Western

Industrial Logistics Properties Trust Secures $650M Refinancing for Hawaiian Portfolio

by David Cohen January 30, 2019

OAHU, HAWAII — Industrial Logistics Properties Trust (NASDAQ: ILPT) has secured a $650 million mortgage loan secured by an industrial portfolio in Oahu. The portfolio includes 186 properties, which total approximately 9.6 million square feet. The 10-year loan applies to approximately 57 percent of ILPT’s total owned square footage in Hawaii. As of Dec. 31, 2018, the average remaining lease term for these properties was more than 14 years and the occupancy was nearly 100 percent. “We are pleased to term out our floating rate debt with attractive, long-term, fixed-rate debt and to demonstrate the tremendous value of these unique Hawaiian assets,” says John Murray, CEO of Industrial Logistics Properties Trust. “While the underlying assets had a net book value of less than $500 million at year end 2018, this loan provides us with $650 million of capital to fund value-enhancing external growth opportunities.” Terms of the non-amortizing financing included a fixed interest rate of 4.3 percent. Morgan Stanley, Citi, UBS and J.P. Morgan provided the capital. Sullivan & Worcester LLP provided legal counsel to Industrial Logistics Properties Trust in the transaction. ILPT stock closed at $20.79 per share on Tuesday, Jan. 29, down from $22.47 one year ago. — David …

January 30, 2019

Acquisitions Multifamily Oregon Western

Marcus & Millichap Brokers $19.2M Sale of Seven-Property Apartment Portfolio in Portland

by Amy Works January 29, 2019

PORTLAND, ORE. — Marcus & Millichap has arranged the sale of the Ashley Portfolio, a seven-property multifamily portfolio in Portland. An undisclosed buyer acquired the assets for $19.2 million. Built between 1904 and 1943, the portfolio includes six properties located in Northwest Portland and one in Northeast Portland. The properties range from a 39-unit building sold for $7 million to a five-unit building sold for $1 million. Whitney Rhoades, Elizabeth Davis and Danalee Corso of Marcus & Millichap’s Portland office represented the undisclosed seller.

January 29, 2019

Acquisitions Multifamily Nevada Western

29th Street Capital Buys 188-Unit Multifamily Community in Las Vegas

by Amy Works January 29, 2019

LAS VEGAS — 29th Street Capital (29SC), a privately held real estate operator, has purchased Willows at Town Center Apartments, a multifamily community in Las Vegas. Long Beach, Calif.-based RK Properties sold the property for an undisclosed price. 29SC plans to invest more than $1.8 million in capital improvements at the 188-unit property. Renovations will include stainless steel appliances, quartz countertops, plank flooring and refaced cabinets, and all interior units will also be equipped with Nest thermostats. Exterior improvements will include modern paint, as well as enhancing the pool area, fitness center and clubhouse.

January 29, 2019

Acquisitions Arizona Office Western

Helix Properties Purchases 81,922 SF Office Building in Phoenix for $8.5M

by Amy Works January 29, 2019

PHOENIX — Helix Properties LLC, on behalf of Next Gen 101 LLC, has purchased West 101 Corporate Center, an office property located at 1860 N. 95th Lane in Phoenix. Regent Properties sold the property for $8.5 million. Situated on a 230,432-square-foot lot, the three-story building features 81,922 square feet of Class A office space. Designed by DFD Architects, the property features 452 linear feet of Loop 101 frontage. At the time of acquisition, the property was 53 percent occupied. Chris Toci and Chad Littell of Cushman & Wakefield’s Phoenix office represented the seller in the transaction. The buyer is a single entity controlled by Helix.

January 29, 2019

Acquisitions California Hospitality Western

J Street Hospitality Acquires 174-Room Hotel Karlan San Diego

by Amy Works January 29, 2019

SAN DIEGO — J Street Hospitality, a San Diego-based hotel developer and owner, has purchased Hotel Karlan San Diego – a Doubletree by Hilton, for an undisclosed price. Azul Hospitality Group has been retained to manage the hotel. Located at 14455 Penasquitos Drive in San Diego, the 174-room hotel features a fitness room, swimming pool, tennis court, 24-hour pavilion pantry market and room service. Mark Armstrong of HREC Investment Advisors represented the undisclosed seller in the transaction.

January 29, 2019

Acquisitions New Mexico Restaurant Retail Western

Four Corners Property Trust Buys Outback Steakhouse-Occupied Property in New Mexico for $3.9M

by Amy Works January 29, 2019

NEW MEXICO — Mill Valley, Calif.-based Four Corners Property Trust has purchased a restaurant property located in New Mexico for $3.9 million. The asset was acquired through a sale-leaseback transaction and will operate under a new triple-net lease with Cerca Trova Restaurant Concepts, the largest domestic franchisee in the Bloomin’ Brands system. Outback Steakhouse occupies the property under a lease with 20 years of the initial term and rent increases of 10 percent every five years during the initial term.

