BKM Enters Denver Market with $20 Million Acquisition of Value-Add 215,000-SF Multi-Tenant Industrial Park

Brian Malliet

         

            DENVER,CO – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired Inverness Business Park, a Class A, 215,268 square-foot, eight-building industrial asset for $20,200,000, reflecting a 57-percent discount to replacement cost, according to Brian Malliet, CEO of BKM Capital Partners. This is BKM’s first acquisition in the Denver, Colorado market.

“Denver is a dynamic market with strong fundamentals and tremendous growth potential,” states Malliet. “The property is situated in the the affluent area of Englewood, within the Southeast submarket, which is the largest in the Denver metro area. This provides access to a strong base of potential tenants in various business sectors.”

Inverness Business Park, Englewood submarket, Denver, CO

Inverness Business Park is situated within a 980-acre high image master plan anchored by major companies such as Boeing and Comcast. The property fronts Inverness Golf Course and is readily accessible from Interstate 25, the major north-south transportation corridor that runs through the heart of Denver.  The asset is 91-percent occupied by 86 tenants averaging approximately 2,750 square feet, according to Malliet.

“This acquisition is well-aligned with our ongoing investment strategy, which is to identify extremely well-located, institutional quality industrial assets with a value-add opportunity,” says Malliet.  “Drawing upon our in-house management platform and niche expertise in multi-tenant industrial, we will be able to quickly improve the asset and bringing rents to market, generating strong yields for investors.”

BKM plans to invest nearly $2 million in upgrades to the asset, including a complete rebrand to reintroduce the asset to the market, as well as fresh paint, upgraded landscaping, cosmetic upgrades to the lobby and signage, and various structural improvements, such as improved roofing, parking surfaces, and HVAC.

Brett Turner

“There is an immediate opportunity to increase NOI in this asset by leveraging current demand from image-conscious tenants seeking a location near major regional anchors such as the Denver Tech Center,” says Brett Turner, the Director of Acquisitions. “As we execute on our strategy, we will be able to quickly improve operational efficiencies and maximize the value of this multi-tenant industrial asset.  Moving forward, we are seeking additional assets in the Denver metro area in order to continue to build value and increase economies of scale.”

            BKM Capital Partners acquired Inverness Business Park from a private family office.  Newmark Knight Frank represented the seller in the transaction. BKM was not represented.

            The property is located at 14 Inverness Drive East in Englewood, Colorado.

For more information, please contact:

Jordan Kruk /Lexi Astfalk

Brower Group

(949) 955-7940

JKruk@brower-group.com

www.bkmcapitalpartners.com. 

Millennial Buyers Feel the Brunt of Rate and Price Hikes

Danielle Hale

SANTA CLARA, CA (April 4, 2018) – As interest rates and home prices continue to rise, millennial home buyers are more likely than older buyers to adjust what they are shopping for, according to a new survey released today from realtor.com^®, a leading online real estate destination. 

Two factors contributing to this market sensitivity are millennials’ likelihood to carry more student loan and other debt and put less down than other buyers. 

 According to the online survey of more than 1,000 active buyers conducted in March by Toluna Research, 79 percent and 83 percent of respondents of all ages, respectively, said rising interest rates and home prices will impact their home search. That rises to 92 and 93 percent for buyers ages 18 to 34 years old. 

Only 17 percent and 21 percent of all buyers indicated prices and rates would have no impact.

 “Existing debt and lower down payments leave younger shoppers more exposed than others to the impact of rising mortgage rates and record-high home prices,” said Danielle Hale, chief economist for realtor.com^®. “These obstacles won’t prevent millennials from finding and buying homes, but most will have to adapt to these challenging market conditions by adjusting their home search.”

