Marcus & Millichap Brokers $35.3 Million 7-Eleven Portfolio Sale

Glen Kunofsky

NEW YORK, NY  – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of a 29,813-square-foot net‐lease portfolio consisting of 12 corporate, freestanding 7‐Eleven convenience stores in Ohio.

The total sales price for the portfolio is $35,329,302, which equates to $1,185 per square foot.

            Glen Kunofsky and Russell Wachtler in Marcus & Millichap’s Manhattan office, along with Mike James in the firm’s Encino, Calif. office, represented the seller. Michael Glass, first vice president and regional manager of Marcus & Millichap’s Cleveland office, is the firm’s broker of record in Ohio.

            The properties are located in dense retail corridors in suburban real estate markets surrounding the Cleveland MSA. 

The locations were previously occupied by another tenant and in 2013 significant capital was allocated to convert the stores to the latest 7‐Eleven image. 

Russell Wachtler

7‐Eleven has 8,600 stores in the United States and Canada and more than 54,200 locations worldwide. 

There are approximately 14-plus years remaining on each of the leases, which are all 20‐year absolute triple-net leases with 2 percent annual rental increases.

“The strong corporate credit of 7-Eleven combined with rare annual rental increases demanded a record-setting cap rate for the portfolio,” says Wachtler.

 “This is a prime example of how the market for mid-sized net-lease portfolios is growing to encompass more private investors as 1031 exchanges grow in dollar size, which has created a more competitive cap rate for portfolios above $25 million,” says Kunofsky.

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

Gina Relva

Public Relations Manager

(925) 953-1716

$14.4 million sale of 264-unit apartment property in Orlando, fl facilitated by Marcus & Millichap

Evan P. Kristol

ORLANDO, FL  – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of Royal Isles, a 264-unit, lender-owned apartment community in Orlando, Fla. The asset sold for $14.4 million.

Evan P. Kristol, senior vice president investments in Marcus & Millichap’s Fort Lauderdale office, and Still Hunter III, a senior director of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller, a private investor from Beverly Hills, Calif., and the buyer, a Miami-based limited-liability company.

“Upon bringing the property to market, we received tremendous interest and generated 11 competitive offers,” says Kristol. 

“The deal closed at $300,000 above the asking price and was awarded to an all-cash buyer who made a non-refundable deposit at contract signing. 

Still Hunter III

"Given the property’s attractive amenity package, oversized floor plans and below market rents, significant rental increases should be achievable through strategic unit renovations and hands-on management,” Kristol concludes.

Royal Isles consists of 19 two-story buildings and one stand-alone building that serves as a leasing office. The property has 80 one-bedroom/one-bath units, 132 two-bedroom/two-bath apartments and 52 three-bedroom/two bath units.

The community is located at 803 Don Quixote Ave. near the 408 East-West Expressway and one of the largest and most heavily traveled crossroads in Orlando, South Semoran Boulevard.

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

Gina Relva

Public Relations Manager

(925) 953-1716

Chelsea Mixed-Use Building in New York City Sells for $12 Million

165 West 23rd Street, Chelsea Neighborhood, New York City, NY

 

Peter Von Der Ahe

 NEW YORK, NY – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of 165 West 23rd St., a five-story, mixed-use building containing a two-story restaurant and four residential loft units in New York’s City’s Chelsea neighborhood. 

The $11, 995,000 sales price equates to $1,471 per square foot.

            Peter Von Der Ahe, Shlomo Manne, Joe Koicim, and Sean Lefkovits, all in Marcus & Millichap’s Manhattan office, represented the seller and procured the buyer.

            “All of the apartments were delivered vacant says Von Der Ahe. “The property provides the new owner with many options, including converting the apartments to condos, renovating the retail space to take advantage of the high amount of traffic on 23rd Street, changing the lofts into separate front and back units or converting the apartments into luxury residences.”

Shlomo Manne

“The recent downtown technology boom has increased demand for residential housing in the neighborhood,” adds Lefkovits. “Twitter, Google and IAC all have their New York headquarters in Chelsea.”

            The property is located next to the 1 subway line on 23rd Street and 7th Avenue, one block from the F and M subway lines on 23rd Street and 8th Avenue and two blocks from Madison Square Park and the Flatiron District. The Chelsea Market, the Italian marketplace Eataly, and the High Line are all nearby.

            The property’s multifamily unit mix is one studio, two one-bedroom units and one two-bedroom apartment.

