DLC Management Corp. has received a combined $43.7 million for a two-asset, 605,820-square-foot retail portfolio in metro Columbus, Ohio.

TriState Capital Bank provided a five-year, fixed-rate $30 million loan for Taylor Square in Reynoldsburg, Ohio, while Dollar Bank issued a five-year, $13.7 million note for Tuttle Crossing in Dublin, Ohio. JLL arranged both transactions.

DLC Management had purchased the two retail centers last month from the joint venture of Island Capital and Casto, for a total of $76.3 million. Institutional Property Advisors represented the seller.

Two metro Columbus retail centers

Completed in 2000 on a 48.3-acre site, the 378,102-square-foot Taylor Square underwent renovations in 2023. The property is at 2793 Taylor Road, just off Interstate 70, which is transited daily by 97,000 vehicles. The Walmart-anchored shopping center features 34 tenants including Marshalls, JoAnn, Dollar Tree and Bath & Body Works. Taylor Square was 99.7 percent leased at the time of the deal.

Tuttle Crossing is a 226,718-square-foot retail center covering an 18.7-acre site. Completed in 1996 and renovated in 2022, the Walmart shadow-anchored property currently has seven tenants including Best Buy, Ashley Furniture, Macy’s Furniture Gallery, Cost Plus World Market and Ross Dress For Less. The shopping center is at 5800 Britton Parkway near Interstate 270, a location transited daily by 117,360 vehicles. Tuttle Crossing was 97.8 percent leased at closing.

Downtown Columbus is 14 miles away from both properties, west of Taylor Square and south of Tuttle Crossing.

JLL Capital Markets Senior Managing Directors Scott Aiese and Claudia Steeb, together with Director Alex Staikos, led the Debt Advisory team that secured the financing package.

Grocery-anchored shopping centers continue to meet the needs of changing demographics, demonstrating their resilience. In 2025, the retail sector will lean even more into necessity-based retail, catering to the increasing demand for proximity-based and convenience-oriented shopping experiences.

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Institutional Property Advisors has arranged the $76.3 million sale of a shopping center portfolio in metro Columbus, Ohio. The property collection consists of Taylor Square in Reynoldsburg and Tuttle Crossing in Dublin, two retail assets totaling 622,000 square feet.

Taylor Square traded for $55.3 million, while Tuttle Crossing sold for $21 million, according to CommercialEdge information.

Island Capital in partnership with Casto sold the two shopping centers to DLC Management and Principal Asset Management. IPA Senior Managing Directors Erin Patton, Scott Wiles and Craig Fuller brokered the deal on behalf of the sellers.

Two Walmart-anchored retail centers

Completed between 2000 and 2003, Taylor Square is a 395,074-square-foot retail center featuring nine one-story buildings. Just off Interstate 70 and near Route 256, Taylor Square is the largest shopping center in the area. The tenant roster at the Walmart Supercenter-anchored center includes JoAnn, Marshalls, Dollar Tree, Famous Footwear, Bath & Body Works and Smokey Bones. Taylor Square was 99 percent leased at the time of sale.

The 226,718-square-foot Tuttle Crossing in Dublin covers a 19-acre site. The shopping center is situated off Interstate 270 exit ramps at Tuttle Crossing Boulevard. Its tenant roster includes Best Buy, Foot Locker, JCPenney, Bath and Body Works and Macy’s. Tuttle Crossing is also anchored by a Walmart.

Downtown Columbus is equidistant to the two assets, some 14 miles west of Taylor Square and south of Tuttle Crossing.

The retail sector has seen a significant post-pandemic recovery, attracting both investors and luxury retailers. A JLL report attributes this improved performance to a pedestrian-friendly infrastructure that increases foot traffic in prime urban corridors, including Miami’s Design District, Boston’s Newbury Street and Seaport, as well as Chicago’s Fulton Market and Wicker Park.

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The Opus Group has started construction on 33 Commerce Center, a 250,829-square-foot speculative industrial project in Marysville, Ohio. Completion is scheduled for August 2025.

The development team includes AST Engineering as structural engineer and Lee & Associates Principals Mike Spencer and Todd Spencer as exclusive leasing brokers in charge. Besides developer, The Opus Group is also the designer, general contractor and architect of the project.

READ ALSO: Industrial Report: Automation and AI Shape Future Demand

The Class A, multi-tenant building will include 32-foot clear heights, interior and exterior LED lighting, four storefronts with clerestory windows, a 3,870-square-foot office component, 24 docks, four drive-in dock doors and trailer parking spaces. The property is designed for light assembly and manufacturing uses.

The asset is within Marysville’s 33 Innovation Park, an industrial campus owned and developed by Union County Marysville Economic Development Partnership. It includes customized development sites from 7 acres to 165 acres, one completed industrial building and two others in planning stages.

The master-planned campus allows for easy access to the Columbus, Ohio, metro and the Midwest region via interstates 270, 70 and 71, as well as to Ohio’s 33 Smart Corridor.

Columbus’ pipeline in top 10 nationwide

Columbus has one of the most active industrial pipelines in the Midwest, a recent CommercialEdge report shows. The metro had nearly 8 million square feet underway as of November, outperformed only by Kansas City, Mo., which had 11.7 million square feet. The amount represented 2.5 percent of existing stock, ahead of the 1.8 percent national figure. Columbus also ranked fifth nationwide among the top U.S. markets in terms of amount of space underway.

The post The Opus Group Kicks Off 251 KSF Columbus Project appeared first on Commercial Property Executive.

Omega Morgan, a specialist in moving heavy rigging and machinery, has inked a 250,020-square-foot lease for the entire Building D of The Cubes at Etna, a master-planned industrial park in Etna Township, Ohio, in the metro Columbus market.

The landlord, CRG, developed the spec building and completed it less than a year ago. Contegra Construction served as general contractor, while Lamar Johnson Collaborative was the architect.

Omega Morgan leased the facility as part of its ongoing expansion in the region. The company operates across much of the U.S. and Canada, and plans to utilize the building for distribution services across the Ohio Valley region.

Joe Kimener of CBRE represented CRG in the lease and Nick Tomasone of JLL negotiated on behalf of the tenant.

Part of a master-planned industrial campus

Building D has a rear-load design with 36-foot clear heights, 32 fully equipped dock positions (expandable to 50), a 60-foot speed bay and 62 trailer stalls. The facility is adjacent to the interchange of Interstate 70 and Ohio Highway 310, providing immediate access to major transportation routes.

The facility is the third development at The Cubes at Etna. The industrial campus occupies 305 acres of former farmland that CRG and its capital partner, LXP Industrial Trust, acquired in 2018. The property received a 15-year, 100 percent tax abatement.

The master-planned park also includes a 1.2 million-square-foot build-to-suit fulfillment center for retailer Kohl’s, that came online in 2020. A separate 1.1 million-square-foot speculative distribution facility, known as Building E, was completed in late 2022 and leased to a manufacturing tenant for a new distribution center.

All together, including the buildings at The Cubes at Etna, CRG has developed more than 53 million square feet of industrial projects nationwide. The Cubes is the company’s national industrial development platform.

Columbus industrial supply exceeds demand

Spec industrial deliveries in Greater Columbus in the third quarter of 2024 upped the market’s vacancy by 60 basis points, with overall vacancy now at 7 percent, according to CBRE data. However, buildings under 100,000 square feet were less available for lease, marking a 2 percent vacancy rate.

Vacancies were up even though construction activity dropped in Q3, with four industrial developments adding 2 million square feet to the market, CBRE reports. The completed square footage was down by 22 percent quarter-over-quarter and 50.4 percent year-over-year.

Besides Building D at The Cubes at Etna, other developments in greater Columbus have been fully leased recently, including Building A at Canal Pointe Industrial Park, Building 1 at Silicon Heartland Innovation Park, and 885 Stelzer Road. Also, 1050 Gateway Drive is 82 percent leased.

The post CRG Lands Full-Building Tenant Near Columbus appeared first on Commercial Property Executive.

The expansion, part of a $7 billion investment, marks the network-neutral interconnection and hyperscale edge data center company’s continued presence in Central Ohio’s digital infrastructure.

The campus will feature eight AI-ready data centers when fully built-out, delivering a potential 800 MW of scalable capacity across 2 million square feet.

“This new 800 MW data center campus will help us meet the growing demand for AI-ready infrastructure,” Chris Heinrich, chief revenue officer at Cologix, told Commercial Property Executive.

Central Ohio is a premier area for data center expansion thanks to its strategic location and robust infrastructure, Heinrich explained. “The region’s accelerating tech ecosystem and highly skilled workforce make it an ideal hub for innovation and growth. Breaking ground in 2025, this campus will mark the next step in our commitment to driving innovation and enabling our customers’ digital transformation.”

READ ALSO: Getting in the Heads of Data Center Tenants

Heinrich said Cologix recognized Central Ohio’s potential over a decade ago, identifying it as a strategic hub for digital growth. Since then, it has become the largest colocation provider in the region.

Cologix operates four data centers in Columbus with a combined footprint of 500,000 square feet and 80 MW of power.

“This area is rapidly becoming the digital heartland for tech businesses,” Heinrich said. “As demand for AI-ready infrastructure grows, Cologix sees even more opportunities to expand its colocation and interconnection footprint to help power customers across North America.”

Columbus’ data center market expansion

The Columbus data center market has experienced tremendous growth over the last five years, far exceeding the national average, according to Andrew Batson, head of U.S. data center research for JLL.

Across colocation and hyperscale facilities, the Columbus market has grown from 160 MW in 2019 to 2,100 MW in 2024, increasing 13 times in just five years.

“Columbus has many advantages working for it: abundant and affordable land, power rates below the national average, proximity to the national long-haul fiber-optic network, a growing labor pool, and a central Midwest location with seamless transportation options,” Batson said.

Before the surge in data center development in Columbus several years ago, the region had excess power capacity and offered relatively quick connections to the grid, Batson added. “Power capacity has become more constrained, and connection lead times have increased. Still, the current conditions in the region are on par with what data center developers and operators will find in other markets across the US.”

Columbus began to grow at scale in the late 2010s as a hyperscale market. Similar to the growth trajectory of other data center markets, one large hyperscale investment attracted other hyperscalers, which in turn attracted a number of colocation providers.

Columbus has since grown into a complete data center ecosystem with over 2.1 GW commissioned facilities, a trained data center labor force, and roughly 6 GW of land-banked sites.

Vantage Data Centers is another firm that has invested in the Columbus area. Last month, the company made a $2 billion investment and broke ground on a 192-megawatt campus dubbed OH1.

The facility will be more than 1.5 million square feet on 70 acres in New Albany, a suburb northeast of Columbus. Upon completion, it will total more than 1.5 million square feet and be designed to achieve LEED Silver certification.

The post Cologix Plans $7B Data Center Campus appeared first on Commercial Property Executive.

Vantage Data Centers has entered the Midwest with a $2 billion investment. The company has broken ground on a 192-megawatt campus, with Tuner Construction serving as general contractor.

Dubbed OH1, the facility will be situated on 70 acres in New Albany, a suburb northeast of Columbus, Ohio. Upon completion, it will total more than 1.5 million square feet.

Designed to achieve LEED Silver certification, OH1 will be constructed to meet the company’s sustainability blueprint, which is targeting net zero operational carbon emissions by 2030. The campus will employ more than 1,500 people through construction and long-term operations.

Ohio is the fifth market in Vantage’s national hyperscale portfolio. The first building on the new campus is slated to open in late 2025.

Alongside the development, Vantage is partnering with the New Albany Community Foundation and the Columbus State Community College Foundation. It aims to positively impact the community through influencing its talent, health, housing affordability, job creation and education.

Earlier this year, Vantage completed a $9.2 billion equity raise to fund its growth nationwide and in the EMEA region. The fundraise was oversubscribed by $2.8 billion, a sign of global investors’ bullishness on the data center industry. Vantage estimated that the funding would drive some $30 billion of additional development, accelerating its capacity to partner with global hyperscalers.

The post Vantage Starts $2B Ohio Data Center Project appeared first on Commercial Property Executive.

EQT Exeter has purchased the first phase of The Hub at London Groveport, an industrial park in the Columbus suburb of Lockbourne, Ohio, as well as a 6.7-acre trailer parking lot. A joint venture between Xebec and Heitman sold the assets with assistance from JLL.

The Hub’s Phase One comprises 1.6 million square feet across four industrial buildings that debuted in 2021. Two more facilities are expected to come online during Phase Two.

The portfolio includes a cross-dock facility measuring approximately 1 million square feet and three rear-load properties totaling 531,495 square feet.

All four buildings have 32-foot clear heights and a total of 277 dock-high doors and 10 grade-level doors, while truck courts’ depth ranges between 60 and 130 feet. The portfolio was 91 percent leased at the time of sale, Amazon being one of the two tenants on the roster.

READ ALSO: Industrial Deal Volume Down, Prices High

Carrying the addresses 6201 and 6322 Collings Drive, as well as 1260 and 1302 London Groveport Road, The Hub is 10 miles southeast of downtown Columbus. Rickenbacker International Airport—one of the world’s largest cargo-dedicated airports, handling monthly more than 30 million pounds—operates 3 miles away.

The JLL team representing the seller included Senior Managing Director John Huguenard, President Jody Thornton, Managing Director Ed Halaburt and Director William McCormack.

EQT Exeter expands near airports

As of October, EQT Exeter had more than $30 billion in global equity under management. Across the globe, the company owns and operates north of 2,000 assets spanning more than 375 million square feet—and it keeps expanding its industrial portfolio.

Just this week, EQT Exeter paid $143.2 million in an all-cash transaction for the Phoenix Gateway Portfolio. Link Logistics sold the six industrial buildings encompassing 860,200 square feet, also located in an airport submarket.

Despite sizable pipeline, Columbus’ industrial vacancy remains stable

The industrial investment volume in Greater Columbus reached $571 million year-to-date as of August, according to a CommercialEdge report. Assets traded for $82 per square foot, below the national average of $132 per square foot.

In one of the metro’s larger transactions W.P. Carey acquired Rickenbacker Exchange at Commercial Point’s Building 2, a 1.2 million-square-foot speculative industrial facility. VanTrust Real Estate sold the asset for $94.1 million.

Greater Columbus’ vacancy rate clocked in at 4.6 percent in August, the report goes on to show. The Discovery City had the third-lowest rate in the U.S., overshadowed only by Charlotte, N.C. (4.0 percent), and Bridgeport, Conn. (4.2 percent).

One factor in Greater Columbus’ rise in vacancy can be attributed to its industrial pipeline. As of August, the metro had 8.7 million square feet of industrial space underway—representing 2.8 percent of stock, ahead of the national average of 1.9 percent, the same source reveals.

The post EQT Exeter Buys 1.6 MSF in Columbus appeared first on Commercial Property Executive.

Following its strong launch into the U.S. data center market earlier this year, Edged Energy is well underway with the expansion of that initial footprint. The firm is developing a 24 MW data center in New Albany, Ohio.