Full results of the surveys are available at:

https://www.realtor.com/research/millennial-buyers-feel-the-brunt-of-rate-and-price-hikes/

Realtor.com^® also recently surveyed house hunters about what they are looking for in a home:

 http://news.move.com/2018-03-30-Rising-Rents-Push-Millennials-to-Become-Homeowners

It also surveyed buyers on about the hotly competitive spring buying season:

http://news.move.com/2018-03-22-Homebuyers-Pull-Out-All-the-Stops-for-Hotly-Competitive-Spring-Market

For more information, please contact:

Janice McDill: janice.mcdill@move.com

Lexie Puckett Holbert: lexie.puckett@move.com

www.realtor.com^®

Commitment to Community: Howard Johnson Partners with the Y

Cynthia Liu

PARSIPPANY, NJ – Millions of local Y members and their families across the U.S. are getting something extra to smile about today thanks to Howard Johnson and its newly launched partnership with YMCA of the USA.

Focused on encouraging families to stay active, make memories and of course, have fun, the partnership centers around Howard Johnson’s new national sponsorship of the 2018 YMCA National Swimming and Diving Championships and gives members the opportunity to save up to 20% off at HoJo hotels across the country, with 5% of every booking benefiting the non-profit.

“The Y is one of the most well-known and respected organizations in the world and three out of every four Howard Johnson hotels are located within just 10 miles of a local  Y branch” said Cynthia Liu, brand leader and vice president of operations for Howard Johnson.

4  “We want to play a bigger role in giving back to the communities where our hotels operate, so finding a partner who not only shared our family-focused values but brought the scale and reach necessary to make a meaningful impact was really important.”

“Howard Johnson and the Y have parallels, particularly when you think about the iconic status of both brands,” said Valerie Barker Waller, senior vice president and chief marketing officer, YMCA of the USA. “We’re proud to have their support behind one of our marquee events and know that the investment they’re making—directly through sponsorship and a donation campaign and indirectly through their member discount—will ultimately enable the Y to continue its  work strengthening communities and building a better us.”

Coinciding with the partnership, Howard Johnson will launch a campaign of new creative and on-property collateral, all with the tagline: “Go Happy. Go Healthy.” 

Valerie Barker Waller

The 2018 YMCA National Swimming and Diving Championships are a series of three, multi-day, multi-city events, which started last week with the YMCA Short Course National Championship at the Greensboro Aquatic Complex in Greensboro, N.C. and continue with stops later this spring and summer at the YMCA National Diving Championship and YMCA Masters Meet in Fort Lauderdale, Fla. and the YMCA Long Course Championship in College Park, Md. 

Combined, the three events bring together over 3,000 student athletes and more than 18,000 spectators. Additional activations between the two brands are expected later this year.

  

For more information, please contact:

Rob Myers

Wyndham Hotel Group

22 Sylvan Way

Parsippany, NJ 07054

Rob.Myers@wyn.com

wymca.net.

 www.whgdevelopment.com.
www.wyndhamworldwide.com.
Wyndham Hotel Group 
www.hojo.com.
NYSE: WYN

Stirling International Named Exclusive Sales-Marking Agents for West Bay Avenue New Custom Victorian Homes Under Construction in Historic Downtown Longwood, FL

Marisol Santiago Soderstrom

LONGWOOD, FL--- Stirling International Real Estate has been named exclusive sales and marketing agents for historic W. Bay Ave -- four custom, two-story Victorian designed residences under construction at 262-276 W. Bay Ave. in Longwood’s Downtown Historic District.

Stirling Associate Marisol Santiago Soderstrom, who is representing the builder Oakwood Construction and Development, said two different models are offered. 

A three-bedroom, two-and-a-half bath home with 1,753 square feet of living area is priced from $259,000, and a four-bedroom, three-and-a-half bath home with 2,030 square feet is priced from $279,900.   Both feature rear entry two-car garages.

Soderstrom said the W. Bay Ave homes are attractively priced within the hottest segment of the market today and below most new builder homes of similar size and features in the area.   

All four homes will sell during construction and homebuyers can choose from a large selection of cabinetry, countertops, tile and floor coverings, and several upgrade options that are available.

The four W. Bay Ave homes blend in with the neighborhood’s historic look and are a few blocks from South Seminole Hospital and the fire and police departments.  Convenience to restaurants, shopping and the SunRail station is also an asset.

“Residential opportunities like W. Bay Ave are few.  In most communities worldwide where commuter lines like SunRail have been developed, residences sell quickly,” she said. “Buyers will immediately recognize the tremendous value that these homes offer both for investment and livability.”

