Top Stories

Moss Construction Completes $134M University of Miami Lakeside Village Student Housing Property

by Alex Tostado August 20, 2020

CORAL GABLES, FLA. — Moss Construction has delivered University of Miami Lakeside Village, a $134 million, 1,115-bed student housing community on the University of Miami campus. The 569,441-square-foot, seven-story project features 25 interconnected buildings and several outdoor spaces. The property offers classrooms, music rooms, study areas, recreation rooms, a 200-seat auditorium and offices. The buildings also have food options, a package center and an exhibition hall. The university opened for in-person classes Monday, Aug. 17, a week earlier than planned due to the coronavirus pandemic. The fall semester will conclude Friday, Nov. 20, the week before Thanksgiving. To support sustainability initiatives, the property includes green roofs that absorb carbon dioxide to help clean the air and regulate the climate. Also, existing plant life was evaluated and, when possible, integrated into the landscape or relocated elsewhere on campus. Miami-based Arquitectonica designed the community. — Alex Tostado

August 20, 2020

Loans Retail Top Stories

Mall Owner CBL Plans for Chapter 11 Filing after Losing $215.3M in First Half of 2020

by Jeff Shaw August 19, 2020

CHATTANOOGA, TENN. — CBL Properties (NYSE: CBL) announced this morning that it has struck a deal with its lenders on a restructuring plan that will eliminate $900 million in debt and reduce annual interest expense by $20 million. Although the official press release from CBL did not mention bankruptcy, a representative from the company told the Chattanooga Times Free Press that the company plans to use the Chapter 11 bankruptcy process to complete the restructuring. The announcement follows yesterday’s second-quarter earnings call, where CBL revealed that it had drawn down its entire revolving credit facility, experienced $215.3 million in losses over the first half of the year, and expected to enter foreclosure proceedings on four malls. Those properties include Park Plaza in Little Rock, Arkansas, with $77.6 million in outstanding debt; Hickory Point in Forsyth, Illinois, with $27.4 million outstanding; EastGate Mall in Cincinnati with $31.9 million outstanding; and Burnsville Center in Minneapolis with $64.5 million outstanding. In addition, CBL is in discussion with lenders about restructuring or extending a $64.5 million loan on Greenbrier Mall in Chesapeake, Virginia; a $63 million loan on Asheville Mall in Ashville, North Carolina; and a $131.5 million loan on Oak Park Mall in …

August 19, 2020

Acquisitions Arizona Development Industrial Top Stories Western

Merit Partners-Led JV Buys 611 Acres in Metro Phoenix to Develop $1.5B Industrial Park

by John Nelson August 18, 2020

GLENDALE, ARIZ. — Merit Partners is leading a joint venture to develop Camelback 303, a $1.5 billion industrial park in the northwest Phoenix suburb of Glendale. The Phoenix-based firm recently closed on the acquisition of 611 acres along the Loop 303 corridor for the project, which will total 9 million to 10 million square feet of logistics and manufacturing space upon completion. Merit’s joint venture partners include industrial REIT First Industrial Realty Trust Inc. (NYSE: FR) and equity partner Diamond Realty Investments, which is the real estate investment arm of Mitsubishi Corp. According to second-quarter 2020 research from JLL, industrial asking rents in metro Phoenix are up 1.8 percent and absorption has increased 39 percent from this time last year. The second quarter marks the 28th straight quarter of positive absorption for the market. “We are extremely excited to be building at this location and at a point in the cycle where demand for Class A industrial is exponential — and expected to continue to rise in the years ahead,” says Kevin Czerwinski, president of Merit Partners. Camelback 303 will sit along the west side of Loop 303 and feature freeway frontage between the Camelback Road and Bethany Home Road …

