Sunday, January 10, 2016

HFF closes $16.725 million sale of Publix-anchored retail center in Atlanta, GA


Hamilton Mill Village, 2463 Hamilton Mill Parkway, Northeast Atlanta, GA

Jim Hamilton
ATLANTA, GA – Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the $16.725 million sale of Hamilton Mill Village, an 88,710-square-foot retail center anchored by Publix in northeastern Atlanta, Georgia. 

HFF marketed the property on behalf of an unidentified investment advisor.  Phillips Edison Grocery Center REIT II, Inc. purchased the asset free and clear of existing debt.

Hamilton Mill Village is anchored by Publix, the No. 2 neighborhood grocer in the Atlanta MSA.  Additional tenants of the 92-percent-leased center include Menchie’s Frozen Yogurt, Orange Theory Fitness, Subway, Riverside Pizza, Unleashed by Petco, C2 Education, Great Cuts and Pro Nails. 

Located at 2463 Hamilton Mill Parkway, the property is located across the street from the Hamilton Mill master-planned community, which is a private country club community with a Fred Couples signature golf course. 

Hamilton Mill Village is situated on 11.06 acres in the Suwanee/Buford submarket and is proximate to Interstate 85, which provides a direct route to and from downtown Atlanta

The HFF team representing the seller was led by senior managing directors Richard Reid and Jim Hamilton.

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


Lincoln Property Company Sells Five-Building Phoenix Industrial Portfolio for $37.98 Million

  
 
Amr Ceran
PHOENIX, AZ – In a $37.98 million deal, Lincoln Property Company (LPC) has completed the sale of a five-building Northwest Phoenix industrial portfolio to Colorado-based REIT Industrial Property Trust, Inc.

The deal, which includes Lincoln Deer Valley and Lincoln Pinnacle Park assets, represents the powerful driving force of Phoenix’s mid-size industrial user.

“This is a perfect example of the success happening in Phoenix’s small- to mid-size industrial space,” said Lincoln Property Company’s Vice President Amr Ceran. “These buildings are 97 percent NNN leased with staggered expirations, and below-market rents that deliver a long runway of upside potential for the new owner. It is a great position to be in for both a buyer and a seller.”

LPC serves as property manager for both projects, and will continue do to so for the new owner. This continues a long-standing relationship between the companies that was established in 2013, when LPC sold Broadway 101 to a former entity of Industrial Property Trust for more than $77 million.

 LPC continues to manage the 11 building, 808,000-square-foot Broadway 101 industrial park as part of LPC’s 8 million-square-foot local property management portfolio.

Darla Longo
The Lincoln Deer Valley project is located at 21420 and 21430 N. 15th Ln. in Phoenix, and Lincoln Pinnacle Park is located at 23040 N. 11th Ave. in Phoenix – on sites to the direct north and south of Phoenix Deer Valley Municipal Airport.

Together, the buildings total 340,646 square feet of state-of-the-art, Class A single and multi-tenant industrial space. 

They provide a range of suite sizes to meet the needs of a wide variety of users – a combination that has attracted 19 unique tenants including Petsmart, Alstom, Reynaer’s, US Air Conditioning Distribution and California Closets. Industrial neighbors include Honeywell and FedEx.

Constructed between 2005 and 2006, Lincoln Deer Valley and Lincoln Pinnacle Park offer 24- to 30-foot minimum clear heights, ample trailer storage and car parking. They are located approximately 2.5 miles from one another with direct access to I-17 and the Loop 101 freeway, and are minutes from the Phoenix Deer Valley Municipal Airport, one of the nation’s busiest general aviation airports.

Barbara Emmons
Tenants also benefit from Foreign Trade Zone status, providing state and local tax incentives and on-site job training programs.

Darla Longo, Barbara Emmons, Dan Calihan and Pat Feeney of CBRE represented LPC in the sale.

“Phoenix’s industrial market is flush with active, growth-minded companies who have pushed industrial vacancy rates to near single-digit status,” said LPC Director of Management Services Alisa Timm, who directs the company’s property management strategy.

 “Much of this activity is happening in the 5,000-square-foot to 50,000-suare-foot range – the precise type of tenants who occupy projects like Lincoln Deer Valley and Lincoln Pinnacle Park. This requires a broad understanding of property management, but it also creates very diverse opportunities for our team to shine.”

