Saturday, April 22, 2017

Hanley Investment Group Completes Sale of Brand New Single-Tenant Starbucks at Record-Breaking Cap Rate in Bakersfield, CA

Starbucks, Bakersfield, CA

Bill Asher
BAKERSFIELD, CA – Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm has completed the sale of a brand-new construction single-tenant corporate Starbucks with a drive-thru located in Bakersfield, Calif.

The purchase price of $2.65 million represented a cap rate of 4.09 percent and $1,432 psf. According to CoStar, this sale achieved a record low cap rate for a single-tenant Starbucks in Bakersfield and a record high price per square foot in the city.

Hanley Investment Group Executive Vice President Bill Asher and Associate Jeff Lefko and represented the seller, Evergreen Development. Spanning the last 42 years, Evergreen is a national retail and multi-family development company with heavy emphasis on developing projects in California, Colorado, Arizona and now Utah.

The buyer, a private investor from Los Angeles, was represented by Joe Bolognese of Major Properties Real Estate in Los Angeles.

Built in 2017, the 1,850-square-foot building is situated in the southeast quadrant of Colony Street and Panama Lane in Bakersfield on .81 acres.

Jeff Lefco
 The property is in close proximity to the 99 Freeway Panama Lane on/off ramp, benefitting from more than 128,000 cars per day and nearby national and regional credit tenants including Walmart Supercenter, Albertsons, Aldi, AutoZone, Carl’s Jr., Family Dollar, In-N-Out, Jack in the Box, Lowe’s, O’Reilly Auto Parts, McDonald’s, Pizza Hut, Sleep Train, Vallarta Supermarkets and Walgreens.

Traffic is also driven to the area by the nearby Bakersfield Auto Mall, made up of 21 different major auto dealerships. Additionally, there are multiple new housing developments from builders Lennar, CalAtlantic and Legacy Homes in the surrounding area.

Lefko adds that there are approximately 223,000 people with an average household income of nearly $62,000 within a five-mile radius of the property.

“We utilized our extensive database to procure an all-cash 1031 exchange buyer prior to formally marketing the property,” said Asher. “Additionally, we facilitated a successful pre-sale strategy and closed escrow approximately one month prior to Starbucks formally opening for business and paying rent.” 

Joe Bolognese
According to Asher, “Starbucks was originally located at the northeast corner of Panama Lane and Colony Street since September 2004, without a drive-thru. The new location (with a drive-thru) is scheduled to formally open at the end of April and will draw from an established customer base in the trade area for over 12 years.”

Asher commented, “Average store sales are significantly greater in Starbucks locations that have a drive-thru, which has created a goal for Starbucks to have drive-thrus in half of its stores by 2020. By 2019, Starbucks expects to grow from $16 billion to $30 billion in revenue, with 60 percent of all new locations including a drive-thru.”

“Single-tenant Starbucks properties continue to be one of the most sought-after triple-net investments from private investors across the country,” said Asher. ”Corporate Starbucks sites typically offer strong underlying real estate fundamentals combined with a long-term corporate guaranteed lease and rental escalations, providing investors with a secure income stream and rental escalations as a hedge against inflation.” 

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

Marcus & Millichap Brokers $3.1 Million Sale of Bank of America Net-Leased Site in Windsor, CT

Barry M. Wolfe
WINDSOR, CT – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Bank of America, a 4,650-square foot net-leased property located in Windsor, CT, according to Ryan Nee, Vice President/Regional Manager of the firm’s Fort Lauderdale office. The asset sold for $3,100,000.

Barry M. Wolfe, Senior Vice President Investments, and Alan Lipsky, Senior Associate, both in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.

Wolfe states, “Given the strength of the tenant and location, we had very strong activity and multiple offers. We have continued to see very strong activity in the market having sold nearly thirty individual properties over the past quarter for our clients with a market value of more than $65 million.”

