Tuesday, September 13, 2016

HFF arranges joint venture equity for mixed-use residential and hotel development in downtown Austin, TX

Robert Wooten
AUSTIN, TX –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged joint venture equity for the development of Gables Republic Square, a 24-story, Class AA+ mixed-use residential and hotel project in downtown Austin, Texas.

HFF worked exclusively on behalf of the developer, Gables Residential, to arrange joint venture equity for the development of the property through The Carlyle Group.

Due for completion in early 2019, Gables Republic Square will be located at 400 Lavaca Street and will encompass 221 residential units along with a separately-owned, 159-key Hotel ZaZa.  The residential component will have a ground-floor lobby with residential units located on floors 13 through 24. 

Additionally, the Hotel ZaZa lobby, valet, bar and spa will occupy the ground floor while the hotel ballroom, restaurant and swimming pool will be located on floor 7 and guest rooms on floors 8 through 12. 

Floors two through six of the property will be reserved for residential parking, and two levels of subgrade parking will be reserved for the hotel.  Gables Republic Square will be an Austin Energy Green Building (Two Star Level), which is comparable to LEED certification, and features a design inspired by the surrounding historic Warehouse District.

The property’s for-rent homes will offer best-in-class finishes, including granite or quartz counters in kitchens and baths; stainless steel appliances; upgraded cabinetry; in-unit washers and dryers; wood or wood laminate flooring in all living and dining areas; built-in speakers in kitchen and dining area; eight-foot doors; granite thresholds; and balconies.

  Residents will have access to a rooftop amenity area featuring panoramic views of the city as well as a swimming pool, hot tub, outdoor kitchen, fireplace, club room, library and state-of-the-art fitness center. 

 In addition, residents will have access to a music practice room shared with the hotel and limited residential room service provided by Hotel ZaZa.

The HFF debt placement team representing the borrower was led by director Robert Wooten and senior managing director Matt Kafka.

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions.

  Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation.  The Carlyle Group employs more than 1,650 people in 35 offices across six continents.

Web: www.carlyle.com
Videos: http://www.carlyle.com/news-room/corporate-videos_new
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

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

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

HFF arranges sale and financing for Westin Tampa Harbour Island

Westin Tampa Harbour Island Hotel, 725 South Harbour Island Boulevard,
Harbour Island, FL

Daniel C. Peek
TAMPA, FL - – Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of and arranged acquisition financing for the Westin Tampa Harbour Island, a 299-room, full-service hotel located along downtown Tampa’s waterfront on Harbour Island.

HFF marketed the property on behalf of the seller and completed the sale to affiliates of Walton Street Capital, which acquired the 100-percent fee-simple interest in the property. 

HEI Hotels & Resorts will manage the property.  Additionally, on behalf of the new owner, HFF placed the floating-rate acquisition loan with a banking and financial services holding company.

Opened in 1987, the centrally-located hotel features 299 guest rooms, which includes 19 suites. The property’s amenity package contains 17,432 square feet of meeting space, a heated outdoor pool, WestinWORKOUT Fitness Studio and sweeping water views.

 Located at 725 South Harbour Island Boulevard, the hotel is proximate to an abundance of transient and corporate demand generators, which provide a base for healthy year-round operating fundamentals, including downtown Tampa, Amalie Arena, Florida Aquarium, historic Ybor City, the Channel District and numerous museums and sporting venues. 

Alexandra Lalos
Most notable, the hotel is adjacent to the Tampa Convention Center and the planned $2 billion, six million-square-foot, mixed-use office, retail and multi-housing development being executed by Strategic Property Partners.

The HFF investment sales team representing the seller was led by senior managing director and head of HFF’s hotel group Daniel C. Peek and associate directors Preston Reid and Alexandra Lalos.

The HFF debt placement team representing the borrower was led by managing director Michael Weinberg.

“The Westin provides further evidence to the robust investor demand for hospitality assets in the Tampa Bay market,” Peek said.  

“Like several markets in the Southeastern U.S., Tampa’s economic expansion continues to be strong, perhaps best reflected in the performance of the region’s hotel sector over the past 24 months”.