LPC purchased the five-building portfolio in 2011 from Cornerstone Real Estate Funds as part of a strategy to purchase and stabilize core, institutional-grade industrial space. Through an aggressive leasing plan, LPC – in partnership with Steve Sayre, Pat Harlan and Kyle Westfall of JLL – improved the project from 70 percent to nearly 100 percent occupied.

The sale of Lincoln Deer Valley and Lincoln Pinnacle Park caps off a record-breaking year for the Phoenix office of Lincoln Property Company, who since January 2015 has generated more than $271 million in metro Phoenix investment and development activity.


Alisa Timm
 This includes the company’s very recent, $44 million purchase of the historic Luhrs City Center in downtown Phoenix, the $58 million LPC-Oaktree Capital Management purchase of Biltmore Commerce Center in Phoenix, the $42.3 million disposition of Camelback Square in Scottsdale and the $65 million LPC-Goldman Sachs purchase of Promenade Corporate Center in Scottsdale. 

It also includes the development and delivery of the $24 million Waypoint Building One office property in Mesa.

LPC is actively marketing pre-lease and/or design-build opportunities for Waypoint Building Two, and in March was selected to develop the first phase of Class A and mixed-use office space for The Grand, a 60-acre, urban mixed-use property within Papago Park Center.

To discuss additional investment opportunities with Lincoln Property Company in the Desert West Region, please contact David Krumwiede or Amr Ceran at (602) 912-8888.

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

Stacey Hershauer
focusAZ
Marketing & Public Relations
(480) 600-0195

Saturday, January 9, 2016

JLL Completes Corporate HQ Lease Expansion for Bar S Foods in Phoenix, AZ


John PIerson
PHOENIX, AZ– Tenant representation experts in the Phoenix office of JLL have completed a corporate headquarters expansion lease for Bar S Foods Co., a Phoenix-based corporation that has operated in the Valley since 1981.

The lease brings the Bar S headquarters, located on Phoenix’s Camelback Corridor at 5090 N. 40th Street, to 49,174 contiguous square feet.

JLL Managing Director John Pierson and Senior Managing Director Steve Corney represented Bar-S in the lease. CBRE brokers Jerry Roberts, Corey Hawley and Pat Boyle represented the building owner, Lowe Enterprises Investment Management, LLC.

“This lease allows Bar S to control the entire third floor of the 5090 building,” said Pierson. “With demand for well-located Phoenix office space continuing to rise, it was a good time for the company to formalize its expansion and safeguard the space it needs to continue to grow and thrive in its hometown.”

Bar S was founded in Phoenix in 1981, and since then has become a leading manufacturer of processed meats and a top-selling hot dog brand in America. The company operated a midtown headquarters location for two decades before moving to its new location on the Camelback Corridor in 2011

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

Stacey Hershauer
focusAZ
Marketing & Public Relations
(480) 600-0195

Annaly Capital Management, Inc. Expands Leadership Team


NEW YORK, NY --(BUSINESS WIRE)-- Annaly Capital Management, Inc. (NYSE:NLY) (“Annaly” or the “Company”) announced promotions of senior officers, recent new hires and a broad expansion of the Operating Committee, the Company’s firm-wide management team.


Kevin Keyes, Annaly’s Chief Executive Officer and President commented: “We have made significant progress in establishing a team with broad and complementary expertise to manage and lead the firm now and in the future. With several key roles filled, Annaly is poised to continue to grow and effectively manage our diversified investment strategies.”


Annaly is proud to announce the following promotions:

David L. Finkelstein has been named Chief Investment Officer, Agency and RMBS. David is also a member of the Operating Committee. He joined Annaly in 2013 from the Federal Reserve Bank of New York where he served as an Officer in the Markets Group and was the primary strategist and policy advisor for the MBS purchase program.

Helen W. Crossen has been named Chief Administrative Officer of Annaly and will also become a member of the Operating Committee. Helen joined Annaly in 2014 as the Head of HR. Helen will be responsible for overseeing the daily activities of employees and internal operations of Annaly.


Peter Dancy has been named Head of Middle Market Lending. Prior to joining Annaly in 2010, Peter had been Managing Director and Head of U.S. Sponsor Coverage for Bank of Ireland.

Jessica LaScala has been named Head of Investor Relations. Jessica joined the Company in 2014 and was most recently a Director of Portfolio Management in Annaly’s Agency Group.

