The Fountains of San Antonio multifamily complex has been acquired by Metonic Real Estate Services, an Omaha-based private investment management company. This is not the first property the investors purchased in Texas, the metro area of the city seeming really attractive to them. In February of this year, they became the owners of Sierra Ridge, a 230-unit apartment community located at 1401 Patricia Drive in North Central San Antonio. 

“We are looking to expand our footprint in Texas,” said Brian Morrissey, managing principal of the firm. “The San Antonio market boasts excellent fundamentals and has yielded exceptional opportunities for our investors.”

The Fountains of San Antonio community was built in 1978. It holds 101 apartment units that encompass 103,190 square feet of buildings and grounds. Located at 8630 Fairhaven St. in Northwest San Antonio, it sits in close proximity to the Medical Center of San Antonio, with easy access to Interstate 10 and Loop 410. The occupancy of the apartment community is currently at 98 percent. The new owner intends to upgrade the exterior and interior of the property to attract new residents for the unoccupied percentage and increase retention among the current tenants.

Another Omaha-based firm, Seldin Co., assumed the management responsibilities at closing. Seldin specializes in property management, brokerage and development services and has been in the market since 1923. Currently, it manages more than 11,000 apartment units in Nebraska, Iowa, Oklahoma, South Dakota and Texas.

Metonic Real Estate Services has been in the market for almost a century, with a focus on discovering and creating value. Its strategy targets multifamily communities, office and retail properties, offering the full array of real estate services.

Photo credits: www.thefountains.seldin.com

The Hanover Co. has acquired a three-acre parcel in the Centerpoint on Mill, where it plans to build high-end housing in the Downtown Tempe development.

The deal includes $7 million for the land, and another $4.47 million that the Houston-based company will use to build a parking structure to replace the 271 public spaces on the site, according to Cassidy Turley.
Brent Moser, Mike Sutton and Brooks Griffith with Cassidy Turley Arizona’s Land Group represented the seller, DMB.

Hanover plans to break ground later this year on a six-story, 341-unit luxury apartment community; the opening is scheduled for 21 months later. In addition to the apartments, the development will include a nine-level parking structure.

Wallace Garcia Wilson Architects, Inc. of Houston is the project architect and Hanover will serve as general contractor.

In other suburban transaction news, Griffin Capital Essential Asset REIT, Inc. has purchased a 231,400-square-foot, Class A, flex R&D facility located in Chandler for approximately $32.5 million. The REIT’s sponsor, Los Angeles-based Griffin Capital Corp., manages a $1 billion, 13-state portfolio comprising more than 8.5 million square feet.

The Chandler property (at right) is fully leased to Phoenix-based Avnet, Inc., a global distributor of electronic components and customized technology solutions. Avnet has occupied the building since its construction as a build-to-suit property in 2008.

The seller, a group of 21 tenant-in-common investors, was represented by Team Toci of Cushman & Wakefield Inc.

by Adriana Pop, Associate Editor

In a $13.2 million deal, Albany Road Real Estate Partners of Boston has purchased the four-story, 117,000-square-foot Gateway Center in Downtown Providence. According to the Providence Journal,the transaction closed on May 23. Bank Rhode Island financed the acquisition with a $10-million, 10-year loan.

Located at 15 Park Row West, the building is 86 percent leased, Albany Road partner Christopher J. Knisely told the newspaper. TIAA-CREF, Admirals Bank, software firm Andera, Precision Design, and the Big East athletic conference are among the property’s tenants.

The facility was developed by Gateway Eight in 1989. Construction was financed through $23 million in state bonds, which the state retirement system acquired. In 2004, the building’s developer went bankrupt and the pension fund took control of the property.

In 2006, a Connecticut developer acquired the building. Most recently, in 2009, U.S. Bank purchased the property at a foreclosure auction for $13 million.

Earlier this year, Albany Road acquired a four-story office building in Warwick’s MetroCenter office park for $13.6 million.

In regional news, the Providence Business News reports that Johnson & Wales University has sold its 86-room inn in Seekonk, Mass. for $1.65 million. The Sarchi Group acquired the property, which it has renamed the Hilltop Hotel & Conference Center.

“As the university’s first hotel internship property, the inn, purchased in the early 1980s, has played a significant role in JWU’s history and has been an important venue to the local community,” Michael Downing, the university’s vice president of auxiliary services, said in a statement.

As a condition of the sale, the Sarchi Group will honor all contracts, including pricing, for events scheduled at the Inn. The company owns and manages retail, mixed-use and apartment buildings as well as motels and hotels in Massachusetts and Connecticut.

]]> http://www.cpexecutive.com/property-types/office/boston-investor-acquires-gateway-center-in-downtown-providence-for-13-2m/feed/ 0 http://www.cpexecutive.com/property-types/office/1-2-msf-office-complex-sold-in-metairie/ http://www.cpexecutive.com/property-types/office/1-2-msf-office-complex-sold-in-metairie/#comments Mon, 17 Jun 2013 14:13:38 +0000 elizat http://synd.yardi.com/?p=139136 By Eliza Theiss, Associate Editor

One of Louisiana’s biggest office complexes has just sold. The three-tower Lakeway Center in Metairie was purchased by New York-based The Feil Organization for an undisclosed amount.  Holliday Fenoglio Fowler marketed the property on behalf of Equity Office Properties.

Located at 3900 North Causeway Blvd., the 1.2 million-square-foot office complex sits at the foot of Lake Pontchartrain, within easy access to downtown New Orleans, the New Orleans International Airport, as well as the affluent Metairie and Northshore residential areas. The Class A office complex comprises three towers, all of which are among the 10 tallest buildings in Jefferson Parish. One Lakeway Center is 14 stories and 193 feet tall and was completed in 1982. It is the sixth-tallest structure in Jefferson Parish, while Two Lakeway Center, at 259 feet and 19 levels, is the third highest. Three Lakeway, at 34 floors and 403 feet high is the tallest structure in Jefferson Parish and the 13^th highest in the Greater New Orleans area.

Lakeway Center currently boasts a 90.5 percent occupancy, rate with a tenant roster that includes names such as People’s Health Network, Fresenius Medical Care, EDG Inc. and the Drug Enforcement Administration. Some value-add renovation could soon be undertaken at the office complex, as Jeffrey Feil, the new owner’s CEO, declared in a press release: “We plan to continue to maintain and upgrade Lakeway Center to ensure it remains a top-tier office destination,” adding “This transaction builds on our nearly 40-year track record of investment and job creation in the greater New Orleans community.” Forbes has named that community the third best U.S. city for job growth in the information, publishing, software, entertainment and data processing industries.

