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

Illinois Midwest Office Top Stories

Beacon Capital Partners Acquires AMA Plaza in Chicago for $467.5 Million

by Katie Sloan October 18, 2016

CHICAGO — Beacon Capital Partners has acquired AMA Plaza, a 1.2 million-square-foot office building and an adjacent 902-stall parking garage, for $467.5 million. The Class A asset is located in the River North neighborhood of Chicago. The office component of the property is located above a 316-room Langham Hotel, which was not included in the sale. The hotel is housed on levels two through 13 of the building. The LEED Gold-certified property is situated on the banks of the Chicago River, and is a designated Chicago landmark listed on the National Register of Historic Places. It is also the last and largest American building designed by German-American architect Ludwig Mies van der Rohe. The building was 96-percent leased at the time of sale to tenants including the American Medical Association, the law firm of Latham & Watkins LLP, SmithBucklin Corp., BDO USA LLP and Swanson, Martin & Bell LLP. Originally opened in 1973, the property recently underwent $73.8 million in renovations including the addition of all new mechanical systems, elevators, HVAC, restrooms and a green Roof. Jaime Fink, Jeff Bramson, Mark Katz, Michael Kavanau, John Pelusi, Gerard Sansosti and Patrick Shields of HFF represented the seller, an affiliate of Five …

October 18, 2016

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Features Top Stories

Zandi: Brexit Timing Will Determine Effect on U.S., European Real Estate

by Haisten Willis October 18, 2016

WASHINGTON, D.C. — Mark Zandi, chief economist at Moody’s Analytics, believes that despite bank and analyst predictions of a world recession if the United Kingdom voted to leave the European Union, the global economy is actually “OK for now.” He adds that the timing of the Brexit completion would likely determine stability of economies throughout Europe as well as the United States over the next three to five years. Zandi’s comments came at The Counselors of Real Estate annual convention, held Sept. 25-28 in Washington, D.C. Zandi led discussion about Brexit, when British voters decided on June 23 to leave the E.U., and its economic impact with a panel of real estate advisors representing France, Germany, Turkey, the U.S. and the U.K. He said the overall economy is “amazingly resilient,” because very little negative effect has been felt so far in Europe or the U.S. as a result of the vote. He noted that the European economy is actually growing and the U.S. is stable. Long-Term Process But, Zandi said, it’s too early to know the full effect Brexit will have until the process officially begins, which could potentially be longer than the timing called for in the Lisbon Treaty …

October 18, 2016

Multifamily Northeast Pennsylvania Top Stories

Milhaus Breaks Ground on $100M Mixed-Use Development Near Pittsburgh

by Nellie Day October 17, 2016

PITTSBURGH — Milhaus Development has broken ground on Phase I of a residential and retail development in Lawrenceville, a suburb northeast of Pittsburgh. The development, called Arsenal 201, will encompass an entire block from 39th to 40th streets. The first phase will contain 243 apartment units and 19,000 square feet of retail. Development costs will total more than $100 million upon completion. Arsenal 201 will be situated on the original site of Allegheny Arsenal, which was the largest arsenal in the Union during the Civil War. The name is in homage to the site’s history, with the numbers being the last three digits in the Lawrenceville zip code. Amenities include Arsenal Alley (a pedestrian walkway), Canteen Resident Lounge, Ammunition Fitness/Wellness Center, a courtyard with hammocks that serves as an outdoor entertainment area called the Fort, and Cannonball Deck and Pool. Arsenal Alley will connect Butler Street to a new one-acre public park and existing riverfront amenities. The first apartments will be available for pre-lease in summer 2017. CBRE’s Jason Cannon, Chad Kosanovic and Carey Miklos are handling the retail leasing. Milhaus Development is an Indianapolis-based developer of multifamily-focused mixed-use properties, specializing in Class A, urban projects. — Nellie Day

October 17, 2016

Healthcare Indiana Loans Midwest Top Stories

Union Hospital in Western Indiana Receives $266.6M Mortgage Refinancing

by Jeff Shaw October 14, 2016

TERRE HAUTE, IND. — AMS Health Care Mortgage Corp., Piper Jaffray & Co. and JLL Capital Markets have closed on the funding of a $266.6 million FHA/GNMA-insured mortgage loan for Union Hospital in Terre Haute. Founded in 1892, Union Health provides care for the 277,657 residents of west central Indiana and eastern Illinois. The regional healthcare system is comprised of the flagship Union Hospital (Terre Haute), a 347-bed acute care hospital; Union Hospital Clinton, a 25-bed critical access hospital; and two rural health clinics (Clay City, Ind., and Marshall, Ill.), employing a total of 2,878 physicians and staff. The loan refinancing, insured under HUD’s Section 242 Mortgage Insurance for Hospitals program, significantly reduces the system’s annual debt service, saving Union Health and its patients approximately $148 million over the life of the loan. AMS is an FHA-approved mortgage lender that specializes in obtaining financing for hospitals. Piper Jaffray, an investment bank specializing in healthcare finance, worked closely with AMS in structuring the transaction, assisting Union Health in defeasing its existing tax-exempt debt and placing the GNMA securities with end investors. JLL, working closely with AMS and Piper Jaffray, is the FHA mortgagee of record and will service the loan over …

October 14, 2016

California Office Top Stories Western

Alexandria Real Estate Equities Buys Torrey Ridge Science Center in San Diego for $182.5M

by John Nelson October 13, 2016

SAN DIEGO — An affiliate of Alexandria Real Estate Equities Inc. (NYSE: ARE), an urban office REIT based in Pasadena, Calif., has purchased Torrey Ridge Science Center in San Diego’s Torrey Pines submarket. Walton Street Capital and SteelWave sold the campus to Alexandria for $182.5 million. Torrey Ridge Science Center is a Class A life science campus leased to companies such as Regulus Therapeutics, Pacira Pharmaceuticals, Nitto BioPharma, Interpreta and BP Technology Ventures. The three-building, 291,799-square-foot campus was 87 percent leased at the time of sale. “This was a highly strategic acquisition for Alexandria in Torrey Pines, one of our core San Diego submarkets,” says Daniel Ryan, executive vice president and regional market director of San Diego for Alexandria Real Estate Equities. Located at 10578, 10614 and 10628 Science Center Drive, Torrey Ridge Science Center was built in 2004 and since 2012 the sellers invested $55 million in base building and tenant improvements. The renovations included upgrading common areas, signage and landscaping, as well as creating a new dedicated central plant and adding chilled water systems for each building. The campus also features newly built tenant amenities including a fitness center, conference center and Wich Addiction café. “The Torrey Ridge …

October 13, 2016

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