Tuesday, June 27, 2017

George Smith Partners Secures $26.5 Million in Financing for Gershwin Apartments and Adjacent Multifamily Community in Hollywood, CA

Gershwin Apartments, Hollywood Boulevard, Hollywood, CA

LOS ANGELES, CA (June 27, 2017) – Commercial real estate investment banking firm George Smith Partners has successfully secured $26.5 million in refinancing for Gershwin Apartments, a 163-unit apartment community with 10,500 square feet of ground-floor retail space, along with acquisition financing for an adjacent nine-unit multifamily asset located in Hollywood, California.

The financing was arranged by George Smith Partners’ Managing Director Shahin Yazdi.

Shahin Yazdi
“East Hollywood is the next up-and-coming neighborhood in Los Angeles,” says Yazdi. “The submarket’s central location, diverse array of cultural icons and entertainment venues, and explosive growth are driving an influx of residents and investment capital to this region, making it poised for tremendous revitalization and ongoing urbanization.”

Located on Hollywood Boulevard, the Gershwin Apartments was acquired by Massie Capital and Glenn & Shannon Dellimore in 2015.

 George Smith Partners arranged a competitive loan for that acquisition at a time when east Hollywood was just beginning to emerge as the next growth area of Los Angeles.

Two years later, after successfully executing the first phase of its renovation plan and exceeding its NOI expectations, the Sponsor requested another loan to refinance the existing loan and complete Phase II of the renovation, while simultaneously purchasing an adjacent multifamily property, bringing the property’s total unit count to 172.

Gershwin Apartments is located at 5533 Hollywood Boulevard, and Gershwin Villas is located at 1714 Garfield Place in Los Angeles, California.

“By merging the two assets, the Sponsor will be able to manage the two parcels as one, resulting in strong investment potential and opportunities for deep value creation,” explains Yazdi. “This investment strategy enables the sponsor to expand its presence as a multifamily owner in the region while leveraging existing demand for urban living in the east Hollywood submarket.”
The Sponsor will also reposition and rebrand the nine-unit multifamily asset as the Gershwin Bungalows, which will feature private patios and share the same resort-style amenities offered at The Gershwin Apartments.
Brian Massie
Brian Massie, Founder of Massie Capital, asserts that his team immediately recognized the value in this expansion opportunity.

“Gershwin Apartments is a unique asset with historic value and deep ties to the local community,” notes Massie. 

“This 1920s art deco building was formerly a hotel and was later redeveloped into an apartment community in 2013 by the previous owner, CIM Group. 

"We plan to further redevelop this property into a luxury apartment community with shared common areas and high-tech features, while also preserving the integrity of its Hollywood charm and historic character.”

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

Miki (Conant) Akil / Katie Kea
Brower, Miller & Cole
(949) 955-7940

Rhodes+Brito Architects Earn Contract to Design Volusia County Schools’ First New Elementary in Years

Ruffin Rhodes

New Smyrna Beach, FL and Orlando, FL --- Rhodes+Brito Architects in Orlando was selected to design a brand new Chisholm Elementary, replacing the original building erected in the 1940s on Ronnoc Lane off of Wayne Ave. and Hwy. A1A in New Smyrna Beach. 

Ruffin Rhodes, co-founder and partner at Rhodes+Brito Architects, said his firm is currently underway with the planning and design of the new 85,000 square foot school to accommodate 750 students, implementing 21st century design concepts that enhance the learning experience and student interaction.

The extra one-half cent sales tax in Volusia County finally raised enough funds to cover the much needed project that will revitalize the entire neighborhood of this historic Westside District of New Smyrna Beach, according to Rhodes.

The design phase will be completed by May of 2018 and construction, at an estimated cost of $17 million, will get underway in June of next year.    

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

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. Lvershelco@aol.com

Lincoln Property Co negotiates Leases at Airport Business Center in Orlando, FL for more than 6,391 Square Feet of Office / Flex Space

Sean Dupree
ORLANDO, Fla. – Lincoln Property Company Southeast, a full service commercial real estate firm based in Orlando, recently completed two new and one renewal lease for 6,391 rentable square feet at Airport Business Center, 5730-5892 S. Semoran Blvd. in Orlando.

Sean DuPree, Broker at Lincoln Property, negotiated the transactions on behalf of the Landlord Ros-Orlando Airport 371 LLC. 

