PASSCO Bolsters Houston-Area Portfolio with Acquisition of 330-Unit Multifamily Asset in Spring, TX

The Grayson Apartments, 4115 Louetta Road, Spring, TX

Spring, TX (April 24, 2019) — Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired The Grayson, a 330-unit, Class A apartment community in the northern Houston submarket of Spring, Texas.

The acquisition is a strong addition to the firm’s portfolio, well-aligned with Passco’s strategy to identify top-tier multifamily assets in high-growth markets, according to Jake Niles, Director of Acquisitions – West at Passco Companies.

Jake Niles

“Long considered the ‘Energy Capital of the World,’ the greater Houston area has also experienced a significant influx of jobs in recent years, achieving the highest rate of employment growth among the country’s top 12 MSAs last year at more than twice the national average,” explains Niles.

 “Major employers including Amazon, Texas Medical Center, and Daikin Industries having recently undergone or are currently in the midst of expansions bringing thousands of jobs, driving further growth, and increasing the area’s appeal.”

The Grayson is located within close proximity to Interstate 45 and State Highway 99, providing residents with convenient access to downtown Houston, as well as throughout the greater metropolitan area and northern submarkets.

The location also positions the community within the Klein Independent School District, a distinct advantage over otherwise comparable nearby properties, notes Niles.

“In addition to being situated within an expanding economy, this community comes with significant curb appeal as one of just a handful of newly constructed multifamily properties in an affluent area with a limited development pipeline,” continues Niles.

Josh Goldfarb

“The Grayson’s best-in-class design and amenities meet and exceed the expectations of today’s residents. The asset also presents the opportunity for additional upside based on significant rent growth in popular neighborhoods further north.”

Niles notes that due to Passco’s deep broker and seller relationships, the firm was able to acquire this remarkable asset at below replacement cost in a seamless transaction.

“The Grayson benefits from ideal positioning within a burgeoning Houston submarket and an immediate area with increasingly affluent demographics. It was an absolute pleasure to work with the Passco team on the prime opportunity to add this exceptionally designed asset, with stellar growth projections, to their portfolio.

All parties came together to facilitate a smooth and satisfying transaction,” says Josh Goldfarb, Vice Chair, Southeast Multifamily Advisory Group for Cushman & Wakefield.

John Carr

The Grayson’s open-concept one-, two-, and three-bedroom units include stainless steel appliances, island kitchens with recessed LED lighting, granite kitchen countertops with undermount sinks, full-size washer/dryers, modern cabinets and fixtures, garden tubs, glass showers, and wood-style plank flooring.

Competitive features of the gated and secured community include a fitness center with cardio, resistance training, and free weights, spacious dog park, jogging trail, fully equipped resident lounge and kitchen, cyber café, a resort-style swimming pool, outdoor courtyard kitchen with grilling stations and a fireplace, and premium reserved parking spaces.

Goldfarb and John Carr of Cushman & Wakefield’s Southeast Multifamily Advisory Group represented Passco as the buyer and Bridgeview Louetta LLC as the seller in this transaction.

Chris Black

            The Grayson, constructed in 2016, is located at 4115 Louetta Road in Spring, Texas. 

Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.

About Passco Companies, LLC

Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multi-family and commercial properties throughout the U.S.

Passco offers a full set of real estate services including asset and property management, leasing, as well as property development and construction.

Caleb Marten

Headquartered in Irvine, California, Passco currently has $2.8 billion assets under management across the country and is actively growing its portfolio in primary and secondary markets throughout the United States. 

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. 

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners.

Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.

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

CONTACTS:

Micaela Fehrenbach / Elisabeth Manville

Brower Group

(949) 438-6262

mfehrenbach@brower-group.com

Blackton Awarded $3 Million Contract to Supply Ashton Woods’ Newest Townhome Community in Polk County, FL

Michael 'Micky' Blackton

ORLANDO, FL  --- Blackton, Inc., a leading supplier for the homebuilding industry, was recently awarded a contract worth more than $3 million to provide flooring materials for Enclaves at Festival Towns coming soon near the Osceola-Polk county line.

