Andrew Kurnit of DWNTWN Realty Advisors Secures $19 Million Construction Loan for Townhome Development in Opa-locka, FL

Planned 112-unit townhome project on a 10-acre site at 1719 NW 143rd Street within an existing 59-unit townhome development called The Mirage at Sailboat Cove in Opa-Locka, FL

Andrew Kurnit

MIAMI, FL – Andrew Kurnit of DWNTWN Realty Advisors, the premier commercial real estate firm, arranged a $19 million construction loan from City National Bank of Florida for a townhome development in Opa-locka, Florida.

Real estate investment firm Redwood National Properties, in a joint venture with David Burstyn of Winston Capital Partners, LLC, plans to build 112 four-bedroom, two-and-a-half-bathroom units on the 10-acre site located at 1719 NW 143rd St.

 The venture closed on the site acquisition concurrently with the construction financing on August 27.

 Redwood is led by Brian A. Sidman of BAS Holdings Investments, LLC. Kurnit was engaged by BAS to provide financial analysis and capital advisory services for the project.

Brian A. Sidman

 The development will consist of 23 separate four and five-unit buildings and the developers intend to target Section 8 Housing Choice Voucher Holders in its leasing strategy.

 The townhomes are expected to be highly coveted as the community will be gated, lakefront and well-appointed, all rarities for affordable and workforce housing.

 “Miami’s affordable housing crisis is extensively documented, and four-bedroom units are amongst the scarcest,” said Kurnit, head of DWNTWN’s capital advisory practice.

“The project is unique for Miami as it contains enough acreage for townhome development, is both gated and lakefront and in close proximity to the region’s main employment and leisure drivers.”

The project is expected to begin delivering units in mid-2021, with full completion expected in early 2022. Each unit will feature contemporary finishes, high-impact windows and lake views. Coastland Construction will be the builder.

 Redwood’s site is located within an existing 59-unit townhome development called The Mirage at Sailboat Cove, which was initially constructed in 2007.

                           David Burstyn

 It is near Miami’s main transportation arteries and employment drivers, including I-95 and the Amazon mega-warehouse at Opa-locka Executive Airport.

 Kurnit spearheads DWNTWN’s capital advisory platform with a focus on securing debt financing and joint venture equity investments. Throughout his career, Kurnit has been involved in more than $2 billion of commercial real estate transactions, spanning all property types throughout the United States.

 For more information on DWNTWN’s other deals, 

visit https://dwntwnrealtyadvisors.com/.

  CONTACT:

Eric Kalis

Vice President

 BoardroomPR

ekalis@boardroompr.com

O 954-370-8999 

C 305-794-5123

www.dwntwnrealtyadvisors.com.

Central Florida retail center to undergo $10.9 million major redevelopment

 Pearl Britain Plaza, Ocala, FL

Rick Baer

MIAMI, FL – JLL Capital Markets announced it has arranged $10.9 million in financing for the redevelopment of Pearl Britain Plaza, a Publix-anchored neighborhood shopping center in the central Florida community of Ocala, Florida.

JLL worked on behalf of the borrower, a Miami-based family office and American Commercial Realty Corp. (ACR), the developer, to place the seven-year, fixed-rate loan with First Florida Integrity Bank. 

Loan proceeds will be used for the redevelopment of the property. 

George Kleier

The borrower plans on demolishing the existing Publix building at Pearl Britain Plaza that was constructed in 1991 and building a new 48,387-square-foot Publix supermarket with a drive-thru pharmacy anchoring the rebuilt 77,637-square-foot retail center. 

Publix has the No. 1 grocery market share in Florida. The redeveloped retail center will have improved visibility and access from all adjacent roads as well as a new façade, lighting and landscaping.

All the existing tenants have shown their commitment to the project post-renovation by contracting to stay at Pearl Britain.

Located at the intersection of NE 35th St. and NE 25th Ave., Pearl Britain Plaza is in Ocala, which is approximately 85 miles north of Orlando and 90 miles southwest of Jacksonville. 

 Justin Paul

The asset benefits from continued population growth and limited competition in the submarket.

“We are very pleased to have developed a plan which allows Publix to continue to serve the local market and its residents with an upgraded facility and improved appearance,” said Rick Baer, ACR President.

“A highlight of our efforts was the cooperation with the local government in developing a plan that benefits the center’s business while preserving the natural area surrounding it,” added George Kleier, ACR’s Director of Leasing and Development. 

Leasing Manager for the center, Justin Paul, pointed to the enthusiastic response he is receiving to the newly redeveloped spaces which will be available early in 2021.

Elliott Throne

The JLL Capital Markets team that represented the borrower was led by Managing Director Elliott Throne and Director Jesse Wright.

