CAPRE’s Commercial Real Estate Headlines for September 6, 2019

Check out the latest deals and developments in commercial real estate for September 6, 2019:

  • True North Commercial Real Estate Investment Trust Announces $70 Million Equity Offering and Three Potential Class “A” Urban Accretive Acquisitions:  True North Commercial Real Estate Investment Trust has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets and Raymond James Ltd. to sell, on a bought deal basis, 10,610,000 trust units of the REIT at a price of $6.60 per Unit for gross proceeds to the REIT of approximately $70 million. The Offering is being made under the REIT’s short form base shelf prospectus dated June 1, 2018. The terms of the Offering will be described in a prospectus supplement to be filed with Canadian securities regulatory authorities. Daniel Drimmer, the REIT’s President and Chief Executive Officer, will be purchasing approximately $1 million of Units as a part of the Offering. The REIT has also granted the Underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,591,500 Units to cover over-allotments, if any. The Offering is expected to close on or about September 12, 2019.
  • Harbor Capital Acquires Wehner Multifamily: Hidden Harbor Capital Partners has acquired Wehner Multifamily, a full-service property management company with more than 25,000 residential units under management across Texas and Oklahoma with a mission to industry leading management services for B & C class apartment communities. Based in Dallas, Texas and founded by Ryan Wehner in 2008, Wehner Multifamily attributes its consistent growth over the past decade to recruiting high performing property managers, leveraging innovative technology, and maintaining a client-oriented approach to operations. The company also provides renovating services as well as low cost, high quality replacement parts for unit interiors.
  • Broadstone Net Lease, Inc. Acquires $735.7 million Industrial Portfolio: Broadstone Net Lease, Inc. (“BNL,” “we,” “our,” or ”us”) has announced the acquisition of a portfolio of 23 industrial and office/flex assets that are fully leased and include 6.9 million rentable square feet of operational space for an aggregate purchase price of approximately $735.7 million, excluding capitalized acquisition expenses. The portfolio has a weighted average remaining lease term of approximately 11.5 years and weighted average annual rent increases of approximately 2.2%. The portfolio is well diversified with 19 different tenants, properties located in 14 states and British Columbia, Canada, and comprises a mix of warehouse, distribution, manufacturing, cold storage, and office/flex assets. On a pro forma basis post-transaction, BNL will own a diversified portfolio of 668 individual net leased commercial properties comprising approximately 27.2 million rentable square feet of operational space with no single tenant accounting for more than 2.8% of contractual rental revenue over the next 12 months.
  • $16.5 Million USD Community in Modesto Sold: The Mogharebi Group has completed the sale of Chardonnay Ridge Apartments, a 115-unit community, located on Celeste Drive in Modesto, CA. The property sold with multiple offers for an impressive price of $16,500,000 that equates to $143,478 per unit or $193 per square foot. The buyer was a private investment group out of San Francisco, CA. Principals Alex Mogharebi and Otto Ozen of TMG represented the seller, a private investor based in the San Gabriel Valley, and the San Francisco based buyer. Built in 1979, Chardonnay Ridge is a two story, 115-unit apartment community that is located on Celeste Drive in Modesto, CA. The apartment homes feature spacious one, two, and three-bedroom floor plans with an average size of 741 square feet. The property features a large resort-style outdoor pool, 24-hour fitness center, reserved covered parking, on-site laundry facilities, and is in the highly desirable Sylvan School District.
  • Amazon Hits the Gas on Industrial Facility Outside Boston: MassLive is reporting that Amazon has  begun the $5.6 million in renovation for its new distribution center at 161 Lower Westfield Road in Holyoke, just outside of Boston. Amazon reportedly seeks to fill 235 jobs. “Amazon hasn’t sought tax abatements from the city, said John A. Dyjach, Holyoke’s assistant director of economic development. Nor has it sought tax abatements from the state, according to spokespeople at the Massachusetts Office of Business Development, the agency that would handle such a request,” reads the coverage. “The building is owned by The O’Connell Companies of Holyoke. Until recently it housed the Paolo Freire Social Justice Charter School, which has moved to Chicopee. Before that it was a manufacturing facility for Atlas Copco.

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