Robert Khodadadian

CBRE Arranges Sale/Leaseback for Six Phoenix-Area School Buildings – Robert Khodadadian

Arizona has gone in big for charter schools. Two campuses under the EDUPRIZE banner recently freed up cash by selling their properties and then leasing them back. A CBRE team led by Geoffrey Turbow executed the transaction of six buildings in metro Phoenix. The combined 233,790 square-foot properties sold for $63.2 million.

The school plans to fully triple net leaseback on both campuses for 15 years. Both campuses feature state-of-the-art facilities, including gymnasiums, media centers, music rooms, multiple technology and science labs, and a playground.

The first campus includes three two-story buildings in Gilbert, Arizona totaling 141,000 square feet on 16.7 acres. The second property is located in Queen Creek, Arizona. The two-building campus is surrounded by 10 acres of extra land for future developments. The buildings are 50,176 sq. ft. and 41,983 sq. ft., respectively.

The post CBRE Arranges Sale/Leaseback for Six Phoenix-Area School Buildings appeared first on Connect CRE.

Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Aircraft Parts Giant Ditches LA for New Phoenix HQ – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

After looking at half a dozen locations, Unical Aviation settled on a 600,000 square foot site near Luke Air Force Base, in Glendale. In addition to housing its corporate operations, Unical will use the warehouse to store 85 million aircraft parts and components and is expected to start filling customer orders and shipping from Glendale this summer.

The Phoenix Business Journal reports CEO Sharon Green felt California’s corporate tax rates and rents were way too high. When it came to choosing a new HQ, she liked the fact that Phoenix was just a day’s drive away.

Unical will employ about 250 people total including the 70 to 80 new employees it plans to hire across warehouse, finance, aircraft repair, human resources and IT positions.

The post Aircraft Parts Giant Ditches LA for New Phoenix HQ appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Wayside Acquires Two N. Texas Extended-Stay Hotels – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Wayside’s Miraj Patel, “The DFW metroplex is generating strong lodging demand from both business and leisure travelers, which can result in exceptional return on investment for hotel owners.”

Currently, Wayside owns and operates a portfolio of 13 hotels located in south Texas, primarily in Gulf Coast cities. In addition, the company is scheduled to open a 90-unit extended stay hotel next month in Houston, and has two other extended stay properties under development.

The post Wayside Acquires Two N. Texas Extended-Stay Hotels appeared first on Connect CRE.

Wayside Investment Group has purchased two Extended Stay America Suites properties in Dallas – the 118-unit hotel on Frankford Road and the 150-unit hotel on Carnaby Street in Irving. The hotels are located one mile from the Irving Convention Center and seven miles from DFW International Airport. Wayside’s Miraj Patel, “The DFW metroplex is generating …
The post Wayside Acquires Two N. Texas Extended-Stay Hotels appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

West Shore Buys Celina Rental Community – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

West Shore has acquired the recently finished The Livano at Bluewood, a 272-unit multifamily community in the Dallas suburb of Celina, Texas. The company immediately rebranded it as Atlas Bluewood Apartments. Multihousing News reports the seller was a joint venture between LIV Development and Mesa Real Estate Partners. In 2020, the asset became subject to a $31.1 million construction loan from Pinnacle Financial Partners, according to Yardi Matrix.

Completed in 2022, the community comprises eight three-story buildings which incorporate one-, two- and three-bedroom floorplans ranging from 746 to 1,388 square feet. Apartments feature private balconies or enclosed yards for select layouts. Common-area amenities include a swimming pool, fitness center, yoga studio, pet park, pet spa and community market.

It’s located 11 miles from Frisco and 24 miles from Plano.

The purchase of Atlas Bluewood marks West Shore’s 50th acquisition in Texas, bringing its portfolio in the state to almost 1,900 units. The firm currently owns 47 properties throughout southern markets, totaling nearly 14,000 units.

The post West Shore Buys Celina Rental Community appeared first on Connect CRE.

West Shore has acquired the recently finished The Livano at Bluewood, a 272-unit multifamily community in the Dallas suburb of Celina, Texas. The company immediately rebranded it as Atlas Bluewood Apartments. Multihousing News reports the seller was a joint venture between LIV Development and Mesa Real Estate Partners. In 2020, the asset became subject to a $31.1 million construction …
The post West Shore Buys Celina Rental Community appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Salesforce Inks 34 KSF Sublease in Midtown Manhattan – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Brokerage, New York, News, Northeast, Office, CBRE, Ivanhoe Cambridge, JLL, Salesforce, Savills, Transwestern, VTS, Wells Fargo

3 Bryant Park. Image courtesy of CommercialEdge

Property technology company VTS has signed a six-year lease agreement for 34,325 square feet at 3 Bryant Park in Manhattan, subletting the space from Salesforce. The tenant will relocate its headquarters from 141 W. 41st St., planning to complete the transition by the fourth quarter of 2023.

VTS will occupy the entire 14th floor at the location. A team of brokers from Savills, Transwestern and JLL represented the new tenant, while CBRE brokered the deal on behalf of Salesforce.

Ivanhoé Cambridge owns the 1.2 million-square-foot building since 2015, when it purchased the property for $2.2 billion, with the involvement of a $1.1 billion loan from Wells Fargo, CommercialEdge data shows.

Other tenants at the 3 Bryant Park include Stifel, Apollo, MetLife, U.S. Bank and China Construction Bank, according to the same data provider. Completed in 1972, the 42-story tower features 35,600-square-foot floor plates and comprises 105,658 square feet of retail space.

Savills Vice Chairman & Director James Wenk represented VTS, in collaboration with co-brokers Transwestern Partner Patrick Heeg and JLL Executive Managing Director Sam Seiler. CBRE’s Senior Vice Presidents Alice Fair and James Ackerson, along with Vice Chairman Sacha Zarba worked on behalf of Salesforce.

In the heart of New York City

Located at 1095 Avenue Of The Americas, the Midtown Manhattan building sits less than a mile from both the Empire State Building and the Rockefeller Center. It is also adjacent to Bryant Park and within walking distance of the New York Public Library and Times Square.

In prepared remarks, Wenk mentioned that the tenant capitalized on New York City’s market conditions to secure an advantageous package. VTS CEO Nick Romito emphasized the company’s commitment to the metro and the need for more ample space as the firm has more than doubled its employee count since its pre-pandemic numbers.

The post Salesforce Inks 34 KSF Sublease in Midtown Manhattan appeared first on Commercial Property Executive.

The proptech tenant will occupy the entire 14th floor of the 1.2 million-square-foot tower.
The post Salesforce Inks 34 KSF Sublease in Midtown Manhattan appeared first on Commercial Property Executive. Read More Commercial Property Executive

In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land. Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings.

ground lease, ground leases, net lease, ground leases 101, ground lease nyc, skyline properties, skyline properties nyc, Robert Khodadadian, investment sales, broker, commercial real estate, skyline properties, commercial real estate, NYC real estate, ground lease, Skyline Properties, Skyline NYC, Skyline Properties NYC, New York City Real Estate, ground leases, commercial buildings, apartment buildings, townhouses, mixed use investment building, mixed use user buildings, live plus income buildings, industrial properties, NYC Real Estate, Real estate investment, commercial real estate, robert khodadadian, skyline properties, ground lease, net lease, investment sales, brokerage, manhattan real estate, off market broker, daniel shirazi, Off-market real estate

Anchor Health Expands Atlanta Footprint – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Atlanta, Investment, Medical Office, News, Southeast, Anchor Health Properties, CBRE, Colliers, First Citizens Bank

Forsyth Physicians Center. Image courtesy of Anchor Health Properties

Anchor Health Properties, in a joint venture with an institutional equity partner, has acquired Forsyth Physicians Center, a 91,940-square-foot medical office building in Cumming, Ga. Richmond Honan sold the Class A property, according to CommercialEdge information. First Citizens Bank provided the buyer with $20.5 million in debt financing.

The facility was 80 percent leased at the time of sale. Colliers Atlanta represented Anchor Health, while CBRE assisted the seller.

