Top Stories

American Realty Advisors Acquires Chicago’s 1K Fulton Property for $257M

by Christina Cannon July 5, 2016

CHICAGO — American Realty Advisors has acquired 1K Fulton, a Class A office property in Chicago, for $257 million. The complex consists of a 10-story building, formerly a cold storage facility that was built in 1923, and a six-story building that was added in 2015. Sterling Bay was the seller of the 550,000-square-foot property, which is currently 97 percent leased. Hartshorne Plunkard Architects designed the complex. Google’s Midwest headquarters currently occupies roughly two-thirds of the office space. “We were attracted to this asset because it has long-term leases with quality tenants, such as Google,” says Martha Shelley, senior portfolio manager for American Realty Advisors. “We anticipate that this property will remain a key driver of the continued growth of the River West Fulton Marketplace over time given the abundance of street level amenities, immediate proximity of public transportation, new hotels and housing adjacent to this asset.” Floor plates at 1K Fulton range from 38,500 square feet to 71,000 square feet. Amenities at the property include indoor parking, a rooftop deck, shuttle service, Pressbox dry cleaning, ZipCar, bicycle detailing and repair station, a fitness center and ground-floor retail and restaurants. “This acquisition fulfills all of our criteria: superior location, great tenants, …

July 5, 2016

Features Multifamily Top Stories

Wanted: Tech-Savvy Apartment Managers to Boost Revenue

by Jeff Shaw July 5, 2016

Today’s apartment property managers wear a lot of hats. In addition to being responsible for leasing up residential buildings or knowing how to calculate a property’s return on investment, they must also maintain healthy relationships with their workers, owners and residents. Figuring out how to leverage technology is key to achieving this delicate balancing act. According to a 2015 survey by the National Multifamily Housing Council (NMHC), 37 percent of households within the United States rent versus own. That’s up from 32 percent in 2010. Approximately 26 percent of those who rent are under the age of 30. This shift from owning to renting by younger residents has changed the way the industry reacts to them. “It’s one of the interesting dynamics of the 21st century and has changed the way we and other management firms do business,” says Mark Zettl, chief operating officer of Chicago-based Waterton, an owner and operator of multifamily and hospitality assets across the United States. “While customer service and satisfaction have always been priorities, today’s managers are constantly being held to a higher standard — one that measures response times in minutes and hours rather than days,” says Zettl. “We’ve embraced the change because the …

July 5, 2016

Office Texas Top Stories

Hines REIT Sells Seven West Coast Office Properties to Blackstone for $1.1B as Part of Liquidation Plan

by Christina Cannon July 1, 2016

HOUSTON — Hines REIT Inc., one of three public non-listed REITs sponsored by investment firm Hines, has approved a liquidation plan in which Hines REIT will sell seven West Coast office assets to an affiliate of Blackstone Real Estate Partners VIII — a transaction valued at $1.1 billion. The portfolio totals approximately 3 million square feet, and includes Howard Hughes Center Los Angeles; Daytona Buildings in Redmond, Wash.; Laguna Buildings in Redmond, Wash.; 5th and Bell in Seattle; 2100 Powell in Emeryville, Calif.; 2851 Junction Ave. in San Jose, Calif.; and 1900 and 2000 Alameda in San Mateo, Calif. Hines REIT is currently in the process of liquidating the remaining assets that comprise its portfolio that includes the Chase Tower in Dallas and 321 North Clark in Chicago, along with a grocery-anchored retail portfolio located primarily in the Southeast. “When we first launched Hines REIT in 2003, it was structured as a perpetual life vehicle, much like many institutional funds,” says Sherri Schugart, president and CEO of Hines REIT. “Impacts from the Great Recession caused us to close the fund to new investors in 2009, so we began considering other options that could provide the best opportunities for enhancing stockholder …

