Real Estate Capital Markets Riding Boom of Revitalized Domestic U.S. Economy, Says RECI

 John Oharenko

 

Chicago, IL --  The domestic economy momentum continues an upward trajectory since bottoming out from the pandemic last spring, according to Chicago-based Real Estate Capital Institute (RECI).

 The unemployment rate is now about half as low, the stock market and other financial indicators hit record levels. 

The Real Estate Capital Institute’s® Director, John Oharenko, suggests, “Less economic [and cash flow] uncertainty translates to better pricing in what continues to be a seller’s market.”

The real estate capital markets are riding the boom as well, as illustrated by the capitalization and mortgage rates: 

Cap Rates:  Overall capitalization rates for CRE assets range from 3.5% to 8%, with a wide variance based on property type, grade, and cash flow quality.  

Capitalization rates for prime multifamily assets dip down to the mid-3%-range, Industrial properties price slightly higher, with net-lease commercial properties not far behind, hovering in the 4%-5% range. 

 Retail and office projects indicate higher risk, falling within the 6%-plus-range.  And lodging properties show more recovery hovering in the 7%-or-more range as travel and meeting business returns. 

 Non-prime properties in various asset categories typically offer widened pricing by 50 to 100 basis points.

 Mortgage Rates:  Despite inflation fears, interest rates remain tame.  Cheap debt drives low caps.  Even as benchmark rates rose over more than fifty basis points since the beginning of the year, mortgage rates stay low.

  Lenders absorb tighter spreads due to more comfort with improving realty market fundamentals.  Short-term debt for prime assets dips below 3%, while longer-term perm loans hover in the 3% to 3.75% range.

 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

 Executive Director

john.oharenko@reci.com

director@reci.com / www.reci.com

^The   Real Estate Capital Institute^®

Chicago, Illinois USA 60622

 

Vestar Hires Gabrielle Lardiere as Vice President of Client Services

 

Gabrielle Lardiere

LONG BEACH, CA, June 10, 2021 – Vestar, one of the leading privately held shopping center owners and managers in the western United States, announced today that it has hired Gabrielle Lardiere as Vice President of Client Services.

                Based in Vestar’s Long Beach, CA office, Lardiere is responsible for optimizing and growing the company’s third-party services division as well as enhancing existing client relationships. 

She leads and coordinates the marketing efforts for a variety of company services including property management, leasing and accounting oversight, construction and development management.

R. Patrick McGinley

Vestar currently manages over 16 million SF of space for third-party clients.

“Our third-party portfolio is a huge priority for us,” said Patrick McGinley, President of Management Services for Vestar. 

“Although we do not delineate between projects we own vs projects we manage, it is important to market our ‘best-in-class’ services to new institutional clients and continue to develop the valuable relationships we have with our current clients.”

                Lardiere brings nearly 10 years of commercial real estate experience to Vestar.  Most recently, she served as Director of Business Development for the William Warren Group | StorQuest Self Storage.  

Previously she worked in CBRE’s Advisory and Transaction Services’ group, specializing in retail properties.  Lardiere was graduated from the University of Michigan.

  CONTACT:

 David Ebeling

 Ebeling Communications

 (949) 278-7851

 david@ebelingcomm.com

vestar.com.

Amazon to Lease 360K-SF ‘Highland Cross’ Industrial Site in Rutherford, NJ, Owned by Lincoln Equities Group

 

Jenna Hilzenrath

RUTHERFORD, N.J – Lincoln Equities Group (LEG), one of the Northeast’s leading full-service real estate companies, announced that multinational technology and logistics leader, Amazon, will occupy its future 360,000-square-foot industrial warehouse in Rutherford, N.J., Highland Cross.

“We are excited to continue to invest in New Jersey with a new delivery station in Rutherford that will provide efficient delivery for customers and create hundreds of great job opportunities for the talented local workforce,” said Amazon spokesperson Jenna Hilzenrath.

 

“This new delivery station represents Amazon’s unwavering commitment to safety, technological innovations and skilled teams who are obsessed with delivering for our customers.”