Three Lakeway Center also includes a hotel component, not part of the purchase.

The Feil Organization, an investment, development and management firm based in New York City, owns, develops and manages more than 26 million square feet of retail, commercial and industrial properties, as well as in excess of 5,000 residential units throughout the United States. The company also has several hundred net-leased assets in its portfolio, as well as thousands of acres of undeveloped land.

Its holdings in the greater New Orleans area include four office properties in the same area as the Lakeway Center–namely, 3445 North Causeway Blvd. and Causeway Plazas I, II and III–as well as other Metairie properties, such as the Metairie Towers and The Galleria, and the Oakwood Corporate Center in Gretna. The Feil Organization also owns the Lakeside Shopping Center in Metairie, located just a mile from Lakeway Center, as well as the Carrollton Avenue site in New Orleans where the city’s first Costco is currently under development. (Click here to read more about the New Orleans Costco’s road to development.)

Image courtesy of Equity Office Properties.

One of Louisiana’s biggest office complexes has just sold. The three-tower Lakeway Center in Metairie was purchased by New York-based The Feil Organization for an undisclosed amount.  Holliday Fenoglio Fowler marketed the property on behalf of Equity Office Properties.

Located at 3900 North Causeway Blvd., the 1.2 million-square-foot office complex sits at the foot of Lake Pontchartrain, within easy access to downtown New Orleans, the New Orleans International Airport, as well as the affluent Metairie and Northshore residential areas. The Class A office complex comprises three towers, all of which are among the 10 tallest buildings in Jefferson Parish. One Lakeway Center is 14 stories and 193 feet tall and was completed in 1982. It is the sixth-tallest structure in Jefferson Parish, while Two Lakeway Center, at 259 feet and 19 levels, is the third highest. Three Lakeway, at 34 floors and 403 feet high is the tallest structure in Jefferson Parish and the 13^th highest in the Greater New Orleans area.

Lakeway Center currently boasts a 90.5 percent occupancy, rate with a tenant roster that includes names such as People’s Health Network, Fresenius Medical Care, EDG Inc. and the Drug Enforcement Administration. Some value-add renovation could soon be undertaken at the office complex, as Jeffrey Feil, the new owner’s CEO, declared in a press release: “We plan to continue to maintain and upgrade Lakeway Center to ensure it remains a top-tier office destination,” adding “This transaction builds on our nearly 40-year track record of investment and job creation in the greater New Orleans community.” Forbes has named that community the third best U.S. city for job growth in the information, publishing, software, entertainment and data processing industries.

Three Lakeway Center also includes a hotel component, not part of the purchase.

The Feil Organization, an investment, development and management firm based in New York City, owns, develops and manages more than 26 million square feet of retail, commercial and industrial properties, as well as in excess of 5,000 residential units throughout the United States. The company also has several hundred net-leased assets in its portfolio, as well as thousands of acres of undeveloped land.

Its holdings in the greater New Orleans area include four office properties in the same area as the Lakeway Center–namely, 3445 North Causeway Blvd. and Causeway Plazas I, II and III–as well as other Metairie properties, such as the Metairie Towers and The Galleria, and the Oakwood Corporate Center in Gretna. The Feil Organization also owns the Lakeside Shopping Center in Metairie, located just a mile from Lakeway Center, as well as the Carrollton Avenue site in New Orleans where the city’s first Costco is currently under development. (Click here to read more about the New Orleans Costco’s road to development.)

Image courtesy of Equity Office Properties.

By Adriana Pop, Associate Editor

Kamehameha Schools is planning to invest $30 million to redevelop a Kakaako site into a retail and restaurant village. According to the Pacific Business News, the mixed-use project will be presented to the Hawaii Community Development Authority on July 3.

The plan, called Salt in recognition of the neighborhood’s salt ponds of the mid-1800s, calls for approximately 80,000 square feet of specialty retail.

The developer proposes the adaptive reuse of all existing buildings along Auahi Street, between Keawe and Coral streets, as well as the addition of 20,000 square feet of open space, including a plaza, landscaping, paved walkways and seating.

If approved, the new development will be located behind Six Eighty Ala Moana, Kamehameha’s 54 loft-style rental unit development.

The Salt project is part of the developer’s 15-year master plan in Kakaako, which could bring a total of 2,750 residential units, including street-level urban townhomes, work-live units and high-rise condominiums.

Kamehameha Schools spokesman Kekoa Paulson told the newspaper there are currently 26 tenants on the block, many of them local, boutique retailers who have expressed an interest in remaining on-site.

“To the extent they wish to remain and become part of the restaurant/retail village, we want to accommodate them,” Paulson said in an email sent to the Pacific Business News. “For tenants whose use is not suited for Salt, we will work with them to find alternate locations either in Kakaako or elsewhere, on other KS property.”

INK Architecture is the project’s architect, in partnership with Pompei AD. A decision from the HCDA is expected on Aug. 7.

Photo credit: www.pompeiad.com

Trammell Crow Co. and joint venture partner USAA Real Estate Co. plan to break ground on a $160 million build-to-suit office project in Fort Worth’s Alliance Park.

To be constructed on a 45-acre tract at the northwest corner of Heritage Parkway and Interstate 35W, the six-story Class A facility will serve as the new Southwest region headquarters of the Federal Aviation Administration, as part of a 20-year lease agreement.

“The Trammell Crow and USAA Real Estate Co. team appreciates the opportunity to collaborate with GSA, FAA and the city of Fort Worth to give rise to a vibrant office environment that celebrates the long and compelling history of the FAA, energizes this section of the city of Fort Worth and the I-35W corridor, and of which we can all be proud for decades to come,” said Tom Finan, a managing director of Trammell Crow Co.  in Washington, D.C., in a statement.

Designed by Gensler, the project includes 357,214 square feet of office and support space, which meets both the government’s security and energy-efficiency requirements.

Construction is expected to begin in September 2013, with a completion date set for October 2015. Manhattan Construction Co. will serve as general contractor.

The General Services Administration, which bids out the FAA’s development work, was represented by Nancy Lopez of GSA and Kelly Winn of Studley, according to the Dallas Business Journal.

In other news, the Dallas Business Journal reports that Houston-based Grocers Supply Co. plans to build a $50 million regional distribution hub near Cleveland and Blanco roads in South Dallas.

The company is seeking a 90 percent tax abatement on real property for 10 years, as well as a $1.85 million economic development grant, both subject to city council approval.

If it comes to fruition, the 129-acre project will feature a 740,000-square-foot refrigerated and dry warehouse facility, which could be further expanded to reach 1.2 million square feet. Completion is slated for November 2014.

Rendering of planned FAA Southwest Regional Office courtesy of Trammell Crow Co. via FWBP.

