Ohio

waynetown

HUBER HEIGHTS, OHIO — Mid-America Real Estate Corp. has arranged the sale of Waynetown Plaza located in Huber Heights, a suburb of Dayton. Baltimore-based Broad Reach Retail Partners purchased the 192,332-square-foot, grocery-anchored center. Waynetown Plaza is located at the southwest corner of Old Troy Pike (State Route 22) and I-70. Kroger anchors the shopping center. Other tenants include a Buffalo Wild Wings, TGI Friday’s, Chipotle, Burger King and Davita Dialysis. Ben Wineman of Mid-America and Chris Conley of Oberer Realty Services Ltd. represented the seller, a private investment group.

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LYNDHURST, OHIO — Columbus-based Steiner + Associates has arranged two retail leases at Legacy Village in Lyndhurst, a suburb of Cleveland. L.L. Bean and The Capital Grille executed leases at the 610,000 square-foot mixed-use town center. The 16,000-square-foot L.L. Bean will sell active and casual apparel and footwear, outdoor gear including hiking, fly-fishing, kayaking and camping products. L.L. Bean will open in the space currently occupied by Talbots, which will be relocating to a new space within the shopping center. The Capital Grille will occupy a 9,000-square-foot space. The restaurant is known for its dry-aged steaks and fresh seafood. First Interstate Properties owns Legacy Village.

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COLUMBUS — Lee & Associates has opened its second office in Ohio. Lee & Associates — Columbus is a merger between commercial real estate firm Ruscilli Real Estate Services and Lee & Associates. Tim Kelton, Mike Spencer, Dax Hudson and Todd Spencer, founders and principals of Lee & Associates — Columbus, will lead the office. Combined, the team has 85 years of commercial real estate experience in Central Ohio. In the last 10 years, the team has leased or sold more than 22 million square feet of space and developed or sold more than 750 acres of office, industrial and retail assets. In July, Lee & Associates opened its first office in Ohio, Lee & Associates Cleveland, which was followed by new offices in Denver and Houston.

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Throughout the economic recovery, real estate has been investors’ preferred asset class in the Cincinnati region and across the United States. Although the Federal Reserve is likely to raise short-term interest rates in June or September, demand for commercial real estate is expected to remain strong as long as the recovering economy continues to create new demand for commercial space. According to Real Capital Analytics, 2014 finally saw total U.S. sales volume and property prices (at the aggregate level) reach pre-recession levels. In fact, Real Capital Analytics reports that excluding portfolio sales, activity was higher in 2014 than in 2007. Investment Sales Surge Metro Cincinnati’s property and portfolio sales in 2014 totaled more than $2.3 billion across all major real estate sectors, a 53 percent increase over 2013. It was, by far, the strongest year for investment activity in recent memory, with significant increases across all property types. For the second straight year, retail sales transactions led the way locally among all property types. Retail sales volume in 2014 exceeded $600 million, $370 million of which occurred in the fourth quarter. Office property and portfolio sales in Cincinnati totaled nearly $580 million in 2014. This figure was a 162 percent …

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HeritageHall

CLEVELAND — Asset Campus Housing has purchased the 140-dorm facility and YMCA in Cleveland’s downtown campus district for $4.5 million. Euclid Avenue Development Corp. sold the facility, built in 1912, after purchasing it in 2009 to eliminate a troubled loan. Asset Campus will convert the facility into private student housing. Newmark Grubb Knight Frank represented the seller in the transaction. The 152,390-square-foot, nine-story building is situated on three acres, includes 175 parking spaces and has been the longtime home of the Downtown Cleveland YMCA, which will relocate in March 2016. Asset has renamed Heritage Hall as The Domain at Cleveland and plans to revamp the property with a clubhouse featuring group fitness classes, a computer lab with dedicated study rooms and a resident lounge with free coffee. The studio, one-bedroom and two-bedroom units will be renovated with new appliances, cabinets and countertops in the kitchenettes, upgraded bathrooms and new A/C and heating systems. The company is leasing apartments for the fall 2015 academic year.

