June 19, 2014 | ISSUE 346
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Taubman to Sell Seven Malls 
to Starwood Capital Group for $1.4B
Robert Taubman
 
BLOOMFIELD HILLS, MICH. -- Taubman Centers Inc. (NYSE: TCO) and Starwood Capital Group have reached an agreement for Starwood, through a controlled affiliate, to purchase a portfolio of seven Taubman malls for $1.4 billion.

 

The malls in the transaction include MacArthur Center in Norfolk, Va.; Stony Point Fashion Park in Richmond, Va.; Northlake Mall in Charlotte, N.C.; The Mall at Wellington Green in Wellington, Fla.; The Shops at Willow Bend in Plano, Texas; The Mall at Partridge Creek in Clinton Township, Mich.; and Fairlane Town Center in Dearborn, Mich.

 

The purchase price of $1.4 billion before transaction costs includes $785 million of cash and $620 million of property-level debt that will be repaid or assumed at closing by the buyer. The sale is part of Taubman's ongoing strategy to recycle capital, maximize its net operating income growth rate and create net asset value for investors over time.

 
Click here to read more of Danielle Everson's story. 

Sterling Bay Partners with IPDNA 
to Redevelop Chicago's Old Post Office
Andy Gloor
CHICAGO -- Sterling Bay Cos. and International Property Developers North America (IPDNA) have formed a strategic partnership to redevelop Chicago's historic Old Main Post Office. Located at the nexus of the Eisenhower Expressway, multiple train lines, the south branch of the Chicago River and the growing South Loop and West Loop neighborhoods, the developers' long-term plan is to turn the site into a bustling hub of shopping, entertainment and residential activity. 
 
"We are very excited to partner with IPDNA and serve as the development partner on such a high-profile project," says Andy Gloor, managing principal of Sterling Bay Cos., a seasoned Chicago-based real estate investment and development company. 
 
According to IPDNA Chairman Bill Davies, Sterling Bay was a clear choice to launch the project and make it come to fruition. "Sterling Bay has had great success transforming large, underutilized properties into highly desirable office destinations," explains Davies. "The firm has played a significant role in transforming Chicago's West Loop, and we feel that their knowledge of the city and current market trends will lead us to initiate the first phase of one of the most notable projects in Chicago in the last 50 years."  
 
Click  here to read more of Matt Valley's story. 

NGKF Capital Markets Arranges $40M Refinance Loan for Retail Development

Ravenswood Station is a 123,650-square-foot retail building located in Chicago's Ravenswood neighborhood.

 

RAVENSWOOD, ILL. -- NGKF Capital Markets has arranged a $40 million loan to refinance Ravenswood Station, a 123,650-square-foot retail building located in Chicago's Ravenswood neighborhood. A correspondent insurance company lender provided the 20-year, permanent fixed-rate loan. 

 

Ravenswood Station, located at 1800 W. Lawrence Ave., is anchored by Mariano's Fresh Market and LA Fitness. The property includes 364 spaces of surface and structured parking. NGKF represented the borrower, a joint venture between The Taxman Corp. and Barrett & Porto Real Estate.

Bernard Financial Arranges $40M Loan for Mixed-Use Development in Detroit

Pointe Plaza consists of approximately 273,000 square feet of gross leasable space. (Photo courtesy of CoStar)

 

DETROIT -- Bernard Financial Group has arranged a $40 million CMBS loan to refinance Pointe Plaza, a mixed-use development at the border of Gross Pointe Woods and Detroit. 

 

The property, located at the intersection of Mack Avenue and Moross Road, consists of approximately 273,000 square feet of gross leasable space, which includes a medical office building, a retail building and a parking structure containing 1,800 parking spaces. 

 

Dennis Bernard and Kevin Kovachevich of Bernard Financial Group originated the loan for the borrower, Pointe Plaza Development LLC.

Adfast Income REIT Buys Apartment Complex in Indiana for $24.2M

The Class A apartment community, built in 2013, consists of garden-style buildings with one-, two- and three-bedroom units.

