Top Stories

Western Wealth Capital Acquires 552-Unit Apartment Community in Phoenix for $90M

by Taylor Williams February 19, 2018

PHOENIX — Western Wealth Capital (WWC) has acquired Carlyle @ South Mountain, a 552-unit multifamily community in Phoenix, for $90 million. Carlyle @ South Mountain consists of 360 apartment units and 192 townhomes that were built in 1996 and 1997, respectively. Western Wealth Capital will invest in capital improvements to the units, most of which have not been upgraded since their initial construction. Physical amenities at the pet-friendly property include a resort-style pool, business lounge, basketball court and outdoor barbecue area. Service-based amenities include trash valet and package receiving. The property is located along the Interstate 10 corridor near the campuses of several national employers, including Intel, Wells Fargo and Bank of America. The property also offers proximity to Arizona Mills Mall, the Arizona Aquarium and Tempe Diablo Stadium, the training ground of the Los Angeles Angels baseball team. The acquisition, which raises the size of Western Wealth Capital’s multifamily portfolio to more than 7,500 units, is the company’s largest individual purchase by units and dollar value to date. Cushman & Wakefield brokered the sale of Carlyle @ South Mountain. The seller was not disclosed. — Taylor Williams

February 19, 2018

Florida Hospitality Southeast Top Stories

Ashford Prime to Acquire Ritz-Carlton Sarasota in Florida for $171M

by Kristin Harlow February 16, 2018

SARASOTA, FLA. — Ashford Hospitality Prime Inc. (NYSE: AHP) has agreed to acquire the 266-room Ritz-Carlton Sarasota, located approximately 60 miles south of Tampa, for $171 million. The transaction equates to $643,000 per room. Ashford Prime is also acquiring a 22-acre plot of vacant land adjacent to the hotel for $9.7 million with plans for residential development adjacent to a golf course. The acquisitions are expected to close in early April. Built in 2001, Ritz-Carlton Sarasota features 31 suites. Amenities include a 26,000-square-foot beach club, private golf club, 15,000-square-foot spa, eight food and beverage outlets, 29,000 square feet of meeting space, two outdoor pools, fitness club, tennis courts and kids club. The property has received over $21 million in capital improvements during recent years. Ritz-Carlton will continue to manage the hotel after the sale. The seller was not disclosed. Ashford Prime expects a stabilized, unleveraged annual yield of approximately 8 percent on its investment. On a 12-month basis as of Dec. 31, 2017, the property achieved revenue per available room (RevPAR) of $284.38, occupancy of 78.1 percent and an average daily rate (ADR) of $364.04. Dallas-based Ashford Prime is a real estate investment trust focused on investing in luxury hotels …

February 16, 2018

Data Centers Texas Top Stories

Equinix to Purchase Infomart Dallas Data Center Complex from ASB for $800M

by John Nelson February 15, 2018

DALLAS — Equinix Inc. (NASDAQ: EQIX), a data center owner and operator based in Redwood City, Calif., has agreed to purchase Infomart Dallas from ASB Real Estate Investments for $800 million. The 1.6 million-square-foot Infomart Dallas is a highly visible data center facility located at 1950 N. Stemmons Freeway near the intersection of Interstate 35 and Dallas North Tollway. Equinix is the facility’s largest tenant, representing approximately 40 percent of lease revenues. The facility houses four of eight Equinix Dallas International Business Exchange (IBX) data centers. Infomart Dallas is home to 45 tenants, including global companies such as Bank of America and Verizon Wireless. The transaction includes developable land adjacent to the facility that will allow the new ownership to potentially increase the facility’s current capacity of 11MW of power to 40MW. The capital consideration will consist of $31 million in cash and $750 million in debt securities that will be paid out to ASB over a three-year period following closing, which is expected to occur in the second quarter. (The notes will be valued at roughly $769 million when adjusted to current trading value of Equinix’s outstanding bonds.) Washington, D.C.-based ASB, a division of ASB Capital Management LLC, originally …