Washington Real Estate Investment Trust recently announced a major renovation plan for 7900 Westpark Drive, a Class A office complex in the hub of Tysons Corner, Va. It selected Jones Lang LaSalle Inc. to market the property.

7900 Westpark Drive is a three-building, 540,000-square-foot complex located in the heart of Tysons Corner. Its on-site amenities include a fitness center, conference facility, cafe, daycare center, travel agency, convenience store with dry cleaner drop-off, common areas with Wi-Fi and a four-level parking garage. The surrounding area also offers many retail and dining options.

Recently, the complex received a LEED EB Silver certification from the U.S. Green Building Council. Another WRIT building, 2000 M St., was certified LEED Gold. WRIT now has six LEED EB certified properties.

The renovation project will begin in the fourth quarter of 2013. It is expected to cost between $30 million and $35 million. Plans call for a new glass curtain wall façade on the Tower building, an illuminated two-story entry and up to nine-foot finished ceilings with floor-to-ceiling windows in new tenant spaces.

“7900 Westpark Drive’s prime location offers high visibility from the Capital Beltway and Route 123, making it an excellent candidate for a renovation of this magnitude. We believe the Tysons Corner real estate market is a strong long-term investment, supported by the recent completion of the 495 express lanes and anticipated completion of the Silver Line of the Metro, along with the strong amenity base already existent in the submarket,” Thoma Regnell, senior vice president & managing director of WRIT’s office division, said in a statement for the press.

The Jones Lang LaSalle Northern Virginia agency leasing team is handling leasing for the complex on behalf of WRIT.  “The renovation will enhance the complex’s already striking presence, and the new design will provide a breathtaking experience for tenants and visitors as they enter the buildings,” said Marc Bassin, senior vice president of Jones Lang LaSalle. “It will be one of the area’s most enticing complexes.”

Click here for more market data on Washington, D.C.

by Adriana Pop, Associate Editor

Sourwine Real Estate Services, a locally based three-generation real estate owner, developer and property management company, is about to complete the first speculative office building in the Indianapolis area since 2008.

According to the Indianapolis Business Journal, construction on the $12 million, three-story structure at 8335 Keystone Crossing will wrap up this month. The 80,700-square-foot Class A office building has been designed by CSO Architects. Shiel Sexton was the construction manager. As reported by the Commercial Property Executive, Sourwine broke ground on the project last summer.

Known as 8335 Keystone Crossing, the facility is part of the company’s Keystone Office Centre. The complex is located southeast of 86th Street and Keystone Avenue and includes two other buildings, at 8395 and 8365. One of the properties is fully leased, while the other has an occupancy rate of 96 percent.

In the true nature of speculative development, the new building has yet to find an anchor tenant. Leasing is being handled by the Indianapolis office of Cassidy Turley.

“We have belief not only in our own product but a belief in the Keystone submarket to perform above average,” Joe Sourwine, the developer’s asset manager told the newspaper. “We just think it’s an advantageous time to bring this to the market.”

With a current vacancy rate around 20 percent, and few projects in the pipeline, the Indianapolis office market is beginning to rebound from the economic downturn. The Keystone at the Crossing area in particular has been showing very positive signs recently. The only other office project in this submarket that matches Sourwine’s offering is the 80,000-square-foot Three Woodfield Crossing.

Five years ago, Indianapolis-based Edgeworth Laskey Properties completed the most recent speculative office development in central Indiana. Known as Lake Pointe Center 5, the six-story, 150,000-square-foot building is located at the southwest corner of Interstate 465 and Allisonville Road.

Photo credits: Sourwine Real Estate Services

The Board of Aldermen is expected to pass a board bill to provide $4 million in tax increment financing to redevelop the Chemical Building in downtown St. Louis.

The St. Louis Business Journal reports Alderwoman Phyllis Young, who is sponsoring the bill, said LandWhite Developers LLC intends to spend $33 million to transform the Chemical Building and create 120 apartments and 7,000 square feet of street-level retail space. Lancaster Ventures Ltd., an affiliate of LandWhite Developers, is expected to pay off the TIF in 17 years or by 2030, according to Young.

Currently the building, located at 721 Olive Street, has only one tenant, Kessler Mroz Jewelry Inc., on the ground floor. Built in 1896 the building was designed by Henry Ives Cobb with a later addition in 1902 which was designed by Mauran, Russel & Garden. The 17-story building was acquired by LandWhite Developers in September 2012 for $3.9 million after the building was marketed by Cushman & Wakefield/Gateway Commercial. The company purchased the building from Centrue Bank, which in March 2011 foreclosed on the property. Centrue purchased the property with a sole bid of $3.36 million.

Polsinelli senior partner, William Kuehling, represented LandWhite in the deal. He said, for the same source, the project is also eligible to receive $1.2 million in federal historic tax credits, around $1.2 million in Federal Brownfields Tax credits and $6.2 million in state historic tax credits.

The contractor on the project is Paric Corp., and Roseman & Associates will be the architect.

Photo Courtesy of: Steven Martin via Flickr./em

Investors continue to exhibit confidence in the Greater Baltimore industrial market. The low unemployment, close proximity to Washington, DC and Philadelphia, and ease of access to the Port of Baltimore make the area very attractive to industrial users and investors.

Terreno Realty Corporation has acquired an industrial property in Elkridge, Md. The deal was closed on June 12, with a purchase price of almost $16.7 million.

The property consists of two multi-tenant industrial distribution buildings located at 6675 Amberton Drive and 6660 Santa Barbara Road. The buildings are adjacent to I-95, US Route 1 and Maryland Route 100 in the Baltimore/Washington Corridor. They provide 107 dock-high and 10 drive-in doors and offer approximately 349,000 square feet of space on 17.9 acres of land. The two buildings are 64% occupied and are leased to seven tenants. According to Terreno, the estimated stabilized cap rate of the property is 8.0%.

Terreno Realty Corporation is a San Francisco-based buyer, owner and operator of industrial real estate in six major coastal U.S. markets: Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore.

In related news, Cassidy Turley recently announced the completion of three leases within the Baltimore Washington Corridor. The leases total over 33,000 square feet of industrial space at RREEF’s New Ridge/Benson portfolio.

The properties are located at 7476 New Ridge Road in Hanover, Md. and 3431 Benson Avenue in Baltimore. They total 132,276 square feet and are presently 75% leased, according to Cassidy Turley.

Goodwill Industries of the Chesapeake, Inc., represented by Cassidy Turley’s David Downey and Michael Walsh, leased 20,302 square feet. T.F. Andrew Carpet One, Inc., represented by Michael Walsh of Cassidy Turley, leased 10,104 square feet, while SETO Holdings, Inc., represented by Cushman and Wakefield’s Jonathan Casella, leased 2,153 square feet.