In addition to the foregoing promotions, Annaly is announcing the addition of senior hires across its investment businesses and within its corporate infrastructure. The additions to the management team are profiled below:

Agency and RMBS

Johanna Griffin has joined Annaly as Managing Director, Head of Agency and Non-Agency MBS Risk. She joined the firm from Barclays PLC where she was Global Head of Market Risk for Securitized Products. Johanna has also held senior risk roles at UBS AG, as a Managing Director in its Fixed Income and proprietary hedge fund divisions. Johanna has extensive experience with MBS, analyzing trading strategies and establishing risk frameworks to identify, measure and mitigate risks. Johanna graduated from Villanova with a B.A. and is a member of the Global Association of Risk Professionals.
  


Annaly Commercial Real Estate

John Montesi has joined Annaly as Managing Director – Syndications on the commercial real estate team. Prior to joining Annaly, John was a Senior Vice President at GE Capital Real Estate where he structured, priced and led the real estate loans syndications and mezzanine debt placements for portfolio and single asset loans.

Paul C. Mundinger has joined Annaly’s commercial real estate legal team as a Managing Director, Associate General Counsel. Paul has over 30 years of experience as a commercial real estate attorney, including the last 23 years with the in-house legal department of GE Capital Real Estate.

Annaly Corporate

Audrey K. Susanin has joined Annaly as Director, Associate General Counsel. Prior to joining Annaly, Audrey was a Vice President and Assistant General Counsel at News Corporation advising on matters related to corporate governance, shareholder activism and engagement, securities laws and executive compensation


Howard J. Kim has joined Annaly as a Director, Head of Compensation, Benefits and HR Operations. Prior to joining Annaly, Howard was the head of Global Compensation at NASDAQ, Inc.

Given Annaly’s continued growth and expansion into diversified investment businesses and the evolving market environment, the Company has expanded its firm-wide Operating Committee with complementary and broad experience. In addition to the previously mentioned new members, the Company has added the following executives to the Operating Committee:

Steven F. Campbell, Head of Credit Strategy. Steve joined Annaly in April 2015 from Fortress Investment Group LLC where he held various roles over six years as a Managing Director in the Credit Funds business.

Anthony C. Green, Deputy General Counsel. Anthony joined Annaly in 2009 from K&L Gates LLP where he was a partner in the Corporate, Securities, Mergers & Acquisitions Group. Anthony earned his B.A. from the University of Pennsylvania and J.D. and LL.M. from Cornell Law School.

Michael Quinn, Co-Head of Commercial Real Estate. Mike joined Annaly in January 2014 and along with Jeffrey J. Thompson, Co-Head of Commercial Real Estate, oversees Annaly’s commercial real estate business and team.


Effective in January 2016, the members of the Company’s Operating Committee are:

·     Kevin G. Keyes, Chief Executive Officer and President
·     Wellington J. Denahan, Executive Chairman
·     Glenn A. Votek, Chief Financial Officer
·     R. Nicholas Singh, Chief Legal Officer
·     David L. Finkelstein, Chief Investment Officer, Agency and RMBS
·     Timothy P. Coffey, Chief Credit Officer
·     Helen W. Crossen, Chief Administrative Officer
·     Steven F. Campbell, Head of Credit Strategy
·     Anthony C. Green, Deputy General Counsel
·     Michael Quinn, Co-Head of Commercial Real Estate
·      
For a complete copy of the company’s news release, please contact:

View source version on businesswire.com: http://www.businesswire.com/news/home/20160107006273/en/

Annaly Capital Management, Inc.

Investor Relations, 888-8Annaly

Friday, January 8, 2016

Marcus & Millichap Arranges $5.3 Million Sale of 53-Unit Casa Corsicana Apartments in Seminole, FL


Casey Babb
SEMINOLE, FL – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Casa Corsicana Apartments, a 53-unit apartment community located in Seminole, Florida, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $5,300,000.

Casey Babb, CCIM and vice president investments, and Luis Baez, senior associate, both in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a Tampa-based private investor. 

The buyer, a private investor based in Newport Beach, California, was secured and represented by Tyler Leeson, vice president investments in the firm’s Newport Beach office. 

Casa Corsicana Apartments, a 53-unit, Class A, garden apartment community, is located at 12430 Rose Street in Seminole, Florida, which is just 1.8 miles from the beautiful Pinellas County beaches. The property consists of six, single-story buildings on a lushly-landscaped 3.61 acre site providing a low-density, park-like setting for residents. The units feature large, open floorplans averaging 925 square feet and are a mix of nine percent one-bedroom/one-bath, 76 percent two-bedroom/one-bath, 11 percent two-bedroom/two-bath and four percent three-bedroom/one-bath.

