Saturday, May 19, 2018

HFF announces the $55.25 Million sale and financing of Lehigh Valley power center in Pennsylvania

MacArthur Commons, Lehigh Valley, Pennsylvania 
Photo by John Majoris

Chris Munley

PHILADELPHIA, PA –– Holliday Fenoglio Fowler, L.P. (HFF) announces the $55.25 million sale of and the $50.4 million acquisition financing for MacArthur Commons, a 371,886-square-foot, fully leased, grocery-anchored power center in the Lehigh Valley of Pennsylvania.

The HFF team marketed the property on behalf of the seller.  An affiliate of Abrams Realty & Development purchased the asset free and clear of existing debt. 

 Additionally, working on behalf of the new owner, the HFF team secured a floating-rate acquisition loan.  The buyer was able to obtain long-term lease extensions with the anchor tenants and gained approval to develop several outparcels, thus creating a highly competitive marketing process for the financing.

Jose Cruz
MacArthur Commons is fully leased to GIANT Food Stores along with multiple national anchors, including Burlington, Dick’s Sporting Goods, Big Lots and T.J.Maxx. 

Housed on 47 acres at 2631 MacArthur Road, the center is situated in the “go to” retail destination in the region and is accessible via Route 20 with more than 44,000 vehicles passing per day. 

 The center’s Lehigh Valley location places it approximately 65 miles north of Philadelphia and less than five miles north of Allentown.  More than 93,478 residents earning an average annual household income of $60,731 live within a three-mile radius of the center.

The HFF team representing the seller included managing director Chris Munley, director Michael DiCosimo and senior managing director Jose Cruz.
James Conley

The HFF debt placement team representing the borrower included managing director James Conley.

“Thanks to the HFF team of Chris Munley and James Conley for helping us to understand this fabulous value-add play and in facilitating a great working relationship with both the seller and the lender,” said Peter Abrams, founder of Abrams Realty & Development.  

“This redevelopment play is state of the art in the ever-evolving retail market in which we find ourselves.”

“MacArthur Commons is a top-tier shopping center and location within the Lehigh Valley,” Munley added.  “The offering generated significant interest from private and institutional buyers proving out the value proposition for this property.”

Abrams Realty & Development is a long-established, market-leading, real estate company specializing in commercial real estate in Philadelphia and commercial real estate in New Jersey.

For more information, please contact:

HFF Digital Content/Public Relations Specialist
(713) 852-3420

BKM Capital Partners Announces First Closing of its Second Institutional Fund With $160 Million in Equity Commitments

Nima Taghavi
            NEWPORT BEACH, CA   BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has announced the first close of its second institutional fund, BKM Industrial Value Fund II, L.P., with $135 million in equity commitments as well as $25 million in co-investments.
           The firm also currently has an additional $100 million of soft circled equity commitments from European and U.S. institutional investors. 
            The fund is comprised of a mix of institutional investors including a U.S. College Endowment, U.S. State Pension Fund, a large U.S. Insurance Company, a German Trust, U.S. Fund of Funds, and a Canadian Family Office, according to Nima Taghavi, Chairman of the Board and Co-Founder of BKM Capital Partners.

Brian Malliet
            “Our first institutional fund, which closed in 2016 and is fully invested, has the same strategy as this second fund of acquiring value-add multi-tenant industrial assets throughout major metro markets in the Western U.S.,” says Taghavi.
“Fund I had a target net IRR of 15-percent, but is performing at a 19-percent net fund IRR. Additionally, we recently sold the first three assets in our Fund I, achieving gross IRRs on all three above 37-percent and multiples that ranged from 2.0-2.5.”
            According to BKM’s Co-Founder and CEO, Brian Malliet, the success demonstrated by these returns is a testament to BKM’s niche strategy, execution platform and the growing understanding and demand for light multi-tenant industrial properties across the U.S.
“We have an extremely strong pipeline of value-add investment opportunities, and this $160 million closing allows us to immediately begin deploying capital,” Malliet notes.
“By being strategic in our specific focus and operator execution platform, we will capitalize on the growing demand for properties that serve as ‘last mile’ delivery hubs for retailers and industrial users. This will maximize returns to our investors while we continue to fundraise over the course of the year.”
 For more information, please contact:

Jordan Kruk / Lexi Astfalk
Brower Group
(949) 955-7940