Friday, May 3, 2019

Forty-acre land purchase paves way for new 101 Logistics Park in Avondale, AZ

Rendering of planned 101 Logistics Park, Avondale, AZ

PHOENIX, AZ – The Phoenix office JLL has completed a 40-acre land purchase that paves the way for 101 Logistics Park, a new two-building, Class A industrial regional distribution center being developed in Avondale, Arizona by Seefried Industrial Properties and Crow Holdings Capital Real Estate.

Marc Hertzberg
JLL Managing Directors Marc Hertzberg and Anthony Lydon, and Vice President Riley Gilbert represented the developers in the land transaction and have been named as the exclusive leasing brokers for 101 Logistics Park.

“The West Valley industrial market is absorbing space at a rapid pace, and that creates an ongoing need for new space solutions,” said Hertzberg. “The 101 Logistics Park checks all of the boxes for this space and the large quantity of tenants looking to expand or relocate, including many mid-bay users.”

Anthony Lydon
According to JLL’s Q1 Phoenix Industrial Report, the Valley continues to experience positive fundamentals and record delivery, but currently lacks new product in the mid-bay sector of 50,000 to 200,000 square feet.

In the past 18 months, this sector has recorded more than 5 million square feet of gross leasing activity.

Riley Gilbert
“With the rising demand of industrial and e-commerce related uses as well as the strong population growth in the Southwest Valley, 101 Logistics Park has been designed to accommodate the demands of these users and is strategically located to service both the current and future population base,” said Seefried Industrial Properties Senior Vice President Robert Guerena.

“Our partner, Crow Holdings Capital Real Estate, recognized the same and we are excited to be working on another venture with them.”

Located at the southwest corner of 101st Avenue and Roosevelt Street, 101 Logistics Park will total 652,146 square feet in two buildings, the first 240,844 square feet and the second 411,302 square feet.

Robert Guerena
Together the project can accommodate multiple industrial users needing space from 40,000 to 411,302 square feet.

Buildings at 101 Logistics Park will feature 32- to 36-foot clear heights, generous full concrete truck courts and a total of 155 dock high doors, 12 grade level doors, 534 auto parking stalls and 107 trailer parking stalls on a secure fenced site.

 It will have eight points of ingress and egress and is minutes from the Interstate 10/Loop 101 stack, offering proximity to a population of two million within a 30-minute drive.

The 101 Logistics Park is slated for completion during the first quarter of 2020. 


Stacey Hershauer
Phone: +1 480 600 0195

Arbor Realty Trust Inc. Roundup of New Funding Deals

Greg Gillam
Arbor Funds $19 Million Fannie Mae® Streamlined Rate Lock Deal in West Covina, CA
UNIONDALE, NY– Arbor Realty Trust, Inc. (NYSE:ABR), a leading multifamily and commercial mortgage lender, recently funded a Fannie Mae® Streamlined Rate Lock (SRL) deal in West Covina, CA.

Tuscany Villas, a 166-unit garden style apartment building, received $19M in refinance funding through the program. The loan includes a 10 year, fixed-rate term on a 30-year amortization schedule.

Greg Gillam of Arbor’s Manhattan Beach office originated the loan.

“The borrower has owned this workforce housing property for over 10 years,” Gillam said. “Due to the extensive improvements that were made, Arbor was able to refinance the existing Fannie Mae loan and provide a cash-out option.

"Additionally, the SRL product allowed the borrower to lock the interest rate early in the loan process.”

Tuscany Villas, West Covina, CA

Built in 1966 and recently renovated, this luxurious Tuscan-style community offers studio and one-bedroom apartments with upgraded interiors including hardwood flooring, custom cabinets and stunning granite counter tops.

With breathtaking views of the California Mountains, Tuscany Villas offer resort-style landscaping, two community pools, charcoal grilling and a fitness center.

Michael Jehle
Arbor Funds $4 Million Freddie Mac SBL Deal in Detroit, MI

UNIONDALE, NY -- Arbor Realty Trust, Inc. (NYSE:ABR) a leading multifamily and commercial mortgage lender, recently funded a Freddie Mac SBL deal in Detroit, MI.

Van Dyke Apartments, a 40-unit multifamily property, received $4M in refinance funding through the program. The loan features a 20-year hybrid term with three years of interest only on a 30-year amortization schedule.

 Michael Jehle of Arbor’s Oklahoma office originated the loan.
 “This is the fifth SBL loan the borrower has done with Arbor over the last four years,” Jehle said. “His formula has been the same on each deal – buy an old and tired property, renovate it completely with modern amenities and refinance.

"This process is proven and highly successful, primarily because of the strong construction and management capabilities of the borrower.”

Van Dyke Apartments, Detroit, MI
 Built in 1928 and renovated in 2018, Van Dyke Apartments combines classic 1920s architecture with modern living and amenities. Units have been renovated to include stainless steel appliances, granite countertops, electric fireplaces and European glass door showers equipped with double heads and a rainfall feature.

The property includes an on-site laundry facility, with the option for in-unit washer/dryer hookups.

Austin Walker
Arbor Closes $6.2 Million in Fannie Mae Small Loans

UNIONDALE, NY – Arbor Realty Trust, Inc. (NYSE:ABR), a leading multifamily and commercial mortgage lender, funded the following Fannie Mae loans totaling $6.2M in Texas, Oklahoma, and Arizona:

A&M Courtyard Apartments, Bryan, TX

A&M Courtyard, Bryan, TX: This 32-unit student housing property received $1.1M in acquisition funding through the Fannie Mae DUS® Small Loan program. The loan provides a 10 year, fixed-rate term on a 30-year amortization schedule. A&M Courtyard provides housing for nearby Texas A&M University students, and features a swimming pool with deck, covered walkways and beautiful landscaping.