“The combination of a strong operator in ACR and a well-conceived business plan, led to a highly competitive lender field, even during a pandemic,” Throne said. “Once complete, this renovated Publix is in prime position to continue its exceptional sales trend.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization.

Jesse Wright.

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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

CONTACT:

Kimberly Steele

JLL Senior Associate

Public Relations

Phone: +1 713 852 3420

Email:  Kimberly.Steele@am.jll.com

AmComRealty.com.

firstfloridaintegritybank.com.

jll.com.

After Depressed Second Quarter, CBRE Projects U.S. Lodging Sector Recovery Path

  

Cindy Estis Green

Los Angeles, CA –– After facing the lowest occupancy levels since the 1930s and the greatest declines in revenues and profits ever experienced in the second quarter, the U.S. hotel industry is poised to begin a multiyear recovery in the third quarter.

According to Kalibri Labs, the number of room nights occupied in U.S. hotels during the second quarter was 60 percent less than a year earlier. With such a dramatic decline in demand, the national occupancy level for the quarter was just 28.3 percent.  

It is estimated that 15 percent of U.S. hotels were forced to close for some portion of the three-month period.

“Fortunately for U.S. hoteliers, indicators of market recovery began to emerge during the quarter.  

Jamie Lane

After bottoming out in April, lodging demand increased 83 percent in May and June,” said Jamie Lane, Senior Director of CBRE Hotels Research.  “This mini surge in demand was fueled by leisure travelers looking to escape the bonds of home quarantine for safe and healthy rural and resort destinations.”

Beyond last quarter’s nadir, CBRE Hotels Research is forecasting continued improvement in U.S. lodging performance through the remainder of the year and beyond. 

 According to the Q2 2020 edition of Hotel Horizons^®, U.S. hotel occupancy should average 39.8 percent, along with an average daily rate (ADR) of $104.10 for 2020.  The net result is an annual RevPAR level of $41.46, which is 52.5 percent less than the $87.22 RevPAR posted for 2019.

“U.S. lodging demand is forecast to increase by a compound annual growth rate of 14.1 percent over the next four years, recovering to 2019 levels by Q3 2023,” said Mr. Lane. 

Bram Gallagher

Recovery patterns vary by chain-scale.  Occupied room nights for hotels in the upper-midscale segment are projected to return to 2019 levels in 2022, while luxury and upper-upscale demand will lag until 2024.

“Economic, social and operational factors influence demand recovery,” said Bram Gallagher, Senior Economist with CBRE Hotels Research.  

“In the past quarter we observed geographically staggered rates of infection throughout the U.S. Therefore, CBRE forecasts an economic cycle shallower than initially anticipated, followed by a longer recovery.  In turn, this has extended our forecast of recovery in lodging demand to 2023 from 2022.”

New Data Provider, New Insights

Starting this quarter, CBRE entered into an agreement with Kalibri Labs to provide historical lodging performance data to underpin its Hotel Horizons^® econometric forecasting model.  As of June, Kalibri Labs collects daily transactional booking data from approximately 34,500 hotels offering more than 3 million guest rooms across the U.S.  

With this partnership, CBRE gains insights into how guests book their hotel rooms, the lead time for making their reservation, the length of time they stayed in the hotel, and the costs associated with all bookings. 

The Kalibri Labs data set also enables CBRE to more clearly demonstrate the disparities by market, so critical in a post-COVID world.

“The Kalibri Labs data has been extremely useful in 2020 as we attempt to understand the real impact of the COVID-19 virus on travel patterns.  

"For example, the global distribution system (GDS) and group booking channel information lets us make assumptions regarding the pace of recovery for markets and segments that are dependent on corporate and group demand,” Lane said.

Cindy Estis Green, CEO of Kalibri Labs, said, “Even before COVID, the operating environment had become more complex and more expensive as the booking process has moved online and the data is now available to illustrate the segments and channels that comprise demand along with their costs. 

 "Key market drivers can be clearly defined and as a result, CBRE’s important projections for the future can be considerably more refined and accurate.”

The Q2 2020 edition of Hotel Horizons® for the U.S. lodging industry and 65 major markets can be purchased by visiting: https://pip.cbrehotels.com. 

To view CBRE Hotels’ latest analysis of the impact of COVID-19 on the lodging industry, please visit: https://www.cbrehotels.com/en/global/covid-19

  

 CONTACT:

CHRIS DALY

PRESIDENT

DG Public Relations, LLC

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Main: 703-435-6293

Mobile: 703-864-5553

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 www.cbre.com.

