JLL Capital Markets Closes $56 Million, 177,57-SF Sale of The Offices at Pelican Bay in Naples, FL

The Offices at Pelican Bay
5801 and 5811 Pelican Bay
 Boulevard, Naples, FL

 

MIAMI, FL – JLL Capital Markets has closed the $55.5 million sale of The Offices at Pelican Bay, a two-building, Class A office portfolio totaling 177,557 square feet in Naples, Florida.

 

The sale marks the largest office transaction on Florida’s Southwest coast this year.

Hermen Rodriguez

JLL represented the seller, a joint venture between funds managed by Apollo Global Management, Miami-based SQUARE2 Capital and Steelbridge Capital.

 

The selling partnership purchased the property for $33.6 million in 2014. This marks the partnership’s second round trip in Naples in recent years and the second time JLL has worked with the partnership in a sale.

 

 The partnership bought the SunTrust Building across the street in 2014 for $17.5 million and sold it a year later through JLL for $25.5 million.

 

The Offices at Pelican Bay comprise two, six-story buildings that are leased to a diverse, stable tenant roster.

Chris Drew

Located at 5801 and 5811 Pelican Bay Blvd., the properties sit on nearly 10 acres at the intersection of Pelican Bay Boulevard and Tamiami Trail North within the coveted Pelican Bay community.

 

The properties are within close walking distance of the retail and dining options at Waterside Shops and Artis Naples Philharmonic Cultural Center and are surrounded by a thriving residential market and a variety of high-end and extended-stay hotel options.

 

Additionally, Naples is only one-hour from Fort Myers International Airport and under three hours from both Miami and Tampa.

 

The JLL Capital Markets team representing the seller was led by Senior Managing Directors Hermen Rodriguez and Chris Drew, Managing Director Ike Ojala and Director Matthew McCormack.

 Ike Ojala 

Patrick Fraley, CCIM of Investment Properties Corporation of Naples, procured the buyer.

 

“Florida’s business friendly and tax-friendly environment continues to attract new companies and investors to the market,” McCormack said.

 

“As a result, we are finding investor interest continues to grow for well-located office properties with value-add components such as The Offices at Pelican Bay.”

 

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

Matthew McCormack

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

 

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

 

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

About SQUARE2 Capital

SQUARE2 Capital is an investment management company based in Miami that invests and operates throughout Florida and the Southeast. 

Patrick Fraley

 SQUARE2 operates with the belief that real estate investing should be transformational, guiding the asset through a change in form and appearance, but also effectuating financial and operational improvements.

  By building on SQUARE2’s deep industry expertise and multi-cycle track record as a seasoned manager, owner and operator, the firm aggressively targets on and off market investments that allow it to implement strategies to create differentiated office experiences

 

CONTACT:

 

 Jenna Sharp

 JLL Associate

 Public Relations

Phone: +1 214 394 3356

Email:  Jenna.Sharp@am.jll.com

 

s2c.com.

steelbridge.com.

 jll.com.

 

NCLA Calls on Supreme Court to Reinvigorate Contracts Clause and Stop State Interference with Leases

 

Jared McClain

Washington, DC, Dec. 29, 2021 – The New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, filed a Supreme Court amicus brief today in Apartment Association of Los Angeles County, Inc. v. City of Los Angeles, et al. 

 NCLA finds disturbing the recent trend, epitomized by this case, of lower courts deferring to states and cities in their flimsy justifications for substantially impairing landlord-tenant contractual obligations.

The Supreme Court’s immediate intervention is required to rescue the Contracts Clause of the U.S. Constitution from oblivion and ensure that it serves its original purpose during the COVID-19 pandemic response and hereafter.

Philip Hamburger

Following the outbreak of COVID-19 in early 2020, the City of Los Angeles imposed an eviction moratorium and gave tenants up to a year after the emergency ends to repay their back rent interest-free.

 The national emergency caused by COVID-19 has led several states and cities to interfere with residential leases.

 But the Contracts Clause was specifically designed by the Framers of the Constitution to prohibit states from altering contractual obligations or preventing parties from enforcing their contractual rights—especially during emergencies.

U.S. Supreme Court, Washington, DC

The Supreme Court has historically struck down contractual interference unless the state law has certain limiting characteristics—which were absent here—to protect the parties’ vested interests.

 During the pandemic, very few courts have applied the Contracts Clause as if it imposes any restraint on state or local laws.

 In fact, many courts treat the Contracts Clause as a dead letter, leaving the enforceability of contracts to the vagaries of state law.

 Over the years, the Supreme Court has identified several factors that tend to show when an impairment would upset the contracting parties’ legitimate expectations.

 

Although many lower courts have ignored these indicators, the trial court below rightly recognized that Los Angeles’s new rule substantially impaired residential leases in the city. The Ninth Circuit erred on appeal by skipping this analytical step altogether.  

