Saturday, March 7, 2015

Cushman & Wakefield Reports Jacksonville Industrial Market Mirrors North American Upswing

Larry Richey

JACKSONVILLE, FL – Cushman & Wakefield released its 2015–2017 North American Industrial Forecast. The report highlights a number of positive trends emerging in the region.
The key take-aways from the report are as follows:

The continuing economic recovery, ongoing evolution of e-commerce, and resurgence in domestic manufacturing have generated resiliency in the industrial sector.

Trends in industrial real estate supply and demand are favorable across all major markets in the U.S. The overall market has already seen a significant decline in vacancy, with vacant space at its lowest level in over a decade.

The shifting demand and service paradigms, demographic market forces, and global dynamics will support continuing growth in industrial real estate.

Research Manager Chris Owen has seen similar trends develop in the Jacksonville market. His research indicates:

The overall vacancy rate in Jacksonville’s industrial market decreased to 9.8 percent over the past twelve months, dropping three-tenths of a percentage point from the end of 2013. The vacancy rate has fallen four percentage points since the second quarter of 2010 when the market reached its lowest point.

Tyler Newman

At the end of the year, average direct net asking rental rates in Jacksonville were up $0.10, or 2.6 percent, to $3.92 per square foot. 

This was the highest year-end level for asking rates since 2010. Tenant demand for smaller sized requirements played an important part in landlords’ confidence to raise asking rates.

Jacksonville’s industrial leasing activity in 2014 was up 6.3 percent from the level recorded in 2013 and the highest amount recorded since the Great Recession. Tenant interest is both internal as well as from outside of the market.

This mirrors what Cushman & Wakefield’s local brokerage professionals are seeing on the street.

“The Jacksonville market performed very well in 2014,” said Associate Director Tyler Newman, citing declining vacancy rates. “But we anticipate 2015 to be even better. There are a number of large users in the market and a few build-to-suits either under construction or in the works.”

A rejuvenated local economy has led to constrained supply, increased demand and predictable rate hikes.

“Lease rates will most likely increase simply due to the decreased supply and the cost of new construction,” added Newman. “Tenants would be wise to lock in a long term deal now, with the lower rates, before they increase by year end.”

“On the investment side, we are seeing increased activity with everything from value-add investors – buying vacant property, investing capital for improvements, and then leasing at market rates – to large portfolios coming to market,” explained Newman, offering Flagler’s buildings at Jacksonville International Tradeport as an example of the latter.

Chris Owen

 “I’d expect this trend to continue based on the large number of investors looking to place funds into industrial real estate.”

Senior Managing Director and Florida Market Leader Larry Richey has witnessed these favorable conditions propogate across the state.

“We’re seeing tremendous growth in Florida,” reported Richey. “From Miami to Jacksonville, the economy is improving and it’s driving the industrial market to new heights.”

Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. Founded in 1917, it has 248 offices in 58 countries, employing more than 16,000 professionals.

 It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management.

 For more information, download the entire 2015-2017 North American Industrial Forecast. 

 For a complete copy of the company’s news release, please contact:

Chris Owen
Research Manager
Central and North Florida
(407) 541-4417

Watt Communities of AZ Breaks Ground on Dorsey Lane in Tempe, AZ

From left, Watt's Howard Press, Steve Pritulsky and  Paul Timm

PHOENIX, AZ – Officials from Watt Communities of Arizona and Southern California-based parent company Watt Communities have celebrated the groundbreaking of Dorsey Lane, a 51-unit, for-sale upscale urban living townhome project in central Tempe, Arizona.

Dorsey Lane is the first of five infill urban living communities, with a construction value of more than $25 million, scheduled to break ground by Watt in metro Phoenix this year.

The Project Team at Watt Communities
Dorsey Lane is located on 3 acres just south of the southwest corner of Broadway Road and Dorsey Lane in Tempe. It is surrounded by Dorsey Crossing, a mixed-use residential, office and commercial services project, and within minutes of the Loop 101, Loop 202 and US 60 Superstition freeways.

