SAN ANTONIO — Stockholm, Sweden-based Skanska USA has signed an $80 million contract to construct Phase II of Wilford Hall Ambulatory Surgical Center at Lackland Air Force Base in San Antonio. The project includes a 27,700-square-foot addition for the U.S. Army Corps of Engineers. Skanska is expected to begin construction in November and completion is slated for September 2013.
The combination of a reeling stock market, weak consumer confidence, and an escalating European debt crisis has led to growing concerns about the possibility of a double-dip recession. Not so fast, says Ethan Penner, a self-described contrarian. The president and founder of CBRE Capital Partners is convinced that the deeply gloomy outlook for the U.S. economy held by many Americans means that now is the ideal time to turn bullish. “I would say there probably has never been a Depression or a market crash when everyone is bearish. Think about the last big crash we had, which was 2007 and 2008. Everyone was incredibly bullish, incredibly optimistic.” The comments from Penner came during his keynote address delivered Sept. 27 in Atlanta as part of a commercial real estate finance conference hosted jointly by law firm Morris, Manning & Martin and France Media. “I’m known for being an inveterate bear, but this pervasive bearishness is causing me to reconsider that. The next surprise is more likely to be on the upside than the downside,” Penner told attendees. Still, the global macro economic climate and financial system are in extremely bad shape, Penner acknowledged. To help prop up the weak housing market, …
SAN JOSE, CALIF. — DHL Solutions (USA) has renewed its lease at two warehouse facilities in the Prologis Trimble Park in San Jose. The total amount of space the company is leasing here totals 82,800 square feet. The first warehouse/distribution building is 49,733 square feet and located at 450 Trimble Road. The second facility is 33,067 square feet and located at 470 Trimble Road. Greig Lagomarsino of Colliers International’s Oakland office represented DHL Solutions. Prologis is the landlord.
MANSFIELD — Memphis-based MAA has acquired the 456-unit Legends at Lowe's Farm, an apartment community located at 1400 N. State Hwy. 360 in Mansfield, which falls into the Dallas/Fort Worth MSA. The property was developed in 2008 and features a pool, a fitness center, a business center, garages and upscale interior amenities. The acquisition was funded by common stock issuances through MAA's at-the-market program and borrowings under current credit facilities. Roberto Casas and Bill Miller of Holliday Fenoglio Fowler's Dallas office represented the seller, Alliance Residential. The property was formerly known as Broadstone Lowe's Farm.
CHICAGO — Summit Design + Build has completed a $20 million, 91,000-square-foot headquarters and product distribution facility for Testa Produce, located at 4555 S. Racine Ave. in Chicago. The facility sits on 11 acres in the Chicago Stockyards Industrial Park. Testa Produce will relocate from its existing facility at 1501 N. Blue Island Ave. in Chicago.
BEACHWOOD, OHIO — Beachwood-based shopping center developer Developers Diversified Realty Corporation (NYSE: DDR) plans to officially change its name to DDR Corp., adopting its New York Stock Exchange ticker symbol and most commonly-referred identity, DDR, as its official brand name. The company also unveiled a new logo, tagline and brand identity, including in the launch of the new brand the tagline “Think Retail. Create Value.” “Our new name accurately reflects the fact that we have simplified our strategy, portfolio and capital structure,” said Daniel B. Hurwitz, president and chief executive officer of DDR. “The words 'developers' and 'diversified' no longer have primary significance in our company strategy. Ground-up development of new shopping centers, while still part of our business, no longer warrants top billing in our name. Furthermore, our focus on open-air, value-oriented shopping centers renders the word 'diversified' inaccurate.” DDR is an owner and manager of 546 primarily open-air shopping centers, operating a total of 126 million square feet in 41 states, Puerto Rico and Brazil, concentrated in high barrier-to-entry markets with stable populations and high growth potential. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company. DDR will remain an Ohio corporation, …
The market for soft and hard goods remains somewhat weak due to uncertainty in the economy and labor market (although the Houston job market is generally stronger than the rest of the country). However, in the last several months, many big boxes that went dark due to bankruptcies and/or downsizing have been absorbed, either in the totality or because of the lack of 50,000-square-foot tenants in the market. Landlords have had to get creative and divide larger spaces to accommodate smaller tenants. Generally, the most active tenants in this arena have been health clubs, discount stores, dollar stores and non-traditional retailers. Landlords, eager to fill dark spaces, are making very aggressive deals (low base rents, extra tenant allowances, more free rent, etc.). On the other hand, fast casual (FC), quick-serve restaurants (QSRs) and casual dining remains robust. As such, many companies are aggressively seeking locations in Houston. It has been increasingly difficult to find locations that can accommodate FC, QSR’s (especially users with a drive-thru) and casual dining needs because quality locations have become scarce and parking requirements can’t be adequately met. Alternatively, fine dining has been spotty with good thru-puts but lower average checks. Many restaurateurs have been reluctant …
ORANGE COUNTY, FLA. — In an effort to create connectivity and commerce in the western Orlando area, Boyd Development Corporation is under way on development of “Town Center East,” a mixed-use project with an expected investment of $940 million, located within the Horizon West area. According to the Orange County Government, Horizon West is a 23,000-acre special planning area located in southwest Orange County. In mid-July, Boyd and Stratford Land, a Dallas-based land investment firm, closed on approximately 600 acres of property in Horizon West situated on the northeast and southeast quadrants of the Western Beltway (SR 429) at the New Independence Parkway interchange. Once the initial planning phases are complete, Boyd/Stratford plans to position the property as a master-planned, mixed-use project. The land, which is bordered on the east by Lake Hancock, has more than two hundred acres of residential land with approximately three miles of lakefront. An aerial view of the land to become Town Center East in the Horizon West area of southwest Orange County, Fla. Town Center East will be built out in phases over the next 7 to 10 years as a mixed-use development with retail, office, hotel, institutional and lower, medium and higher density …
CHICAGO — Chicago-based Paine/Wetzel – ONCOR International has negotiated the sale of a 168,350-square-foot industrial building at the Stockyards Industrial Park, located at 4130 S. Morgan St. in Chicago, to Key Foods Services. Brad Weiner of Paine/Wetzel – ONCOR and George Maragos of CB Richard Ellis' Chicago office represented the seller, Morse Automotive, in the transaction. Sally Macoicz of Cushman & Wakefield's Chicago Downtown office represented the buyer.
SANTA ANA, CALIF. — Grubb & Ellis Co. has completed the sale of Daymark Realty Advisors, a joint venture entity controlled by Sovereign Capital Management Group and Infinity Urban Century. The sale marks Grubb & Ellis’ exit from the tenant-in-common business, which it entered at part of the company’s 2007 merger with NNN Realty Advisors. “Our corporate strategy is to focus on our real estate services and investment management business, specifically the non-traded REITS,” said Janice McDill, senior vice president of marketing and communications for Grubb & Ellis. “The sale of Daymark is extremely positive for our company,” said Thomas P. D’Arcy, president and CEO of Grubb & Ellis in a statement. “Daymark was noncore to our Real Estate Services and non-traded REIT businesses. This sale will allow us to focus our profitability and growth, while continuing to review our broader corporate strategic alternatives.” The sale involved the purchase of Daymark stock by the joint venture equity. FBR Capital Markets & Co. served as financial advisor to Grubb & Ellis for the transaction. Daymark is one of the largest real estate asset management companies in the country with a nationwide portfolio of commercial property totaling approximately 33 million square feet. …