HFF closes sale of nine-property Texas self storage portfolio

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of a nine-property self storage portfolio located in Austin, Dallas, Houston and San Antonio, Texas.

HFF senior managing director Aaron Swerdlin (top right photo) and managing director Doug McCarron (middle left photo)  led the investment sales team exclusively on behalf of the seller.

The portfolio was listed for $71 million. HSRE (Harrison Street Real Estate Capital, LLC), of Chicago, purchased the portfolio for an undisclosed price.

HSRE’s company model is to acquire as well as to provide equity capital to developers and operators in the areas of real estate related to education, healthcare and self storage.

“We were pleased to acquire such a strong performing portfolio of stores with the benefit of excellent assumed CMBS debt,” said Geoffrey Regnery, vice president at HSRE.

The properties, which were built between 1994 and 1998, contain more than 5,300 units and total 551,609 square feet. There are five properties in Houston, two properties in Dallas, one property in Austin and one property in San Antonio.

“The resiliency of the self storage product type in a recessionary environment certainly was apparent by the multiple offers we had to work with on this transaction.

"Augmented by the fact that all of the assets were in Texas, one of the best performing states in the country, this portfolio was extremely attractive to buyers with capital to invest in self storage.

" We continue to see the product type outperform the broader market, especially as the capital markets and the US economy stabilizes,” said Swerdlin.

Contacts:

Aaron A. Swerdlin, HFF Senior Managing Director, (713) 852-3500, aswerdlin@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF closes sale of and arranges financing for two Washington, D.C. multi-housing communities

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of and arranged acquisition financing for 5100 Connecticut Avenue Northwest and 2620 16th Street Northwest, multi-housing communities totaling 92 units in Washington, D.C.

Directors Alan Davis (top right photo) and Dave Nachison  (middle left photo) led the HFF investment sales team on behalf of a court appointed receiver. Gelman Management Company purchased 5100 Connecticut Avenue Northwest and 2620 16th Street Northwest for a combined $8.35 million.

Gelman Management Company retained HFF director Dan McIntyre to secure $5.804 million of acquisition financing through Fannie Mae’s DUS Loan Program on their behalf.

5100 Connecticut Avenue Northwest was built in 1962 and is located along Connecticut Avenue in the Friendship Heights/Chevy Chase area of northwest Washington, D.C. The property has 42 studio and one-bedroom units averaging 350 square feet each as well as a 680-square-foot commercial suite occupied by a dentist. On-site amenities include community laundry and 14 parking spaces.

2620 16th Street Northwest was built in 1965 and is situated in the North Dupont/Adams Morgan area of northwest Washington, D.C. The nine-story property has 49 studio and one-bedroom units averaging 375 square feet each, on-site laundry and 16 parking spaces.

“Both of these properties are located in well established neighborhoods of Washington, D.C. that continue to see strong multi-housing demand, low vacancy levels and tremendous fundamentals,” said Davis.

“Opportunities to purchase high-quality, vintage high-rise buildings like these do not present themselves in D.C. very often and with maximum rent increases in rent-controlled buildings capped at 6.8% this year, investors are seizing the opportunities and demand is very strong,” added Nachison.

Contacts:

Alan M. Davis, HFF Director, (202) 533-2508, adavis@hfflp.com
David R. Nachison, HFF Director (202) 533-2536, dnachison@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF closes $14.6M sale of FedEx facility in Memphis, TN

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of the FedEx Supply Chain Services Facility, (above centered photo)  a 450,000-square-foot distribution warehouse in Memphis, Tennessee.

HFF director Jud Clements, (top right photo) executive managing director Jody Thornton (middle left photo) and associate director Robby Rieke (bottom right photo) led the investment sales team exclusively on behalf of the seller, Harbin Group, Ltd.

In addition, Jim Mercer with CB Richard Ellis in Memphis, who originally negotiated the lease with FedEx at the property, also assisted on the sales transaction. Monmouth Real Estate Investment Corporation purchased the property for $14.6 million free and clear of debt.

The FedEx Supply Chain Services Facility is located at 5025 Tuggle Road and is situated at the intersection of U.S. Highway 78 and Tuggle Road, approximately three miles southeast of the Memphis International Airport. Originally built in 1994, the property is fully leased to FedEx for their Supply Chain Services division, a third party logistics provider that stores, secures and distributes critical inventory for its corporate clients.

Monmouth Real Estate Investment Corporation (Nasdaq: MNRTA), which was organized in 1968, is a publicly-owned real estate investment trust specializing in net-leased industrial properties. The company's portfolio now consists of 59 industrial properties and one shopping center located in 25 states. In addition, the company owns a portfolio of REIT securities.

Contacts:

Judson Clements, HFF Director, (214) 265-0880,, jclements@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com