The landlord, RREEF, was represented by Jarred Testa and Tilghman Herring of Cassidy Turley’s Core Industrial Leasing Team. “We are very pleased with the client-first, results oriented service that Jarred and Tilghman provide. Combined with a comprehensive knowledge of Baltimore’s industrial market, they are a true value-add service provider,” said Michael Ready, vice president of Real Estate Asset Management with RREEF/Deutsche Asset & Wealth Management, in a press statement.

Charts courtesy of CBRE.

Cushman & Wakefield | Thalhimer announced the sale of a Charleston County office asset for $340,000. Located at 3405 Salterbeck St., the office property is composed of two condominiums totaling 2,300 square feet and was purchased by MLD Properties, LLC from Charleston-based East Bay Company, LTD. Cushman & Wakefield | Thalhimer’s Mark Erickson represented the seller and was contracted by the new owner to stay on to handle leasing operations.

The asset is located in the Park West Development, a 1,700-acre premier planned development in Mt. Pleasant, SC. Park West is South Carolina developer LandTech, Inc.’s flagship mixed-use community composed of 29 neighborhoods. The project contains both single and multifamily developments (from townhomes to condominiums, live-work residences and senior housing including assisted living), as well as extensive commercial space such as retail and office space, and educational and healthcare facilities. The community features extensive recreational facilities such as pools, softball, baseball, football, soccer, lighted tennis courts, parks, playgrounds, walking, hiking and biking paths as well as indoor and outdoor swimming pools.

In other local news, Colliers International announced securing new assignments through its South Carolina chapter, thus growing its property management portfolio by 1.3 million square feet. The new additions include circa 100,000 square feet of office space, 400,000 square feet of distribution and industrial space and 800,000 square feet of retail and the following assets: The North Charleston Faber Centre, the West Columbia Westside Plaza, Parkland Plaza in Cayce and Wesmark Plaza in Sumter.

Located at 4000 Faber Dr., in North Charleston’s The Executive Park at Faber Place, Faber Center features 97,000 square feet of Class A office space and is Energy Star-certified. Tenants include SunTrust, Charleston economic Development, MetLife and Walgreens. Full-service commercial real estate developer Holder Properties developed the property. Durlach Associates has also been involved.

Image courtesy of Holder Properties

Chart courtesy of Cushman & Wakefield | Thalhimer

by Adriana Pop, Associate Editor

An affiliate of DNA Partners of Cold Spring Harbor, N.Y. has acquired the 40,524-square-foot Hope Valley Square retail center in Durham.

According to the Triangle Business Journal, Hawthorne Retail Partners of Charlotte sold the property for $7.7 million. Berkeley Capital Advisors represented the company in the sale.

Formerly known as Shannon Plaza, the shopping center at 3710 Shannon Road is anchored by one of the busiest U.S. Postal Service offices in the city. According to the newspaper’s quarterly Space survey, Hope Valley Square was nearly 100 percent leased during this year’s first quarter. Three popular restaurants, including Only Burger, Bull Street Gourmet & Market and Pop’s Backdoor South are also among the center’s tenants.

In 2007, Hawthorne Retail Partners acquired the property for $2.4 million. Through substantial renovations, the company has converted the distressed structure into a Class A neighborhood center. Upgrades included a façade enhancement, a new pylon sign, parking lot resurfacing, as well as parking lot lighting and landscaping improvements.

In regional news, CVS has signed a 20-year ground lease to build a new, 13,000-square-foot stand-alone store on the vacant outparcel at the 113,000-square-foot Rams Plaza shopping center in Chapel Hill.

The 30-year-old retail property at 1728 Fordham Boulevard is owned by the Kalikow Group, through a joint venture entity known as Rams Plaza Associates L.L.C. The company purchased the center in December 2011.

Rams Plaza is currently 95 percent occupied and anchored by Food Lion. As a long-time junior anchor, CVS will continue to occupy 8,500 square feet of space within the center until the new store is completed.

The new lease marks the beginning of the second phase of a $3 million renovation plan. In March, the owners completed the first phase, which consisted of $1.5 million in upgrades to the facade, building structures, interior courtyard and parking areas.

“We are extremely pleased to announce this agreement with CVS, which allows us to complete our redevelopment of this shopping center,” said Edward Kalikow, president and CEO of The Kalikow Group. “Tenant retention remains very high in the area, which has significant barriers to entry, and we are gratified that CVS has chosen to expand at the new Rams Plaza.”

Photo credits: www.loopnet.com

Server Farm Realty LLC recently unveiled 840 South Canal, its newest state-of-the-art data center facility in Chicago, at an invitation-only ribbon cutting ceremony attended, among others, by Chicago’s Mayor Rahm Emanuel and Peerless Network’s CEO John Barnicle.

As previously reported by Commercial Property Executive, Server Farm Realty officially took over ownership of the 450,000-square-foot facility in January 2011. The facility previously housed the General Electric Co. factory and served as Northern Trust’s data center and operations hub. Server Farm Realty invested over $220 million to redevelop and transform the building into a Tier III data center. The revamped facility now features a concurrently maintainable design with 100 percent availability and delivers approximately 20 MW of power to over 138,000 square feet of raised data center suites. The eight-story building also maintains 4 MW of critical power over five data center floors and features one of the lowest Power Usage Effectiveness ratings in Chicago: 1.4 or better.

“Chicago is the ideal location for secure, low latency network infrastructure. Aggressive power rates with a low carbon fuel mix and efficient, free cooling conditions throughout much of the year align well with what today’s technology and media companies, healthcare organizations, financial services firms, and many others are looking for in a data center,” said Avner Papouchado, CEO of Server Farm Realty. Avner Papouchado continued by welcoming Peerless Network to the company’s expanding portfolio. Peerless signed a long term lease for 12,600 square feet on the top floor of 840 South Canal.

“SFR’s newest facility is located in one of the world’s most strategic markets for data center development and connectivity,” adds John Barnicle, president and CEO of Peerless Network. “As the first tenant in the building, we have already enjoyed highly personable service, customized to meet our business’ unique needs while implemented in a timely and extremely professional manner.”

Chicago boasts one of the lowest total cost of occupancy for data center users on top of being a global data center hub and interconnection point for virtually every fiber network.

Photo Courtesy of: www.840southcanal.com

E2M Strategic Fund LP, the fourth private equity fund of Dallas-based E2M Partners, together with Wood Partners has purchased Del Arte Lofts & Flats in the Denver suburb of Aurora.