Edged Columbus is rising on a 15-acre parcel at 6525 New Albany Road E., less than 20 minutes from downtown Columbus, Ohio. Development work started earlier this year and the facility is expected to open in July 2025.

The New Albany City Council approved the $250 million project in November. The council also granted a 15-year, 100 percent real property tax abatement.

Edged Columbus, up close

The 210,000-square-foot data center will feature ultra-efficient energy systems and waterless cooling technology designed to support the demands of generative AI and advanced computing.

The ThermalWorks waterless cooling system will drastically cut energy usage and Edged Columbus is expected to save nearly 95 million gallons of water annually, compared to conventional data centers, helping to conserve water in a state where several areas are already in severe drought. The system supports densities of up to 70 kW per rack with air cooling and 200 kW per rack with plug-and-play liquid cooling integration.

Edged Energy burst onto the U.S. data center market earlier this year with plans to build four campuses, totaling nine buildings, in the Atlanta, Chicago, Phoenix and Kansas City metro areas. At the time, Edged announced that it intended to break ground on several additional sites in major U.S. urban markets in the following months, but did not specify where, till now.

Silicon Heartland

A U.S. data center overview by Newmark earlier this year highlighted Columbus—aka the Silicon Heartland—as an emerging data center market. The region’s advantages include ample availability of land, relatively low-cost power and various tax incentives.

Earlier this year, 5C Data Centers started the expansion of CMH01, its 200 MW data center in Columbus. The firm acquired a 66,000-square-foot live facility that will grow to 320,000 square feet in the next development phase. The initial 100 MW are scheduled for completion in the first quarter of next year.

The post Edged Data Centers Continues US Drive With $250M Project appeared first on Commercial Property Executive.

Alterra IOS has purchased 2222 New World Drive, a 14-acre, infill industrial outdoor storage asset in Columbus, Ohio. Transport Properties sold the asset, CommercialEdge data shows. JLL brokered the sale.

The property includes a 50,238-square-foot warehouse with 18-foot clear heights, eight drive-in doors and 3,400 square feet of office space. The facility includes a gated entrance with a 3,900-square-foot intake facility and is adjacent to 34 acres of land available for expansion.

Located within 10 miles of the John Glenn and Rickenbacker International Airports, the IOS property is rail-served by CSX, making it the largest paved rail site in Columbus. Several major thoroughfares are within 5 miles, including interstates 270, 70 and 71, as well as U.S. routes 33 and 23.

READ ALSO: Why 2024 Is the Year to Invest in Industrial Real Estate

Two months ago, Alterra purchased another IOS asset in Columbus. Star Leasing sold 4080 Business Park Drive for $6.1 million, CommercialEdge data reveals. Constructed in 1996, the property served as Star Leasing’s headquarters. With this latest purchase, Alterra now owns six such assets in metro Columbus.

A full-service trailer leasing provider signed a long-term agreement to occupy the property at 4080 Business Park Drive. The 8-acre industrial outdoor storage site comprises 20,120 square feet of warehouse space while being located near the conflux of I-270 and I-70.

Last month the company expanded its Southeast portfolio. Alterra acquired three IOS assets in metro Atlanta, boosting its footprint in the region to 23 properties. Alterra paid $22.4 million for the 28.3-acre portfolio.

Investors bullish on IOS

GreenPoint Partners CEO Chris Green underlined some of the benefits of IOS in a recent article on Commercial Property Executive. These include low ongoing capital expenditures and tripe-net, multi-year, single-tenant leases. Green also mentioned that profitability is expected to increase thanks in part to growing demand and dwindling supply.

Seizing this opportunity, Triten Real Estate Partners and TPG Angelo Gordon upsized their 2020-launched joint venture to acquire north of $1 billion in IOS assets over the next five years. The venture bought more than $500 million worth of IOS properties with an average of 18 yearly purchases since 2020.

In another recent move to capitalize on this niche market, Catalyst Investment Partners closed its Catalyst IOS Fund II with $186.9 million—surpassing its goal of $150 million. The fund focuses on densely populated, infill industrial markets with high barriers to entry.

The post Alterra IOS Expands Columbus Footprint appeared first on Commercial Property Executive.

5C Data Centers is expanding CMH01, its 200 MW data center in Columbus, Ohio. The firm acquired a 66,000-square-foot live data center that will grow to 320,000 square feet in the next development phase.

Work is underway at the 40-acre property, facilitated by a partnership between 5CDC and the local utility. The initial 100 MW is scheduled for completion in the first quarter of next year, while the first shell is fully leased and will reach its full capacity by the third quarter of this year.

CMH01, the firm’s first mega campus, is anticipated to be one of the largest data centers in the region. It will feature 42 data halls optimized to accommodate average densities of more than 500 W per square foot.

READ ALSO: AI Is Changing the Game for Data Centers

First Energy will power the development through its own substation. With additional power capacity being secured, the project will have significant potential for scalability over time.

The owner is also planning to develop a 25-acre data center in the Dallas-Fort Worth metro. That project is set to encompass 240,000 square feet of data hall space with up to 144 MW at full build-out.

Data centers on the rise

As demand for cloud and AI grows, operators are focusing on building larger developments for hyperscale users. This includes securing more extensive power resources and acquiring larger land parcels across different regions.

In September, Aligned Data Centers entered Ohio with the purchase of a 129-acre site. The Sandusky development has 1.3 million square feet available for construction and is equipped with power feeds capable of delivering up to 80 MW, expandable to more than 200 MW.

Around 27.4 million square feet of data center space were under construction as of April, according to a CommercialEdge report, while another 33.5 million square feet were in different planning stages. As of June, Columbus had 35 facilities totaling more than 7.1 million square feet completed, with 2.7 million square feet underway across six developments, the same source shows. 

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A joint venture between Industrial Realty Group and Industrial Commercial Properties has closed on a $62 million refinancing loan for Columbus Business Park, a 2.2 million-square-foot industrial facility located in Columbus, Ohio. The five-year refinancing arrangement was originated by 3650 REIT and JPMorgan Chase & Co. and replaces a previous Wells Fargo note that was set to expire in 2027, according to CommercialEdge information.

Built in 1971, Columbus Business Park underwent a cosmetic renovation in 1999. The same source reveals that the current owners purchased the property in 2004.

Last April, the financiers provided $180 million for the same borrowers for the refinancing of a six-property, 7 million-square-foot Midwestern industrial portfolio with assets located in Ohio and Michigan. ICP, based in Cleveland, has a portfolio of more than 150 properties around Ohio totaling more than 46 million square feet.

READ ALSO: NAIOP Sentiment Index Points to Rising Optimism

The warehousing and distribution facility can accommodate manufacturing-focused tenants, has 225 dock- and seven grade-level loading doors that open to an interior with 25- to 35-foot clear heights. Clothing chain Eddie Bauer has signage rights on the building’s exterior and utilizes the space as a warehouse store.

Located at 4545 Fisher Road, Columbus Business Park sits along a major industrial corridor, roughly 7 miles west of downtown. A connection to a CSX rail line is half a mile to the west, while onramps to interstates 70 and 270 are 1 mile north. Many Midwestern population hubs, including Indianapolis, Cincinnati and Cleveland, are within a three-hour drive, while Chicago and much of the Acela Corridor are roughly a day’s drive away.

Tech giants at Discovery City

Manufacturing and data center-related investments from the likes of Intel, Google, Microsoft and Honda have bolstered Columbus’ industrial market to become one of the strongest in the Midwest. The city’s vacancy rate was 2.4 percent at the end of March, the lowest in the country, CommercialEdge’s latest national industrial report reveals. The metro’s sales volume in the first three months of 2024 reached $151 million, second only to Chicago, while its under-construction industrial pipeline comprised 7.16 million square feet in March, trailing Chicago and Detroit.

Last month, W.P. Carey took ownership of Building 2 of Rickenbacker Exchange at Commercial Point, a 1.2 million square foot speculative building located in the suburb of the same name. The property traded for $94.1 million.

The post Industrial Realty JV Secures $62M for Columbus Facility appeared first on Commercial Property Executive.

VanTrust Real Estate has sold Building 2 of Rickenbacker Exchange at Commercial Point, a 1.2 million-square-foot speculative industrial building in Commercial Point, Ohio.

According to REBusinessOnline, W.P. Carey paid $94.1 million for the facility, in a transaction brokered by Colliers’ Midwest Investment Services Team. The group was led by Vice Chair Alex Cantu and Executive Vice President Alex Davenport.

Building 2’s change of hands takes place roughly two years after its completion and subsequent full lease to HanesBrands. The Columbus Dispatch reports that the deal was the biggest new industrial lease in the city that year, as the clothing brand sought a distribution center that could directly access customers around the Northeast and Midwest.

READ ALSO: EV Battery Quest Super-Charges Demand for Sites, Facilities

Building 2 is the second largest to come online at Rickenbacker Exchange, an 875-acre master-planned industrial park. Rickenbacker’s North Campus, where Building 2 lies, is a portion spanning four buildings across 320 aces. Within and around Building 2, HanesBrands has access to an exterior with 120 loading docks, four drive-in doors and 728 parking spaces, and an interior with 40-foot clear heights and 56- by 50-foot column spacings.

Building 1, a 1.2 million-square-foot facility, came online in August of 2023. Building 3, set to be the campus’ largest, will measure more than 1.5 million square feet. In contrast, Building 4 will span 238,000 square feet.

Located at 521 Exchange Way, the campus’ neighbors include facilities operated and occupied by Amazon, DHL, FedEx, Lowe’s, Walmart and Whirlpool. Building 2 and the larger North Campus are within 22 miles of interchanges to Interstates 70, 71 and 270, as well as access to a Norfolk & Southern Intermodal connection. Downtown Columbus lies 13 miles to the north, and the Rickenbacker Exchange is within a day’s drive of the Northeast and Midwest’s largest cities, which have a combined population of more than 110 million residents.

Columbus, a midwestern industrial darling

Nearly all of the Columbus industrial market’s fundamentals are among the best in the Midwest. According to CommercialEdge’s latest national industrial report, The Discovery City had a vacancy rate of 2.7 percent as of February, a pipeline of 5.6 million square feet and year to-date sales of $123 million. Part of the market’s growth comes from the chip fabrication and data center sectors, as Intel is moving forward with the development of a 1,000-acre, $20 billion manufacturing campus.

The post W. P. Carey Buys 1.2 MSF Columbus Facility appeared first on Commercial Property Executive.

IRA Capital has acquired a 237,000-square-foot life science and R&D campus in Columbus, Ohio. According to CommercialEdge data, The Inland Real Estate Group of Cos. sold the asset for $21.5 million.

The property, which came online in two phases between 1995 and 2001, last changed hands in 2005 when the previous owner purchased the facility for $47.8 million from Nuveen Real Estate, the same source shows.

The campus consists of four, three-story interconnected buildings. The property features 53,407-square-foot floorplates, five passenger elevators, controlled access and 1313 car parking spaces at a ratio of 5.5 spots per 1,000 square feet.

READ ALSO: Emerging Life Science Hubs Stake a Claim

The biopharmaceutical company Sarepta Therapeutics is the property’s anchor tenant, as the campus houses its Gene Therapies Center of Excellence. The center opened in 2021 and occupies 85,000 square feet. The company is known for specializing in genetic medicines for rare diseases. The facility is used for Sarepta’s research and development, enabling the genetic medicines’ transition from clinical-scale to commercial-scale manufacturing.

Located at 3435 Stelzer Road in the Easton submarket, the campus has access to Interstate 270 and U.S. Route 62. Downtown Columbus is less than 10 miles southwest of the property. Other gene manufacturing facilities in the metro include Abbott Laboratories and Forge Biologics.

Despite an overall slowdown in venture capital funding for life science assets, core markets continue to see a robust pipeline of lab space. Compared to the previous decade, life science developments across the U.S. account for a larger share of the overall office construction activity. Boston tops the nation, with 14.5 million square feet underway as of February, representing 5.9 percent of stock, according to a recent CommercialEdge report.

The post IRA Capital Adds Columbus Life Science Asset to Portfolio appeared first on Commercial Property Executive.

The Anchor Hocking facility in Lancaster, Ohio. Image courtesy of CommercialEdge

LCN Capital Partners has completed a sale-leaseback acquisition of the primary manufacturing and warehouse facility of Anchor Hocking LLC, in Lancaster, Ohio, near Columbus.

Simultaneously, LCN leased the 1 million-square-foot industrial facility back to the glassware company under a 25-year, triple-net lease.

The facility has three 200-ton glass furnaces and accounts for nearly 100 percent of Anchor Hocking’s production and revenue. It operates 24 hours a day and is crucial to the U.S. glass manufacturing sector, as it contains three of the 10 glass furnaces that currently operate in this country.

READ ALSO: Multistory Warehouses’ Future Is Looking Up

In a prepared statement, Jared Ciejek, a partner at LCN Capital Partners, described the property as “a highly specialized facility with a footprint unique to glass manufacturing,” adding that its sale helps Anchor Hocking unlock capital that can be re-invested into its core business.

Established in 1905 and owned over the decades by a succession of parent companies (currently Lenox Corp.), Anchor Hocking is a leading maker of household consumer glassware, as well as products for the foodservice and commercial markets.

Manufacturing comeback

A diverse user base is helping to bolster tenant demand in the Greater Columbus industrial space market, for both distribution and manufacturing space, according to a third-quarter report from JLL. The latter is highlighted by investments in auto and energy manufacturing, data centers, and Intel’s $20 billion, nearly 1,000-acre chip plant in Licking County.

However, enough space has been delivered—more than 6.5 million square feet just in the third quarter and a record 15.6 million year-to-date—that total industrial vacancy has increased by 1.3 percent quarter-over-quarter, to 6.9 percent, JLL reported.

In August, VanTrust Real Estate announced plans to start construction on a 1.2 million-square-foot build-to-suit warehouse facility in New Albany, Ohio, near the Intel campus, for Danish shipping giant DSV.

The post LCN Buys 1 MSF Glassware Factory in Sale-Leaseback Deal appeared first on Commercial Property Executive.

I 70 Logistics Center features 40-foot clear heights. Image courtesy of Hines

Hines Global Income Trust Inc., a public, non-listed real estate investment trust sponsored by Hines, has acquired I-70 Logistics Center, a 700,000-square foot industrial asset in Columbus, Ohio. The distribution center is 100 percent leased to a third-party logistics provider.

The Class A property is situated at 9157 Mink St. SW. The asset’s seller is Core5 Industrial Partners, according to CommercialEdge data.

Completed in 2023, the logistics center is located on an approximately 44-acre site. The same data source shows that the building features 40-foot clear heights, 60-foot by 53-foot, 9-inch column spacing, ESFR sprinklers, a 130-foot truck court and 490 parking spaces. I-70 Logistics Center includes dual corner office buildouts, robotics systems and 6000amp power.