Bank of America is located at 1045 Kennedy Road in Windsor, CT.  Kennedy Road has a daily traffic count of more than 15,000 vehicles, and directly off Interstate 91 with a daily traffic count of more than 130,000 vehicles.  The property is surrounded by national retailers that include Target, Dollar Tree, Mattress Firm, Petco, Stop & Shop, GNC and Chili's Bar & Grill.

J.D. Parker, Senior Vice President and Division Manager, is Marcus & Millichap’s broker of record in Connecticut.

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

Ryan Nee
Vice President / Regional Manager, Fort Lauderdale

(954) 245-3400

HFF arranges $236 million financing for development of luxury condominium tower in Miami, FL

Brickell Flatiron Condominiums, Financial District, Downtown Miami, FL

MIAMI, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged financing totaling $236 million for the development of Brickell Flatiron, a 64-story, 549-unit, ultra-luxury residential condominium tower located in Miami’s Brickell financial district.

HFF worked on behalf of the developer, Miami-based CMC Group, to secure a $138.3 million senior loan and a $97.968 million mezzanine loan.  Loan proceeds will be used to complete the project and market the remaining units.

Jim Dockerty
Brickell Flatiron is being constructed on a 1.1-acre site at 1001 South Miami Avenue across from The Shops at Mary Brickell Village and within walking distance of the Brickell City Centre mixed-use development. 

Upon completion in mid-2019, the project will be the tallest residential tower south of New York City, complete with world-class amenities such as a rooftop amenity deck with signature spa, fitness center, swimming pool with cabanas and juice bar; private movie theater; meeting rooms; specialty wine cellar; concierge service; and state-of-the-art smart home technology.

 Soaring 736 feet above street level, the property was designed by Revuelta Architecture International with features, including all-glass elliptical balconies, custom Italian finishes, professional-grade German appliances and panoramic views of Biscayne Bay and the downtown skyline.  Sales to date at Brickell Flatiron are in excess of $300 million.

The HFF debt placement team representing the developer was led by managing director Jim Dockerty.

“Even though the debt market was extremely tight for luxury condominium projects such as Brickell Flatiron, CMC’s extraordinary track record and ability to deliver best-in-class product attracted strong interest in the financing,” Dockerty said.

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

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

HFF arranges $115.5 million sale of and acquisition financing for two Class A CBD office assets in Charlotte, NC and Sarasota, FL

First Citizens Bank Plaza, Uptown Charlotte, NC

Ryan Clutter
 CHARLOTTE, NC –– Holliday Fenoglio Fowler, L.P. (“HFF”) announced it has closed the $115.5 million sale of and arranged acquisition financing for a two-building office portfolio comprising First Citizens Bank Plaza in Uptown Charlotte, North Carolina, and Sarasota City Center in Downtown Sarasota, Florida.

HFF marketed the portfolio on behalf of the sellers, Osprey East, LLC and Osprey s.a., Ltd.  The Dilweg Companies (“Dilweg”), based in Durham, North Carolina, purchased the properties. 

Additionally, HFF worked on behalf of Dilweg to place fixed- and floating-rate financing with Torchlight Investors, based in New York City.  The structured financing partially funded the acquisition and also has the capacity to fund near-term planned capital improvements and leasing-related costs on the properties.

First Citizens Bank Plaza is a 476,987-square-foot, Class A, 23-story multi-tenant office building comprising two towers with sweeping views of the new Charlotte Knights baseball park, Charlotte skyline and Tryon Street.

 Developed in 1986 and renovated in 2002, the property features a seven-story parking garage with 701 stalls, several on-site restaurants and a bank.  Currently 29 percent occupied, tenants include First Citizens Bank; Collabera, Inc.; Manpower; Voya Financial Services; American Heart Association and Strategic Staffing.

Hermen Gonzalez
 First Citizens Bank Plaza is located at 128 South Tryon Street in the core of downtown Charlotte between West Fourth and Trade Streets and two blocks from the new Gold Line, an Uptown streetcar system that connects to the Charlotte light rail system. 

The 245,293-square-foot Sarasota City Center is a two-tower, Class A office building with 13 floors in the north tower and three floors in the south tower.  

