CAPRE’s Commercial Real Estate Headlines for September 30, 2019
Check out the latest deals and developments in commercial real estate for September 30, 2019:
- Innovative Industrial Properties Expands Real Estate Partnership with PharmaCann at MA Property: Innovative Industrial Properties has entered into amendments of the lease and development agreement with a subsidiary of PharmaCann LLC at the property located at 465 Hopping Brook Road in Holliston, Massachusetts, making available an additional $8.0 million in funding for additional expansion of PharmaCann’s regulated cannabis cultivation and processing facilities at the property. The lease amendment also adjusted the base rent under the lease to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $26.5 million. PharmaCann is a leading multi-state cannabis operator with licenses in Illinois, Maryland, Massachusetts, New York, Pennsylvania, Ohio and Virginia.
- Multifamily Giant Cortland Closes on $1.2B, All-Cash Acquisition: Multifamily real estate investment, development and management company Cortland has closed on the Pure Multi-Family REIT acquisition for $1.2 billion in cash and become the largest apartment owner in the Dallas-Fort Worth Metroplex. This acquisition of the Canadian-based, publicly traded vehicle represents Cortland’s continued strategy of growth and concentration in its designated focus markets, which Cortland believes share similarly outsized job and population growth qualities with strong affordability characteristics. Since January 2018, Cortland has conducted more than $3.7 billion in multifamily acquisitions, representing 20,639 apartment units. Cortland now owns and manages more than 60,000 apartment homes nationwide.
- New Residential Investment Corp. Receives Court Approval to Buy Select Assets from Ditech Holding Corporation: New Residential Investment Corp. has announced today that the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) has approved the Company’s previously announced asset purchase agreement with Ditech Holding Corporation and Ditech Financial LLC. Under the terms of the APA, New Residential will purchase Ditech’s forward Fannie Mae, Ginnie Mae and non-agency mortgage servicing rights (“MSRs”), the servicer advance receivables relating to such MSRs and other net assets core to the forward origination and servicing businesses. Additionally, New Residential has agreed to assume certain Ditech office spaces and make employment offers to a number of Ditech employees. Under the APA, New Residential will not purchase any of the stock or assets related to Ditech’s reverse mortgage business or the stock of any other Ditech subsidiaries. The acquisition is expected to close in the fourth quarter 2019.
- Kenco Fuels Growth with New Warehousing and Distribution Services Facility in CA: Kenco Logistics has announced a new warehousing and distribution services facility located adjacent to the high-demand Los Angeles market in Perris, California. Supported by leading technology and experienced staff focused on customer service, the space is equipped with innovative warehouse and inventory management systems to meet the needs of a wide variety of organizations in many different industry verticals. With the growth of e-commerce and regional distribution models, there has been a resurgence in demand for warehouse space. The 579,708-square-foot facility features access to all major transportation routes and includes foreign trade benefits, as shipments from international markets can be processed and transloaded to trucks or rail delivery. The Perris site is now the fifth location in California, joining warehouse spaces in Livermore, Oxnard, Rancho Cucamonga and Chino.
- Gladstone Commercial Announces Industrial Portfolio Acquisition in Temple, TX: Gladstone Commercial Corporation has completed the acquisition of a 211,000 square foot, two building industrial portfolio in Temple, TX. The portfolio, acquired in a sale/leaseback transaction, is 100% leased to Texas Hydraulics, Inc. (“Texas Hydraulics”) with a twenty (20) year lease term. Texas Hydraulics currently uses the two properties for the manufacturing, warehousing, and distribution of hydraulic cylinders. Texas Hydraulics has invested more than $35 million in the facilities. The acquisition of the industrial properties is consistent with Gladstone Commercial’s growth strategy of acquiring high-quality assets in growth regions with credit-worthy tenants. This portfolio consists of two buildings: one located at 3410 Range Road, a 126,000 square foot facility, and one located at 3120 Range Road, an 85,000 square foot facility. Texas Hydraulics plans to continue operating in these facilities for years to come.
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