READ ALSO: Hines’ Trifecta for Carbon Emissions Reduction

Situated in the Etna Township of Columbus, the property provides easy access to major distribution routes through U.S. Route 40, Interstate 70 and I-270. Downtown Columbus is a 30 minute drive west of I-70 Logistics Center.

The distribution facility is also in proximity to two U.S. rail providers, reaching some 60 percent of the nation’s population within a one-day drive.

JLL Capital Markets‘ Ed Halaburt and Ross Bratcher represented the seller in the deal.

Columbus-area industrial activity

According to a recent CommercialEdge industrial report, the Columbus area ranks as the tightest industrial market in the Midwest, with a 1.3 percent vacancy rate at the end of the second quarter. Further, the city also recorded the highest rent growth in the region for the first time in several quarters, with a 5.1 percent year-over-year increase as of June.

Not far from its headquarters, DHL Supply Chain is expanding its footprint with a 755,000-square-foot distribution center. Located in the Violet Township in the Columbus area, the building is slated to open in the second quarter of 2024.

VanTrust Real Estate is also investing in the region, with the upcoming groundbreaking of a 1.2 million-square-foot build-to-suit warehouse facility in New Albany, Ohio. It is the first of multiple projects that the company is expected to complete at the New Albany Tech Park development.

The post Hines Trust Buys 700 KSF Columbus Property appeared first on Commercial Property Executive.

DHL’s upcoming facility in Violet Township, Ohio, is shaping up southeast of Columbus. Image courtesy of DHL

DHL Supply Chain is expanding its footprint in its home state of Ohio with a new 755,000-square-foot distribution center in Violet Township, not far from its U.S. headquarters in Westerville, in the Columbus area.

The distribution center, slated to open in the second quarter of 2024, will bring DHL’s total footprint to more than 15 million square feet in Ohio and more than 161 million square feet across the U.S. The company has already broken ground on the facility, which is expected to create approximately 200 jobs for the region.

Carl DeLuca, DHL’s head of real estate solutions for the Americas, said in a prepared statement that the company’s in-house real estate platform, DHL Real Estate Solutions, designs its warehouse facilities so their customers can focus on their core business needs.

The warehouse will prioritize digitalization investments as well as sustainable building planning and construction. The facility’s sustainable features will include LED lighting with smart controls, clerestory windows for natural lighting, electric vehicle charging infrastructure for commercial vehicles and cars, solar PV-ready roof, native landscaping and rainwater harvesting for landscape irrigation.

DHL credited JobsOhio, OneColumbus, ODOT, Fairfield County and Violet Township with helping to bring the warehouse to the site.

DHL’s expansive growth

The global logistics and express shipping company has been actively expanding throughout the U.S. Earlier this month, the DHL eCommerce division opened a new LEED Silver-certified, 352,000-square-foot distribution center in Chicago.

Late last month, DHL announced it was investing $192 million to expand its Americas global hub based at the Cincinnati/Northern Kentucky International Airport to support its growing aviation fleet. The LEED-certified, carbon-neutral aviation maintenance hangar will have 305,000 square feet and provide additional space for storage, offices, three maintenance parking gates and eight new aircraft gates.

Also, on the aviation side of the business, DHL Express opened its new $84.5 million Americas hub based at the Hartsfield-Jackson Atlanta International Airport in early July. The 100,000-square-foot hub will have direct connections between 19 cities in the Southeast and key global markets, including Europe. Additional plans call for connections to Hong Kong, Mexico, the U.K. and Puerto Rico.

In June 2022, DHL Supply Chain acquired Building 5, a 979,264-square-foot industrial property in the 2.4 million-square-foot master-planned Whiteland Exchange Business Park at I-65 and Whiteland Road in Whiteland, Ind., from Jones Development.

Several months later, in October, DHL Supply Chain announced it was providing warehousing and logistics services to U.K.-based Boohoo at a 1.1 million-square-industrial facility in Elizabethtown, Pa., owned by First Industrial Realty Trust. DHL’s support allows the fashion retailer to offer next-day service to the New York City metro region.

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A rendering of the DSV’s new facility at the New Albany Tech Park. Image courtesy of VanTrust development

VanTrust Real Estate is set to begin construction later this month on a 1.2 million-square-foot build-to-suit warehouse facility in New Albany, Ohio, the first of multiple projects anticipated at its New Albany Tech Park development within the New Albany International Business Park.

The developer will build the facility for use by Danish shipping giant DSV, which will serve as the first tenant on the property. The facility, hitherto the largest component of the 482-acre, 5.5 million-square-foot development and the most sizeable of its kind in New Albany, is scheduled for delivery in December 2024.

In 2022, VanTrust broke ground on Innovation II and New Albany 525, two properties within the New Albany International Business Park, measuring 302,400 square feet and 524,500 square feet, respectively.

A park within a park

VanTrust had first announced construction of the industrial campus in July of 2022. The property is located at the intersection of Harrison and Clover Valley Roads, roughly 13 miles outside Columbus. The facility will sit within 20 miles of a population of 2.1 million residents, with a civilian labor force of 1.1 million.

The New Albany International Business Park is a 9,000-acre, master-planned mixed-use development that includes office, industrial, retail and multifamily housing. Presently, the plan has attracted more than $6 billion in investments across asset classes, and current and future tenants include Google, Meta, Amgen and American Electric Power.

READ ALSO: These Asset Classes Stood Out in DLA Piper’s Mid-Year Outlook

The building of DSV’s new digs is being overseen by Pepper Construction, RED Architects and EMH&T, which will serve as the property’s general contractor, architect and civil engineer, respectively.

The full build-out of the New Albany Tech Park will take place along four development sites totaling approximately 2.1 million square feet, with the option to add two additional phases totaling 3.4 million square feet.

Buildings in the current development area are intended for rear-loaded industrial warehousing, as well as logistics and flex offices. The speculative projects range between 60,000 and 524,500 square feet and are able to house as many as 128 dock doors, alongside four drive-in doors.

Heart of the Silicon Heartland

Once completed, the property will sit within metro Columbus’ “Silicon Heartland,” one of the largest tech-focused office and industrial districts in the Midwest, home to a 1,000-acre, $20 billion Intel manufacturing campus, which is currently underway. The Intel campus will be located adjacent to the New Albany Tech Park.

Earlier this year, Amazon Web Services paid $117 million to purchase 400 acres in New Albany, for the construction of new data centers. The acquisition was part of a recent $7.8 billion investment in Central Ohio.

The post VanTrust Lands Shipping Giant for Columbus-Area Project appeared first on Commercial Property Executive.

Grove City medical office building. Image courtesy of Anchor Health Properties

Anchor Health Properties has acquired a 38,327-square-foot medical office building in Grove City, Ohio, from Trivium Development for $10.2 million, Franklin County records show.

The purchase was financed with an acquisition loan of $6.8 million, provided by First Citizens Bank, according to the records.

Anchor Health bought the asset through its discretionary equity fund, Chestnut Healthcare Fund II, which is co-managed with Chestnut Funds. The company will provide asset and property management for the medical office building.

READ ALSO: Why MOBs Offer Healthy Investor Appeal

Trivium Development completed the two-story Class A facility in 2019. At the time of the sale, the property was fully occupied and anchored by the Grove City VA Clinic. Additional tenants include The James Grove City, which is part of the Ohio State University Comprehensive Cancer Center, as well as Fresenius Kidney Care, Central Urology Group and Columbus Nephrology.

The property is located at 5775 N Meadows Road, 11.6 miles from downtown Columbus and has access to Interstate 71. The facility is adjacent to the Mount Carmel Hospital Grove City, a full-service hospital campus which offers 210 inpatient beds. Other medical service providers in the surrounding area include Grove City Primary Care and Grove City Smiles, among others.

Engle Real Estate represented the seller in the transaction.

Growing a health-care portfolio through acquisition funds

The current transaction marks not only Anchor Health’s entry into the Columbus market, but also another acquisition made through its discretionary fund.

Anchor Health acquired several medical office buildings last year, including a property in metro Portland purchased in late December and Blue Hills Medical Center, a 47,350-square-foot facility which expanded the company’s Boston footprint.

Charlottesville, Va.-based Anchor Health expanded its portfolio in two other markets in the fourth quarter of 2022, with the purchase of a 96,357-square-foot building in metro Atlanta and a 32,886-square-foot medical office building in Delray Beach, Fla., in a joint venture with Harrison Street.

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Rickenbacker Global Logistics Park. Image courtesy of Transwestern Investment Group

Transwestern Investment Group (TIG) has acquired a 582,400-square-foot distribution center in Columbus, Ohio. Rickenbacker Global Logistics Park Rail Site 8 was purchased on behalf of a separately managed account.

According to CommercialEdge data, the previous owner of the newly completed building was Duke Realty. A Colliers Midwest investment services team brokered the deal.

The fully occupied asset is home to a single investment-grade tenant. It features 40-foot clear heights, 56-foot by 50-foot column spacing, electrically operated drive-in doors, ESFR sprinklers, 120 trailer parking spaces and 294 car parking spaces.

Situated at 1417 Rail Southern Court in the Rickenbacker Global Logistics Park, the building is next to the Rickenbacker International Airport and less than 3 miles from the Norfolk Southern Rickenbacker Intermodal Terminal. The facility provides easy access to interstates 270, 71 and 70, placing half of the nation’s population within a one-day drive.

Earlier this year, TIG acquired a 912,522-square-foot industrial property in Indianapolis, also on behalf of a separately managed account. The building is fully occupied by PepsiCo.

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2200 Douglas Way. Image courtesy of Legrand

NorthPoint Development has opened a 625,000-square-foot facility in Union, Ohio. The new distribution center is occupied and operated by Legrand, which will add more than 200 new jobs in the Dayton area and will enhance the electrical and digital solutions company’s shipment capabilities across the U.S.

According to Montgomery County records, NorthPoint sold the 86-acre development site in September 2022 to Elm Tree Funds. The same source shows that Associated Bank provided a construction loan in the amount of $32.7 million.

Located at 2200 Douglas Way, the property is close to State Route 40 and Interstate 70, providing access to Columbus and Cleveland, 3.4 miles from Dayton International Airport. Legrand’s new location is within NorthPoint’s Park 70/75, a master-planned, 400-acre industrial development, according to Dayton Business Journal. The project is set to feature some 6 million square feet of industrial space.

Legrand’s new facility will support the company’s commitment to sustainability and is expected to receive a Green Globes Level One certification. Additionally, the property’s central location, in conjunction with the firm’s existing Southern and West Coast distribution centers, will ensure a carbon emission reduction.

Ohio’s commitment to amp up manufacturing operations resulted in large projects launching, including Honda Motor Co. and LG Energy Solution’s upcoming $3.5 billion battery plant in Fayette County. Completion of the $3.5 billion project is estimated by the end of 2024.

In September 2022, Intel commenced construction on two manufacturing plants in Licking County. Production is expected to begin as soon as 2025.

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Image by EFAFLEX_Schnelllauftore via Pixabay.com

Honda Motor Co. Ltd. and LG Energy Solution have teamed up for the construction of a new battery plant in Fayette County, Ohio, to meet the growing demand for electric vehicles (EVs). The joint venture intends to break ground on the $3.5 billion project in early 2023, with completion estimated by the end of 2024.

The facility will total between 2.5 million and 3 million square feet and manufacture advanced lithium-ion battery cells exclusively for Honda’s battery-powered EVs that are sold in North America. The joint venture is looking to start mass production by the end of 2025, eventually aiming at an annual production of approximately 40 GWh.

READ ALSO: Frank Crivello on What’s Next for Industrial Real Estate

LG will retain a majority stake of 51 percent in the battery plant, while the remaining 49 percent will be owned by Honda. The partners intend to increase their overall investment in the joint venture to $4.4 billion.

Expected to create 2,200 jobs, the manufacturing facility will come online some 40 miles southwest of Columbus, near Jeffersonville, Ohio, on a 450-acre greenfield site that the partners selected in October. Later that month, the State of Ohio announced it would support the project with tax incentives and infrastructure improvements totaling more than $156 million, according to The Columbus Dispatch.

EVs creating industrial demand

This battery plant will help Honda achieve its carbon-neutrality goal to have 100 percent of its new vehicle sales be either battery- or fuel-cell EVs by 2040. Many other car makers have adopted similar targets, leading to demand increase for facilities that produce EV batteries and their components.

In October, Ascend Elements broke ground on a 500,000-square-foot manufacturing facility that will produce cathode materials, a key component for EV batteries. Earlier in the year, SEMCORP Advanced Materials Group selected Sidney, Ohio, for a 850,000-square-foot plant that would manufacture separator film, another essential EV battery component.

Major car brands looking to invest in EVs have also fed the demand for industrial space. In October, Hyundai broke ground on a $5.5 billion manufacturing facility near Savannah, Ga., while Toyota announced plans to invest another $2.5 billion into its existing battery manufacturing facility in North Carolina in August.

The post Honda, LG to Build $3.5B Ohio Battery Plant appeared first on Commercial Property Executive.

1675 Watkins Rd., Columbus, Ohio

Clear Height Properties and MLG Capital have, in a joint venture partnership, purchased a 290,573-square-foot industrial asset in Columbus, Ohio. Garrison Investment Group sold the building. The sales price was not disclosed.

The acquisition is the first deal for the joint venture as well as Clear Height’s first in Ohio.

Situated at 1675 Watkins Road, the infill distribution facility is being fully renovated. It features 34 docks, three drive-in doors and 22.5-foot clear heights.

Originally constructed in 1975, the building is on a 9.2 acre lot, according to Commercial Edge data. Garrison Investment Group acquired the facility in 2013, completing a cosmetic renovation on the property.

Located on the southeast side of Columbus, the asset is within the Watkins Road Industrial Park. The Rickenbacker air cargo airport and Norfolk Southern Discovery intermodal yard are in close proximity.

JLL’s Dan Wendorf represented the seller, while JLL’s Nick Tomasone and Joe Davis represented Clear Height.

Columbus industrial hot spot

In prepared remarks, Ryan Maher, director of acquisitions at Clear Height Properties, said that with companies like Intel and Honda/LG locating and developing in Ohio, as well as vacancy rates in the region being low, expanding to the area was a positive strategic move.

Intel’s nearly 1,000-acre site, which will hold a $20 billion project, is expected to begin the production of semiconductors in 2025. Intel is one of many companies moving large production and distribution facilities to Ohio, fueling the industrial sector’s further success in the area.

Another company seen acquiring in Columbus is Cologix. The company recently released plans to invest $150 million into a 256,000-square-foot data center. The new facility is located next to three existing facilities, also owned by Cologix.

With the announcements of large-scale investments in the area, demand for space is on the rise. In early 2022, Columbus reached a record low industrial vacancy of 1.5 percent, according to a Cushman & Wakefield report. Although this rate increased to 3.7 percent in quarter three of this year, overall industrial activity in the area remains strong and is predicted to continue a healthy course.