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

Gina Relva

Public Relations Manager

(925) 953-1716

IPA Facilitates $32.5 Million Multifamily Sale of Historic Wilshire Royale in Los Angeles’ Westlake District

Wilshire Royale Apartments, 2619 Wilshire Boulevard, Los Angeles, CA

 

Anita Paryani

LOS ANGELES, CA – Institutional Property Advisors (IPA), a division of Marcus & Millichap, Inc. specializing in serving institutional and major private real estate investors, is pleased to announce the sale of a multifamily property, the iconic Wilshire Royale Apartments at 2619 Wilshire Boulevard to M West Holdings LLC. 

The sales price was $32.5 million for the 193-unit property which equates to $168,400 per unit.

IPA executive vice president investments Greg Harris, along with IPA directors Kevin Green and Joseph Grabiec, advised the seller, a private investor. IPA’s Harris, Green and Grabiec also procured the buyer, M West Holdings LLC. 

Anita Paryani and Jake Roberts, both vice president capital markets with Marcus & Millichap Capital Corp. in West Los Angeles, arranged financing for the purchase of the Wilshire Royale property.

 “This one-of-a-kind asset is located in one of Los Angeles’ most riveting submarkets, the Westlake District, featuring rare and breathtaking views of all of Los Angeles,” says Harris.

Jake Roberts

“Located between Koreatown and downtown, this is an area that is starting to see a tremendous amount of capital moving into it with several high rises and office-to-apartment conversions planned, along with East Coast investors trading into Los Angeles in an effort to find value. 

Of late, it has become a trendier spot as Koreatown continues to push the boundaries to the east and downtown Los Angeles moves west,” adds Green.

            “The Wilshire Royale Apartment building is an iconic Los Angeles landmark and reflects our company's vision to acquire properties in emerging neighborhoods with powerful and distinct personality, pioneering architecture, and holds tremendous value,” states Karl Slovin, President, M West Holdings LLC. 

"With the Wilshire Royale we intend to bring back the 1920s neoclassical charm and elegance so we can attract the growing millennial renter population that is looking for a modern amenity package that rivals the best buildings in the area.”

        Originally constructed in 1927 as the Arcady Apartment Hotel, the Wilshire Royale is a historic 12-story building with Art Deco architecture, as well as 9,269 square feet of prime ground-floor retail space.

Karl Slovin

“The new owner is well positioned to capitalize on the historic nature of the property while renovating it to today’s luxury standards in a market where there is demand for high-end renovated units,” says Grabiec.

Its central location offers easy access to the 10, 101 and 110 freeways with a short commute to downtown, Hollywood and the Westside of Los Angeles, as well as stops on the Metro Red Line and Purple Line.

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

Gina Relva

Public Relations Manager

(925) 953-1716

Marcus & Millichap Brokers Sale of 96-Room Courtyard by Marriott in Memphis, TN

Anne Williams

MEMPHIS, TN – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of the 96-room Courtyard by Marriott, located in Memphis, Tenn., according to Richard D. Matricaria, regional manager of the firm’s Tampa office.

Jonathan S. Ruprai, senior director of the firm’s National Hospitality Group, and Dennis Hopper, associate, both in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a private investor.  Anne Williams and Matthew Fitzgerald, brokers, assisted in this transaction.

"The seller acquired the hotel in 2012, and shortly thereafter completed a $2.275MM renovation, which ultimately allowed the hotel to increase its market share.

Jonathan Ruprai

“  This repositioning, coupled with the tremendous optimism in the investment markets, allowed the seller to benefit.  At the same time, there is significant value upside remaining for the buyer as they look to continue to build upon the repositioning efforts and increased share in the Memphis market," says Ruprai.

With an industry leading hospitality team in more than 40 markets nationally, this marks the 101st hotel sold by Marcus & Millichap’s National Hospitality Group in 2015.

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

Gina Relva

Public Relations Manager

(925) 953-1716

$23.65 Million Buys Silicon Valley Apartment Complex in Belmont, CA

Three@21 Belmont Apartments, 301-321 Oxford Way, Belmont, CA

Adam Levin

BELMONT, CA – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of three 21@belmont, a 65-unit apartment complex in Belmont, Calif. The $23,650,000 sales price equates to $363,846 per unit.

            Adam Levin, first vice president investments and Robert Johnston, vice president investments, both in Marcus & Millichap’s Palo Alto office, represented the seller, and procured the buyer.