The acquisition marks Anchor Health’s second significant purchase in the Atlanta market in the last few months, adding to its Georgia portfolio of nearly 1 million square feet. The firm’s first investment in the metro involved a 43,730-square-foot medical office building in Lawrenceville.

A Class A medical office asset in metro Atlanta

Richmond Honan developed the property in 2016, financing its construction with a $15 million loan provided by United Community Bank, CommercialEdge data shows. The development team also included Lyman Davidson Dooley Inc. and Pencor Construction. The three-story building was 95 percent preleased at the time of its 2017 completion.

Forsyth Physicians Center provides various medical services, such as imaging, physical rehabilitation, surgery, cancer screening procedures and ORL procedures, among others. The tenant roster includes Resurgens Orthopaedics, GI North and North Atlanta Ear, Nose, Throat, and Allergy.

The facility occupies a 13-acre site at 4150 Deputy Bill Cantrell Memorial Road, adjacent to Northside Hospital Forsyth, some 40 miles Northeast of Atlanta. Other medical providers in the surrounding area include Village Medical – Morrow, Piedmont Urgent Care and Goodman Dermatology.

Executive Vice President Michael Lipton and Senior Vice President Andrew Walker with Colliers Atlanta negotiated on behalf of the buyer. Vice Chairman Lee Asher and First Vice President Jordan Selbiger with CBRE assisted the seller.

Anchor Health portfolio expansion in 2023

Anchor Health currently has $3.2 billion invested in stabilized healthcare facilities and 9 million square feet of medical office space under management. In the first half of 2023, the firm entered the Columbus health-care real estate market with the acquisition of a medical office building in Grove City, Ohio.

Two other purchases were made this spring, when the company expanded its Florida footprint with a 34,681-square-foot medical office in Sebastian, Fla., and then acquired Renewal Medical Center, a Class B facility in Lone Tree, Colo.

The post Anchor Health Expands Atlanta Footprint appeared first on Commercial Property Executive.

That medical office building was 80 percent leased at the time of sale.
The post Anchor Health Expands Atlanta Footprint appeared first on Commercial Property Executive. Read More Commercial Property Executive

Value of Downtown LA’s Gas Company Tower Sinks 57% in 2 Years: Trepp – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

The Gas Company Tower in Downtown Los Angeles has been perhaps the nation’s most prominent example of office distress and declining demand, and now we have a dollar figure on the toll it’s taken.

The value of the 52-story tower at 555 West Fifth Street is down 57 percent — from $632 million in 2021 to $270 million — according to Trepp. That puts the space at under $200 per square foot rather than over $450 per square foot two years ago.

The sharp decline is on pace with the startling drop in the values of traded office assets so far this year in L.A., which has seen the steepest decline in the nation at 43 percent — from $412 per square foot last year to $237 per square foot.

Brookfield earlier this year defaulted on a $350 million CMBS loan tied to the more than 1.4 million-square-foot Gas Company Tower and a parking garage. There’s also more than $100 million in mezzanine financing tied to the building.

The Gas Company Tower was put into a receivership in April, and, since then, the L.A. Housing Department started negotiations to move into nearly 300,000 square feet at the 32-year-old building, Commercial Observer reported. That’s good news because law firm Sidley Austin, which is the second-largest tenant at the tower, recently signed a lease at a nearby office building for much less space and will soon vacate the Gas Company Tower.

Office availability is at an all-time high in L.A., according to a recent Savills report, with 26.6 percent of the total office market either vacant, soon to be vacant, or available for sublease.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.

Read More Channel, Distress, Finance, Downtown L.A., office, Los Angeles, Downtown Los Angeles, Brookfield, TreppThe Gas Company Tower in Downtown Los Angeles has been perhaps the nation’s most prominent example of office distress and declining demand, and now we have a dollar figure on the toll it’s taken. The value of the 52-story tower at 555 West Fifth Street is down 57 percent — from $632 million in 2021

Robert Khodadadian has long had a simple philosophy about selling real estate.The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.Commercial Observer

How Property Managers Can Make or Break Industrial Tenants’ Bottom Line – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

At the end of 2022, nearly 75 percent of 100 major industrial occupiers surveyed by CBRE cited occupancy cost as the top consideration when selecting an industrial site. While these occupiers continue to expand their footprints across the U.S., high occupancy costs have become a challenge in a tightening market, as highlighted in a report by Newmark from the end of 2022 stating that costs had increased by 42.2 percent over the past five years.

Given the increased demand for industrial space over the last decade nationwide and recent inflationary pressures, the widespread hike in these costs was not unexpected. It does, however, present a unique and seldom-seized opportunity for property managers to serve as a partner to tenants in helping them adjust their business strategies to withstand these increases while also keeping occupancy high across their own portfolios.

What tenants don’t realize is that having the right property managers is critical to navigating and even mitigating these challenges. How does that work, and how can tenants tell good managers from poor ones?

David S. Weissman. Photo: Frank DiGiovanni

First, it is crucial for tenants to explore the reputation and organizational values of the landlord and property managers. Landlords who invest their own money into new construction projects or capital improvement and intend to hold properties for the long term typically align best with a proactive and creative property management team.

While there are only marginal differences in the building quality when comparing Class A assets, the management quality of these buildings can vary vastly between ownership groups. A landlord’s willingness to spend time and resources on preventive maintenance and addressing minor problems — prior to them growing into crises — can be the difference between a tenant turning a steady profit or facing large, unbudgeted expenses and possibly going out of business.

Further, some property managers may choose short-term, ineffective Band-Aid solutions that can end up costing tenants a lot more money in the long run. Another consideration for tenants is whether the landlord requires its property manager to competitively bid out routine services, such as landscaping, snow removal, fire alarm maintenance, etc. This simple requirement ensures that tenants are getting quality service for the best price. Tenants should seek a landlord willing to invest in experienced, attentive and proactive property management firms with strong business acumen.

Second, since industrial tenants are almost always signed to triple-net leases, increased costs are borne exclusively by the occupier and they end up paying for all of the operating costs of the building, while the landlord is responsible for only structural repairs to the asset. Thus, due to the inherent shift of risk and cost, choosing the right landlord (and property manager), rather than simply the right building for their operations, can result in significantly more cost savings over the length of the tenant’s lease.

Last, an expert property manager should act as a partner to the tenant, encouraging transparency, consistently communicating, and collaborating on problems together. This partnership should include providing a range of services to mitigate financial risk for both parties, such as keeping accounting records current, providing updated forecasts, and negotiating payment plans for any necessary renovations at the outset of leasing or when significant capital improvement projects are completed during the lease.

Effective property managers plan site work strategically, deferring capital improvements that aren’t urgent and creating a tailored, thoughtful timeline for construction to ensure minimal interruption to a tenant’s business. A good property manager should also assist in finding the most qualified contractor to complete the job while diving deep into the scope to value engineer the sturdiest and most affordable fix.

Bonus points go to property managers who are available 24 hours a day for emergency response. Even for tenants who do not operate 24/7, problems with the building can occur at any moment. With much of today’s distribution being connected to e-commerce, last-mile and next-day delivery means round-the-clock processing and distribution — so disruptions can cause operational nightmares and extremely high costs.

As occupancy costs are unlikely to return to pre-pandemic levels, tenants should proactively choose landlords and property managers who are sensitive to mitigating disruptions and unexpected expenses. Likewise, property managers must act as partners to tenants and implement solid management plans to maintain industrial spaces. Simply put, to survive in today’s ever-changing market, property managers and tenants must build and maintain symbiotic relationships to tackle the common enemy of rising business costs.

David S. Weissman is managing partner at Greek Development.

Read More Channel, Columnists, Industrial, Leases, More, david s. weissman, National, CBRE, Greek Development, NewmarkAt the end of 2022, nearly 75 percent of 100 major industrial occupiers surveyed by CBRE cited occupancy cost as the top consideration when selecting an industrial site. While these occupiers continue to expand their footprints across the U.S., high occupancy costs have become a challenge in a tightening market, as highlighted in a report

BHI Supplies $50M Line of Credit to Naftali Credit Partners – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Naftali Group’s lending arm has secured a $50 million one-year line of credit to execute ongoing acquisitions of transitional commercial real estate properties, Commercial Observer has learned.

