Southeast

Meridian Group Announces New Retailers Joining The Boro in Metro D.C.

by Alex Tostado February 4, 2019

TYSONS, VA. — The Meridian Group has announced retail tenants that will join The Boro, a planned mixed-use development in Tysons. The new tenants include a two-story Ethan Allen furniture store, French bakery Paris Baguette, Verizon Wireless, a hair studio, nail lounge and restaurants Akira Ramen and Poki D.C. Dave Ward and Geoff Mackler of H&R Retail represented Meridian Group in the lease negotiations. The Boro’s first phase will feature 2 million square feet of office, retail, entertainment and residential space. Nine retailers have already committed to The Boro, including Whole Foods Market, ShowPlace ICON Theaters, MyEyeDr., Tasty Kabob, Fish Taco and Tropical Smoothie Café. The Boro is situated about nine miles northwest of downtown Arlington. The Meridian Group expects The Boro to open this year.

February 4, 2019

Acquisitions Georgia Industrial Southeast

Americold Acquires PortFresh for $35M, Including Land in Savannah for New Cold Storage Warehouse

by Alex Tostado February 4, 2019

SAVANNAH, GA. — Americold, a global owner and operator of temperature-controlled warehouses, has acquired PortFresh Holdings for $35 million. PortFresh is a privately owned operator servicing produce mainly out of the Port of Savannah. Americold’s acquisition includes 163 acres of land adjacent to PortFresh’s Savannah site, on which, Americold plans to build an approximately 60,000-square-foot warehouse. The planned building is expected to feature 37,000 pallet positions, advanced blast freezing capabilities and space and infrastructure to support refrigerated-containerized trade. Atlanta-based Americold plans to open the facility in early 2020 and expects it to cost between $55 million and $65 million to develop.

February 4, 2019

Acquisitions North Carolina Retail Southeast

InvenTrust Properties Purchases Grocery-Anchored Retail Center in Durham for $23.3M

by Alex Tostado February 4, 2019

DURHAM, N.C. — InvenTrust Properties Corp. has acquired Commons at University Place, a 92,100-square-foot retail center in Durham, for $23.3 million. The center is anchored by Harris Teeter and CVS/pharmacy. The asset is situated about four miles south of Duke University and about five miles southwest of downtown Durham. The seller was not disclosed.

February 4, 2019

Acquisitions Kentucky Multifamily Southeast

Middleburg Buys Apartment Complex in Louisville, Plans $16M Renovation

by Alex Tostado February 4, 2019

LOUISVILLE, KY. — Middleburg has acquired Arcadia Park, a 418-unit apartment complex in Louisville that is mostly abandoned. The sales price was not disclosed, though Middleburg is planning a $16 million renovation for the asset, which will be rebranded as Vesta Derby Oaks. The property currently offers two-bedroom floor plans. Middleburg plans to renovate all 418 units to offer a mix of one-, two- and three-bedroom floor plans. Further renovations include new siding, windows, roofs, interiors, plumbing, HVAC and electrical systems, new Energy Star-rated appliances, LED lighting and improved sidewalks and landscaping. The name Vesta Derby Oaks is a tribute to Churchill Downs, which is situated less than one mile from the apartment complex.

February 4, 2019

Development Mixed-Use North Carolina Southeast

Beacon Properties Breaks Ground on Mixed-Use Project in Metro Raleigh

by Alex Tostado February 4, 2019

CARY, N.C. — Beacon Properties Group has broken ground on a two-story, 28,231-square-foot mixed-use building located at 150 Wellesley Trade Lane in Cary. The building will feature 16,000 square feet of medical office and office space and 10,000 square feet of retail space, including 3,400 square feet for a restaurant. The project is situated about 18 miles west of downtown Raleigh and about 17 miles south of downtown Durham. Picket Sprouse Commercial Real Estate is handling leasing for the building. The project team also includes architect Barber Architects and civil engineer EarthCentric Engineering. The building is expected to be complete this summer.

February 4, 2019

District of Columbia Market Reports Multifamily Southeast Market Reports

D.C.’s Multifamily Market Sees Strong Demand for its Healthy Development Pipeline

by Alex Tostado February 4, 2019

Washington, D.C.’s multifamily market has enjoyed success in recent years, and 2018 has been no exception. The regional economy continues to function at an extremely healthy level, adding 77,100 new jobs in the trailing 12 months ending July 2018, much more than the annual average of 41,000 since 2010. The region has outgrown its previous dependence on the federal government, which contracted by 4,800 jobs over the same period, further highlighting the strength of the region’s private sector. This sustained economic upside is only further enhanced by the looming possibility of Amazon’s HQ2, Apple and other large tech contracts. The strong job growth has been matched by a steady increase in population, which has grown 10.44 percent since 2010, to roughly 6.25 million people. To accommodate such growth, the supply pipeline has been equally as robust, delivering nearly 13,000 units per year for the past five years. In addition to all the recent deliveries, absorption has remained steady and strong, with the market absorbing a net positive of 7,570 units over the trailing 12 months. Furthermore, Class A rents have still managed to grow 1.4 percent over the past year, while overall market rent growth has grown an even higher …

