Top Stories

July Jobs Report Is Good News for Office Sector in Particular, Say Economists

by Camren Skelton August 10, 2017

Total nonfarm payroll employment rose by 209,000 in July, according to the Bureau of Labor Statistics (BLS), beating expectations and boosting confidence that this expansionary phase of the economy still has legs. A panel of economists assembled by the Wall Street Journal predicted a net gain of 180,000 jobs. Job growth is always a welcome sign for the commercial real estate industry — especially when the numbers exceed expectations — because employment drives demand for all types of space. To dissect the latest job figures and identify some of the underlying trends, REBusinessOnline reached out to three real estate economists for their insights: Steve Hovland, director of research at Irvine, California-based HomeUnion Inc.; Ken McCarthy, principal economist and applied research lead for the U.S. based in Cushman & Wakefield’s New York office; and Ryan Severino, chief economist at JLL who works out of the New York City office. What follows are their edited responses. REBusinessOnline: From a commercial real estate standpoint, what did you find most encouraging about the July job numbers and why? Ryan Severino: We are in the ninth year of economic expansion, and business and professional services continues to represent about one-quarter of the job gains, both …

August 10, 2017

Florida Multifamily Southeast Top Stories

Rockpoint Group Buys 365-Unit Town City Center Apartments Near Miami for $87M

by Nellie Day August 9, 2017

PEMBROKE PINES, FLA. — Rockpoint Group has purchased the 365-unit Town City Center apartment complex in the Miami suburb of Pembroke Pines for $87 million. The Class A community is located at 10700 S.W. City Center Blvd. in Broward County’s master-planned Pembroke Pines City Center development. The seller was The Related Group. Town City Center was built in 2016. It is situated on 11 acres near upscale shopping centers, golf courses, restaurants and nightlife, with Miami and Fort Lauderdale just 20 miles away. Pembroke Pines City Center is also expected to deliver a new retail concept adjacent to the property’s waterfront site. The garden-style community offers studio to three-bedroom apartments, as well as two-bedroom townhouses with attached garage entry. In-unit features include patios and porches, washers and dryers, porcelain tiling, stainless steel appliances, and designer vanities. The pet-friendly complex also boasts a two-level fitness studio, pool deck, cabanas, private waterside dock, private screening room and tennis courts. VStarr Interiors designed Town City Center. Greg Engler, Roberto Pesant and Chris Conklin of Walker & Dunlop’s investment sales team represented both the buyer and seller. “This transaction exemplifies strong investor demand for well-located, stabilized core assets across the South Florida multifamily market,” …

August 9, 2017

Florida Multifamily Southeast Top Stories

The Praedium Group Acquires 300-Unit Multifamily Community in Jacksonville for $57M

by Katie Sloan August 8, 2017

JACKSONVILLE, FLA. — The Praedium Group has acquired The Views at Harbortown, a 300-unit multifamily community located in Jacksonville, for $57 million. The property was built in 2015, offering a mix of one-, two- and three-bedroom units with kitchen islands, walk-in closets, granite countertops and in-unit washers and dryers. Community amenities include a clubhouse with lounge areas and a billiard room; sundeck with wi-fi; two resort-style swimming pools with cabanas; a cyber lounge and business center; fitness center; WellBeats virtual training system; bike rack; and picnic areas with grills. The community also offers three boat slips for residents, and access to the privately owned Harbortown Marina and the Intracoastal Waterway. The seller in the transaction was undisclosed. The Praedium Group notes that Jacksonville achieved 3.7 percent year-over-year growth in nonfarm jobs — per the Bureau of Labor Statistic’s report from March of this year — doubling the national average. “Reis expects Jacksonville’s population to grow by 9.6 percent over the next five years, compared to the national average of 5.1 percent,” says Lindsay Schuckman, associate of The Praedium Group. “This growth is driven by Jacksonville’s influx of jobs, affordability and attractive quality of life.” The Praedium Group is a privately …

August 8, 2017

Features Top Stories

Immigration Restrictions Would Impede Real Estate Market, Says Counselors of Real Estate

by Camren Skelton August 8, 2017

Restrictions on legal immigration would have negative repercussions for the real estate market, according to a report from The Counselors of Real Estate (CRE). The findings come from the organization’s list of the top 10 issues affecting real estate in 2017-2018, an annual report that predicts and interprets the issues and trends that will have the highest impact on those who own, live, develop and invest in real estate properties. Established in 1953 and headquartered in Chicago, the Counselors of Real Estate is an international group of high-profile professionals including members of prominent real estate, financial, legal and accounting firms as well as leaders of government and academia who provide expert, objective advice on complex real property situations and land-related matters. Last week, President Donald Trump unveiled legislation intended to reduce immigration to the U.S. If Congress passes the bill, it would reduce the number of legal immigrants to the country from one million per year to half that number over the next 10 years and could negatively impact housing, development and jobs, according to CRE. “Reduced workforce numbers caused by restricted immigration would negatively impact property sectors such as hospitality (hotels and restaurants), retail (stores, online ordering and related …