January 29, 2019

Hawaii Market Reports Multifamily Western Western Market Reports

As Usual, Demand Outpaces Supply in Hawaii’s Multifamily Market

by Taylor Williams January 29, 2019

Hawaii’s multifamily market continues to achieve record pricing driven by strong local investor demand and notable institutional investors of larger mega deals at $100 million or above. This market is defined by limited inventory and prohibitively expensive new construction that leaves Hawaii with stable annual vacancy rates of about 96 percent. Hawaii has seen only modest increases in annual rental rates of less than 1 percent and relatively low rents for apartments in our market that pencil out to $1.75 per square foot to $2.25 per square foot. Despite these relatively anemic financial returns, enthusiasm remains for this sector. In fact, multifamily continues to reign as the most desired asset class for local investors with monthly transaction counts in the five to seven range and the most aggressive cap rates currently averaging 3.86 percent. The pricing results for multifamily have been stunning with per-unit sales prices ranging from $250,000 to $380,000, depending on the type of construction. The multifamily market demand drivers are not anticipated to change in the near term. While the island of Oahu reports average annual new housing demand of 3,500 units, only 1,500 housing units at most are approved annually. Paul Brewbaker, former chief economist for …

January 29, 2019

Features Finance Insight Midwest Northeast Southeast Texas Western

Deploying Capital in 2019

by Jaime Lackey January 28, 2019

Todd Harrop, executive vice president and national director of capital markets at Bellwether Enterprise in Columbus, Ohio, believes 2019 will be another opportunistic year for lenders and intermediaries. REBusinessOnline discussed with Harrop the abundance of capital in this market – and how discipline and changes in capital providers’ programs have put these funds to work. What is the biggest challenge you anticipate in 2019 as an intermediary in commercial real estate? Much like 2018, we continue to be optimistic about the commercial real estate finance market in 2019. In 2018, we were challenged with a variety of market disruptors including rising interest rates, market volatility, geopolitical risks, and signs of an overall slowing global economy. In 2019, we expect these disruptors to continue. Furthermore, the debt space remains very crowded as capital flows continue to rise and opportunities have declined due to fewer refinance opportunities. The good news is capital is far from complacent and underwriting remains very disciplined, which should enable the markets to continue to function well. Where do you see the biggest opportunity for your company in 2019? In general, I believe there is an increased opportunity for mortgage bankers/intermediaries in 2019. This is due to the fact …

January 28, 2019

California Development Multifamily Student Housing Western

California State University Board Grants Final Approval for $164 Million Residence Hall

by Amy Works January 28, 2019

SACRAMENTO, CALIF. — The trustees of California State University have given final approval for a $164 million student housing community to be built on the university’s Sacramento campus. A public-private partnership between the university, Greystar and the university’s nonprofit affiliate, University Enterprises Inc., will develop the community. The 360,000-square-foot development will offer 1,100 beds in studio, two- and four-bedroom, apartment-style units. The property will also feature a clubhouse, café, fitness center, community room, outdoor pool, sand volleyball court, bocce court, barbecues and 546 surface-level parking spaces. The development team is scheduled to break ground on the project in May, with completion set for summer 2021. The first phase of the project, which includes relocating the Dan McAuliffe Memorial Ballparks to a new location, is currently underway. Steinberg Hart architects designed the project, which Sundt Construction will build.

January 28, 2019

Crescent-Real-Estate-Colorado-Springs-CO

Acquisitions Colorado Loans Office Western

Crescent Real Estate Receives $102.5M in Financing for 13-Building Office Portfolio in Colorado Springs

by Amy Works January 28, 2019

COLORADO SPRINGS, COLO. — Crescent Real Estate LLC has received $102.5 million in acquisition financing for a suburban office portfolio in Colorado Springs. Trey Morsbach, Jim Curtin and Leon McBroom of HFF secured the five-year, floating-rate acquisition loan through Bank of America Merrill Lynch. The 13-building portfolio features more than 1 million square feet of office space. At the time of acquisition, the portfolio was 75 percent occupied by a variety of industry sectors, including aerospace, government and military/defense contractors, technology and healthcare. Major tenants include Northrop Grumman, Army National Guard, GSA, The Spectranetics Corp., Booz Allen Hamilton and United Healthcare.

January 28, 2019

Newer Posts

Older Posts