Top Stories

Stockbridge Acquires 8.7 MSF Industrial Portfolio Across Seven States

by Taylor Williams November 14, 2019

SAN FRANCISCO — Stockbridge Real Estate, a California-based investment firm with additional offices in Chicago and Atlanta, has acquired a portfolio of 17 industrial properties totaling 8.7 million square feet in seven states. Stockbridge purchased the portfolio from Hillwood, an industrial development and investment firm based in Fort Worth, Texas, according to IPE Real Assets, which tracks institutional property investments across the world. The analytics firm also reported that the transaction fetched a sales price of approximately $800 million. All of the properties are fully stabilized and have an average construction delivery date in 2018. The assets are located across the following markets: Dallas-Fort Worth, Austin, Columbus, Cincinnati, Nashville, Chicago, Las Vegas, Jacksonville and Eastern Pennsylvania. “This portfolio stands out for its high-quality, modern construction and well-connected, population-rich locations where major e-commerce industry tenants have chosen to expand their footprints,” says Nicole Stagnaro, managing director at Stockbridge. “In combination, these factors support the kind of cash flow visibility we expect from a long-term core portfolio.” The transaction comes on the heels of Stockbridge’s acquisition of a portfolio of 26 logistics and e-commerce facilities from San Diego-based Westcore Properties. PGIM Real Estate Finance served as the primary lender in both portfolio …

November 14, 2019

Development Georgia Retail Southeast Top Stories

Jodeco 158 to Develop $400M Mixed-Use Project Near Atlanta

by Taylor Williams November 13, 2019

STOCKBRIDGE, GA. — Jodeco 158 LLC, a newly formed firm headed by local developers Jeff Grant and David Hughes, will develop Bridges at Jodeco, a $400 million mixed-use project near Interstate 75 in Stockbridge, a southeastern suburb of Atlanta. According to the development team, Bridges at Jodeco will be built on the largest remaining tract of undeveloped land adjacent to I-75 in Henry County. The development will also offer convenient access to the Atlanta Motor Speedway and Hartsfield-Jackson Atlanta International Airport. The residential component of the 158-acre project currently calls for 300 high-end apartments, 90 single-family attached townhomes and 176 detached single-family homes that may be used for senior living. More than 65 acres have been zoned for retail, dining and entertainment uses. In addition, the development team is seeking to include hotel, fitness and theater users, as well as other service providers for the retail component. About 20 acres of green space will be reserved for walking paths and trails and pocket parks. “Our intention is to create an amenity-rich, live-work-shop-dine-play destination where people can engage and relax in a comforting, family-centered setting,” says Grant, who serves as principal of Jodeco 158. “We believe Bridges at Jodeco will offer …

November 13, 2019

Acquisitions Healthcare Midwest Ohio Top Stories

Welltower Expands Medical Office Holdings Through Five Transactions Totaling $1.7B, Including Hammes Acquisition

by John Nelson November 12, 2019

TOLEDO, OHIO — Welltower Inc. (NYSE: WELL), a Toledo-based seniors housing and healthcare REIT, is continuing to expand its medical office holdings. The company announced five transactions totaling approximately $1.7 billion, including a $787 million portfolio acquisition of 29 Class A medical office buildings from Hammes Partners, a medical office investment firm based in Milwaukee. The 1.5 million-square-foot portfolio is concentrated in the New York City and Boston suburbs and includes properties in California, Texas and Maryland. The portfolio was 97 percent occupied at the time of sale and is affiliated with Baylor Scott & White, Providence St. Joseph, Trinity Health, Medstar and other not-for-profit health systems and multi-specialty physician groups. The portfolio has an average age of 10 years, a weighted average lease term of 12 years and 2.2 percent average annual rent increases. The Hammes transaction is scheduled to close in the fourth quarter of 2019. Separately, Welltower announced four separate outpatient medical transactions that are currently under contract for approximately $885 million. Details on these four deals were not disclosed. “These transactions establish Welltower as the largest commercial owner of medical office real estate in the country, with a platform approaching 30 million square feet,” says Thomas …

