Top Stories

Self Storage: The Strong, Stable REIT Investment

by Jeff Shaw November 29, 2016

The self storage REIT industry is sizzling hot. Last year, when stocks were flat and REITs generated a mere 2.8 percent return on average, self storage REITs returned a whopping 40 percent, far surpassing all other REIT sectors. Occupancy rates at the 51,000 self storage facilities in the United States have grown by 11 percent from the first quarter of 2012 to the first quarter of 2016. The need for storage facilities continues to increase as Baby Boomers retire and downsize, while millennials flock to rental apartments without garages and basements. In fact, the growth in the inventory of self storage facilities mirrors recent increases in apartment occupancy. Although net absorption of apartments is slowing, self storage REITs remain a solid investment. That’s because the existing inventory of storage facilities is relatively low due to a slowdown of construction during the recession. This lack of sufficient supply prompted Integra Realty Resources to predict record-level prices and continued demand for this strong investment type into 2017. One of the advantages of self storage is that it involves so little capital outlay when compared to other kinds of commercial real estate, such as malls, offices or apartments. Indeed, it requires less capital …

November 29, 2016

Florida Loans Office Southeast Top Stories

Parmenter Receives $84M Loan for Acquisition of Primera Towers Office Park Near Orlando

by Nellie Day November 28, 2016

LAKE MARY, FLA. — Parmenter Realty Partners has received $84 million in financing to partially fund the company’s acquisition of Primera Towers I–V, a five-building office park in Lake Mary. The 772,000-square-foot park is located at 605, 610 and 615 Crescent Executive Court and 255 and 300 Primera Blvd. just north of Orlando. Holliday Fenoglio Fowler (HFF) arranged the financing. Primera Towers is 89 percent leased to tenants like Blue Cross & Blue Shield, Liberty Mutual, Paylocity, D+H, Dixon Ticonderoga and HNTB. The park features on-site fitness centers and a café with patio seating. The suburban mid-rise buildings were developed between 1997 and 2000 immediately east of Interstate 4. HFF’s Ed Coco and Matt Casey worked on behalf of Parmenter Realty Partners investment fund and an institutional equity partner to secure the funds through JPMorgan Chase Bank NA. Parmenter acquired Primera Towers for $130 million. The seller was a joint venture between Banyan Street Capital, Oaktree Capital Management and Balandis AG. Mike Davis, Michael Lerner and Rick Brugge of Cushman & Wakefield represented the JV in the sales transaction. This sale was the first time in the park’s history that ownership has ever been consolidated. Parmenter plans to expand the …

November 28, 2016

Office Top Stories Washington Western

Tristar Capital, RFR Holding Acquire Amazon Phase VII Office Property in Seattle for $244M

by Nellie Day November 23, 2016

SEATTLE — A joint venture between Tristar Capital and RFR Holding has purchased Amazon Phase VII, a 12-story office building with ground-floor retail in the South Lake Union neighborhood of Seattle, for $244 million. The building is located at 400 Ninth Ave. N. Amazon Phase VII features 313,000 square feet of office space fully leased to Amazon, 5,700 square feet of ground-floor retail space fully leased to Sam’s Tavern and a four-level subterranean garage. The development also includes a public plaza and a landscaped rooftop terrace with sweeping views of the city. “Nebulous,” a public art installation by local artist Dan Corson, is suspended above the public plaza. The building was completed in 2015 and is LEED-Gold certified. NBBJ designed the project, which Turner Construction built. The Washington State Chapter of NAIOP honored the building’s seller, Vulcan Real Estate, with the 2015 Office Development of the Year award for its 1 million-square-foot expansion of Amazon’s South Lake Union headquarters. This expansion included Amazon Phase VI, Phase VII and VIII. Kevin Shannon, Ken White, Michael Moll and David Milestone of Newmark Grubb Knight Frank, along with CBRE’s Tom Pehl, Lou Senini and Owen Rice, negotiated the transaction. “Core, best-in-class office product in …

