Higher interest rates are not always bad for property: Pro from CNBC.
www.omegare.comWednesday, May 30, 2018
Tuesday, May 29, 2018
Dunham’s Sports to Open New 43,000SF Store in Pottsville, PA
by Steve Lubetkin, Globest.com
Dunham’s Sports retail sporting goods chain will open a new, 43,000-square-foot store at Fairlane Village Mall, according to Levin Management Corporation, exclusive leasing and managing agent for the 405,000-square-foot retail property. Formerly located in Frackville, PA, Dunham’s Sports will continue its long tradition of providing area consumers with a wide variety of value-priced, name-brand merchandise at the new Fairlane Village Mall location. Founded in 1937, the chain maintains more than 230 stores in 22 states, offering a full line of traditional sporting goods, outdoor and athletic equipment, and active and casual sports apparel and footwear for men, women and children. Shoppers will be able to access Dunham’s Sports from both exterior and interior mall entrances. Fairlane Village Mall is co-anchored by Kohl’s, Michaels Arts & Crafts and Boscov’s department store. The property features a lineup of national, regional and local tenants also including Harbor Freight Tools, T-Mobile, Dollar Tree, Schuylkill Valley Sports, Benigna’s Creek Winery, Kay Jewelers, GNC and Super Shoes, among others.
www.omegare.com
Dunham’s Sports retail sporting goods chain will open a new, 43,000-square-foot store at Fairlane Village Mall, according to Levin Management Corporation, exclusive leasing and managing agent for the 405,000-square-foot retail property. Formerly located in Frackville, PA, Dunham’s Sports will continue its long tradition of providing area consumers with a wide variety of value-priced, name-brand merchandise at the new Fairlane Village Mall location. Founded in 1937, the chain maintains more than 230 stores in 22 states, offering a full line of traditional sporting goods, outdoor and athletic equipment, and active and casual sports apparel and footwear for men, women and children. Shoppers will be able to access Dunham’s Sports from both exterior and interior mall entrances. Fairlane Village Mall is co-anchored by Kohl’s, Michaels Arts & Crafts and Boscov’s department store. The property features a lineup of national, regional and local tenants also including Harbor Freight Tools, T-Mobile, Dollar Tree, Schuylkill Valley Sports, Benigna’s Creek Winery, Kay Jewelers, GNC and Super Shoes, among others.
www.omegare.com
Tuesday, May 22, 2018
Berger Rentals, Lancaster, PA Mainstay, Acquires 261-Unit MF Portfolio
by Steve Lubetkin, Globest.com
Berger Rentals acquired 261 residential units in a portfolio consisting of two multifamily properties—Quail Run Apartments and Stone Mill Station Apartments—for $25.5 million.
Each property was sold by two related entities that are all owned by the same investors. For Quail Run, they were Quail Run Holdings and OW Quail Run Holdings, and for Stone Mill Station, the owners were Stone Mill Holdings and OW Stone Mill Holdings.
All those entities appear to be owned by the same joint venture between Oscar Wercberger and Asher Handler, which acquired Quail Run for around $10.7 million and Stone Mill for $9.9 million, both in December 2015.
According to Real Capital Analytics, a proprietary research database, the joint venture for each apartment complex shares a mailing address in Lakewood, Ocean County, NJ. Handler is a managing partner of Redstone Equities, a real estate investment company that describes itself as focusing on “residential garden-style apartments, low- and mid-rise apartment buildings, several million square feet of industrial space, student housing and single family residential houses and townhomes,” in New York, New Jersey and Pennsylvania. The two properties appear on the Redstone Equities website’s portfolio page.
Both properties were refinanced in August 2017 through Fannie Mae, with Quail Run getting a $10.6 million first mortgage at a fixed 4.2 percent interest rate, and Stone Mill getting a $10.4 million mortgage at the same rate, according to Real Capital Analytics.
“The deal represented a value-add opportunity for the purchaser to obtain higher rents by upgrading kitchens and baths. This was the fifth time Kislak sold these properties, with the sale price higher each time as the rent roll has grown.”
Uniquely, the Quail Run Apartments at 1424-B Passey Lane in Lancaster, and Stone Mill Station Apartments at 250 Stone Mill Road in Manor Township, include 136 and 125 residential units, respectively, and were at 95-percent occupancy at time of sale. Both complexes are garden-style apartments consisting of 17 two-story and 11 three-story buildings, respectively, and are well-maintained and beautifully landscaped.
The unit mix for both properties is approximately 55-percent two- and three-bedroom units and 45-percent one-bedroom units. Approximately 80 percent of the kitchens and baths have been upgraded with additional improvements to windows, roofs, hallways and stairs. Large spacious floor plans, walk-in closets, balconies/terraces or patios and individually-controlled HVAC are among the many features of the units.
The properties, within a half-mile of each other, are located in fast-growing Lancaster County with a population of more than 600,000 residents and centrally located with easy access to major Pennsylvania thoroughfares. Near major shopping centers, houses of worship and excellent public schools and many universities, the properties offer resident amenities such as off-street parking, private entrances, fitness center, on-site leasing office, playground and laundry facilities.
