HFF closes $42 million sale of a dual grocery-anchored shopping center near San Diego, CA

Rendering of Gateway Marketplace, Chula Vista, CA      (Photo by Patrick Tang)

Gleb Lvovich

NEWPORT BEACH, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $42 million sale Gateway Marketplace, a 127,861-square-foot shopping center anchored by both Smart & Final and Aldi in the San Diego county community of Chula Vista, California.

HFF marketed the property on behalf of the seller, a partnership between Brixton Capital and ALTO Real Estate Funds.  An affiliate of American Assets Trust, Inc. purchased the asset free and clear of existing debt.

Gateway Marketplace was completed in 1997 and redeveloped in 2016.  In addition to the dual grocery anchors, the 98.7-percent-leased center is also home to Party City, Hobby Lobby, Mattress Firm, Little Caesars and AT&T. 

Gateway Marketplace is situated on 9.95 acres at 40 North 4th Avenue in Chula Vista, which is approximately seven miles from downtown San Diego and Tijuana. 

The center is located at the northwest corner of North 4th Avenue and C Street, which have combined traffic counts of 43,400 vehicles per day.  Additionally, the center has direct east and westbound access to the South Bay Freeway, which is trafficked by approximately 146,500 vehicles per day.   

The HFF retail investment sales team representing the seller was led by managing directors Gleb Lvovich and Bryan Ley.  Mike Moser at Retail Insite assisted as a local market contact.

“We are excited to have closed one of the first Aldi-anchored shopping center sales in Southern California and look forward to working on many more as they continue their West Coast rollout,” Lvovich said.  “Aldi’s strategy of opening in densely-populated, urban trade areas lines up well with investor demand, which is focused on placing capital in urban markets.”

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

Kristen M. Murphy

Director, Public Relations

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://www.brixtoncapital.com

www.americanassetstrust.com.

www.alto-investments.com

 or follow and connect with ALTO on LinkedIn, Facebook and Twitter.

HFF closes $38 million sale of and arranges $18 million financing for mixed-use property on Fifth Avenue in Manhattan

      325 Fifth Avenue, Midtown Manhattan, NY                                                               

Andrew Scandalios

NEW YORK, NY –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $38 million sale of and arranged $18 million in acquisition financing for a fully leased retail property and parking garage totaling 35,262 square feet located at 325 Fifth Avenue in Midtown Manhattan.

HFF marketed the property on behalf of the seller.  HUBB NYC Properties purchased the asset free and clear of existing financing.  

Additionally, working on behalf of the new owner, HFF placed the 10-year, fixed-rate loan with Allianz Real Estate of America.  Loan proceeds were used to acquire the property.

Completed in 2005, 325 Fifth Avenue consists of two condominium units: a 5,972-square-foot, Class A, ground-floor retail condominium that is leased to Bonchon Chicken, I Love Souvenirs and Hanmi Bank and a 174-space, 29,290-square-foot, below-grade parking garage leased to GGMC Parking.

 Situated between 32nd and 33rd Streets in Midtown Manhattan’s Murray Hill submarket, the property is directly across the street from the Empire State Building, New York City’s most iconic tourist attraction, and steps from New York’s Herald Square.

Rob Rizzi

 The mixed-use property is within walking distance of multiple subway stations accessing 15 subway lines, and Grand Central Terminal, Port Authority and Penn Station are nearby.

The HFF investment sales team was led by senior managing director Andrew Scandalios and managing director Rob Rizzi.

HFF’s debt placement team was led by senior managing director Michael Gigliotti and managing director Scott Aiese.

“HUBB NYC is very excited about this transaction and appreciative of the opportunity to work with the sellers and HFF,” said Jesse Terry, HUBB NYC Director of Acquisitions.  “We can only hope to acquire more assets like this one.” 

“We're thrilled to close the sale of this property, which is one of the largest Manhattan retail trades in 2017,” Rizzi said.  “The transaction demonstrates that there is still a healthy appetite for retail investments, particularly those with strong locations and stable cash flow.”

“A number of lenders aggressively pursued this opportunity; however, Allianz Real Estate of America was ultimately selected due to its outstanding track record and strong long-term, fixed-rate quote,” added Aiese.