For more information, please contact:

Larry Vershel or Beth Payan, Larry Vershel Communications

407-644-4142   Lvershelco@aol.com.

  

BLT Enterprises Acquires Golf Manufacturing Facility in San Diego, CA for $38 Million

Industrial Facility, Carlsbad, CA

Bernard Huberman

San Diego, CA – BLT Enterprises, a multi-faceted real estate investment company, has acquired a 166,310 square-foot industrial facility in the Carlsbad submarket of San Diego, California that is fully leased to a global leader in golf equipment and apparel. The property, which serves as a manufacturing facility, was acquired off-market for $38,250,000.

“This was a rare opportunity to invest in a Class A industrial property with a major credit tenant in place, representing a tremendous long-term value proposition,” says Bernard Huberman, Founder and CEO of BLT Enterprises. “The acquisition is well-aligned with our ongoing platform, which is to make strategic investments that deliver value over long hold periods.”

Huberman points to an increasing tightening in the San Diego industrial market, specifically in the North County region, as an indication of why the timing was right for this acquisition.

Ron Jacobson

“Industrial vacancy ended 2017 at 4.97-percent - a 13 basis point drop from the prior quarter,” he says. “That said, development has ramped up, and with more than 1.8 million square feet of product under construction, supply will soon begin to meet demand.  In this case, our new tenant recently renewed its full-building lease for ten years, delivering strong, consistent cash flow for the next decade.”

Ron Jacobson of SD Realty Partners represented BLT Enterprises as the buyer, and Aric Starck of Cushman & Wakefield’s San Diego office represented HGREIT II 2819 LOKER LP as the seller in the transaction.

The property is located at 2819 Loker Avenue in Carlsbad, California.

Aric Starck

Headquartered in Santa Monica, Calif., BLT Enterprises was founded in 1984 and is a multi-faceted real estate investment company with an exceptional track record of success in industrial and commercial real estate. The firm has developed or acquired more than $2 billion in assets to date.

BLT Enterprises specializes in the acquisition, entitlement, development, operation, and property management of industrial, office, retail, mixed-use and special-use properties.

For more information, please contact:

Kat Castagnoli / Lexi Astfalk

Brower Group

(949) 955-7940

kcastagnoli@brower-group.com

Hanley Investment Group Completes Sale of Six Retail Pads at Walmart-Anchored Shopping Center in Inland Southern California Totaling $29.5 Million

Perris Marketplace, Perris, CA

PERRIS, CA - Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm has completed the sale of six retail pads in separate transactions at Perris Marketplace, a 225,000-square-foot Walmart Supercenter-anchored shopping center in the City of Perris, California.

Bill Asher

The 100-percent-occupied properties totaling approximately 39,000 square feet consisted of three multi-tenant pad buildings and three single-tenant fast-food pad restaurants. The combined sales price for the six pads was approximately $29.5 million.

Hanley Investment Group Executive Vice President Bill Asher and Senior Associate Jeff Lefko represented the seller, owner and developers Evergreen and Trachman Indevco, in the sale of the six retail pads.

 Spanning the last 42 years, Evergreen is a national retail and multi-family development company with heavy emphasis on developing projects in California, Colorado, Arizona, and Utah. Trachman Indevco is a real estate investment and development company that specializes in new ground-up retail development and retail development/repositioning opportunities in southern and central California. 

“On behalf of the partnership we are extremely happy with the professionalism, strategic execution and outstanding results that Bill Asher and Hanley Investment Group exhibited throughout the sales of multiple transactions of both single-tenant and multi-tenant assets,” said Andy Trachman, president of Trachman Indevco.

Perris Marketplace is located at 1820-2000 North Perris Boulevard in Perris, less than ¼ mile from the heavily traveled I-215 freeway. The center was originally planned to include two multi-tenant shop buildings but, due to the high demand, a third approximate 12,500-square-foot shop building was added to accommodate tenant interest.

Jeff Lefco

 The impressive line-up of retailers features a variety of popular food and service tenants including America's Best Contacts and Eyeglasses, Chipotle, Dickey's BBQ, Great Clips, Jamba Juice, Jimmy John’s, Pacific Dental, Panda Express, Pieology, Popeye's, Sally Beauty, Starbucks, T-Mobile, Verizon Wireless, Waba Grill, Wendy’s and Yogurtland.         