“Berger Rentals owns properties in the Lancaster market and these two are close by, increasing their presence in the market. The loan amount was approximately $21 million; the purchaser paid $4.5 million above the existing loan.” Freddie Mac financing was assumed by Greystone.
www.omegare.com
Berger Rentals acquired 261 residential units in a portfolio consisting of two multifamily properties—Quail Run Apartments and Stone Mill Station Apartments—for $25.5 million.
Each property was sold by two related entities that are all owned by the same investors. For Quail Run, they were Quail Run Holdings and OW Quail Run Holdings, and for Stone Mill Station, the owners were Stone Mill Holdings and OW Stone Mill Holdings.
All those entities appear to be owned by the same joint venture between Oscar Wercberger and Asher Handler, which acquired Quail Run for around $10.7 million and Stone Mill for $9.9 million, both in December 2015.
According to Real Capital Analytics, a proprietary research database, the joint venture for each apartment complex shares a mailing address in Lakewood, Ocean County, NJ. Handler is a managing partner of Redstone Equities, a real estate investment company that describes itself as focusing on “residential garden-style apartments, low- and mid-rise apartment buildings, several million square feet of industrial space, student housing and single family residential houses and townhomes,” in New York, New Jersey and Pennsylvania. The two properties appear on the Redstone Equities website’s portfolio page.
Both properties were refinanced in August 2017 through Fannie Mae, with Quail Run getting a $10.6 million first mortgage at a fixed 4.2 percent interest rate, and Stone Mill getting a $10.4 million mortgage at the same rate, according to Real Capital Analytics.
“The deal represented a value-add opportunity for the purchaser to obtain higher rents by upgrading kitchens and baths. This was the fifth time Kislak sold these properties, with the sale price higher each time as the rent roll has grown.”
Uniquely, the Quail Run Apartments at 1424-B Passey Lane in Lancaster, and Stone Mill Station Apartments at 250 Stone Mill Road in Manor Township, include 136 and 125 residential units, respectively, and were at 95-percent occupancy at time of sale. Both complexes are garden-style apartments consisting of 17 two-story and 11 three-story buildings, respectively, and are well-maintained and beautifully landscaped.
The unit mix for both properties is approximately 55-percent two- and three-bedroom units and 45-percent one-bedroom units. Approximately 80 percent of the kitchens and baths have been upgraded with additional improvements to windows, roofs, hallways and stairs. Large spacious floor plans, walk-in closets, balconies/terraces or patios and individually-controlled HVAC are among the many features of the units.
The properties, within a half-mile of each other, are located in fast-growing Lancaster County with a population of more than 600,000 residents and centrally located with easy access to major Pennsylvania thoroughfares. Near major shopping centers, houses of worship and excellent public schools and many universities, the properties offer resident amenities such as off-street parking, private entrances, fitness center, on-site leasing office, playground and laundry facilities.
“Berger Rentals owns properties in the Lancaster market and these two are close by, increasing their presence in the market. The loan amount was approximately $21 million; the purchaser paid $4.5 million above the existing loan.” Freddie Mac financing was assumed by Greystone.
www.omegare.com
Monday, May 21, 2018
Developers building industrial space on speculation
Natalie Kostelni Reporter Philadelphia Business Journal
About half a mile from I-95 in Marcus Hook, Anthony Diver has five-and-a-half acres in the Chichester Business Park and he knows exactly what he’s going to do with it. It’s something he hasn’t done in 12 years, but Diver is certain he and the market are ready for it.
The owner of West Chester’s Tamora Building Systems is going to develop a 63,000-square-foot industrial building on speculation — with no tenants lined up for it. He’s confident in his decision, which will cost about $5 million. “The vacancy is low and the market is strong,” he said.
Diver is hardly alone these days in striking now with a spec industrial building; such properties — used for manufacturing or to warehouse and distribute goods — are in high demand. The market for them is seeing all of the characteristics that fuel spec development. The overall vacancy rate in the Philadelphia metropolitan area stands at 5.9 percent and, in some submarkets, has sunk lower than that. While there’s ample demand, a limited supply is under development and rents are on the rise, according to CBRE Inc.’s first-quarter report.
These aren’t the big box warehouses that are 500,000 square feet up to 1 million square feet commonly found in the Lehigh Valley and central Pennsylvania and used by the likes of Amazon and Procter and Gamble. Rather, these are typically one- to two-story nondescript buildings ranging from 50,000 square feet to 250,000 square feet and used by an array of companies.
From Route 422 to Quakertown
Jay Bown, whose Industrial Investments Inc. owns 3.6 million square feet of such space in the counties surrounding Philadelphia, hasn’t seen a market quite like this in his 30 years in business. “This is the tightest I can remember,” Bown said. “We’re leasing things as soon as we have availabilities.”
While typical warehouse space runs about $5 to $6 a square foot, which is still pretty steep, some of Bown’s flex buildings are fetching rents as high as $10 to $12 a square foot.
He is embarking on his own version of spec space at 475 N. Lewis Road, a 169,000-square-foot building in Limerick. Industrial Investments paid $7.25 million for the property, banking that a company or two will want to occupy it once the existing tenant, John Middletown Co., moves out later this year.