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

Kristen M. Murphy

Director, Public Relations

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 the sale of Cameron Brown Building in downtown Charlotte, NC

Cameron Brown Building, 301 South McDowell Street, Downtown Charlotte, NC

Brock Cannon

CHARLOTTE, NC –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of the Cameron Brown Building, a 13-story, 184,144-square-foot, multi-tenant office building in downtown Charlotte, North Carolina.

HFF marketed the property on behalf of a special servicer, and procured the buyer, The Fallon Company, LLC.

Located at 301 South McDowell Street, The Cameron Brown Building is situated in the re-surging Second Ward of Uptown Charlotte within walking distance of many of Charlotte’s most visible points of interest, including Bank of America’s headquarters, Wells Fargo’s East Coast headquarters, Spectrum Arena and the Bank of America Stadium. 

The property has exceptional transit access being located adjacent to Interstate 277 and only four blocks from the 3rd Street/Convention Center light rail station.

The HFF investment sales team representing the seller was led by senior managing director Ryan Clutter, managing director Brock Cannon, director Scot Humphrey and associate director Chris Lingerfelt.

Scot Humphrey

“The Cameron Brown building is ideally positioned in Uptown Charlotte’s path of growth and is an extremely sought-after piece of real estate that bridges that gap between Midtown and Uptown,” Lingerfelt said. “These unique characteristics, among others, generated significant demand from local and out-of-town capital alike.”

“Institutional capital continues to aggressively seek value-add investment opportunities in strong urban-infill submarkets like Uptown Charlotte,” added Clutter. “The Cameron Brown building’s investment profile squarely fits this criteria, which helped facilitate a hyper-competitive marketing campaign. 

“We anticipate that a strong selling environment will continue for assets of this nature for the foreseeable future.” 

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

Kristen M. Murphy

Director, Public Relations

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.falloncompany.com.

  

HFF closes $43.55 million sale of a grocery-anchored retail center in California’s Central Coast

Marigold Center, San Luis Obispo, CA                          (Photo by Patrick Tang)

Gleb Lvovich

NEWPORT BEACH, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $43.55 million sale of Marigold Center, a 174,428-square-foot, grocery-anchored shopping center in the Central Coast community of San Luis Obispo, California.

HFF marketed the property on behalf of the seller, Kimco Realty Corp.  Donahue Schriber purchased the asset free and clear of existing debt.

Anchored by Vons, the 89-percent-leased Marigold Center is also home to Michaels, CVS Pharmacy, Starbucks, Carl’s Jr., Wild Birds Unlimited, T-Mobile, Fantastic Sams, Tuesday Morning and Dollar Tree. 

The center is situated on 17.54 acres at 3900 Broad Street, which, due to its location at the intersection of Broad Street and Tank Farm Road, has traffic counts of approximately 47,000 vehicles per day.

 Marigold Center is just north of the airport and in the most affluent part of the city, which is surrounded by world-renowned Edna Valley wineries.  More than 33,700 residents earning an average annual household income of $85,490 live within a three-mile radius of the center.

Bryan Ley

The HFF retail investment sales team representing the seller was led by managing directors Gleb Lvovich and Bryan Ley and director Eric Kathrein.

“The HFF team was able to navigate near term tenant turnover at the property by demonstrating the potential for future repositioning and NOI growth at Marigold Center,” Lvovich said.  “Well-located retail real estate with strong fundamentals continues to demand investor attention and a yield premium.”

“With Vons’ top-tier grocery sales, Marigold Center is one of the best community centers in San Luis Obispo,” Ley added.

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

Kristen M. Murphy

Director, Public Relations

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

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www.twitter.com/kimcorealty.

www.DonahueSchriber.com

www.hyminvestments.com.

HFF secures $80 million in acquisition financing and advises on the sale of Suffolk Downs in Massachusetts

Jennifer Keller

John Fowler

BOSTON, MA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured $80 million in acquisition financing for Suffolk Downs, a 161.2-acre, transit-oriented development site located in East Boston and Revere, Massachusetts.

Working on behalf of the borrower and buyer, The HYM Investment Group, LLC, HFF placed the short-term, floating-rate loan with Bank of the Ozarks.  Additionally, HFF acted as an advisor to the buyer in the transaction. 