Located at 151 South Joliet Circle in Aurora, Del Arte Lofts & Flats is a 351-unit Class B multifamily community closely located to public transportation and minutes away from Interstate 225 and Denver International Airport. The partnership has planned to make various improvements to the property which will be overseen by Wood Partners. Riverstone Residential Group will manage Del Arte Lofts & Flats.

“Wood Partners has a strong track record of improving multifamily communities, not only in the Denver area but across the United States,” said Bob Stone, E2M vice president. “They are the ideal partner on this venture because they know the market and have successfully invested there.”

The E2M Strategic Fund targets multifamily, industrial, hospitality, senior living and retail properties in strategic markets with strong population and job growth. The fund was launched in 2011 and seeks to raise $350 million in equity with $89 million in commitments secured. E2M Partners anticipate closing the fund by year-end 2013.

“The Denver acquisition complements our strategy of investing in growing markets with solid market fundamentals,” said Bill Daves, president and CEO of E2M Partners. “A key element of our strategy is to invest with best-in-class operating partners who have proven track records in properly repositioning properties through comprehensive business plans. One of four multifamily investments, the Denver property is well-located and can be repositioned as an exceptional rental value in a market that is experiencing solid rent growth.”

For more market data from Denver, click here.

LondonMetric Property Plc, a real estate investment trust, has recently completed the sale of its stake in a large distribution portfolio to a joint venture between U.S.-based Prologis’ European branch and Norges Bank Investment Management. The JV purchased the eleven industrial properties that comprise the portfolio for a fee of around $380 million, reflecting a net initial yield of 6.25 percent.

The industrial portfolio totals 2.4 million square feet of space, with 10 of the properties being held by LondonMetric in a 50 percent joint venture with Green Park Investments. The remaining Focus Distribution Centre at Tamworth, was wholly owned by the British REIT. According to a press release, after repayment of debt and fees, LondonMetric made a $105 million profit.

The seller will continue to activate in the distribution market, with its current 1.4 million-square-foot assets being leased to retailers such as Primark, the Co-op and Tesco, the latter through its joint venture with Green Park Investments.

Norway’s oil fund, Norwegian Pension Fund Global, the world’s largest sovereign wealth fund and the entity responsible for the major industrial acquisition, is reportedly ramping up its investments in various sectors of diverse real estate markets around the world. The fund is currently at the start of a shopping spree, which would see it become one of the largest property players in the world.

With a current property portfolio worth around $6.5 billion, according to the Financial Times, the fund is a long way from having any financing trouble in its endeavors, as it totals a reported $720 billion. Its initiative to create a new joint venture alongside TIAA-CREF that would facilitate its entrance on the U.S. property market is also reportedly set to see a number of major office acquisitions in the immediate future.

The University of Texas – San Antonio will be the recipient of one of three new student developments encompassing 1,400 units that have  broken ground under the Fountain Residential Partners name. With additional projects for The University of Houston and The University of Minnesota – Twin Cities, the company will start leasing in the coming months, with occupancy starting in autumn of 2014. 

The San Antonio project, Prado, is located at 14531 Roadrunner Way, across the street from the UT – San Antonio campus. It is planned to accommodate 498 students in one, two, three, four and five-bedroom homes. They will also benefit from a 6,000-square-foot restaurant fronting UTSA Boulevard. The development includes four stories and was designed in the Spanish style.

“We have been following this site, at one of the main entrances to campus, for several years. There simply is not a better location in the marketplace, and we feel fortunate to be able to transform the property into a mixed-use community that the neighborhood, students and the university will be proud of. It will definitely raise the bar for student housing at UTSA and matches the master-plan vision for the future of UTSA Boulevard,” said Executive Vice President Jon Clayton.

Prado will distinguish itself from typical student housing through a few state-of-the-art features: keyless entry, open floor plans, granite countertops, stainless steel appliances, wood-look floors, 50-inch flat-screen TVs with DVRs, furnishing inspired in the European style, high-end light installations and Wi-Fi everywhere. The amenity center is distributed on two levels encompassing 10,000 square feet. It will offer to the students a fitness center and study lounges, and a relaxation area with a tanning bed and a gaming center with digital games and pool tables.

The general contractor for Prado will be Centerpoint Builders and the architectural planning will be offered by Stuart Roosth Architects. Leasing and management services for all three campuses will be provided by Dallas-based Grand Campus Living.

Photo credits www.fountainresidential.com

By Adriana Pop, Associate Editor

A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., has agreed to acquire the Pearl Highlands Center in Pearl City for $141.5 million.

Located 12 miles west of downtown Honolulu, the 415,000-square-foot fee-simple retail center is 98 percent occupied. The property spreads across 13.5 acres and is anchored by Sam’s Club, Regal Theaters, Ross Dress for Less, 24 Hour Fitness and a soon-to-be-opened Buffalo Wild Wings.

The purchase price includes the assumption of a $59.3 million mortgage, which matures in September 2016. The closing of the sale, expected to occur in the second half of 2013, is subject to various conditions, including the lender’s approval of the loan assumption.

“The Pearl Highlands acquisition will represent a significant advancement of our strategy to migrate our commercial portfolio back to Hawaii,” said Christopher Benjamin, A&B’s president & COO. “The addition of Pearl Highlands will boost our total Hawaii commercial square footage over the 2 million square-foot mark—a 25 percent increase—and will make A&B the second-largest retail owner/operator in the state.”

Centrally located, Pearl Highlands serves more than 220,000 Hawaii residents who live within a five-mile radius of the center.

“The Pearl Highlands acquisition not only accelerates our Hawaii growth but it reaffirms our ability to leverage our market knowledge and relationships to acquire significant assets through off-market transactions,” Benjamin added.

In other news, Host Hotels & Resorts Inc. has acquired the 426-room Hyatt Place Waikiki Beach in downtown Honolulu for $138.5 million. The seller of the property was an affiliate of Chartres Lodging Group L.L.C. and Morgan Stanley Real Estate Fund VII Global.

Kokua Hospitality will continue to manage the hotel, in accordance with a franchise agreement with Chicago-based Hyatt.

The property underwent a $45 million renovation in 2011 and was converted to a Hyatt Place the following year. Located just 1.5 blocks from Waikiki Beach, the hotel offers guests easy access to the Waikiki Aquarium, the Honolulu Zoo and the Kalakaua shopping/entertainment district.

Photo credits: www.pearlhighlands.com

Reflecting the University of Houston’s efforts to add housing options in order to transform itself from an urban commuter-based campus to a Tier One research institution, a new student housing building will soon rise right across from the campus.

