2023 may be a year of tremendous opportunities, notes The Real Estate Capital Institute®

 

John Oharenko 

 CHICAGO, IL  – The Real Estate Capital Institute® notes last year shocked the real estate capital markets based on unforeseen global events.  

 As the Covid pandemic subsided, the unprovoked Russian invasion of Ukraine created chaos in worldwide energy and food markets.

  As a result, inflation reached generational highs, forcing the Fed to more than double interest rates. 

The new year brings more uncertainty.  Recessionary conditions dampen investors' appetites for aggressively buying commercial real estate assets. 

 

 For the most part, too wide of a gap exists between buyers' and sellers' expectations, as debt pricing uncertainly limits demand for new acquisitions. 

 

 Yet despite this uncertain outlook, 2023 may be a year of tremendous opportunities, including:

 Manufacturing Miracles:  Too much reliance on overseas products, control over sensitive technologies,  and erratic supply chain issues helped spark the revival of domestic manufacturing.  Today’s automated assembly processes rely more on a local skilled workforce vs. lower-cost foreign labor – partially negating the cost savings of non-American production.  Expect more industrial and manufacturing facilities to be built in the foreseeable future and strong investor demand for this asset class.

 

Bed Buys:  Apartments, student housing, selective lodging, and other properties with beds remain financial strongholds.  Post-pandemic travel demand, supply shortages of affordable housing, and costly mortgages help boost prospects for these sectors’ continued strong financial performance.

 Retail Revival:  Even as e-commerce enjoys tremendous success, more shoppers return to the malls for recreational and fashion merchandise.  Furthermore, necessary visits for food and personal care services offered by neighborhood centers remain vital, especially in densely populated areas.  Lastly, outdated retail centers remain strong targets for repurposing into alternative uses, including healthcare, residential redevelopment, and surplus parking. 

 

Calmer Capital Markets:   The narrowing yield curve inversion and other key financial market indicators indicate recessionary conditions are easing.  Despite higher short-term borrowing rates, long-term investors seem to be betting on tamed inflation, as the Fed's actions demonstrate a strong resolve to control inflationary pressures.   Thus, mortgage rates should stay controlled, helping realty investors and stabilizing the housing market.

White Swan:  Just as unforeseen "black swan" events create negative unpredictable capital market conditions (e.g., COVID), some predictable "white swan" events may create positive conditions to bolster real estate investing (e.g., an early end to the war in Ukraine makes lower interest rates). 

 

The Real Estate Capital Institute's® director, John Oharenko, predicts, "While many investors worry about Fed actions and domestic/global issues influencing realty transactions, astute players seek mispriced assets based on expecting more favorable conditions for 2023."

 

# # #

The Real Estate Capital Institute® is a volunteer-based research organization that tracks realty rates data for debt and equity yields.  The Institute posts daily and historical benchmark rates, including treasuries, bank prime, and LIBOR.  

 

^CONTACT:

John Oharenko 

Executive Director

john.oharenko@reci.com

director@reci.com / www.reci.com

^The   Real Estate Capital Institute^®

Chicago, IL USA 60622

 

Seefried Properties and USAA Real Estate Acquire 19 Acres for Planned 335,157-SF Logistics Center in Northern California

Jason Quintel 

 Tracy, CA– Seefried Properties, a national real estate firm specializing in the development of industrial properties, along with capital partner and real estate investment manager, USAA Real Estate, have recently acquired a 19-acre site for the development of a new distribution warehouse in the heart of Tracy’s Northeast Industrial submarket. 

 The project is scheduled to break ground in the fourth quarter of 2023 and will include a state-of-the-art speculative building totaling 335,157 square feet of office and warehouse space.

 

“The opportunity to acquire one of the last remaining sites in the east Tracy submarket was too good to pass up,” said Jason Quintel, Senior Vice President of Seefried’s Western Region. 