Micky Blackton, chief executive officer, said his firm will supply flooring materials for 389 townhomes to be built in four phases by Atlanta-based Ashton Woods Homes.    Construction will begin in October, he said.

Development Site for Planned Enclaves at Festival Towns Community, Meadows Boulevard and Ronald Reagan Parkway, Near Osceola-Polk County, FL line

At build out, the new natural gas community will consist of 12 buildings located off of Interstate 4 on Meadows Blvd. and Ronald Reagan Parkway in the growing suburban area just south of Disney.

Blackton, Inc. a family owned business located on Alden Road near downtown Orlando has been supplying the home building industry from Jacksonville to Tampa for over 60 years.

CONTACTS:

Michael “Micky” Blackton, Chairman, Blackton, Inc.

407-898-2661 Micky@Blacktoninc.com

Beth Payan, Larry Vershel Communications

407-644-4142 beth@larryvershel.com  

HFF closes $15 million sale of build-to-suit medical office property for Joe DiMaggio Children’s Hospital in South Florida

Joe DiMaggio, New York Yankees, 1936--1951

ORLANDO, FL, April 24, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces that it has closed the $14.75 million sale of a build-to-suit medical office property in Wellington, Florida, totaling 31,830 square feet and fully leased to Joe DiMaggio Children’s Hospital.

Alan Benenson

The tenant’s parent health system, Memorial Healthcare System, exercised its right of first refusal to purchase the building. 

HFF marketed the property on behalf of the seller, a joint venture between Liberty Base Investments and MAS Development, led by the firms’ principals Leon Ojalvo and Alan Benenson.

The single-story medical office building was completed in March 2019 and will operate as Joe DiMaggio Children’s Health Specialty Center in Wellington, offering services, including neurology, pulmonology, endocrinology, orthopedics, general surgery, otolaryngology – head and neck surgery/ENT, imaging, rehabilitation services and U18 Sports Medicine rehabilitation services.

Future Home of Joe DiMaggio Children’s Health Specialty Center in Wellington. FL

  The asset has a highly visible location at 3377 State Road 7, which sees more than 61,000 vehicles each day.

Evan Kovak

The HFF investment advisory team representing the seller was led by director Anthony Frogameni, managing directors Evan Kovac and Ben Appel, senior director Scott Wadler, director Andrew Milne and associate Matt DiCesare.

“Our client developed a high-quality, premier medical facility that will be a great amenity to the Wellington community,” Frogameni said. “The project’s value was evidenced by Memorial Healthcare System’s desire to own the asset long term.”

Anthony
 Frogameni

About Liberty Base Investments

Liberty Base Investments is a South Florida-based real estate investment and development firm focusing on the acquisition, asset management and development of value-add real estate assets in primary and secondary markets, principally in the southeastern United States.

About MAS Development

With over 20 years of experience, MAS Development, Corp. has been fundamentally involved in all aspects of real estate development and construction in the southeast United States and the Caribbean. 

Ben Appel

As a developer, the firm is actively involved and directly manages all stages of the process including; site identification, acquisition, planning, design, entitlements, financial analysis, construction and disposition. 

Andrew
Milne

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. 

Scott Wadler

 HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. 

HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).  

For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

CONTACTS:

ANTHONY FROGAMENI

FL Lic. #BK3285289

HFF Director

(407) 745-3900

afrogameni@hfflp.com

EVAN KOVAC

HFF Managing Director

(206) 576-0033

ekovac@hfflp.com

KRISTEN MURPHY

HFF Director, Public Relations

(617) 338-0990

krmurphy@hfflp.com

Pacific Industrial Completes Record-Breaking $213.5 Million Property Sale in California's Inland Empire

Sierra Pacific Center, a two-building, 1,495,208-SF, Class A+ industrial facility in Fontana, CA

Fontana, CA (April 24, 2019) – Pacific Industrial, a privately held industrial development and investment firm, has completed the largest non-portfolio industrial property disposition in California in the past 24 months with the sale of Sierra Pacific Center, a two-building, 1,495,208 square-foot, Class A+ industrial facility in Fontana, California.

