BLAIRSTOWN, IOWA — Gulf Alternative Energy Corp. (GAEC) has agreed to purchase an ethanol production plant located in Blairstown. The facility, which is presently owned by Xethanol Biofuels, has the capacity to produce up to 6 million gallons of ethanol per year. GAEC plans to convert the plant to produce ethanol from cellulosic plant materials such as corn stalks and cobs, switchgrass, and agricultural waste. The facility previously produced ethanol from food and feedstock-based materials such as corn. The acquisition is scheduled to close this fall.
INDEPENDENCE, MO. — Hobby Lobby and Christian bookstore Mardel have joined the tenant roster at The Falls, a destination retail center located at the interchange of Interstate 70 and Highway 291 in Independence. Hobby Lobby will occupy a 55,000-square-foot store and Mandel will occupy 25,000 square feet. Both stores are currently under construction, with completion expected by the end of the year. The Falls is a 200-acre development anchored by a 160,000-square-foot Bass Pro Shops Outdoor World with an adjoining 200-room hotel and conference center. The project also contains an 80-acre city park with an 18-acre stocked lake, a 70-foot waterfall and a 2-mile walking trail. Kessinger/Hunter & Co. is overseeing marketing efforts for the project.
As many investors know, a diverse portfolio is the cornerstone of success. And today, even in a down market, commercial real estate is an important component for many investors. Recently in Atlanta, Interface Conference Group brought financial planners and real estate experts together to discuss the state of the commercial real estate market and investing today. The conference — Real Estate’s Place in Wealth Management and Financial Planning — began with a frank, informative keynote address from Zachary Taylor, group chairman and managing partner of global wealth management firm Taylor, Fréres & Cie, a multinational concern with businesses spanning the commodities, asset management, and investment banking sectors. Taylor’s initially set out to identify the role of commercial real estate in the crafting and management a modern portfolio — it should comprise between 20 and 30 percent in total — noting that the act of doing so has changed considerably over the past 3 years. “Financial planners need to step back and understand where capital is and what is driving it, in order to keep the wealth management business moving forward,” he noted. Taylor, Fréres & Cie’s philosophy ensured that Taylor was particularly suited to address the crowd of nearly 200 …
COLUMBIA, S.C. — The Home Depot will open a 465,000-square-foot rapid deployment center, meant to serve as a distribution point for 150 stores in the Southeast, in Columbia next January. Located in the Lexington County Industrial Park, plans call for 171 dock doors and 18,000 square feet of office space. Columbia-based Miller-Valentine Group has broken ground on the project, which will be constructed in 28 weeks. The facility is part of the home improvement retailer’s plan to move from a decentralized retailer system — every store carrying a large amount of goods — to a regional system. “In the past, they’ve kept a lot of on-hand stock in the stores,” says Kurt Eyring of Miller-Valentine. The new warehouse will also allow The Home Depot to expand its product line, he says. When completed, approximately 300 workers will find employment in the new center. But judging from other deployment centers that have been built throughout the country, Chuck Salley of Colliers Keenan’s Columbia office says he doesn’t expect the project to generate more development. “In other markets that really hasn’t been the case,” Salley says. “It will be a nice job creator.” The Home Depot considered a number of locations for …
MILWAUKEE — Milwaukee-based NAI MLG Commercial has completed four Wisconsin industrial sales. In the first transaction, David Stock sold a 12,000-square-foot property, located at 3206 Menasha Ave. in Manitowoc, to Factory Ride Off Road. NAI’s Brett Garceau and Curt Pitzen represented both parties. In Delafield, Creekside Builders sold a 11,490-square-foot property, located at 350 Austin Circle, to 5 Alarm Fire & Safety Equipment. NAI’s Stephen Provancher represented both parties. In Fond du Lac, K&S Acquisitions sold a 9,216-square-foot property, located at 62 N. Meadows Dr., to FQ Wholesale. NAI’s Ross Fuller represented the seller. Finally, Claudia and David Gehl sold a 6,400-square-foot property, located at 8634 W. Kaul Ave. in Milwaukee, to Four-Way LLC. Pitzen and Collin Schaible, also of NAI, represented both parties. The acquisition prices were not disclosed.
