NAI Realvest Negotiates 3 New Leases, Filling More Units at Poinciana CommerCenter in Kissimmee, FL

Michael Heidrich

KISSIMMEE, FL – NAI Realvest completed three long-term lease agreements at Poinciana CommerCenter East in Kissimmee for businesses who are moving or expanding into new flex space at the facility located on Business Center Lane.

NAI Principals Michael Heidrich, Matt Cichocki and Kevin O’Connor brokered the transactions representing the landlord, Small Bay Partners, LLC of Maitland and the tenants.  

Trubarber, LLC leased 1,620 square feet at 1725 Business Center Lane to expand space for its operations by over 60 percent. The barber products supplier relocated to its new space from 1799 Business Center Lane/

Matt Cichocki

That unit with 1,350 square feet has already been leased again to Xtreme Disaster Recovery, LLC, a major fire and water damage restoration firm with locations throughout the Southeast.   

 Commercial landscape firm Southern Outdoor, LLC, of St. Cloud signed a new lease for 1827 Business Center Lane , a unit with 1,890 square feet. 

Contacts:

Michael Heidrich, Kevin O’Connor or Matt Cichocki, Principals, NAI Realvest, 407-875-9989 

mheidrich@realvest.com; koconnor@realvest.com;

MCichocki@realvest.com

Robin L. Webb, CCIM, Cha, CHB, CRB, CPM, MRICS, Managing Director, NAI Realvest 407-875-9989 Rwebb@realvest.com

Beth Payan,  Larry Vershel Communications, 407-644-4142 Lvershelco@aol.com.     

www.NAIRealvest.com.

BKM Capital Partners Acquires 700,000-SF, 14-Building Multi-Tenant Industrial Portfolio in Otay Mesa, CA

Part of BKM's 14-Building Industrial Portfolio Acquired
in Otay Mesa, CA

            SAN DIEGO, CA (Sept. 4, 2018) – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired the Otay Mesa Industrial Portfolio, a six-property industrial portfolio that encompasses 14-buildings totaling 703,215 square feet in the Otay Mesa submarket of San Diego, California.

      The Otay Mesa Portfolio is comprised of six properties located at:

• Borderpoint Business Park, 6754, 6744 & 6794 Calle De Linea
• San Diego International Center, 8830 Siempre Viva Road
• Faraday Industrial Park, 2325, 2345, 2365, 2375 Michael Faraday Drive; 2350 Marconi Place
• Otay Business Center, 6987 & 6995 Calle De Linea
• Frontera Business Center, 2695 Customhouse Court
• Otay Crossing Business Park, 2340 Enrico Fermi Drive & 10025 Siempre Viva Road

Cushman and Wakefield represented the seller, Stockbridge Capital Group.

Brian Malliet

            “This was a rare opportunity to acquire a portfolio of critical mass at a discount to its replacement cost in one Southern California’s fastest growing submarkets,” says BKM Capital Partners CEO and Co-Founder, Brian Malliet. 

“Otay Mesa has undergone rapid expansion over the last few years and is poised for long-term growth. In fact, industrial vacancy in the region is at an all-time low of 4.5 percent and industrial rents have increased by more than 16-percent in the last two years alone.”

            The Otay Mesa Industrial Portfolio is strategically located adjacent to the USA-Mexico international border, which is one of the busiest border crossings in the Western Hemisphere with an estimated $243 billion of goods exported across it each year.

            “This strategic location provides tenants with unmatched access across the border, as well as direct access to the SR-905 and I-5 freeways,” explains Malliet. 

Brett Turner

“Major corporations such as Kraft, Sharp, Bose, General Dynamics and Camelback have already taken large positions in Otay Mesa in order to bolster access to key components of the supply chain. 

"With the opening of the new Port of Entry to Mexico (Fwy-11) in late 2019, demand for high-quality industrial assets in the region will continue to grow, further placing upwards pressure on rental rates.”

            The multi-tenant industrial portfolio is currently 97-percent occupied by a diverse range of 44 different tenants with in-place rents approximately 24-percent below market value.

