BKM Capital Partners Acquires Three-Property Value-Add Light Industrial Portfolio in Growing Phoenix, AZ Metro

Brian Malliet

Bob Buckley

 PHOENIX METRO, AZ (May 23, 2016) – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired the RREEF Tempe portfolio, a 305,524 square-foot three-property portfolio in the growing submarket of Tempe, Arizona in an off-market transaction.

 The portfolio consists of 16 multi-tenant light industrial buildings and was purchased for $24.1 million, which is 34 percent below replacement cost.

The three-property portfolio was purchased from Deutsche/RREEF and the CIM group on behalf of its client, an institutional investor. Bob Buckley and his team at Cushman & Wakefield represented the seller in the transaction.

            This portfolio was acquired as part of BKM Industrial Value Fund I L.P., which closed earlier this year and now has 14 assets totaling more than $155.1 million in assets under management.

“The Phoenix metro is one of the most highly sought after industrial regions in all of Arizona,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners. “The prime location of these assets coupled with the Tempe submarket’s historically high industrial occupancy will allow us to maximize returns for our investors over time.”

The Tempe submarket currently boasts 93.4 percent occupancy, averaging 91 percent occupancy since 1990. The RREEF Tempe portfolio is 87 percent occupied with in-place rents that are significantly below market, providing an opportunity for BKM to drive value and yields, according to Malliet.

  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

www.bkmcapitalpartners.com

HFF closes $9.2 million sale of grocery-anchored retail center in Tampa, FL

  

Bloomingdale Hills Shopping Center, Riverview District, Tampa, FL

Brad Peterson

ORLANDO, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $9.2 million sale of Bloomingdale Hills, a 78,442-square-foot, grocery-anchored shopping center in the Riverview area of Tampa, Florida.

Phillips Edison Grocery Center REIT II purchased the asset free and clear of existing debt.

Renovated in 2012, Bloomingdale Hills is anchored by Wal-Mart Neighborhood Market, the second largest grocer in central Florida.  The 95.4-percent-leased center is also home to a number of other shop tenants, including Great Expressions Dental and Great Clips.

 Situated on 12.8 acres at 10863 West Bloomsdale Avenue, the center is on the “going home” side of both Bloomingdale Avenue and Providence Road in Riverview, an area in southeastern Tampa approximately nine miles from downtown.  

Bloomingdale Hills is located in an infill corridor at the confluence of Interstate 75 and US 301, the primary north-south roadways in the area.

The HFF investment sales team representing the seller was led senior managing director Brad Peterson and associate director Whitaker Leonhardt.

”Bloomingdale Hills was an attractive offering for investors to gain exposure to Wal-Mart’s very strong credit,” Leonhardt said.  “With all of the attention received by other grocery-anchored assets, especially in Florida, there is a relatively short supply of shopping center sales with Wal-Mart as a tenant.”

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

Kristen M. Murphy

Director, Marketing

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.grocerycenterREIT2.com.

HFF arranges $6.7 million acquisition financing for industrial building in Monmouth County, NJ

  

34--38 Industrial Way East, Southern Monmouth County, Eatontown, NJ

FLORHAM PARK, NJ –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $6.7 million in acquisition financing for 34-38 Industrial Way East, a 106,918-square-foot industrial flex facility in the southern Monmouth County, New Jersey community of Eatontown. 

HFF worked on behalf of the borrower, The Donato Group, to place the five-year, floating-rate loan with Lakeland Bank.

34-38 Industrial Way East is a two-building facility with 14 individual flex units ranging in size from 3,000 to 17,000 square feet.  The facility features 22’ ceiling heights with an average column spacing of 25’ x 40’ and 308 parking spaces (2.88/1,000 square feet). 

Michael Klein

The 83.6-percent-occupied buildings are home to Paw BioScience; Hanro of Switzerland; Augustine Consulting, Inc.; Alkaline Corp; KruseCom; and Meridian Health. 

Situated on 8.905 acres, the property is located within the 95-percent-occupied Eastern Monmouth Industrial submarket approximately three miles from the Garden State Parkway.  The Donato Group’s offices are located less than one mile away from the property.

The HFF debt placement team representing the borrower was led by director Michael Klein.

“The Donato Group had a unique opportunity to acquire an industrial flex building within the Eatontown market, where it controls a significant amount – approximately 980,000 square feet – of space and is the premier landlord in the market,” Klein said. 

“Lakeland Bank understood The Donato Group’s dominant market position and the market demand for flex space.  The lender quickly jumped at the opportunity to work with the borrower to acquire the property and make improvements to the building’s facades that will help attract new tenants, retain existing ones and quickly bring the building more in line with the market’s high 90’s occupancy.”

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

Kristen M. Murphy

Director, Marketing

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 of and arranges financing for award-winning Broward County, FL lifestyle center

Promenade at Coconut Creek, 4401 Lyons Road, Coconut Creek, Broward County, FL

Daniel Finkle

MIAMI, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of and secured acquisition financing for Promenade at Coconut Creek, a 297,557-square-foot, LEED Silver certified lifestyle center with office space in the Broward County city of Coconut Creek, Florida. 

HFF marketed the property on behalf of the seller, an entity controlled by Garrison Investment Group.  AEW Capital Management, L.P. purchased the asset on behalf of one of its separate account clients free and clear of existing debt.  Additionally, working on behalf of the new owner, HFF placed the fixed-rate loan with Wells Fargo Bank.

Promenade at Coconut Creek is situated on 22.94 acres at 4401 Lyons Road in an affluent area bordering the Parkland, Hillsboro Ranches, Boca Pointe and Whispering Pines neighborhoods. 