August 18, 2020

Development Florida Loans Multifamily Southeast Top Stories Walker & Dunlop

Walker & Dunlop Provides $67M HUD Construction Loan for Shoma Village Apartments Near Miami

by Taylor Williams August 17, 2020

HIALEAH, FLA. — Walker & Dunlop has provided a $67 million HUD construction loan for Shoma Village Apartments, a 304-unit multifamily community that will be located in Hialeah. The borrower was locally based developer Shoma Group. Shoma Village Apartments will include 11,625 square feet of retail space fronting Hialeah Drive, about 15 miles northwest of downtown Miami. The property will consist of two eight-story residential buildings offering studio, one-, two-and three-bedroom units. Amenities will include a resident clubhouse, pool, fitness center with yoga and spin studios, resident coffee bar, dog park and a private courtyard with grilling stations. The clubhouse spans 7,300 square feet and features a concierge package room, communal kitchen, pool table and terrace area. Keith Melton, David Strange, Livingston Hessam and Jeremy Pino of Walker & Dunlop secured the loan through HUD’s 221(d)(4) program, which includes both construction and permanent financing for a project in a single loan. The financing was structured with a fixed interest rate for the two-year construction period and the 40-year amortization schedule. The financing also features a declining prepayment schedule for the initial 10 years post-construction. “The residential urbanization in cities like Hialeah is something we are seeing throughout Florida, and is very similar to …

August 17, 2020

Data Centers Development Industrial Southeast Tennessee Top Stories

Facebook Breaks Ground on $800M Data Center Outside Nashville

by Katie Sloan August 14, 2020

GALLATIN, TENN. — Facebook (NASDAQ: FB) has broken ground on an $800 million data center located roughly 18 miles north of Nashville in Gallatin. The company acquired the 809-acre development site earlier this year for $20 million under the name Woolhawk LLC, according to reports by local news site Gallatin News. The 982,000-square-foot campus will be built to LEED Gold certification standards, using 80 percent less water than the average data center. The development will also be supported by 100 percent renewable energy. Facebook has signed contracts for 220 megawatts of solar energy in Tennessee in support of the project. The company anticipates more than 1,100 construction workers will be onsite at the peak of construction, and the completed development will support approximately 100 new jobs in the form of technicians, engineers, facility managers, logistics professionals and security personnel. “We’re excited about Facebook in Gallatin because of the advantages we think it is going bring to our community,” says Paige Brown, the city’s mayor. “We’re confident in the brightest of futures for both Facebook and the city of Gallatin.” Facebook unveiled plans to build another $800 million data center 65 miles west of Chicago in Dekalb, Illinois, earlier this year. …

August 14, 2020

Acquisitions Illinois Midwest Office Top Stories

SHVO, Deutsche Finance Acquire Iconic ‘Big Red’ Office Tower in Chicago for $376M

by Alex Tostado August 13, 2020

CHICAGO — A joint venture between SHVO and Deutsche Finance Bank has acquired the CNA Center, more commonly known as “Big Red” due to the bold color of the 45-story office tower, for $376 million. The 1.2 million-square-foot property is situated at 333 S. Wabash Ave. in Chicago’s East Loop district. At the time of sale, the property was leased to CNA Insurance, financial services company Northern Trust and the Chicago Housing Authority. Graham, Anderson, Probst & White originally designed the tower in 1973, and it underwent renovations in 2019. Amenities include a new food hall open to the public, a fitness center and childcare facilities. “Big Red is among the most recognizable towers in the Windy City’s skyline — the birthplace of the skyscraper and home to so much rich architectural history,” says Michael Shvo, chairman and CEO of SHVO. “We’re proud to now be a part of that Chicago tradition with this addition to our national portfolio of super-prime core properties. We look forward to not just maintaining Big Red’s stature but elevating it in the years to come.” The joint venture entered into a contract agreement with the sellers, Morgan Stanley and The Morgon Cos., in the …

August 13, 2020

Florida Retail Southeast Top Stories

Stein Mart Files for Chapter 11 Bankruptcy, Plans to Close Most Stores

by Kristin Harlow August 12, 2020

JACKSONVILLE, FLA. — Discount retailer Stein Mart Inc. (NASDAQ: SMRT) has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida. The motion is an effort to maintain operations, including “the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business and the use of cash collateral.” Jacksonville-based Stein Mart expects to close a significant portion, if not all, of its brick-and-mortar stores. The company has launched a store closing and liquidation process but will continue to operate in the near term. Stein Mart says it is evaluating any and all strategic alternatives, including the potential sale of its e-commerce business and related intellectual property. In its fiscal first quarter that ended May 2, Stein Mart reported a net loss of $65.7 million. In addition, a merger agreement with an affiliate of Kingswood Capital Management LP terminated in April due to “uncertainty caused by the COVID-19 pandemic,” according to Stein Mart’s quarterly report. “The combined effects of a challenging retail environment coupled with the impact of the COVID-19 pandemic have caused significant financial distress on our business,” says Hunt Hawkins, Stein Mart CEO and …