February 4, 2019

Matt Rocco of Grandbridge Real Estate Capital

Features Finance Insight Midwest Northeast Southeast Texas Western

Competition Will Continue for Top Quality Commercial Real Estate in 2019

by Jaime Lackey February 2, 2019

Matt Rocco, president of Grandbridge Real Estate Capital, realizes this year may not maintain the exact same lending velocity as last year. However, he sees plenty of opportunities in workforce and affordable housing, as well as in industrial real estate. This, combined with plenty of capital, may keep competition fierce for strong commercial assets in the foreseeable future. Many believe lending velocity may slow this year compared to 2018. What is your take on this? Rocco: We expect transactional velocity will be flat or down slightly as compared to 2018. This year and 2020 only have modest maturity activity. As a result, many new refinancing assignments will come from floating-rate loans that are converting into fixed-rate loan terms. Given the very flat yield curve, we anticipate many clients will move from these floating-rate loans to match their ownership objectives. They will likely seek fixed-rate loan terms at the same coupon rate as their floating-rate alternatives. We also expect lending volume from CMBS, agency and life insurance companies to be flat or slightly down in 2019 compared to the record year in 2018. Are there any specific product types that seem particularly attractive in 2019? Rocco: We expect to see robust …

February 2, 2019

Features Finance Insight Midwest Multifamily Northeast Seniors Housing Southeast Texas Western

Experience Pays Off for Reputable Seniors Housing Operators

by Jaime Lackey February 2, 2019

Mark Gould, national production manager of M&T Realty Capital Corporation, believes the seniors housing continuum of care may hold vast opportunities for those with the know-how and discipline to weather any short-term storms. Where do lending opportunities – and challenges – lie in 2019? Gould: We have been active in the seniors housing sector for a very long time. We see this asset class continuing to grow in 2019 as the U.S. aging population will drive growth. Challenges will lie with inexperienced parties trying to capitalize on the favorable demographic trends who do not fully understand the complexity of operating in the healthcare space. Wage pressures and nurse staffing shortages will further heighten the operating challenges in this space. I also think dollar volumes will stay steady. Rising rates have placed some DSC [debt service coverage] limitations and have required more equity into deals. There didn’t seem to be as many large portfolio deals in fiscal year 2018, which we believe resulted in a heightened number of transactions. This is an indication of a healthy market. Does the seniors housing market have room to grow beyond its 2018 activity? Gould: We are seeing some very innovative solutions from our customers that …

February 2, 2019

Features Finance Insight Midwest Multifamily Northeast Southeast Texas Western

Multifamily Sentiment Remains Strong For The Foreseeable Future

by Jaime Lackey February 2, 2019

Hilary Provinse, executive vice president and head of mortgage banking at Berkadia, highlights the trends, strategies and activity attendees should have on their radar ahead of MBA CREF 2019 in February. Coming off a strong and surprisingly consistent year in 2018, we’re feeling good about 2019. The year is off to an interesting start to say the least, and we’re keeping our eye on several factors. These include Treasury rates, the regulatory environment, tariffs and development costs that will impact our business. Even keeping these in mind, however, there are positive factors that point to the potential for continued economic strength and activity in the multifamily market. Fundamentals of the Economy Remain Very Strong Unemployment continues to fall, and jobless claims remain extraordinarily low. Despite the recent decrease in consumer confidence — volatile in its own right — it remains near the highest levels since 9/11. GDP growth also remains strong with consumption, investment and government outlays all supportive. Multifamily Demand-Supply Dynamics Remain Solid The percent of population living in multifamily units has experienced a slow, but consistent, increase since the 2008 financial crisis. Loan maturities are expected to increase in 2019 versus 2018 across several sources. Maturities are inevitable events that …

February 2, 2019

Acquisitions Office Southeast Virginia

RMR Group Purchases Office Building in Richmond for $56M

by Alex Tostado February 1, 2019

RICHMOND, VA. — RMR Office Property Fund, a real estate investment fund managed by a subsidiary of The RMR Group Inc., has purchased a 355,449-square-foot, Class A office building located at 9954 Mayland Drive in Richmond for $56 million. The asset was 98 percent leased at the time of the sale. The building is situated about 12 miles northwest of downtown Richmond and recently underwent $16 million in renovations to add a new four-story parking garage, new roof, new fitness center and a cafeteria, as well as updated lobbies, elevators and building mechanical systems. The seller was not disclosed.

February 1, 2019

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