August 8, 2017

Retail Top Stories Utah Western

Brixton Capital to Invest $80M to Reposition Provo Towne Center

by Taylor Williams August 7, 2017

PROVO, UTAH — California-based real estate investment firm Brixton Capital will invest approximately $80 million in the repositioning of Provo Towne Center, an 800,000-square-foot mall in Provo, located about 45 miles south of Salt Lake City. The project will transform the existing retail space into a mixed-use asset. New areas include a 30,000-square-foot dining district and two 6,000-square-foot restaurant spaces, as well as a 100,000-square-foot office tower and 200 residential units. Other features will include an outdoor park and a 50,000-square-foot space for an anchor tenant. According to Brixton Capital, which acquired the mall in 2016, the repositioning project represents a shift toward more entertainment- and experience-driven retail. “Our plans for Provo Towne Center have been met with excitement, renewed interest and many positive comments from the entire community,” says Travis King, CEO of Brixton Capital. Phase I of construction is already underway and will deliver a 100-room Marriott Residence Inn that will open next summer. Additional phases are scheduled to begin in early 2018. Provo Towne Center is located at 1200 Towne Centre Blvd., along the Interstate 15 corridor, roughly 2.5 miles from Brigham Young University. Approximately 65,000 students live or attend classes within a five-mile radius of the …

August 7, 2017

California Retail Top Stories Western

Federal Realty Investment Trust Acquires Seven Retail Properties in Southern California for $345M

by Kristin Harlow August 4, 2017

SOUTHERN CALIFORNIA — Federal Realty Investment Trust has formed a joint venture with Primestor Development Inc. to acquire seven retail properties in Southern California. The shopping centers total over 1.3 million square feet. Federal Realty’s investment in the venture is approximately $345 million, which includes a $20 million commitment to complete the redevelopment of one of the centers. Primestor will continue to lease and manage the properties with oversight from Federal Realty’s investment committee. The assets are located in trade areas where demand exceeds supply, according to Federal Realty. The properties include Azalea in Southgate; Bell Gardens in Bell Gardens; La Alameda in Walnut Park; Olivo at Mission Hills in Mission Hills; Plaza del Sol in South El Monte; Plaza Pacoima in Pacoima; and Sylmar Town Center in Sylmar. Marshalls, Ross and CVS occupy space at several of the properties. Olivo at Mission Hills is currently under redevelopment and is 87 percent pre-leased. The joint venture has a 25 percent interest in La Alameda. Federal Realty owns, operates and redevelops retail properties primarily in coastal markets. The company’s portfolio includes 96 properties and approximately 22 million square feet. Los Angeles-based Primestor is a developer and owner-operator of retail properties, and …

August 4, 2017

California Loans Retail Top Stories Western

Westwood Financial Receives $171M in Financing for 13-Property Retail Portfolio

by John Nelson August 3, 2017

LOS ANGELES — Westwood Financial, a shopping center investment firm based in Los Angeles, has received $171 million in financing in two separate loan transactions. The company will use the debt to refinance or fund acquisitions for 13 retail properties totaling nearly 1.1 million square feet in Arizona, California, Florida, Georgia, Illinois, North Carolina and Texas. Nationwide Life Insurance Co. provided a $94 million loan for Westwood Financial to refinance or acquire seven multi-tenant retail shopping centers, including: • the 77,043 square-foot Camelback Village anchored by AJ’s Fine Foods in Phoenix; • the 116,707-square-foot Elk Crossing anchored by Jewel-Osco in Elk Grove, Ill., near Chicago; • the 97,229-square-foot Atascocita Center anchored by Kroger in Humble, Texas, near Houston; • the 101,791-square-foot Market at Lake Houston anchored by H-E-B in Atascocita, Texas, near Houston; • the 87,632-square-foot Lynwood Collection anchored by Kroger in Raleigh, N.C.; • the 55,323-square-foot, Trader Joe’s-anchored Arbors at Mallard Creek in Charlotte, N.C.; and • the 47,518-square-foot Village at Preston Hollow shadow-anchored by Central Market in Dallas. Additionally, an undisclosed, major life insurance firm provided a $77 million loan for the refinancing of six properties, including: • the 89,506-square-foot Mercado del Rancho anchored by Sprouts Farmers Market …