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Lane Bryant headquarters. Image courtesy of Tempus Realty Partners

Tempus Realty Partners has acquired a 236,090-square-foot office campus in New Albany, Ohio, for $42 million. The company purchased the property from Ascena Retail Group, the parent organization of Lane Bryant, according to CommercialEdge data.

Lane Bryant, a women’s apparel company leading in plus size clothing, is set to continue its tenancy at the campus for at least the next 20 years.

The Class A, two-building headquarters, is fully leased. Amenities include a workspace with on-site coffee shop, fitness center, walking trail, green space and a water feature.

READ ALSO: Why Office Loans Are Few and Far Between

Located at 8323 Walton Parkway, tenants are in proximity to entertainment and dining options, as well as hotel and event spaces. Route 161 is less that 1 mile off the property providing access to the Greater Ohio area.

According to the same data provider, the lot is 26 acres in size and includes 671 parking spaces.

The acquisition is Tempus Realty Partner’s sixth deal in the Columbus area. The company also owns the Offices at Polaris, acquired in September 2018 for $17.8 million, the Huntington office building, acquired in November 2021 for $6.7 million, and the Hillard industrial building, acquired in December 2020 for $5.7 million, according to its website.

Columbus rising

The Columbus metro is experiencing increases in demand for properties of all types. Technology and research companies are expanding their operations in the area, bringing an inflow of new residents and workers.

Two companies that began construction on their new Ohio projects this year include Stonemont Financial Group and Intel. Stonemont Financial Group is constructing a Columbus industrial park set to be some 859,240 square feet. Intel is developing two semiconductor manufacturing plants on a nearly 1,000-acre site in the area. The $20 billion project will bring 3,000 long-term manufacturing and engineering jobs to Columbus.

The post Tempus Acquires Ohio HQ Campus for $42M appeared first on Commercial Property Executive.

Perimeter Center. Image courtesy of Hanley Investment Group

California-based Orton Development has acquired Perimeter Center, a 139,486-square-foot retail center in Dublin, Ohio, as part of a 1031 exchange. SITE Centers sold the property for $35 million, according to CommercialEdge information.

The same data provider shows Orton financed the purchase with a $17.7 million loan from Mutual of Omaha. JLL represented the seller, while Hanley Investment Group Real Estate Advisors and ParaSell Inc. assisted the buyer.

Perimeter Center came online in 1995 at 6644 Perimeter Loop Road. Anchored by a Giant Eagle Market District grocery store, the shopping center was fully leased at the time of sale; tenants include Chipotle, Edward Jones, Sport Clips and Enterprise Rent A Car, among others. The 15.5-acre property is adjacent Interstate 270 and within 15 miles of downtown Columbus, Ohio, near numerous corporate offices and headquarters.

The Hanley Investment Group team representing the buyer was led by President Ed Hanley and Executive Vice President Kevin Fryman. The JLL Retail Capital Markets team led by Managing Directors Clinton Mitchell and Amy Sands assisted the seller.

Fryman contextualized the purchase further, telling Commercial Property Executive, “We view Perimeter Center as one of the best shopping centers in the Columbus retail market. This is because Perimeter Center is anchored by Market District, Giant Eagle’s high-end concept; one of only three Market District stores currently operating in the Columbus metro. The shopping center is located in the city of Dublin, one of the most affluent markets in Columbus.”

Columbus’ continued retail success

Amid the specter of a recession and uncompromising inflation and interest rates, retail fundamentals remain strong, with more socially oriented dining and entertainment-related businesses witnessing rapid returns to their pre-pandemic habits.

Columbus in particular is seeing strong demand in nearly all of its retail sectors, even in the face of nationwide construction delays. Much of this growth is due to the area’s emerging tech and research sectors, which culminated in Intel’s recent groundbreaking on a $20 billion chip manufacturing plant. Some 640,000 square feet of retail space will enter Columbus’ inventory by the end of the year, with rents increasing by 3.8 percent, while the vacancy rate will remain at 4.1 percent, according to a Marcus & Millichap report.

Acknowledging the strength of the Columbus retail market in the context of rising interest rates, Fryman said in prepared remarks, those properties with the best tenant mix in the best locations have been impacted the least or not at all. It is all down to real estate fundamentals: The location, the tenants and the lease terms.

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Rendering of Intel’s manufacturing plants in Ohio. Image courtesy of Intel Corp.

Intel has broken ground on the first two semiconductor manufacturing plants on a nearly 1,000-acre site in Licking County, Ohio.

The corporation announced the $20 billion project in January and has since tapped Gilbane Building Co. to handle construction work for the two chip factories. Production is expected to begin as soon as 2025.

The two plants will help boost Intel’s production of semiconductors, which have been seeing rapidly increasing demand. The two factories represent the first phase of Intel’s plans for a manufacturing campus in Ohio’s New Albany International Business Park.

According to Intel, this is the largest single private-sector investment in Ohio’s history. The tech giant’s initial $20 billion pledge is expected to create 7,000 construction jobs and 3,000 long-term jobs in manufacturing and engineering. At full buildout, the total investment could reach as much as $100 billion over the next decade, as the Silicon Heartland site can accommodate up to eight semiconductor plants.

Intel also launched the first phase of funding for its Ohio Semiconductor Education and Research Program—$17.7 million for eight proposals from leading institutions and collaborators in the state to develop semiconductor-focused education and workforce programs. In total, the company is committing $100 million for partnerships with educational institutions to build a talent pipeline and strengthen research efforts in the region.

Silicon Heartland development activity takes off

Intel’s major plans to develop semiconductor manufacturing plants have attracted plenty of attention to the area, now known as Silicon Heartland. Companies such as Air Products, Applied Materials, Lam Research and Ultra Clean Technology announced plans to move near the Intel site.

The tech corporation’s projects have also attracted more developments to the New Albany market. In July, VanTrust broke ground on an industrial project within New Albany International Business Park, next to Intel’s semiconductor manufacturing campus. Months prior, a joint venture between Lincoln Property Co. and Harrison Street announced plans for a 190-acre data center and industrial campus that’s also adjacent to Intel’s campus.

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The upcoming COL4 data center. Rendering courtesy of Cologix

Hyperscale provider Cologix plans to build a new data center in Columbus, Ohio. The company will invest $150 million for the expansion at the Worthington Woods Boulevard campus, growing its capacity by 36 megawatts.

Last year, Cologix acquired the land for its upcoming facility, situated next to its existing three data centers at 535, 555 and 585 Scherers Court in Columbus’ Worthington submarket. The COL4 Scalelogix development is planned to feature customizable configuration options and measure 256,000 square feet. COL4 will include eight data halls in total, along with rooftop platform place. Apart from construction costs, Cologix plans to use the funds to purchase new machines and networking equipment for its campus.

According to prepared statements by Cologix President & Chief Revenue Officer Laura Ortman, this is the company’s second multimillion-dollar investment in the Columbus region, following a surge of demand for cloud connectivity. Upon completion, the facility will add 15 full-time permanent jobs to the site, bringing its total employee count to 39.

COL4 will offer interconnectivity to Cologix’s existing infrastructure, allowing access to more than 45 network service providers, including the Ohio-IX Internet Exchange. Customers will also be able to access low-latency onramps to Amazon’s AWS platform and Google Cloud Platform.

The Ohio Tax Credit Authority announced it has approved a 75 percent, 10-year tax exemption for Cologix’s new project. The newly created jobs are expected to generate $1.5 million in new payroll, according to the authority, in addition to the existing $1.9 million.

Recent growth for data center real estate

Cologix followed in the footsteps of several recent massive data center investments. In December last year, the infrastructure provider announced a $1.65 billion securitization. Cologix used revenue from 17 data centers—out of a total of 40—as collateral for the transaction. The portfolio totals roughly 300,000 square feet of data center space and comprise 36.6 megawatts, with 1,064 unique customers.

In April, alternative investment firm Stonepeak Infrastructure Partners announced its successful closing of an equity recapitalization of Cologix, valued at $3 billion. The transaction was structured as a sale by Stonepeak Infrastructure Fund II LP and co-investors to Stonepeak-managed vehicles comprising existing investors in partnership with new third-party investors. Goldman Sachs acted as financial advisor to Stonepeak.

The post Cologix to Build $150M Data Center in Columbus appeared first on Commercial Property Executive.

Castings Commerce Park. Image courtesy of Stonemont

Stonemont Financial Group will break ground next month on Castings Commerce Park, a 71-acre industrial park in Columbus, Ohio, on the site of the former Buckeye Steel. The project includes three Class A industrial buildings and is expected to be delivered in the third quarter of 2023.

Designed to accommodate both a single-tenant and a multi-user layout, the 859,240-square-foot development will include a cross-doc facility, as well as two rear-load facilities ranging from 112,000 to 599,040 square feet. Each of the three buildings is planned to have above-standard clear height and parking for cars and trucks.

Playing into Columbus’ industrial boom

Located at 2211 Parsons Ave., in the South Side district of Columbus, the development will have easy access to interstates 71 and 270. Set to accommodate Central Ohio’s surging demand, the industrial park will be less than 4 miles south of downtown Columbus and less than 10 miles northwest of Rickenbacker International Airport. The developer acquired the site in July of last year using a $4.6 million loan from Veritex Community Bank that is slated to mature in October, according to Franklin County records.

In March, Stonemont announced Westinghouse35, a 230,000-square-foot industrial building in Georgetown, Texas. Moreover, the company has several other industrial projects under construction in the Cleveland area. They include a 1 million-square-foot industrial property in Shalersville, as well as a 450,000-square-foot building in Westfield Center village in Ohio.

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THRIVE | Franklinton. Image courtesy of THRIVE

THRIVE | Coworking has acquired Cova, a company operating a 7,000-square-foot flexible office in Columbus, Ohio. The space, THRIVE’s first location in the state, is part of the 840,000-square-foot mixed-use Gravity Project, owned and developed by Kaufman Development, according to CommercialEdge data. The office has been rebranded as THRIVE | Franklinton.

The newly built coworking space offers various memberships, including open desks, dedicated desks, private offices and enterprise plans, available for larger teams, as well as virtual offices and email plans. Amenities at the property include meeting rooms, event spaces, free coffee and tea, a wellness room, lots of greenery and rotating exhibitions of local artists.

Located at 470 W. Broad St., the property is less than a mile from downtown Columbus and within 3 miles of The Ohio State University, with entertainment and employment hubs nearby. Several dining places and retail options are within walking distance of the coworking space, while Interstate 71 is 1 mile southeast.

Coworking is on the rise again

In addition to the newly opened flex space, THRIVE | Coworking currently owns several office spaces across Georgia, planning to add 10 more locations across Alabama, Georgia, North Carolina and South Carolina at the end of this year and in the first part of 2023. The first locations are expected in Gainesville, Ga., and Charleston, S.C.

With the flex office market on the rise, several major coworking deals closed this year. In March, WeWork acquired Common Desk, adding 23 locations to its Texas and North Carolina portfolio. Just last week, Industrious announced the opening of another 41,245-square-foot coworking space in Washington, D.C., as part of the company’s expansion strategy.

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Huntington Center. Image courtesy of Hines

Hines’ $18 million renovation of Huntington Center, a trophy office tower in downtown Columbus, Ohio, continues to pay off, as the company successfully entices a leading national law firm to relocate to the 1 million-square-foot property. Taft Stettinius & Hollister LLP will set up shop in approximately 50,000 square feet at the skyscraper under a new long-term lease agreement.

READ ALSO: Is There a CRE Labor Crisis? Insights From the CPE 100

Located at 41 S. High St. just across from the Ohio State Capitol, Huntington Center first opened its doors in 1984 as a development project of Hines. Taft notes in a prepared statement that the firm chose Huntington Center for its overall building quality and strong amenities, which will promote collaboration and bolster recruiting and retention efforts—and that is precisely what Hines and partners Carlton Associates and Lakestar Properties had in mind when they completed the sweeping renovation of the Skidmore, Owings & Merrill-designed property in 2019. The project is proving a timely endeavor as the world now adjusts to the new normal.

“Amenities are very important to employees in their return to the office,” Tyler Steele, general property manager with Hines, told Commercial Property Executive. “People are looking for safety and security in their offices. Best in class amenities create an environment where tenants can connect in person with service providers and other business leaders.”

Modern-day workplace

Hines and partners could not have known how prescient their renovation plan for Huntington Center would be when they secured $140 million in refinancing for the project through Morgan Stanley in 2016. The team tapped Hartshorne Plunkard Architecture to spearhead the 37-story high-rise’s massive upgrade, which centered on creating an ecosystem of amenities more likely to be found in a hotel lobby or high-end residential environment.

New additions to Huntington Center, which already featured 26,000 square feet of retail space and access to a nearly 30,000-square-foot fitness facility, included The Horizon, a 6,000-square-foot lounge featuring a bar, seating and flexible conference rooms on the previously vacant 36th floor, and an adjacent rooftop terrace.

The renovation also yielded a two-story indoor green wall—the largest in the U.S. at 2,400 square feet and with 8,500 individual plants—that graces the lobby, and a full-scale elevator modernization featuring a cutting-edge destination dispatch system. All told, Huntington Center provides three levels of amenity and dining options, as well as extra offerings accessible via a sky-bridge connection to the Doubletree Suites and the convenience of underground tunnel access to the Ohio Statehouse.

Positive signs

With Taft’s new commitment, Huntington Center’s leased occupancy rate is now slightly above the historical average, which makes the building a success in an office market that continues to struggle with the ramifications of the COVID-19 pandemic.

However, the third quarter of 2021 produced encouraging indicators in metropolitan Columbus: Vacancy rates remained steady, average asking rates inched up by 5 cents and 80 percent of leases signed were new leases, according to a report by CBRE.

Downtown Columbus, specifically, is experiencing notable improvement. “The downtown Columbus office market is seeing some good activity,” Steele said. “Tenant interest is concentrated on buildings and locations with place-making amenities like retail and services that tenant employees find attractive.”

Taft is on track to relocate to its new space on three floors at Huntington Center from its current home just blocks away at 65 E. State St. in late 2022. The law firm relied on Jeff Carey of JLL for representation in the lease transaction, while Collin Wheeler and Brandon Ellis of CBRE stood in for Hines et al. Taft has a bit of history with Huntington Center, having played a role in the sale of a majority interest in the asset to Carlton Associates in 2012.

The post Hines Brings Law Firm to 1 MSF Trophy Tower appeared first on Commercial Property Executive.

1430 S. Third St., St. Louis. Image courtesy of Transwestern Investment Group

Having brought a 2.9 million-square-foot portfolio of industrial assets in the Midwest to full occupancy, Transwestern Investment Group has decided to part ways with the collection of 10 well-located buildings. TSP sold the properties on behalf of TSP Value and Income Fund II, its four-year-old discretionary investment fund, to Stockbridge for an undisclosed amount.