Dorsey Lane is also just one mile from Arizona State University and the nearby, booming Mill Avenue/Tempe Town Lake employment corridor.

Steve Pritulsky
“Tempe is a mecca for new corporate office developments, drawn to the area’s highly educated employees and fantastic dining, shopping and entertainment,” said Steve Pritulsky, President and CEO of Watt Communities of Arizona.

 “It is where companies want to be and where employees want to live. We are ready to fill that need with a product that moves residents from renting to owning, while still maintaining an urban lifestyle.”

 When completed, Dorsey Lane will offer contemporary, three-story urban townhomes ranging in size from 1,400 to 1,800 square feet. 

Each townhome is designed with its own two-car garage and features community amenities such as a gated entry, pool/ramada/sundeck, outdoor poolside kitchen and landscaped paseos.

Pricing for Dorsey Lane will be released as its models near completion in mid-2015. The project is scheduled to open in August.

“Watt has a decades-long track record of successful urban residential infill developments,” said Watt Communities President Howard Press

“We are thrilled with our partnership in Arizona, with the tremendous sites that Phoenix has to offer and with the pipeline of projects that we will be delivering here in the year ahead.”

Paul Timm
“We could not have found a better partner than Watt,” said Paul Timm, COO of Watt Communities of Arizona. “They understand the importance of matching each unique location with the specific needs of that submarket.

“We’ve done this at Dorsey Lane, and at all of our sites, to combine the vibrancy of urban living with all of the comforts of home.”

In addition to Dorsey Lane, Watt will break ground on four other for-sale, metro Phoenix infill residential projects this year.

These developments include Biltmore Living, a 40-unit urban townhome project in the Camelback Corridor; 16 Ocotillo, a gated community totaling 16 single-family detached homes at 16th Street and Ocotillo Road in North Central Phoenix; The Enclave at 32nd Street, totaling 31 two-story, single family detached homes near 32nd Street and Cactus Road in North Phoenix; and the company’s newest project, totaling approximately 27 upscale urban townhomes at 8th Street and Roosevelt in downtown Phoenix.

At Dorsey Lane, BSB Architects serves as the project architect, CEG is the civil engineer and WCA Development Services is the general contractor. The construction lender is Sabal Financial.

Watt Communities of Arizona continues to evaluate other sites in key Phoenix area urban infill markets as well, with the goal of developing additional quality, attached and higher density detached for-sale communities.

For more information, contact Pritulsky or Timm at (480) 386-0259.

For a complete copy of the company’s news release, please contact:

Stacey Hershauer
Marketing & Public Relations
(480) 600-0195

Abington, MA Retail Center Sells for $2.6 Million; Northeast Private Client Group Represents Seller Exclusively

Drew KIrkland

Framingham, MA – Investment sales broker Northeast Private Client Group has announced the sale of the 21,000 square foot multi-tenant commercial property located at 1035 Bedford Street, Abington, MA.

 Drew Kirkland, a senior associate in the firm’s Framingham office, represented the seller exclusively in the $2,600,000 transaction, which closed on February 27. 

“The successful completion of this sale is yet another positive indication of the strong demand for commercial properties in suburban Boston submarkets,” said Kirkland. “We were able to create tremendous competition among qualified buyers to acquire this asset.”

The mixed-use property, located on Route 18 in Abington, MA, approximately 15 miles south of Boston, comprises 8,400 square feet of retail, 4,600 square feet of office and 8,000 square feet of warehouse space.  The property was built in 2005 and operates at 95% occupancy.

The seller, Elaine Realty of Quincy, MA, sold the asset as part of an IRS-1031 exchange strategy. 

Edward Jordan
The buyer, a private investor from Weymouth, MA, was represented in the transaction by David Ellis of Jack Conway Commercial in Norwell, MA. 

