Top Stories

HCP Acquires Seniors Housing Portfolio in Mid-Atlantic for $186.3M

by John Nelson October 27, 2016

BALTIMORE AND WASHINGTON, D.C. — An affiliate of HCP Inc. (NYSE: HCP), a seniors housing REIT based in Irvine, Calif., has purchased a portfolio of assisted living and memory care properties in the Mid-Atlantic for approximately $186.3 million. Developed between 1993 and 2013, The Morningside House Mid-Atlantic Portfolio consists of seven seniors housing communities located in the greater Baltimore and Washington, D.C. areas. The seller, a joint venture between Morningside House Senior Living and Harrison Street Real Estate Capital, sold the portfolio for roughly $354,000 per unit. HCP has selected Chicago-based Senior Lifestyle Corp. to operate the assets. The portfolio included: — Morningside House of Ellicott City in Ellicott City, Md. — Morningside House of Friendship in Hanover, Md. — Morningside House of Laurel in Laurel, Md. — Morningside House of Satyr Hill in Parkville, Md. — Morningside House of Leesburg in Leesburg, Va. — Morningside House of Saint Charles in Waldorf, Md. and — Poet’s Walk Memory Care in Fredericksburg, Va. Lisa Widmier and Matthew Whitlock led CBRE Capital Markets’ National Senior Housing team in representing the joint venture in the sale. “This transaction had multiple moving parts, including a new operator — Senior Lifestyle — partnering with a …

October 27, 2016

Features Retail Top Stories

Shopping Center Rents Decline for First Time in Five Years, Says Cushman & Wakefield

by John Nelson October 27, 2016

The retail marketplace continues to undergo a period of retrenchment and reinvention, the likes of which we have not seen since the rise of the suburbs starting in the late 1950s. The new period of disruption has been fueled by the rise of e-commerce, in particular Amazon, with the emergence of smartphones and tablets acting as a major accelerator since 2010. Combined with a consumer base that downshifted into frugality mode during the Great Recession, the current marketplace is one of the most challenging retail landscapes of the past 50 years. In spite of these challenges, overall shopping center vacancy has actually continued to trend downward. Despite a significant increase in retail closures (through the third quarter Cushman & Wakefield has tracked over 4,000 major chain closures for 2016, surpassing 2010’s record of 3,600), as well as multiple notable bankruptcies, the disruption has not equally impacted all retail sectors. Digital media has effectively wiped out the video and record store sectors while creating major challenges for the remaining major bookstore chains. The consumer electronics and office supplies categories continue to face major headwinds from e-commerce, as do a number of other retail categories ranging from gifts to home furnishings. The …

October 27, 2016

Georgia Office Southeast Top Stories

Banyan Street Capital, Oaktree Acquire 191 Peachtree in Atlanta for $268M

by Haisten Willis October 26, 2016

ATLANTA — A partnership between Banyan Street Capital and funds managed by Oaktree Capital Management has purchased 191 Peachtree Tower from Cousins Properties in downtown Atlanta. The partnership bought the 50-story office tower for $268 million. The 1.2 million-square-foot office tower was 93 percent leased at the time of sale to tenants such as the Robert W. Woodruff Foundation, Deloitte, Cooper Carry, Hall Booth Smith and The Commerce Club. The Metro Atlanta Chamber is also relocating to the LEED Silver-certified building later this year. “Downtown Atlanta is a premier destination for business and commerce, and 191 Peachtree is the market’s landmark office building,” says Rudy Touzet, CEO of Banyan Street Capital. “This acquisition is an important expansion of our Atlanta portfolio and demonstrates the demand for Class A office located within walkable urban centers.” 191 Peachtree offers direct access to the Ritz-Carlton Hotel, which features retail and restaurant tenants such as Alma Cucina, Bistro 191, The Bean Counter and Jos. A Bank. It is also located directly across from a MARTA transit station. The new ownership has selected Cushman & Wakefield to lease the office tower and plans to initiate select upgrades to 191 Peachtree in the near future. “191 …