READ ALSO: Dream Industrial to Sell US Portfolio for $167M

With buildings located in the high-demand industrial markets of St. Louis, Indianapolis and Columbus, the portfolio turned the heads of investors eager to fortify or even establish a Midwestern footprint with a substantial collection in one fell swoop.

“There is significant opportunity for growth in secondary industrial markets across the Midwest. The location of these assets generated a great deal of interest from a wide variety of investors, some of which have not historically been interested in acquiring industrial product,” Ryan Grable, vice president with Transwestern Investment Group, told Commercial Property Executive.

Good bones

5345 Decatur Blvd., Indianapolis. Image courtesy of Transwestern Investment Group

The portfolio includes seven buildings in St. Louis and Indianapolis that Transwestern had acquired as part of a 2.5 million-square-foot portfolio purchase in 2017, just months after the launch of Fund II. The metropolitan St. Louis properties, which account for a total of approximately 909,500 square feet, consist of: 1430 S. Third St. in St Louis; 1602 Park 370 Court in Hazelwood, Mo.; 1600 Park 370 Place & 4774 Park 370 Blvd. in Hazelwood, Mo.; and 1010 Turner Road in St. Peters, Mo. TIG’s 2017 purchase had also included the facility at 6030 Gateway Drive and 5345 Decatur Blvd., accounting for an aggregate 467,600 square feet in metropolitan Indianapolis.

Rounding out the portfolio TIG just sold to Stockbridge are the three Columbus assets, which TIG had acquired on behalf of Fund II from a joint venture between Singerman Real Estate and Green Door Capital in 2019, the same year Fund II completed its final closing. The 1.5 million-square-foot group of facilities, which had been only 50 percent occupied at the time of purchase, consists of 3800 Lockbourne Industrial Parkway, 4150 Lockbourne Industrial Parkway and 3880 Industrial Parkway.

6030 Gateway Drive, Plainfield, Ind. Image courtesy of Transwestern Investment Group

While the new owner of the portfolio will benefit from the steady income that comes with a full tenant roster, there remains an option for upside potential in the not-too-distant future. The weighted average lease term among the 24 tenants at the newly traded portfolio is just over 3 years, and in-place rents are approximately 8 percent below today’s market rates.

Michael Caprile and Zachary Graham of CBRE represented TIG in the transaction with Stockbridge, and it is no surprise that the team welcomed such strong interest from investors.

The industrial sector in America’s heartland is thriving. As noted in a first quarter 2021 report by CBRE, “The Midwest industrial market continued to see new construction activity, occupancy growth, sustained low vacancy, and steady average asking lease rates despite tough economic conditions.”

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1675 Beggrow St. Image courtesy of Whiplash

Whiplash, a City of Industry, Calif.,-based provider of omnichannel logistics services, has opened its second fulfillment center in the Columbus, Ohio, industrial market, as it responds to e-commerce growth fueled by the COVID-19 pandemic.

READ ALSO: Prologis Inks Southeast Los Angeles Full-Building Lease

The new, 261,400-square-foot facility is located at 1675 Beggrow St., in Lockbourne, Ohio, in the heart of the Columbus industrial zone. Company officials stated the addition of the second Columbus-area property will help support the robust expansion of fulfillment capabilities in the region, including value-added services such as kitting, specialized packaging and returns processing.

The location enables Whiplash to provide competitive two-day ground coverage to major metropolitan areas. A multi-client operation, the new asset will offer another strategic gateway to the Northeast, Southeast and Midwest for more seamless, end-to-end fulfillment.

Whiplash noted continuing demands of the pandemic have also necessitated more warehouse space to keep workers socially distanced and safe as well as to manage the peaks in e-commerce demand that have become the ‘new normal.’

Company growth

The Columbus facility is the first addition of 2021 but continues the company’s expansion within the past year, including two new omnichannel distribution centers in the Seattle and Savannah, Ga., markets. All are located near major transportation hubs and gateways for reduced transit times and lower shipping costs designed to meet escalating demands for the company’s wrapround 3PL services and advanced omnichannel fulfillment.

The acquisition also comes one month after the company, previously known as Port Logistics Group, rebranded as Whiplash. The rebranding followed Port Logistic Group’s April 2019 acquisition of Whiplash Merchandising Inc. and its evolution from port-centered logistics management to streamlined direct-to-consumer (D2C) and retail omnichannel fulfillment services.

The new 360,000-square-foot distribution center in Savannah was announced in early December and was designed to service e-commerce and retail clients requiring D2C fulfillment and store deliveries. The new property, located close to the port of Savannah and major highways, supplements an existing Port Logistics Group facility located about 5 miles away, which had opened in 2016.

In late November, the company, still operating as Port Logistics Group, had opened a newly built 265,000-square-foot facility in Sumner, Wash., outside Seattle. The warehouse was designed to provide pick and pack operations for D2C fulfillment and store deliveries for a growing number of emerging brands and leading retailers. The property is located between the Seattle and Tacoma, Wash., ports.

Whiplash now operates 18 distribution centers with more than 6.5 million square feet of space across the U.S. The company is planning further expansion in the Savannah market and is also considering additional Midwest locations but has not made any final decisions.

In addition to Columbus, Savannah and the Seattle/Tacoma markets, the current U.S. lineup includes:

• New York/New Jersey—four facilities, 1.1 million square feet;
• Los Angeles/Long Beach, Calif.—eight facilities, 3.6 million square feet;
• Jacksonville, Fla.,—one facility, 283,000 square feet.

Whiplash also has two partner network properties outside the U.S.—Saint-Laurent in Quebec, Canada, with a 25,000-square-foot partner facility, and Peterborough, U.K., with a 50,000-square-foot partner facility.

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Image by Akela999 via Pixabay

Cologix Inc. is planning to extend its cloud-first strategy in Columbus, Ohio, by expanding its local campus with a new addition. The company just acquired a parcel of land adjacent to its existing Columbus site where it will erect COL4, a new 250,000-square-foot data center that will increase capacity by 40 megawatts.

COL4 will sprout up on the newly acquired land at the intersection of Alta View Boulevard and Worthington Wood Boulevard, practically abutting the complex containing COL1, COL2 and COL3. The carrier-neutral data center will feature a Tier III design and will include roughly 117,000 square feet of raised floor space across six data center halls. Cologix has not disclosed specifics about development costs, however, the project’s realization will come at a premium. “Our investment in the new facility will run into the hundreds of millions of dollars. The final costs will reflect our client’s needs,” Bill Fathers, CEO, Cologix told Commercial Property Executive.

READ ALSO: What’s Ahead for Data Centers in 2021

Cologix felt compelled to secure land for COL4 as a result of a surge in demand at its Columbus campus, which consists of a 32 mw hyperscale edge facility that the company completed only two years ago. According to a press statement, the cry for more accommodations can be traced to the fact that Google Cloud, AWS and Facebook have established a major presence in the Columbus area. The COVID-19 health crisis also played a role in the surging demand for additional data center accommodations.

“The pandemic accelerated a number of the trends that were already driving explosive growth in the data center market in Columbus,” Fathers said. “Cologix has operated the main network traffic hub in the market for several years and we have seen a considerable increase in traffic volumes driven by an increase in uptake of public cloud type services as well as bandwidth-intensive applications like telehealth, remote workers and Artificial Intelligence.”

Moving up on the Radar

Columbus is a rising star in the data center world for a bevy of reasons. As noted in a 2021 report by Cushman & Wakefield, the Columbus market offers a few advantages, including affordable land, which eases the cost of entry for developers; an ecosystem providing access to local, long-haul and international networks; incentives; and comparatively lower taxes.

Cologix is not finished growing in Columbus just yet. “This is our fourth facility, and we would expect to continue to the rate of expansion by adding a new similar-sized facility every few years,” Fathers added.

The post Cologix to Build 250 KSF Data Center in Columbus appeared first on Commercial Property Executive.

Image courtesy of FedEx

Monmouth Real Estate Investment Corp. has expanded its footprint in metropolitan Columbus, Ohio, with the acquisition of the brand-new industrial facility at 8341 Industrial Parkway in Plain City. Monmouth acquired the approximately 488,000-square-foot property, which is fully leased to FedEx Ground, from 42 Real Estate in a transaction valued at $73.3 million.

READ ALSO: How Automation Will Fill Supply Chain Gaps: Report

Located roughly 20 miles north of Columbus, 8341 Industrial delivered early in the fourth quarter of 2020 as a build-to-suit project constructed for FedEx by 42 Real Estate. “We came to agreement on that [Plain City] deal over two years ago, so we locked that in before a lot of this continued cap rate compression,” Michael Landy, CEO of Monmouth Real Estate Investment Corp., said during the company’s fiscal year-end 2020 earnings conference call on November 24.

Acting through its subsidiary, 42 Columbus LP, 42 Real Estate had acquired the land to develop 8341 Industrial for roughly $10.5 million in June 2019, according to Union County records. At 100 acres, the site provides ample opportunity for expansion. FedEx occupies the property under a 15-year lease agreement.

Ohio on radar

The industrial sector in the Greater Columbus area is faring relatively well, fundamentals suggest. Year-over-year absorption climbed from roughly 1.7 million square feet to 3.4 million square feet in the third quarter of 2020 and the average triple-net asking rate increased from $4.07 to $4.22 per square foot, according to a report by Lee & Associates. Additionally, a bevy of new projects currently analyzing their market options serves as positive indication of the Columbus area’s resilience. Investors are taking note. “The strength of investor interest and demand will also be on display as premier properties are put on the sales block in the near term,” according to the Lee & Associates report. “Even through this unprecedented year, it is a great time to be an industrial owner, especially with the competitive advantages this region has to offer.”

Monmouth’s acquisition of 8341 Industrial came nine months after the public equity REIT purchased a newly constructed industrial facility totaling 153,000 square feet outside Columbus in Lancaster. The nearly 25-acre property is 100 percent net leased to Magna Seating of America Inc.

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Residence Inn by Marriott Columbus Airport. Image courtesy of First Hospitality

First Hospitality has opened the 122-key Residence Inn by Marriott Columbus Airport. The property is the first extended stay hotel at John Glenn Columbus International Airport, that also acted as partner for the development, together with Rockbridge Capital.

The property is located at 4294 International Gateway, next to Fairfield Inn & Suites by Marriott, at the junction of interstates 670 and 270, roughly 7 miles northeast of downtown Columbus. The pet-friendly property offers studios and one-bedroom suites with full kitchens. The airport terminals are within walking distance.

The Residence Inn provides a complimentary shuttle bus for the transportation of guests within a five-mile radius, including to the Easton Town Center, a prominent shopping destination in the area. Shared amenities include an indoor pool, fitness center, grocery service and lobby bar. The hotel operates with strict health and safety standards set by the company.

Earlier this year, Hilton broke ground on its first property under the new Tempo brand, with First Hospitality as co-owner. The hotel in Louisville, Ky., comprises 130 keys, across six stories.

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General Motors Stamping Plant Site, Ontario. Image via Google Globe View

Industrial Commercial Properties LLC will soon take on the task of redeveloping the 270-acre former General Motors Stamping Plant in Ontario, Ohio. The company has just completed an agreement with the City of Ontario to transform the property into the Ontario Commerce Park, which, at full build out, will encompass 2 million square feet of manufacturing and distribution space at a development cost of approximately $100 million.

READ ALSO: Industrial, Data Centers Strongest Sectors in CBRE’s 2021 Forecast

Carrying the address of 2525 W. 4th St., the former GM Stamping Plant sits in North-Central Ohio roughly 65 miles north of Columbus and features more than 145 acres of developable land, a 50-acre concrete slab and roughly 70 acres of green space. “There are very few, if any, sites this size with this type of infrastructure—utilities, power, rail, highway access, etcetera—that are development ready in the entire state,” Chris Salata, chief operation officer at Industrial Commercial Properties LLC, told Commercial Property Executive.

Chris Salata, COO, Industrial Commercial Properties. Image courtesy of Industrial Commercial Properties

GM opened the first of several buildings on the site in 1955 and called the complex home until closing the doors in 2010. The next several years saw the property change hands a few times, with Racer Trust taking ownership in 2011, and quickly selling it to Brownfield Communities Development Co. in late 2012. And in 2018, after demolishing most of the buildings for a planned business park BCDC, under the name Ontario Business Park LLC, sold the asset to the City. Now ICP is wasting precious little time moving forward with the creation of Ontario Commerce Park. The company has already signed its first tenant, specialty film producers Charter Next Generation, which inked a long-term lease to occupy a 45,000-square-foot building erected in 1984. “The initial buildout of the former press prep building will be a multimillion-dollar investment between ICP and Charter Next Generation,” Salata noted. Charter Next Generation will open at the Ontario Commerce Park in March 2021.

Answering demand

ICP’s redevelopment of the former GM Stamping Plant appears to be a timely undertaking, as the industrial sector continues to gain strength amid the global pandemic. “The increased velocity in e-commerce and the uptick in manufacturing has created a strong demand for large-format industrial facilities, and we are fortunate to have a site here in Ontario that can accommodate that kind of product in very short order,” said Salata. And as noted in a third quarter report by Colliers International, Central Ohio can expect continued activity in coming months as COVID-19 fuels growth in the industrial sector.

ICP, which counts industrial property rehabilitation as one of its specialties, is also looking into building a 200,000-square-foot industrial facility at the Ontario Commerce Park. “ICP is currently pursuing incentives at the state and federal level to assist in the construction of the speculative facility,” added Salata. “It is our hope that we will be in a position to start on that building sometime in the summer of 2021.”

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TownePlace Suites Columbus North-OSU, Upper Arlington, Ohio. 

A joint venture comprised of Crawford Hoying and Shaner Hotels recently completed the development of TownePlace Suites Columbus North-OSU in Upper Arlington, Ohio. The 119-key property is part of Crawford Hoying’s Westmont at The Lane mixed-use development.

Carrying the address of 1640 W. Lane Ave., the Marriott International-branded TownePlace Suites sits just two miles from the Ohio State University Campus and roughly five miles north of downtown Columbus in the burgeoning Lane Avenue corridor.

READ ALSO: Keeping Hospitality Alive During a Pandemic

“The Lane Avenue corridor is the City’s most rapidly evolving commercial district. This transformation has enhanced the area’s vibrancy and appeal, providing new dining, retail, housing and service options,” according to the City Manager’s June 2020 update on the Lane Avenue Planning Study Report.

TownePlace Suites is one of only two lodging destinations in the community. The five-story hotel offers amenities such as a business center, fitness facility, nearly 1,000 square feet of meeting space and the TownePlace Suites’ signature In a Pinch market.

Despite interruptions as a result of the pandemic, Crawford Hoying and Shaner Hotels managed to deliver TownePlace in short order, having commenced construction on the project in July 2019. Shaner is also serving as operator of the property.

FIT FOR SURVIVAL

Every segment of the hotel sector has suffered the consequences of the COVID-19 pandemic; however, the extended-stay model is proving to have the upper hand.