August 3, 2017

Features Northeast Northeast Feature Archive Pennsylvania Top Stories

Property Owners Celebrate Fair Taxation Ruling by Pennsylvania Supreme Court

by John Nelson August 3, 2017

Commercial property owners around the country are cheering a recent Pennsylvania Supreme Court decision that breathes new life into constitutional guarantees of uniformity in taxation. Overruling a decade of lower court decisions, the ruling reestablishes the primacy of constitutional uniformity protections to taxpayers in the strongest possible language, fittingly issued just one day after the July 4 holiday. Nearly every state constitution requires uniformity in taxation, meaning that two like properties should receive the same assessment, no matter how they are owned, occupied, built or financed. Yet commercial property owners across the nation have been under attack by assessors attempting to alter appraisal theory in order to pin higher assessments and higher real estate taxes on specific owners. These assessors have been singling out occupied commercial properties by setting assessments based on financing mechanisms that fail to meet standard appraisal definitions of market sales, incorrectly basing taxable value on data relating to sale-leasebacks, turnkey leases and contract rights and duties associated with tenant financing. In Pennsylvania and Ohio, the only states that provide school districts a statutory right to file increase appeals, the school districts have been targeting specific commercial owners for higher assessments using this same flawed methodology. These …

August 3, 2017

Mixed-Use New York Northeast Top Stories

TF Cornerstone to Develop 1.5 MSF Mixed-Use Project in Long Island

by Nellie Day August 2, 2017

NEW YORK CITY — TF Cornerstone is set to develop a 1.5 million-square-foot mixed-use development in Long Island City’s Anable Basin inlet. The $925 million, 4.5-acre project will include residential, commercial, industrial and academic spaces in the New York borough of Queens. The office portion will feature 277,500 square feet of Class A office space and 80,000 square feet of “step-up” office space for start-ups and fast-growing companies in the technology, arts, design and creative industries. Another 22,500 square feet will be dedicated to pre-built incubators for arts, technology and creative industry startups with flexible co-working spaces. The industrial portion will include nearly 100,000 square feet of light industrial space, as well as a 5,000-square-foot “fab lab” for digital fabrication and hardware prototype assembly. About 10,000 square feet will be utilized for an Arts and Technology Accelerator, which will provide education, training, incubation and economic opportunities. This accelerator was designed to forge new collaborations and businesses by merging art, technology and hardware, and to support an ecosystem for technological innovations and entrepreneurship. Another 10,000 square feet will be set aside for classroom space to foster workforce development and training in growing economic sectors, including arts, technology and advanced manufacturing industries. …

August 2, 2017

Arizona Mixed-Use Multifamily Office Retail Top Stories Western

Harbert Management Corp. Acquires Ownership Stake in 628,000 SF Mixed-Use Development in Phoenix

by Katie Sloan August 1, 2017

PHOENIX — Harbert Management Corp. has acquired an ownership stake in High Street, a 628,000-square-foot mixed-use development located in Phoenix. Although the sales price was not disclosed, the buyer received a $93.5 million acquisition loan to fund the transaction. The property occupies 24.9 acres at 5100-5450 E. High St. along Loop 101 in northeast Phoenix, and features 88 multifamily units; 174,705 square feet of retail, dining and entertainment; and 330,369 square feet of office space. Tenants at the 83.7 percent leased center include Sprouts, Kona Grill, La Bocca, Pinspiration, Mellow Mushroom, Blue Martini, Ocean Prime and Modern Margarita. City North Associates LLC, a joint venture between ScanlanKemperBard Cos. and a private investment fund managed by Wayzata Investment Partners LLC, previously owned the property. Harbert Management has replaced Wayzata Investment Partners, now owning the property in partnership with ScanlanKemperBard. Ryan Gallagher, CJ Osbrink, Ryan Fitzpatrick and Clark Cashion of HFF worked on behalf of the original joint venture owner to procure the buyer in the transaction. Jeremy Womack and Tom Wilson of HFF worked on behalf of the new ownership to secure the acquisition loan through TPG RE Finance Trust. ScanlanKemperBard Cos. is a real estate merchant banking firm that acquires, develops …

August 1, 2017

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