BHI provided the credit facility for Naftali Shaked Partners II (NSP II), a debt fund run by Naftali Credit Partners pursuing mezzanine debt originations, whole loan originations and note purchase opportunities in transitional assets. The strategy is heavily focused on residential and mixed-use properties in large metropolitan markets like New York City and South Florida.

“There is a greater need now more than ever for private debt funds like Naftali Credit Partners, and we look forward to continuing to support borrowers in buying, building and refinancing their projects,” Glenn Grimaldi, CEO of Naftali Credit Partners, said in a statement.

The deal is part of Naftali Credit Partners’ second debt fund rolled out this past spring in an effort to fill a void led by traditional banks who were largely on the sideline due to rising interest rates, The Real Deal previously reported. Naftali provided a $22 million mezzanine loan, according to TRD, as part of an $84 million construction loan led by Deutsche Bank to complete an 11-story project at 64 University Place in Greenwich Village, CO first reported at the time.

Gil Karni, CEO at BHI, said he values its “collaborative client relationships” with debt funds like NSP II while striving to serve as a “market expert in the capital call credit line sector.”

Andrew Coen can be reached at acoen@commercialobserver.com

Read More Channel, Finance, Gil Karni, Glenn Grimaldi, National, BHI, Naftali Credit Partners, Naftali GroupNaftali Group’s lending arm has secured a $50 million one-year line of credit to execute ongoing acquisitions of transitional commercial real estate properties, Commercial Observer has learned. BHI provided the credit facility for Naftali Shaked Partners II (NSP II), a debt fund run by Naftali Credit Partners pursuing mezzanine debt originations, whole loan originations and

JLL Arranges $145M Refi for 997-Key Disney Area Hotel Portfolio – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

JLL has arranged a $145 million loan to refinance a 997-key portfolio of four newly developed, Marriott- and Hilton-branded hotels at the western gateway to Walt Disney World Resort.

JLL represented the borrower, Doradus Partners, and its affiliated management company Yedla Hotels, to secure the floating rate loan through Aareal Capital Corporation.

The portfolio in Winter Garden, FL is comprised of the 223-key Residence Inn by Marriott at 2111 Flagler Ave., the 273-key Fairfield Inn & Suites by Marriott at 631 Flagler Ave., the 272-key Home2 Suites by Hilton at 341 Flagler Ave. and the 229-key Homewood Suites by Hilton at 411 Flagler Ave.

The hotels opened between January 2021 and January 2022 immediately outside the western gate to the Walt Disney World Resort in the newly developed mixed-use Flamingo Crossings Town Center.

The JLL team was led by Senior Managing Director Gregg Shapiro and Senior Vice President Barnett Wu.

The post JLL Arranges $145M Refi for 997-Key Disney Area Hotel Portfolio appeared first on Connect CRE.

JLL has arranged a $145 million loan to refinance a 997-key portfolio of four newly developed, Marriott- and Hilton-branded hotels at the western gateway to Walt Disney World Resort. JLL represented the borrower, Doradus Partners, and its affiliated management company Yedla Hotels, to secure the floating rate loan through Aareal Capital Corporation. The portfolio in …
The post JLL Arranges $145M Refi for 997-Key Disney Area Hotel Portfolio appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Plans for Former EDS Plano HQ Taking Shape – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Ross Perot’s EDS was one of the leaders in the early days of the tech boom. Founded in 1962 it was eventually bought by Hewlett-Packard in 2008. Their Plano headquarters opened in 1992 and has not been occupied since 2018. Since then, NexPoint, the new owner has been exploring opportunities to redevelop the 1.6 million square foot office complex.

Earlier this year, NexPoint unveiled plans to convert the vacant office buildings into a $3 billion life sciences campus called the Texas Research Quarters.

The Dallas Business Journal reports the main campus will feature a mix of laboratory, office and therapeutic production space, a community park and educational facilities. Recently, NexPoint added news that the project will also add a small hotel to the main 91-acre site with conference space and limited high-quality mid-rise residential primarily designed for employees working and living in quarters.

The post Plans for Former EDS Plano HQ Taking Shape appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

FCP Acquires 404-Unit Jacksonville Multifamily for $33.25M – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

FCP has acquired Waters Edge Apartments in Jacksonville for $33.25 million through a joint venture with Springer Capital. The 404-unit community at 800 Broward Road was built in 1974. It consists of one-, two-, and three-bedroom units and is the second FCP acquisition in two weeks in the Jacksonville market. Greg Rainey and Paul Vetter of Berkadia facilitated the transaction.

“We are pleased to be building on our existing relationship with Springer Capital,” said FCP’s Bruce Gago, who heads the firm’s Florida office. “FCP is excited to expand its Jacksonville footprint with Waters Edge. We intend to substantially enhance the property through significant capital investments, including curing existing deferred maintenance and enhancing amenities and the resident experience.”

The venture has retained Cushman & Wakefield to manage Waters Edge, which offers amenities including two pools, a playground, sand volleyball court and select units with patios and balconies, river views and fireplaces.

The post FCP Acquires 404-Unit Jacksonville Multifamily for $33.25M appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Austin Battery Storage Company Obtains Loan for Two Facilities – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

The Austin Business Journal reports the projects are expected to have capacity totaling 160 megawatts/320 megawatt-hours. That adds to the company’s 655 megawatt-hours of operating projects already completed, along with 740 megawatt-hours in construction and more than 11,000 megawatts of new projects in development nationwide. First Citizens Bank, BankUnited NA and Siemens Financial Services were joint lead arrangers.

The Texas power system known as ERCOT, has experienced reliability issues. “Across the country, energy storage is increasingly important for strengthening grid reliability and meeting the growing demand for firm power arising from the energy transition,” stated Jupiter’s Andy Bowman.

Jupiter was founded in 2017 and last year was acquired by BlackRock Alternatives.

The post Austin Battery Storage Company Obtains Loan for Two Facilities appeared first on Connect CRE.

Austin-based energy storage company Jupiter Power LLC has locked in a $70.4 million construction and term loan financing deal for two standalone battery energy storage projects in Texas. The company did not disclose the location of the two facilities. The Austin Business Journal reports the projects are expected to have capacity totaling 160 megawatts/320 megawatt-hours. …
The post Austin Battery Storage Company Obtains Loan for Two Facilities appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Paper-Recycler Opens $253M Cedar Hill Plant – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Pratt Industries, a Georgia-based provider of recycled paper and packaging products, has opened a $253 million manufacturing facility in Cedar Hill, a southern suburb of Dallas. About 375 people will eventually work at the 1.1 million-square-foot facility, Cedar Hill Corrugating & Innovation Center. Pratt, who now has 5 Texas factories, has invested $550 million in operations in Texas.

The new facility will manufacture retail specialty products, corrugated boxes, and in-store displays. In an effort to improve the workforce pipeline in the area, Pratt Industries will sponsor a training/development program in collaboration with Cedar Hill and the school district.

Anthony Pratt added, “Recycling is an important weapon against climate change because as things decay in landfill they emit methane which is 84 times more potent as a greenhouse gas than carbon dioxide. So recycling is an important weapon against climate change.” The Georgia-based company is America’s fifth largest corrugated packaging company and the world’s largest, privately-held 100% recycled paper and packaging company.

The post Paper-Recycler Opens $253M Cedar Hill Plant appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Why the Industrial Owner-User Is Staging a Comeback in New York City – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

After years of being priced out of the industrial market by investors looking to allocate more of their portfolios in warehouse and logistics properties, owner-users are capitalizing on the current market conditions and reclaiming some of their industrial real estate footprint in New York City.

With many investors sidelined due to higher interest rates or fundraising challenges, owner-users have been increasingly active in the industrial market, bidding on opportunities that they might have missed in the last cycle.