November 12, 2019

Acquisitions Maryland Office Southeast Top Stories

Inland Private Capital Sells Bank of America-Occupied Office Building in Baltimore for $99.3M

by Kristin Harlow November 11, 2019

BALTIMORE, MD. — JLL has arranged the sale of 11333 McCormick Road, a two-tower, single-tenant office building in Baltimore, for $99.3 million. The 377,332-square-foot property is net leased to Bank of America. Situated on 16.3 acres, the asset is located in the Hunt Valley submarket, about 15 miles north of downtown Baltimore. The property has immediate access to I-83 and light rail access to Baltimore City, greater Maryland and Pennsylvania. Built in 1974, the eight-story property was most recently renovated in 2016. Tivon Moffitt, Peter Bauman and Jay Wellschlager of JLL represented the seller, Inland Private Capital Corp. JLL was retained to market the property after it failed to trade the prior year. An undisclosed institutional buyer purchased the asset. “Investors are actively seeking high-quality, mission-critical corporate campuses such as this asset,” says Moffit. “We continue to see a flood of capital sources from institutional investors to private capital looking to purchase these types of properties.” The Hunt Valley submarket is a highly sought-after office market due to its high-quality workforce and extensive amenity base, says Wellschlager. Inland Private Capital Corp. specializes in securitized 1031 exchange transactions. Since its inception, the company has sponsored 232 private placement programs offering more …

November 11, 2019

Illinois Midwest Retail Top Stories

Sears to Close 96 More Stores by February 2020

by Alex Patton November 8, 2019

HOFFMAN ESTATES, ILL. — Sears Holdings Corp. plans to close 96 underperforming stores by February 2020, according to the retailer’s parent company, Transform Holdco LLC. The closings will consist of 51 Sears stores and 45 Kmart stores, leaving 182 operational Sears and Kmart stores remaining in the United States. The closing stores are scattered throughout all regions of the country, including 28 located in California. A full list of store closures can be found here. “Since purchasing substantially all the assets of Sears Holdings Corp. in February 2019, Transformco has faced a difficult retail environment and other challenges,” the company noted in a press release. “We will endeavor to create and deliver value through a strategic combination of our better-performing retail stores and our service businesses, brands and other assets, and expect to realize a significant return on our extensive portfolio of owned and leased real estate.” Ahead of the holiday season, Transform secured a $250 million lifeline financing from lenders including its owner, Eddie Lampert. Lampert bought Sears out of bankruptcy for $5.2 billion in January and, at the time, the sale prevented liquidation of 425 properties. “None of this is a surprise. Sears continues to morph from a …

November 8, 2019

Loans New York Northeast Office Top Stories

Barclays Provides $350M Loan to Refinance Leasehold Interest in 43-Story Manhattan Office Tower

by Alex Tostado November 7, 2019

NEW YORK CITY — Barclays has provided Shorenstein Properties LLC with a $350 million loan to refinance the leasehold position in 1407 Broadway, a 43-story, 1.1 million-square-foot office tower near Times Square in New York City. The five-year loan features a floating interest rate. Solil Management, the company that manages the assets of late real estate mogul Sol Goldman, owns the land upon which 1407 Broadway is situated. The building is located at 1407 Broadway between 38th and 39th streets, two blocks from Times Square, one block from Bryant Park and six blocks from Hudson Yards. Shorenstein acquired the property’s ground lease from Abraham Kamber Associates and the sublease from Lightstone Group in April 2015 for $330 million. Shorenstein then implemented a three-year, $62 million renovation to improve the lobby, common areas, security, roof, terrace and elevator cabs. The building also underwent a retail renovation, adding new storefronts and signing tenants such as Num Pang, Luke’s Lobster and ’Wichcraft, a sandwich shop. The retail portion of the building is 95 percent leased. Over the past 12 months, 160,000 square feet have been leased throughout the building. Geoff Goldstein of JLL, which arranged the loan, says Shorenstein moved forward with this …