Luis Baez
“Casa Corsicana is a best-in-class apartment asset in its respective submarket after receiving a $1,500,000 rehab in 2014. As a result, it commanded what we think is record prices for small apartments in the Seminole submarket,” says Babb. “There is still a tremendous amount of runway left for rent growth and we expect the buyer will do very well with this property.”

“The buyer was in a 1031 exchange and was procured through a relationship between our Tampa and Newport Beach offices, which is a testament to our national platform and our ability to move capital throughout the country to service our clients’ real estate needs,” concluded Babb.

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

Richard D. Matricaria
Vice President/Regional Manager
Tampa, FL

(813) 387-4700

Bull Realty Brokers $7.6 Million Medical Office Building in Florida


 
Michael Bull
ATLANTA, GA (Jan. 8, 2016) —Healthcare Real Estate Services at Bull Realty brokered the sale of Lange Eye Institute, a 23,000  SF Class B Medical Office Building located in The Villages, FL. The sale closed on Dec. 15, 2015 for $7.6 million.

The property was 100% leased at the time of sale. Lange Eye Institute will remain the primary tenant. Other tenants include VIP Dentistry, Southern Trace Chiropractic, Center for Retina Macular Disease and Dr. Floyd Foot & Ankle.

The team of Michael Bull and Paul Zeman with Bull Realty worked with H.L. Roberts of H.L. Roberts Realty as the brokers on the deal.

The buyer was Flagship Capital Partners, LLC. “This is a long-term buy and hold for the buyer,” said Zeman.

Healthcare Real Estate Services (www.HealthcareRealEstateServices.com) are specialty brokers with Bull Realty, Inc. (www.BullRealty.com), a U.S. commercial real estate brokerage and advisory firm headquartered in Atlanta, licensed in nine states providing acquisition, disposition, leasing and advisory services.

The firm also produces and hosts the nationally-syndicated Commercial Real Estate Show (www.CREshow.com). The popular weekly show is broadcast on 47 radio stations nationwide, iTunes, YouTube and CREshow.com. Bull Realty FL License # CQ1026029
  
For a complete copy of the company’s news release, please contact:

Melissa Henry
Communications Associate
Bull Realty, Inc.
50 Glenlake Pkwy, Suite 600
Atlanta, GA  30328

404-876-1640 x 110

HFF closes sale of corner site near Lincoln Road in Miami Beach, FL



1575 Alton Road, Miami Beach, FL

 
Daniel Finkle
MIAMI, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of 1575 Alton Road, a 15,000-square-foot corner site one block south of Lincoln Road in Miami Beach, Florida. 

HFF marketed the property on behalf of the seller, Bridgestone Retail Operations, LLC. 

1575 Alton is currently occupied by a Firestone service center but could accommodate a new mixed-use, multi-level structure up to 22,250 square feet.  

Built in 1935, the property is located at the southeast corner of Alton Road and 16th Street, one block south of Lincoln Road, one of the premier shopping districts in the country and top tourist attractions in Miami.

 Additionally, Alton Road is Miami Beach’s primary commercial north-south thoroughfare.

The HFF capital markets team representing the seller was led by managing director Luis Castillo and senior managing director Daniel Finkle.

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

Thursday, January 7, 2016

Peachtree Center Announces New 10,000 Square Foot Lease in Downtown Atlanta, GA


David Brown
ATLANTA, GA — Peachtree Center, the iconic six-tower, 2.5-million-square-foot mixed-use property in downtown Atlanta, is pleased to announce that Web.com has signed a five-year lease for 10,000 square feet of space at its Marquis I Tower.

JLL represented Banyan Street Capital, the owner of Peachtree Center, in the transaction, and Web.com was represented by Mohr Partners. 

Web.com, a leading provider of Internet services and online marketing solutions for small businesses, will relocate its 10,000-square-foot headquarters to Peachtree Center, taking occupancy in March 2016.

“We are thrilled to be a part of the growing technology scene happening in the heart of the city,” said David Brown, chairman, chief executive officer and president of Web.com.

 “Peachtree Center is viewed as one of the most attractive locations for innovative technology companies—we were drawn to it due to its proximity to transit via the on-site MARTA station, and abundant choice of amenities.”