October 26, 2016

Florida Loans Multifamily Seniors Housing Southeast Top Stories

Capital One Provides $162.5M Credit Facility for Palm Garden Healthcare

by Katie Sloan October 25, 2016

SARASOTA, FLA. — Capital One Financial Corp. has provided a $162.5 million senior secured credit facility for Palm Garden Healthcare. The Sarasota-based company owns a total of 1,931 beds across 14 skilled nursing facilities and an assisted living facility. The company also operates home care agencies and provides outpatient therapy. Palm Garden locations can be found in cities throughout Florida, including Aventura, Clearwater, Gainesville, Jacksonville, Largo, Ocala, Sun City Center, Orlando, Pinellas, Port St. Lucie, Tampa, Vero Beach, West Palm Beach and Winter Haven. The credit facility consists of a real estate term loan, a capital expenditure line of credit and an asset-based revolver. Palm Garden will use the proceeds to refinance existing debt and provide capital to expand and improve its facilities. Mclean, Va.-based Capital One is a leading provider of financial services to the healthcare industry, with over $11 billion in total outstanding balances. — Katie Sloan

October 25, 2016

Alabama Features Southeast Top Stories

Purchase Price Doesn’t Always Equal Property Tax Value

by John Nelson October 25, 2016

Don’t worry about challenging a property tax value that is less than the taxpayer’s purchase price, right? Wrong! There are numerous factors that distinguish a purchase price from a taxable assessed value, and the failure to closely review an assessment can cost a property owner dearly. The legal standard for determining property tax values can differ from state to state, but it is generally equivalent to fair market value. That is the probable price that the property would bring in a voluntary, arms-length transaction between a willing and knowledgeable buyer and seller, in an open and competitive market, with neither party being under undue duress, as of the valuation date. While it is possible for a purchase price to be the same or similar to market value, there are many instances where the two deviate. Here are some common examples: Related Parties Sales A sale is not an arms-length market transaction if it occurs between related parties and isn’t exposed to the open market. A sale between a company and its subsidiary, for example, may not reflect fair market value. Fee Simple vs. Leased Fee For property tax purposes, fair market value is most often based on the fee simple …

October 25, 2016

Mixed-Use Texas Top Stories

Cordish Begins $250M Phase I of Texas Live! in Arlington

by Jeff Shaw October 24, 2016

ARLINGTON, TEXAS — The Cordish Companies has started construction of the first phase of Texas Live!, a $250 million mixed-use project located between the Texas Rangers’ Globe Life Park and the Dallas Cowboys’ AT&T Stadium in Arlington. The project will include 200,000 square feet of dining and entertainment space; a 5,000-capacity outdoor event pavilion; a full-service 300-room convention hotel; and a 35,000-square-foot meeting/convention facility. Texas Live! will bring more than 3,000 new jobs and three million new visitors to Arlington when it is completed in 2018, according to the developers. The dining and entertainment portion of the project will open in the spring of 2018. The hotel/convention facility will open the following fall. Anchors of the retail portion will include Rangers Republic fan clubhouse; Live! Arena, a multi-level central gathering place; Arlington Backyard, a 5,000-capacity outdoor event pavilion; and a flagship restaurant by Guy Fieri. The first phase of Texas Live! is part of a greater $4 billion vision of the Arlington stadium district, which includes additional phases of Texas Live!, the new Rangers Ballpark and the preservation and repurposing of Globe Life Park. “It is the Rangers’ intent to preserve the beautiful exterior façade of Globe Life Park,” says …

October 24, 2016

Georgia Multifamily Southeast Top Stories

SunTrust Banks to Acquire Pillar Financial’s Multifamily Business

by John Nelson October 21, 2016

ATLANTA — SunTrust Banks Inc. (NYSE: STI) has signed a definitive agreement to acquire all of the assets of the operating subsidiaries of Pillar Financial LLC. The assets include Pillar’s multifamily lending business, which comprises affordable housing, healthcare properties, seniors housing and manufactured housing specialty teams. The assets also include Chicago-based Cohen Financial’s commercial real estate investor services business, advisory services and offering loan administration, as well as its mortgage banking business. Following completion of the acquisition, the Pillar team will join SunTrust’s Commercial Real Estate (CRE) division, which is part of the bank’s Wholesale Banking segment. CRE provides banking and capital markets services to commercial real estate developers, owners and operators through various lending platforms. “SunTrust and Pillar make a fantastic combination since there is very little overlap in our capabilities, yet there is tremendous synergy and compatibility,” says Anand Gajjar, CEO and senior managing director of Pillar Financial. Following the acquisition, Gajjar will report to Kathy Farrell, executive of SunTrust’s CRE division. “Our management team is energized to serve our clients with the significant product offerings of SunTrust,” adds Gajjar. The acquisition will expand SunTrust’s multifamily lending capabilities, given that Pillar Financial holds licenses with all three agencies …