The buyer acquired the property at price equivalent to $125 per square foot, a 7.0% capitalization rate on actual net operating income.

“This transaction clearly played to the strengths of our platform,” said Edward Jordan, JD, CCIM, managing director of Northeast Private Client Group.

  “With offices throughout the Northeastern U.S., we executed successfully for our client and closed the transaction at top market value.”

For a complete copy of the company’s news release, please contact:

Randy Savicky
Connecting the New PR & Marketing to Business Goals

Crossman & Company Brings 106,053-SF Publix-Anchored Shopping Center to 100 Percent Occupancy in Orange City, FL

Melody Traeger
ORLANDO, FL – Crown Centre Plaza in Orange City, Florida welcomes Affordable Hearing Solutions to the shopping center. 

Anchored by Publix Super Market and Bealls Outlet, the 2,000 SF lease brings the center to 100% occupancy.

  Located at the corner of Enterprise Road and Saxon Boulevard, just off of I-4 in Orange City, Florida, Affordable Hearing Solutions joins notable tenants such as UPS, Jersey Mike’s Subs and Great Clips. 

Crossman & Company’s Senior Associate, Craig Katterfield, CCIM, represented the landlord, Publix Super Markets, Inc.  Melody Traeger, CCIM with Coldwell Banker Commercial AI Group, represented the tenant.

For a complete copy of the company’s news release, please contact:

Sydnie Cobb
Marketing Specialist | Crossman & Company
3333 S. Orange Ave. Suite 201 | Orlando, Florida 32806
407.581.6261 (direct) | 407.423.5400 (main)

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Ackerman & Co. Hires New Retail Investment Sales Broker Joseph B. Harland II

Joseph B. Harland II
Atlanta, GA – Ackerman & Co., a full-service commercial real estate firm headquartered in Atlanta, announced today the appointment of Joseph B. Harland II as associate broker to round out its investment sales team.

Harland, who specializes in the dispositions of single-tenant retail, net-leased investments, brings a wealth of business acumen and experience to the team.

Over the course of his 20-year career, he has worked with professional services clients as well as retail and restaurant owners. He has been directly involved in sales and lease transactions valued in excess of $200 million. 

Prior to joining Ackerman & Co., Joseph was an associate broker at Coldwell Banker Commercial Metro Brokers for more than seven years. 

He has held financial and consulting positions with GMAC Financial Services, Hewlett-Packard and Wells Fargo Bank. Harland also owned and operated a restaurant franchise for five years.

Harland graduated from Xavier University of Louisiana with a Bachelor of Science degree in Business Administration/Finance and earned a Master of Business Administration from Clark Atlanta University. He is a licensed real estate salesperson in Georgia and California.

He is a member of the Atlanta Commercial Board of Realtors and the International Council of Shopping Centers.  Harland is also a certified commercial investment member candidate.

For a complete copy of the company’s news release, please contact:

Fara Wilson
Vice President, Marketing
P: 770.913.3904    C: 678.358.2060    F: 770.913.3965
Ackerman & Co.
10 Glenlake Parkway, South Tower, Suite 1000

Atlanta, Georgia 30328

Ackerman & Co. Sells Walgreens Property in Douglasville, GA for $5.8 Million

Walgreens, Douglasville, GA

Sean Patrick
Atlanta, GA– Ackerman & Co. has brokered the sale of a 14,490-square-foot, single-tenant, net-leased Walgreens in Douglasville, Ga. for a healthy $5,850,000 (99% of asking price). 

The property, constructed in 2002, is located at a highly traveled corner in the largest retail market in west Atlanta MSA.

Sean Patrick, vice president of Investment Sales at Ackerman & Co. represented the seller, a local investor SAUM, LLC. 

The property was purchased by Douglas Corner LLC and represented by Mark Myers of Park Place Realty, LLC.   