“The Tampa hospitality market continues to attract high-quality institutional interest from groups like Walton Street Capital,” Reid added.  “With relatively muted new supply, a robust convention calendar and marquis events such as the 2017 College Football Playoff National Championship, on the horizon, the market shows little signs of slowing.”

Preston Reid

“This is the third hotel financing we have arranged this year on trophy assets in downtown Tampa and downtown Orlando totaling nearly $175 million,” Weinberg stated. 

“The interest was strong from debt capital providers for all three despite the tightening of hospitality financing that is occurring nationally.”
For a complete copy of the company’s news release, please contact:

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

Faris Lee Investments Completes $2.6 Million Sale of a Freestanding Property Occupied by CVS Pharmacy in Anderson, IN

CVS Pharmacy,  2419 Nichol Avenue, Anderson, IN

Jeff Conover
IRVINE, CA,  Sept. 13, 2016 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $2.6 million sale of a freestanding, 10,125-square-foot, single-tenant retail property NNN-leased to CVS Pharmacy with a drive-thru in Anderson, IN. 

Jeff Conover, senior managing director with Faris Lee Investments, represented the seller, Indiana-based Copper Development. The 1031 exchange buyer, Cuneo Trust from California was represented by Nick Cuneo of Clement Partners. The closing cap rate was 6.4 percent and the price per square foot was $257.

“Although CVS has just two years remaining on its current lease term, it has been at the property for 17 years and has historically generated strong sales,” said Conover. “The buyer saw this as a stable, long-term investment with a national brand retailer in a location that continues to see sales growth.”

Built in 1998 and situated on 1.7 acres at 2419 Nichol Ave., the property is strategically located at the signalized, hard corner intersection of Nichol Ave./State Road 32 and Raible Ave. which see a combined

19,700 vehicles per day. Nearby tenants include Wendy’s, Taco Bell, O’Reilly Auto Parts, AutoZone, the U.S. Post Office and Pizza King. There are more than 68,500 residents and more than 31,300 daytime employees within a 5-mile radius of the property.

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

Darcie Giacchetto
Spaulding Thompson & Associates

Marcus & Millichap Arranges $890,000 Sale of Regent Shoppes South in St. Cloud, FL

Jonathan Gerszberg
ST CLOUD, FL, September 12, 2016 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Regent Shoppes South, a 11,120-square foot retail property located in St Cloud, FL. The asset sold for $890,000.

Jonathan Gerszberg, vice president investments in Marcus & Millichap’s Miami office, along with Ray Turchi and Chris Travis, vice president investment and associate vice president investments in Marcus & Millichap’s Orlando office, had the exclusive listing to market the property.

 The buyer, a private investor, was secured and represented by Nicholas Ledvora and John Graves, senior associate and associate in Marcus & Millichap’s Tampa and Orlando office. 

Regent Shoppes South is located at 3272 Canoe Creek Road in St Cloud, FL.  The subject had direct frontage to a primary area retail road and was shadow-anchored by Winn-Dixie anchored shopping center. At the time of sale, the property was 84 percent occupied with local tenants.

“The excellent retail fundamentals, including signage, visibility, parking, access and frontage were the deciding factors for our client executing the deal. With current income, and a price less than $80 per square foot, our client realized the intrinsic value of the real estate and upside when repositioned.” stated Ledvora. The buyer closed all cash performing within shortened timeframes for inspection and closing within thirty days.

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

Kirk A. Felici
First Vice President/Regional Manager
 Miami, FL
(786) 522-7000

Hanley Investment Group and Lee & Associates Sell Single-Tenant Sonic Drive-In at Record-Breaking Cap Rate Nationwide in $2.6 Million Transaction

Bill Asher
 CORONA DEL MAR, CA – Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, in conjunction with Lee & Associates, announced today that the two firms completed the sale of a single-tenant Sonic Drive-in located at 9505 Magnolia Avenue in Riverside, Calif.

The sale price of $2,555,000 represented a cap rate of 4.70%, a record low for a single-tenant Sonic Drive-In restaurant nationwide.