This property, which is fully leased to LG Electronics and FedEx, is one of the first ground-up developments completed by Pacific Industrial.

The firm sold the asset to an institutional life insurance company for a total consideration of $213.5 million.

Dan Floriani

“This is a milestone transaction that represents the remarkable investment potential of spec industrial developments when they are done well,” says Dan Floriani, Partner and Co-Founder of Pacific Industrial.

 “By developing this asset with a long-term-hold mindset, we thoughtfully designed each detail, resulting in a property with a proven track record of attracting major credit tenants who value best-in-class, Class A+ features.”

Pacific Industrial developed the asset in partnership with an international institutional investor, and continues to partner with institutions and pension funds on additional development projects throughout California.

“We had the opportunity to sell this 1.5 million square-foot property at a record cap rate of 3.68%, and we are simultaneously developing 1.5 million square feet of new best-in-class industrial properties in other Southern California markets,” says Floriani.

 “This activity speaks to a continued institutional appetite for industrial developments where tremendous value creation with the right developer is not only possible, it’s been proven.”

Floriani notes that the buyer of Sierra Pacific Center will also benefit from this value creation strategy.

Jeff Chiate

“This is a substantial core investment property in the top industrial submarket in the nation,” says Jeff Chiate, Executive Managing Director of Cushman & Wakefield’s National Industrial Advisory Group, who represented Pacific Industrial in the disposition. 

 “The Inland Empire West market posted the most lease transactions above 500,000 square feet in the nation last year. Market fundamentals in this region continue to be exceedingly strong, with vacancy rates at a record-low 2.0 percent.

"With this knowledge and a deep expertise in investment-grade industrial property, our team recognized the true potential in the asset, and we were able to attract a competitive pool of high-quality buyers.”

Pacific Industrial has completed the largest non-portfolio industrial property disposition in California in the past 24 months. The above property was part of the disposition. 

“This is a stable, cash flowing asset in an exceptional location with investment grade tenancy and key features that are unlike any other industrial property in the Western U.S., giving the buyer a property that can be profitably held for the long term,” notes Floriani.

Unique features built into the property include three percent skylight coverage delivering 50 percent more natural light than the industry standard of two percent; electric vehicle charging stations; and extremely large, 100% concrete truck courts with depths up to 430 feet. Average truck court depth in a Class A industrial facility is 185 feet.

Completed in 2016, Sierra Pacific Center is adjacent to Interstate 210 and within a 20-mile radius of seven major freeways. The property is located at 5565 and 5885 Sierra Avenue in Fontana, California.

CONTACTS:

Alex Caswell /Jenn Quader

Brower Group

(949) 438-6262

acaswell@brower-group.com

www.Pac-Industrial.com

ShowingTime Index Finds Residential Markets Across the U.S. Experience Continued Declines in Showing Traffic in March

Daniil Cherkasskiy

CHICAGO, IL, April 23, 2019 – The promise that March would see an uptick in home showing traffic in the traditionally busy spring selling season went unrealized as activity continued the trend of year-over-year declines, according to the latest data from the Chicago, IL-based ShowingTime Showing Index®.

Buyer traffic slowed for the eighth consecutive month in the U.S. compared to the same time last year, with activity down 7.2 percent. The West Region was the hardest hit by the continued lag, recording a 17.2 percent drop in year-over-year showing activity. The West has now experienced a full year of declining traffic compared to the previous year.

“Activity has picked up across the board, though showing traffic is still slower than this time last year,” said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. 

“March was a lot more active compared to February, which could be attributed to the decrease in mortgage rates,” he said. “Specifically, we’re seeing that the lower two pricing quartiles of the market haven't slowed down year over year; rather, it's the higher-end homes that have had less traffic.”

The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, providing a benchmark to track buyer demand. ShowingTime facilitates more than four million showings each month.




Released monthly, the Showing Index tracks the average number of appointments received on active listings during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership.

To view the full report, please visit showingtime.com/index.

CONTACT:

Brian Sorenson
bsorenson@showingtime.com

 research@showingtime.com.