CAPRE’s Commercial Real Estate Headlines for January 14, 2020

Check out the latest deals and developments in commercial real estate for January 14, 2020:

  • Gladstone Commercial Announces $5.2 Million USD Industrial Acquisition in Indianapolis: Gladstone Commercial has completed the acquisition of a 64,800 square foot industrial building in Indianapolis, Indiana on January 8, 2020 for $5.2 million. The initial capitalization rate for the acquisition was 6.72%, with an average capitalization rate of 7.24%. Gladstone Commercial issued common units in its operating partnership to fund a portion of the acquisition. The property is 100% leased to three tenants with a weighted average lease term of 7.2 years. The property provides functional warehouse and distribution space for all three tenants as well as functional office space for the anchor tenant, Shambaugh & Son. Shambaugh currently occupies 70.4% of the building, is the largest MEP construction services contractor in Indiana, and is ranked the third largest specialty contractor in the United States.  Shambaugh’s weighted average remaining lease term is 8.5 years.  The remainder of the building is leased by GW Services, LLC and Insta-Clean, LLC.
  • Office Properties Income Trust Announces the Sale of Seven Properties for $205.4 Million USD: Office Properties Income Trust has sold seven properties for an aggregate sales price of $205.4 million, excluding closing costs. Proceeds from today’s announced sales have been used for general business purposes, including the repayment of debt. Five properties sold in December 2019 for an aggregate sales price of $191.3 million, excluding closing costs, include a two-story, 122,646 square foot office building located at 2149 West Dunlap Avenue, Phoenix, AZ; a two-story, 148,488 square foot office building located at 4181 Ruffin Road, San Diego, CA; a one-story, 75,621 square foot office building located at 6448-6450 Via Del Oro, San Jose, CA; a ten-story, 170,817 square foot office building located at 400 State Avenue, Kansas City, KS; a ten-story, 497,477 square foot office building located at 1001 Noble Energy Way, Houston, TX.
  • NKF Orchestrates $16 Million USD Sale of The Mall at Whitney Field in Leominster, MA: Newmark Knight Frank has announced  the successful completion of the $16 Million USD sale of The Mall at Whitney Field in Leominster, MA on behalf of Colony Capital to Hull Property Group. Totaling 744,107 square feet, The Mall at Whitney Field is presently 95 percent leased. The property is anchored by four major department stores – Sears, Macy’s, JCPenney and Burlington (formerly Burlington Coat Factory) – and premier regional grocer Market Basket. The Mall at Whitney Field is strategically situated one hour northwest of Boston at the intersection of Route 2 and Interstate 190, the primary east-west and north-south thoroughfares in the surrounding region. It serves a wide geographic trade area with a population count of 349,600 people with an average household income of $114,000 within a 15-mile radius.
  • Subversive Real Estate Acquisition REIT LP Announces Completion of $200 Million USD IPO: Subversive Real Estate Acquisition REIT has closing its initial public offering  of 20,000,000 Class A restricted voting units of the REIT LP at an offering price of U.S.$10.00 per Class A Restricted Voting Unit, for gross proceeds of U.S.$200,000,000. The REIT LP has granted the Underwriters (as defined below) an over-allotment option to purchase up to an additional 3,000,000 Class A Restricted Voting Units on the same terms and conditions, exercisable in whole or in part, by the Underwriters up to 30 days following Closing. The gross proceeds from the Offering were (and the gross proceeds from any exercise of the Over-Allotment Option will be) deposited into an escrow account pending completion of a Qualifying Transaction (as defined in the Final Prospectus) by the REIT LP and will only be released upon certain prescribed conditions, as further described in the REIT LP’s final prospectus dated December 23, 2019. The Offering was distributed by Canaccord Genuity Corp. and Echelon Wealth Partners Inc.
  • Greystone Brown Real Estate Advisors Closes $20.7 Million USD Sale of Atlanta Apartment Complex: Greystone Brown Real Estate Advisors has closed the $20,700,000 sale of a multifamily property in Atlanta, GA. Greystone Brown represented the seller and brought the buyer to the deal. The sale to David Stern Investment was handled by Barden Brown, Cory Caroline Sams, and Taylor Brown on behalf of CF Real Estate Services. The asset is comprised of two separate phases in Atlanta: 1890 House, located at 1890 Myrtle Drive and 1895 Plaza; and Adams House, located at 2280 Campbellton Road SW. The property is a key provider of safe and affordable workforce housing, with a resident base of market-rate and voucher-based Section 8 tenants. The property, which was built in 1969 along the regentrifying Campbellton Road Corridor in Southwest Atlanta, consists of all-brick low-rise multifamily structures with a total of 328 units.