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Industrial real estate market fundamentals in the Toledo, Ohio, area remained quite sound at the end of 2014. Most key indices showed stability or improvement. The most noteworthy statistic is the 2.3 million square feet of positive net absorption recorded in the second half of the year — the highest amount in recent memory. The lion’s share of the absorbed space can be attributed to the delivery of the 1.6 million-square-foot Home Depot warehouse in Troy Township. Even if the Home Depot deal is excluded from the data, the total absorption notched in the third and fourth quarters was impressive. Absorption would have been higher had the nearly 400,000-square-foot former Ace Hardware distribution center in Perrysburg Township not become vacant. In 2014, Ace announced that it would relocate its warehouse in the Columbus, Ohio area. Dearth of Suitable Space Despite the generally strong performance of the industrial real estate sector this past year, one senses that many of the players in the market are feeling some level of frustration. The frustration stems from the sentiment that things could be better — a result of the generally tight supply of buildings and the even tighter supply of the right types of …

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ELYRIA, OHIO — Namdar Realty Group has purchased a 266,000-square-foot shopping center in Elyria. The River Street Square Shopping Center is located at 285 Midway Blvd. Tenants at the shopping center include Petsmart, Dollar Tree, Dots, Radio Shack and Gamestop. Joel J. Gorjian and Namdar Realty Group specialize on special situation acquisition opportunities throughout the country.

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Historically low vacancy combined with pent-up demand in the Columbus industrial real estate market is driving new speculative construction for the first time since the Great Recession. In fact, we expect delivery of 1.8 million square feet of spec construction by the end of this year. After a six-year drought, several speculative and build-to-suit buildings, ranging from 300,000 square feet to 700,000 square feet, are in the works. More than 1 million square feet of space already has been absorbed this year — the highest amount since before the recession. The vacancy rate stands at 7.4 percent, 320 basis points lower than the historical average. Average asking rents for modern bulk buildings have risen 7 percent since last year. Cargo Air Service Advantage Rickenbacker International Airport, one of the only cargo-dedicated airports in the world, is a huge growth driver. As an important part of the global, multi-modal logistics hub, Rickenbacker Inland Port moves air cargo to, from and within the United States and has routes to Singapore, Shanghai, Hong Kong and Shannon, Ireland. FedEx Air, FedEx Ground and UPS regional hubs also are on-site. According to the U.S. Department of Commerce’s International Trade Administration (ITA), Columbus was among the …

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To say that 2014 has been filled with great excitement for Cleveland would be an understatement. In early July, the Republican National Committee selected Cleveland as the host city for its 2016 convention. That same month, NBA star LeBron James announced his intent to return to his hometown Cavaliers. Beyond those splashy headlines, during the first half of the year several real estate projects were announced. The planned projects combined with those already under construction or completed since 2010 represent $5.5 billion in public and private investment in downtown Cleveland. Apartment Building Boom One of the most significant stories in Cleveland is that the residential boom downtown continues to gain momentum. The overall occupancy rate in the apartment sector within the CBD rose from 94.5 percent in the first quarter of 2014 to just over 98 percent at mid-year, according to a recent study released by the Downtown Cleveland Alliance. As a result, new projects continue to pile up in an effort to meet the ever-increasing demand. In addition to the 1,000-plus rental units currently under construction, there are now more than 1,100 units in various planning stages. Projects announced since the first of the year include The Standard Building …

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Before the Great Recession of 2008 and 2009, many developers believed they could continue to build commercial product and demand would follow. But as the economy came to a screeching halt, reality kicked in and many owners and developers were stuck with product that couldn’t be sold or leased. Fast forward to 2014, and that stagnant product has slowly been absorbed as the economy has gradually recovered. From 2008 to 2014, construction of commercial real estate fizzled, resulting in lower vacancy rates and increased net absorption. Now, construction activity is beginning to increase and speculative construction is back in action. This uptick in construction and speculative development is especially apparent in the industrial real estate market. In Ohio, the industrial vacancy rate sits at an average of 6.8 percent for 962 million square feet of industrial space that Colliers|Ohio tracks in Cincinnati, Cleveland, Columbus and Dayton. Colliers|Ohio recorded more than 10 million square feet of positive absorption in 2013, and 6.9 million square feet during the first half of this year. Colliers has tracked an uptick in absorption in the industrial market for several years, and the supply of quality Class A bulk product has diminished significantly. Developers have taken …

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