CAPRE’s Commercial Real Estate Headlines for December 31, 2019

Check out the latest deals and developments in commercial real estate for December 31, 2019:

  • Terreno Realty Corporation Acquires Property in Puyallup, WA for $6.7 Million USD: Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Puyallup, Washington on December 19, 2019 for a purchase price of approximately $6.7 million USD. The property consists of one industrial distribution building containing approximately 41,000 square feet on approximately 2.3 acres less than four miles from the Port of Tacoma. The property, at 917 Valley Avenue NW, provides ten dock-high and four grade-level loading positions, parking for 50 cars and is 100% leased to two tenants. The estimated stabilized cap rate of the property is 5.4%. Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization. Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.
  • Greystar Acquires 412-Unit Multifamily Property in Phoenix: Greystar Real Estate Partners has nnounced the acquisition of the 412-unit Desert View Apartments in Phoenix on behalf of its real estate funds. The asset, which has been rebranded Avana Desert View, is located in North Scottsdale – a submarket defined by strong employment and demographic fundamentals. Greystar plans to enhance the resident experience and unlock embedded value through strategic capital investments and operational improvements. Completed in 1996, Avana Desert View boasts exceptional visibility along East Bell Road, a major east-west artery, and benefits from its proximity to many of Phoenix’s premier retail, dining and entertainment venues. Moreover, the property is situated a short distance from I-51 and I-101, providing residents with easy access to the area’s major employment centers including Deer Valley, Desert Ridge, Paradise Valley Village and Downtown Phoenix. Importantly, an American Express campus that employs more than 7,500 people and the Scottsdale Airpark Employment Corridor, which employs more than 85,000 people, are located within four miles of the property.
  • RealPage ActiveBuilding Resident Portal Launches eCommerce Platform: RealPage, Inc. has delivered the industry’s first eCommerce platform for residents via its ActiveBuilding resident portal solution. The solution is purpose-built to enhance the resident experience and drive incremental yield from amenities, spaces, services and events. A radically redesigned, custom-branded mobile app facilitates all transactions by enabling residents to make purchases and manage apartment-related needs easily and conveniently. These advances deliver benefits to property owners and managers with proven success in beta testing such as an eCommerce Platform. With this technology, residents can reserve and pay for amenities, spaces and events directly, including parking, guest suites, self-storage, clubhouses, conference rooms, yoga classes, cleaners, child care, dog walkers and more. PMCs earn income from assets they already have and through third-party service providers. So far, clients have monetized 25 different amenities and rentables with guest suites and parking generating the most incremental revenue with one client reporting over $150 per unit per year in revenue lift. Another is a custom-branded mobile app, in which PMCs can build their brand by custom-branding the app with a property’s logo, color palette and photography. This also makes it simple to provide a community’s branded resident portal to residents. Residents simply enter their community name in the app store and the custom-branded app will appear. Residents can quickly make all reservations and purchases from the app through a simple, end-to-end shopping cart experience. They can also renew their leases with just a few clicks. Residents were 2-3% more likely to renew according to beta test results.
  • Kennedy Wilson Acquires Western U.S. Multifamily Portfolio in Off-Market Transaction for $342 Million USD: Kennedy Wilson has announced the acquisition of five multifamily properties in an off-market transaction for $342 million. The assets were acquired by various investment vehicles managed by Kennedy Wilson. The communities, located in Washington, Oregon, Colorado, Nevada and New Mexico, expand Kennedy Wilson’s multifamily portfolio focused on institutional-quality, garden-style apartments in rapidly growing markets in the western United States. Kennedy Wilson has an average ownership of 38% in the assets. Kennedy Wilson and its equity partners invested $122 Million USD of equity in the portfolio, including closing costs. Kennedy Wilson’s asset management plan includes adding and enhancing amenities and updating unit interiors across the portfolio. The five-property portfolio contributes 1,008 units to Kennedy Wilson’s growing multifamily presence in the Mountain States, which now totals approximately 8,300 multifamily units, including units under development. The portfolio also adds 449 units to Kennedy Wilson’s Pacific Northwest portfolio, which now totals approximately 11,700 units, including units under development. The acquisition builds on the company’s total multifamily portfolio of 29,500 units, including properties under construction.
  • Walton Big Lake Development Announces Closing of Asset Sale: Walton Big Lake Development and its general partner, Walton Big Lake Development Corporation have closed the previously announced transaction with Anthem Properties Group Ltd. to sell all of the lands, contracts and other assets which are associated with Walton Big Lake’s ongoing development project named “Hawks Ridge at Big Lake”. The Property was purchased by an Anthem affiliate, Anthem United Hawks Ridge Developments Limited Partnership, and comprises all or substantially all of the assets of Walton Big Lake. As previously announced, the General Partner intends to proceed to dissolve the Partnership under the provisions of the October 26, 2010 Amended and Restated Limited Partnership Agreement, after which the General Partner will be dissolved pursuant to an order of the Court of Queen’s Bench of Alberta dated October 31, 2019.