Raleigh Square Apartments, Oklahoma City, OK

Raleigh Square Apartments, Oklahoma City, OK: This 105-unit multifamily property received $2.2M in acquisition funding through the Fannie Mae ARM 7-6™ loan program. The loan provides a 7-year term with an adjustable rate on a 30-year amortization schedule. Raleigh Square Apartments are conveniently located near Will Rogers World Airport and offer a wide selection of features and amenities including a community picnic area, pool, playground, on-site parking and laundry facilities.

Timberline Mobile Home Park, Show Low, AZ

 Timberline Mobile Home Park, Show Low, AZ: This 128-unit multifamily property received $2.8M in acquisition funding through the Fannie Mae DUS® loan program. 

The loan provides a 12 year, fixed-rate term with two years of interest only on a 30-year amortization schedule. Timberline Mobile Home Park is a mix of 89 mobile home sites, 38 RV sites and one apartment unit. 

The site includes a storage building, clubhouse with community kitchen, laundry room, banquet hall, library and RV/boat storage area.

 Austin Walker of Arbor’s New York City office originated the loans.

 “These transactions aren’t just numbers on a page, they reflect the strong relationship Arbor and FNMA share,” said Walker. “Each transaction was custom tailored through a variety of waivers to address the borrowers’ unique needs. Arbor is able to deliver financing solutions for every type of property – whether it’s a standard multifamily property, student housing complex, mobile home park or beyond!”


Bina Handa
Tel: 516.506.4229

Real Estate Capital Institute finds a capital markets shift is occurring in types of lenders, particularly in the multifamily sector

John Oharenko
Chicago, IL – Real Estate Capital Institute finds another month of relatively steady capital markets activity.  For the most part, mortgage pricing remains unchanged, but a shift is occurring in types of lenders, particularly in the multifamily sector.  

According to John Oharenko, director of the Real Estate Capital Institute®, "Most investors consider this late-cycle segment of the market a good time to exercise discipline when looking at new deals.  That said, interest rates are the least intrusive obstacle to obtaining a favorable capital structure."

As agencies reach their “cap” lending volume on conventional deals, other lenders are picking up the slack.  Additional notable market trends include:

Flat Rates/Spreads - In the past month, benchmark rates moved higher by about five basis points, a barely noticeable difference.  Meanwhile, mortgage spreads remain almost unchanged, as lenders aggressively compete for limited funding opportunities.

Saving “Green” - "Green" deals on affordable/workforce housing loans remain the most coveted funding targets with the agencies.  Pricing discounts of 20 basis points are typical, along with full leverage (e.g., 75% LTV) availability.  Projects most suitable for such programs are older vintage apartment buildings, generally constructed prior to the 1980s, where “green” upgrade possibilities prevail.

Highway Speed Limit Pricing – Staying within posted highway speed limit ranges also applies to mortgage leverage ranges of 55%-70% LTV [vs. MPH].  Best pricing offered for “slower” lower-leverage deals at 55% or less.  Life companies and agencies battle for such loan opportunities, dipping to spreads of 125 basis points, or less, in some cases.  “Higher speed” loan opportunities demanding debt levels of 65% to 75% are priced in the 165-185 basis point range.   The same price range for much of the past year, or so.

Ten-Year Term Rules – The optimum loan term for permanent debt continues to be 10 years.  Nearly no appreciable difference between seven and 10-year pricing.  In fact, five-year pricing can be more expensive, as the funding arena shifts from perm lenders to banks, based on higher cost-of-capital parameters.

The Real Estate Capital Institute® 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.  


John Oharenko
 Executive Director

 The   Real Estate Capital Institute®
3517 West Arthington Street
Chicago, Illinois USA 60624

JLL Capital Markets Secures the Sale of Thunderbird Wellness Centre in Peoria, AZ

Thunderbird Wellness Centre, Peoria, AZ

PHOENIX, AZ, May 3, 2019JLL Healthcare Capital Markets Group announced today the sale of the 56,190 square foot Thunderbird Wellness Centre in Peoria, Arizona.

Daniel Turley of JLL Healthcare Capital Markets Group served as exclusive advisor to the seller, a joint venture between developer/owner MedProperties Group and Virtus Real Estate Capital. The buyer was MBRE Healthcare out of Chicago. 

The 100 percent occupied four-building Class A medical office and specialty retail asset is anchored by a USPI-affiliated ambulatory surgery center and features a high-quality and diversified tenant roster. 

Located in one of Phoenix’s most affluent and growing northwest submarkets, Thunderbird Wellness Centre is strategically positioned less than five miles from three of Phoenix’s major hospitals including the Banner Boswell Medical Center, Banner Thunderbird Medical Center and Tenet’s Abrazo Arrowhead Hospital.

JLL Healthcare Capital Markets is the only national full-service healthcare capital markets team in the real estate industry focused on medical office, hospitals, seniors housing and post-acute care.

 The team consistently transacts over $1 billion annually with unrivaled expertise and experience in investment sales, monetization, development debt and equity capital raise and advisory services for investor and provider clients.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. 

In 2018 alone, the firm’s 2,600 Capital Markets specialists completed nearly $180 billion in investment sale and debt and equity transactions globally.


Stacey Hershauer 
P 480.600.0195

 Azar Boehm
Phone: 212 292-7587