last year. “It took us a century to reach 40 million patients, but through this expansion and continued investment in our global production, we’re building Novo Nordisk’s ability to serve millions more people living with serious chronic diseases in the future,” says Lars Fruergaard Jørgensen, president and CEO of Novo Nordisk. “This is yet another real signal of our efforts to scale up our production to meet the growing global need for our life-changing medicines and the patients of tomorrow.” The expansion project will double …

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DevelopmentIndustrialTexasTop Stories

Toyota Plans $531M Expansion at Manufacturing Facility in San Antonio

by Taylor Williams

SAN ANTONIO — Toyota is planning a $531 million expansion of its manufacturing facility in San Antonio, which is informally known as Toyota Texas. The initiative is expected to create more than 400 new full-time jobs. The centerpiece of the expansion will be the development of a new 500,000-square-foot facility that will be dedicated to producing drivetrain parts such as transmission systems, driveshafts, axles and wheels. A construction timeline was not disclosed. The Japanese automaker’s San Antonio plant spans about 2,000 acres and has been in operation for nearly two decades. The facility is the exclusive home of the Tundra truck and all-hybrid Sequoia SUV, both of which are assembled on the same production line. The plant rolled out approximately 181,000 new vehicles in 2023 alone. To date, Toyota’s investment in the facility and the surrounding regional economy is approximately $4.7 billion. “Toyota Texas’ $531 million investment to expand its manufacturing facility in San Antonio and create over 400 good-paying jobs is a testament to Texas’ unmatched business-friendly environment, low taxes and skilled workforce,” says Texas Gov. Greg Abbott. — Taylor Williams

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DevelopmentMultifamilySouth CarolinaSoutheastStudent HousingTop Stories

Landmark Properties Acquires 67-Acre Site for Cottage-Style Student Housing Community in Columbia, South Carolina

by Jeff Shaw

COLUMBIA, S.C. — Landmark Properties has acquired a 67-acre development site located near the University of South Carolina campus in Columbia. Landmark plans to construct an 826-bed cottage-style student housing community at the site. The community will offer fully furnished units in two- through six-bedroom floor plans. Landmark will begin construction imminently and plans to deliver the project in August 2026.  Units will be wired for high-speed internet and will feature hardwood-style laminate floors, quartz countertops, stainless-steel appliances and full-sized washers and dryers. Community amenities will include an outdoor pool complex with a sun deck, cabanas, hammocks, a Jumbotron and outdoor grilling stations; a sand volleyball court; sports simulator; fire pits; a 24-hour fitness center; study spaces; and a computer lab. Residents will also have access to a complimentary shuttle service for commuting to and from the University of South Carolina campus and downtown Columbia. Landmark Cottage Construction, the company’s in-house general contractor, will manage construction of the project. The development site is situated at 1050 Idlewild Blvd., less than a mile from the university’s Williams-Brice football stadium. The site is located adjacent to a parcel earmarked for the University of South Carolina’s stadium project, a $1 billion modernization initiative …

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AcquisitionsHospitalityNew YorkNortheastTop Stories

EOS Hospitality Acquires The William Vale Luxury Hotel in Brooklyn for $177M in Bankruptcy Sale

by Katie Sloan

NEW YORK CITY — EOS Hospitality has acquired The William Vale, a luxury hotel located at 111 N. 12th St. in the Williamsburg neighborhood of Brooklyn in New York City. The property was purchased for $177 million through a bankruptcy sale. The acquisition by stalking horse bidder EOS followed a three-year ownership restructuring and litigation process, which was led by Asaf Ravid of All Year Holdings Ltd. The transaction was approved by the U.S. Bankruptcy Court for the Southern District of New York in late May and resulted in the full payment of all outstanding secured bonds. Developed in 2016 by Riverside Developers, The William Vale rises 21 stories and offers 183 rooms. The property is one of four luxury hotels in Brooklyn and features eateries by restaurateur Andrew Carmellini, 7,300 square feet of indoor and outdoor function spaces, retail and office space. Eastdil Secured and A&G Real Estate Partners arranged the sale of the property. The partnership also secured the sale of the Williamsburg Hotel, a 147-room property also located in the Williamsburg neighborhood of Brooklyn, last summer.  Manhattan-based EOS Hospitality is a full-service hospitality management company with a portfolio ranging from budget-conscious to five-star luxury properties.  —Katie Sloan 

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DevelopmentMultifamilySoutheastStudent HousingTennesseeTop Stories

Subtext Begins Development of 498-Bed Student Housing Property Near the University of Tennessee

by Kristin Harlow

KNOXVILLE, TENN.— Subtext has started development of VERVE Knoxville, a 498-bed student housing property located at 1919 Lake Ave. adjacent to the University of Tennessee campus in Knoxville. The community will span 329,294 square feet, including nine floors of residential space and a five-level parking garage. The development will offer 136 fully furnished units in one-, two-, three- and four-bedroom configurations. More than 12,500 square feet of shared amenity spaces will include a wellness suite with sauna and meditation rooms; state-of-the-art fitness center and yoga studio; study pods and open study lounges; a pool terrace; and rooftop deck and lounge. The project is scheduled for completion in summer 2026. The development team includes general contractor Brinkmann Constructors and architect Dynamik Design. The community is Subtext’s second development in the Knoxville market following TENN, which opened in 2018. St. Louis-based Subtext, founded in 2014, is a student housing and multifamily developer. — Kristin Harlow and Katie Sloan

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