Hanley Investment Group Executive Vice President Bill Asher, along with Lee & Associates Senior Vice Presidents Jon Friesen and Jeff Stanley, represented the seller, Evergreen – Magnolia & Van Buren NWC, L.L.C. (an entity of Evergreen Devco, Inc. in Glendale, Calif). 

The buyer, a private investor from Los Angeles, was represented by Paul Bahk of Realtex Properties, Inc. in Los Angeles.

Laura Ortiz

Built in 2015, the 3,275-square-foot Sonic Drive-in is situated on a .50-acre parcel at the signalized intersection  of Magnolia Avenue and Van Buren Avenue, one of the highest trafficked intersections in Riverside with average daily traffic counts of 75,000 cars per day. 

Additionally, the building was the winner of the Beautification Award for 2015 by the city of Riverside. 

“The investment featured an outstanding combination of characteristics that led to a record sales price,” said Asher. 

“It was leased to the largest Sonic franchisee in southern California, boasted a new long-term absolute triple-net lease with rental increases every five years and was in an ‘A+’ location in Riverside – a market with over 255,000 people within a five-mile radius.”

“Since opening in November 2015, this particular Sonic Drive-in location was trending to be one of the top performing Sonics in the chain for the franchisee and a top performer nationwide,” said Friesen. “It was an attractive selling point that played a role in obtaining a record low cap rate sale.”

Jon Friesen

According to Asher, “Investor demand for a high performing, well-located single-tenant triple-net leased property is still very strong in today’s market. 

"Buyers continue to pay premiums for these types of properties seeking long-term cash flow, with relatively low risk and little to no maintenance. 

"As investors continue to look for security, we expect that the demand for high quality retail assets will remain strong through 2016.”

Evergreen was founded in Phoenix in 1974 and is a fully-diversified retail and multi-family development company.  Managing partners Bruce Pomeroy, Andrew Skipper and Laura Ortiz oversee the company, which has earned a reputation as an industry leader by delivering high-quality real estate developments.

 Evergreen works throughout the nation, and has offices in Arizona, California and Colorado. The Evergreen team is committed to partnership, value and creative problem-solving, making it one of the most respected real estate companies in the West.

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

Anne Monaghan

Two NAIOP SoCal Members Named Among National 2016 Developing Leaders

Brad Schmitt
 Tustin, CA (Sept. 13, 2016) -- This year NAIOP, the Commercial Real Estate Development Association,  selected 21 exceptional young real estate professionals to receive its 2016 Developing Leaders Award. 

For 2016, two NAIOP SoCal members were named. They are Taylor Arnett, acquisitions manager, CapRock Partners, and Brad Schmitt, associate director, Savills Studley.

The annual award honors up-and-coming professionals under the age of 35 for their exemplary professional accomplishments, strong leadership and community involvement.

“Both Taylor and Brad have consistently demonstrated remarkable leadership for our chapter and an ongoing commitment to building our Young Professionals Group. 

"We are honored that they have been recognized at a national level. It also further demonstrates the strength of our industry here in Southern California,” said Kevin Jennings, market executive-Southern California, Bank of America Merrill Lynch and 2016 NAIOP SoCal President.

Taylor Arnett

“The NAIOP Developing Leader Award is an honor, particularly because of the caliber of Developing Leaders that are members of NAIOP nationally. 

" I personally know some of the past Southern California winners of this award and feel privileged to follow in their footsteps.  I will continue to seek leadership positions in NAIOP as the network and educational opportunities are the best in the business,” Arnett shared.

As acquisitions manager with CapRock Partners, Arnett works to further expand CapRock Partners’ deal pipeline to accommodate the increased deployment of capital within the firm’s existing and new investment funds. 

His experience includes roles with AMC Investments, The Koll Company, and Frazier Capital Valuation. He is a member of the 2008-2009 NAIOP SoCal Young Professionals Group (YPG) class and remains actively involved in the program currently serving as president of the YPG Alumni Committee.
For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
Spaulding Thompson & Associates