During the first half of 2023, owner-users snatched up an impressive 60 percent of New York City’s industrial sales transactions. Comparatively, over the same period in 2022, owner-user purchases accounted for 23 percent of the total number of industrial sales transactions, a segment more in sync with historical trends.

Current market conditions have set up a perfect storm for the resurgence of the owner-user. As we’re in the late stages of a rising-rate environment, investors have become more comfortable with their new underwriting assumptions. However, seller expectations, which are typically a lagging indicator after any market event, still seem to be recalibrating, causing a larger-than-usual bid-ask gap between sellers and investors.

While most investors are still struggling to bridge that gap — industrial properties sold for 86 percent of their asking prices, on average, in the first half of 2023 — owner-users that have been stockpiling cash from COVID-related funding programs have been aggressively bidding on opportunities. The owner-user sector is utilizing a combination of creative financing alternatives, such as non-bank Small Business Association loans, seller financing, funding from parent companies, cash, and various economic development agency programs to better compete with other capital.

As more owner-users emerge as credible buyers, purchasing power also seems to be shifting in their favor. Whereas the market typically assumes owner-user deals will cost a 5 percent to 15 percent premium, owner-user building purchases actually averaged 2 percent lower than buildings purchased by investors during the first half of the year.

Daniel Tropp.

Furthermore, the typical industrial owner-user profile has evolved, perhaps reflecting much broader macroeconomic trends. Over the past six months, owner-users that purchased New York City industrial real estate included transport companies, aviation service providers, contractors, subcontractors, ambulance fleet operators, building supply companies and automotive retailers, to name a few.

There was also a resurgence in heavy industrial uses — namely, concrete contractors, fuel storage or renewable energy providers, and recyclers. Congress’s 2021 infrastructure deal may be largely responsible for this breakdown. With significant federal spending going toward building roads and bridges, upgrading airports and railways, and investments in cleaner energy, it would make sense that contractors, material suppliers, trash management, and energy companies are expanding their capabilities and, in turn, their real estate holdings.

Notably, certain sectors of the market that had been active in past years, such as film studios and online retailers, did not notch any major purchases in the first half of 2023. That might be due to the e-commerce industry paring its real estate footprint and laying off employees due to a shift in consumer demand from goods to services, while streaming services and movie studios have grappled with their own struggles ranging from labor strikes to slumping ad revenues. These industries might be rethinking major capital investments like real estate projects at the moment.

The increased appetite from owner-users is likely a healthy indicator for the industry as the overall market for industrial properties in New York still pulled back from the first half of 2022 to the first half of 2023. While the number of transactions was unchanged, total dollar volume dropped 49 percent annually in the first half of this year, from $1.399 billion to $709 million. Prices of industrial buildings remained relatively stable over that same period, dropping a slight 2.6 percent, from $423 per square foot to $412 per foot.

In a sign of another emerging trend, demand for industrial outdoor storage (IOS) sites spiked from the second half of 2022, when we began closely tracking these transactions. From second half 2022 to first half 2023, the number of New York City IOS transactions doubled, dollar volume of these transactions increased 150 percent, and the amount of land square-footage sold nearly doubled as well. A majority of these IOS sites were purchased, not surprisingly, by owner-users.

Looking ahead, if interest rates continue their slow uptick and investor sentiment remains concerned over a possible looming recession, owner-users should be able to capitalize on market conditions and extend this run for a while longer.

Daniel Tropp is the founder and president of AEBOV Industrial Real Estate Brokerage.

Read More Acquisition, Channel, Columnists, Finance, Industrial, Leases, More, Daniel Tropp, industrial outdoor storage, New York City, AEBOV Industrial Real Estate BrokerageAfter years of being priced out of the industrial market by investors looking to allocate more of their portfolios in warehouse and logistics properties, owner-users are capitalizing on the current market conditions and reclaiming some of their industrial real estate footprint in New York City. With many investors sidelined due to higher interest rates or

Port Town Future Site For $77M, 1.2M SF Distribution Center – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Provident Realty Advisors is on track to deliver Port 99, a 1.28 million square foot, class-A distribution center located in Baytown, by Q2 2024. Port 99 features two buildings, cross-dock and front-load configured buildings, 271 dock-high doors, 6 grade-level doors, and expansive trailer and auto parking spaces. One of the buildings will be over 1 million square feet. The other is 255,000 square feet. Ware Malcomb is the designer.

The Port of Houston recorded its busiest year in 2022, as the economy recovered from the pandemic and international shippers sought an alternative to West Coast port congestion. Growth was also consistent at the Bayport and Barbours Cut container terminals, which sit approximately 25 minutes south of Port 99.

Provident’s Leon Backes added, “The Texas Triangle is one of the country’s fastest growing areas, connecting Houston, Austin, Dallas-Fort Worth and San Antonio. Beyond that, Texas’ Ports serve over 110 million Americans.”

Lee & Associates Justin Tunnell is leading the leasing of the development.

The post Port Town Future Site For $77M, 1.2M SF Distribution Center appeared first on Connect CRE.

Provident Realty Advisors is on track to deliver Port 99, a 1.28 million square foot, class-A distribution center located in Baytown, by Q2 2024. Port 99 features two buildings, cross-dock and front-load configured buildings, 271 dock-high doors, 6 grade-level doors, and expansive trailer and auto parking spaces. One of the buildings will be over 1 …
The post Port Town Future Site For $77M, 1.2M SF Distribution Center appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Berkadia Arranges $47M Apartment Construction Loan – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

Berkadia has arranged senior construction financing for The One at Hope Mills, a 360-unit garden-style multifamily development in Fayetteville, NC.

Senior Managing Director Mitch Sinberg and Managing Directors Brad Williamson, Scott Wadler and Matt Robbins of Berkadia South Florida secured acquisition financing on behalf of the sponsor, One Real Estate Investment.

City National Bank of Florida with Abanca provided the $47 million floating rate construction loan for the project. Construction will begin in the third quarter of this year completion expected in the second half of 2024.

Located at 3680 Elk Road, The One at Hope Mills will consist of 11 three-story buildings and a clubhouse on 46 acres six miles southwest of downtown Fayetteville. The property will feature a mix of one-, two-, and three-bedroom floor plans with best-in-class amenities.

Community amenities will include a resort-style pool, outdoor cabana, game room with billiards and shuffleboard and state-of-the-art fitness center.

The post Berkadia Arranges $47M Apartment Construction Loan appeared first on Connect CRE.

Berkadia has arranged senior construction financing for The One at Hope Mills, a 360-unit garden-style multifamily development in Fayetteville, NC. Senior Managing Director Mitch Sinberg and Managing Directors Brad Williamson, Scott Wadler and Matt Robbins of Berkadia South Florida secured acquisition financing on behalf of the sponsor, One Real Estate Investment. City National Bank of …
The post Berkadia Arranges $47M Apartment Construction Loan appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Seven Hills Realty Trust Closes $27.5M Loan to Acquire SC Industrial – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

An initial advance of $24.3 million was funded at closing with future advances of up to $3.2 million available for capital expenditures. The loan is structured with a two-year initial term with a one-year extension option, subject to the borrower meeting certain requirements.

SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by Medalist Capital, which advised the sponsor Lightstone Group, a repeat borrower of SEVN.

“The closing of this $27.5 million loan reflects the continued diversification of SEVN’s investment portfolio and exemplifies our focus on lending on high quality real estate supported by well-capitalized sponsors,” said SEVN President and Chief Investment Officer Tom Lorenzini.

The post Seven Hills Realty Trust Closes $27.5M Loan to Acquire SC Industrial appeared first on Connect CRE.

Seven Hills Realty Trust has closed a $27.5 million first mortgage floating rate bridge loan for the acquisition of Woodfield Commerce Center. The 320,000-square-foot industrial warehouse is located at 200 International Boulevard in Fountain Inn, SC. An initial advance of $24.3 million was funded at closing with future advances of up to $3.2 million available …
The post Seven Hills Realty Trust Closes $27.5M Loan to Acquire SC Industrial appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Avison Young Appoints Experienced Broker to Managing Director – Robert Khodadadian

Robert Khodadadian Jul 19, 2023

“Brad has a solid reputation in the Atlanta region and his seasoned market knowledge make him a natural for this leadership role,” said Harry Klaff, Avison Young Principal and U.S. President. “With the energy and passion to grow our brokerage business and consulting services in Atlanta, Brad will continue to broaden and strengthen our multi-market services.”