“Investors and the eventual buyers were very attracted to the overall strength of the location and the history of Walmart being established in the area since 1992,” said Asher.

“The original Walmart in Perris was the first to open in all of Riverside County. The relocation to the subject site to build a new Supercenter format store in 2015 showed Walmart’s long-term commitment to the region and was a key driver to investors’ interest in each pad within the project.”

“We were able to maximize value for the owner through individual sales to private non-institutional investors in a price range ($2-$10 million) that in today’s market appeals to arguably the largest buyer pool in the retail investment industry.

"Four of the six buyers satisfied 1031 exchange requirements with most purchasing each asset because of the reliable stable income stream created by internet- resistant, service-based, national and regional credit tenants on new long-term leases,” Asher said.

“In addition to executing a break-up sale strategy, with interest rates rising and the overall retail market continuing to transition in regard to pricing, we implemented a pre-sale marketing process on multiple buildings prior to completion of construction to help the seller retain maximum value for the development.

Andy Trachman

"For multiple transactions, we were able to procure buyers for each asset prior to each building being completed, and structure closings after tenants had finished their build-outs and opened for business,” said Asher.

“Perris Marketplace is one of the best positioned and highest profile new regional retail sites in Riverside County. The combination of the quality of location, draw of Walmart and brand-new construction, were all factors that generated a significant amount of interest in each retail pad,” Asher said.

“Newly-built single-tenant NNN retail investments and multi-tenant retail leased to food and service-based credit tenants, will continue to be highly sought-after in today’s market,” said Asher. “We continue to experience steady demand and values have yet to significantly decline of this size and type over the past four years. Properties priced $10 million or less will remain the most active.”

For more information, please contact:

Anne Monaghan
MONAGHAN COMMUNICATIONS, INC.
anne@MonaghanPR.com
830.997.0963

www.evgre.com.

www.hanleyinvestment.com

www.trachmanindevco.com.

Continental Partners Secures Competitive Financing for Acquisition of 102,782-SF Retail Asset in Reno, NV

J.M. Grimaldi

 RENO, NV – Commercial real estate investment banking firm Continental Partners has successfully secured a loan for the acquisition of the 102,782 square-foot Mira Loma Shopping Center in Reno, Nevada on behalf of its Sponsor, a Los Angeles-based private investor.

            The $11.3 million loan is priced at 220 basis points over the 10-year swap rate at 69-percent loan-to-cost. It is structured at ten years fixed interest, with four-year interest only payments on a 30-year amortization option.

            The shopping center, which was at has a 92-percent occupancy at the time of acquisition, is located at 3310 South McCarran Boulevard in Reno, Nevada.

 The financing for the transaction was arranged by J.M. Grimaldi, Executive Vice President at Continental Partners.

Mira Loma Shopping Center, Reno, NV

“Lenders continue to take a conservative position when approaching commercial loans, and this is especially true of distressed retail assets, which tend to be viewed as higher risk,” says Grimaldi. 

“To secure competitive financing for this property, we demonstrated to potential lenders the strong fundamentals presented by the shopping center, despite neglect from previous ownership, and how the asset would benefit from the Sponsor’s plans to establish a hands-on landlord approach.”

The Mira Loma Shopping Center is anchored by CVS Pharmacy and local grocer Scolari’s Grocery. The Sponsor plans implement light value-add renovations to the center, as well as remediate environmental contamination issues remaining due to a former tenant. 

 For more information, please contact:

 Lindsay Mackay / Elisabeth Manville

Brower Group

(949) 955-7940

HFF arranges $8 Million acquisition financing for medical office building in Southern California

Redhawk Medical Center, Temecula, CA

 

Aldon Cole

SAN DIEGO, CA –– HFF announces $8 million in acquisition financing for Redhawk Medical Center, a 32,471-square-foot, multi-tenant medical office in the Southern California community of Temecula.

The HFF team worked on behalf of the borrower, Cypress West Partners, LLC (CWP), to place the seven-year, non-recourse, floating-rate loan with a commercial bank. 