Developer Fountain Residential Partners recently broke ground on the five-story, 347-bed project called The Vue on MacGregor. Located directly across Brays Bayou from the Bayou Oaks on-campus housing community – which serves the Greek housing needs of the university – the new development will be the first privately owned off-campus community for The University of Houston. Featuring a modern design, The Vue on MacGregor will be within walking distance to the center of campus and two new light-rail stations. With 5G Studio as the architect and Centerpoint Builders as the general contractor, leasing for the project is set to start in the coming months for a fall 2014 occupancy.

The University of Houston currently has several significant construction projects underway on the campus, spurred by the recent Tier One Research University status and driven by the school’s significant growth. “Reaching Tier One truly takes UH to a new level. This is an exceptional site and project that will support UH’s efforts on campus, and we look forward to being a part of the community,” said Trevor Tollett, vice president of development at Fountain.

The Vue on MacGregor is one of the three Fountain Residential projects currently underway; the company is also developing the Prado, located across from the University of Texas – San Antonio campus on UTSA Boulevard and planned to house as many as 498 students, and Metro Park East, a student housing complex meant to serve the University of Minnesota in Minneapolis. Dallas-based Grand Campus Living will provide leasing and management services for the three communities.

Other housing developments near the University of Texas that are set for completion this fall include the 800-bed Cougar Place Apartments at 3800 Cullen and the 1,144-bed Cougar Village II, which is to be located at 4873 Wheeler.

Image via Fountain Residential Partners

Trammell Crow Co.  and Principal Real Estate Investors have joined forces to develop Legacy Towers, a speculative two-phase office project in Plano’s Legacy business park.

The joint venture has begun demolition of the former Stacy Furniture headquarters building at the southeast corner of the Dallas North Tollway and Legacy Drive to make way for the new high-profile development.

Phase I calls for a 13-story, 342,066-square-foot, Class AA office tower and a 1,200-car, six-level parking structure connected by a conditioned walkway. Phase II is expected to be a seven-story, approximately 192,500-square-foot Class A office building.

“Legacy is one of the best office markets in the country, and this truly is the best site in Legacy Business Park,” said Denton Walker, a senior managing director for Trammell Crow’s Dallas/Fort Worth business unit, in a release. “We are excited to officially begin this speculative project with our partner Principal Real Estate Investors to deliver a high-quality office project located at the gateway to Legacy Town Center. We are excited to deliver a product with a level of design and construction materials that we believe will be unmatched in Legacy.”

Designed by Dallas-based architectural firm HKS Inc., the project seeks LEED Gold certification and will be available for occupancy in the third quarter of 2014. Wells Fargo is the project lender. CBRE Dallas Senior Vice President Dennis Barnes, First Vice President Celeste Fowden and Associate Hunter Lee of CBRE Dallas are marketing and leasing the state-of-the-art office building, according to company statements.

In other news, Colonial Properties Trust completed the acquisition of the 252-unit Colonial Reserve at Frisco Bridges (formerly Ablon at Frisco Bridges), in a $36.2 million deal.

The newly developed Class A mid-rise apartment community is located in the Frisco submarket and features direct access to more than 17 million square feet of office space within a five-mile radius, including major employers such as Hewlett-Packard (EDS), Dr. Pepper, Frito-Lay Inc., Ericsson, BofA Home Loans and JC Penney.

Amenities include a resort-style pool, state-of-the-art fitness center, structured parking with controlled access and gourmet kitchens with stainless steel appliances and granite countertops.

The property is currently in lease-up, with 30 percent of the units leased at the time of acquisition.

Rendering: Plano Economic Development

In a $73 million deal, an affiliate of Phoenix-based JDM Partners L.L.C. has acquired State Farm Mutual Automobile Insurance Co.’s operations center in Tempe.

Built in 1999, the 372,408-square-foot complex sits on a 21-acre tract at 2700-2925 S. Sunland Drive and 2980 S. Priest Drive, within the master-planned Fountainhead Corporate Park in Tempe. The property consists of four Class A office buildings, one inspection and storage facility, along with two above-grade parking structures.

It has convenient access to the regional freeway network, Sky Harbor International Airport, downtown Tempe, Arizona State University and a wide variety of nearby amenities. Barry Gabel, Mindy Korth and Chris Marchildon of CBRE Group Inc.’s Phoenix office represented the seller. The five-building corporate campus is completely occupied by State Farm Insurance.

In other transaction news, San Diego-based Pathfinder Partners, L.L.C. has expanded its Phoenix footprint with the $16.4 million acquisition of Copper Creek, a 21-building community in Tempe, from Equity Residential.

Developed in 1984, the 144-unit property features one- and two-bedroom apartments and townhomes ranging from 711 to 1263 square feet. Common amenities include two pools, a spa, clubhouse, fitness center, barbecue grills and picnic area.

Pathfinder plans to give the property a $1.6 million makeover. Highlights will include a new clubhouse/gym, landscaping, a dog park and new exterior paint. Some units will get new flooring, cabinetry, countertops, finishes, fixtures, appliances and fresh paint. Additionally, Pathfinder will rename the property and install new signage.

Other recent Pathfinder acquisitions in the Phoenix area include:

- Academy Apartments, a 96-unit, four-building community near the city’s central business district
- Dorsey Place, 84 units in a 90-unit new condominium project in Tempe, in partnership with San Diego-based Stratford Partners
- Dobson Springs Apartments, a 120-unit complex in Mesa, an REO acquisition in partnership with Arizona- and British Columbia-based Bruckal Properties and its affiliate New Summit Partners
-Barolo Place, a high-end townhome project at 10757 North 74th St. in Scottsdale. Pathfinder acquired the remaining 16 units in the 65-unit community. (Pathfinder)

Photo: Fountainhead Corporate Park

This past week was quite an eventful one for CBRE’s Orlando office. Not only has the team grown by adding Jay Dixon—a former senior office leasing professional at Lincoln Property Company in Orlando with over ten years of experience—as an office building sales professional, but it has also managed to close on the sale and acquisition financing for The Element, and land a new tenant for the HD Supply Building.

CBRE arranged the $27 million sale and the $20.25 million financing of The Element, one of Orlando’s premier gated communities. CBRE’s Debt & Equity Financing Group worked on behalf of Optimus Element, LLP, advised by Miami-based, TM Real Estate Group, LLC, to secure acquisition financing through J.P. Morgan of Atlanta, Georgia. Proceeds were used to acquire the property. CBRE’s Capital Markets Group also exclusively represented the seller, Karlin Real Estate of Los Angeles, California.