“In order to manage costs, many higher-end hotels have suspended certain amenities that normally support a premium rate. Current travelers are instead focusing on sanitized accommodations and features such as kitchens that support physical distancing,” according to a third quarter 2020 report by Marcus & Millichap.

Such options have significantly pushed down foot traffic —by as much as 50 percent in April and May—at some extended-stay hotels and other higher-cost brands, the report stated. “Amid fewer differentiating services and greater financial disruptions, guests are zeroing in on the bottom-line room rate.”

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Any Effler, Vice President, Bellwether Enterprise. Image courtesy of Bellwether Enterprise

Bellwether Enterprise has selected Andy Effler as the new vice president and loan originator in the company’s Columbus, Ohio, office. He brings more than six years of experience to the position.

Prior to joining the company, Effler was a senior vice president at JLL. During his six-year tenure he worked with organizations across the country on leasing and purchasing decisions within their office portfolios as an office tenant representative, with a portfolio of 300 companies and 4.5 million square feet. Additionally, he completed more than $250 million in transaction volumes during four years of productions. Last year, he was part of the JLL team working on behalf of Candid Co. in its headquarters move to the historic Dispatch Building in downtown Colorado.   

Andy Effler holds a bachelor’s degree in business administration and finance from the University of Toledo. He is a volunteer in the Columbus Rotary club.

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Kenneth Bowen, Senior Vice President, Grandbridge Real Estate Capital. Image courtesy of Grandbridge Real Estate Capital

Grandbridge Real Estate Capital has hired Kenneth Bowen as senior vice president in the commercial mortgage loan origination division. He will be based in the company’s Columbus, Ohio office and  will also serve as its manager. His responsibilities will include originating notes from FHA, Fannie Mae, Freddie Mac and other institutional lenders.

Before joining the company, Bowen started his own firm, Bowen Real Estate Advisory Services, in 2016. Prior to that, he had a three-year stint as senior vice president at Oak Grove Capital, before it was acquired by JLL in 2015. Bowen spent 17 years at RED Capital Group, holding multiple senior positions such as president & head of multifamily mortgage production and senior managing director.

During his more than 38 years of experience in the industry, Bowen was involved in owning and operating residential assets. His background also includes working as an appraiser for 10 years. Bowen holds a bachelor’s degree from Yale College.

In 2018, Grandbridge promoted Matthew Rocco to the position of president. He has been with the company for 20 years, serving as senior and executive vice president and national production manager.

The post Grandbridge Strengthens Columbus Loan Origination Team appeared first on Commercial Property Executive.

Image via Pixabay.com

Monmouth Real Estate Investment Corp. has acquired a newly built 153,000-square-foot industrial facility in Lancaster, Ohio, for $17.9 million. SunCap Property Group sold the asset, according to Fairfield County records. Magna Seating of America, a subsidiary of Magna International, has signed a 10-year net lease for the building.

The developer broke ground on the building eight months ago. First Commonwealth Bank provided an $11.7 million construction loan, public records show. Magna’s initial investment for the property was $60 million. This marks the company’s fifth manufacturing facility in the state. Located at 747 Mill Park Drive, the property sits on roughly 25 acres, close to U.S. Route 33. Downtown Columbus is some 28 miles away, while Rickenbacker International Airport is 20 miles from the facility.

This is not the first time Monmouth acquired a SunCap property. In 2018, the REIT paid $61.1 million for a 373,750-square-foot industrial asset in Atlanta. That facility is net leased to FedEx for 15 years.

The post Newly Built Ohio Facility Trades for $18M appeared first on Commercial Property Executive.

6999 Alamo Downs Parkway, San Antonio. Image via Google Street View

The Arden Group is the recipient of a two-part, $163 million loan package from CIT Bank and BlackRock to help it assemble a 2.1-million-square-foot, 12-property industrial portfolio across multiple states.

Both the $134.3 million senior loan from CIT and the approximately $29.2 million in mezzanine debt from BlackRock carry floating rates. The debt covers Arden’s $96 million purchase of 10 assets from Avistone LLC, as well as a recapitalization of two sizable industrial properties that Arden purchased about 18 months ago.  

Newmark Knight Frank’s Dustin Stolly and Jordan Roeschlaub arranged the transaction, along with Chris Kramer, Nick Scribani and Shervin Tork. In a prepared statement, NKF described the properties as well spread out across six industrial markets nationwide and almost 90 percent leased to more than 300 diverse tenants.

READ ALSO: Top 5 Las Vegas Industrial Completions of 2019

The financing package replaces previous CMBS debt on the 10 Avistone assets, which are located in San Antonio, Dallas, Atlanta and Columbus, Ohio, and previous bridge debt on two separate industrial properties in Philadelphia and Charlotte, N.C.

Arden bought a 608,000-square-foot industrial building in Lower Bucks County, Pa., near Philadelphia, in August 2018 for about $44.9 million. In November of that year, it purchased for $38.3 million the 393,357-square-foot Coffee Creek Industrial Business Center in Charlotte.

The former Avistone portfolio includes Creek Run Commerce Center at 460-480 Schrock Road in Columbus and West Tech Business Center at 6901-6999 Alamo Downs Parkway in San Antonio.

Tall and Wide

In a very different acquisition almost exactly a year ago, Arden and partners Silverstein Properties and Migdal Insurance bought 1735 Market St., a 54-story Class A office tower in Philadelphia, for $452 million.

Nationally, the industrial space market remains in growth mode, with about $91.7 billion in sales volume in 2019, an increase of about 17 percent over the previous year, according to a fourth-quarter report from NKF. “Investor confidence remains high, as low vacancy, strong rent growth and a paucity of modern distribution facilities continue to drive robust investment in industrial assets. As gateway markets seeing pricing rise, investors are allocating funds to emerging markets with accelerating demand,” the report states.

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DHL Supply Chain’s North American headquarters. Image courtesy of Arch Street Capital Advisors

A partnership between VEREIT and Arch Street Capital Advisors’ institutional client, Gatehouse Capital, has purchased DHL Supply Chain’s North American headquarters, a 145,000-square-foot Class A office building in Westerville, Ohio. The Daimler Group sold the property for $33.1 million, according to Yardi Matrix. Capital One provided acquisition financing.

The new owner is primarily focused on acquiring single-tenant office properties with long-term leases in place. The partnership has made $120.8 million in investments and plans to spend an additional $49.8 million in the first part of the year.

The four-story property opened its doors in February, following nearly 18 months of construction work. Located on 10 acres at 360 Westar Blvd., the structure is less than 1 mile away from the shipping company’s previous location at 570 Polaris Parkway, a 140,033-square-foot building in Westar Place Business Park. The development is 4 miles from the intersection between interstates 71 and 270. Downtown Columbus is 16 miles away.

Last spring, another Arch Street Capital client partnered with Brennan Investment Group to acquire a 1.3 million-square-foot Chicago warehouse. The property was fully leased to True Value Co. at the time of the sale.

The post Arch Street JV Buys DHL’s North America HQ appeared first on Commercial Property Executive.

Jeffrey Morris, Managing Director, Walker & Dunlop

Walker & Dunlop has continued its growth spree by acquiring MSF Real Estate Capital, an independent commercial real estate finance firm based in Dublin, Ohio, that services nearly $1 billion in life insurance company loans.

The transaction creates Walker & Dunlop’s first office in the Ohio market, which will be led by Managing Directors Jeffrey Morris and Chad Kiner, Senior Vice President Scott Moore and Vice President A.J. Mangan. The majority of MSF’s roughly $925 million in life insurance company loans will be folded into Walker & Dunlop’s servicing portfolio by the end of the first quarter.

READ ALSO: Walker & Dunlop Acquires AKS Capital Partners

The announcement comes after the fast-growing finance company snapped up AKS Capital Partners, a capital markets advisory shop based in New York City, just last week. Headquartered in Bethesda, Md., Walker & Dunlop is one of the nation’s largest commercial real estate finance firms, with a headcount of more than 800 professionals across 40 offices.

Expanding in the Midwest

Chad Kiner, Managing Director, Walker & Dunlop

Walker & Dunlop’s new office in the Columbus area will consist of a 10-person team, with plans for further expansion. Founded in 1984, MSF has tripled the size of its full-service commercial real estate mortgage banking business over the past decade. The leadership team has historically originated an annual transaction volume of between $700 and $1 billion and has closed on more than $10 billion in transaction volume during their careers.

Walker & Dunlop noted in a statement that the team’s lender relationships and track record of sourcing development, acquisition and permanent financing deals would expand the company’s market share and client base in the Columbus and Greater Ohio area.

Aside from New York City, Walker & Dunlop has augmented its nationwide platform since 2018 by adding new capital markets teams in Chicago, Philadelphia, Houston, Boston, New Orleans and, through the acquisition of iCap Realty Advisors, Atlanta. The company has also made significant additions in Washington, D.C., New Jersey and California.

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The Shops at Worthington Place. Image via Google Street View

Direct Retail Partners has acquired The Shops at Worthington Place, a 139,283-square-foot, Class A retail center in Worthington, Ohio. JLL worked on behalf of the buyer to secure acquisition financing. Direct Retail received a three-year, floating-rate loan from Bayview Asset Management.

Located at 7227 N. High St. on roughly 16 acres, the asset is at the intersection between Interstate 270 and N. High St., which has a traffic count of 228,000 vehicles per day. According to JLL, 94,400 residents with an average annual household income of $97,065 live within a 3-mile radius of the property.  

Completed in 2011, the shopping center is part of a larger mixed-used asset that includes a 190-unit community. At the time of the sale, Worthington Place was 92 percent leased to various tenants, including Panera, Orvis, First Watch and Lume Family Eyecare, among others. The center is shadow-anchored by Kroger.

The JLL team that arranged the financing was led by Managing Directors Mark Brandenburg and Tim Jordan. In July 2019, Jordan also secured a $108.4 million construction loan for a mixed-use Dallas development, slated for completion in 2021.

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Ben Struewing, Vice President of Leasing and Development, Duke Realty. Image courtesy of Duke Realty

Duke Realty Corp. has named Ben Struewing as vice president of leasing and development in Columbus, Ohio. Struewing previously worked for Duke Realty between 1999 and 2011, most recently in a vice president position.

In his new role, Struewing will manage all market operations, with a focus on leasing of existing properties and spotting new development opportunities. The company also added a vice president of leasing and development to its Pennsylvania team last January.

Struewing has more than 20 years of industry experience, including 12 years of activity in the Columbus market. He directly participated in the land acquisition, development and leasing of more than 11 million square feet of real estate worth in excess of $1.3 billion.

Since leaving Duke Realty, Struewing served as an executive vice president of investments for Midwest/Eastern U.S. with Hackman Capital Partners. Other executive roles included a senior vice president position with JLL. Struewing holds a Bachelor of Science degree in business finance from Miami University.

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100 East Broad St. Image courtesy of Lingerfelt Commonwealth Partners

Commercial real estate firm Lingerfelt Commonwealth Partners has purchased a 308,337-square-foot office tower in downtown Columbus, Ohio from The Cadle Co. for an undisclosed sum. Known as the Chase Tower, 100 East Broad St. was built in 1964 and rises 24 stories above the capital city. Atlantic Real Estate Capital provided financing for the acquisition.

READ ALSO: Opus to Deliver Columbus-Area Spec Industrial Space

The purchase expands the firm’s footprint in Ohio and is the 15^th national office to be operated by its affiliated property management firm, Commonwealth Commercial Partners, which most recently acquired a 730,000-square-foot office tower in Minneapolis this past summer.

Named for one of its biggest tenants, Chase Bank, the Class B office property underwent cosmetic renovations in 2002 and 2015 and also features 11,000 square feet of retail space, per Yardi Matrix data. The Cadle Co. purchased the building in 2007 from Minshall Stewart Properties for an undisclosed amount.

Lingerfelt plans to immediately launch a multi-million-dollar renovation plan at the property, which is currently 60 percent occupied. Upgrades will include a full elevator modernization, a first-class tenant amenity package, main lobby renovations, new HVAC mechanical equipment and several other upgrades to building equipment, according to the firm.

In prepared remarks, Ryan Lingerfelt, president and CIO at the company, said repositioning a building like Chase Tower in an improving office market like Columbus matches perfectly with the company’s current business strategy.

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775 Commerce Parkway W. Drive. Image via SREIT

Starwood Real Estate Income Trust Inc. has just entered the industrial sector, establishing a footprint spanning more than 4.1 million square feet of Class A assets in one fell swoop.

The non-traded REIT acquired a 95 percent stake in the 33-property Midwest Industrial Portfolio from Becknell Industrial in a transaction valued at $319.6 million.

READ ALSO: The Future of Industrial Real Estate

The Midwest Industrial Portfolio, consisting predominantly of light industrial assets, spans four of the top-20 industrial markets in the U.S. Approximately 43 percent of the portfolio is concentrated in metropolitan Chicago, 33 percent is located in the Indianapolis area and 16 percent is sited in metropolitan Columbus, Ohio, with the remaining 8 percent located in the Milwaukee area.

2240 Creekside Parkway. Image via SREIT

The list of properties includes the approximately 100,400-square-foot warehouse at 775 Commerce Parkway W. Drive, just outside Indianapolis in Greenwood, Ind., and the 125,000-square-foot building at 2240 Creekside Parkway in Lockbourne, Ohio, near Columbus.

The Midwest Industrial Portfolio is a relatively young group of properties, with an average age of roughly 14 years. The collection is currently 98 percent leased to 50 tenants and boasts an average 10-year occupancy level of nearly 95 percent. Becknell retained a 5 percent stake in the portfolio.

Rising Star

Two years into its formation, SREIT—which is managed by a subsidiary of global private investment giant Starwood Capital Group—claims ownership of a diverse portfolio of assets spanning the U.S.

Notable transactions in 2019 include the $231 million acquisition of a 1.3 million-square-foot office portfolio in Jacksonville, Fla. SREIT also partnered with DoveHill Capital Management on the $66 million purchase of the 236-key Renaissance Fort Lauderdale Cruise Port Hotel in Fort Lauderdale, Fla.

At the start of December, the perpetual-life, monthly NAV REIT’s holdings encompassed 70 multifamily, office and hotel assets valued at a total of nearly $2 billion.

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Winchester Logistics Park. Image courtesy of The Opus Group

The Opus Group broke ground on Winchester Logistics Park, a speculative industrial development in Canal Winchester, Ohio. The 814,000-square-foot project will be developed in a joint venture with AIG Global Real Estate, the real estate equity investment arm of insurer American International Group, with financing secured via Bank of Omaha. The date of completion is set for the summer of 2020. Opus tapped JLL to market the project for lease.  

The two buildings will be located on Winchester Blvd., directly off Highway 33 and near Interstate 70. The development is expected to feature build-to-suit office space, 30 docks, two drive-in doors, a parking lot for up to 202 vehicles as well as 53 parking spaces for trailers. Tenants also have access to several dining venues located next to the two buildings.  