“Downtown Atlanta is quickly growing into a hub for tech companies, and given our location in the heart of downtown, Peachtree Center is able to capitalize on that, offering firms like Web.com space that meets the needs of this next generation of office workers,” said David Horne, leasing associate for JLL who represented Banyan Street Capital in the transaction.

David Horne
“The reality is that Peachtree Center is accessible, walkable and offers that experiential element which allows us to attract companies in a variety of industries, including tech firms.”


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

Kathryn Farmer
The Wilbert Group
678-642-4301

 Twitter @webdotcom
Facebook at facebook.com/web.com


facebook.com/peachtreecenter.

NAI Realvest Negotiates Four Leases Totaling More than 8,200 Square Feet at industrial centers in the Metro Orlando area


 
Patty Nolff
ORLANDO, FL. – NAI Realvest recently negotiated four leases at industrial centers in the Orlando area for more than 8,200 rentable square feet.  

Michael Heidrich, a principal at NAI Realvest and associate Patty Nolff negotiated a new lease for 2,000 square feet at 6112 Hanging Moss Rd. in Hanging Moss CommerCenter on behalf of the landlord of the facility located off of N. Semoran Blvd.  The new tenant is Ostar Motorsports, LLC of Orlando.

Heidrich and Nolff also negotiated a new lease for 2,100 square feet representing the landlord Instrument Specialties in the industrial center located at 3875 St. Johns Parkway in Sanford.  Elroselabs, Inc. is the new tenant who was represented by Darryl Dotherow of Realty Capital Advisors.

Tom R. Kelley, II, CCIM represented the landlord at South Park Business Center for a renewal lease of 2,146 square feet occupied by the tenant PPT Strength and Conditioning at 8600 Commodity Circle. 

At Fairvilla Commerce Center off W. Colonial and Mercy Drive, the leasing team of Kevin O’Connor, Matt Cichocki and Mitch Heidrich represented the landlord Leonard Williams in a new lease agreement for 2,000 square feet at 577 Fairvilla Rd.  The new tenant is Awning Recover Specialist, LLC. 

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

Beth Payan Larry Vershel Communications, 407-644 4142 or 407-461 3781 lvershelco@aol.com

Crossman & Co. Completes Six New Leases for 10,420 rentable square feet at Four Shopping Centers in Fort Myers, FL


Sandra Woodworth
FORT MYERS, FL --- Crossman & Company, one of the largest retail leasing, management and investment sales firms in the Southeast, recently negotiated lease agreements with six new tenants for more than 10,420 square feet at four shopping centers in Fort Myers. 

Senior Associate Sandra Woodworth negotiated the transactions representing the landlords.

At University Crossings, 13401 Summerlin Rd. Textbook Brokers leased 1,669 square feet and

H&R Block leased 2,700 square feet bringing the 77,500 square foot center to 100 percent leased.   

Wine and Design of Fort Myers and Mona Lisa Italian Restaurant each became new tenants in 1,875 square foot units at Shoppes at Fiddlesticks, 13650 Fiddlesticks Blvd. That center is 90.95 percent leased.

Tracy Worrell
Woodworth said La Michoacana Ice Cream signed a new lease for 1,225 square feet at The Crossroads, 5781 Lee Blvd. in Lehigh Acres.   The 74,240 square foot retail center is currently 95.72 percent leased.    

In the Southpointe Commons shopping center at 5997 S. Pointe Blvd.,Woodworth negotiated a lease renewal with City Nail who occupies 1,260 square feet.  

Crossman & Company Senior Associate Tracy Worrell negotiated a new lease with Great Clips for 1,080 square feet and now the 58,670 Southpointe Commons is 97.55 percent leased.


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


Beth Payan Larry Vershel Communications, 407-644 4142 or 407-461 3781 lvershelco@aol.com



. Lincoln Harris Brings Life Time to Rea Farms Development in Charlotte, NC


Betsy McIntyre
CHARLOTTE, NC — Life Time Fitness Inc., a Minnesota-based health and lifestyle company operating 119 centers across the United States and Canada, has plans to open at the Rea Farms development in southeast Charlotte on Providence and Ardrey Kell Roads.

Betsy McIntyre of Lincoln Harris’ Charlotte office represented the landlord, Rea Farms Development LLC, in the transaction, and Dave Oster, Life Time director of real estate and development, represented Life Time.

