Wednesday, May 9, 2018

RECI Notes 3% Bench Treasury Big News This Spring

John Oharenko
Chicago, IL -- Last witnessed four years ago, the 3%
benchmark treasury is the biggest news this spring. Lenders and borrowers
alike are adjusting yield requirements, as the Fed expects at least a couple
of rate hikes to stay within the goal of managing inflation in light of a
strong economy. Since pricing is still very competitive even at higher
levels, other trends take center stage, including:

Too Much Money Chasing Too Few Goods: A large variety of lenders leave
little elbow room for profitable returns. For instance, debt-fund pricing terms now comparable to major banks offerings last year, with mortgage spreads compressing 200 basis points or more. Lenders pick their spots with smaller banks locally capturing borrowers by offering flexibility and leverage. Life companies, banks and conduits are promoting more "one-stop" capital stack solutions including pairing mezzanine financing with
conventional senior debt. Agencies overwhelmingly dominate multifamily
lending with higher leverage loans featuring favorable pricing and
supplemental financing optionality. It's a downward race to the yield

Blurred Investment Strategies: Core, core-plus, value-add and opportunistic
investments are more difficult to segregate. Fund managers struggle with
tightened returns between various classes, as overall returns narrowed by at
least 300 basis points on the higher end of the risk spectrum. Some of the
highest yielding deals are now priced in the mid-teen yield range.
Meanwhile, core and core-plus yields trade in the middle-to-higher
single-digit range, with minimal room to move downward.
New Construction Deals in Demand: Since existing institutional-quality
assets provide minimal returns, investors seek new-construction
opportunities, especially for projects under way. Rising construction costs
restrict more development supply. Even as new construction cranes crowd
urban skylines with apartment buildings, concerns are muted as jobs follow
talent to center business districts at a record pace. Also, spec industrial
properties briskly sell, often at prices reflecting twenty percent or more
premiums over replacement costs.

Mr. John Oharenko, the Real Estate Capital Institute's(r) director,
suggests, "The party is over for extremely-low borrowing costs. However,
permanent [long-term] rates priced comfortably below six percent are still a
historical bargain this generation."

The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields. The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR.

For more information, please contact:

Jeanne Peck, Executive Director /

The Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624

NAI Realvest Negotiates $6 Million Sale at Baer's Plaza in Casselberry, FL

Drew Saphos

Casselberry, FL -- NAI Realvest has closed on the $6,000,000 retail sale of 64,000 square feet comprising the northern one-third of Baer’s Plaza, 1006 SR 436 in Casselberry north of Orlando. 

NAI Realvest Associate Drew Saphos, CCIM, brokered the transaction on behalf of Seller JAB Shopping Center II, LLC, the Pompano Beach-based holding company for Baer’s Furniture.    Boca Raton-based Greater Marketplace Acquisition LLC is the buyer.

In early 2015, Saphos at NAI Realvest represented Baer’s Furniture in the acquisition of the 30-year old, 154,000 square foot plaza – known then as Greater Marketplace – for $7,175,000, and Baer’s moved into the center to anchor it with a 50,000 square foot furniture store.

In February 2017, Saphos represented the Baer’s holding company, JAB Shopping Center II LLC, in a sale of the southern one-third of the property comprising 39,712 square feet at 112 Sausalito Blvd.  Buyer Pyensa, LLC, based in Hialeah, paid $3,190,000 for that portion of the retail center.

Baer's Plaza, Casselberry, FL
“This $6,000,000 sale of the northern third of Baer’s Plaza provides Baer’s with a free and clear anchor store at a high-profile retail center and over $2,000,000 in profit in three years,” Saphos explained.

Other major and long-time tenants at Baer’s Plaza include Bank of America, Verizon, Planet Fitness, Colorado Fondue Company and Seminole County Health Department. Crunch Fitness plans to join the northern third of the center later in 2018.

For more information, please contact:

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. 407-644-4142

Lincoln Property Co. Negotiates $263,000 Sale of Industrial Condo to Advanced Cabling Solutions at Anchor Road Commerce Center in Casselberry, FL

Sean Dupree
Casselberry, FL and   Orlando, FL  – Lincoln Property Co. Southeasta full service commercial real estate firm based in Orlando, recently closed the $263,000 sale of an industrial condo at 201 Reese Way in the Anchor Road Commerce Center in Casselberry. 

Sean DuPree, CCIM, broker at Lincoln Property Company, negotiated the sale on behalf of the seller KC Family Trust of Longwood.  Buyer Advanced Cabling Solutions, Inc. purchased unit 1401 with 2,750 square feet and doubled its footprint at the business park. 

Advanced Cabling is a fiber optics communications and traffic signal company servicing government and private industries.  The company also owns 1431 another 2,750 square foot unit at Anchor Road Commerce Center.

Anchor Road Commerce Center was built in 2006.

For more information,  please contact:

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. 407-644-4142

Marshall Hotels & Resorts Takes Over Management of Hotel Indigo in Birmingham, AL

Hotel Indigo, Birmingham, AL

BIRMINGHAM, AL,  May 9, 2018—Marshall Hotels & Resorts, a leading hotel management and services company that operates properties nationwide, today announced that it has taken over management of the 63-room Hotel Indigo in Birmingham, Ala.  The former Hotel Highland Downtown, originally built as a medical arts building in 1931, marks the company’s first entry into Alabama.
“The Hotel Indigo represents our ideal portfolio addition—a unique hotel in a strong secondary market that can benefit from either capital improvements and/or improved management,” said Mike Marshall, president and CEO, Marshall Hotels & Resorts.

Mike Marshall
“This beautifully designed building, with its Art Deco flourishes, has acted as everything from an apothecary to a dance hall.  While it has served as a hotel for the past three decades, the property had seen better days.  With its recent $5.0 million conversion to IHG’s Hotel Indigo brand, the property is now better positioned to take full advantage of its market presence.”
The Hotel Indigo is located in the Five Points area, Birmingham’s arts, entertainment and dining district, near UAB Hospital and UAB Campus, with easy access to Birmingham Jefferson Civic Center and Vulcan Park.  Contemporary, spacious guest rooms feature plush lounge chairs, 49” HDTVs, high-speed internet access and oversized work spaces.  The hotel’s 28 suites also include a relaxing sitting area with wet bar, Keurig coffee machine and mini-refrigerator in the living room. 

Birmingham Jefferson Civic Center
Additional hotel amenities include Aveda bath products, spa-like showers, fitness center, valet parking and luxury linens.  Guests can unwind with specialty cocktails and smoke infused whiskeys at the hotel’s Rx Lounge, themed with the building’s medical arts origins in mind.  The menu features myriad “ale-ments, anti-oxidants and effervescents” that include numerous, local craft beers, wines and champagnes/proseccos.  The Rx Lounge provides full breakfast, lunch and dinner menus, as well.
“Particularly with our growing regional sales presence in the greater Atlanta, this is a very attractive project for us,” Marshall added.  “This is a premier, ‘like-new’ hotel in strong location, and we are confident it quickly will regain its place as the rightful market leader.”

Additional information may be found at the company's Web site:

 For more information, please contact:

620 Herndon Parkway, Suite 115 | Herndon, VA 20170
Main: 703-435-6293
Mobile: 703-864-5553