The center’s position at the intersection of Wiles and Lyons Roads exposes it to approximately 52,500 vehicles per day, and more than 357,289 residents live within a five-mile trade area. 

Promenade at Coconut Creek was developed in 2008 with sustainability in mind and granted LEED Silver Certification by the U.S. Green Building Council in 2010.  The property comprises 250,060 square feet of retail and 47,497 square feet of office space and was voted Best Shopping Mall in Broward County for 2013 by South Florida Parenting magazine. 

 

Nat Scarmazzi

Anchored by an 11-screen Silverspot Cinema and Guitar Center, the 89-percent-leased lifestyle center is also home to DSW, Charming Charlie, Starbucks, J. Jill, New York & Co., Lane Bryant, World of Beer, Chico’s, Cold Stone Creamery, Cooper’s Hawk Winery, Jos. A. Bank and Sur La Table, among others.

The HFF investment sales team representing the seller was led by managing director Luis Castillo, senior managing director Daniel Finkle and associate director Nat Scarmazzi.

The HFF debt placement team representing the new owner was led by managing director Chris Drew and associate director Brian Gaswirth.

“The sale culminates a highly successful repositioning by Garrison Investment Group and provides AEW Capital Management with an opportunity to own one of Broward County’s leading lifestyle centers and build on the substantial recent leasing activity to their benefit,” Castillo said.

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

Kristen M. Murphy

Director, Marketing

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.aew.com.

www.garrisoninv.com.

HFF closes sale of a $30 million development site and arranges $31 million construction financing for industrial development in California’s City of Industry

    

Anthony J. Brent

NEWPORT BEACH, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $30 million sale of an entitled 19.86-acre industrial land site and arranged $31 million in construction financing for the development of a 429,840-square-foot, to-be-built, speculative warehouse and cross-dock facility in City of Industry, California. 

HFF initially evaluated joint venture equity structures for the seller, Robhana Group, Inc. (Robhana Group) represented by Cushman & Wakefield.  

Robhana Group decided to sell the project outright, and HFF represented Bridge Development Partners, LLC in the purchase of the land and sourcing of construction debt to fund the development. 

This will be the largest speculative development built in the San Gabriel Valley in the past several years.

The new industrial development will be located at 825 South Ajax Avenue in the infill location of City of Industry, a San Gabriel Valley community 19 miles east of downtown Los Angeles. he development will be approximately 35 miles from the Ports of Long Beach and Los Angeles and is proximate to California State Route 60, a major east-west shipping thoroughfare that allows access to most of the western United States within a few days. 

Ryan Martin

Additionally, the area is serviced by both Union Pacific and Southern Pacific transcontinental railroads.  The one-building facility will have 36’ ceiling clearance at the first column, an ESFR sprinkler system, 65 dock high doors, four grade-level doors, 56’ by 50’ column spacing and 461 parking stalls. 

The HFF investment sales team was led by senior managing director Anthony J. Brent, managing director Ryan Martin and director John Crump. The industrial team has recently structured and closed more than three million square feet of industrial land developments between developers and institutional capital, including debt structuring.

The HFF debt placement team was led by director Brian Torp.

“This transaction represents the continued demand from both developers and capital to meet the increasing requirements of companies seeking Class A distribution space within close proximity to the greater Los Angeles area and Ports of Los Angeles and Long Beach,” Brent said.  “This will be a great project for Bridge Development and continues their success in penetrating the infill markets of greater LA.”

  

“The infill development market is highly dynamic and efficient, so it requires a strong understanding of capital markets and keen perspective on fundamentals going forward,” said Martin.  “The ability to source equity and debt options under accelerated timeframes can mean the difference in a successful development.  The Bridge Development team did an outstanding job and we appreciated the opportunity to assist them in the process.”

  

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

Kristen M. Murphy

Director, Marketing

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

http://bridgedev.com

www.robhana.com

HFF closes $21.5 million sale of two Charlotte, NC call center/light industrial assets

  

Whitehall I and II Call Centers, Charlotte, NC

CHARLOTTE, NC –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $21.5 million sale of Whitehall I and II, two call center/light industrial assets totaling 204,800 square feet in Charlotte, North Carolina. 

HFF marketed the property on behalf of the seller, Fort Properties, and procured the buyer, a joint venture between CIP Real Estate and CrossHarbor Capital Partners LLC.  

CIP Real Estate is an owner and manager of more than 800,000 square feet of industrial and flex product in five parks in Charlotte, including Charlotte Commerce Center and Coffey Creek International Business Center, which are in close proximity to Whitehall I & II.

Ryan Clutter

Whitehall I and II are located at 2915 and 2745 Whitehall Park Drive off of Interstate 485 and South Tryon Street in the southwest Charlotte submarket. 

The properties are part of the Whitehall development, a 700-acre community comprised of a technology park, corporate office park, light industrial park, retail district and several residential districts.

Tenants at the fully leased property include Xerox, Osram Sylvania, Burkert Contromatic Corporation and Treffert Coatings USA.

The HFF investment sales team representing the seller was led by senior managing directors Ryan Clutter and Christopher Norvell. 

"Whitehall I and II offered a compelling opportunity to the marketplace as the assets are best-in-class properties catering to a diverse base of office, warehouse, technology, and call center type users.  These assets are poised to continue to experience strong leasing demand and generate attractive investment returns," commented Clutter.

"The sale of Whitehall I and II is yet another data point signifying the strength and appeal of the Charlotte market to institutional investors.  The market continues to attract more and more investor interest as the city grows creating a favorable environment for sellers," added Clutter.

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

Kristen M. Murphy

Director, Marketing

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.crossharborcapital.com