 

FORT WAYNE, IND. -- Steadfast Income REIT Inc. has acquired Oak Crossing, a 222-unit apartment community in Fort Wayne, Ind., for $24.2 million. The Class A apartment community, built in 2013, consists of garden-style buildings with one-, two- and three-bedroom units. The average monthly in-place rent is $952. 

 

Apartment units include private balconies/patios, washer and dryers, walk-in closets and kitchen appliances. Select floor plans come with attached garages, and detached garages are available for rent. Oak Crossing is currently 94 percent occupied. 

 

Amenities at the complex include a fitness center, swimming pool, clubhouse with a stone fireplace, business center and grilling area. Oak Crossing is Steadfast Income REIT's third property in Indiana. The REIT also owns the 268-unit Lodge at Trails Edge in Indianapolis and the 250-unit Sycamore Terrace in Terre Haute.

Tikijian Associates Brokers Sale 

of Apartment Community in Indiana

Suncrest Apartments is located near I-465 and the Indianapolis International Airport.

 

INDIANAPOLIS, IND. -- Tikijian Associates has brokered the sale of Suncrest Apartments, a 140-unit community in western Indianapolis, to a Geneva, Ill.-based investment group. The sales price was undisclosed, but the property was listed for $4.5 million. 

 

The apartment community, built in 1986, is located near I-465 and the Indianapolis International Airport. The buyer plans to upgrade the kitchens and bathrooms to include granite counter and vanity tops, new flooring and appliances. 

 

Tikijian Associates represented the seller, JVM Realty Corp., an Oak Brook, Ill.-based privately held real estate investment and management firm.

Midwest Fedex Freight Terminal 

in Aurora Sells for $16M

The 63,740-square-foot FedEx freight terminal is located at 3883 Butterfield Road.

 

AURORA, ILL. -- Marcus & Millichap has brokered the $16 million sale of a 63,740-square-foot FedEx freight terminal located in Aurora. The single-tenant, industrial asset is part of a two-property portfolio. The freight terminal is situated on 14.5 acres located at 3883 Butterfield Road. 

 

The Aurora FedEx freight terminal features a 55,120-square-foot main building with 6,800 square feet of office space. There is also 48,320 square feet of cross-dock working space, which serves as the customer center. 

 

The property contains a 6,550-square-foot, three-bay repair/wash building; a 1,600-square-foot fueling facility; and a concrete scale pit with an axle scale. The freight terminal includes 104 loading/unloading doors with custom dock levelers and custom door seals. There are 269 tractor/trailer parking spaces and a separate employee parking lot that can hold up to 91 cars. 

 

Nick Manganais of Marcus & Millichap represented the seller, an Illinois-based family partnership. Howard Wiese of Marcus & Millichap represented the buyer, Welbic Investments, a private real estate investment fund.

NAI Farbman Brokers Sale of Industrial Building in Farmington Hills, Mich.

Gabriel Ride Control will occupy space in this industrial building located at 39300 Country Club Drive in Farmington Hills.

 

FARMINGTON HILLS, MICH. -- Gabriel Ride Control, which designs, engineers, and produces shock absorbers, has acquired a 49,065-square-foot industrial building from CIII Capital for an undisclosed price. NAI Farbman brokered the sale of the property located at 39300 Country Club Drive in Farmington Hills, approximately 23 miles northwest of Detroit. 

 

The Class B, flex research and development building is situated on five acres and has access to I-696, I-275 and the M-5 freeways. Doug Fura and Devin Kling of NAI Farbman represented the seller. Lee & Associates represented the buyer.

Dickman Co. Arranges Lease 

of Industrial Space in Pewaukee, Wis.

The industrial building is located at N29 W23825 Woodgate Court.

 

PEWAUKEE, WIS. -- The Dickman Co. Inc. has arranged the lease of 15,100 square feet of industrial space in Pewaukee, a western suburb of Milwaukee. Ellison Technologies, a provider of advanced machining solutions to metal-cutting manufacturers, will occupy space located at N29 W23825 Woodgate Court. 

 

Samuel M. Dickman Jr., Samuel D. Dickman and Anthony Huenerbein of The Dickman Co. represented the landlord, Points West LLC, in the transaction. Jeff Hoffman of Judson & Associates represented the tenant.

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Danielle Everson, Associate Editor
Heartland Real Estate Business
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