Life Time acquired a 24-acre site within the master planned Rea Farms development and will offer a health and fitness experience unique to the area including an indoor/outdoor aquatic center, an indoor/outdoor tennis complex and walking trails, as well as a full service salon and spa and a healthy café. Life Time expects completion of the Rea Farms destination in spring of 2017.

“Rea Farms will be a tight-knit neighborhood and a total lifestyle destination focused on health and wellness like Life Time, which will truly complement the vitality of the community,” said John W. Harris, CEO and Chairman of Lincoln Harris.

 “It also matches the goals the Rea family has for the development of the land. Having Life Time in the development further fosters a healthy lifestyle for those living, working and playing in Rea Farms. There isn’t anything else like this in Charlotte.”

Rea Farms is a master planned mixed-use development project on the site of the former Charlotte Golf Links golf course which was once part of the Rea family farm.  In addition to Life Time, Rea Farms will include office space, a retail shopping center, a school, a multifamily project and a single-family neighborhood.

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

Savannah Durban • The Wilbert Group
1720 Peachtree St., Suite 350 • Atlanta, Ga. 30309
O: 404-343-0870  • M: 404-901-4433
@SavannahDurban


  

Chicago-based Kass Management Services Retains Taylor Johnson


Emily Johnson
CHICAGO, IL – Taylor Johnson President Emily Johnson has announced the public relations firm now represents Chicago-based Kass Management Services, a third-party property management firm whose portfolio comprises over 9,000 residential units and 600,000 square feet of commercial space throughout Chicago.

Founded in 1985, Kass Management specializes in rental and condominium properties up to 250 units, including affordable housing communities, and also provides property management services for a number of retail and office buildings.

 The firm currently manages more than 400 properties, including 5,000 rental units and 4,000 condominiums. Over the firm’s 30-year history, Kass Management has established a track record of enhancing asset value and tenant/owner services while reducing operating costs. 

The firm’s experienced principals include Gary Kass, president of Kass Management and the Lincoln Park Builders of Chicago, and Mark Durakovic, vice president of Kass Management. Together, they have more than 50 years of property management experience and are among Chicago’s most respected and well-known real estate experts.

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

Kelly Shumaker at Taylor Johnson at (312) 267-4519 or kshumaker@taylorjohnson.com.


Voit Reports Orange County, CA Office Lease Rates Rise for 11th Consecutive Quarter; Industrial Market Posts Lowest Vacancy Rate Ever


Jerry Holdner
           Orange County, CA  – The Orange County office market continued to improve in 2015, posting over 850,000 square feet of positive net absorption for the year.  The fourth quarter of 2015 marked the eleventh consecutive quarter of rising lease rates. 

The average asking full-service gross lease rate finished the fourth quarter at $2.26, an increase of eighteen cents from 2014’s average asking rate, according to a new Fourth Quarter Market Report from Voit Real Estate Services.

“This is great news for the Orange County market overall,” explains Jerry Holdner, Vice President of Market Research at Voit. 

“The rise in lease rates demonstrates that the market continues to improve, which further supports the recovery we’ve been forecasting for the past 12 to 24 months.”

Demand for Office Product Increases

As a whole, the Orange County office market posted over 850,000 square feet of positive net absorption in 2015, giving the market a total of over 4.3 million square feet of positive absorption since the first quarter of 2013, according to Voit’s report.

One trend to note, according to Holdner, is the increase in construction.  Total space under construction came in at just over 1.8 million square feet for the fourth quarter of 2015. Most of the current construction is occurring in the Irvine Spectrum submarket, 1.7 million square feet.  “We should see an increase in construction in the coming quarters, as typically the cranes come out when vacancy dips below 12%.” 


As 2015 came to an end, direct/sublease space (unoccupied) finished the year at 10.78%, a decrease from the previous year’s rate of 11.5% and significantly down from both the recession peak of nearly 18% in the third quarter of 2010 and the market high of 23% recorded in 1990.

Holdner notes “We are continuing to see a decrease in the amount of vacant and available space on the market, even with new product being delivered.  As we progress into 2016, positive absorption and higher occupancy costs should continue, new deliveries in the southern half of the county may apply upward pressure on vacancy, and the market will further improve.”

Vacancy and Availability in Industrial Market Reach Pre-Recession Levels

The Orange County industrial market took significant strides toward continued improvement in 2015 with significant positive absorption for the year, a six-cent or 9.5 percent increase in asking lease rates, and significant drops in both vacancy and availability.

