Marcus & Millichap Arranges $3.44 Miillion Sale of three Sonic Drive Ins in Louisiana

James Garner

SLIDELL, LA, Jan. 2, 2020 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of three Sonic Drive Ins, net-leased properties located in Slidell, La. and Pearl River, La., according to Chris Travis, sales manager of the firm’s Tampa office. The assets sold 

for $3,443,991.

James Garner, James Medefind and Jim Shiebler, investment specialists in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a private investor. 

James Medefind 

 The buyer, a private investor, was secured and represented by Garner and Shiebler.  Chris Shaheen, Broker, assisted in closing this transaction.

“This portfolio sale will help springboard this multi-concept franchisee to exponential growth over the next 5 years," said Garner.

"This was a sale leaseback from an operator who recently acquired under-performing stores with plans to turn them around within short time. 

"Our operator relationships paired with our institutional and private equity investor relationships was the perfect pairing to build a market around these assets, provide the seller with strategic growth options, and ultimately create a win-win transaction for both the seller and the buyer. 

Jim Shiebler

"We specialize in restaurant net leased opportunities. Our operator’s rely on our ability to help them grow or contract as needed, while our developers, private equity groups, and institutional investors rely on our ability to secure stable long-term cash flow producing assets that beat their yield requirements and provide returns other investment vehicles cannot compete with.

" I am proud to say our team performs for both sides of the coin on a consistent basis and this was a perfect example.” 

The Sonic Drive In properties are located at 194 Brownswitch Road in Slidell, La., 1968 Gause Boulevard in Slidell, La. and 64107 Highway 41 in Pearl River, La.  All three locations have ideal trade area demographics for SONIC.

 Chris Shaheen

Located in Louisiana, the cities of Slidell and Pearl River are located less than one hour north of New Orleans and are part of the New Orleans-Metairie-Kenner MSA. 

New Orleans is known for its vibrant culture, tourism, and the annual celebration of Mardi Gras. Downtowns French Quarter, Canal Street and Bourbon Street are filled with restaurants, hotels, bars and clubs. The New Orleans Jazz and Heritage Festival is one of the nation's largest music festivals held annually.

About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. 

Chris Travis

Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. 

CONTACTS: Chris Travis Sales Manager  Tampa, FL (813) 387-4700 Whitney DavisWhitney.Davis@marcusmillichap.com www.MarcusMillichap.com.

JLL closes $7.28 million sale of Fort Lauderdale, FL Wawa

Wawa at Riverbend Marketplace is located on a 1.7-acre site at 2620 West Broward Boulevard along one of the busiest roads in Broward County, FL

ORLANDO, Jan. 2, 2020 – JLL Capital Markets announced today that it has closed the $7.28 million sale of a 1.7-acre, single-tenant parcel that is ground leased to Wawa in Fort Lauderdale, Florida.

Michael Brewster 

JLL marketed the property on behalf of the seller, Northbridge Investment Management. Promociones 96 Inc purchased the asset.

Wawa is a chain of more than 800 convenience retail stores and more than 27,000 employees located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia and Florida. 

Completed in 2017, Wawa fronts Riverbend Marketplace, a new regional shopping center. Situated on a 1.7-acre site at 2620 West Broward Boulevard, Wawa at Riverbend Marketplace is located on the “going-to-work” side of West Broward Boulevard.

 The building is visible to nearly 60,900 vehicles per day at the hard corner intersection of West Broward Boulevard and SW 27th Avenue. The property is two miles from downtown Fort Lauderdale where the daytime population is 98,000 and the average home value is $602,000. 

Brad Peterson 

Over 172,000 residents earning an average annual household income exceeding $73,000 live within a three-mile radius of Wawa at Riverbend Marketplace.

The JLL Capital Markets team that represented the seller was led by Director Michael Brewster and Senior Managing Director Brad Peterson along with Managing Director Marc Mandel and Director Steve Schrenk.

“Wawa at Riverbend Marketplace is located at a hard corner along one of the busiest roads in Broward county, and it’s easily accessed by commuters going to downtown Fort Lauderdale,” Brewster said. 

“The proximity to I-95, downtown, the beaches and rare big-box Fort Lauderdale retail made this a special offering with phenomenal long-term value.”

 Marc Mandel

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

About Northbridge Investment Management:

Northbridge Investment Management facilitates direct ownership for private and institutional capital of quality commercial real estate assets that offer a balance of distributable income and long-term capital appreciation. 

The company’s objective is to enhance the value of its assets to maximize long-term value of its properties. 

The principals of Northbridge have significant experience in the acquisition and management of large-scale industrial, retail and office portfolios, leading approximately 150 commercial real estate transactions for a total value of $5 billion. 