 Courts like the Ninth Circuit have upheld state laws that substantially impair contractual obligations because they claim they are bound to defer to a state’s opinion as to what counts as substantial.

 Faced with legal challenges to states’ emergency responses, many courts have misapplied Supreme Court precedent and declared that courts “must accord substantial deference to the State’s conclusion that its approach reasonably promotes the public purposes for which it was enacted.”

 

 But deferring in this manner to a state’s self-interested decision to impair a contract renders the protections of the Contracts Clause meaningless.

 L.A. unfairly rewrote residential leases and forced housing providers to shoulder their tenants’ costs, as well as the entire risk of default.

 The Ninth Circuit’s deference to that decision effectively wrote the Contracts Clause out of the Constitution.

 This Court should grant the petition and reverse the Ninth Circuit’s dangerous decision.

 

Ninth Circuit Court of Appeals, San Francisco, CA

NCLA released the following statement:

 “Throughout NCLA’s pandemic litigation, we’ve seen multiple courts be all too willing to defer to states’ decisions to rewrite private contracts, despite what the Contracts Clause says," according to Jared McClain, Litigation Counsel, NCLA

  "These lower courts think they’re taking their cues from the Supreme Court. Unless and until the Supreme Court steps in to clarify its precedent, the Contracts Clause won’t provide any constitutional protection against state interference with residential leases and other contracts in most of the country.”

Judy Pino

 

 ABOUT NCLA

 NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional freedoms from violations by the Administrative State.

 NCLA’s public-interest litigation and other pro bono advocacy strive to tame the unlawful power of state and federal agencies and to foster a new civil liberties movement that will help restore Americans’ fundamental rights.

 

CONTACT:

 

Judy Pino

202-869-5218

Prominent UCCU Financial Center sells in Lehi, UT

 

UCCU Financial Center, 333 North  Digital Drive, Lehi, UT

LEHI, UT, Dec. 29, 2021 – Office experts within the Utah office of JLL have completed the sale of 333 N. Digital Drive in Lehi, Utah.

 

 Known as the UCCU Financial Center, the Class A, 7-story office building sits at a highly prominent location, fronting Interstate 15 and in the heart of the “Silicon Slopes” in north Lehi.

David Nixon

 

JLL Executive Vice President David Nixon represented the new building owner, Yama Point LLC, in the acquisition.

 

The building seller, Utah Community Credit Union (UCCU), was represented by Josh Martin of Colliers International.

 

“This is a landmark Lehi office asset with a tremendous location, quality of space and freeway-fronting branding opportunities – all advantages that support the long-term value of the property,” said Lowell Crabb, Managing Partner of Yama Point and Founding Principal of Drive Wealth Advisers, which will occupy the entire top floor of the building.

 

 “Assets with this level of visibility and recognition only become available so often. We are fortunate to have this opportunity as a building owner and tenant.”

 Lowell Crabb

Being rebranded as Drive Tower, the building is located at the junction of Interstate 15 and State Route 92/Timpanogos Highway.

 

 It totals 74,257 square feet and seven stories with Class A interiors, a distinct full-glass exterior, full-length office windows providing mountain and valley views, a shared gym and underground parking with stalls to accommodate electric vehicles.

 

 The building is walkable to regional shopping, dining and business service amenities.

Lehi-based Drive Wealth Advisers, which provides custom financial planning for founders, executives and high-net-worth families, will occupy 10,755 square feet on the building’s top floor.

 

“This asset is unique not only for its investment merits but for the brand awareness and alignment it provides to its owners and occupants,” said Nixon.

 Josh Martin

“That positions it well in a market where absorption has shifted back into positive figures and quarter-over-quarter Lehi office leasing activity during the third quarter reached pre-pandemic levels.”

 

In addition to Drive Wealth, Drive Tower is fully leased to multiple credit tenants in the real estate, solar and medical industries.

In addition to the rebranding, the building’s new ownership is planning key, ongoing upgrades such as interior design improvements and facility improvements to key elements, such as upgraded parking and electric vehicle amenities.

CONTACT:

 

Stacey Hershauer

Phone: +1480 600 0195                

Email: stacey@focusaz.com

www.jll.com.

JLL Capital Markets arranges $120 million loan for the award-winning Infinity Park in a highly sought-after Central Florida market

  

 Melissa Rose

ORLANDO, FL, Dec. 28, 2021 – JLL Capital Markets has arranged a $120 million refinancing on behalf of McCraney Property Company and partner Tavistock Development Company for the award-winning Infinity Park, a newly constructed, nine-building, Class A logistics park totaling 1.3 million square feet in Orlando, Florida. 

     Infinity Park, 2500 Consulate Drive, Orlando, FL

JLL worked on behalf of the borrower, McCraney Property Company and Tavistock Development Company, to place the 10-year, fixed-rate loan with Lincoln Financial Group.

 “The development team set the tone for success in this project,” said McCraney Property Company CEO and President Steven E. McCraney.