Mike Goldstein

 “With historically low vacancy and high tenant demand for the area, we believe this project will be in a great position to capture that demand and bring another quality business and project to the City of Tracy.”

 

The proposed project is strategically located at the northwest corner of Grant Line Road and Chrisman Road, offering easy access to all major transportation arterials including I-205, I-5, I-580 and HWY 99. 

 

 The industrial site offers close proximity to both the Union Pacific and Burlington Northern Santa Fe Intermodal facilities and is ±54 miles east of the Port of Oakland and ±65 miles south of Sacramento. 

 

John Steinbuch

Located along ideal transportation corridors to the Western US & Bay Area, Tracy is considered the best distribution location in the Central Valley.

 

As a nationally recognized developer of industrial space, Seefried plans to include Class A industry leading specifications on the new project including ample auto and trailer parking, 36-foot clear heights, ESFR sprinklers, and LED warehouse and site lighting to meet the needs of modern industrial users.

 

The Colliers team of Mike Goldstein and John Steinbuch represented the partners in the land transaction and will handle leasing efforts on behalf of the project. 

 

HPA Architecture is serving as the project’s architect of record; Kier & Wright is the civil engineer.

 

 

Contact: 

 

 Barbara Bennett

Phone:  +1 520 661 9641

Email:  bbennett@seefriedproperties.com

www.seefriedproperties.com

 

www.usrealco.com

 

Edge Realty Partners promotes two officers on its Capital Markets Team

 

Mart Martindale 

DALLAS, TX –– Edge Realty Partners  has promoted Mart Martindale to Managing Principal of Capital Markets and Bill Pyle to Principal of Capital Markets.

 

Martindale will oversee the firm’s Capital Markets team and will be responsible for the growth and development of the business and the team. 

Bill Pyle

He will also continue serving clients as an investment advisor, working on the underwriting, acquisition, disposition and financing of commercial and multifamily assets throughout Texas and surrounding states.

 

Martindale co-founded Edge Capital Markets in 2012 and, with more than 22 years of commercial real estate experience he has completed transactions valued at more than $2 Billion.

 

Pyle was formerly a Senior Vice President on the Edge Capital Markets team. In his new role he will continue to represent owners and developers in the acquisition and disposition of commercial land and investment properties across the country.

 

 A 17-year commercial real estate veteran, he has completed transactions valued at more than $500 Million throughout his career.

 

 Brian Murphy

“Mart is a natural for the role of developing and growing the Capital Markets team,” said Brian Murphy, Edge Realty Partners’ Managing Principal. 

 

Murphy continued by saying “Bill epitomizes the Edge culture, working expertly and collaboratively with our brokers across all segments, including our tenant rep, landlord services, specialty and development teams.”

 

Contact: 

 

 David Ebeling

Ebeling Communications

949.861.8351

949.278.7851 (Cell)

david@ebelingcomm.com

Member of the National Association of Real Estate Editors (NAREE)

“PR Strategist for the Commercial Real Estate Industry:  I do what I love and love what I do.”

 

 

 

KAI Hires Andrew Kerr-Grant as Senior Project Architect

Andrew Kerr-Grant

 St. Louis, MO, Jan. 4, 2023 -- KAI is pleased to share the hiring of Andrew Kerr-Grant, AIA, NCARB, LEED AP BD+C as its newest Senior Project Architect at its St. Louis office.

 Kerr-Grant boasts more than 30 years of experience as a Senior Project Architect and Project Manager.

 

“Andrew joining KAI has been another amazing boost to our talented KAI Design team of architecture and interiors professionals,” said KAI Managing Partner Brad Simmons, FAIA.

 

“His extensive experience as a knowledgeable and proven senior architect and project manager brings our clients and design teams a steady presence to guide and deliver outstanding projects.

Brad Simmons

"Andrew’s industry capabilities span a wide range of clients, project types and geographies. His flexibility and collaborative nature have already been a perfect fit at KAI.”