            “Located in one of the strongest rental markets in the country, three21@belmont is within walking distance of the Oracle campus and provides the new owner with a substantial revenue enhancement opportunity,” says Levin.

            “Apartments like three21@belmont with close proximity to strong employment corridors see a 10 to 20 percent premium in rent,” adds Johnston. “Previous ownership extensively renovated the property and added amenities that allowed management to push rents to $4 per square foot.”

Robert Johnston

            Exterior renovations include new redwood siding, exterior paint, dual-pane windows and sliders and energy-efficient light fixtures. 

Interior upgrades include a new management office, remodeled lobbies, an electronic door entry system, new pool deck and resurfaced pool, gym, remodeled laundry facilities and new common area hallways and interior common stairwells.

Built in 1968 on 1.5 acres at 301-321 Oxford Way in Belmont, three21@belmont consists of two three-story buildings with elevators and separate lobbies connected by a heated swimming pool.

There are 75 parking spaces and four on-site laundry rooms. The unit mix is 37 junior one-bedroom/one-bath units and 28 deluxe one-bedroom/one-bath apartments.

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

Gina Relva

Public Relations Manager

(925) 953-1716

Marcus & Millichap Announces Sale of $11 Million Storage Asset in Palm Bay, FL

Michael Mele

PALM BAY, FL – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, is pleased to announce the sale of a seven-building self-storage asset, Additional Storage of Palm Bay, located west of Interstate 95 on the highly traveled Malabar Road.

The sales price was $11 million for the 122,690 net-rentable-square-foot property.

            The listing agents were Michael Mele, senior vice president investments, and Luke Elliott, associate, both of the firm’s Tampa office. The seller was a local Limited Partnership and the buyer was an investment company out of the Northeast.

“Additional Storage of Palm Bay is a quality asset, and after exposing to the market, closed at full list price,” says Mele. “This transaction marks the 7th transaction for me and Luke in the past 60 days, for a combined total of over $70 million in dollar volume.” Mele adds.

Luke Elliott

The site is fully secured by a perimeter fence with electronic gate access and is monitored by surveillance cameras to ensure safe storage. 

There are a total of 1,110 units that range in size from 25 square feet to 300 square feet. Constructed in 2000 and expanded in 2006, the facility has both climate controlled space, non-climate and RV Parking.

“While Palm Bay is very much a tertiary market, the sellers built an institutional quality facility for which we were able to get them an institutional price,” says Elliott.  

“We have been running 42 days on average from listing to going under contract, this highlights both the current market climate and our platforms ability to quickly expose the asset to the maximum number of qualified buyers.”

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

Gina Relva

Public Relations Manager

(925) 953-1716

$29.8 million financing for 310-unit apartment community in Colorado Springs, CO arranged by HFF

Sunset Creek Apartments, 5400 North Nevada Avenue, Colorado Springs, CO

 

Josh Simon

DENVER, CO – Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $29.8 million in financing for Sunset Creek, a 310-unit apartment community in Colorado Springs, Colorado. 

Working on behalf of Advenir, Inc., HFF placed the seven-year, 2.49 percent, adjustable-rate loan with three years interest only with Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program.

  The securitized loan will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.  Loan proceeds were used to acquire the asset.  Advenir will rebrand the property as Advenir at The Village and will implement a capital improvement program to achieve great rental premiums.

Advenir at The Village is located at 5400 North Nevada Avenue approximately seven miles north of downtown Colorado Springs and nine miles south of the U.S. Air Force Academy along Interstate 25.

 Situated on 33 acres, the property is adjacent to the University of Colorado – Colorado Springs (UCCS) campus, which is home to 11,000 students, and borders the newly-constructed University Village Colorado shopping center that is occupied by Colorado Springs’ only Trader Joe’s.

Eric Tupler

 The community features one-, two- and three-bedroom floor plans and amenities such as a resort-style swimming pool, hot tub, tennis court, volleyball court, fitness center, picnic area and offers access to 40 miles of jogging and bicycle trails along the Santa Fe Trail. 

The HFF debt placement team representing the borrower was led by Josh Simon and Eric Tupler.

"Sunset Creek is uniquely positioned across the street from UCCS, the fastest growing university in the state and shares the property line with the city’s most robust retail center," said Advenir’s chief acquisition officer Todd Linden.  