Steven E. McCraney

 

 “It was the right location in the right market that produced this phenomenal list of tenants that joined us at the park.”

 

Constructed in phases between 2019 and 2021, NAIOP named Infinity Park the Central Florida Industrial Development of the Year in 2019 for its meticulous design and highly functional layouts.

The 92 percent-leased industrial park is home to 17 tenants and features a premium credit profile with major tenants such as Pepsi (Moody’s: A1).

Maxx Carney

Infinity Park is located 2500, 2505, 2559, 2583, 2598, 2612, 2613, 2619 and 2622 Consulate Dr. in one of the best logistics locations in Central Florida.

 

Due to its unparalleled multi-expressway access where the Beachline Expressway (SR-528) intersects with the Florida Turnpike and John Young Parkway, tenants can reach more than 20 million residents – or 95 percent of the population of Florida – within a four-hour drive and nearly 3.7 million customers within a one-hour drive.

 

As one of the fastest-growing metro areas in the country, Orlando’s population is booming and is anticipated to continue to outpace state and national averages over the next five years.

Reid Carleton

JLL Research’s recently released Orlando Industrial Insight report for the third quarter details how new deliveries cannot keep up with the demand, leading vacancy to dip to 3.1 percent.

 

The JLL Capital Markets Debt Placement team representing the borrower was led by Managing Director Melissa Rose, Director Maxx Carney, Associate Reid Carleton and Analyst Maddy McMillen.

 

“It was a privilege to work on behalf of McCraney Property Company and Tavistock to secure optimal financing terms for one of Florida’s most noteworthy industrial assets,” Rose said.

“The sponsorship, location and tenant mix of the asset are second to none, resulting in a highly competitive process with a wide array of capital sources that were eager to provide financing.” 

Maddy McMillen

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 sales and advisory, debt advisory, equity advisory or a recapitalization. 

The firm has more than 3,000 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

PR, Capital Markets,

Agency Leasing and Valuation Advisory 

JLL

T +1 713 852 3420

M +1 832 244 9994

JLL.com

 

Westport Properties Sells Multifamily Community in Glendale, AZ for $30 Million

 

 Park 67 apartments, Glendale, AZ

PHOENIX, AZ -- Westport Properties, a premier owner/operator of self storage and multifamily properties nationally, has sold Park 67, a 160-unit multifamily community in Glendale, Arizona under the entity Vertex Glendale, LLC to an undisclosed buyer for $30.4 million. 

Westport Properties acquired the property for $14.7 million in January 2020.

 David Grissom

Located at 6112 N 67th Avenue, Park 67 features one- and two-bedroom units ranging in size from 655 to 855 square feet with rents ranging from $850 to $1,175. 

 The community features covered parking, covered ramadas, air conditioning, spacious closets, pool, barbeque area, window coverings and laundry facilities.

“We were able to acquire Park 67 at a great price, a 6.5cap rate due to the loan assumption,” David Grissom, Managing Partner, Westport Residential, LLC, an affiliate of Westport Properties. 

Jesse Hudson

“Our team was able to grow rents by renovating the property and making it a more desirable place to live.  

"The residential market in the Phoenix area has been very strong this year which also enhanced our ability toincrease the property’s value.”

Jesse Hudson, Trevor Koskovich, Bill Hahn and Ryan Boyle from NorthMarq Phoenix represented Westport Properties and the buyer in the transaction.

“Park 67 is an excellent example of the rent growth opportunity in the Glendale market,” says Hudson.

Trevor Koskovich

“The Phoenix multifamily market continues to move at a substantial pace. Park 67 marks our team’s seventh multifamily sale this month, with three additional transactions scheduled to close before year end.” 

About Westport Properties

Founded in 1985, Westport Properties (“WPI”) is an owner-operator of self storage, multifamily and industrial properties across the United States.

The Company is a fully integrated operator that develops, acquires and manages its portfolio as well as providing third-party management services.

As of December 2021, it has under management 161 self storage assets in 16 states with a total of 105,603 units and 11,675,655 net rentable square feet of self storage space with its US Storage Centers brand and 669 multifamily units, employing approximately 400 people nationwide.

Bill Hahn 

WPI is a founding partner of the 501(c)3 Kure-It, a non-profit organization that raises money for underfunded cancer research, and Charity Storage, a 501(c)3 that uses vacant storage units to raise money for local charities.

 To date, Kure-It has raised over $10M and Charity Storage has raised over $500K.

 

About Northmarq

As a capital markets leader, Northmarq offers commercial real estate investors access to experts in debt, equity, investment sales and loan servicing to protect and add value to their assets.

Ryan Boyle

For capital sources, we offer partnership and financial acumen that support long and short-term investment goals.

Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $30 billion, loan servicing portfolio of more than $70 billion and the multi-year tenure of our more than 700 people.

 

 

 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.”