            “The nearly fully-occupied asset provides immediate stabilized cash flow while the diversification among tenants, staggered lease expirations, and varying unit sizes limit rollover exposure,” says Brett Turner, Director of Acquisitions at BKM Capital Partners. 

“Additionally, more than 60-percent of lease expirations are scheduled to expire in the first 3 years, which will allow BKM to quickly increase NOI by bringing rents up to market as leases roll.”

BKM Capital Partners also plans to implement a series of cosmetic capital improvements to the property including new paint, landscaping and signage as well as structural improvements such as updated HVAC systems and new roofs.

“These properties are highly functional assets that are in need of a refresh or modernization,” says Turner. “This is consistent with our strategy of acquiring distressed, institutional-quality assets in strong locations where we can create value through strategic renovations and hands-on management.”

Contact:

Alex Caswell/Lexi Astfalk

Brower Group

(949) 955-7940

acaswell@brower-group.com

www.bkmcapitalpartners.com

HFF announces acquisition financing for newly built multi-housing community in Houston, TX

Cortney Cole

HOUSTON, TX – Sept. 4, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces acquisition financing for Ascension on the Bayou, a newly built, 280-unit, Class A multi-housing community in Houston, Texas.

The HFF team worked on behalf of the borrower, Tarantino Properties, to secure a 10-year acquisition loan with a fixed interest rate of 4.43 percent with six years of interest-only payments.

Ascension on the Bayou was completed in 2017 and is situated along Buffalo Bayou at 150 W. Sam Houston Parkway at the convergence of Houston’s Energy Corridor, Westchase and Memorial City neighborhoods. 

The LEED Silver, mid-rise podium-style property offers immediate access to Terry Hershey Park and multiple employment, retail, dining and entertainment amenities. 

 Ascension on the Bayou features a variety of one- and two-bedroom floor plans, some of which also include a study, and high-end finishes, island kitchens with breakfast bars, full-size washers and dryers, recessed lighting, walk-in closets, and patios or balconies providing unobstructed views of the woods along the bayou. 

Community amenities include an infinity-edge pool, grilling area, fire pit, covered fitness plaza with ping pong tables, indoor fitness center, entertainment lounge, business center and pet park.

HFF’s debt placement team representing the borrower included managing director Cortney Cole and analyst Sterling Curry.

 CONTACTS:

CORTNEY COLE

HFF Managing Director

(713) 852-3500

ccole@hfflp.com

OLIVIA HENNESSEY

HFF Public Relations Specialist

(713) 852-3500

ohennessey@hfflp.com

Marcus & Millichap Brokers $3.47 Million Sale of Miami Airport Hotel Site in Miami Springs, FL

Ahmed Kabani

MIAMI SPRINGS, FL, Sept. 4, 2018 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Miami Airport Hotel Site, a 40,500-square foot Property Type in Miami Springs, FL, according to Scott Lunine, Regional Manager of the firm’s Miami office. The asset sold for $3,470,000.

Ahmed Kabani, First Vice President, Investment Sales and Senior Director at Marcus Millichap who represented the seller in this transaction,  had the exclusive listing to market the property on behalf of the seller, a limited liability company. 

Miami Airport Hotel Site is located at 5425 NW 36th St in Miami Springs, FL.

“The site is perfectly positioned to capitalize on the enormous growth at Miami Airport where occupancy is over 75% plus and major hotel chains are actively looking for good site in this market,” Kabani said.

The buyer is south Florida developer and hotel owner and planning to build 150 rooms at this site.

