Sunday, June 24, 2018

HFF announces the sale of single-tenant retail building in suburban Philadelphia

Marc Mandel
PHILADELPHIA, PA –– Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of a 7,000-square-foot, single-tenant retail building leased to Advance Auto Parts in the Philadelphia-area community of Browns Mills, New Jersey.

The HFF team marketed the property on behalf of the seller, a family trust.  A private investor purchased the asset free and clear of existing financing.

Advance Auto Parts has occupied the property since 2004 and has six years remaining on its lease term.  The building is situated on 1.72 acres at 1 Juliustown Town Road in Browns Mills, a community approximately 35 and 60 miles from downtown Philadelphia and New York City, respectively. 

Steve Schrenk
The property sits just five miles from McGuire Air Force Base/Fort Dix, a major economic driver for the immediate area with more than 3,100 officers, enlisted and civilian personnel from the Air Force, Army and Navy.

The HFF team representing the seller included managing director Marc Mandel and director Steve Schrenk.

HFF and Holliday GP Corp. ("HFF") are licensed New Jersey real estate brokers.

For more information, please contact:

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

ATTOM Data Solutions Finds Home Prices Less Affordable Than Historic Averages In 59 Percent of Local Markets

Daren Blomquist

IRVINE, CA –— ATTOM Data Solutions, curator of the nation’s premier property database, released its Q2 2018 U.S. Home Affordability Report, which shows that the U.S. home prices in the first quarter were at the least affordable level since Q3 2008.

The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average.

Nationwide, the Q2 2018 home affordability index of 95 was down from an index of 102 in the previous quarter and an index of 103 in Q2 2017 to the lowest level since Q3 2008, when the index was 86.

“Slowing home price appreciation in the second quarter was not enough to counteract an 11 percent increase in mortgage rates compared to a year ago, resulting in the worst home affordability we’ve seen in nearly 10 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

 “Meanwhile home price appreciation continued to outpace wage growth, speeding up the affordability treadmill for prospective homebuyers even without the rise in mortgage rates.”

Nationwide the median home price of $245,000 in Q2 2018 was up 4.7 percent from a year, down from 7.4 percent appreciation in the first quarter but still above the average weekly wage growth of 3.3 percent.

 Since bottoming out in Q1 2012, median home prices nationwide have increased 75 percent while average weekly wages have increased 13 percent during the same period.

Annual growth in median home prices outpaced average wage growth in 275 of the 432 counties analyzed in the report (64 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.

Counties with the lowest home affordability indexes in Q2 2018 were Genesee County (Flint), Michigan (70); Denver County, Colorado (72); Adams County (Denver area), Colorado (73); Santa Fe County, New Mexico (73); and Wilson County (Nashville area), Tennessee (75).

Among 40 counties with a population of at least 1 million, those with the lowest home affordability indexes in Q2 2018 were Travis County (Austin), Texas (77); Alameda County (San Francisco area), California (81); Santa Clara County (San Jose), California (82); Oakland County (Detroit area), Michigan (82); and San Francisco County, California (83).

Nationwide an average wage earner would need to spend 31.2 percent of his or her income to buy a median-priced home in Q2 2018, above the historic average of 29.6 percent.

Counties with median home prices requiring the highest share of average wage earner income were Marin County (San Francisco area), California (133.2 percent); Kings County (Brooklyn), New York (123.1 percent); Santa Cruz County, California (121.5 percent); Monterey County (Salinas), California (100.3 percent); and San Francisco County, California (97.2 percent).

Counties with median home prices requiring the lowest share of average wage earner income were Wayne County (Detroit), Michigan (13.5 percent); Clayton County, Georgia (13.7 percent); Rock Island (Quad Cities), Illinois (15.8 percent); Saginaw County, Michigan (16.4 percent); and Richmond County (Augusta), Georgia (16.4 percent).

An average wage earner would not qualify to buy a median-priced home in 326 of the 432 counties (75 percent) analyzed in the report based on a 3 percent down payment and a maximum front-end debt-to-income ratio of 28 percent.

Counties where an average wage earner could not afford to buy a median-priced home in Q2 2018 included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.

 For more information, please contact:

Christine Stricker

Data and Report Licensing:

HFF announces refinancing for Toringdon Office Park in Charlotte, NC

Toringdon Office Park, Charlotte, NC

Travis Anderson
CHARLOTTE, NC –– Holliday Fenoglio Fowler, L.P. (HFF) announces the refinancing of Toringdon Office Park, a six-building, 519,698-square-foot, Class A office park in Charlotte, North Carolina. 