February 15, 2018

Industrial Loans Nevada Top Stories Western

BKM Capital Partners Buys 13-Building Industrial Complex in Las Vegas for $92M

by Nellie Day February 14, 2018

LAS VEGAS — BKM Capital Partners has purchased Hughes Airport Center, a 13-building, multi-tenant industrial complex in Las Vegas, for $92 million. The properties are situated in the industrial pocket between McCarran International Airport and interstates 15 and 215. Hughes Airport Center contains 3.3 million square feet of Class A industrial space and Class B office space. The 420-acre, master-planned business park has access to nearby retail and entertainment amenities like Town Square shopping center, Las Vegas Premium Outlets South, Tahiti Village, Callaway Golf Center, Bali Hai Golf Club and Sunset Park. The business park has recently undergone a slew of improvements, including new paint to building exteriors, asphalt and parking lot repairs, roof repair, and upgraded landscaping, monument signage and tenant signage. Rents at Hughes Airport Center typically range between $0.90 per square foot and $1.30 per square foot. Notable tenants at the center include Geotab, CanvasPop, Medical Transportation Management, Climatec, Credit One Bank, North American Video, LabCorp of America and Harman International. Hughes Airport Center marks BKM’s fifth industrial park acquisition in the Las Vegas Valley. “This is a best-in-class asset, the largest of its scale in the Las Vegas airport submarket and our firm’s biggest transaction to …

February 14, 2018

Conference Coverage Features Retail Top Stories

Activation Is a Top Priority for Entertainment Destinations, say EEE Panelists

by Taylor Williams February 14, 2018

SANTA MONICA, CALIF. — E-commerce has claimed many victims in its siege of brick-and-mortar shopping, but perhaps none more so than big box retailers. As more of these spaces are vacated, demand for entertainment-based users to backfill them grows. Entertainment-themed tenants often require the same open-floor layouts and high ceiling heights that big box spaces offer. In addition, big boxes are typically found in malls and retail power centers, which have presumably been built in high-traffic and high-density locations. As such, entertainment tenants backfilling or building within a traditional retail development aren’t as reliant on “activation” of their sites to drum up business. But when you have a variety of entertainment tenants, including bars and restaurants, operating out of a single destination, it’s crucial to galvanize the property with events and programs. This was a trend discussed at the Entertainment Experience Evolution conference on Feb. 6-7 at Fairmont Miramar hotel in Santa Monica. A panel of professionals in the entertainment retail space discussed the role of activation in creating a “sense of place” at the conference, which more than 600 industry players attended. Moderator Nick Egelanian, president of SiteWorks Retail Real Estate Services, asked the other panelists to describe how …

February 14, 2018

Healthcare Idaho Mixed-Use Multifamily Office Retail Top Stories Western

Millennial Development Partners Announces Plans for Master-Planned Community in Idaho

by Katie Sloan February 13, 2018

POCATELLO, IDAHO — Millennial Development Partners has announced plans for Northgate District, a master planned community located in Pocatello, a city in southeastern Idaho. At completion, the development will feature 10,000 residential units; a 1 million-square-foot office/technology park that will support 6,000 jobs; a medical campus; and a shopping district. The residential portion of the community will include single-family homes, condominiums and apartments. Phase I of the project is set to include a retail center, the beginning stages of an Office IT Park and between 500 and 1,000 residential units. Groundbreaking on a new interchange and Phase I of the development is scheduled for later this year. Millennial has selected Coldwell Banker Commercial Advisors to lead commercial sales and leasing efforts for the development. The company has also partnered with Geomancer, a real estate investment startup that blends market analytics, GIS mapping services and data visualization via a software platform. Salt Lake City-based Millennial Development Partners specializes in multifamily, office, industrial, retail and master planned developments. The company has completed 100 real estate projects. — Katie Sloan

February 13, 2018

Features Loans Top Stories

‘We Have Turned the Corner’ on Interest Rates Globally, Says MBA’s Chief Economist

by John Nelson February 13, 2018

SAN DIEGO — Michael Fratantoni, chief economist at the Mortgage Bankers Association (MBA), fully expects the U.S. national unemployment rate to fall well below 4 percent this year — possibly as low as 3.6 percent — leading to an acceleration in wage growth, inflationary pressures and, ultimately, higher interest rates. Nationally, the unemployment rate stood at 4.1 percent at the end of January. “This is an extraordinarily tight job market,” said the veteran economist, who pointed out that 17 states are approaching record low unemployment rates. His comments came Sunday afternoon during a special economic outlook session at MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2018 at the San Diego Marriott Marquis & Marina. The four-day conference, which concludes tomorrow, has drawn more than 3,300 attendees. Fratantoni appeared on stage with Jamie Woodwell, the association’s vice president of commercial real estate research. Woodwell provided analysis on the state of the property markets and trends in commercial/multifamily mortgage loan originations. Wage pressures mount According to the Bureau of Labor Statistics, average hourly earnings for workers on private nonfarm payrolls were 2.9 percent higher in January 2018 than in January 2017. “We’ll be between 3.5 percent and 4 percent for …