The area has seen very little speculative industrial development despite the proximity to a strong labor market. The industrial park is 15 miles from downtown Columbus and less than 10 miles from the city’s two main airports, John Glenn Columbus International Airport and Rickenbacker Airport. Approximately 30 miles to the north, PCCP and The Pizzutti Cos. continue to expand their speculative industrial project, Rickenbacker West. 

The post Opus to Deliver Columbus-Area Spec Industrial Space appeared first on Commercial Property Executive.

River & Rich  Photo courtesy of Castco

Six months after completing River & Rich, a mixed-use property in the Franklinton neighborhood of Columbus, Ohio, Casto has signed a lease with Yellow Brick Pizza. The retailer, which will be using the space to launch its third restaurant in the metro, will occupy 2,900 square feet on the corner of Rich Street and Lucas Street starting spring 2020. The other two Yellow Brick Pizza locations are in Olde Town East and Victorian Village.

River & Rich is located at 230 W. Rich St. in an Opportunity Zone and was completed around the same time Casto purchased Knights Inn Hotel in Heath, Ohio. In addition to its 230 units, the community provides 24,000 square feet of retail space and a 300-space public parking garage. Roy G. Biv, a non-profit art gallery, was the first tenant to occupy part of the retail space at River & Rich upon its opening.

According to Yardi Matrix data, the property provides one- and two-bedroom apartments with asking rents ranging from $1,301 to $2,353 per month. The property was 75.2 percent occupied as of September.

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Rickenbacker II & III, Columbus Ohio. Rendering courtesy of PCCP

PCCP and The Pizzuti Cos. have joined forces for a second time to develop a speculative industrial project in southeast Columbus, Ohio. The two companies first partnered for the development of Rickenbacker West I, an 802,390-square-foot speculative building at 1827 Beggrow St. in the Rickenbacker West Industrial Park.

Dubbed Rickenbacker West II & III, the new complex will be located adjacent to CreekSide Industrial Center—an international, multimodal logistics hub around Rickenbacker International Airport and the new Norfolk Southern intermodal terminal. The Class A industrial facility is fully entitled, and construction is currently underway.

Upon completion, slated by mid-2020, Rickenbacker II & III will consist of two buildings totaling 539,094 square feet on nearly 40 acres. Specifically, the 277,692-square-foot Rickenbacker II will occupy nearly 17 acres, and the 261,402-square-foot Rickenbacker III will be situated on nearly 23 acres. Both developments will feature 32-foot clear heights, secure truck courts, ESFR sprinkler system, LED warehouse lighting and ample car and trailer parking.

Pizzuti has developed more than 12 million square feet of industrial product within the Rickenbacker submarket, the region’s largest industrial submarket, counting 78 million square feet. The company built more than 50 million square feet of industrial, office, hospitality, retail and residential developments across the Midwest and Southeast regions of the U.S.

The greater Columbus industrial market totals more than 244 million square feet and counts nine consecutive years of positive net absorption. Its abundant workforce, low cost of labor, favorable real estate tax abatement programs paired with optimal positioning which enables to access 60 percent of the U.S. within a one-day drive, are drawing institutional capital.

The post PCCP, Pizzuti Kick Off 539 KSF Facility in Ohio appeared first on Commercial Property Executive.

Courtyard Columbus-Dublin. Image courtesy of Commonwealth Hotels

Commonwealth Hotels has closed its first acquisition in Columbus, having added the Courtyard Columbus-Dublin to its nationwide portfolio. The hotel management company, which manages two other Courtyard hotels in Ohio, decided to purchase the Dublin asset due to its accessible location. The 147-key hotel is within 12 miles of several of Columbus’ most popular attractions, including The Columbus Zoo, Nationwide Arena, MAPFRE Stadium,  several golf courses as well as dining venues. Muirfield Village Golf Club is also only a few miles from the hotel.

In addition to the usual accommodation, The Courtyard Columbus-Dublin at 5175 Post Road encompasses three event rooms totaling more than 1,200 square feet, a bistro offering a Japanese breakfast as well as a fitness center with cardiovascular equipment and pool.

The acquisition brings Commonwealth Hotels’ nationwide portfolio to 48 properties with more than 5,600 guestrooms. At the end of last month, the company was tapped to manage a soon-to-open SpringHill Suites by Marriott hotel close to Indianapolis Airport.   

The post Commonwealth Hotels Enters Columbus Market appeared first on Commercial Property Executive.

34 S. Third St. Image via Google Street View

JLL Vice President Andy Effler, Senior Vice President Dave McKee and Managing Director Paul Tingley have represented Candid Co., in a lease transaction in downtown Columbus. The teeth-aligning company will be expanding from its office at 107 S. High St. to 33,258 square feet at 34 S. Third St. CBRE Senior Vice President Greg Thomas and Associate Brandon Ellis arranged the deal on behalf of landlord Capitol Square, bringing the historic Dispatch Building to full occupancy.

The headquarters move is scheduled to take place in the fall. Candid will join tenants such as the Ohio Chamber of Commerce, The Dispatch Printing Co. as well as Candid’s real estate division, Capitol Square Ltd.

According to Yardi Matrix data, the building features five stories and includes a total of 67,000 square feet of office space. Originally completed in 1925, the asset underwent renovations in 2003 and 2016. Last fall, CBRE Market Leader Michael Copella told Commercial Property Executive that interest in the Dispatch Building has been very strong following the completion of upgrades and especially after having attracted the Ohio Chamber of Commerce.  

The location of the Dispatch Building provides tenants with access to a number of shopping, dining and entertainment venues, including Columbus Museum of Art and Ohio Theatre. The building can be reached via Interstate 71, which is a few blocks away.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.      

The post Candid to Relocate Columbus HQ appeared first on Commercial Property Executive.

366 E. Broad St. Image courtesy of CBRE

First Vice President David Hartsook from CBRE’s office in Columbus, Ohio, has negotiated the sale of the historic 29,672-square-foot Carlile Patchen & Murphy LLP building in downtown Columbus. The buyer worked with Senior Vice President Todd Schiff from Robert Weiler Co. The new owner intends to renovate the asset and, according to Franklin County records, received a $4.3 million loan from Finance Fund Capital Corp.   

Located at 366 E. Broad St., the three-story property was completed in 1926 and designed by the architectural firm Richards, McCarty and Bulford in a neo-classical style. Initially owned by the Ohio State Life Insurance Co., it was sold to a local leasing company which rented the asset to a number of tenants during a more than twenty-year period. The seller, an affiliate of Carlile Patchen & Murphy LLP, acquired the asset in 1986 and invested in renovations, while maintaining the original architectural features.

Carlile Patchen & Murphy LLP worked with CBRE Senior Vice President William Whipple in order to relocate their office. The law firm will be the anchor tenant at the property located at 950 Goodale Blvd. in the Grandview Yard starting May 2020.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

The post CBRE Brokers Columbus Office Sale appeared first on Commercial Property Executive.

4400 S. Hamilton Road. Image via Google Maps

Industrial Commercial Properties has acquired a 570,000-square-foot former Sears distribution center in Groveport, Ohio. Cleveland-based ICP has acquired four Ohio properties from Sears since 2014, counting the Groveport facility—the Sears retail building at the former Randall Park Mall in North Randall, the former Sears store at Midway Mall in Elyria, which includes a freestanding Sears Auto Center, and a former Kmart store in Streetsboro.

The 42.8-acre site at 4400 S. Hamilton Road is adjacent to Ohio 33/Southeast Expressway and barely more than a mile from its interchange with Interstate 270, Chris Semarjian, owner of ICP, told Commercial Property Executive. The facility, which features 30-foot clear ceiling heights and cross-docking, has been unused for the past three to four years, Semarjian said. The acquisition also includes a full automation package of equipment, conveyors and racking, according to ICP. The new owner plans to subdivide the property.

Large spaces are tight

4400 S. Hamilton Road interior. Image courtesy of Industrial Commercial Properties

Bulk industrial space—properties of 100,000 square feet or larger, with minimum 28-foot clear ceilings and built within the past 15 years—in the Southeast metro Columbus submarket has a total vacancy of 7.9 percent on an inventory of 43.6 million square feet, according to a first-quarter report from Cushman & Wakefield. The average asking rent is $3.58 per square foot per year. 

“Big (distribution) spaces in Columbus are rare right now,” Semarjian told CPE. “There is a … regional demand for logistics facilities and limited availability. The property is situated in an active industrial corridor and a new 200,000-square-foot preleased building is nearing completion next door. Our property lends itself well to two tenants and there has already been substantial interest in this asset,” he added.

Last October, Stuart Eisenberg and David Berliner of BDO highlighted the imminent closure of 142 Sears stores in a commentary on the challenges facing bricks-and-mortar retail. They noted that while strategies exist on paper for “reimagining” shopping malls, obstacles include adequate capital and practical experience in executing these substantial changes.

The post ICP Buys Former Sears Distribution Center in Metro Columbus appeared first on Commercial Property Executive.

3880 Groveport. Image courtesy of Transwestern Investment Group

Transwestern Investment Group has acquired a three-property, 1.5 million-square-foot industrial portfolio in Columbus, Ohio, on behalf of its TSP Value and Income Fund II, from a joint venture between Singerman Real Estate and Green Door Capital.

Earlier this month, TIG raised $200 million to start the TSP Value and Income Fund II, which is targeting a 12.5 percent or higher net IRR for investors.

“The portfolio fits with the fund’s strategy to acquire undervalued assets in infill, last-mile locations,” Chris Sterling, TIG’s vice president, told Commercial Property Executive. “Columbus is a key e-commerce and logistics market that continues to outperform the national market. The portfolio has one of the only bulk availabilities in the market and will be poised to take advantage of these strong market fundamentals.”

The trio of bulk industrial buildings in the portfolio consists of the 706,162-square-foot building at 3880 Groveport Road; a 403,122-square-foot building at 3800 Lockbourne Industrial Parkway; and the 398,471-square-foot building at 4150 Lockbourne Industrial Parkway. The properties feature clear heights ranging from 22 to 24 feet and have more than 400 trailer storage spaces and over 500 car parking spaces combined. TIG now plans to make several cosmetic improvements on all the properties in the portfolio.

“The Columbus market continues to outperform the national market, with overall market vacancy at 4.5 percent and strong year-over-year rent growth at 5.9 percent,” Sterling said. “The acquisition will take advantage of a tight submarket with limited bulk availabilities and a limited construction pipeline through the lease-up of 3880 Groveport, which is one of the only bulk options currently in the market.”

Increasing industrial demand

According to Sterling, Columbus’ central location is ideal for e-commerce and logistics companies and that makes these properties in demand.

“The properties benefit from their proximity to major transportation infrastructure, which includes Rickenbacker International Airport, the Norfolk Southern Intermodal Park and Interstate 270,” he said. “The properties are located inside of I-270 and are true last-mile locations that will benefit going forward as last-mile becomes even more critical for tenants.”

HFF’s Kurt Sarbaugh and Robin Stolberg represented the seller in the transaction. The firms’ debt placement team of Ken Martin and Brian Carlton represented the owner.

The post Transwestern Buys 1.5 MSF Industrial Portfolio in Columbus appeared first on Commercial Property Executive.

733 Hebron Road. Image via Google Street View

Casto has acquired the Knights Inn Hotel in Heath, Ohio, and plans to replace it with a retail development. The company, together with Heath City officials, will begin demolition at the site on April 12. The process is scheduled for completion by the end of the second quarter.

The property spans 4 acres at 733 Hebron Road, off State Route 79 and is part of a strong retail corridor. Adjacent to the property is an American Freight Furniture and Mattress store and next to it is the Southgate Corners Shopping Center. The site offers high traffic counts and excellent visibility.  

As conditions at the property deteriorated, numerous complaints were filed with the former Knights Inn Hotel between 2016 and 2018, according to Newark Advocate.

“Quite a while ago, this property was a real asset to the community,” Heath Mayor Mark Johns said in a prepared statement. “In more recent years, it became quite the opposite. It became a drain on city resources and often an eyesore on Hebron Road, a major transportation route through the city.”

Heath, located approximately 30 miles from Columbus, is part of the Columbus 2020 economic development program, having attracted a number of investors and businesses during the past years. One of them is Ohio Pack, which last year began operations at its recently completed, $25.4 million plant.

The post Casto Acquires Ohio Hotel, Plans Redevelopment appeared first on Commercial Property Executive.

Molly Leach, Vice President, CBRE

CBRE Columbus has promoted Molly Leach as vice president. Leach has been with CBRE for almost five years, holding the positions of senior associate and brokerage associate. She is the company’s youngest member to hold the position of vice president.

Leach specializes in health-care, dental and office properties, representing clients such as Mount Carmel Health System, Central Ohio Primary Care, Ohio Gastroenterology Group, Physicians Realty Trust, OSU Internal Medicine, Mount Vernon Dental, and several independent practices within the central Ohio market.

CBRE’s new VP brings more than 10 years of commercial real estate industry experience. Prior to joining the company, Leach was a property manager at NAI Ohio Equities, and managed an extensive portfolio of medical office spaces. She also worked on a property management team, where she represented clients such as The Daimler Group, Healthcare Realty Services, Central Ohio Neurological Surgeons, Columbus Oncology & Hematology Associates and Mount Carmel Health System. Before that, she served as maintenance coordinator for Colliers International and marketing specialist for Crawford Hoying.

Image courtesy of CBRE

The post CBRE Columbus Appoints Company’s Youngest VP appeared first on Commercial Property Executive.

Rendering of Rickenbacker West I

Quaker Distributing, a large beverage distributor, has signed a 60-month, full-building lease at Rickenbacker West I, an 800,000-square-foot Class A facility in Columbus, Ohio. The Pizzuti Cos. recently completed construction on the industrial asset, which is subject to 15-year, 100 percent real estate tax abatement.

Located at 1901 Beggrow St., the facility is in the metro’s southeast industrial submarket, near Rickenbacker International Airport. Nearby major transportation routes include Interstate 270 and State Route 317.

Quaker Distributing is set to relocate from their current 700,000-square-foot facility in April. The company wanted to remain in the same submarket but needed a larger building that can accommodate future growth. Rickenbacker West I can be expanded to 1 million square feet. The building features precast concrete panel construction, 48 dock doors in a cross-dock configuration, 36-foot warehouse clear height, energy-efficient LED lighting and parking for 300 trailers and 218 cars.

CBRE’s Michael Mullady, Matthew Lehman and Joseph Kimener brokered the deal. CBRE is also in charge of leasing efforts at Jacquemin Logistics Center, another Ohio asset owned by The Pizzuti Cos.

Image courtesy of CBRE

The post Quaker Distributing Signs Long-Term Lease at 800 KSF Facility appeared first on Commercial Property Executive.

Rick Trott, Jeff Carey, Kevin McGrath

After announcing that the company will be undergoing a transformative reorganization at the beginning of the year, CBRE has promoted Rick Trott, Kevin McGrath and Jeff Carey to senior vice presidents in the company’s Columbus, Ohio, office. The three commercial real estate experts cover sectors such as office, industrial, leasing and development.