Menzie’s Aviation, Inc, (www.menziesaviation.com) a global company providing outsourced airport services leased Suite 5842 with 3,500 square feet;

Green Mile, LLC. (www.greenmile.com) a logistics and route management software company,  leased Suite 5736 with 2,191 square feet; and

Excelsior Defense (www.excelsiordefense.com), a provider of uniformed security officers for government entities and private enterprises, renewed their lease of Suite 5840A with 768 square feet.  

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

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. Lvershelco@aol.com


Marcus & Millichap Arranges $4.85 Million Sale of Applebee’s Site in Fort Myers FL

James Medefind

FORT MYERS, FLORIDA, June 27, 2017 – 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 Applebee's, a 4,942-square foot net-leased property located in Fort Myers, Florida, according to Ari Ravi, regional manager of the firm’s Tampa office. The asset sold for $4,852,000.

James Medefind and Jim Shiebler, investment specialists in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a private investor. 

The trophy location, 1.33 acre parcel, massive traffic count of over 79,000 cars per day and the fact that the restaurant is operated by a regional powerhouse franchisee were the rare attributes that this Applebee’s location possessed. 

“We accessed and leveraged Marcus and Millichap’s platform of the nation’s largest buyer pool and paired it with our knowledge of the local Southwest Florida market,” says Shiebler.

“The buyer, a private investor from Connecticut, was also secured and represented by our investment team member, James Weldon. He was attracted to the investment because he recognized that this restaurant property is uniquely positioned in a very affluent area in one of the densest retail corridors in all of Southwest Florida,”

Applebee's is located at 8043 Dani Drive in Fort Myers, Florida. The property was built to suit for Applebee’s in 2005, recently went through a $450,000 modernization plan and had over 15 years remaining on its lease. The area is also one of the fastest growing areas in the country and was voted Top 10 Hottest Real Estate Markets to Watch in 2017 by Forbes Magazine.

For a complete copy of the company’s news release, please contact:
Ari Ravi
Regional Manager, Tampa
(813) 387-4700

Gelt, Inc. Acquires 472-Unit Mountain Run Apartments in Albuquerque, NM

Keith Wasserman
Los Angeles, CA - Marking the firm's foray into New Mexico, Gelt Inc., a Los Angeles-based real estate investment and asset management firm, has acquired Mountain Run Apartments, a 472-unit community in Albuquerque. The seller was Chartwell Capital Partners.

"With this acquisition, Gelt has acquired more than 6,000 units valued at $940 million and we are pleased to have entered a new market with this buy. We now have a portfolio that spans eight Western states," said Keith Wasserman, partner with Gelt.

 "Albuquerque has shown consistent multifamily fundamentals for many years, mainly due to a lack of new supply. While other major cities saw significant rent declines in the last recession, Albuquerque remained stable, and we like that story."

Jeff Harris, COO with Gelt, added: "We are seeking cash-flowing, stable investments for the long term, and the supply-constrained Albuquerque multifamily market is conducive to that strategy.  Our goal is to own and operate at least 1,000 units here over the next 18 months."

Built in 1985, the community offers a tranquil, park-like setting on nearly 16 acres of land and is located at 5800 Eubank Blvd. NE. It includes 312 one-bedroom units and 160 two-bedroom units within 35 two- and three-story buildings.

Jeff Harris
In 2012 a major renovation occurred and included unit enhancements such as the addition of stainless steel appliances, granite counter tops in some units, custom maple cabinetry, washer/dryers in every unit, upgraded lighting, and faux wood flooring in kitchens and dining areas.

 On-site amenities include a heated swimming pool, business center, indoor spa, fitness center, basketball courts, movie theater, and resident lounge.

In order to further enhance the value and appeal of the property, Gelt will renovate the leasing office, clubhouse and fitness center, as well as conduct upgrades to the sport court, and add barbecue/gazebo areas and a bike room.

Mountain Run is located in the highly coveted Far Northeast Heights market of Albuquerque.  The region boasts a highly-rated school district, and proximity to major employment corridors.  Additionally, the area is extremely supply constrained which is driving tremendous multifamily fundamentals. 