“We are confident that we can add value by making significant improvements to the asset in order to garner increased rents and asset appreciation.”

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

HFF closes $11.5 million sale of and arranges $7.27 million financing for 49-unit apartment community in Los Angeles area

Villa Toscana Apartments,  20918 Gresham Street Canoga Park, CA

Blake Rogers

LOS ANGELES, CA – Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $11.5 million sale of and arranged $7.27 million in financing for Villa Toscana, a 49-unit, Mediterranean-style apartment community in Canoga Park, California.

HFF marketed the property on behalf of the seller, a joint venture between Pacific Crest Realty and a private equity investment partner.

The property was purchased free and clear of existing debt by Gresham Villa Toscana, LLC, a new entity controlled by Plutsky Limited Partnership. 

HFF worked on the buyer’s behalf to place the five-year, fixed-rate, 20-year term acquisition loan with Freddie Mac’s small balance loan program at a rate of 2.88 percent.

Villa Toscana is located at 20918 Gresham Street in the San Fernando Valley approximately 27 miles northwest of downtown Los Angeles.  

Completed in 2003, the non-rent controlled property features one-, two- and three-bedroom units averaging approximately 960 square feet each. 

Marc Schillinger

The community features a swimming pool, fitness center, courtyard area, assigned garage parking and gated access.  

The asset provides nearby access to two of Los Angeles County’s largest shopping malls – Westfield Topanga and Westfield Promenade – as well as the soon-to-be-completed $350 million Westfield Village lifestyle center, which will connect the two existing malls.

The HFF investment sales team representing the seller was led by director Blake Rogers.

HFF’s debt placement team representing the buyer was led by director Marc Schillinger.

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 arranges financing totaling $65.7 million for 11 manufactured home communities in California and Oregon

Hollywood Estates, Salem, OR

Zach Koucos

SAN DIEGO, CA – Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $65.7 million in combined financing for 11 manufactured home communities totaling 1,605 home sites located in California and Oregon since April 1, 2015.

Financing for the 11 properties closed in separate transactions between April 1 and July 15, 2015. HFF executed the individual loans with a variety of capital sources including Freddie Mac, Fannie Mae, life insurance companies, CMBS conduits and regional banks.

 All 11 loans feature 10-year fixed-rates, 30-year amortizations and are non-recourse.  The financing requests were widely marketed by the HFF team, and the most optimal lender was selected for each property with respect to loan proceeds, rate and terms.

The HFF debt placement team representing the borrowers was led by director Zach Koucos and senior managing director Tim Wright.

“The capital marketplace for manufactured home communities is extremely healthy.  Demand for MHC’s on the part of lenders and investors alike, particularly in coastal markets, is as strong as we have ever seen.  More people are taking note of the merits of this asset class, and it has created significant competition,” Koucos said. 

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 arranges $62.5 million financing for development of leasehold interest in 1008 North Glebe in Arlington, VA

Rendering of planned 1008 North Glebe Apartments, Ballston Center Campus,
Marymount University, Arlington, VA

Sue Carras

WASHINGTON, D.C. –  Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $62.5 million in financing for the development of the leasehold interest in 1008 North Glebe, a to-be-built, 15-story, 267-unit, Class A mixed-use apartment and retail property situated on Marymount University’s Ballston Center Campus in Arlington, Virginia. 

HFF worked on behalf of the developer, The Shooshan Company, to secure the construction financing with SunTrust Bank.   

The Shooshan Company was selected by Marymount University in 2012 to evaluate their Ballston Campus, a 110,000-square-foot site with a 1960’s-era office building that Marymount purchased in 1992 as an extension to their main campus. 

A site plan was approved whereby Marymount could demolish the aging classroom building and redevelop the site into two new buildings: a Class A 165,000 square foot classroom/office building owned by Marymount, and a Class A mixed-use apartment and retail tower owned by an affiliate of The Shooshan Company on a leasehold interest in the land. 

Walter Coker

1008 North Glebe is prominently situated at the corner of North Glebe Road, North Fairfax Drive and Interstate 66 in the transit-oriented Rosslyn-Ballston Corridor.  The combined project is expected to be complete by spring of 2017.

The HFF debt placement team representing the borrower was led by Sue Carras, Walter Coker and Brian Crivella.

“The Shooshan Company is one of the metro area’s leading developers and SunTrust has become one of its most important lenders having financed this project and The View in Ballston,” said Carras.

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