For a complete copy of the company’s news release, please contact:

Fara Wilson
Vice President, Marketing
P: 770.913.3904    C: 678.358.2060    F: 770.913.3965
Ackerman & Co.
10 Glenlake Parkway, South Tower, Suite 1000

Atlanta, Georgia 30328

McCarthy Completes Construction of $456 Million Prebys Cardiovascular Institute in La Jolla, CA

Prebys Cardiovascular Institute, 9888 Genesee Avenue, La Jolla, CA

         SAN DIEGO, CA – McCarthy Building Companies, Inc., the nation’s leading healthcare builder, has completed construction of the new 383,000-square-foot Prebys Cardiovascular Institute and adjacent 26,000-square-foot central energy plant on the Scripps Memorial Hospital La Jolla campus, located at 9888 Genesee Ave. in La Jolla, Calif. 

         As the design-assist general contractor, McCarthy was retained by Scripps Health to perform preconstruction services for the $456 million Prebys Cardiovascular Institute before breaking ground in May 2011.

  HOK Architects was the project architect.  Jacobs Engineering Group Inc. served as the construction management firm on behalf of Scripps.  The health system will begin treating patients at the new facility in mid March.

         “This is an exciting achievement for us,” said Scripps Health Corporate Vice President, Construction and Facilities, Bruce Rainey.  “The new Prebys Cardiovascular Institute reflects the most advanced healthcare design principles together with remarkably high standards of construction.

“  It stands as a model not only for future Scripps facilities, but also for specialized heart care facilities across the country.”

         The Prebys Cardiovascular Institute is the cornerstone of a 25-year master plan unveiled in November 2010 that is transforming the Scripps Memorial Hospital La Jolla campus.

         The new Prebys Cardiovascular Institute will be a destination hospital for cardiac care on the West Coast. The facility will provide cardiovascular patients with the most advanced treatment options available, while also serving as a center for medical research, clinical trials and graduate medical education.

For a complete copy of the company’s news release, please contact:

Bonnie Kutch,
Kutch & Company       McCarthy Building Companies, Inc.
Phone: (619) 299-1010

Susan Garritano,
Phone: (314) 968-3300

Avison Young completes $9.9-million sale of six-building industrial/flex property in Lakewood, WA

Lakewood 512 Business Park, Lakaewood, WA

Dan Vittone
Irvine, CA – Avison Young, the world’s fastest-growing commercial real estate services firm, announced today that it has completed the $9.9-million sale of Lakewood 512 Business Park, a six-building industrial/flex property totaling 136,500 square feet (sf) in Lakewood, WA, a suburb of Tacoma.

Avison Young Principals Dan Vittone and Alan Pekarcik, based in the company’s Orange County office, represented the buyer, Newport Beach, CA-based WLA Investments, Inc.
The seller was SSC Acquisitions, Inc, an entity owned by Public Storage. The property was 83% leased at close of escrow and closed at an 8.13% cap rate.

Built in phases from 1978 to 1981 and located at 10111 South Tacoma Way, the property includes grade-level loading doors, ample parking, office and warehouse space and suites ranging from 2,000 sf to 12,000 sf.

Centrally located, the business park is easily accessible from 32nd Avenue South, South Tacoma Way, SR-512 and I-5, and is minutes from Lakewood Towne Center, which comprises a civic center with a city hall as its centerpiece, a power center, entertainment center and neighborhood center.

Alan Pekarcik
“This is the buyer’s first acquisition in the state of Washington. WLA Investments’ portfolio to date comprises similar industrial product, multi-tenant office buildings and multi-family assets in California, Colorado, Utah, Nevada and Arizona,” comments Vittone.

 “The buyer was drawn to this asset because of the in-place yields, prominent presence on Interstate 5, and the ability to increase yields over time, as current rents are approximately 40% below peak levels.

" WLA intends to invest significant capital into the project and launch an aggressive tenant outreach program in order to lease up the remaining vacant space.” 

For a complete copy of the company’s news release, please contact:

Darcie Giacchetto