Suffolk Downs is located between East Boston and Revere, just four miles from Boston’s downtown commercial core.  

The site comprises 108.8 acres in Boston and 52.4 acres in Revere and is adjacent to Route 1A, allowing quick vehicular access to downtown Boston and Logan International Airport.

 The transit-oriented property is also served by two MBTA Blue Line stations, Suffolk Downs and Beachmont, providing access to downtown Boston in less than ten minutes. The site is currently the location of the Suffolk Downs horse racing facility, which will have its last racing season in summer of 2018.  

Anthony Cutone

The HFF team was led by executive managing director John Fowler, managing director Anthony Cutone, director Jennifer Keller and associate Andrew Gray. 

“We are thrilled to be involved in the capitalization of one of the largest and most exciting mixed-use projects in East Boston and Revere,” said Fowler.  “HYM is undoubtedly the right team for the project, and to work with the local communities to bring much needed transit-oriented housing, retail, amenities and businesses to the area.”

The HYM Investment Group, LLC is a Boston-based real estate company focused on the acquisition, development and management of complicated urban mixed-use projects. 

HYM is currently leading the development of over nine (9) million square feet of mixed-use development in Greater Boston, including the following notable and complex projects: Bulfinch Crossing (Government Center Garage redevelopment), NorthPoint/Twenty|20 and Suffolk Downs Redevelopment.

 In addition, HYM is the co-developer of 80 Guest Street (Boston Bruins Training Facility at Boston Landing), 125 Guest Street (Luxury Apartment Tower at Boston Landing) and Waterside Place (Seaport District Luxury Apartment Tower).

  

Andrew Gray

HYM is focused on creating significant value for investors by recognizing real estate opportunities where others may not.  

Each real estate asset is treated as a unique real estate opportunity, and each asset plan seeks to cause the real estate to reconnect, energize and enhance the urban communities of which it is a part.

 For more than 35 years HYM’s principals have been working on real estate ventures in the Boston, New York and Washington, D.C. corridor. 

For more information visit www.hyminvestments.com.

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

Kristen M. Murphy

Director, Public Relations

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

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HFF closes $24.5 million sale of 3-building office park in Hillsboro, OO

Sunset Corporate Park, Hillsboro, OR                   (Photo by Red Studio Inc.)

Nick Kucha

PORTLAND, OR –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $24.5 million sale of Sunset Corporate Park, a three-building, Class A suburban office park located in Hillsboro, Oregon.

HFF marketed the property on behalf of the seller and procured the buyer, Swift Real Estate Partners. 

Sunset Corporate Park is located adjacent to Intel’s $3 billion Ronler Acres Campus at 22823, 22845 and 22867 NW Bennett Street in Portland’s Silicon Forest area. 

The property is two miles from Orenco Station (Hillsboro’s urban town center) and has freeway visibility along Highway 26.  

Completed in 1999, the property is 92.5 percent leased to tenants, including LAIKA, Volkswagen, Nikon, SCREEN, first insight and CHS+.  The property also includes 6.85 acres of developable land.

The HFF investment sales team representing the seller was led by senior managing director Nick Kucha and associate Logan Greer.

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

Kristen M. Murphy

Director, Public Relations

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

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Canada Pension Plan Investment Board Announces Definitive Agreement to Acquire Parkway, Inc.

Hilary Spann

TORONTO, CANADA and HOUSTON, TX /PRNewswire/ -- Canada Pension Plan Investment Board ("CPPIB") and Parkway, Inc. (NYSE: PKY) ("Parkway") announced today that they have entered into a definitive agreement under which CPPIB will acquire 100% of Parkway, a Houston-based real estate investment trust, for US$1.2 billion, or US$23.05 per share.

The transaction is not subject to a financing condition and is expected to close in the fourth quarter of 2017, subject to customary closing conditions, including approval by Parkway's stockholders.

"Parkway fits well with CPPIB's long-term real estate strategy to hold stable, highquality assets in large U.S. markets," said Hilary Spann, Managing Director, Head of U.S. Real Estate Investments, CPPIB.  "Through this investment, CPPIB gains additional scale in Houston."

James R. Heistand

Parkway owns the largest office portfolio in Houston, totaling approximately 8.7 million square feet across 19 properties.

