KANSAS CITY, MO. — Trammell Crow Company and Clarion Partners, the companies forming the joint venture responsible for development of the 800-acre, master-planned KCI Intermodal BusinessCentre, have broken ground on the first building at the property, a 349,440-square-foot distribution center built to suit for Blount International. Blount is relocating its national distribution center for its North American Operations at the property, which is located within LogisticsCentre I, a LEED-Certified, Class A facility situated on 22.54 acres at Kansas City International Airport. Completion is scheduled for January 2012. Blount International’s growth projections suggest the company will soon outgrow its current distribution center located in Executive Park east of downtown Kansas City, and this new efficient facility will help it better serve its worldwide customer base. The transition is projected to generate 89 new jobs for Kansas City, in addition to retaining the 230 jobs Blount currently contributes to the local economy. Blount is a global manufacturer and marketer of replacement parts, equipment and accessories for the forestry, lawn and garden; farm, ranch, and agriculture; and construction markets, and is the market leader in manufacturing saw chain and guide bars for chain saws. Blount sells its products in more than 100 countries …
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COSTA MESA, CALIF. — Costa Mesa-based shopping center developer Donahue Schriber has successfully completed the final piece of a $1.2 billion balance sheet recapitalization, which occurred through several transactions. The final deal was a $365 million refinance with a bank syndicate led by Bank of America and also included Wells Fargo Bank, U.S. Bank, PNC Bank, Union Bank and City National Bank. “The recapitalization was the culmination of digging out from the ‘Great Recession,’” says Patrick S. Donahue, president & CEO of Donahue Schriber. “Like many others in the industry we were affected greatly but were able to weather the storm. So after we came through, we made a list of what we needed. We looked at our debt, where our maturities were too short and our covenants too restricted, and we also needed to convert stock and develop growth capital.” The refinance covers a portfolio of 31 of Donahue Schriber Realty Group’s assets. The new financing has a term of five years with a built-in option for a two-year extension, a lower interest rate and eliminates many of those restrictive covenants Donahue refers to. Countryside Marketplace is a 724,000 square-foot Donahue Schriber shopping center in Menifee, CA anchored by …
ATLANTA — Cousins Properties and Gables Residential held an official groundbreaking ceremony to formally recognize the construction start on the three-phased, $250 million Emory Point mixed-used development in Atlanta. This is the first partnership between Cousins and Gables, two Atlanta-based development companies. “We’re very excited about Emory Point and are glad to see a development of this magnitude move forward,” said Larry Gellerstedt, Cousins President and CEO. “This project represents an incredible infill opportunity in a supply constrained submarket with high demand.” Located in the Clifton Corridor, adjacent to the Centers for Disease Control and Prevention (CDC) and in close proximity to Emory University and Emory Healthcare, Emory Point is a vertically integrated mixed-use development. Phase I will include more than 80,000 square feet of retail space and 443 luxury apartments, and is expected to be complete by Fall 2012. The second and third phases of the project will be developed according to market demand in the area. The project has been in the works for more than 4 years, Gellerstedt says, demonstrating the commitment from both Cousins and its partners. “Emory Point will be a dynamic anchor to the northern part of our campus,” said Mike Mandl, Executive Vice …
NEW YORK CITY — American Realty Capital Healthcare Trust (ARC Healthcare) has entered into a contract to acquire 12 healthcare facilities for $257.5 million. The deal includes three rehabilitation hospitals, two ambulatory surgery center/medical offices, two hospital/medical office buildings, three post-acute care rehabilitation facilities, one long-term acute care hospital, and one medical office building. These 12 assets total 765,038 square feet. “Our latest acquisition is very reflective of the strategy for this REIT, being well diversified within the healthcare field, both from an asset and geographic standpoint,” says Todd Jensen, chief investment officer for ARC Healthcare. “Our investment strategy is focused on newer, high-quality assets, and the average age of these 12 properties is less than two years.” The portfolio is approximately 93 percent leased to 49 tenants. Only about 16 percent of the tenants, based upon occupied square feet, have lease expirations prior to December 31, 2016, and nearly 45 percent of the tenants have lease terms expiring more than ten years from the projected closings. These properties boast predominantly long-term, triple-net leases with contractual annual rent increases across six different types of healthcare assets. National and regional healthcare tenants dominate the rent roll, with more than a third …
ANN ARBOR, MICH. — Borders Group Inc. announced late Monday, July 18, that it would liquidate after failing to receive any offers to keep the business going. The company, which employs nearly 11,000 people, is foregoing today’s scheduled bankruptcy-court auction. Borders said liquidation of its remaining 399 stores could start as soon as Friday, and it is expected to go out of business for good by the end of September, reports the Wall Street Journal. The Journal also reported last week that Borders had a deal with an investor, Jahm Najafi, which unraveled Wednesday after publishers and landlords owed money from the company complained that his bid would allow him to liquidate the bookstore chain after buying the business. Background on Borders’ Bankruptcy Borders originally filed for Chapter 11 bankruptcy on February 16. At the time, the company planned to continue serving its customers in the normal course, to make employee payroll and continue its benefits programs for its employees, and to reorganize and implement a new business model for Borders to address the changing needs of the American reader. “It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers …
CHICAGO — Hyatt Hotels Corporation (NYSE: H), through one of its wholly owned subsidiaries, has signed an agreement to purchase a portfolio from LodgeWorks, L.P. and its private equity partners. The $802 million, all-cash deal includes 24 hotels and related assets under the Hotel Sierra, AVIA, Hyatt Place and Hyatt Summerfield Suites brands (*see breakdown below), and the agreement encompasses management, franchise and intellectual property rights. The hotels being purchased are key assets in strategic, high barrier to entry markets, and the acquisition will enable the company to introduce Hyatt-branded hotels in nine markets where it currently is not represented at all, and to establish its extended stay presence in 16 new markets. “This is a significant expansion of our presence in the United States and enhances our extended stay representation with a great collection of high quality hotels,” said Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation. “We know we must increase the number of markets we serve. This transaction is a noteworthy step in that direction, and will give us an immediate boost in brand awareness among both guests and potential third party developers.” Following the transaction, 16 Hotel Sierra hotels will be branded …
PHOENIX — Phoenix-based Alliance Residential Company has development plans to commence construction on approximately 5,000 residential units in the second half of 2011. Since 2001, the company has invested $2.7 billion in the development of more than 20,000 units and $1.4 billion in the acquisition of more than 13,000 units, and currently has eight properties underway (*see below). Alliance manages all its developed properties and brands each underneath the Broadstone community name, in addition to providing third-party management services for a variety of assets nationwide. REBusinessOnline (REBO) had a chance to catch up with Jay Hiemenz, Alliance Residential’s CFO, to find out a little more of what the company is seeing in today’s multifamily market and where Alliance is taking advantage of opportunities. REBO: For what reasons is multifamily development attractive right now in a generally slow construction market? Hiemenz: Development is attractive right now given that land costs are still below peak and construction costs, although increasing, are still far below peak as well. Those facts, coupled with good demand, result in our ability to deliver development at attractive returns relative to acquisitions in many of the markets we are in. REBO: What is the impetus to develop in …
DENVER — UDR (NYSE:UDR), a Denver-based multifamily REIT, recently acquired three primary-market multifamily properties totaling 1,101 units for $687 million, and simultaneously announced its $375 million planned investment in the development of four additional multifamily communities with an aggregate of 1,306 units. The acquisitions include Rivergate and 21 Chelsea in New York City, as well as View 14 in Washington D.C. Rivergate, a 35-story, 706-unit property located in Murray Hill, sold for $443 million, and UDR plans $40 to $60 million worth of investment into the property over the next three years to achieve rents 35 percent higher than the current monthly income per occupied home of $3,262. The second purchased property, 21 Chelsea, is a 14-story, 210-unit building located on 21st Street between Sixth and Seventh avenues. Purchased for $138 million, UDR will invest $6 to $8 million in redevelopment to improve the current $3,226 monthly income per household by 20 percent. Finally, View 14 in Washington (pictured on home page) is a nine-story, 185-home community situated in the U Street Corridor section of Northwest Washington. UDR acquired the property for $106 million. “The acquisition of these three communities continues our portfolio transformation and strategy of owning apartment homes …
ENCINO, CALIF. — 2011 is already half gone, nearly two years since the recession officially ended. While it is true that the economy has been in recovery since late 2009, the after effects of the commercial real estate collapse are still very much a part of daily business in the industry. Rising energy prices and continued unemployment continue to keep consumer confidence at bay, and a double-dip in the single-family housing market likely won’t see sustainable recovery for at least 12 to 24 months. With all of that said, the situation for retail real estate is nowhere near dire, and Marcus & Millichap hosted a webcast Tuesday afternoon to outline its analysis of the retail market in particular, pointing to what is the firm refers to as a “soft patch” in the recovery, rather than a double dip. How the Macro Economy is Affecting National Retail Marcus & Millichap Managing Director Hessam Nadji outlined the economic factors surrounding the current state of the commercial market. While GDP was healthy in the third and fourth quarters of 2010, it appeared to stall in early 2011. Part of the reason for this, he said, is the transition off government programs that were …
ATLANTA — Jamestown Properties and the City of Atlanta held a press conference to mark the official closing on City Hall East, a 2 million-square-foot property located in the Midtown neighborhood of Atlanta at 675 Ponce de Leon Ave., N.E. The City sold the development for $27 million, which included $15.5 million provided by Jamestown at closing. The property is situated at the nexus of four of the city’s most established neighborhoods and adjacent to the Atlanta BeltLine network already underway, a 22-mile rail and walking corridor that will connect more than 45 neighborhoods of Atlanta. As of today, the project is officially dubbed “Ponce City Market,” and the first phase of the adaptive re-use is set to deliver in first quarter 2014. Ponce City Market is a partnership between Jamestown and its sustainable development subsidiary, Green Street Properties. The partnership has plans for a $180 million, 1 million-square-foot redevelopment of the property with build-out expected to total approximately 300,000 square feet of retail space, 350,000 to 500,000 square feet of loft office space, and residential units as the market dictates. The structure’s current parking deck will be removed, exposing the original retail façade, and some of the building’s interior …