November 23, 2016

California Oregon Retail Top Stories Uncategorized Washington Western

CBRE Global Investment Partners Acquires Minority Stake in $1.5B West Coast Retail Portfolio

by John Nelson November 22, 2016

LOS ANGELES AND SAN FRANCISCO — CBRE Global Investment Partners has acquired a 45 percent stake in a $1.5 billion portfolio of 55 retail assets located on the West Coast. The investment was made on behalf of the company’s flagship Global Alpha Fund and various separate account clients and totals roughly $450 million, according to reports by The Wall Street Journal. San Francisco-based Merlone Geier Partners (MGP) is the majority owner in the portfolio, which totals nearly 7 million square feet, and will maintain its position as operating partner. The properties are largely anchored by grocery and necessity-based retailers, and are concentrated in Southern California, Seattle, Sacramento, the San Francisco Bay Area and Portland. “This joint venture gives us a rare opportunity to access for our clients a large diversified portfolio of high-quality retail centers that would be challenging to acquire in scale,” says Ian Gleeson, CIO for CBRE Global Investment Partners. “We are pleased to partner with Merlone Geier because it is a leading operator that has significant experience in the retail sector.” Eastdil Secured advised MGP in the transaction. MGP is a private real estate investment company focused on the acquisition, development and redevelopment of retail and mixed-use …

November 22, 2016

Features Retail Top Stories

How Owners Can Drive Revenue for Retail Centers Through Innovative Landscape Design

by Katie Sloan November 22, 2016

The retail experience has and continues to evolve. Online sales are projected to reach $523 billion by 2020, increasing at an annual average rate of 9.32 percent, according to reports by Forrester Research Inc. While brick-and-mortar shopping still remains a dominant channel for American consumers, e-commerce growth continues to increase at a rapid rate, indicating a fundamental shift in the way today’s consumers approach retail. In order to remain competitive in this ever changing landscape, retail owners must adapt their strategies to create retail centers that cater to the evolving demands of today’s shoppers. The majority of consumers that still prefer to make purchases in stores are no longer simply searching for places to shop, but are rather seeking multi-sensory environments and experiences that cannot be replicated through online channels. The question is, how do retail owners create these experiential centers that extend beyond the traditional retail experience? The short answer: innovative landscape design. Landscape design can play an integral, if not essential, role in cultivating these experiences and transforming a center from a cookie-cutter mall to an upscale destination of choice. In fact, the presence of physical beauty has been proven to build and establish an emotional connection with …

November 22, 2016

Hawaii Hospitality Top Stories Western

Ares Management, SMW Hospitality, Trinity Investments Buy Ritz-Carlton Kapalua in Maui

by Jeff Shaw November 21, 2016

LAHAINA, HAWAII — A joint venture between funds managed by Ares Management LP (NYSE: ARES), SMW Hospitality LLC and Trinity Investments LLC has acquired The Ritz-Carlton Kapalua in Lahaina on the Hawaiian island of Maui. The JV acquired the property from a partnership between Woodridge Capital Partners LLC and Colony Capital Inc. The price was not disclosed. The Ritz-Carlton Kapalua is an oceanfront property located on 49 acres of Maui’s northwest shore. The hotel is part of the 23,000-acre master planned Kapalua resort, home to the Kapalua Wine and Food Festival and the PGA Tour’s Tournament of Champions. The resort is renowned for its golf courses, tennis facilities, beaches, restaurants and shops. The Ritz-Carlton Kapalua features 297 guestrooms, as well as 107 condos within a dedicated wing of the hotel. Known as The Residences, the one- and two-bedroom condos were recently renovated. The joint venture plans to renovate the hotel’s common areas and guest rooms following the acquisition. The hotel’s amenities include a 17,500-square-foot spa with 15 treatment rooms, three-tiered swimming pool, fitness center, 4,844-square-foot retail arcade, access to two championship golf courses (The Bay Course and The Plantation Course) and instruction at Kapalua Golf Academy. In addition, guests can …

November 21, 2016

Loans Top Stories

Clarion Partners Receives $200M Loan for Nine-Property Mixed-Use Portfolio

by Kristin Harlow November 18, 2016

NEW YORK CITY — Clarion Partners has received $200 million in acquisition financing for a nine-property portfolio comprising multifamily, industrial and retail properties in six states throughout the U.S. Included in the financing are: Three multifamily properties totaling 761 units in Minneapolis and metro Dallas. Four industrial properties totaling 1.7 million square feet in Hanover, Md., Denver, Pompano Beach, Fla., and Redlands, Calif. Two retail properties totaling 275,859 square feet in Delray Beach and Celebration, Fla. Riaz Cassum, Lauren O’Neil and Robyn King of HFF represented the borrower in the transaction. The firm arranged the loan through one of its correspondent lenders. Clarion Partners is a New York-based real estate investment manager with $43.1 billion in total assets under management. — Kristin Hiller