Sinclair joined Avison Young in 2017 through the acquisition of Hotel Assets Group. He has nearly 20 years of experience in commercial real estate. He began his career as a founding partner of HAG, completing more than $6 billion in hotel real estate transactions nationwide.

The post Avison Young Appoints Experienced Broker to Managing Director appeared first on Connect CRE.

Avison Young has named Brad Sinclair as Managing Director of the Atlanta office. As a market leader, Sinclair will continue to grow Avison Young’s client base, manage broker operations and focus on recruiting top talent to expand market share across multiple service lines in the greater Atlanta market. “Brad has a solid reputation in the …
The post Avison Young Appoints Experienced Broker to Managing Director appeared first on Connect CRE.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

SunCap to Expand Office Portion of Phoenix Campus – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Development, News, Office, Phoenix, West, First National Bank of Pennsylvania, GID, Graycor Construction Company, Lee & Associates, SunCap Property Group

Rendering of Gilbert Spectrum Building 3. Image courtesy of SunCap Property Group

SunCap Property Group has announced the next office expansion of its 64-acre Gilbert Spectrum campus in Gilbert, Ariz. The 119,222-square-foot, Class A building is expected to break ground this month, with delivery slated for the fourth quarter of 2024.

Dubbed Building 3, the office project landed a $37.7 million construction loan in June, originated by First National Bank of Pennsylvania, CommercialEdge data shows. Graycor Construction Co. will serve as general contractor, Blamer Architectural Group is the architect in charge, while Lee & Associates is the appointed leasing broker.

Developed in a joint venture with GID, the business park currently comprises six buildings, totaling 625,828 square feet of office and industrial space, said SunCap Senior Vice President Mike Orr, in prepared statements. Upon full build-out, Gilbert Spectrum will feature up to 850,000 square feet of office, flex industrial and tech space.

Current tenants at the campus include Northrop Grumman, which fully occupies the 120,294-square-foot Building 5 and the 100,000-square-foot Building 9, along with S&M Moving Systems, Varsity Brands and Barner Industries.

The newest office building at Gilbert Spectrum

To be situated on an 10-acre lot between the southwest corner of Elliot Road and South McQueen Road, Building 3 will feature LED lighting, an outdoor amenity area and a parking ratio of 5 spaces per 1,000 square feet. Leasing at the property will be led by Lee & Associates’ Associate Blake Peters and Principal Chris McClurg.

Earlier this year, the developers of Gilbert Spectrum announced that three more warehouses have been completed, adding some 310,000 square feet of space to the park.

Last month, Sunbelt Investment Holdings Inc. and Graycor broke ground on a 4-million-square-foot industrial park in Goodyear, Ariz. The development is part of a larger, 1,600-acre business park, slated to encompass 20 million square feet of office, industrial and retail space.

The post SunCap to Expand Office Portion of Phoenix Campus appeared first on Commercial Property Executive.

The development will total 850,000 square feet of office, flex industrial and tech space.
The post SunCap to Expand Office Portion of Phoenix Campus appeared first on Commercial Property Executive. Read More Commercial Property Executive

Jack Resnick & Sons Inks Lease Renewals in Manhattan – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Brokerage, New York, News, Northeast, Office, CBRE, Jack Resnick & Sons, Savills

One Seaport Plaza. Image courtesy of Jack Resnick & Sons

Jack Resnick & Sons has signed two office lease renewals, totaling 108,086 square feet, at One Seaport Plaza, a 1.1 million-square-foot tower in downtown Manhattan.

Social justice law firm The Legal Aid Society will continue its tenancy, that started two decades ago, by occupying 71,091 square feet of space on the building’s third and sixth floors for the next five years.

The Center for Reproductive Rights, a global human rights organization that has been present at the office property for the past 10 years, has signed a 15-year renewal and will continue to use its 35,995 square feet of space, occupying an entire floor.

The building’s current tenants also include companies such as WeWork, Howard Hughes, Cantor Fitzgerald Relief Fund, Epsilon Data Management, Allied World Insurance and New York County Health Services Review Organization, among others, according to CommercialEdge.

CBRE’s Vice Chairmen Craig Reicher and Christopher Mansfield negotiated on behalf of The Legal Aid Society, while the Center for Reproductive Rights was represented by Savills’ team led by Vice Chairmen Daniel Horowitz and Jeffrey Peck, Vice Chairman, Director & Co-Branch Manager Ira Schuman and Senior Managing Director Stephan Steiner. The landlord was represented in-house by the company’s Managing Director Adam Rappaport and Executive Managing Director Brett Greenberg.

Built in 1984, the Class A high-rise features 21 passenger elevators, ground-floor retail space, 36,985-square-foot floorplates and 130 parking spots, CommercialEdge data shows. Common-area amenities include a fully upgraded atrium lobby, bicycle rooms, showers and locker rooms, a tenant messenger center and a full-service garage with direct lobby access. Additionally, the office asset has LEED, WELL Health Safety, Wired Platinum and EPA’s Energy Star certifications.

Recent Manhattan deals

Situated within the Seaport District and the Fulton Street corridor, the office tower is close to multiple subway, bus and train stations, as well as East River Esplanade. The property is within 1.5 miles from Lower Manhattan, 4.6 miles from Union Square, 12 miles from Washington Heights and 17 miles from John F. Kennedy International Airport.

Earlier this month, The Feil Organization inked a long-term lease for 19,326 square feet of office space at 261 Fifth Ave. Reinsurance company Lockton Re signed the 10-year deal, relocating its headquarters at the property’s 10th floor. In June, Empire State Realty Trust secured two other notable leases: Skanska inked a full-floor expansion and Aprio relocated its office to the Empire State Building.

The post Jack Resnick & Sons Inks Lease Renewals in Manhattan appeared first on Commercial Property Executive.

CBRE and Savills represented the tenants in two transactions totaling more than 100,000 square feet.
The post Jack Resnick & Sons Inks Lease Renewals in Manhattan appeared first on Commercial Property Executive. Read More Commercial Property Executive

Distribution Realty to Build Industrial Park Near Nashville – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Development, Industrial, Nashville – Knoxville, News, Southeast, Distribution Realty Group

Middle Tennessee Industrial Center. Image courtesy of Distribution Realty Group

Distribution Realty Group is one step closer to starting construction on Middle Tennessee Industrial Center, a 700,000-square-foot project in Murfreesboro, Tenn. The firm has purchased the 87.7-acre development site from Mary K. Murfree Family Partnership for $8.5 million, according to Nashville Business Journal. Groundbreaking is set for early 2024.

To come online in two phases, the campus was designed to include four read-load buildings with 36-foot clear heights, LED lighting and office components. The property will cater to warehouse and logistics tenants.

Middle Tennessee Industrial Center will take shape along South Rutherford Boulevard near Interstate 24, some 36 miles southeast of downtown Nashville. Several major companies, such as Lineage Logistics, FedEx, Americold Logistics and Amazon, are also in the area.

Current industrial developments in Nashville

Since its founding in 2013, DRG has acquired and developed more than 10.8 million square feet of industrial and distribution facilities in several markets across the U.S., in states such as Tennessee, Indiana, Illinois and Mississippi. The firm currently has another Nashville-area project in the works; in partnership with PCCP LLC, the company is developing Beechcroft Industrial Park in Spring Hill, Tenn., with completion expected this November.

As of May, Nashville had 3.5 million square feet of industrial space under construction, representing 1.7 percent of stock, according to a CommercialEdge report. One of the ongoing developments, a speculative two-warehouse industrial project totaling more than 2 million square feet in Lebanon, Tenn., will be the largest of its kind in Nashville’s I-840 corridor when complete.