Patrick Hagler Receives Philanthropy Award at National Settlement Services Summit

Patrick Hagler

Denver, CO -- Patrick Hagler, State Council-Georgia, Alliant National Title Insurance Co., has received the 2020 Philanthropy Award from October Research, LLC. The award was presented at the 2020 National Settlement Services Summit (NS3). The Philanthropy Award honors professionals in the title, underwriting, lending and settlement services industries for exemplary accomplishment in the area of philanthropy. “It’s an honor to recognize Patrick Hagler for his philanthropic work outside of the office,” October Research CEO and Publisher Erica Meyer said. “We were impressed at his dedication in helping the homeless, specifically the youth, in his community.” Erica Meyer  Currently, Hagler runs a non-profit called Loving Hands of Hope, which focuses on providing homeless teens and young adults with essential items such as clothing and hygiene kits. He is a long-time supporter of Lost and Found Youth Atlanta, an organization that facilitates counseling and other services for homeless young adults. He also volunteers with their 24-hour hotline that helps children find places to sleep and access to hot meals.

CONTACT:

Cathie Beck 303.241.0805 cathie@capitalcitypr.com alliantnational.com

Commercial Real Estate Borrowers Experiencing 'Perfect Storm' of Low Interest Rates

John Oharenko

Chicago, IL, Sept. 6, 2020 – Chicago-based Real Estate Capital Institute notes the stock market continues climbing, and realty mortgage spreads compressing based on record-low treasuries.  

The Fed also announced that rates would remain low, even under inflationary pressures.  As a result, borrowers enjoy the "perfect storm" of low-interest rates for the foreseeable future.

 Fixed-rate debt continues to gain the most attractive pricing, especially for five-year terms with low leverage (55% LTV or less).  

Pricing starts in the 2.5%-range, climbing about a quarter-point for ten-year debt, and another quarter-point for leverage levels up to 80%.  

These rates apply to stabilized multifamily assets controlled by proven sponsorship.  Otherwise, most other well-performing commercial properties achieve pricing closer to the 3% range based on a maximum leverage of 65% LTV.

 Floating-rate, mezzanine, and other debt designed for new-construction or stabilization programs are priced at 3% or more, mostly via banks.  

 Life companies offer very diverse pricing, dipping below 2.5% for prime assets, but mostly hover in the 3-3.5% range.

 In addition to overall realty capital market rates and trends, securitized lending returns to a more "normalized" state. 

 CMBS players underwrite new loans at 60% to 65% LTV with 10 years interest-only. 

For example:

·        Multifamily rates hover in the low three-percent range.  

·        Office, industrial, self-storage, and retail-property pricing starts at 3.25% and reaching about 3.5% for more challenging loans.  

·        Lodging remains problematic, as operators still work through COVID issues.

John Oharenko, director of the Real Estate Capital Institute, notes, "The Fed's declaration to keep rates low helps force spreads downward, as fierce competition exists for stabilized loan fundings."

Contact:

 John Oharenko 

john.oharenko@reci.com

Executive Director

director@reci.com / www.reci.com

Lee & Associates Northwest Continues Rapid Growth, Launching New Investment Division and Adding Four-Person Team

Stuart Williams

SEATTLE, WA –  Lee & Associates, the largest broker-owned commercial real estate firm in North America, announced the addition of four new brokerage agents to lead the firm’s Northwest investment division. 

The team will consist of Stuart Williams, Adrienne Hunter, Alex Muir, and Elizabeth Schalka, all formerly of both JLL and more recently of Kinzer Partners.

Williams, a well-known investment market expert, will lead the new Northwest investment division, which will focus on investment advisory services for both institutional and private capital clients, and provide the highest level of sophisticated customer service. 

Adrienne Hunter

“We are strategically focused on institutional and mid-market investment properties. Our tailored approach provides our customers with curated marketing and advisory services, addressing the unique objectives of individual investment groups,” said Williams.

“Legitimate and willing buyers are sizing up opportunities to invest in a market that promises to correct once the COVID-19 situation subsides.

"We intend to leverage our Lee & Associates team locally and across North America, as we help our clients assess their portfolios and determine the best path forward, including marketing their assets or purchasing properties both on and off-market.”

With the addition of Williams and his team of investment professionals, Lee & Associates Northwest continues its strategic growth initiative to extend into all commercial real estate sectors, including capital markets.

Alex Muir

The team will interface with Lee & Associates’ growing roster of talented professionals to better serve clients throughout the Puget Sound Region. 

“When we first opened our office in 2016, we knew that we wanted to focus on all aspects of the commercial real estate brokerage business, including and especially the commercial investment arena,” said Jim Bowles, President of the Lee & Associates Northwest office. 

The team has represented transactions totaling over six billion throughout their careers, and each brings unique perspectives and career histories to their roles.

Williams as a multi-year SIOR Broker of the Year, Hunter as a three-time NCAA rowing champion, Muir’s extensive work with diversity and inclusion, and Schalka’s upbringing in the PNW’s commercial real estate appraisal community. 

Elizabeth Schalka

CONTACT:

Jim Bowles
Lee & Associates
(206) 624-2424
jbowles@lee-associates.com