August 12, 2020

Acquisitions Industrial Texas Top Stories

VEREIT, Ocean West Purchase Distribution Center in Dallas for $246.7M

by John Nelson August 11, 2020

DALLAS — VEREIT Inc. and Ocean West Capital Partners LLC have teamed up to acquire a 2.3 million-square-foot industrial facility in Dallas. The newly built property is located at 9314 W. Jefferson Blvd. and is fully leased to The Home Depot. NorthPoint Development sold the build-to-suit property to the buyers for $246.7 million. The Missouri-based developer is staying on as a joint venture partner. There are 20 years remaining on the lease with The Home Depot. “The property’s logistically desirable location along with the tenant’s creditworthiness and the established long-term lease make this a strong investment for the growing partnership,” says Thomas Roberts, VEREIT’s executive vice president and chief investment officer. The property, known as Dallas Global Industrial Center, offers access to Interstate 30, Texas Highway 161, Loop 12, Interstate 20 and Interstate 35E. The park also has a direct spur from the main Union Pacific Rail Service line. The acquisition is the latest in VEREIT’s (NYSE: VER) partnership with Korea Investment & Securities Co. Ltd., a global financial services firm based in Korea that Ocean West advises, as well as Tiger Alternative Investors Ltd. To date, the VEREIT-led partnership has bought seven Class A, single-tenant industrial properties totaling $653.7 …

August 11, 2020

Development Georgia Office Southeast Top Stories

Trammell Crow Completes 345,000 SF, Transit-Served Office Building in Metro Atlanta

by Taylor Williams August 10, 2020

DUNWOODY, GA. — Dallas-based developer Trammell Crow Co. has completed Twelve24, a 345,000-square-foot office building located at 1224 Hammond Drive in Dunwoody, a suburb of Atlanta in the metro’s Central Perimeter submarket. The 16-story building features a skybridge with direct access to the Dunwoody MARTA Station. Twelve24 is also located adjacent to Perimeter Mall and in close proximity to Interstate 285 and State Route 400. In addition, Twelve24 houses 11,000 square feet of ground-floor retail space, 7,500 square feet of which is preleased to Iron Hill Brewery & Restaurant. Insight Global, a national staffing and services company, has leased approximately 72 percent of the office space as the anchor tenant. The building offers an amenity floor with a fully staffed, 10,000-square-foot fitness center, an indoor conference center, tenant lounge and a café. Outdoor amenities include a yoga lawn, multiple lounge areas and a covered outdoor conference center. According to a second-quarter report on the Atlanta office market from Colliers International, the Central Perimeter submarket has a direct vacancy rate of 14.7 percent and has seen more than 1 million square feet of positive absorption year-to-date. Trammell Crow is also working with Concord Hospitality Group to develop a 177-room Hyatt Place …

August 10, 2020

Development Industrial Kansas Midwest Top Stories

Urban Outfitters to Build $350M Distribution Center Near Kansas City

by Katie Sloan August 7, 2020

KANSAS CITY, KAN. — Urban Outfitters (Nasdaq: URBN) has announced plans to develop a $350 million omni-channel distribution center near Kansas City. The 880,000-square-foot development will be located on ancillary land owned by the Kansas Speedway in Wyandotte County, roughly 15 miles outside downtown Kansas City. The Philadelphia-based retailer is set to begin construction on the facility this fall with completion scheduled for early 2022. Documents obtained by The Kansas City Star identify Hillwood Development Co. as the developer for the project. Fort Worth, Texas-based Hillwood is led by Ross Perot Jr., son of the late Ross Perot, a billionaire who ran for president twice in the 1990s. Urban Outfitters selects the locations of its distribution centers based on a combination of factors, including location, available workforce and transportation infrastructure. Kansas City’s central location was cited as critical to the company’s distribution network. “Our priorities in identifying the home for our new omni-channel distribution center focused on people, and it was the quality of the local workforce and the commitment of their representatives in the state that convinced us this is the right place to be,” says Dave Ziel, chief development officer of Urban Outfitters. “This facility will be at the …

August 7, 2020

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