Completed in 1989, the 88-percent-occupied property is home to multi-national, Fortune 500 and investment credit tenants, including Boar’s Head, RBC Capital Markets, Merrill Lynch and Wells Fargo.

 Additionally, the property features panoramic views of downtown Sarasota and the Sarasota Bay, a six-story parking garage with 625 stalls, on-site restaurant and bank, hair salon and spa, dry cleaners, fitness center, lockers and landscaped courtyard with tables and chairs. 

Situated one mile from the Gulf of Mexico, Sarasota City Center is located at 1819 Main Street on the northwest corner of Main Street and Links Avenue in the heart of downtown Sarasota.  The property’s central location puts it within walking distance of several downtown amenities, including numerous restaurants and retail, Pane Park, Sarasota County Courthouse and a Whole Foods Market.
Sarasota City Center, Sarasota, FL
The HFF investment sales team representing the seller was led by senior managing director Ryan Clutter, senior managing director Hermen Rodriguez, director Scot Humphrey, associate director Chris Lingerfelt and associate Tracey Goo.

“The sale of First Citizens Bank Plaza and Sarasota City Center demonstrates the appeal in the marketplace for well-located, CBD assets with notable upside opportunities,” Clutter said. 

“Both of these exceptional assets are located in strong rent growth corridors and provide the opportunity to achieve attractive returns upon leasing up the remaining vacant space in each asset.

“ We received strong interest in these assets and anticipate continued strong demand for similar offerings through the remainder of 2017.  The leasing fundamentals in most southeastern markets are very strong, and investment capital is taking note.” 

Travis Anderson
“First Citizens Plaza offers tremendous upside to its new ownership group and is one of the best-located office buildings in the Uptown Charlotte area,” Lingerfelt added.

 HFF’s debt and equity placement team representing the buyer was led by senior managing director Travis Anderson and director Brent Bowman.

“First Citizens Bank Plaza and Sarasota City Center are two, well-located office buildings that will greatly benefit from a fresh infusion of capital as well as Dilweg’s strong track record of successfully stabilizing value-add office properties,” Anderson said.

“While the significant vacancy of First Citizens made acquisition financing challenging, ultimately the high-quality nature of the assets, prime CBD locations and experienced sponsorship attracted many lenders to the table,” Bowman added.

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

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

HFF secures $41.9 million refinancing for Colorado Springs apartments

Advenir at Spring Canyon Apartments, Colorado Springs, CO
Eric Tupler
DENVER, CO –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $41.9 million refinancing for Advenir at Spring Canyon, a 292-unit, garden-style apartment community in Colorado Springs, Colorado.

HFF worked exclusively on behalf of Advenir, Inc. and Dome Equities to place the seven-year, floating-rate loan with Freddie Mac’s Green Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.

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

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

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

HFF secures $23 million financing for 48-unit condominium development in Walnut Creek, CA

Riviera Condominiums, Walnut Creek, CA

Jordan Angel
SAN FRANCISCO, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured $23 million in financing for the development of the Riviera Condominiums, a 48-unit, Class A development adjacent to the Bay Area Rapid Transit (BART) station in Walnut Creek, California.

HFF worked on behalf of the borrower, a joint venture led by The ADDRESS Company, to secure the floating-rate construction loan through a regional bank.

Riviera Condominiums is being constructed on a 0.52-acre site at 1605 Riviera Avenue immediately north of the BART system’s Walnut Creek station.  The transit-oriented community is also walking distance to downtown Walnut Creek’s retail and entertainment amenities, and is just east of Interstate 680. 

With construction underway, the property will have 48 flat- and loft-style for-sale units upon completion.  Community amenities will include a rooftop common area, urban courtyard, outdoor grilling area, clubroom and a gated two-level parking garage with 82 spaces.

HFF’s debt placement team was led by directors Jordan Angel and Bryan Clark and analyst Zachary Kersten.

“When complete, the Riviera Condominiums will represent the best units available in the Walnut Creek market with immediate access to transit and all that the area has to offer,” Angel said

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

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |