Real Estate Capital Institute Predicts More Gradual Returns in Debt and Equity Markets

Jean Darrow Peck

Chicago, IL -- Weaker job growth and lackluster retail sales reports create divergent opinions among bond investors.  Many believe the Fed is less likely to push through rate increases, resulting in an inverted swap-to-treasury curve. 

Mortgage spreads widened in recent weeks as CMBS buyers flock to higher quality offerings, forcing more marginal pools to sell at wider discounts.

For instance, the highest-credit rated portions of current securitized mortgage pools are more than 30 basis point wider as compared to earlier in the year.  And increases of at least ten basis points are commonplace versus

earlier in the fall.  However, highest quality assets still attract pricing inside of the new benchmark of 4% for 10 year funds.

During October rates trended upward, with a spike at the end of the moth. The 5-year T-Note rate ranged from 1.25%-1.53%; the 10-year rate moved about

20 basis points, settling at a high of 2.17%.  Short-term rates remained mostly unchanged.

The trend continues for higher prices across the realty investment spectrum as a long-term phenomenon, so select investors refocus on using equity returns (e.g., equity multiples) as key benchmarks, instead of a heavier

reliance on discounted cash flow modeling.  

Such investors often believe that cash flow growth will be more lackluster than previously projected,

expecting flatter annual returns.  That said, buyers often absorb lower returns based upon relatively low mortgage rates.  The correlation between higher mortgage rates and capitalization rates has about 100 basis points of capitalization rate "shimmy." 

The Real Estate Capital Institute's Jeanne Darrow Peck suggests, "Glamorous

profits and stellar returns in both the debt and equity markets are today

more distant than any time since the Great Recession.  Expect more gradual

returns rather than any 'quick flip' plays, as investors on all sides of the

table use better market information than ever before."

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

Jeanne Peck, Executive Director

director@reci.com

www.reci.com

HFF closes $18.25 million sale of 315 Broadway in Tribeca, Manhattan

                                315 Broadway, Tribeca Neighborhood, Manhattan, NY

 

Rob Rizzi

NEW YORK, NY – Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of 315 Broadway, an 18,089-square-foot, mixed-use, loft-style office building with ground floor retail space in the Tribeca neighborhood of Manhattan.

HFF marketed the property on behalf of the seller, a long-term private real estate partnership.  The Laboz family of United American Land purchased the asset for $18.25 million free and clear of existing debt. 

315 Broadway is located on Broadway between Thomas and Duane Streets directly across from the Jacob K. Javits Federal Building in Tribeca.  Built in 1861 as a store and loft building, the five-story building features approximately 3,900 square feet of ground floor retail and 14,186 square feet of office.

 The retail benefits from the highly-trafficked Broadway corridor, which has become a tourist destination for those traveling from the Financial District to Soho.  

The remaining portions of the building contain 13-plus foot ceilings, original cast-iron columns, oversized windows and exposed brick walls.  315 Broadway is within close proximity to the Chambers Street, Park Place and City Hall subway stations.

Eric Anton

The HFF investment sales team representing the seller was led by senior managing director Eric Anton, managing director Rob Rizzi, and associate directors Steven Rutman and David Fowler.

“We are extremely honored to have completed this successful transaction for our clients whom decided to sell into the strongest market Lower Manhattan has ever seen,” said Anton.

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

Kristen M. Murphy

Associate Director

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 sale of Dallas-Fort Worth-area power center

   

Robertson's Creek Power Center, Flower Mound, TX

DALLAS, TX -- Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of Robertson’s Creek, a 336,402-square-foot core power center in the Dallas-Fort Worth suburb of Flower Mound, Texas.

HFF arranged the sale of the property on behalf of the seller, a partnership between TFG Crown Partners, L.P. and Ball Ventures, LLC.  Dunhill Partners purchased the asset for an undisclosed amount. 

Completed in 2007, the 97-percent-leased Robertson’s Creek is home to anchors Belk, Hobby Lobby, Dick’s Sporting Goods, Old Navy and ULTA Beauty.  The center’s in-line shop and outparcel pad tenants include Kirkland’s, Lane Bryant, UFC Gym, Pure Barre, Which Wich?, Red Robin, Verizon Wireless and Five Below.  JCPenney shadow anchors the center.

Doug Hazelbaker

 Situated on 39.05 acres at 5801-5861 Long Prairie Road, Robertson’s Creek is in the epicenter of Flower Mound, a rapidly-growing Dallas-Fort Worth suburb that was ranked No. 2 on CNN Money Magazine’s 2014 list of “Top Earnings Towns.”  

The affluent community is less than 30 miles northwest of downtown Dallas and less than 33 miles northeast of downtown Fort Worth.

The HFF investment sales team representing the seller was led by senior managing director Doug Hazelbaker and managing director Ryan Shore.

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

Kristen M. Murphy

Associate Director

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.dunhillpartners.com.

www.ballventures.com

www.tfgcrown.com

Waterton Acquires 392-Unit Regatta at Lake Lynn in Raleigh, NC

  

Matthew Masinter

 CHICAGO, IL  – Waterton, a U.S. real estate investor and operator, today announced it has purchased Regatta at Lake Lynn, a 392-unit garden-style rental community in Raleigh, North Carolina.

Located at the southeast corner of Lake Lynn – about 10 miles northwest of downtown Raleigh – the property includes a mix of one- and two-bedroom apartments, each with 9-foot ceilings, a patio or balcony, wood-burning fireplace, and full-size washer and dryer units. 

Community amenities include two outdoor pools, a 24-hour fitness center, newly constructed playground and on-site dog park.

 “With Regatta at Lake Lynn, we saw an opportunity to acquire a vibrant community in a highly desirable location with favorable supply and demand drivers,” said Matthew Masinter, senior vice president of acquisitions at Waterton. “The relative affordability of renting has made apartments the housing option of choice in many cities, and Raleigh is no exception.”

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

Abe Tekippe, atekippe@taylorjohnson.com, (312) 267-4528

Kim Manning, kmanning@taylorjohnson.com, (312) 267-4527

Lincoln Harris to Lease and Manage 26,000-Square-Foot Data Center in Charlotte, NC

  

Campbell Walker

 CHARLOTTE, NC— Velocis has selected Lincoln Harris to lease and manage a 26,000-square-foot data center, located at 701 East Trade St. in Charlotte. Campbell Walker of Lincoln Harris will oversee leasing and management at the building.

“This building is one of the city’s prime fiber optic hubs, featuring access to Carrier Ethernet Neutral Exchange, diverse fiber entrances and connectivity to multiple national metro and longhaul fiber networks,” Walker said. “Its reliability and security, combined with its downtown location, makes this building incredibly appealing.”

Current tenants include Level 3, XO Communications, Zayo, DukeNet, tw Telecom, Time Warner Cable, Verizon/MCI, BTIDeltacom, Springboard Telecom, Windstream, and CenturyLink.

.

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

Savannah Duncan

The Wilbert Group

404-343-0870 (O) 404-901-4433 (C)

sduncan@thewilbertgroup.com

Real Estate Finance and Housing Industry Join Together and Donate Over $735,000 to Families in Need

Debra W. Still

WASHINGTON, DC  – Mortgage Bankers Association Opens Doors Foundation (MBA Opens Doors) today announced that it has secured more than $735,000 in pledged donations at, or associated with, MBA’s 2015 Annual Convention.

“Opens Doors is thrilled at the incredible outpouring of support from so many different corners of the real estate finance and housing industry,” said Debra W. Still, CMB, Chairman of the MBA Opens Doors Foundation and President and CEO of Pulte Mortgage.

“Eight of the nation’s largest homebuilders, along with large depository institutions, community banks, independent mortgage bankers, residential firms, commercial/multifamily firms, and many more companies and individuals all made generous contributions to our efforts.”

“Because of our success at MBA’s 2015 Annual Convention, Opens Doors will begin its new fiscal year with an opportunity to help many more families in need.  When we join together, we send a very strong message that all members of the real estate finance community are committed to sustainable housing and giving back,” Still continued.

Eight of the nation’s largest homebuilders and their in-house lending companies contributed a total of $170,000. These include PulteGroup and Pulte Financial Services, CalAtlantic Homes and CalAtlantic Financial Services, K. Hovnanian Homes and K. Hovnanian American Mortgage, LLC, Lennar Homes and Universal American Mortgage Company (UAMC), Taylor Morrison and Taylor Morrison Home Funding, Meritage Homes and MTH Mortgage, D.R. Horton, Inc. and DHI Mortgage Company, and Richmond American and HomeAmerican Mortgage.

Companies represented on MBA’s Board of Directors contributed a total of $380,000. These include CMG Foundation, Bank of America, Cornerstone HomeLending, Inc., CoreLogic, Inc., FNF:  Fidelity National Financial/Black Knight Financial Services/ServiceLink, First American Title Insurance Company, M&T Bank, Quicken Loans, Inc., Radian Guaranty Inc., SunTrust Mortgage, Inc., U.S. Bank Home Mortgage, Wells Fargo Home Mortgage, CBRE Capital Markets, Colonial Savings, EverBank, McLean Mortgage Corporation, Alliance Home Loans, HomeStreet Bank, VantageScore Solutions, LLC.

Sheryl Crow

Additional members of the real estate finance community including SWBC Mortgage Corporation, Guild Mortgage Company, Pingora Asset Management LLC, Wallick & Volk, Genworth, MGIC - Mortgage Guaranty Insurance Corporation contributed a total of $140,000.

Individual and corporate attendees of MBA’s Annual Convention and Expo contributed over $45,000 by making donations and pledges at the Foundation’s donor reception and the Tuesday morning general session, bidding in an online auction, purchasing extra tickets for special convention events, and bidding on a guitar signed by musician Sheryl Crow, who performed for convention attendees.

Opens Doors is currently able to pass 100 percent of the donations it receives on to families in need of assistance. The Foundation's ongoing relationship with Washington, D.C.'s Children's National Medical Center and more recently Children's Hospital Colorado, provides partner organizations to help identify potential grant recipients.

Opens Doors is a 501(c)(3) organization and all contributions are tax deductible.  For more information about the Foundation or to make a donation, please go to www.mbaopensdoors.org.

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

Ali Ahmad

aahmad@mba.org

(202) 557-2727

Meridian Capital Group Arranges $35 Million in Acquisition Financing for Meadowbrook North Office Park in Hoover, AL

Meadowbrook North Office Park, Hoover, AL

Tal Bar-Or

New York, NY, Nov. 3, 2015– Meridian Capital Group, America’s most active debt broker, negotiated $35 million in acquisition financing for the purchase of the Meadowbrook North Office Park located in Hoover, AL on behalf of The Matrix Group.

The two-year loan, provided by Rialto Mortgage Finance, LLC, features a LIBOR-based floating-rate, interest-only payments for the full term and a one-year extension option.

This transaction was negotiated by Meridian Managing Director, Tal Bar-Or, Vice President, Judah Neuman, and Associate, Kyle Kite, who are all based in the Company’s New York City headquarters.

Meadowbrook North Office Park, located at 100, 300, 500 and 1200 Corporate Drive on U.S. Highway 280, is composed of four Class A office buildings totaling 509,000 square feet.

Judah E. Neuman

The property was built by developer Daniel Corporation and sits within the 175-acre master planned campus in Birmingham’s most distinguished office setting. Property amenities include a 13-acre lake, lush landscaping, a 1.3-mile walking trail, three daycare facilities and a U.S. Post Office.

This office submarket contains Birmingham’s highest concentration of Class A office stock, with 4.7 million square feet of space. In addition to being well-located, the business park is in the strong demographic region of Shelby County, one of the state’s wealthiest and fastest-growing counties.

“This was an exciting transaction from the outset; from being live on the phone during the purchase auction to ultimately seeing the deal through to closing, Meridian worked hand-in-hand with Matrix the whole way,” said Mr. Bar-Or.

 “This is yet another example of The Matrix Group’s ability to identify opportunities with deep relative value, strong insulation from downside and tremendous opportunity to add value. With Matrix’s capability of turning around underperforming assets, this deal is characterized by little risk of loss and a skewed opportunity to achieve a significant equity multiple,” he added.

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

Jonathan Stern

Meridian Capital Group

www.meridiancapital.com

212/972-3600

jstern@meridiancapital.com

Mortgage Bankers Association Forecasts a 6% Increase in Commercial/Multifamily Mortgage Originations in 2016

Jamie Woodwell

WASHINGTON, DC - The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will rise 6 percent in 2016 to $485 billion. Mortgage bankers’ originations of multifamily mortgages are forecast at $187 billion in 2016, and total multifamily mortgage originations are projected at $225 billion.

“Borrowing and lending in commercial and multifamily real estate markets is strong,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Interest rates that have stayed lower longer than most anticipated, and continued growth in property incomes and values are all pushing mortgage origination levels higher.”

Commercial/multifamily mortgage debt outstanding is expected to end 2016 at $2.8 trillion, 1.8 percent higher than at the end of 2015.

MBA’s commercial/multifamily members can download a copy of MBA’s Commercial/Multifamily Real Estate Finance Forecast at www.mba.org/research.

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

 Ali Ahmad

aahmad@mba.org

(202) 557-2727

Fuzzy’s Taco Shop opening first location in Fort Myers, FL

Danielle Crowther Robinson

Fort Myers, FL – Reflecting the rise in new-to-market fast casual restaurants in Southwest Florida, Fuzzy’s Taco Shop is opening its first area location in Fort Myers.

The restaurant is scheduled to open in early 2016, and the owners are scouting for as many as 10 other locations in Southwest Florida.

Known for its Baja-style Mexican food and quick service, Fuzzy’s Taco Shop will open in a 5,608-square-foot freestanding building and feature a full service liquor bar.

The Fuzzy’s Taco Shop chain has 78 locations nationally with three in Florida – in Sarasota, Altamonte Springs, and soon in Brandon.

The success of the chain, which started in Fort Worth, Texas, reflects the popularity of fast-casual restaurants, including those like Fuzzy’s Taco Shop that focus on using fresh ingredients.

Dannielle Crowther Robinson, Associate of Retail Services for Colliers International Southwest Florida, brokered the $900,000 transaction between the buyer, Mucho Taco 2, LLC, and the seller, Stilwell Enterprises & Restaurant Group, LLC.

The building, formerly home to Sunshine Cafe, is located at 8700 Gladiolus Drive in Fort Myers.

“The supply and demand for turnkey restaurant opportunities is limited across Southwest Florida,” said Robinson. “This space is a great location for Fuzzy’s Taco Shop because it is freestanding, is surrounded by a dense population, and has minimal competition in the area.”

The outparcel sold for $160.50 per square foot, which is in line with the current trend of $125 to $190 per square foot for restaurant space in Southwest Florida.

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

Juliette Lauer

B2 Communications

727-895-5030, ext. 107

juliette@B2communications.com

Twitter: @ColliersIntl

Multi Housing Advisors Brokers Portfolio Sale in Pearl, MS

Craig Hey

BIRMINGHAM, AL  — Multi Housing Advisors (MHA) has arranged the sale of two apartment communities, Colony Park and The Grande, located in Pearl, Mississippi. 

Jimmy Adams and Craig Hey of MHA’s Birmingham office represented The Park Companies, the seller, in the transaction. Maxus Realty Trust purchased the property.

“Maxus Realty Trust was able to acquire two performing properties in a tightening market with strong upside,” Adams said. “High barriers to entry will continue to propel Colony Park and The Grande’s performance upward and provide opportunity for unit upgrades and increased income.”

The two properties, consisting of 280 units, closed simultaneously. Built in 1999 and 2004, they represent two newer, high quality assets in the City of Pearl.

Maxus Realty Trust has combined the operations of the two properties, renaming the project The Grand at Pearl Apartments. Additional information can be found at www.RentGrandAtPearl.com.

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

Deborah Rogers

Multi Housing Advisors

404.645.7275

drogers@usmha.com

Multi Housing Advisors Brokers Sale of Apartment Community in Birmingham, AL

Monte D'Oro Apartments, Birmingham, AL

 

Jimmy Adams

 BIRMINGHAM, A.L. (Oct. 27, 2015) — Multi Housing Advisors (MHA) has arranged the sale of Monte D’Oro, a 200-unit apartment community located in Birmingham, Alabama.

Jimmy Adams of MHA’s Birmingham office represented the seller, Merion Realty Partners, in the transaction. Hawthorne Residential Partners purchased the property, and plans to make significant renovations and rebrand the property as Hawthorne at Wisteria.

“Hawthorne Residential was able to acquire a performing asset in the highly desirable Hoover market,” Adams said. “High barriers to entry are causing demand to outstrip supply in the area, putting upward pressure on rental rates.”  

Monte D’Oro’s proximity to Interstate 65 and Highway 31 provides access to Birmingham’s three biggest employment nodes and a host of premier retail. The property features very large floorplans, a top tier amenity package, and access to the Hoover public school system.

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

Deborah Rogers

Multi Housing Advisors

404.645.7275

drogers@usmha.com

Multi Housing Advisors Brokers $29.3 Million Sale of Apartment Community in Cary, NC

Marc Robinson

CHARLOTTE, NC — Multi Housing Advisors (MHA) has arranged the $29.3 million sale of The Reserve at Magnolia Ridge, located in Cary, North Carolina.

Marc Robinson, Jordan McCarley and Watson Bryant of MHA’s Charlotte office represented the seller, Greystone, in the transaction that was handled off market. 

The property was purchased by the Sterling Group, based in Mishawaka, IN. Sterling is an aggressive owner, operator, and buyer of multifamily assets throughout the Midwest and Southeast.

The Reserve at Magnolia Ridge was built in 1984 and its interiors were recently renovated. The property is comprised of 360 units and conveniently located at the junction of Interstate 40 and Interstate 440 in Cary, N.C.

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

Deborah Rogers

Multi Housing Advisors

404.645.7275

drogers@usmha.com

Crossman & Co. brings Publix-anchored center Cornerstone at Lake Mary, FL to 100% occupancy

  

 

Tyler Wilkins

ORLANDO, FL – Tyler Wilkins of Crossman & Company, one of the largest retail leasing, management and investment sales firms in the Southeast, recently negotiated a long-term lease at Cornerstone at Lake Mary and brought the 63,924 square foot shopping center to 100 percent occupancy.

Wilkins represented the Orlando-based landlord Cornerstone at Lake Mary, LTD in the transaction. 

Florida Autism Center is the new tenant who leased the 3,324 square foot outparcel building at the center located off of H.E. Thomas Parkway on Rinehart Road in Lake Mary. 

Tallahassee-based Florida Autism Center serves children with a variety of development disabilities and currently has five locations throughout central and north Florida.

Other major tenants at the Publix-anchored shopping center include Leslie’s Pools, Jersey Mikes and Giovanni’s Italian Restaurant & Pizzeria.

Wilkins states, “Considering the strength of the market and the quality of Cornerstone at Lake Mary, it is no surprise that we reached 100% occupancy in such a short period of time.”

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

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

   

NAI Realvest negotiates investment sale of former Holiday House Restaurant property on N. Woodland Blvd. in DeLand, FL

Kimberly Manson

DeLand, FL --- NAI Realvest, based in Orlando, recently negotiated the sale of the retail / restaurant property formerly known as Holiday House at 1206 N. Woodland Blvd. in DeLand for $460,000.  

The NAI Realvest team of Jeffrey Tanner and Kimberly Manson negotiated the sale and purchase on behalf of the Dallas-based buyer, EYM Realty of Florida LLC.  

The local seller, Willa Louise Cook, Trustee, was represented by Bill Mancinik of Total Realty Corp.   

The property is located at the NW corner of N. Woodland Blvd. (Highway 17-92) and Mandarin Avenue.  The site consists of 53,695 square feet of commercial land and is improved with a 4,730 square foot restaurant building.  Over the next few months, the property shall be converted into a full service Denny’s restaurant.

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

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

   

NAI Realvest Negotiates Three Office Leases in Orlando, FL Totaling more than 6,100 Square Feet

  

Chris Adams

 ORLANDO, FL – NAI Realvest recently negotiated three lease agreements totaling 6,103 rentable square feet in Orlando.

Tom R. Kelley II, CCIM, principal at NAI Realvest, brokered two lease renewals at 8600 Commodity Circle on behalf of Miami-based South Park, LLC, the Landlord of the 58,000 square foot South Park Business Center.

The South Park tenants are Commercial Technology Services, LLC an IT Services firm who renewed their lease of Unit 120 with 3,123 square feet and Xprex, LLC, a national shipping company that renewed Unit 125 with 1,830 square feet.

In other office leasing, Associate Chris Adams, negotiated a new lease for 1,150 square feet at 1118 S. Orange Ave. representing Landlord WellMed Medical Management, Inc. of San Antonio, Texas. 

   Cranial Technologies, Inc. a Tempe Arizona-based medical firm is the new Tenant in Suite 201 of the 10,000 square foot medical professional building.     

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

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