“Overall in the Orange County industrial market over the last three years, vacancy has reduced 37 percent while availability has decreased 23.2 percent,” says Holdner.  “The substantial decreases in vacancy and availability are contributing to the gains in asking lease rates and sale prices.”

  Both vacancy and availability continued trending downward throughout 2015. Vacancy ended the fourth quarter of 2015 at 2.33 percent, the lowest rate ever recorded and a drop of over 23.5 percent from 2014’s fourth quarter.  Likewise, availability posted a rate of 4.47 percent at the close of the year, the lowest rate in nearly ten years, and a decrease of almost 17 percent from 2014.  The record low rate recorded for availability was 4.29% in the fourth quarter of 2005.

As lease rates rise, sale prices are also ticking up, notes Holdner, who attributes this trend to the diminishing supply of industrial product for sale in Orange County, particularly in buildings smaller than 100,000 square feet.


“Currently, only around one percent of the inventory in the Orange County industrial market is available for sale.  This lack of supply will continue to place upward pressure on pricing going forward,” he explains.

“Overall, it’s a great time to be a seller, but we continue to be cautiously optimistic about the Orange County market,” says Holdner.  “We continue to see improvement in both the office and industrial markets, and we anticipate positive gains moving forward, provided job creation continues.”


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

  Jerry Holdner

  Voit Real Estate Services

  (949) 263-5371




Bayer Properties Announces Joint-Venture Purchase of Colony Crossing at Madison in Madison, MS


Jeffrey Bayer
BIRMINGHAM, AL, (Jan. 7, 2016) – Bayer Properties, LLC, one of the nation’s premier real estate companies, and Savannah-based Wicker Park Capital Management, LLC, a U.S. real estate investment management firm, recently completed the acquisition of Colony Crossing at Madison, a 77,427-square-foot grocer shadow anchored neighborhood center located in Madison, Mississippi.

 This represents the second joint venture between Bayer Properties and Wicker Park Capital Management—the first was Germantown Collection retail center in Germantown, Tennessee.

Bayer Properties will lead leasing, property management and marketing efforts for Colony Crossing at Madison.

 “Wicker Park Capital Management is an investment management firm with excellent investment experience and market knowledge, and we are honored to partner with them in the acquisition of Colony Crossing at Madison,” said Jeffrey Bayer, president and CEO of Bayer Properties.

Mark Ibanez
 “Madison is consistently named as one of the most affluent cities in Mississippi, and we are excited about the opportunities this acquisition will bring to our portfolio.”

Colony Crossing at Madison was developed in 2005 and is conveniently located off I-55 in Madison and is in close proximity to major residential and commercial developments.

 The tenant mix features a variety of service, professional and retail businesses such as Orangetheory Fitness, The Landing, Massage Envy, Donut Place, Pizza Inn, Georgia Blue and Nagoya Japanese Restaurant and is shadow anchored by The Home Depot, Kroger Grocery and 134-room Hilton Garden Inn.

“We are excited to partner with Bayer Properties again, a firm dedicated to improving the quality of life in the communities it serves,” said Mark Ibanez of Wicker Park Capital Management. “We have a strong relationship with the Bayer team, and look forward to maximizing the performance of Colony Crossing at Madison.”

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

Kathryn Farmer
678-642-4301


American Realty Advisors Sells Office Center in Orange County, CA

  
18201 Von Karman, Irvine, CA

 
David Hubbs
Orange County, CA, Jan. 7, 2016 – American Realty Advisors announced the sale of 18201 Von Karman, a 229,000 square-foot, 11-story Class A office building located in Irvine, California.

According to David Hubbs, Senior Portfolio Manager at American, 18201 Von Karman has all of the characteristics that institutional buyers of core product are seeking, including a great location, high occupancy, recently renovated common areas inside and out, amenities within walking distance, and strong curb appeal.

“The property offers the new buyer access to a high-quality asset in the highly sought after Airport submarket,” says Hubbs. “We achieved success with this property, and we believed it was time to sell into a market characterized by strong investor demand.”

The property is located within Orange County’s premier Greater Airport Area Submarket, an area which features tenants in the technology, engineering, media, entertainment, financial services and creative office fields. 

The buyer is New York Life Real Estate Investors, a subsidiary of New York Life Insurance Company. The property was marketed by Ryan Gallagher and Mike McCann of Holiday, Fenoglio, Fowler.

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

Lexi Astfalk / Jenn Quader
Brower, Miller & Cole
(949) 955-7940