November 18, 2016

District of Columbia Mixed-Use Southeast Top Stories

National Law Firm, New Hilton Hotel to Anchor $2B Wharf Waterfront Development in D.C.

by John Nelson November 17, 2016

WASHINGTON, D.C. — Hoffman-Madison Waterfront (HMW), the developer of The Wharf, a $2 billion, mile-long neighborhood under construction along Washington, D.C.’s Southwest waterfront, has announced that the development will feature a new Hilton hotel and a new anchor office tenant, global law firm Fish & Richardson. HMW is a partnership between master developers PN Hoffman and Madison Marquette. Situated adjacent to 7th Street Park, Hilton Worldwide will open a 175-room Canopy by Hilton, the first North American hotel for the international brand. The Canopy will join a 238-room Hyatt House at The Wharf. When complete, The Wharf will feature more than 3 million square feet of new residential, office, hotel, retail, marina, and public uses, including waterfront parks, promenades, piers and docks. The development will encompass 24 acres of land and 50 acres of water on the Washington Channel. Phase I is slated to open in October 2017, and Phase II is expected to open between 2020 and 2021. “The Wharf is a truly ideal neighborhood for our Canopy by Hilton brand and we are thrilled to be a part of this amazing project,” says Gary Steffen, global head of Canopy by Hilton. Fish & Richardson, which specializes in global …

November 17, 2016

InterFace Seniors Housing Northeast Conference, Philadelphia

Features Multifamily Seniors Housing Top Stories

Will Trump’s Stance on Immigration Reform Exacerbate Worker Shortage Problem in Seniors Housing?

by Jeff Shaw November 17, 2016

Already facing a labor shortage, the U.S. seniors housing industry could be dealt a “devastating” blow if president-elect Donald Trump were to limit the number of lower-wage immigrants coming into the country in order to accommodate an increased number of high-wage skilled immigrants, says Jeff Sands, managing principal and general counsel for HJ Sims. “It’s a real issue this industry is grappling with,” especially given the growing number of facilities. Sands’ comments came during a “State of the Industry and 2017 Outlook” panel at the InterFace Seniors Housing Northeast conference in Philadelphia on Tuesday, Nov. 15. The U.S. seniors housing market will need to recruit 1.2 million new employees by 2025, Argentum reported in a research report released earlier this year. Because about 70 percent of the 65-plus population — including many people with cognitive impairment — requires some form of long-term care, according to the U.S. Department of Health and Human Services, the nation’s aging population will create unprecedented demand for the services of the senior living industry in the coming decades. According to donaldjtrump.com, the president-elect’s campaign website, his immigration controls will result in the selection of immigrants based on their likelihood of success in the United States …

November 17, 2016

Multifamily Student Housing Texas Top Stories

American Campus Communities Sells 19 Student Housing Properties to Saban, Campus Advantage for $508M

by Nellie Day November 16, 2016

AUSTIN, TEXAS — American Campus Communities Inc. (ACC) has sold 19 student housing assets totaling more than 12,000 beds to a partnership between Saban Real Estate and Campus Advantage for $508 million. The transaction included a $197.3 million prepayment of secured mortgage debt. “With the sale of these non-core assets, which were all previously acquired as part of larger portfolio acquisitions, we have transformed our portfolio into one consisting almost entirely of core assets,” says Bill Bayless, ACC’s CEO. “Our overall proximity to campus improves to a median distance to campus of only one-tenth of a mile, and our portfolio now contains only two remaining assets located more than one mile from campus.” The 12,083-bed portfolio includes:  Abbott Place, a 654-bed community located near Michigan State University in East Lansing.  Burbank Commons, a 532-bed community located near Louisiana State University in Baton Rouge.  The Cottages of Baton Rouge, a 1,290-bed community located near Louisiana State University.  U Club Cottages, a 308-bed community located near Louisiana State University.  University Crescent, a 612-bed community located near Louisiana State University.  Campus Corner, a 796-bed community located near Indiana University in Bloomington.  Campus Way, a 680-bed community …

November 16, 2016

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