November 7, 2019

Acquisitions Illinois Midwest Multifamily Top Stories

Golub & Co., Farpoint Acquire 1,675-Unit Prairie Shores Workforce Housing Community in Chicago

by Kristin Harlow November 6, 2019

CHICAGO — Chicago-based real estate development firms Golub & Co. and Farpoint Development have acquired Prairie Shores, a large-scale workforce housing apartment community in Chicago’s Bronzeville neighborhood. The purchase price was not disclosed, but Crain’s Chicago Business reported earlier this year that the buyers were slated to pay $180 million for the property. The Goldman Sachs Urban Investment Group was the largest equity investor in the acquisition. The 20-acre Prairie Shores campus, located between 26th and 31st streets on Martin Luther King Drive, includes five 19-story buildings totaling 1,675 units. Originally developed between 1957 and 1961, the buildings include several fitness centers and resident lounges. “Prairie Shores has been a mainstay in the Bronzeville neighborhood since the late 1950s, and we plan to build on its solid reputation while continuing to serve the hard-working families and individuals who currently live there,” says Michael Newman, principal, president and CEO of Golub. The community is part of a Near South Side section of the city that is flourishing from new development and destinations such as the Wintrust Arena, Historic Motor Row and McCormick Place, according to the buyers. Collin McKenna and Michael Goldman of Golub and Rami Peltz and Eric Helfand of …

November 6, 2019

Acquisitions Company News Indiana Michigan Midwest Retail Top Stories

Penske Corp. to Acquire Hulman & Co., Including Indianapolis Motor Speedway

by John Nelson November 5, 2019

BLOOMFIELD HILLS, MICH. AND TERRE HAUTE, IND. — Global trucking and logistics firm Penske Corp. has agreed to purchase Hulman & Co., a private company that owns Indianapolis Motor Speedway, the world-famous racetrack that hosts the Indianapolis 500 and Brickyard 400 racing events. The acquisition price was not disclosed. Situated on more than 1,000 acres in Speedway, Ind., the Indianapolis Motor Speedway was built in 1909 and today has a permanent seating capacity exceeding 235,000 people. When infield seating is added, more than 400,000 people can view the various racing events held at the 2.5-mile oval track. According to Hulman, which has owned the venue since 1945, it’s the world’s largest spectator sporting facility. “The Indianapolis Motor Speedway has been the centerpiece and the cathedral of motorsports since 1909 and the Hulman-George family has proudly served as the steward of this great institution for more than 70 years,” says Tony George, chairman of Hulman & Co., a family-owned company based in Terre Haute. “Now, we are honored to pass the torch to Roger Penske and Penske Corp. There is no one more capable and qualified than Roger and his organization to lead the sport of IndyCar racing and the Indianapolis …

November 5, 2019

Affordable Housing California Development Multifamily Top Stories Western

Apple Commits $2.5B to Combat Affordable Housing Shortage in California

by Jeff Shaw November 4, 2019

CUPERTINO, CALIF. — Apple Inc. (NASDAQ: AAPL) has announced a $2.5 billion plan to address the housing availability and affordability crisis in California. Much like Facebook’s recent announcement to commit $1 billion and build 20,000 affordable housing units in the Golden State, Apple cited the major discrepancy between the paces of population growth and affordable housing development as the key catalyst behind its plan. Earlier this year, Microsoft Corp. and Alphabet Inc., the parent company of Google, also pledged a combined $1.25 billion toward the development of affordable housing in metro Seattle and the Silicon Valley area, where those two firms are respectively based. In supporting this measure, Apple referenced a recent study by real estate brokerage firm Redfin that found that some 30,000 people had vacated the San Francisco area between April and June of this year. The study also found that the rate of homeownership in the Bay Area has hit a seven-year low. Both pieces of information suggest that residents, whether buying or renting, are simply being priced out of the region. In response to the growing cost of housing in California, Gov. Gavin Newsom signed a bill in October that would cap annual rent increases imposed …

November 4, 2019

Acquisitions Multifamily Seniors Housing Top Stories

New Senior Agrees to Sell Entire Assisted Living Portfolio for $385M, Focus Solely on Independent Living

by Jeff Shaw November 1, 2019

NEW YORK CITY — New Senior Investment Group Inc. (NYSE: SNR), a New York-based seniors housing REIT, has agreed to sell its entire assisted living and memory care portfolio for $385 million. The portfolio comprises 28 properties across 14 states totaling 2,840 units. The deal will leave the company with 102 independent living properties and one continuing care retirement community.

November 1, 2019

Newer Posts

Older Posts