Steve Schrenk

About JLL:

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.

Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. 

JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. 

Contact: 

Kimberly Steele

JLL Digital Content/PR Specialist

Phone: +1 713 852-3420

Email: kimberly.steele@am.jll.com

northbridgeim.com

jll.com

RECI Sees Real Estate Industry Starting 2020 on a Positive Note

John Oharenko

Chicago, IL, Jan.2, 2020 –-Chicago-based Real Estate Capital Institute kicks off 2020, recapping 2019 highlights. They include:

·        Last year closed as a milestone period for the US economy. 

·        The stock market hit new record highs, experiencing the best gains since 2013.  

·        The Fed dropped interest rates three times during the year and decided to keep rates unchanged at the most recent meeting. 

·        Furthermore, unemployment levels witnessed fifty-year lows.  Most investors' biggest fears rest upon worrying about how long economic conditions continue into the new year and beyond. 

Class A Office Market

 RECI  executive director John Oharenko adds,  "the new decade brings in the enduring prosperity of the previous decade, with no immediate end in sight.”

 All worries aside, pundits find many signs of optimism for 2020, with real estate capital markets sharing the euphoria characterized by a low-rate investment environment facing ongoing yield compression.

 More Low Rates:  The downward rate trend continues, despite trade wars, labor shortages, and inflationary pressures.  Far too much capital chases too few goods. 

 Very limited investment options force both real estate debt and equity investors to tolerate low yields.  Also, more global capital floods the US, both for safety and yield.  

Class A Multifamily Market

For example, during the past month five-year, and ten-year Treasury notes barely nudged higher less than ten basis points.

 Yield Compression:  Core, core-plus, value-add, and opportunistic investment real estate returns endure yield compression. 

 Two hundred basis points represent typical yield differentials between various investment categories.  Core investments in gateway markets attract pricing below 5%, while core-plus ventures experience mid-single-digit returns. 

 Value-add projects target lower-teen returns.  Only opportunistic deals offer any substantial yield premiums, as new-construction and substantial redevelopment ventures require higher-priced risk capital, especially so late in the economic cycle.

Class A Industrial Market

  And for Class-A properties in prime urban versus suburban locations, narrower pricing differentials exist, in some cases only fifty basis points (e.g.,  multifamily). 

 Lower funding costs combined with rising construction and operating costs pinch profitability.  Scarce new supply barely disturbs property supply-demand equilibrium in most markets.  

The Real Estate Capital Institute® is a volunteer-based research organization that tracks realty rates data for debt and equity yields.  The Institute posts daily and historical benchmark rates, including treasuries, bank prime, and LIBOR.  

Contact:

John Oharenko 

john.oharenko@reci.com

 Executive Director

www.reci.com

Passco Cos. Expands into Greater Chicago Market

The Atworth at Mellody Farm, a 260-unit luxury multifamily community in Vernon Hills, IL

Vernon Hills, IL (Jan. 2, 2020) — 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 Atworth at Mellody Farm, a 260-unit luxury multifamily community in Vernon Hills, Illinois, from AEW Capital Management, Focus, and Atlantic Residential.

Jake Niles

The apartment community was developed in 2018 adjacent to Mellody Farm, an upscale dining and retail center destination within the affluent Lake County community in Chicago’s northern suburbs. 

The Atworth offers unmatched walkability, high-end amenities, and proximity to numerous major employers, according to Jake Niles, Director of Acquisitions – West at Passco Companies.

“The Atworth at Mellody Farm is a strong addition to our portfolio, fulfilling all the criteria we look for when it comes to sourcing top-tier multifamily assets in premium locations positioned for growth,” explains Niles. 

Peter W. Evans

“High demand for this community was demonstrated by an unprecedented 10-month lease-up. Residents benefit from exceptional walkability to various destinations, including Whole Foods and other popular retail options, as well as frequent Metra rail services.”

In addition to walkability and convenient access to one of the highest concentrations of Fortune® 500 companies in the country within Lake County, residents also benefit from convenient commutes to additional employment opportunities in the heart of Chicago.

Richard G. Evans

 “Lake County offers outstanding demographics, an educated workforce, and exceptional school systems,” states Niles, who notes that the investment is also bolstered by a limited new development pipeline in the region.

 “The county added more than 20,000 jobs over the last four years, and is a large hub for employers in the continuously growing technology, manufacturing, and healthcare industries.”
Peter W. Evans and Richard G. Evans of Moran & Company Midwest represented both parties in the transaction.

Contacts:

Micaela Fehrenbach / Elisabeth Manville

Brower Group

(949) 438-6262

mfehrenbach@brower-group.com

www.moranandco.com.