The HFF team worked on behalf of the borrower, Trinity Capital Advisors, to secure the floating-rate loan through Bank of America Merrill Lynch.

  Loan proceeds are refinancing an existing loan for the six-building office park, which HFF arranged in 2015, and funding the development of a seventh building, Toringdon 7, in the same park. 

Toringdon Office Park consists of six properties located at 3420, 3430, 3440, 3426, 3436 and 3530 Toringdon Way directly off Johnston Road in the Ballantyne submarket of Charlotte.  This location, about 10 miles south of Charlotte’s central business district, provides direct access to Interstates 485 and 77 and the Interstate 85 corridor. 

Cory Fowler
 The buildings were constructed between 2001 and 2008, and the park is 95 percent leased overall.  

The park’s largest tenants include Selective Insurance, Crown Castle, Heartland Payment Systems and TIAA-CREF.  Toringdon 7, which is scheduled for completion in December 2019, will feature 198,195 square feet. 

HFF’s debt placement team representing the borrower consisted of senior managing director Travis Anderson and senior director Cory Fowler.

 For more information, please contact:

HFF Director, Public Relations
(617) 338-0990

Marley Overman of Illustrated Properties' Overman Team selected to market 5.27-acre Wellington, FL site for show jumper McLain Ward

Marley Overman
WELLINGTON, FL  – Illustrated Properties, a member of The Keyes Family of Companies, has announced the exclusive listing of a two-property site in Wellington on behalf of two-time Olympic gold medalist McLain Ward.
Marley Overman of Illustrated’s Wellington-based Overman Team is the listing agent.
Ward, an international show jumper who earned his gold medals in the 2004 Athens and 2008 Beijing Olympic Games, is listing the 2169 Appaloosa Trail site for $5.7 million. He is the current top-ranked competitor in the U.S. Equestrian Federation (USEF) standings and No. 2 in the International Federation for Equestrian Sports (FEI).
The 5.27-acre site includes a four-bedroom, three-bathroom residence that was completely remodeled in 2015 with brand-new hurricane impact doors and windows, bathrooms and kitchen. It includes a heated salt water pool with a slide.
Ward meticulously designed the 275’ x 215’ grass riding field, which features three liverpools – portable pools to practice jumping – and a built-in water jump. The site also includes a barn with 13 stalls, three wash/grooming stalls and a paved storage area, and a second barn with eight stalls, a tack room and two wash/grooming stalls.
McLain Ward Has Ridden Rothschild Since 2007
The site is located within hacking – or riding – distance of Wellington’s Winter Equestrian Festival. It serves as the winter home of Ward’s top horses, including HH Azur, Clinta and Rothchild.
“It is an honor to bring this one-of-a-kind property to the market,” said Overman, a former top-ranked equestrian competitor who grew up in Palm Beach. “McLain Ward is the best of the best when it comes to show jumping, so this listing is ideal for any competitors who seek to emulate the best practices of a distinguished champion.”
Overman has a longstanding relationship with Ward and has represented him in other transactions. She is also exclusively listing Windsome Farms, an 80-acre equestrian site in Wellington, on behalf of a different client for $25 million.
“This listing is another example of how Marley and her team are the go-to agents for prime Wellington properties,” said Mike Pappas, CEO of Illustrated. “She is uniquely suited to showcase this stunning equestrian site.”

Mike Pappas
In July 2016, Keyes and Illustrated Properties announced the completion of a merger between the two companies, which continue to operate under their existing brands. Overall, Keyes and Illustrated generate more than $6 billion in annual revenue from their real estate service lines.
Following the merger, Keyes and Illustrated are, together, the largest independently-owned real estate firm in Florida and a Top 30-ranked firm in the entire United States.

 In Palm Beach County alone, the companies have in excess of 1,100 Sales Associates and produce double the sales volume of their closest competitor.

 For more information, please contact:

Eric Kalis
Account Director, BoardroomPR
Bank of America Plaza | 1776 N Pine Island Road

Hanley Investment Group Completes Sale of Two-Tenant Retail Property in Los Angeles County for $6.4 Million

Two-tenant retail building occupied by Ross Dress For Less (dba dd’s Discounts) and Stars Gymnastics at 404-410 North Azusa Avenue in Covina, CA
COVINA, 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 Ross Dress For Less (dba dd’s Discounts) and Stars Gymnastics at 404-410 N. Azusa Avenue in Covina, California.
Ed Hanley
The 39,159-square-foot building is part of the Covina Shopping Center, a community shopping center situated at the intersection of N. Azusa Avenue and W. San Bernardino Road.
The shopping center includes other notable tenants Smart & Final Extra! and CVS/Pharmacy. The sale price for the two-tenant net-leased investment was $6.36 million.