October 21, 2016

Mixed-Use North Carolina Southeast Top Stories

Horizon Development Properties Selects Fallon Co. to Develop $330M Mixed-Use Project in Charlotte

by John Nelson October 20, 2016

CHARLOTTE, N.C. — Horizon Development Properties Inc. (HDP) has selected The Fallon Co. to serve as the master developer for the redevelopment of the 16.2-acre Strawn Cottages site in Charlotte. Once completed, the new $330 million mixed-use development will feature 725 new mixed-income apartments, with 145 of the apartments deemed affordable; 20 units of for-sale townhomes; approximately 57,000 square feet of retail space; approximately 330,000 square feet of office space; a hotel featuring 180 rooms; and a central green space. “HDP is excited about The Fallon Co.’s vision that will create an ‘inclusive housing strategy’ within a dynamic mixed-use community,” says A. Fulton Meachem Jr., chief executive officer of HDP. “The Fallon Co. will ensure that HDP’s goal of providing 20 percent of the new rental apartments affordable to families earning between 65 to 80 percent of the area median income becomes a reality. Our model is an essential smart growth strategy that can be duplicated all over our great city.” Situated immediately adjacent to South End in the Dilworth neighborhood, the site is one of the largest fully entitled, transit-oriented development sites in the region. The redevelopment will be conducted in multiple phases, the first of which will consist …

October 20, 2016

Affordable Housing Features Multifamily Top Stories

Survey: 76 Percent of Millennials Struggle to Find Affordable Housing

by Haisten Willis October 20, 2016

WASHINGTON, D.C. — A survey of 1,000 Americans aged 18-34 — commonly known as Millennials — has found that a majority of them have had to delay or rethink traditional ideas of home ownership, according to The NHP Foundation, which conducted the survey. The NHP Foundation is a nonprofit provider of affordable housing. The survey found that 76 percent of Millennials have made compromises in order to find affordable housing, which NHP defines as housing that costs no more than 30 percent of the respondent’s income. Of those who admit compromises, 46 percent live with parents or family, 43 percent have put off saving for the future, 41 percent live with a roommate and 36 percent had to move further away from school or work to find something affordable. “Millennials, America’s largest generation, are already saddled with record-breaking student loan debt and no longer think homeownership is in their future,” says Richard Burns, CEO of The NHP Foundation. “This group mirrors much of society, which is also frustrated by the lack of affordable housing and is seeking rental options.” Cost Burden Those who spend more than 30 percent of their income on rent or a mortgage are considered cost-burdened. The survey found …

October 20, 2016

California Industrial Top Stories Western

Carter Validus Mission Critical REIT II Acquires AT&T Data Center Near Los Angeles for $79.5M

by Haisten Willis October 19, 2016

HAWTHORNE, CALIF. — Carter Validus Mission Critical REIT II Inc. (CVMC REIT II) has acquired the 288,000-square-foot AT&T Hawthorne Data Center in the Los Angeles suburb of Hawthorne for $79.5 million. CVMC REIT II, a non-traded REIT headquartered in Tampa, Fla., will assume the existing net lease with AT&T Corp. as part of the transaction. The previous owner was Israel-based Red Sea Group. The one-story, powered shell data center is located on a 15.9-acre site and includes an on-site substation delivering a 12,470-volt, 22.5 MVA (mega-volt amp) commercial power service feed. An eight-foot iron fence surrounds the site, with guarded gates on the east and west ends of the property. Security features include 24-hour on-site security staff, closed-circuit monitors, secure keycard access, biometrics scanner and alarmed doors. AT&T Corp., a wholly owned subsidiary of AT&T Inc., is a provider of IP-based services to multinational companies and serves more than 3.5 million business customers. “The acquisition of the AT&T Hawthorne Data Center represents an opportunity to invest in a mission-critical property with a strong brand affiliation,” says Michael Seton, president of CVMC REIT II. “We strive to be a true capital partner for our tenants and are excited to expand our already …

October 19, 2016

Newer Posts

Older Posts