CBRE Vice Chairman Charles Foschini and Vice President Christopher Apone, both with CBRE’s Debt & Equity Financing Group, along with Christian Lee, vice chairman with CBRE’s Capital Markets Institutional Group, arranged the financing. From CBRE’s Investment Properties Group in Orlando, Shelton Granade, executive vice president, Luke Wickham, vice president, and Justin Basquill, associate, represented the seller.

The Element is a luxury community with frontage on the MetroWest Golf Club, Orlando’s only Robert Trent Jones Senior-designed signature golf course. Extensively rehabbed in 2009/2010, The Element offers beautiful golf course views and Class A features such as private garages, 9-foot and vaulted ceilings, crown molding and full-size washers and dryers.

CBRE was also in charge of negotiating the lease with TravelClick—a provider of products and services for the hospitality industry—that plans to expand its presence in Florida. TravelClick has signed a 36,748-square-foot lease for the entire third floor of the HD Supply Building, a five-story office building at 501 Church Street in Orlando’s Central Business District. CBRE represented both the tenant and the landlord in the negotiations.

TravelClick will consolidate its offices in Winter Springs and south Orlando with the move, planned for July 2013. The new space—larger than both of the company’s two existing offices combined—will accommodate the company’s forecasted expansion that could include up to 450 new employees.

HD Supply Building was built in 2004 and is strategically located at Church Street and Division Avenue, with easy access to Interstate 4 and East/West Expressway. The building is adjacent to the new Amway Center and is within walking distance to popular restaurants and retail.

Image via Apartment Guide

Hines’ newest luxury multifamily project in the Boston area kicked off this week at 36 River Street in Waltham, MA. Located just 10 miles west of downtown Boston, 36 River will create new high-quality housing opportunities for the city while supporting area businesses and community development along the Charles River.

Three months ago the Boston Herald reported that the already permitted residential complex—which was then called Acadia on the Charles Apartments—was sold by real estate firm Saracen Properties to Texas-based Hines for $13.5 million.

Developed by general contractor Callahan, Inc., and designed by CUBE3 Studio of Lawrence, MA, 36 River will replace a former parking lot near the Watertown line, overlooking the Charles River. The M-shaped building will have 200 rental luxury apartments and a package of high-end amenities such as a resort-style swimming pool, a state-of-the-art fitness center and sports lounge, and an internet café. Each unit will be equipped with stone countertops, stainless steel appliances, high-quality cabinets and lighting and an open kitchen/living design with all-wood floors. Many units will have private balconies or patios overlooking the river. The four-story residential building clad in brick along the urban street sides will also include an underground parking garage on two levels that will offer up to 400 parking spaces.

According to a press statement, 36 River is Hines’ first rental residential project in the Boston area. The complex will reach final completion in April 2015, but the developer estimates that the first apartment units will be ready for occupancy as early as November 2014. The 36 River multifamily asset in Waltham will be followed by a second similar project in Cambridge, MA.

Rendering of 36 River courtesy of Hines

The American Institute of Architects Illinois has awarded top prizes at the 2013 Honor Awards to Randolph Tower, the Hairpin Lofts and Hairpin Arts Center—all projects of Hartshorne Plunkard Architecture. The evening’s highest project honor, the Louis Sullivan Award, went to Randolph Tower in Chicago. The adaptive reuse project succeeded in transforming the landmark Steuben Club Building into a mixed-use residential community in the heart of Chicago’s Theater District.

Standing at 463 feet tall, the circa 1929 building is one of the tallest terra cotta-clad towers in Chicago, featuring numerous Gothic Revival architectural elements such as ornate buttresses, gargoyles and arches. Designed to house offices, retail stores and a private German social club, the building was shut down in 2001 by city officials due to hazardous conditions.

The building remained abandoned for over a decade until it was adapted into a mixed-use development with 313 mixed-income apartments, commercial office space and retail storefronts.

Brandy Koch, 2013 AIA Illinois president—who convened the national jury and served as an ex officio member, said: “The jury recognized the daunting challenges of the rehabilitation of Randolph Tower and was impressed by its ambitious scale and complexity.”

The award was accepted by Paul Alessandro, a partner with HPA and the company’s director of interior design, George Valdez. Alessandro told the audience: “This project was 13 years in the making, and getting it completed took one of the most amazing public-private partnerships ever assembled. Both of us will be proud of this project for the rest of our careers.”

The second award won by HPA, the Crombie Taylor Honor Award, was for the Hairpin Lofts and Hairpin Arts Center in Chicago. The award recognizes a project that has enhanced the natural and built environments of a community through preservation and restoration.

The rehabilitation of the former Morris B. Sachs Building converted a commercial office and retail structure into a multi-use development with a 6,000-square-foot community arts center, 7,000-square-foot of retail storefronts and 28 loft apartments—out of which 25 units were dedicated as affordable housing.

The circa 1929 flatiron building, listed on the National Register of Historic Buildings and a Chicago landmark, is well known for its triangular footprint and camel logo of the original occupant—the Hump Hair Pin Manufacturing Company.

The project is LEED Gold certified and features rooftop solar panels that provide heat for domestic hot water; a high-performance building envelope; a green roof; and ground-source heat-pump wells.

Photo Credits: Randolph Tower – Leslie Schwartz; Hairpin Lofts – Patsy McEnroe

by Adriana Pop, Associate Editor

In a $37.5 million deal, Federal Capital Partners of Maryland has acquired the 10-story Erwin Square Plaza office building in downtown Durham from National Asset Services Inc. of Los Angeles. Ben Kilgore at CBRE represented the seller in the transaction.

Located at 2200 West Main Street in the master-planned Erwin Square Development, the property offers 215,048 square feet of office space, as well as 23,744 square feet of retail and a four-level parking deck. Duke University and Duke University Health System-related companies and organizations are among the building’s tenants, which has a current occupancy rate of 96.2 percent.

“Erwin Square Plaza is of very high quality and is well-located in downtown Durham, which has seen enormous growth and revitalization in the last 10 years. The Durham CBD is experiencing healthy demand for office space, and the property has maintained a 95 percent+ occupancy since 2007. We look forward to renovating the property back to its institutional-grade potential and repositioning the important retail portion of the property,” FCP Managing Partner, Esko Korhonen said in a statement.

Federal Capital Partners now has controlling interest in or has provided financing for more than 350,000 square feet of commercial space and nearly 2,000 apartments in the Triangle area. This includes the 156-unit West Village community currently under construction in downtown Durham.

In other news, Blue Cross Blue Shield of North Carolina is expanding its Durham campus on University Drive with the acquisition of two office buildings.

According to the NewsObserver, the company has purchased University Place 4 and University Place 5 for a combined $10 million. Together, the properties offer approximately 100,000 square feet of space. The new acquisitions will enable Blue Cross to relocate its operations from the current headquarters in Chapel Hill to Durham by next year.