Job cuts among financial and professional services firms will cause office fundamentals to weaken in Boston this year, but modest amounts of new construction will temper the supply and demand imbalance. With layoffs at State Street Bank, Bank of America, Merrill Lynch and Fidelity Investments projected to total in the thousands, a resulting decline in office space demand will drive up vacancy for the second consecutive year. In the CBD, negative net absorption of approximately 550,000 square feet will raise the average vacancy rate nearly 200 basis points to the high-11 percent range. While tenant demand across the metro will wane in the near term, tighter construction financing and lingering economic concerns have reined in development activity. Completions in 2009 will drop off from last year and will represent only a 0.6 percent expansion of metrowide inventory, helping to offset reduced employment-generated demand. Weakening fundamentals and an uncertain economic outlook will underpin conservative buyer expectations this year. As a result, deals will be underwritten assuming higher vacancy rates and rent declines, elevating cap rates metrowide. Currently, initial yields are averaging in the high-6 percent to mid-7 percent range, up about 25 basis points to 50 basis points over the past …
GREENWICH, CONN. — Greenwich-based Starwood Capital Group has filed plans to create Starwood Property Trust, a Maryland-based real estate investment trust that will focus on commercial real estate investments. The new corporation primarily will originate, finance, manage and invest in commercial mortgage-backed securities, with the potential to invest in residential mortgage loans and residential mortgage-backed securities in the future. The REIT plans to finance its investments initially through the U.S. government’s Public-Private Investment Program (PPIP) and the Term Asset-Backed Securities Loan Facility (TALF) programs. The REIT plans to make an initial public offering in the near future, but the price of the stock has not been set.
DENTON, TEXAS — Feldman Mall Properties is currently negotiating with its lender for a forbearance on a loan that is partially secured by Denton’s Golden Triangle Mall. According to a release from the Great Neck, N.Y.-based shopping mall owner, the company has a $30 million line of credit, which is secured by some of its properties up to $24.6 million, and a guarantee by one of the company’s direct subsidiaries for any outstanding balance over that amount. The company states that its current outstanding balance is $27.8 million and it has also violated certain financial covenants. It is looking for a forbearance through the end of this year. Last year, Feldman attempted to complete a deal with Inland American Real Estate Trust in which Feldman would repurchase 2 million shares of preferred stock from Inland and receive $9.25 million from the company in exchange for Inland receiving the titles to Golden Triangle Mall; Stratford Square Mall, located in Bloomingdale, Ill.; and Northgate Mall, located in Cincinnati. Inland terminated the agreement in January 2009. At the time, Feldman state that it would need to find another way to raise the capital to retire $28.5 million in secured and unsecured, fixed and …
HOUSTON — AmREIT has completed the next phase of its Vision 2010 repositioning plan by approving the relocation of the company’s headquarters from Houston to Maryland. In addition, the company has entered into an agreement with its advised non-traded REIT affiliate, REITPlus, that will merge the two companies. The combined company will be known as AmREIT; H. Kerr Taylor, the current president and CEO of AmREIT, will remain chairman of the newly combined board of directors. The relocation has already occurred and the merger is expected to close in September. The first phase of AmREIT’s Vision 2010 plan, which was completed late last year, included simplifying the company’s operating platform and delisting its Class A stock in order to privatize.
STOCKBRIDGE, GA. — Tri County Pediatrics has purchased a 7,500-square-foot medical office condominium from SFA Enterprises for $1.5 million. Located at 193 N. Park Trail in Stockbridge, the condominium is part of a 15,000 square foot, Class A medical building. Edward Jones of Atlanta-based Bull Realty brokered the transaction.