 Located in the desirable areas of Westchase, Greenway and Galleria, the high-quality office properties are 87.6% leased as of March 31, 2017, and anchored by a broad mix of strong tenants in financial services, technology and commodities businesses.

"CPPIB shares our view of the long-term resiliency of the Houston market, and we believe this transaction demonstrates our commitment to enhancing stockholder value," stated James R. Heistand, Parkway's President and Chief Executive Officer.

"We believe there are still some near-term headwinds in the office sector for

Houston, but the implied asset valuation of this transaction shows CPPIB's

appreciation for the high-quality portfolio we have assembled and the near-term

stability it provides during the current downturn in the market."

Canada Pension Plan Investment Board (CPPIB) is a professional investment

management organization that invests the funds not needed by the Canada

Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and

beneficiaries.

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

Kristen M. Murphy

Director, Public Relations

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

Hanley Investment Group Negotiates Sale of Grocery-Anchored Shopping Center in Corona, CA for $28.6 Million

Sierra Del Oro Towne Centre, Green River Road and Serfas Club Drive, Corona, CA

Ed Hanley

CORONA, CA - Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm completed the sale of Sierra Del Oro Towne Centre, a 110,004-square-foot Ralphs grocery-anchored shopping center located at the signalized intersection of Green River Road and Serfas Club Drive in Corona, Calif.

The purchase price was $28.6 million. According to CoStar, this is the second grocery-anchored property to trade in the Inland Empire in the last 24 months.

Hanley Investment Group Executive Vice President Pat Kent, along with President Ed Hanley and Senior Associate Corey Olson, represented the seller, Cornerstone Development Partners of Irvine, Calif. The buyer, Phillips Edison & Company of Cincinnati, Ohio, represented themselves.

Built in 1991, Sierra Del Oro Towne Centre shopping center is located on 11 acres at 2621-2721 Green River Road in Corona. Tenants include Ralphs, Dollar Tree, Anytime Fitness, Bank of America, Jack in the Box, Domino’s Pizza, Children’s Montessori Center, Kumon Math and Reading Center, Mercury Insurance and Postal Annex.

Pat Kent

The shopping center was 94 percent occupied with strong historical tenants and anchors. According to Hanley Investment Group, 88 percent of the current tenancy has occupied space at the property for more than five years and 70 percent of the current tenancy has occupied space for over 10 years.

“The sale of Sierra Del Oro represented a unique opportunity to acquire an entire grocery-anchored shopping center, including the anchors, shop tenants and pad building ground leases in an affluent market located in Southern California,” said Kent. “Ralphs has operated at the shopping center since it was originally constructed in 1991 (26+ years) and executed a five-year extension in 2015.”

According to Kent, Sierra Del Oro’s Ralphs grocery store is the only “traditional” grocery store within a three-mile radius serving the westerly part of the Corona market and Ralphs has a captured customer audience of nearly double that of its competitors.

Corey Olson

Kent added that the average household income within a one-mile radius of the property is in excess of $104,000 and there are more than 156,000 people within a five-mile radius. 

The property is conveniently situated less than one mile from the Serfas Club Drive exit and two miles from the Green River Road exit on the 91 Freeway (with 275,000 cars per day). 

“Since 2014, there have been 25 retail properties that have traded for over $20 million in Riverside and San Bernardino counties, according to CoStar; only six of these properties were grocery-anchored, which speaks to the rarity of this type of property,” said Kent.

 “In that same period of time, there have been 195 retail properties that have traded for over $20 million in Los Angeles, Orange and San Diego counties, including five grocery-anchored retail properties that changed hands in this year alone.”

“The market for grocery-anchored centers in infill markets remains strong with interest from both the institutional buyers and private 1031 exchange buyers,” said Hanley. 

“So far, this year, we have seen an increase in the supply as sellers recognize that this is an ideal time to sell. However, there still remains limited properties available similar to the Sierra Del Oro in both size and quality.”

Hanley Investment Group has several grocery-anchored shopping centers listed for sale. “Buyers are willing to look in both primary and secondary markets outside of California in search of higher returns and more inventory,” Hanley noted. 

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

Anne Monaghan

MONAGHAN COMMUNICATIONS, INC.

anne@MonaghanPR.com

830.997.0963

www.hanleyinvestment.com

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