Hanley Investment Group's Executive Vice President Bill Asher and President Ed Hanley, along with Vice President Jeff Lefko, represented the seller, a family partnership based in Orange County, California.
The buyer, Cecelia, LLC from Los Angeles, was represented by Moon Lim of Marcus & Millichap in Los Angeles, Calif. 
The two-tenant inline building, which was built in 1979, sits on 3.83 acres and features a 27,359-square-foot dd's Discounts and an 11,800-square-foot Star Gymnastics.

dd's Discounts has been a tenant in the building since 2005. Star Gymnastics, which has been in business for nearly 25 years in the area, relocated to Covina Shopping Center in 2017.

Bill Asher
 The property is in the heart of the San Gabriel Valley, approximately 1.5 miles from Interstate 10 (218,000 cars per day), and easily accessible from the Interstate 210, Interstate 605, and State Route 57 freeways.

“We generated an incredible volume of interest due to the property being in Los Angeles County and more specifically the San Gabriel Valley,” said Asher.

 “The property was an attractive investment due to its dense infill location with over 470,000 people located in a five-mile radius and close proximity to four major freeways -  Interstates 10, 210, 605, and State Route 57 freeways.

"The supply of quality retail assets that come up for sale in the San Gabriel Valley submarket is limited from year to year. When they become available, they are followed by a tremendous amount of demand, multiple offers, and top-level pricing.”

Asher notes Ross is a Fortune 500 company and the largest off-price apparel and home fashion chain in the United States with 1,409 locations in 37 states, the District of Columbia, and Guam.

The company also operates 213 dd’s DISCOUNTS® in 16 states. Ross (including dd’s discounts) recently opened 92 stores for a total of 1,627 locations in the US. The goal for Ross is to reach 2,500 total stores in the future, Asher says.

“The investment being anchored by dd’s Discounts, a tenant at the property for the past 13 years with a corporate guaranty from parent company Ross Stores, Inc., was another significant driver to the high level of interest in the property,” Asher said.

Jeff Lefko
“In a time where we continue to see more big-box retail store closures, Ross is a tenant that is thriving and looked upon very favorably by retail investors in today’s market.”

Asher continues, "It continues to be a challenge in today's market for investors to find quality, stabilized retail investments in ‘A’ locations to purchase in Los Angeles County.

"We expect that the market for single-tenant and two-tenant assets in quality locations, especially those leased to name brand tenants that are internet-resistant and have long-term leases, will remain strong in Southern California throughout 2018.”

 For more information, please contact:
 Anne Monaghan

HFF announces $42M refinancing for mixed-use development in downtown Napa, CA

First Street Napa Office-Retail Complex, Downtown Napa, CA

Peter Smyslowski

SAN FRANCISCO, CA –– HFF announces the $42 million refinancing of First Street Napa, a 142,026-square-foot, mixed-use retail and creative office property spanning three blocks in downtown Napa, California.

The HFF team worked on behalf of the borrower, Zapolski Real Estate, LLC and Trademark Property Company to secure the floating-rate loan through ACORE Capital, LP. 

 Loan proceeds will be used to pay off the development construction loan and provide an unfunded facility to complete the lease up of the remaining tenant suites.

The property is part of a newly constructed 325,000-square-foot, Class A, mixed-use development that comprises 45 high-end retail shops, new state-of-the-art creative office space and a 183-room, boutique Archer Hotel, which was not a part of the financing.  

Bercut Smith
Centrally located in Downtown Napa, the property is within walking distance of hotels, restaurants, wine tasting rooms and entertainment venues and it covers three city blocks along First Street, the major vehicular artery into Downtown Napa, the gateway to Napa Valley. 

 First Street Napa offers a blend of regional, national and international retail that the market demands, elevating Napa from first-class to world-class.

The HFF debt placement team representing the borrower included senior managing director Peter Smyslowski and associate Bercut Smith.

“Though lenders continue to underwrite retail opportunities very selectively, the interest to provide the takeout financing was tremendous and it is a testament to the development team’s vision,” Smyslowski said.

Kyle Jeffers
“We are thrilled to be lending to two high quality sponsors on an innovative retail project that will further transform the area,” said Kyle Jeffers, managing director at ACORE.

Holliday GP Corp. ("HFF"), California Bureau of Real Estate License #01385740.       

 For more information, please contact:

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