4 Percent of All U.S. Single Family Home Sales in First Quarter Were Flips According to RealtyTrac U.S. Home Flipping Report

  

Daren Blomquist

IRVINE, CA — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, released its Q1 2015 U.S. Home Flipping Report, which shows that 17,309 single family homes were flipped — sold as part of an arms-length sale for the second time within a 12-month period — in the first quarter, 4.0 percent of all single family home sales during the quarter.

The average gross profit — the difference between the purchase price and the flipped price — for completed flips in the first quarter was $72,450, up from $65,290 in the previous quarter and up from $61,684 in the first quarter of 2014 to the highest level going back to the first quarter of 2011, the earliest where data is available.

The average gross return on investment (ROI) — average gross profit as a percentage of the average original purchase price — was 35.1 percent for completed flips in the first quarter, down slightly from 35.3 percent in the fourth quarter but up slightly from 35.0 percent in the first quarter of 2014.

“The strong returns for home flippers in the first quarter demonstrates that there is still a need in this recovering real estate market for move-in ready homes rehabbed to more modern tastes, particularly given the dearth of new homes being built,” said Daren Blomquist, vice president at RealtyTrac.

 “The challenge for flippers in 2015 will be finding inventory to flip. Flippers ideally want to buy distressed homes that provide them with an opportunity to add value in markets where there is good affordability and ample demand from buyers for the finished flip product — whether those buyers are millennials becoming first-time homebuyers, baby boomers purchasing their present or future retirement home, or buy-and-hold real estate investors looking for turnkey rental properties that cash flow.”

For a complete copy of the company’s news release, please contact:

Ginny Walker

949.502.8300, ext. 268

Ginny.walker@realtytrac.com

HFF secures $494.88 million acquisition financing for 12-property multi-state apartment portfolio in Three States

Mona Carlton

DALLAS, TX  – Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured acquisition financing totaling $494.88 million for the acquisition of 12 apartment communities totaling 4,635 units located in Texas, Georgia and Colorado.

Working on behalf of the borrower, Strata Equity Group, Inc., HFF placed 12 separate fixed-rate loans totaling $494.88 million with Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program.  The securitized loans will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.

The HFF debt placement team representing the borrower was led by senior managing director Mona Carlton, director Luke Vanderpoel and associate director Chad Russell and supported by real estate analyst Kris Lowe and production coordinator Ginger O’Reilly.

Strata Equity Group is a San Diego, California-based family-owned real estate investment and management company founded by Carlos D. Michan, CEO and his two brothers.  

Chad Russell

With over 30 years of operating history, Strata manages two investment divisions: acquiring, repositioning, and operating commercial income properties with an emphasis on multi-family; and acquiring and entitling raw land throughout Southern California. 

  Strata owns and manages over $1.5 billion in real estate assets comprised of over 7,500 multi-family units, over 375,000 square feet of commercial space and over 18,000 acres of land. 

For a complete copy of the company’s news release, please contact:

Olivia Hennessey

Public Relations Coordinator

HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046

tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

ohennessey@hfflp.com

HFF closes $20.15 million sale of power center in Columbus, GA

Bradley Park Crossing Shopping Center, Columbus, GA

ATLANTA, GA  – Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $20.15 million sale of Bradley Park Crossing, a 116,768-square-foot, retail power center with multiple national anchors in Columbus, Georgia.

Jim Hamilton

HFF arranged the sale of the property on behalf of the seller, DDR Corp.  The Rosen Group purchased the asset free and clear of existing debt.

Bradley Park Crossing is anchored by PetSmart, Michaels, Hibbett Sports, Target (shadow) and The Fresh Market, which is the only specialty grocer within a 36-mile radius of the property.  

The power center is located at 1591 Bradley Park Drive in Columbus, approximately 100 miles south of downtown Atlanta.

  Located at the intersection of U.S. 80 and Bradley Park Drive, the property is in Columbus’ main retail corridor, which has daily traffic counts exceeding 43,000 vehicles. 

The HFF investment sales team representing the seller was led by senior managing directors Jim Hamilton and Richard Reid and senior real estate analyst Mike Allison. 

For a complete copy of the company’s news release, please contact:

 Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

HFF closes sale-leaseback of 2-property industrial portfolio in the Houston metro area

Brookshire Orizon Building,  7007 FM 362 in Brookshire, TX

 HOUSTON, TX –  Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale-leaseback of a two-property, 449,895-square-foot industrial portfolio 100 percent occupied by Spitzer Industries in the Houston metropolitan area. 

Trent Agnew

HFF marketed the property on behalf of Spitzer Industries/Stephens Group.  An affiliate of Lexington Realty Trust purchased the property and leased it back to Spitzer Industries for 20 years. 

The portfolio serves the operating needs for Spitzer Industries, a custom fabricator of specialized equipment for the energy industry and is comprised of the Waterfront Deck and Brookshire Orizon properties. 

The Waterfront Deck property consists of six buildings totaling 187,800 square feet at 13863 Industrial Road in east Houston.  The property features 1,100 linear feet of frontage along Greens Bayou adjacent to the Houston Ship Channel and has barge and boat slips.

 The Brookshire Orizon facility was renovated between 2012 and 2014 and consists of one 262,645-square-foot building at 7007 FM 362 in Brookshire, a suburb 37 miles west of Houston.

The HFF investment sales team representing the seller was led by director Trent Agnew, managing director Coler Yoakam, executive managing director Scott Galloway, senior managing director Mark West and real estate analyst Campbell Black.