 

Prior to KAI, Kerr-Grant was a Senior Architect/Project Manager for St. Louis-based Etegra, Inc.; a Senior Project Architect for Core States Group; and a Senior Project Architect/Project Manager/Architectural Group Manager for Benham, A Haskell Company.

 

Originally from Australia, he earned his Bachelor of Architecture from the University of Melbourne. He also has continuing education from both St. Louis Community College and Harvard Graduate School of Design. He is a Registered Architect in Missouri, Illinois, Minnesota, and the District of Columbia.

 

 

Contact:  

 

Jennifer Beidle
Jennifer Beidle Communications
St. Louis, MO 63129
United States

 

www.kai-db.com.

 

 

Island Hospitality Management Promotes Susanne LoFaso to Regional Director of Operations

 

Susanne LoFaso

WEST PALM BEACH, FL, Jan. 4, 2023 — Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale, extended-stay hotels in the United States, announced today that Susanne LoFaso has been promoted to regional director of operations.

  In her new role, LoFaso will oversee the company’s Hilton- and Marriott-branded hotels throughout the New York and Illinois regions, as well as providing acquisition support.

 

John Marques

“Since joining us in 2018 as general manager of the Ronkonkoma Homewood Suites by Hilton, Susanne has delivered superior guest satisfaction scores and improved bottom lines,” said John Marques, executive vice president, Island Hospitality Management. 

 “She quickly was promoted to area general manager over Island’s Ronkonkoma Homewood and Courtyard hotels and has continued to demonstrate her leadership by assisting in task force assignments, special projects and onboarding new leaders through our GM Ambassador program.  

 "We know Susanne will continue her upward trajectory with Island and look forward to her continued success.”

 Contact:  

 

Chris Daly

President

DG Public Relations

(703) 864-5553

chris@dalygray.com

www.dalygray.com

 

www.islandhospitality.com.

 

Native Realty Expands Team with Associate Donald VanBeach and Senior Property Manager Caren Davila

Caren Davila

FORT LAUDERDALE, FL, Jan. 3, 2023 –Native Realty, the industry disruptor and neighborhood placemaker led by CEO Jaime Sturgis, capped off a strong 2022 with the addition of experienced commercial real estate professional Donald VanBeach as a new Associate and Caren Davila as Senior Property Manager.

  VanBeach and Davila joined numerous talented and passionate brokers and property enthusiasts in becoming members of the Native family over the past year.

 

VanBeach has a diversified real estate background, with significant leasing, neighborhood curation and portfolio management experience. He previously served as Regional Property Director at the Altman Companies and Operations Analyst at Highmark Residential.

Donald VanBeach

At Native, VanBeach applies his local knowledge and passion for helping leasing and investment sales clients achieve their goals. He is a graduate of Florida State University with a bachelor’s degree in Psychology.

 

Davila is responsible for the management of a variety of commercial properties in South Florida, overseeing everything from maintenance to accounting and relationship management.

 

Native Management utilizes proprietary technology to provide a one-stop digital platform accessible to owners and tenants 24 hours a day.

Jaime Sturgis

“Donald and Caren are fantastic new members of the Native family,” Sturgis said. 

“We have successfully bolstered our team of dynamic brokers and property managers this year and are strategically targeting the right professionals to further grow in 2023.

 

"We are creative dealmakers who work hard, love what we do and care deeply about the neighborhoods we spend time in,”

 

Native now operates from a new Fort Lauderdale office that is double the size of its previous headquarters. The 4,000-square-foot office is located at 1926 E. Sunrise Blvd. in the city’s Victoria Park neighborhood.

 

Contact:

Eric Kalis

Vice President,

BoardroomPR

ekalis@boardroompr.com

O 954-370-8999 

C 305-794-5123

Bank of America Plaza

 1776 N Pine Island Road

Suite 320 | Fort Lauderdale, FL 33322

Web | Facebook | LinkedIn | Twitter | Instagram

www.nativerealty.com.