Contact:

 Scott Lunine

Vice President / Regional Manager, Miami

(786) 522-7000  or 

Daniella Aragon,

Daniella.Aragon@marcusmillichap.com

Megatel Homes Expands Wade Settlement Townhome Development with Acquisition of 100 Additional Lots in the Dallas-Fort Worth Metroplex

Wade Settlement, Frisco, TX DALLAS, TX – Megatel Homes, one of the most successful homebuilders in the state of Texas, has acquired 100 finished lots for development of three- and four-bedroom, three-story townhomes in Wade Settlement, a residential community in the Dallas suburb of Frisco. The 100 lots are in addition to 200 lots the company already has under contract in the community. “Frisco is one of the fastest growing and most desirable areas in the Dallas-Fort Worth metroplex, with homes typically priced upwards of $450,000,” said Zach Ipour, co-founder of Megatel Homes. “This acquisition aligns perfectly with our affordability strategy and allows us to expand our Wade Settlement development with reasonably priced townhome product at a starting price in the low $300,000s.” Zach Ipour The additional lots purchased by Megatel are finished and ready for construction, saving Megatel Homes substantial time and money, thereby increasing the gross home sales potential to more than $100 million. Located at the intersection of Parkwood Boulevard and Highway 289, 22 of the townhomes have been pre-sold ahead of the opening of the community model home, which is expected to be completed in September 2018.  Megatel anticipates that the full Wade Settlement community will be sold out with the next 18 to 24 months. The lots were purchased from Siena Homes, a competing builder, allowing Megatel Homes to better control the price point of the community and reduce competition in the surrounding area. Contact:  Lauren Burgos Spotlight Marketing Communications 949.427.1399 lauren@spotlightmarcom.com

Cushman & Wakefield Report: Record Low Vacancies Highlight Bullish South Florida Multifamily Market​

Calum Weaver

MIAMI, FL,  Sept. 4, 2018— Cushman &Wakefielddone deals has released its 2018 South Florida Multifamily Midyear Market Update.

The semi-annual report, authored by Executive Managing Director Calum Weaver of Cushman & Wakefield’s South FloridaMultifamily Team, details the state of the multifamily market in the three counties comprising South Florida — Miami-Dade, Broward and Palm Beach.

The report finds record low vacancy rates in a South Florida multifamily market supported by a continuing trend of positive historic market fundamentals.

Significant highlights of the report include:

Through the first two quarters of 2018, there were 133 multifamily sales in South Florida valued at nearly $2 billion. While year-over-year sales activity slowed for the second year in a row, these values are still the third-highest ever recorded in the first half of any year.

As a whole, sales activity in South Florida was split relatively evenly between Class A, B and C properties. Palm Beach County saw a majority of its activity in the Class A market, while the Class B and C markets were most active in Miami-Dade and Broward Counties.

The number of value-add private capital deals, which historically account for as much as 30 percent of the annual South Florida multifamily sales volume, fell significantly in 2018, yet per-unit pricing did increase.

Over the next five years, South Florida is expected to see a positive net migration of 555,000 people, necessitating the construction of 64,000 new rental units to keep pace. Through 2Q 2018, there were only 18,215 units under construction.

  

“Multifamily investments remain the most desired and transacted property type in South Florida based on the strong market fundamentals and long-term positive outlook,” said Weaver. “63% of global capital is being raised to target real estate assets in North America. South Florida, as a gateway region for global capital, is awash with money seeking acquisitions.”

“Finding deals is the biggest challenge in the market, particularly value-add opportunities,” Weaver continued. “This is a natural progression, as many of these deals traded multiple times during this real estate cycle.

"As a result, investors with capital to deploy were finding themselves facing a dearth of for-sale assets to target in this space. In contrast, institutional deal activity, which, in general, is geared towards newer product, has more runway in the next few years because the construction pipeline for this asset class remains robust.”

“Debt markets remain open for business and still provide historically low interest rates,” reported Weaver. “We expect strong sales in Class A properties, while value-add properties remain hard to find but are well received if marketed correctly.”

“The effect on cap rates relative to further interest rate increases is the biggest potential threat to the current market,” concluded Weaver. “In the past year, interest rates increased ±60 bps and are now

nearer to 5% than 4%.

"Previous interest rate hikes were offset by spread compressions, and there is a case that this can continue to an extent. There is still room to lower spreads to offset any marginal up-tick in interest rates. However, if we see another 60 bps increase in rates it will effect cap rates and pricing.”

To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

Media Assets

2018 South Florida Multifamily Midyear Market Update

Contact:

David A. Meyer
Meyer Media  
+ 1 407 489 7488
david@meyer.media