July 1, 2016

Connecticut Multifamily Northeast Texas Top Stories

Cornerstone Real Estate Advisers to Acquire ACRE Capital Holdings for $93M

by John Nelson June 30, 2016

HARTFORD, CONN. AND PLANO, TEXAS — Cornerstone Real Estate Advisers has agreed to acquire ACRE Capital Holdings LLC, the agency lending subsidiary of Ares Commercial Real Estate Corp. (NYSE: ACRE). The $93 million transaction could close as early as the third quarter of this year. The acquisition of ACRE Capital expands Cornerstone’s commercial loan origination platform, nearly doubling the size of the company’s multifamily loan portfolio from approximately $5 billion to $10 billion. Cornerstone traditionally originates larger balance loans, while ACRE Capital typically focuses on smaller balance loans on behalf of Fannie Mae, Freddie Mac and HUD. In addition to being complementary firms, the acquisition will allow Cornerstone to address the need for affordable housing financing in the marketplace, according to Scott Brown, global president and CEO of Cornerstone. “The affordable housing segment of the marketplace is underserved, and acquiring ACRE Capital will allow us to meaningfully address the current and looming scarcity in affordable residential housing and increase lending to communities nationwide,” says Brown. “We look forward to joining forces with the professionals at ACRE Capital to expand opportunities for their borrowers.” ACRE Capital originates and services multifamily mortgages and seniors housing and healthcare facility loans. The company is …

June 30, 2016

Conference Coverage Features Top Stories

Seniors Housing Operators Share Their Secrets to Smart Growth at InterFace Conference in Chicago

by Katie Sloan June 30, 2016

CHICAGO — The U.S. economy may be stuck in low gear, but tactical and targeted growth strategies can produce outsized returns in the seniors housing space, according to a panel of property owners and operators who spoke during France Media’s InterFace Seniors Housing Midwest conference. The event, which took place June 21 at The Westin Chicago River North hotel, attracted 265 attendees from the seniors housing industry. Close attention to rental rates and occupancies boosts top-line revenue growth, said panelist Joe Solari, vice president of corporate development at Capital Senior Living. The Dallas-based company owns and operates 126 independent and assisted living properties. “We focus on buildings that are less than 90 percent occupied,” said Solari. Other successful growth strategies at Capital Senior Living include converting independent living units to those designed for a higher level of care, and the acquisition of stabilized communities in locales where the company already operates. “We can absorb these properties without almost any increase in corporate overhead,” said Solari. Moderated by Adam Heavenrich, managing director of Chicago-based Heavenrich & Co., the panel shared other effective corporate growth strategies. Participants included Bob Karn, executive vice president and CFO, Allegro Senior Living; Isaac Scott, principal, Anthem …

June 30, 2016

California Multifamily Top Stories Western

City of Anaheim Approves $364M, 1,079-Unit Luxury Apartment Building Near Angel Stadium

by Jeff Shaw June 29, 2016

ANAHEIM, CALIF. — The mayor and city council of Anaheim have unanimously approved construction of Jefferson Stadium Park, a 17.9-acre development adjacent to Angel Stadium of Anaheim, home of Major League Baseball’s Los Angeles Angels. Multifamily developer JPI is building the $364 million project, which centers around a 1,079-unit luxury apartment community. The development also includes a 1.1-acre public park and 14,600 square feet of retail space. The company plans to break ground in December. Residents of Jefferson Stadium Park will have access to Anaheim’s Regional Transportation Intermodal Center (ARTIC). The development is one mile from the Downtown Disney Shopping District, Disneyland and California Adventure theme parks. Also nearby is the public marketplace of the Anaheim Packing District. This is the second project for JPI in Anaheim’s Platinum Triangle neighborhood. Currently under construction is the $120 million Jefferson Platinum Triangle, a 400-unit luxury apartment community scheduled for occupancy in the fall of 2017. “Anaheim’s Platinum Triangle is a model for development efforts that encourage new projects, enhancing quality living experiences for the community,” says Heidi Mather, senior vice president and development partner for JPI. “This new project only strengthens our commitment to be a part of the revitalization of this …

June 29, 2016

Hospitality Maryland Restaurant Retail Southeast Top Stories

Cordish Companies Unveils Plans for $200M Expansion at Maryland Live! Casino

by Katie Sloan June 28, 2016

HANOVER, MD. — The Cordish Companies has unveiled plans for a $200 million expansion at Maryland Live! Casino in Hanover. The expansion will include a 17-story, flagship Live! Hotel tower; an event center; meeting spaces; new dining options; a Live! Retail store; approximately 1,000 additional parking spaces; and a day spa and fitness center. The hotel will offer 310 luxury guest rooms, 52 of which will be suites. The Grand Event Center will feature a 1,500-seat concert venue with a built-in performance stage. The development’s event center will also offer flexible pre-function and meeting space, an executive boardroom and banquet seating capable of hosting up to 800 guests. New dining options will include a 24-hour café, a gelato bar and a signature lobby bar with more than 50 seats. Contractors, project architects and designers tapped by The Cordish Cos. for the project include Klai Juba Wald Architects, McLaren Engineering Group, Laurence Lee Associates, Cleo Design Corp., Selbert Perkins, Corsi & Associates, Lynne Curry Spa Consulting, Giovanetti Schulman Assoc. and EDSA. Tutor Perini Corp. will be the project’s general contractor. The project is expected to create approximately 400 new jobs and 550 construction jobs for the region, according to the developers. …