 

PEBB Enterprises Adds Bradley Burgeson as Financial Analyst in Boca Raton, FL office

 

Bradley Burgeson

BOCA RATON, FL,  Jan. 3, 2023 – PEBB Enterprises, the South Florida-based full-service private real estate investment company, expanded its growing team with the addition of new Financial Analyst Bradley Burgeson.

The real estate finance professional specializes in analysis, modeling and underwriting commercial real estate transactions.

Burgeson previously worked as a Financial Analyst with Marcus & Millichap before being elevated to Transaction & Marketing Coordinator.

His responsibilities included market data analysis, underwriting acquisitions, managing buyer and seller relationships and buildout of marketing materials and strategies for transactions.

 Ian Weiner

“Brad’s educational background in commercial real estate analytics and transactions makes him a valuable asset for us,” said Ian Weiner, PEBB Enterprises President and CEO.

“He brings a unique thought process to our team that should make an immediate impact. We are happy to welcome him to the PEBB family.”

Burgeson earned a bachelor’s degree in Econometrics and Quantitative Economics from the University of South Florida and a master’s degree in Real Estate Development from Nova Southeastern University.

  

Contacts:

Eric Kalis/Daniel Benjamin

954-370-8999

ekalis@boardroompr.com

dbenjamin@boardroompr.com

 

 

Trion Properties sells 95-unit multifamily community in Oregon's Greater Portland area for $19.35 milion

Max Sharkansky

 TUALATIN, OR – Trion Properties, a multifamily investment sponsor and private equity real estate firm based in West Hollywood, California and Miami, Florida, announces the sale of Fox Meadows, a 95-unit multifamily community located in the Portland submarket of Tualatin, Oregon, for $19.35 million.

 The property was sold to FPA Multifamily at a return rate of 36.98%, producing a 1.80 equity multiple, after only a two-year hold, according to Max Sharkansky, managing partner of Trion Properties.

 “We identified an opportunity to purchase the property in the brief multifamily downturn during the pandemic, when it was underwritten fairly conservatively, and capitalized on the right moment to sell when the market is recovering and there are few assets of this type on the sale block,” Sharkansky said.

 Trion has owned and managed 22 properties in the Greater Portland area since 2015 and presently owns 13 assets in this region. With job growth in the metro at 5.3% during Q3 2022, outpacing the national figure of 3.8%, the market is on an upward trajectory that bodes well for the multifamily sector in the foreseeable future, notes Sharkansky.

 Built in 1968, Fox Meadows comprises two adjacent properties that Trion combined and managed as one property upon acquisition in 2020.

 

SOLD: Fox Meadows, a 95-unit multifamily
 community located in the Portland
 submarket of Tualatin, OR

Located less than a mile from Downtown Tualatin, Tualatin WES Metro Station, Tualatin Community Park, and Nyberg Rivers Shopping Center, the community is conveniently situated in a highly regarded school district, close to transportation, employment centers, state-of-the-art medical facilities, and daily-needs retail.

 “Fox Meadows is situated in an exceptional location in Tualatin, an affluent submarket where homeownership has become increasingly less affordable and the decline of housing affordability is more extreme than in Washington County overall,” says Farhan Mahmood, Partner and Head of West Coast Acquisitions at Trion Properties.

Farhan Mahmood

 “Along with its strong cash flow, these features made the property extremely attractive to us initially and positions the buyer for ongoing strong returns.”

 

Tyler Linn

Tyler Linn, Jordan Carter, and Clay Newton of Kidder Mathews represented both Trion and the buyer in the sales transaction.

Fox Meadows is located at 19605 SW Boones Ferry Road, Tualatin, Oregon.

 

Contacts:

 

Hanna Kokuashvili / Elisabeth Manville

The Smart Agency

(949) 438-6262

hkokuashvili@thesmartagency.com