“Right now, along the Route 422 Corridor down to King of Prussia, there are very few chunks of industrial space available,” Bown said. “You can’t find 50,000 square feet to 100,000 square feet.”
That’s hard to come by not only along the Route 422 Corridor but regionwide, and that’s a new reality for industrial brokers. Nick Adams of Jackson Cross Partners is seeing the issue manifest itself across most submarkets and, as a by product, has caused a new and heightened interest in Quakertown, Bucks County.
“There is a lack of inventory all over and so we’re seeing folks coming from the Lehigh Valley because they can’t find available land there and companies are moving up from Lansdale and Montgomeryville because they can’t find land or space there,” Adams said. “There is land in Quakertown and it’s right at the interchange of the Pennsylvania Turnpike.”
Gorski Engineering Inc. has been at the forefront of the development activity in Quakertown, having built out 50 acres of Milford Commerce North along AM Drive for Pulse Technologies, Celerity Integrated Services and Precision Finishing. Gorski has several projects in the works: in April, it submitted land development plans for 30 acres along New Road in Milford Commerce South, it aims to construct a 120,000-square-foot build-to-suit manufacturing building along Richland Commerce Drive in Northfield Business Campus and expects to add a 60,000-square-foot facility over the next 60 days, Kathy Gorski said. Separately, Nappen & Associates developing a parcel on AM Drive and seeking approvals to construct a 79,000-square- foot industrial building on spec at 2100 AM Drive.
Full story: https://tinyurl.com/y7azus33
www.omegare.com
About half a mile from I-95 in Marcus Hook, Anthony Diver has five-and-a-half acres in the Chichester Business Park and he knows exactly what he’s going to do with it. It’s something he hasn’t done in 12 years, but Diver is certain he and the market are ready for it.
The owner of West Chester’s Tamora Building Systems is going to develop a 63,000-square-foot industrial building on speculation — with no tenants lined up for it. He’s confident in his decision, which will cost about $5 million. “The vacancy is low and the market is strong,” he said.
Diver is hardly alone these days in striking now with a spec industrial building; such properties — used for manufacturing or to warehouse and distribute goods — are in high demand. The market for them is seeing all of the characteristics that fuel spec development. The overall vacancy rate in the Philadelphia metropolitan area stands at 5.9 percent and, in some submarkets, has sunk lower than that. While there’s ample demand, a limited supply is under development and rents are on the rise, according to CBRE Inc.’s first-quarter report.
These aren’t the big box warehouses that are 500,000 square feet up to 1 million square feet commonly found in the Lehigh Valley and central Pennsylvania and used by the likes of Amazon and Procter and Gamble. Rather, these are typically one- to two-story nondescript buildings ranging from 50,000 square feet to 250,000 square feet and used by an array of companies.
From Route 422 to Quakertown
Jay Bown, whose Industrial Investments Inc. owns 3.6 million square feet of such space in the counties surrounding Philadelphia, hasn’t seen a market quite like this in his 30 years in business. “This is the tightest I can remember,” Bown said. “We’re leasing things as soon as we have availabilities.”
While typical warehouse space runs about $5 to $6 a square foot, which is still pretty steep, some of Bown’s flex buildings are fetching rents as high as $10 to $12 a square foot.
He is embarking on his own version of spec space at 475 N. Lewis Road, a 169,000-square-foot building in Limerick. Industrial Investments paid $7.25 million for the property, banking that a company or two will want to occupy it once the existing tenant, John Middletown Co., moves out later this year.
“Right now, along the Route 422 Corridor down to King of Prussia, there are very few chunks of industrial space available,” Bown said. “You can’t find 50,000 square feet to 100,000 square feet.”
That’s hard to come by not only along the Route 422 Corridor but regionwide, and that’s a new reality for industrial brokers. Nick Adams of Jackson Cross Partners is seeing the issue manifest itself across most submarkets and, as a by product, has caused a new and heightened interest in Quakertown, Bucks County.
“There is a lack of inventory all over and so we’re seeing folks coming from the Lehigh Valley because they can’t find available land there and companies are moving up from Lansdale and Montgomeryville because they can’t find land or space there,” Adams said. “There is land in Quakertown and it’s right at the interchange of the Pennsylvania Turnpike.”
Gorski Engineering Inc. has been at the forefront of the development activity in Quakertown, having built out 50 acres of Milford Commerce North along AM Drive for Pulse Technologies, Celerity Integrated Services and Precision Finishing. Gorski has several projects in the works: in April, it submitted land development plans for 30 acres along New Road in Milford Commerce South, it aims to construct a 120,000-square-foot build-to-suit manufacturing building along Richland Commerce Drive in Northfield Business Campus and expects to add a 60,000-square-foot facility over the next 60 days, Kathy Gorski said. Separately, Nappen & Associates developing a parcel on AM Drive and seeking approvals to construct a 79,000-square- foot industrial building on spec at 2100 AM Drive.
Full story: https://tinyurl.com/y7azus33
www.omegare.com
Subscribe to:
Posts (Atom)