The post Distribution Realty to Build Industrial Park Near Nashville appeared first on Commercial Property Executive.

This 700,000-square-foot project will break ground in early 2024.
The post Distribution Realty to Build Industrial Park Near Nashville appeared first on Commercial Property Executive. Read More Commercial Property Executive

Westcore Pays $93M for Phoenix-Area Campus – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Finance, Industrial, Investment, News, Phoenix, West, CrossHarbor Capital Partners, Cushman & Wakefield, Ryan Cos., Westcore Properties

Hatcher Industrial Park. Image courtesy of Cushman & Wakefield

Westcore Properties has acquired Hatcher Industrial Park, a 906,125-square-foot campus in Waddell, Ariz. Ryan Cos. sold the asset for $92.7 million, public records show. The buyer financed the purchase with a $73.3 million loan from CrossHarbor Capital Partners, in a transaction arranged by Cushman & Wakefield.

Westcore co-developed the property with Ryan Cos. in 2022. The partnership secured a $61.6 million construction loan from Western Alliance Bank for the speculative project, previously known as Ryan at Woolf Logistics. The two-building complex came online earlier this month with both facilities still vacant.

Situated on approximately 54 acres at 15101 and 15151 W. Hatcher Road, the industrial campus features 40-foot clear heights, six grade-level doors and 174 dock high doors. JLL is handling leasing at the property, according to CommercialEdge data.

Located within the 1,340-acre Woolf Logistics Center, Hatcher Industrial Park is in the Loop 303 Corridor of the Phoenix metropolitan area. The Southwest Valley site is adjacent to the BNSF Railroad and provides access to all major West Coast distribution hubs.

Cushman & Wakefield‘s Rob Rubano, Brian Share, Max Schafer and Becca Tse represented the borrower in the financing deal. In addition, Will Strong, Kirk Kuller, Micki Strain and Molly Hunt provided local market advisory.

Where the industrial sector blooms

Despite an overall slowdown in industrial development, the Phoenix metro outperforms all other markets in the sector. The Valley had approximately 58.4 million square feet of space under construction as of May, according to a CommercialEdge report which noted that some 13.5 million square feet of industrial projects broke ground in Phoenix just this year.

One of the larger developments kicked off last month, when Sunbelt Investment Holdings Inc. and Graycor Construction Co. started construction on a 4 million-square-foot industrial park in Goodyear, Ariz. At full build-out, the campus will include up to 16 buildings ranging from 32,400 to 1.3 million square feet.

The post Westcore Pays $93M for Phoenix-Area Campus appeared first on Commercial Property Executive.

CrossHarbor Capital Partners provided more than $73 million in acquisition financing.
The post Westcore Pays $93M for Phoenix-Area Campus appeared first on Commercial Property Executive. Read More Commercial Property Executive

Construction Forecasters See Record Growth in 2023 – What is a Ground Lease?

Robert Khodadadian Jul 19, 2023

Development, Featured, Industrial, National, News, Associated Builders and Contractors, Dodge Data & Analytics, Moody’s Analytics, The American Institute of Architects, Wells Fargo Securities

Kermit Baker, Chief Economist, American Institute of Architects. Image courtesy of American Institute of Architects

Nonresidential construction spending is expected to increase by 20 percent this year—a rate not seen since before the Great Recession—with slower gains predicted for 2024, according to a new forecast from the American Institute of Architects.

Industrial construction is leading the gains this year, with spending expected to be up 55.1 percent over last year. While that sector is still projected to be the leader next year, the economic forecasters are expecting the increase to be about 5.4 percent in 2024.

Other gains this year are expected to be seen in the total commercial sector, up 11.2 percent; office, up 8 percent; retail and other commercial, up 10.8 percent and hotel spending up 24 percent.

Other than public safety, which is expected to increase construction spending by nearly 4 percent this year, and religious projects, expected to come in at an 8.4 percent increase, all other sectors have double-digit projections for 2023. The total institutional spending increase is expected to be 10 percent, with health spending predicted to be up 10.4 percent this year, education spending up 10.5 percent and amusement and recreation up by 10.2 percent.

The report authored by AIA Chief Economist Kermit Baker notes the rate of construction spending is expected to moderate during the second half of this year. While supply chain issues have eased and the pricing of many construction materials and products has improved, other economic headwinds are expected to affect projects. Baker cited elevated interest rates, more restrictive lending by banks, nervousness over the direction of the economy and construction labor constraints among the impacts.

Going forward, the numbers for 2024 drop dramatically, according to the panel’s forecast. The panel includes economic forecasters from Dodge Construction Network, S&P Global Market Intelligence, Moody’s Analytics, Associated Builders and Contractors and Wells Fargo Securities, among others.

AIA Consensus Construction Forecast, July 2023. Chart courtesy of AIA

Overall spending on nonresidential buildings is predicted to be just 2 percent in 2024, with a projected modest decline of 1.7 percent in the commercial sector, a 3.6 percent increase in spending on institutional facilities and only 5.4 percent for the industrial sector.

The report noted that while spending on nonresidential buildings increased by more than 10 percent over last year, once inflation is factored in, the real increases were much lower.

“This means that while companies are investing heavily in new buildings and renovations this year, their investments may not translate into comparable economic growth or employment opportunities,” the report stated.

Even though overall inflation has dropped dramatically over the past year, from over 9 percent compared to year-ago levels in mid-2022 to around 3 to 4 percent at present, the Federal Reserve is still fighting inflation and further declines may be more difficult to realize, according to the report. Most economists still expect the Fed to raise its benchmark overnight interest rate by 25 basis points to the 5.25 percent to 5.50 percent range when it meets next week.

Hot sectors

This year’s strong growth in spending in the industrial sector is largely attributed to more manufacturing facilities being built to reshore production after the supply chain nightmares during the pandemic, according to the report. Pharmaceuticals make up a sizeable portion of the production increase, but the plastic industry has also seen increases in domestic manufacturing. Distribution facilities are also part of the growth, though the experts expect spending on warehouses and distribution assets to moderate as e-commerce activity has slowed from its pandemic peaks. The report notes spending will be focused more on automating existing properties rather than building new facilities.

Another category seeing increased spending this year and into next year is health care. Utilization increased during the pandemic but demographics are also playing an important role as the need for more health-care facilities for an aging baby boom generation continues to grow. Health-care construction spending is expected to be up 10 percent this year and an additional 3 percent in 2024.

Education is also seeing double-digit construction spending increases this year. The report notes college and university starts are up 14 percent this year and starts for preschool and elementary facilities increased 9 percent. While the pace is expected to slow over the rest of this year, the panel is forecasting an overall 10.5 percent increase for 2023 and another 4.3 percent increase in 2024 on education construction.

The post Construction Forecasters See Record Growth in 2023 appeared first on Commercial Property Executive.

The AIA consensus index expects nonresidential spending to increase by a rate not seen since before the Great Recession.
The post Construction Forecasters See Record Growth in 2023 appeared first on Commercial Property Executive. Read More Commercial Property Executive

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

In the weeks after his May impeachment, Paxton raised $1.7 million, a sum he calls a personal record, according to a campaign finance disclosure.

In May, Paxton was impeached by the Texas House of Representatives, charged with bribery and abuse of power on behalf of Austin real estate investor Nate Paul, among other misdeeds.

While the most recent report covers the year through July 15, Texas legislators cannot raise money when they are in session. That means Paxton, whose impeachment came at the tail end of the legislature’s regular biennial session, officially raised the money within the handful of weeks since members of his own party moved against him.

Paxton’s single largest real estate donor was Dallas magnate Monty Bennett, who contributed $100,000 in late June. The Ashford Hospitality Trust executive has given vast sums to Paxton before, including $50,000 donations in 2022 and 2016.

Only three individuals gave more than Bennett. Gary Heavin, founder of gym chain Curves, donated $500,000, making him Paxton’s top individual supporter. The second and third biggest benefactors were oil and gas executives.

Bobby Bowling, co-owner of Tropicana Properties, an El Paso-based homebuilder, gave Paxton $10,000. While Bowling is a prolific donor to members of both parties, his June 30 donation appears to be his first to the attorney general, according to records from campaign finance database OpenSecrets.