Blue Cross is North Carolina’s largest insurer, with more than 4,000 employees across the state. The company now owns about 560,000 square feet in eight buildings at its University Place corporate campus in Durham.

Photo credits: CBRE

The 8,470-square-foot phase one of a new medical complex is nearing completion. Mark Edwards, the leasing agent of the project and president of Edwards Commercial Realty, said the project should be completed by the end of June.

“This serves an underserved area,” Edwards said. “Urology was underserved. A medical complex creates flexibility and versatility for Corrales, Rio Rancho, Albuquerque’s west side and even north Albuquerque. We want this to be a one-stop medical clinic development.”

Named Pinnacle Point, the medical office center is located at 4410 Irving Blvd, near Eagle Ranch NW. Other neighboring centers are the Presbyterian Rust Medical Center and Lovelace Westside Hospital. It’s designed to total approximately 16,000 square feet on 1.7 acres with a calculated cost of $1.3 million. Phase two consists of a development of about 7,300 square feet.

The anchor tenant, Albuquerque Urology Associates, will occupy 5,290 square feet. The remaining 3,167 square feet are divided into two offices and will be available for lease for other medical practices. Leasing discussions with medical labs, dentists, ophthalmologists and dermatologists have been initiated, reported Edwards. “We are focused on leasing units or structuring leases with purchase options that could be exercised as early as mid-2016,” he said.

The office space can be leased in an unfinished, heated shell form starting at $16 per square foot. For special improvements the rental rate can jump up to $21 per square foot, but tenants also have the option to hire contractors to build out the interior. The option to lease the space through loans is also available. Suits range from 1,368 to 7,228 square feet.

The architect is Tijeras-based AKT Architects and the general contractor is local Richardson & Richardson.

Photo credits www.cabq.gov/

By Adriana Pop, Associate Editor

The Koppers Building, one of the finest Art Deco office towers in the Pittsburgh region, has been listed for sale.

According to the Pittsburgh Business Times, Gerry Dudley and Ryan Sciullo of the local office of CBRE are marketing the building, which offers more than 350,000 square feet of space.

Located at the corner of Grant Street and Seventh Avenue in the heart of the city’s downtown, the 34-story skyscraper has an occupancy rate of 69.4 percent. The building is anchored by construction materials company Koppers Inc., which has a long-term lease for the space. Other tenants include the Allegheny County Bar Association, Howard Hanna Commercial Real Estate Services, Bank of America, as well as law firm Horovitz, Rudoy & Rateman LLC.

Built in 1929 and designed by Chicago architecture firm Graham, Anderson, Probst and White, the high-rise is currently owned by Koppers Building Holdings Inc. of Radnor, PA. The company purchased the tower in 1997 for $13.2 million.

In other news, developer a.m. Rodriguez Associates is repurposing the former Prospect Middle School in Mount Washington into 67 market rate apartments. The company has partnered with Sota Construction Services to renovate the historic “Art Deco” property.

The Pittsburgh Post-Gazette reports that the developer has recently purchased the building from The Mount Washington Community Development Corporation.

Called The Lofts on Mount Washington, the approximately $14 million project will offer residential units in 16 styles, ranging in size from 800 to 2,000 square feet. Plans also call for a grand auditorium entrance, an 11,000 square foot fitness facility in one of the gyms, a theater that can be rented for productions, a rooftop deck, as well as a large landscaped courtyard. Construction is expected to be complete by May 2014.

Photo credits: Wikimedia Commons

Pennrose Properties and City Center Investment Corp. have teamed up to develop a $45 million high-end, mixed-use complex in Allentown to capitalize on the explosion of new construction driven by the city’s Neighborhood Improvement Zone (NIZ).

As reported by The Morning Call, this will be the joint venture’s first project under the city’s NIZ, which allows private developers to finance their projects via a combination of federal and local tax incentives.

The complex will be located on 7^th Street and will feature a five-story building with 160 luxury one- and two-bedroom apartments with rents starting from $1,000 a month. Project plans also include 30,000 square feet of premium retail, café and restaurant space on the building’s first two floors, as well as 125 high-end underground parking spaces and a rooftop pool.

The project is part of a major development plan called City Center Lehigh Valley that’s meant to transform downtown Allentown into one of the most vibrant urban communities in the region. The master plan calls for three Class A office buildings, the rehabilitation of several buildings on Hamilton Street, a 200-room full-service hotel and the adjacent 8,500-seat PPL Center hockey arena that is currently under construction.

According to a project description on Urban Land Institute (ULI) Philadelphia’s website, Allentown-based City Center Investment Corp. has already invested over $500 million in the redevelopment project. It is estimated that in the next two years more than a billion dollars will be invested in the city of Allentown through this project.

Rendering courtesy of Pennrose Properties

by Adriana Pop, Associate Editor

HFF has provided $24.3 million in financing for Pickwick Farms Apartments, a 516-unit multi-housing community in Indianapolis.

HFF has secured the 10-year, 3.6 percent, fixed-rate loan on behalf of Pickwick Properties LLC. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program.

Pickwick Farms is located on the northwest side of Indianapolis, near 86th Street and Interstate 465. Built in two phases from 1978 to 1980, and renovated in 2007, the community offers studio, one-, two- and three-bedroom apartments. Amenities include a movie theatre, racquetball court, indoor basketball court, playground, community room, fitness center, swimming pool and two tennis courts. At closing, the community’s occupancy rate was 96 percent.

“This property was especially attractive to lenders due to its experienced sponsorship, highly desirable infill location, heavily populated medical district and the fact it is located less than half of a mile south of Hamilton County, the fastest growing county in Indiana,” HFF managing director Jon Everson said in prepared remarks.

In other news, Legacy Urban LLC and Riley Area Development Corp. have completed the reconversion of a historic building into affordable housing. According to the Indianapolis Recorder, the property is located on Meridian Street in the Near Northside of Indianapolis.

Called 1733 Meridian Apartments, the three-story complex offers 24 one-bedroom apartments for downtown workers. Currently, 19 of the 24 residences have already been occupied. Amenities include sunlit living spaces, energy-efficient appliances, LEED-certified HVAC, secured access, laundry facilities, recycling, interior bike storage, covered outdoor picnic and grill area, as well as a community room, kitchenette and computer area.

The cost for redeveloping the once-abandoned 1919 structure amounted to $4.7 million. Funding has been provided from multiple sources, including the Department of Housing and Urban Development, Indiana Housing and Community Development Authority, City of Indianapolis, the Indianapolis Neighborhood Housing Partnership and Alliant Capital.

Photo credits: www.pickwickfarms-apartments.com