February 13, 2018

Loans New York Northeast Office Top Stories

NKF Arranges $81M Loan for Acquisition, Redevelopment of Warehouse in Queens

by Taylor Williams February 12, 2018

NEW YORK CITY — NKF Capital Markets has arranged an $81 million loan for the acquisition and redevelopment of 25-11 49th Avenue, a 135,000-square-foot warehouse located in the Long Island City area of Queens. The borrower is a partnership between New Jersey-based development and management firm Normandy Real Estate Partners and two New York-based investment firms, Keystone Equities and Drake Street Partners. Dustin Stolly and Jordan Roeschlaub of NKF Capital Markets secured the loan through Deutsche Bank. The redevelopment calls for a full repositioning of the two-story, loft-style warehouse, which will be converted into an 11-story office building totaling 238,000 square feet. Nine stories will be built atop the existing structure, which is located within the area’s factory district. “This property is ideally located near main transportation hubs, which represent part of the growing appeal of this neighborhood,” says Stolly. “This is an excellent opportunity for tenants that will allow them to recruit and retail quality talent.” The financing will also be used to implement a capital improvement plan, which will target the office entrances, lobby and common areas and outdoor roof deck. New elevators and HVAC systems, as well as new security and electronics system, are also included in …

February 12, 2018

District of Columbia Features Loans Southeast Top Stories

‘A Record Year’: Commercial/Multifamily Loan Originations Increased 15 Percent in 2017, Says MBA

by John Nelson February 12, 2018

WASHINGTON, D.C. — Commercial and multifamily mortgage originations for all of 2017 increased 15 percent on a year-over-year basis, bolstered by the strength of the multifamily, industrial and office sectors, according to the Mortgage Bankers Association (MBA). The preliminary estimate was released Sunday during MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2018 in San Diego. The estimate is based on the MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The MBA reported that originations totaled $491 billion in 2016. Breaking down the numbers Originations for hotel properties increased 26 percent in 2017 over the prior year, the MBA reports, followed by industrial (+22 percent), multifamily (+17 percent), office (+12 percent) and healthcare (+9 percent). On the flip side, originations for the retail sector declined 21 percent in 2017 due in part to the dramatic growth of e-commerce. Even so, it was banner year overall for the mortgage banking community. “Based on these preliminary numbers, 2017 was a record year for borrowing and lending backed by commercial real estate properties,” said Jamie Woodwell, vice president of commercial real estate research for MBA, which is headquartered in Washington, D.C. “The increase was driven by multifamily lending, particularly for Fannie Mae …

February 12, 2018

Florida Mixed-Use Multifamily Office Retail Southeast Top Stories

Unicorp Announces $1B Mixed-Use Development in Orlando

by Katie Sloan February 9, 2018

ORLANDO, FLA. — Unicorp National Developments Inc. has unveiled plans for O-Town West, a $1 billion mixed-use development located at the corner of Palm Parkway and Daryl Carter Parkway in Orlando. The development will feature retail, restaurants, upscale apartments, a 600-car garage and a water show in the style of The Fountains of Bellagio in Las Vegas. The retail portion of the 82-acre development will be housed in two segments: the Village at O-Town West and the Boardwalk at O-Town West, according to reports by Orlando Weekly. The Village will feature retailers offering everyday necessities, including a national grocery store. The Boardwalk will offer new-to-market restaurants and retail. A 15,000-unit multifamily community is also planned for the development, alongside 300 to 400 homes, all of which will overlook a recreational lagoon by Miami-based Crystal Lagoons. Groundbreaking is slated for early 2019, with a grand opening projected for summer 2020, Orlando Weekly reports. Unicorp has developed over $2.5 billion worth of commercial and residential real estate, with a focus on retail, mixed-use centers, multifamily and master-planned communities. The company recently developed I-Drive 360 in Orlando, a mixed-use development featuring an observation wheel known as the Coca-Cola Orlando Eye. A $100 million Phase II is currently …

February 9, 2018

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