Saturday, November 22, 2014

Philadelphia Retail Deliveries, Construction and Inventory

During the third quarter 2014, five retail buildings totaling 80,793 square feet were completed in the Philadelphia market. Over the past four quarters, a total of 842,776 square feet of retail space has been built in Philadelphia.

There were 389,251 square feet of retail space under construction at the end of the third quarter 2014.

Some of the notable 2014 deliveries include: 4300 Broadway, a 59,840-square-foot facility that delivered in third quarter 2014 and is now 100% occupied, and 332 S Broad St, a 45,000-square-foot building that delivered in first quarter 2014 and is now 100% occupied.

Total retail inventory in the Philadelphia market area amounted to 500,055,236 square feet in 41,234 buildings and 2,554 centers as of the end of the third quarter 2014.

This trend is compared to U.S. National Retail deliveries and construction, which saw 542 buildings totaling 13.91 million square feet complete construction, with an additional 53.3 million square feet of retail space still under construction at the end of the third quarter. 837 Washington St, a 58,200-square-foot facility in the New York City market, delivered this quarter, as did the 148,000-square-foot Main St N. Brunswick Costco in the Northern New Jersey market. Total retail inventory in the U.S. market totaled more than 12.54 billion square feet in almost 1.1 million retail buildings at the end of Q3 2014, including 97,500 shopping centers.

www.omegare.com

Friday, November 21, 2014

Canadian Firm Walks Away From Revel Buy

Issues related to Revel Casino-Hotel’s power plant have apparently pulled the plug on Brookfield US Holding LLC’s $110-million purchase of the shuttered gaming facility here.

Brookfield spokesperson Melissa Coley said on Wednesday night that Brookfield decided not to move ahead with its court approved purchase of Revel. She said Brookfield’s decision was based on bondholders’ refusal to rework debt connected with the construction of Revel’s power plant, according to the Press of Atlantic City.

Glenn Straub, the Florida developer whose $95.4 million bid for Revel was named the backup offer at a bankruptcy auction, believes his appeal of the award prompted Brookfield’s decision to walk away from the casino purchase.

“We will make the place successful, mark my words,” Straub says.

While Brookfield said it would have run a casino-hotel at the Revel, Straub says that gambling would not be the main draw at the property that cost $2.4 billion to construct.

The construction of the power plant caused Revel to incur more than $1.5 million in monthly power-plant financing fees, which contributed to the casino owner’s fiscal woes.
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KBS REIT II Sells I-81 Industrial Portfolio for $105.7M

Chambers Street Properties acquired four industrial buildings in the I-81 / I-78 Corridor of Eastern Pennsylvania from KBS Real Estate Investment Trust II. The Newport Beach, CA-based REIT sold its I-81 Industrial Portfolio for $105.7 million, or about $64 per square foot.

The portfolio of core properties includes four industrial buildings totaling 1.64 million square feet that are fully leased to tenants including Kimberly-Clark, Amazon, Bimbo Bakeries, Two Chefs on a Roll, Cardinal Glass, and Haband Company.

The buyer, a Princeton, NJ-based REIT that focuses on long-term holds of net-leased industrial and office properties, was reportedly attracted to the asset's location, critical use, and tenant quality.

14-46 Alberigi Dr. in Jessup, PA is a 140,800-square-foot, high-bay warehouse built in 2007 on 106 acres in Lackawanna County. In Luzerne County are three bulk industrial buildings including the 615,600-square-foot distribution facility at 550 Oak Ridge Rd. constructed in 2005 on 50 acres in Hazleton, the 744,080-square-foot distribution building at 325 Centerpoint Blvd. in Jenkins Twp. built in 2008 on 49 acres, and 125 Capital Rd. in Pittston, a 144,000-square-foot food processing facility built in 2007 on 14 acres.

In connection with the sale, KBS repaid $56.2 million in outstanding principal on a portfolio mortgage loan secured in-part by the properties. KBS acquired the portfolio in 2011 for $90 million, and incurred expenses of $2.9 million during ownership.

"The I-81 / I-78 corridor has become highly sought-after by investors," commented Hines. "This market has a low vacancy rate, 8.4% for modern bulk, and tremendous leasing activity averaging 21.7 million square feet from 2011 to 2013, including a 41% year-over-year increase in 2013."
www.omegare.com

Thursday, November 20, 2014

DaVita Dialysis Ctr Sold for $3.2M

A private investor sold the medical office building at 133-135 Cheltenham Ave. in Cheltenham, PA to a family trust for $3.15 million, or about $262 per square foot.

This office building delivered in 1960 in the Horsham/Willow Grove submarket. It totals 13,650 square feet, and is occupied by DaVita Dialysis Center.

www.omegare.com