Redhawk Medical Center is situated on 2.5 acres at 44272 George Cushman Court in Temecula, which is in the Inland Empire office market and equidistant between San Diego and Orange County. 

The medical office is proximate to the 140-bed Temecula Valley Hospital, which opened in 2013 and offers a comprehensive range of services.  The two-story building was completed in 2003 and is anchored by Vantage Oncology, which was recently acquired by the McKesson Corporation. 

The 95.1 percent-leased property is also home to a diverse range of tenants, including Pediatric Partners, California Imaging and Diagnosis, San Diego Fertility Center, New Point Wellness and Crescent Healthcare. 

Chris Cumella

The HFF debt placement team representing the borrower included senior managing director Aldon Cole. 

“HFF has continued to produce compelling debt terms for our healthcare assets,” said Chris Cumella, founder and principal of CWP.  “The team is in touch with the market and got us across the finish line.  This acquisition represents a chance for CWP to increase its profile in the Southern California market.”

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

 For more information, please contact:

KIMBERLY STEELE

HFF Digital Content/Public Relations Specialist

(713) 852-3420

ksteele@hfflp.com

 www.cypresswestpartners.com.

HFF announces $385 Million refinancing for Genesis North and South Towers in South San Francisco, CA

Olga Walsh

 

SAN DIEGO, CA –– HFF announces the $384.86 million refinancing of Genesis North and South Towers, two office and life science buildings totaling 717,883 square feet in South San Francisco, California.

The HFF team worked on behalf of the borrower, Phase 3 Real Estate Partners, Inc., to secure a $199.86 million, three-year loan through one of its life company relationship lenders for the recently completed Genesis North Tower. 

 The team secured a $185 million, five-year, floating-rate loan through a national commercial bank for the fully stabilized Genesis South Tower, the campus’s first phase. 

Genesis North and South Towers are located at One and Two Tower Place immediately adjacent to and visible from Highway 101 in South San Francisco’s life science hub. 

 This location is less than 10 minutes from the San Francisco Airport and proximate to the Bart/Caltrain lines of the San Bruno and South San Francisco stations. 

Todd Sugimoto

Due for completion in 2018, Genesis North Tower is a 21-story, 390,000-square-foot life science building.  Genesis South Tower was completed in 2016 and has 12 stories of laboratory and office space.  The project will include additional tenant and community amenities and offers panoramic views of the San Francisco Bay.

The HFF debt placement team representing the borrower included senior managing director Tim Wright, managing director Todd Sugimoto, senior director Zack Holderman and senior associate Olga Walsh.

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

 For more information, please contact:

KRISTEN MURPHY

HFF Director, Public Relations

(617) 338-0990

krmurphy@hfflp.com

  

HFF announces sale of Naugatuck Valley Shopping Center in Waterbury, CT

Jim Koury

BOSTON, MA –– Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of Naugatuck Valley Shopping Center, a 382,864-square-foot, grocery-anchored shopping center in Waterbury, Connecticut.

The HFF team marketed the property on behalf of the seller, and procured the buyer, Premium Property LLC and BH Premium Quality Waterbury LLC.

Naugatuck Valley Shopping Center is 77.1 percent leased and is anchored by the region’s highest grossing Walmart as well as a full service Stop & Shop.  The 50.5-acre site offers 2,155 parking spaces and features additional tenants such as Panera Bread, Bob’s Stores and Wendy’s. 

 Located at 950 Wolcott Street, the center is within close proximity of Interstates 84 and 95, the primary routes between Boston, Hartford and New York City.  The center benefits from a trade area comprising 100,000 residents within three miles of the center and 368,000 residents earning an average household income of $87,400 within 10 miles of the center. 

Naugatuck Valley Shopping Center,
Waterbury, CT

The HFF investment advisory team representing the seller included senior managing director Jim Koury. 

“As with many retail centers today, Naugatuck is going through a transitionary phase, which presents an exciting opportunity for the next owners to reposition the center by re-merchandising the tenancy to reflect the new wave of concepts in retailing,” according to Koury.

 For more information, please contact:

KRISTEN MURPHY

HFF Director, Public Relations

(617) 338-0990

krmurphy@hfflp.com