Some prominent real estate donors in past cycles skipped this round of fundraising. Jerry Jones, who gave Paxton $200,000 last year, does not appear in the latest filing. Neither does H. Ross Perot of Hillwood, who gave the attorney general $25,000 in each of the past two years.

Of course, Paxton faced a tough reelection fight in 2022, which helps explain the timing of Jones’ and Perot’s donations. Paxton won’t appear on a ballot again until 2026, so if they are just election-season donors, it makes sense they skipped this year. But Paxton has been fundraising heavily off of the impeachment proceedings, and no doubt sought to make a show of force with the most recent report.

Texas

Ken and Angela Paxton’s real estate buying spree under investigation

As some bigwigs stepped off the field, a handful of smaller real estate professionals made first-time donations. Jay Hester, the Fort Worth-based owner of Hester Investments who listed his occupation as “Realtor” on his donation, gave $5,000 on June 24. James Mabrey, a Dallas developer specializing in large tract assemblage and lot entitlement, gave $2,900 to Paxton’s campaign.

Scott Rohrman, the CEO of 42 Real Estate, and whom D Magazine called “the man who bought Deep Ellum,” pitched in $2,500. He has donated that much to Paxton two other times in the past.

The post Jones, Perot avoid Paxton after impeachment appeared first on The Real Deal.

As Texas Attorney General Ken Paxton faces the most serious political threat of his career due to bombshell allegations about his relationship with real estate investor Nate Paul, some of the biggest names in the industry skipped his most recent round of fundraising. In the weeks after his May impeachment, Paxton raised $1.7 million, a
The post Jones, Perot avoid Paxton after impeachment appeared first on The Real Deal. Uncategorized, Development, impeachment, Ken Paxton, Nate Paul, Politics The Real Deal

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

Industrial giant Prologis posted record profits and revenue in the second quarter, and the company expects even better prospects in the future.

The San Francisco-based REIT reported second-quarter revenue of $2.45 billion, or nearly double the $1.25 billion from the same quarter a year ago. Net earnings came to almost $1.22 billion ($1.31 per share), compared to $610 million (82 cents) in the second quarter of 2022. Core funds from operations, a standard metric for real estate investment trusts, totaled $1.74 billion, or $1.83 per share.

Prologis is the world’s largest industrial property investor, and owns or has stakes in properties and development projects with approximately 1.2 billion square feet in 19 countries. The average occupancy for the company’s owned and operated portfolio stood at 97.5 percent in the second quarter.

The increase in revenue and net earnings stems largely from acquisitions. Last year, Prologis acquired Indianapolis-based rival Duke Realty in an all-stock deal for $26 billion. The company absorbed 153 million square feet of industrial space in 19 markets when the deal closed in the fourth quarter.

During the second quarter, the company issued $7 billion in new debt, a central element in its strategy of growth by acquisition. The debt carried an average interest rate of 4.9 percent and a maturity horizon of 8.4 years, according to the company.

“Our balance sheet has given us unparalleled access to debt markets around the globe, providing us with the ability to fund our ongoing development platform, as well as make accretive investments in a market where most players are stretched,” Timothy Arndt, CFO at Prologis, said in a statement.

Looking to the future, core funds from operations are expected to be $5.56 to $5.60 a share for the full year, up from prior projections of $5.42 to $5.50 a share. Prologis expects same-property net operating income to rise 9.5 to 10 percent, also up from prior projections. Net earnings for shareholders is forecast to rise 5.5 percent, according to the company.

National

Prologis pays $3.1B for Blackstone industrial portfolio

New York

$26B Prologis-Duke deal ends cold war

Austin

Prologis, Titan lead the way as billions could come to Hutto

The industrial powerhouse posted strong earnings in spite of a cooling national industrial market. The vacancy rate stands at 4.1 percent, which is the first time it has gone above 4 percent in two years, according to a second-quarter report by brokerage Cushman & Wakefield. Net absorption registered at 45 million square feet, down from 71 million in the previous quarter and down from 126 million square feet a year prior.

Prologis continues to acquire large assets from its competitors. Last month it struck a multi-billion dollar deal with the Blackstone Group to buy a portfolio of nearly 14 million square feet of industrial space from Stephen Schwarzman’s firm for $3.1 billion. The portfolio consists of about 70 properties in major markets, including Dallas, South Florida and the New York City metro area.

The post Prologis doubles revenue and earnings in second quarter appeared first on The Real Deal.

Industrial giant Prologis posted record profits and revenue in the second quarter, and the company expects even better prospects in the future. The San Francisco-based REIT reported second-quarter revenue of $2.45 billion, or nearly double the $1.25 billion from the same quarter a year ago. Net earnings came to almost $1.22 billion ($1.31 per share),
The post Prologis doubles revenue and earnings in second quarter appeared first on The Real Deal. Uncategorized, Blackstone, Duke Realty, Hamid Moghadam, Industrial, Prologis, San Francisco The Real Deal

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

Former watch retailers Shlomi and Lior Ben-Shmuel sold a waterfront teardown mansion on Miami Beach’s Allison Island for $17.6 million.

Records show the brothers sold the house at 6640 Allison Road to a trust named for the address, with Philadelphia-based estate attorney Lester E. Lipschutz signing on behalf of the buyer. The true buyer is unknown.

Shlomi Ben-Shmuel’s wife, Cristina Ben-Shmuel of Rusty Stein & Company, had the listing. Jonathan Bigelman of One Sotheby’s International Realty brought the buyer. Bigelman declined to comment on the identity of the buyer.

The Ben-Shmuel brothers founded Hollywood-based Swiss Watch International, which was acquired by Santa Monica, California-based Clearlake Capital Group in 2012. Swiss Watch shut down in 2017, according to the South Florida Business Journal.

The brothers bought the Allison Road mansion for $14.5 million in 2021, with plans to renovate the property, which they ultimately did not do.

Built in 1992, the two-story home spans 8,900 square feet, with eight bedrooms, eight bathrooms and one half-bathroom, records show. The property includes 170 feet of water frontage, a dock and a pool. It was advertised as an opportunity to “build your dream house” or renovate the existing mansion.

Bigelman confirmed the buyers intend to tear down the mansion and build a new home on the property, and that they have already contacted architects for the project.

“There’s not going to be a budget,” he said of forthcoming construction.

Bigelman said the buyers, like many South Florida luxury real estate shoppers, spent a year looking for a turnkey home. New construction dominates South Florida’s luxury market, with buyers wanting to move in as soon as possible and avoid the headache of managing construction of a new home.

“If we’re not going to find anything turnkey, we might as well find an awesome property and make it our own,” Bigelman said of their decision to pivot. “It’s a lot to take on. Most people don’t want to take on architects, contractors, permits –– all that jazz.”

Allison Island, a gated waterfront enclave within Miami Beach, has attracted some big name buyers in recent years who arrived with the pandemic-induced influx of wealthy residents to the region.

In February, rapper Lil Wayne sold his waterfront Allison Island home for $22.6 million. The mansion was listed for $28 million, up from the $17 million the music star paid for it in 2018. Another rapper, Grammy-winner Future bought a waterfront house on Allison Island for $16.3 million in December. That same month, a hedge funder’s wife sold her waterfront home for $13.3 million.

The post Tick tock: Former watch retailers sell Allison Island teardown for $18M appeared first on The Real Deal.

Former watch retailers Shlomi and Lior Ben-Shmuel sold a waterfront teardown mansion on Miami Beach’s Allison Island for $17.6 million. Records show the brothers sold the house at 6640 Allison Road to a trust named for the address, with Philadelphia-based estate attorney Lester E. Lipschutz signing on behalf of the buyer. The true buyer is
The post Tick tock: Former watch retailers sell Allison Island teardown for $18M appeared first on The Real Deal. Uncategorized, Allison Island, Home Sales, Luxury Real Estate, Miami Beach, Miami-Dade County, Waterfront Properties The Real Deal

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

A golf club in New Jersey’s Monmouth County could soon be welcoming seniors to the course — just not the senior golf tour.