For a complete copy of the company’s news release, please contact:

 Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

www.lxp.com.

 www.stephensgroup.com.

 www.spitzerind.com.

Capital Square Realty Advisors Acquires 24,000-Square-Foot Golfsmith Retail Building in Richmond, Va.

Louis Rogers

RICHMOND, VA – Capital Square Realty Advisors LLC announced it has acquired a 24,000-square-foot retail building 100 percent leased by Golfsmith USA, LLC. The property is located within West Broad Village, a mixed-use urban development in Richmond, Virginia’s prestigious West End, only minutes away from Capital Square’s headquarters. 

“This property is leased on a long-term, triple net basis to an affiliate of the largest specialty golf retailer in the world,” said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors. 

“The building has a prominent location within West Broad Village, which in total includes more than 400,000 square feet of prime real estate, a 339-unit apartment complex and various residential townhomes and neighborhoods.”

Golfsmith USA, LLC is a subsidiary of Golfsmith International, the largest specialty golf retailer in the world. Operating stores in the U.S. and Canada, Golfsmith functions as a multi-channel retailer and offers customers shopping convenience through more than 150 retail locations and two e-commerce sites.

With 327 golf facilities and two professional golf championships, golf in Virginia is more than just an enjoyable pastime — it is a key industry contributing to the vitality of local communities and the state economy. 

West Broad Village, Richmond, VA

In 2012, Virginia’s direct golf economy was approximately $1.4 billion, and when the total economic impact of these golf-related activities is considered, Virginia’s golf industry supported approximately $2.5 billion of total economic activity, nearly 30,000 jobs, and $733.4 million of wage income in 2012.

West Broad Village is an urban development within a suburban setting that encompasses approximately 115 acres of residential, retail, office, hotel, recreation and environmental land. 

The development connects single-family homes to shopping, dining and entertainment experiences within walking distance. Wide-ranging tenants in the Village include Whole Foods Market, REI, the Children’s Museum of Richmond and a Starwood hotel. Onsite restaurants include Kona Grill, Dave & Busters and The Wine Loft.

For a complete copy of the company’s news release, please contact:

 Julie Leber                                                                         

 Spotlight Marketing Communications                    

 949.427.5172, ext. 703                   

 julie@spotlightmarcom.com

SR Commercial Acquires 11.8-Acre Land Parcel in Carlsbad, CA for Spec Development of Multi-Tenant Industrial Distribution Project

CJ Stos

SAN DIEGO, CA– SR Commercial, a privately held, full-service commercial real estate investment company, has acquired an 11.8-acre land parcel in Carlsbad, California, on which the firm plans to develop a 151,500 square-foot multi-tenant industrial distribution project, according to CJ Stos, a Principal at SR Commercial.

“The timing is right for this spec development,” says Stos, who founded SR Commercial along with partner Adam Robinson.  

“There is active tenant demand for multi-tenant industrial space, coupled with a limited supply of this product type in the Carlsbad region.  The combination of these factors translates into a tremendous opportunity for our firm to add value to this Southern California industrial hub.”

SR Commercial Principal Adam Robinson explains, “Currently, there are only seven industrial business parks in the Carlsbad and Vista submarkets that offer small unit sizes with both grade-level and dock-high positions.

“Those properties have averaged 97 percent occupancy over the past nine months. Based on this analysis of existing product performance, as well as overall market vacancy rates, which are as tight as seven percent for the overall industrial market, and a miniscule three percent for incubator industrial distribution projects, the market is ready for the new project we have planned.”

Adam Robinson

SR Commercial plans to develop and operate a high-quality multi-tenant industrial distribution business park with suite sizes ranging from 3,400 to 35,500 square feet, according to Stos. 

The ground-up development project will be located in Carlsbad Oaks North, a new 414-acre master planned corporate business park in Carlsbad, California, which currently consists of 25 vacant lots.

The approximately 151,500 square-foot incubator project will be state-of-the-art featuring, 27-foot to 32-foot clear height, abundant dock-high and grade-level loading, an ESFR sprinkler system, and ample parking at approximately 2.4 per 1,000 square feet.

As part of SR Commercial’s long-term investment strategy, the firm plans to hold the property for a fifteen plus year period.

SR Commercial acquired the 11.8-acre land parcel for a total consideration of $6.16 million.  Mike Erwin, Conor Boyle and Tucker Hohenstein of Colliers International represented SR Commercial as the buyer, and also represented Techbilt Construction Corp. as the seller in the transaction.

SR Commercial is a privately held, full-service commercial real estate investment company that acquires, owns and develops income-producing industrial and office properties. 

Planned Industrial Building in Carlsbad, CA

  The firm, which partners with both high net worth private capital and institutional investors, has acquired 68 properties totaling approximately two million square feet and more than $250 million in commercial properties since 2011, and continues to conduct successful value-add repositioning and ground-up development projects.

SR Commercial’s two Principals are Adam S. Robinson, CPM, CCIM, SIOR; and CJ Stos, MRED. With its corporate office in San Diego and the Principals' close ties to Orange County and Los Angeles County, SR Commercial has positioned itself as one of the leading real estate investment companies in its markets. 

More information is available at www.sr-commercial.com.

For a complete copy of the company’s news release, please contact:

Lexi Astfalk / Jenn Quader

Brower, Miller & Cole

(949) 955-7940

Lastfalk@browermillercole.com