The asset is immediately adjacent to Mountain Run Shopping Center, which has a Smith's Grocery Store, a Walgreens, Wells Fargo banking center, and a U.S. Postal Service branch, amongst others.  The community is also located across the street from Academy Hills Park, which is a recently renovated 13.4-acre park adding a convenient amenity for Mountain Run's residents.

David Eagle, Billy Eagle and Ryan Mills of CBRE represented both the buyer and the seller in the transaction. Brian Eisendrath, Brandon Smith and Cameron Chalfant of CBRE represented Gelt in originating the financing.

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

Darcie Giacchetto
D.G. Communications, Inc.

Electra America Acquires 300-Unit Community in Raleigh, NC

The Flats on 401 Apartments, 5721 Goodstone Drive, Raleigh, NC
                                                                                                                      (Photo by Clear Sky)

Jeff Glenn
RALEIGH, NC – Electra America, one of the fastest-growing multifamily owner-operators in the Southeastern U.S., has acquired a 300-unit apartment community in Raleigh, NC.

Completed in 2015, the asset, currently known as The Flats on 401, will be rebranded as Level at 401, and enhanced with a variety of new features and amenities catering to Raleigh renters.

With this acquisition, Electra America now owns five garden-style multifamily communities in the Raleigh area, totaling over 1,500 units. This is the company’s second North Carolina acquisition this year – it recently acquired a property in Charlotte. Nationally, Robbins Electra’s portfolio includes more than 23,000 apartment units totaling over $2.5 billion in value.

Justin Good
 HFF marketed the property for the sellers, a local partnership. The HFF investment sales team was led by managing directors Jeff Glenn and Justin Good, and director Allan Lynch. Through their skills, the transaction was privately negotiated and closed in a transaction beneficial to both buyer and seller.

“Apartment demand in Raleigh is strong thanks to job and population growth,” said Joe Lubeck, CEO of Electra America. “Our pet-friendly, reasonably priced apartment communities cater to working professionals - police officers, nurses, and office workers. 

"By modernizing these properties, and providing outstanding customer service, I believe we are serving a niche in the market where demand definitely outstrips supply.”  

Located at 5721 Goodstone Drive, Level at 401 includes studio, one- and two-bedroom apartments in three separate four-story buildings. Apartments feature 9-foot ceilings, balconies, and a washer and dryer in each unit. The pet-friendly community offers resort-style amenities including a swimming pool, clubhouse, fitness center, professional area, spin room, outdoor fireplace and cabana area, and secluded courtyard gardens. 
Allan Lynch

Electra America will carry out a $1.5 million upgrade to apartment units and common areas, including installing granite countertops in each unit, adding plank flooring in common areas, and executing a remodel of the clubhouse, fitness center and pool deck area.

For more information on the Level at 401 acquisition or Electra America, please visit Electra America.com.

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

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

Hanley Investment Group Completes Sale of Brand New Two-Tenant Retail Property in La Quinta, CA for $8.86 Million

Washington Park Shopping Center Retail Building, 78-825 Highway 111, La Quinta, CA

Bill Asher
LA QUINTA, CA - Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm completed the sale of a two-tenant retail building occupied by T.J. Maxx and ULTA Beauty at 78-825 Highway 111 in La Quinta, Calif.

The 33,708-square-foot pad building is part of Washington Park Shopping Center, which includes major tenants Target, Lowe’s, Trader Joe’s, ALDI, Stein Mart and Century Theatres. The sale price was $8,862,500.

Hanley Investment Group's Executive Vice President Bill Asher and company President Ed Hanley represented the seller, a private partnership based in Southern California. The buyer, a private investor from Los Angeles, was represented by Steven Gelber of Gelber Realty Corporation in Los Angeles.

Ed Hanley
Remodeled in 2016, the building is situated on 3.61 acres within the Washington Park Shopping Center at the signalized intersection of Highway 111 and Simon Drive and immediately surrounded by notable retailers ALDI, Chase Bank, Lowe’s and In-N-Out. T.J. Maxx and ULTA Beauty featured two new corporate-backed long-term leases.

Asher said that there was no shortage of interest in the property due to its location, quality of tenants and long-term leases.

 “We generated multiple qualified offers and ultimately proceeded with an all-cash 1031 exchange buyer based in Southern California who owned other similar assets in their portfolio,” said Asher. “We negotiated a one-week contingency period with a 30-day closing.”

Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.

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

Anne Monaghan