A developer proposed turning the 94-year-old golf course at 54 Monmouth Road in Eatontown into a senior housing community with commercial buildings, NJ.com reported. Mayor Anthony Talerico Jr. said at a meeting earlier this month he was in talks with an attorney for the developer.

It’s not clear who owns the golf course and would be the developer for the project. The mayor did not immediately return a request for comment from The Real Deal, which could not independently determine ownership of the property.

The plan calls for up to 145 single-family homes for seniors, as well as amenities including a pool and a clubhouse. Part of the site, which runs along Route 36, would also be used to create a commercial area.

The nearly century-old golf course was designed by Warren Tillinghast and opened on the site of an old apple orchard in 1929. It spans 136 acres.

An attempt to redevelop the golf course unfolded a decade ago, when an affiliate of National Realty and Development Corporation proposed a 175-townhome, 450,000-square-foot-commercial development. A lawsuit challenged the borough’s rejection of an amendment that would’ve allowed for the commercial aspect of the development. The lawsuit was ultimately tossed and no development took place.

It’s unclear if NRDC would be involved in the discussed development this time, but the country club is not listed on the company’s website as part of its portfolio. The firm did not immediately respond to a request for comment from The Real Deal.

The site is already zoned to allow for single-family development. A variance would be needed to permit the proposed commercial development on Route 36.

The golf course and country club remain open for the time being. General manager Robert Sheerin did not immediately respond to a request for comment from TRD.

— Holden Walter-Warner

Chicago

Jouzapaitis, Menas bringing new homes to top-tier Kildeer golf course

San Francisco

Former Silicon Valley golf course prime for redevelopment asks $125M

South Florida

Glenn Straub sells Wellington golf course to Mark Bellissimo for $35M

The post New Jersey golf course could give way to 145 senior housing units appeared first on The Real Deal.

A golf club in New Jersey’s Monmouth County could soon be welcoming seniors to the course — just not the senior golf tour. A developer proposed turning the 94-year-old golf course at 54 Monmouth Road in Eatontown into a senior housing community with commercial buildings, NJ.com reported. Mayor Anthony Talerico Jr. said at a meeting
The post New Jersey golf course could give way to 145 senior housing units appeared first on The Real Deal. Uncategorized, Golf Courses, New Jersey, Senior Housing The Real Deal

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

A 3-acre compound in the Malibu Hills that once housed a luxury detox center that sobered up the likes of Britney Spears, Charlie Sheen and Lindsay Lohan has listed for $19.5 million.

The mostly Mediterranean-style campus where Promises Malibu pioneered its “Malibu Model” for treating alcohol and drug addiction is up for sale at 20725 Rockcroft Drive, the Los Angeles Times reported.

The detox campus is where real estate developer Richard Rogg launched Promises Malibu in 1989 as the area’s first luxury treatment center. By 2018, new owners filed for bankruptcy and Promises eventually closed.

The hilltop estate, now run by an unidentified rehab facility, has sweeping views of the Pacific Ocean.

“It was a combo of serious treatment and health spa,” Sean Landon of Douglas Elliman, who holds the listing with Jennifer Johnson, told the Times. The listing doesn’t appear on their websites.

The compound includes three single-family homes containing 12 bedrooms and 10 bathrooms across 9,300 square feet. There are three entrances and a huge parking lot for guests.

The homes, revamped numerous times, contain bleach-white interiors, wood-beam ceilings, hardwood floors and fireplaces, according to listing photos. Outside, two swimming pools and a tennis court are surrounded by oak and fruit trees.

A buyer would have to honor the unspecified lease of the current rehab facility, Landon said. After that, he sees a tech or foreign buyer redeveloping the site into a hilltop oasis. A developer could also turn it into a luxury assisted-living facility.

“It’s a rare opportunity with three combined lots, so it has the feel of a compound,” Landon told the Times. “There’s a multitude of structures, but also a feeling of privacy.”

Promises Malibu, which had operated as a for-profit business, set the stage for a string of other luxury Malibu rehabs by permitting cell phones, trips to an off-site gym and appointments between meals of chef-prepared lobster and osso buco.

— Dana Bartholomew

Los Angeles

Mansion collector buys into Malibu’s Broad Beach for $35M

Los Angeles

TV producer Marcy Carsey revealed as buyer of $38M Malibu estate

Los Angeles

Malibu’s Butterfly House goes up for sale with $95M asking price

The post Pioneering Malibu luxury detox compound lists for $20M appeared first on The Real Deal.

A 3-acre compound in the Malibu Hills that once housed a luxury detox center that sobered up the likes of Britney Spears, Charlie Sheen and Lindsay Lohan has listed for $19.5 million. The mostly Mediterranean-style campus where Promises Malibu pioneered its “Malibu Model” for treating alcohol and drug addiction is up for sale at 20725
The post Pioneering Malibu luxury detox compound lists for $20M appeared first on The Real Deal. Uncategorized The Real Deal

Robert Khodadadian – The Real Deal

Robert Khodadadian Jul 18, 2023

When a hardball lender took an ex-con landlord to court, it became known as the “battle of the baddies.”

Now, Maverick Real Estate Partners can move ahead with foreclosure on a Kips Bay portfolio owned by Steve Croman, a judge has ruled.

Croman’s attorney, Terrence Oved, said that he intends to appeal the decision. Attorneys for Maverick declined to comment.

The judgment against Croman follows a failed bankruptcy and nearly three years of litigation over money owed to Maverick after the distressed-debt investor bought a $25 million mortgage note secured by four Croman buildings on East 25th Street.

Maverick has rejected the characterization of its strategy as “loan-to-own,” but it was quite aggressive in going after Croman’s buildings. The month after Croman missed a loan payment in July 2021, Maverick bought the debt from Miami-based BankUnited and, one day later, sued to foreclose on the portfolio of more than 80 apartments.

Croman, who once served time on Rikers Island for defrauding tenants, called Maverick’s move “unconscionable” and said the size of the default — two months of nonpayment in July and August which were later rectified — were minimal compared to the severity of the consequences.

In the decision, the judge noted that “when a mortgagor defaults on loan payments, even if only for a day,” a lender may accelerate the loan, and require that the balance be paid and start foreclosure proceedings. Croman’s claim that he did not default and that Maverick acted in bad faith “are entirely belied by the facts,” the judge wrote.

Croman acquired the Kips Bay apartments in 2001, records show. The BankUnited mortgage, issued in 2016, consolidated 10 loans into a single $25 million debt.

In a similar case in 2021, Maverick lost in its effort to foreclose on Andreas Steiner, the owner of a five-story rental building on West 25th Street, partly because it failed to provide Steiner with 30 days to cure the default.

In Croman’s case, although he paid the arrears, more than a month had passed since the default. However, the similarity of the cases may give Croman’s attorney, who also represented Steiner, some fodder for an appeal.

In a recent LinkedIn post, Maverick co-founder David Aviram commented on how far banks may be willing to go to protect their borrowers from firms like his.
“If a borrower maintains a healthy relationship with a bank, it’s rare that the bank will sell their debt,” Aviram wrote. “But in times like these, banks want cash infusions. So borrowers should listen to their lenders, and find the cash to pay down their loans.”

South Florida

Citadel’s Ken Griffin drops $83M for office building on Palm Beach’s Worth Ave

National

Fiduciary to investors: Funds in Nightingale projects “misappropriated”

New York

The post Maverick can foreclose on Steve Croman, judge rules appeared first on The Real Deal.

When a hardball lender took an ex-con landlord to court, it became known as the “battle of the baddies.” Now, Maverick Real Estate Partners can move ahead with foreclosure on a Kips Bay portfolio owned by Steve Croman, a judge has ruled. Croman’s attorney, Terrence Oved, said that he intends to appeal the decision. Attorneys
The post Maverick can foreclose on Steve Croman, judge rules appeared first on The Real Deal. Uncategorized, Breaking, Real Estate Finance, Real Estate Lawsuits The Real Deal