Sunday, June 4, 2017

HFF secures $11.5 million acquisition financing for Publix-anchored retail center near Atlanta, GA

Castleberry Southard Retail Center, 5475 Bethelview Road, Cumming, GA

Ed Coco
ATLANTA, GA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured $11.5 million in acquisition financing for Castleberry Southard, a dominant 80,018-square-foot, Publix-anchored neighborhood retail center in the affluent Atlanta submarket of Cumming, Georgia.

HFF worked on behalf of the borrower, New Market – Castleberry, LLC, a wholly-owned subsidiary of New Market Properties, LLC, to place the 10-year, fixed-rate financing with Principal Global Investors. HFF brokered the sale of this property to the borrower in a previously announced transaction.

Located at 5475 Bethelview Road in Cumming, Castleberry Southard is situated at the “main and main” intersection of Castleberry and Bethelview Roads in one of the most affluent and fastest-growing submarkets in the Atlanta area. 

More than 38,000 residents earning an average annual income of more than $110,000 live within a three-mile radius of the center.  Built in 2006, Castleberry Southard is 92 percent leased to a variety of tenants, including Publix, The UPS Store, Subway, H&R Block and Huntington Learning Center.

The HFF debt placement team representing the borrowers was led by senior managing director Ed Coco and associate Matt Casey.

“The acquisition of Castleberry Southard adds another high-quality, market-leading grocery-anchored shopping center to the New Market Properties’ portfolio, and we were pleased to arrange financing to support New Market’s business strategy,” Coco said. 

 “The pace of growth and residential development in the immediate area will only benefit the property and enhance the investment in the years to come.”

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

Kristen M. Murphy
Director, Public Relations
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

PMB and Jacobs Development Company Kick Off Construction on Two-Story Medical Office Building in Riverside, CA

Rendering of Planned Medical Office Building, Riverside, CA

Norman Hames
Riverside, CA— Pacific Medical Buildings (PMB) and Jacobs Development Company have broken ground on a two-story, 27,000-square-foot medical office building in Riverside, Calif.

Once completed at year-end, the building will be 100 percent occupied by RadNet, the leading national provider of freestanding, fixed-site diagnostic imaging services in the U.S.

“RadNet is committed to providing high-quality healthcare that is convenient and accessible. We are pleased to be an integral part of a project that will improve the quality of healthcare to a diverse and growing community,” said Norman Hames, President and COO, RadNet. 

The site unto which the project is located is situated between a DEA building and two historic Victorian homes dating back to 1891. Fourteen Victorian homes were relocated prior to the purchase of the land, which was sold to PMB and Jacobs Development by the City of Riverside.

“The building will provide much needed healthcare services to the area. RadNet is a leader in value-based healthcare delivery, and we are proud to be their healthcare real estate development partner helping them deliver low-cost, high-quality healthcare services to the greater Riverside community. This development is further proof of RadNet and PMB’s continued commitment to care for the Riverside community,” said Ben Rosenfeld, Vice President, Development, PMB.

Ben Rosenfeld
The new building, located in the Prospect Place Historic District at 4500 Olivewood Avenue, is in close proximity to downtown Riverside. 

While the building features concrete tilt-wall construction, the team has worked to seamlessly integrate its clean design into the surrounding community, including a monument wall at the main entry and customized canopy at the entry to provide shade and weather protection for patients and visitors. 

“This community is underserved for efficient and accessible healthcare services. 

"This provided a great opportunity for us to work with RadNet, the City of Riverside and other outstanding community groups and organizations to create a facility that will meet the needs of the surrounding community. We are very excited to create a top-notch facility that will meet the medical needs of the surrounding community,” said Pietro Martinez, Project Manager, Architecture and Construction, PMB.

Ware Malcomb is the architect for the project along with Psomas as civil engineer and Oltmans Construction Company as general contractor. The drought tolerant landscaping is being designed by Community Works Design Group.

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

Jessica Thompson 949-233-8575 /
Laura Mickelson 949-295-4452 /

Real Estate Capital Institute Sees Only Modest Capital Rate Hikes on Horizon

Jeanne Peck

Chicago, IL -- "The Day the Rates Stood Still" would be
the title of a real estate finance sci-fi thriller describing the state of
the capital markets.  Over the past month, numerous trading days resulted in
the same rates as the previous days, a pricing pattern not seen anytime
earlier this year.   The reduced rate volatility indicates the markets
expect relatively modest rate hikes in the next few months. 

In capital markets awash with investment funds, such conditions favor
tightening mortgage spreads as rate-hike fears calm.  The overall flight to
higher quality, safer fundings creates even more pressure to tighten spreads
due to the limited supply of such lending opportunities.  As the domestic
economy keeps humming along at the currently favorable pace, expect
long-term mortgage spreads the investment-grade assets with lower leverage
to reach down toward the 100-basis-point range.

Today's lower debt costs come as tremendous relief to the industry given numerous other issues facing owners.  

For example, in certain pockets of the U.S. rents are difficult to maintain [and increase] within the apartment sector due to the onslaught of new supply.  On the commercial front, disruptive technologies and changing consumer habits place relentless pressure on retail and office properties to integrate bricks-and-mortar with
internet spending habits. 

As was a common theme at the International
Council of Shopping Centers' major RECon 2017 event, it is not a question of
retailers needing to sell via bricks and mortar as opposed to online - the
question is how to optimize using both!  Finally, operating expenses for all
property types are rapidly escalating due to higher labor and material
costs.  In the end, owners must allocate more funds to operating, over and
above debt service.

Ms. Jeanne Peck of The Real Estate Capital Institute, notes, "Steady debt
pricing is welcomed relief for the industry.  Instead of worrying about
rising debt-service costs, owners can allocate more spending on technologies
that improve income while reducing expenses."

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

Jeanne Peck, Executive Director