While the meltdown of the housing market originally benefited the multifamily sector — as more homeowners transitioned to renters — the current recession and its rising unemployment has started to affect activity. “Right now, it is all about the economy,” says Kevin Wolfgang, president of New Castle-based Evergreen Realty and recently elected president of the Delaware Apartment Association. “Our industry is directly affected by the job market, so the increased amount of unemployment has created significant operation challenges.” Multifamily owners in Delaware are weathering the storm by focusing on the operation of the properties — trying to find ways to make them as efficient as possible. This has slowed down sales considerably. Owners who are still receiving a steady cash flow are seeing no reason to sell for less money. “Most investors are very cautious right now,” Wolfgang says. “No one is chasing deals, and there is nothing that I have seen as having a major impact on the market right now.” Evergreen Realty’s main activity has been its purchase and upcoming redevelopment of Hampston Walk Apartments, a 370-unit community located in New Castle. The company purchased the blighted property in mid-2008 and is repositioning it with renovations to unit …
WASHINGTON, D.C. — Washington, D.C.-based ICG Properties and Castleton Holdings are slated to redevelop the 50,000-square-foot office building at 1050 31st St. in Washington. The five-story building was previously occupied by the American Trial Lawyers Association. The companies are considering turning the property into a hotel or leasing the space to office users or high-end retail tenants.
AUSTIN, TEXAS —An agreement has been reach between Thomas Properties Group, Lehman Brothers and California State Teachers’ Retirement System (CalSTRS) for the refinancing of the Austin Portfolio, a 10-property, 3.5 million-square-foot office portfolio located in Austin. The portfolio’s $292.5 million credit facility was replaced by an unfunded $100 million commitment from Lehman Brothers, with $60 million of new senior secured priority financing contributed by the partners. Proceeds from the recapitalization are being used to acquire and retire $80 million in third-party term loan debt. As part of the transaction, all pending motions brought on behalf of the ownership group in Lehman Brothers’ bankruptcy case were resolved. Lehman Brothers will retain a 50 percent interest in the portfolio, while Thomas Properties Group holds a 6.25 percent interest indirectly through its joint venture with CalSTRS. Douglas Snyder of California-based Cox Castle & Nicholson LLP assisted in the debt restructuring.
DALLAS — Coppell Beer & Wine Inc. has acquired a 1.45-acre land parcel, located at 3203 Kirnwood St. in Dallas, for the construction of a new Sleep Inn & Suites hotel. The site is situated near a Walmart Supercenter and Wheatland Marketplace, a fully occupied retail center. Randall Chrisman of The Chrisman Company represented the buyer. Thad Beckner of locally based Henry S. Miller Brokerage represented the seller, Newcastle Plaza Associates LP. The construction timetable was not released.
MISSION VIEJO, CALIF. — Trabuco Hills Pads LLC has acquired a 24,250-square-foot portion of Trabuco Hills Shopping Center, which is located on Santa Margarita Parkway in Mission Viejo. The $14.4 million sale included Walgreens, Claim Jumper and Ramona Tire, which are located at 27785, 27845 and 27865 Santa Margarita Parkway, respectively. Dennis Vaccaro and Richard Walter of Faris Lee Investments represented the seller, Pacific Castle Props I LLC, in the transaction.
LA MIRADA, CALIF. — Voit Commercial Brokerage has completed three transactions totaling $14.7 million in La Mirada. In the first transaction, Faro Services signed a 5-year lease for a 210,300-square-foot industrial building. The property is located at 15910 Valley View Ave. Cameron Driscoll and Luke McDaniel of Voit’s Anaheim, Calif., office represented the lessee in the $5.9 million transaction. The landlord, Warehouse Investment Partners, was self-represented. In the second transaction, DAUM Commercial Real Estate Services represented George Yao in the $5.5 million acquisition of a 59,000-square-foot building located at 15905 Canary. Peter Castleton of Voit’s Anaheim office represented the seller, RGB Partners. In the final transaction, Champion Exposition Services Inc. signed a 5-year lease for a 76,244-square-foot industrial building, which is located at 14701 Industry Circle. The transaction was valued at $3.3 million. Driscoll and McDaniel represented the lessee; Steve Sprenger and Shawn Kelter of Grubb & Ellis represented the landlord, Berns & Sanderson LP, in the transaction.
LONG BEACH, CALIF. — DeVry University has signed an 11-year lease for a 47,500-square-foot built-to-suit office building at Douglas Park, a master-planned 261-acre mixed-use project in Long Beach. DeVry is the first tenant announced within the 54.5-acre portion of the park being developed by San Francisco-based Newcastle Partners and RREEF Alternative Investments. Construction on the building, which is located at Conant Avenue and Lakewood Boulevard, is expected to commence in May, with completion slated for March 2010. Design to obtain LEED Silver certification, the building will offer 360 parking spaces, outside gathering areas, building connectivity and infrastructure for solar power.
FREMONT, CALIF. — Overton Moore Properties (OMP), through its investment vehicle OMP Industrial III, has acquired a 506,940-square-foot industrial/research & development building in Fremont. Located at 901 Page Ave., the complex consists of manufacturing, warehouse, labs and office/work space. Additionally, the complex features 21 kVA utility service, 100 percent air-conditioned facilities, epoxy-coated ESD concrete slab floors, overhead power distribution bars in the manufacturing area, emergency power, 25 to 28-foot clear heights, fully calculated and ESFR sprinkler systems. Eric Fox of CPS CORFAC International and Peter Castleton of Voit Commercial Brokerage, a CORFAC International affiliate, represented the buyer. The seller was Hewlett-Packard Company. The value of the transaction was not disclosed.
HOUSTON — The grand openings have been held for six new tenants at Vintage Park, an approximately 500,000-square-foot lifestyle center located in Houston. Situated on 84 acres at the intersection of Louetta Road and Highway 249, the center’s new tenants include BRIX Wine Cellars, The Castleberry Center for Aesthetic Dentistry, Fish City Grill, Post Net, Signature Home Theater and Shogun Japanese Grill & Sushi. Many of the openings occurred when the center held its grand opening ceremonies in October. Tenants already open at Vintage Park include Cheeburger Cheeburger, H-E-B Vintage Market, LandAmerica Commonwealth Title, Pepper-Lawson Construction, Potbelly Sandwich Works, Starbucks Coffee, and Vintage Wellness & Aesthetic Center. Tenants opening soon at the center include Freshberry Frozen Yogurt, Mia Bella, Peli Peli, Pizza Fusion, Salaa & Trio Prime Steakhouse and Bar, Bank of Texas, Compass Bank, Heritage Texas Properties and Kickerillio Cos. Vintage Park is owned by Houston-based The Interfin Companies. It is the retail component of The Vintage, a 630-acre master planned community.
NEW YORK CITY — Brooklyn, New York City-based Kalmon Dolgin Affiliates (KDA) has arranged a 49-year ground lease for a 23,000-square-foot retail property located at 22-44 Church Ave. in the Flatbush neighborhood of Brooklyn. The property is currently occupied by a closed White Castle restaurant; it will soon house a new International House of Pancakes location, along with 9,000 square feet of retail space. Completion of the renovation is scheduled for mid-2009. KDA’s Allison Chambers represented the lessee, a locally based and investor, and Bob Klein, also of KDA, represented the landlord, Richard Ull.