June 28, 2016

Features Top Stories

Food Halls Make Their Way onto the California Foodie Scene

by Katie Sloan June 28, 2016

There were food courts, then there were food trucks. Now, the latest trend to fill the needs of today’s fast-paced culinary crowd is the food hall. Though the Todd English Food Hall at The Plaza hotel in Manhattan is generally credited with starting this latest development trend, the idea of creating a large space with multiple vendors offering fresh, locally sourced fare, is nothing new to California. Pair that with a little natural sunlight and communal seating, and you have the recipe for success in the sun-worshiping state. “California has long suffered a dearth of quality fast-casual dining,” says Anthony Deen, creative director of branded environments for CBX, a New York-based creative marketing service that specializes in food halls, among other things. “Pretty much every neighborhood in California has one great cheap place to eat, but to get variety, customers have to follow food trucks around. Food halls will solve these problems.” Though the food hall scene has not yet penetrated every region of California, its presence is definitely felt up and down the coast. It started with classics like the Ferry Building Marketplace in San Francisco, Grand Central Market in Downtown Los Angeles and the Original Farmer’s Market, which …

June 28, 2016

Office Southeast Top Stories Virginia

The Meridian Group Acquires International Place Office Building Near D.C. for $106.5M

by Nellie Day June 27, 2016

ROSSLYN, VA. — The Meridian Group has acquired International Place, a 293,539-square-foot office building in Rosslyn, for $106.5 million. Beacon Capital Partners sold the building, which is located at 1735 N. Lynn St. in an area of Northern Virginia that sits directly across the Potomac River from Georgetown. International Place is across from the Rosslyn Metro station, which contains Blue, Orange and Silver lines and is only one stop away from Washington, D.C. The Pentagon, Reagan National Airport, Tysons and Dulles International Airport are also in close proximity. The LEED-Gold certified building’s amenities include a new ground-floor, 4,376-square-foot fitness center, conference facility and management office. International Place also has “the largest potential for balconies and outdoor space in the Rosslyn-Ballston Corridor,” according to the buyer. The building overlooks the Jefferson Memorial, Memorial Bridge and Potomac River. It also features a centralized location near JBG Cos.’ newly constructed Central Place Development. This project features a 17,000-square-foot public plaza, a 377-unit residential tower and 45,000 square feet of ground-level retail. Bill Collins, Paul Collins, Drew Flood and Shaun Weinberg of Cushman & Wakefield represented the seller in this transaction. — Nellie Day

June 27, 2016

Georgia Hospitality Mixed-Use Southeast Top Stories

Great Wolf Resorts to Open $150M Lodge, Indoor Water Park in LaGrange, Georgia

by Christina Cannon June 24, 2016

LAGRANGE, GA. — Great Wolf Resorts Inc. has unveiled plans to open a new $150 million destination resort in La Grange, approximately 70 miles southwest of Atlanta, by 2018. The company has entered into a partnership with the state of Georgia and the City of LaGrange, but no other details of the partnership have been released. Great Wolf Lodge Georgia will offer 500,000 square feet of entertainment space. The centerpiece of the resort will be a 93,000-square-foot indoor water park that will include a multi-level treehouse, tipping water bucket, high-thrill water slides, a lazy river, wave pool, several zero depth entry pools and kids water play areas. The lodge will also include 456 rooms that will each accommodate at least five people. Rooms will include refrigerators, microwaves and coffee makers. Great Wolf Lodge will also offer kid-focused suites such as the Wolf Den and KidCabin, which will feature various themes and bunk beds. Other entertainment options will include a ropes course, climbing attraction, miniature golf, bowling alley, spas, dining options and numerous shows and programs. The lodge will also feature over 16,000 square feet of meeting and conference space with audio-visual technology and catering options. “Creating more than 600 jobs and …

June 24, 2016

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