                                Lance Bergstein

The state-of-the-art last-mile distribution center, which will create hundreds of jobs, is in the heart of the bustling Meadowlands industrial market.

 

LEG procured $115 million in industrial build-to-suit construction financing for the facility, a Class A industrial site that recently received requisite approvals.

Joel Bergstein

 

Upon its completion in early-2022, Highland Cross will be on the short list of modern buildings in the Meadowlands, with less than 20 existing properties offering 36-foot-plus-clear heights.

 

 The property will feature cross-docked loading, 70-plus dock high doors and 80-plus trailer parks.

“Highland Cross is optimally positioned to capitalize on the sustained growth in demand for ‘last-mile’ industrial product proximate to consumers, labor and infrastructure,” said LEG Acquisitions and Development Officer Lance Bergstein.

 

“The lease is a continuation of the success LEG has felt in the industrial space of late, including our Bayonne site – which will be occupied by UPS.”

 “We’re thrilled that Amazon has selected our Rutherford facility for its latest delivery center,” said LEG President Joel Bergstein.

 

“We have been working with Rutherford for 20 years and are excited to see this project come to fruition and create a ratable for the borough. It was this administration that supported the vision for industrial.”

  CONTACT:

Dan Gunderman
Senior Account Executive

M 862.377.5106 P 646.586.9931 E dan@violetpr.com

Violet PR 7 N. Willow St, Suite 8C, Mailbox 11 Montclair, NJ 07042

www.violetpr.com

 

www.lincolnequities.com.

Beachwold Residential secures first supplemental loan for Ariel Springs in Spring Hill, FL

 

Mona Carlton

MIAMI, FL – JLL Capital Markets announced  it secured a $15.85 million financing for Ariel Springs, a garden-style, multi-housing property located in Spring Hill, Florida, about 50 miles north of Downtown Tampa.

 JLL represented the borrower, Beachwold Residential, to secure the fixed-rate loan through Freddie Mac. The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender.

Elliott Throne

Beachwold Residential acquired the property in Dec. 2018, landing $44 million in acquisition financing also through Freddie Mac.

 This financing is the first supplemental loan on the property, a result of the borrower’s capital enhancement, immense demand for quality, professionally managed apartments in the market, and the Tampa area’s rent growth through the pandemic.

The ability to repatriate equity through this substantial supplemental loan represents one of the many benefits of Freddie Mac financing.

 Ariel Springs is currently 97.7% occupied and consists of 470 one-, two- and three-bedroom units. Since acquisition, Beachwold Residential has invested nearly $3 million in renovations to both the interior and exterior of the highly-amenitized property.

Jesse Wright

Community features include a clubhouse, community car wash, entertainment area with a full kitchen, modern fitness center, swimming pool, business center and shuffleboard and basketball courts.

 Ariel Spring is located at 3454 Suncoast Villa Way, in the quaint city of Spring Hill, and in close proximity to various neighborhood amenities, including local dining and shopping, and direct access to the 42-mile Suncoast Bike Trail.

 The JLL Capital Markets team representing Beachwold was led by Senior Managing Directors Elliott Throne and Mona Carlton, Director Jesse Wright and Associate Kenny Cutler.

 “One of the many great attributes of an agency loan is the borrower can garner additional proceeds after improving the property’s NOI,” stated Throne.

Kenny Cutler

“Beachwold’s immense success at this asset has enabled them to pull out a significant amount of their equity thru additional financing from Freddie Mac at an interest rate very close to what they have on the original senior loan.”

 According to JLL’s latest United States Multi-Housing Outlook, the Tampa Bay multi-housing market held steady throughout 2020 and heading into 2021.

Occupancies remained at or above 95% over the past five years and overall remaining resilient amid the COVID-19 pandemic.

  For more news, videos and research resources on JLL, please visit our newsroom.

   CONTACT:

 Natalie Passarelli

JLL Senior Associate

 Public Relations

Phone: +1 224 477 7307

Email:  Natalie.Passarelli@am.jll.com

Beachwold.com.