McGrath and Trott specialized in industrial and logistics, bringing to their positions a thorough knowledge of the central Ohio industrial market. Trott has more than 25 years of industry experience, specializing in industrial sales, leasing, land development and brokerage. He is a Certified Commercial Investment Member (CCIM) and Society of Industrial and Office Realtors (SIOR) designee, as well as the former president of the Ohio Chapter of SIOR.

Prior to joining CBRE, McGrath spent six years with Cassidy Turley, where he was involved in the sales and leasing of industrial properties. His area of expertise includes site selection, financial analysis, labor analytics, supply chain consulting, tax incentive negotiation and project management. McGrath, too, is a SIOR and a CCIM designee.

Carey brings more than nine years of experience in commercial real estate sector. He specializes in office properties and he is a member of CBRE’s law firm practice group, which is a collaborative team of local law firm market experts, backed by the company’s researchers, service lines and consulting groups. Carey is a graduate of Miami University of Ohio.

Images courtesy of CBRE

The post CBRE Makes Promotions at Columbus Office appeared first on Commercial Property Executive.

Rendering of the Homewood Suites and Hilton Garden Inn in Easton Ohio

PACE Equity has completed funding for the largest new PACE construction project in Ohio—a 175,000 square-foot, 240-key Homewood Suites and Hilton Garden Inn within Easton Town Center in Easton, Ohio. The development is expected to cost $47.5 million, with PACE securing 22 percent of the capital stack as well as an additional $26.3 million. Developer Middletown Hotel Management Co. Inc. will cover the rest of the construction costs.

“Integrating green building strategies into the design and construction of the Homewood Suites and Hilton Garden Inn makes good business sense and PACE Equity is helping us meet our clean energy goals,” said Har Bhatnagar, president & CEO of Middletown Hotel Management Co., in a prepared statement.

The sustainable features that make up the upcoming hotel include:

• a highly optimized HVAC system which includes energy recovery make-up air technology and a geothermal system
• high-performance building envelope
• LED lighting for the interior and exterior
• low-flow plumbing fixtures

The building is expected to consume 32 percent less energy and have a utility cost of around $1.61 per square foot.

Rendering courtesy of PACE Equity

The post Largest New PACE Construction Project in Ohio Receives Funding appeared first on Commercial Property Executive.

Adam Rath, Founder, Rath Equity

Cincinnati is part of the wave of Midwestern secondary markets that are racking up significant growth in the industrial sector, primarily due to the booming demand for distribution facilities triggered by the online commerce boom. In 2018, roughly 6.3 million square feet of industrial space was delivered in the metro, more than half of it coming in the form of speculative development, according to a recent report by Cushman & Wakefield. Even so, vacancy during the fourth quarter of 2018 remained below 3 percent.

The office sector shows similarly strong fundamentals as it appears to be near a peak, reported Adam Rath, founder & owner of Rath Equity. The company started operating in the Cincinnati area since last year and is now focused on growing its base of industrial and office clients. In a wide-ranging conversation with CPE, the entrepreneur touched on the trends, challenges and opportunities in the metro’s commercial real estate market.

What is your general view of the office sector? What are the main trends?

Rath: The major factor contributing to a strong office and industrial market in Cincinnati is a strong local economy and revitalized downtown that has aided in the ability to retain educated workers and have accelerated a strong economic growth. The unemployment rate has compressed to under 4 percent.

The Cincinnati office sector is currently strong and healthy. In the last few years, we have seen rising rents and vacancies going down. Also, sales are strong but appear to be reaching a peak at both cap rates and price per square foot.

What about the industrial market?

Rath: The Cincinnati industrial sector is very strong. We are experiencing some of the lowest levels of vacancy in 15-20 years. The return of manufacturing and the explosive growth of the e-commerce industry have contributed to a strong lease-up. The more notable tenants in the market have been Amazon, Hayneedle and Wayfair. Thus, the vacancy rate has dipped to 3 percent and is causing a major uptick in new construction to meet the demand. Key indicators—5.7 million square feet of absorption, year-over-year rent growth at 9 percent.

Tell us about the challenges you see in today’s market.

Photo of Cincinnati skyline by Tanner Daniels on Unsplash

Rath: The major challenge we are faced with today is economic uncertainty in the next one to three years. We have seen record growth/investment over the last few years and debt limits starting to reach pre-recession levels. Most people in the industry are starting to feel a pullback. The majority of the investors I speak to feel a pullback is needed to bring pricing within limits to deploy capital. This economic uncertainty should provide an opportunity for investment. 

What are the trickiest aspects of being a medium-sized company?

Rath: Rath Equity was created to be a boutique investor-friendly brokerage and built to be able to adapt and pivot as the market dictates. The trickiest aspects are identifying and using the best processes/technology we can to provide the best services to our clients. Silicon Valley has been trying to disrupt the real estate industry over the last decade, so every day there is a new shiny program that is the savior for brokerages. I’ve spent time chasing these programs. However, the only way to guarantee success is to pull up your sleeves and put in the time/effort over the long term. 

How does technology fit into Rath Equity’s operations and services?

Rath: We must find creative ways to stay a step or two ahead of the national firms. In my opinion, the only way to do this is taking advantage of technology and be fast. We’ve used creative tech to market listings directly to the prospects—Google AdWords, 3D tours etc. We also use top-of-the-line industry management software to provide fast, accurate and clean reports. Using these have been advantages that increased the ROI for both the client and the brokerage.

What was the most unexpected thing about the business in 2018?

Rath: The most unexpected thing about Rath Equity in 2018 was the amount of growth we had in the year. 2018 was the first full year in business after we got through the red tape/start-up phase and started working on our growth. We grew tremendously in both sales, management and leasing. We have a network of clients throughout the country and when they understood our model, they wanted to work with us. 

What are the company’s goals for 2019?

Rath: The main goals for 2019 are to improve on processes and procedures to best support our clients. The recent growth has been great, but our goal is to always strive to see how we can be better and improve to best meet their needs. We would not be in business if we were not the best option for the client. Therefore, being a smaller brokerage, we have to be in front of the technology curve.  

Are you looking to expand to new markets?

Rath: Our current markets in Cincinnati and Columbus, Ohio, keep us very busy. Therefore, I don’t see a benefit to try and break into a new market without having a critical mass. We will see what 2020 brings.

How do you see the market evolving in the year ahead?

Rath: We all wish we had our crystal ball to see what the future holds in commercial real estate. The future holds many variables that we can all speculate on—more construction, tenant improvement, land, steel cost that will factor decisions for growth and relocation. My investors and I are looking at opportunities much harder to make sure the deal makes sense, whereas before we might have taken bigger risks. We passed on a few deals anticipating we are at a peak and we will see a pullback. 

In my opinion, I see older, well-located buildings being redeveloped into new, trendy opportunities. In the last few months, a majority of the tenants have been wanting to be in this trendy environment. The issue people are running into with these redevelopments is parking. In the past, office buildings’ square-feet-per-employee ratio was approximately 250. Now, we are seeing 150-200 square feet to one employee. Past buildings were not built to handle these parking ratios and owners need to get creative.  For the buildings with tighter parking ratios that we manage, we have discussed adding parking decks at a cost of approximately $15,000 per space. This will be a significant investment to add a few spaces, so we are looking at alternative ideas to meet these needs.             

Image courtesy of Rath Equity

The post Driven to Succeed: An Emerging Brokerage’s Story appeared first on Commercial Property Executive.

Wesco Distribution Center

Third Coast has purchased Wesco Distribution Center, a 33,197-square-foot industrial/office property located in northeast Columbus, Ohio, in a 1031 exchange.

The asset, which carries a triple net lease, sold for $3.4 million. The property carries a cap rate of 7.93 percent, with more than four years of remaining lease term. Wesco International Inc., a global distributor of electrical products, will continue to occupy the property.

Completed in 2000 and renovated in 2007, the asset encompasses 4.2 acres. Located at 2256 Citygate Drive, Wesco Distribution Center is near the interchange of interstates 670 and 270, and John Glenn Columbus International Airport is within 3 miles. Downtown Columbus is within 8 miles of the property and the Easton Town Center shopping complex is within a 10-minute drive. Tenants surrounding the property include FedEx Ship Center, U.S Postal Service, Trane Supply and McNaughton-McKay Electric.

Daniel Zimmerman of B+E sourced the 1031 exchange buyer for the sale of the property.

Image courtesy of B+E

The post Distribution Center in OH Acquired in 1031 Exchange appeared first on Commercial Property Executive.

2221 Schrock Road. Image via Google Street View

MS Consultants Headquarters

Location: 2221 Schrock Road, Columbus, Ohio

Price: $8,049,277

Building Size: 38,907 square feet

Property Type: Office

Year Built: 1999

Highlights: The property sits on 2.5 acres and was expanded and renovated in 2006. It faces Sharon Woods Metro Park and can be easily reached from Interstate 270. It features a triple-net lease until 2027 as the tenant, MS Consultants, entered into a sale-leaseback with the seller in 2011. The property’s cap rate averages 8 percent.

Contact: Robert Bender of Fortis Net Lease and Michael Fennessy of Dietz Commercial; Tel.: 248-254-3406 and 248-646-6247

643 E. 71st St. Image via Google Street View

Champlain Court

Location: 643 E. 71st. St., Chicago, Ill.

Price: $1,700,000

Building Size: 29,550 square feet

Property Type: Multifamily

Year Built: 1926

Highlights: This 37-unit property is located in Park Manor, on the south side of Chicago and features one- and two-bedroom units. It provides convenient access to the Loop, which is 9 miles away, the Midway International Airport as well as interstates 90 and 94. The University of Chicago, Jackson Park and the south shores of Lake Michigan are within a two-and-a-half mile radius. In addition to the residential component, the property also encompasses four retail spaces of approximately 1,000 square feet each.

Contact: Paul Proano of Coldwell Banker Commercial; Tel.: 312-860-4043

4860 Donald Ross Road. Image via Google Street View

4860 Donald Ross Road

Location: Palm Beach Gardens, Fla.

Price: $10,000,000

Building Size: 25,708 square feet

Property Type: Mixed-use

Year Built: 2009

Highlights: The property consists of a Walgreen’s store and eight office units encompassing more than 11,000 square feet. It is located in an area which expects a 34 percent population growth within 1 mile radius within the next 4 years. Right across the street is Alton Town Center, a 350,000-square-foot mixed-use development. The retail store features a ground lease with very rare 10 percent increases every 10 years.

Contact: Gabriel Britti, Ronnie Issenberg and Ricardo Esteves of Marcus & Millichap; Tel. 786-522-7000.

65 Willowbrook Blvd. Image via Google Street View

Willowbrook Office Building

Location: 65 Willowbrook Blvd., Wayne, N.J.

Price: $8,350,000

Building Size: 132,000 square feet

Property Type: Office

Year Built: 1982

Highlights: The building encompasses nine stories, the first three being used as parking lot. More than 90 percent is vacant, which allows the future buyer to turn the space into a multifamily or hotel project. The building was completed renovated in 2008 when a new roof was added, together with HVAC systems and parking deck, among other improvements. Located across from Willowbrook Mall, Costco, HomeGoods, Target, The Home Depot and several other retailers, the property can be easily accessed from Interstate 80. New York City is approximately 30 miles away.

Contact: Fahri Ozturk and Richard Gatto of Marcus & Millichap; Tel.: 201-742-6100

270 Dairly Road. Image courtesy of JLL

Maui Marketplace

Location: 270 Dairy Road, Kahului, Hawaii

Price: Unpriced

Building Size: 262,978 square feet

Property Type: Retail

Highlights: Alaska Permanent Fund Corp. is selling the six-building retail property centrally located in the town of Kahului near the airport bypass. Tenants include Old Navy, Pier 1, Pictures Plus and Petco as well as casual dining options such as Starbucks, Burger King and Jamba Juice.

Contact: Tom Lagos and Patrick Toomey of JLL Capital Markets; Tel.: 213 239 6178 and 213-239-6223.

All information is property of the respective brokerage firms or broker.

The post On the Market: 5 Interesting Listings for November appeared first on Commercial Property Executive.

Michael Copella, market leader, CBRE. (Image courtesy of CBRE)

Columbus has started to reap the fruit of ranking as one of the fastest-growing Midwestern metros during the last five years. As its economy has been steadily growing—unemployment reached 3.8 percent at the end of August, according to the Bureau of Labor Statistics—more businesses have been expanding their presence in the metro. Additionally, the city has become one of the top locations worldwide for internet cloud operations.

Despite ups and downs, development activity in both the residential and office sectors picked up significantly post-recession, with the most dynamic activity in urban submarkets. Construction pace is expected to speed up as developers and investors start to take advantage of the “opportunity zones” legislation which recently designated 44 such locations across the metro.

Within the trend of overall growth, certain areas have in fact been making “bold moves,” Michael Copella, market leader with CBRE, told Commercial Property Executive in an interview. Copella also talks about other emerging submarkets in Columbus, coworking activity and the latest office projects in the metro.

How did the “opportunity zones” program impact Columbus?  

Copella: We are bullish on what the “opportunity zones” mean for the future of office space in Columbus. While some developers and investors are waiting for further clarifications from the Treasury, others have secured sites in areas that traditionally would be passed over. The locations of many of the “opportunity zones” are especially exciting as we believe it will lead to job creation and investment near our urban core. This provides the potential for these occupiers to tap into a labor market that is being underutilized and would help aide in the overall mobility of our workforce.

What are the emerging submarkets investors should keep an eye on? 

Copella: We are really impressed with the bold moves that Dublin has made to reinvent their office product and create a vision around the future of their office market. We are keeping an eye on some of their aging office products and office parks as they could prove to be future candidates for redevelopment. In addition, Dublin’s resistance to rely on real estate tax abatements to propel development is proving to be wise as it could help spur redevelopment.

Usually, downtown areas have a major advantage in redevelopment due to their stock of historical buildings. Are there any similar redevelopments in Columbus right now?

Copella: Unfortunately most of the historical buildings have already been redeveloped as this product is the most popular with today’s office occupiers.  The ones that are under redevelopment or available for lease are experiencing a high level of interest from occupiers in the market. There are two notable projects right around our state capital which have recently been completed and the interest in these projects has been strong. One of them is the former Dispatch building on 34 S. Third St., where The Ohio Chamber of Commerce moved in this summer.

34 S. Third St. (Image via Google Street View)

What can be done to attract tenants to empty buildings in the CBD? 

Copella: That attraction needs to be driven by parking and/or a transportation solution in addition to those buildings creating an experience for the tenants that occupy space there. High-end amenities are expected by most tenants, who begin to look for an experience that mirrors that of a four-star hotel. In addition to having open floor plans, the landlords who invested in spec space that is fully built out have found that they can lease this space up quickly and sometimes for a premium price. We believe this is a real opportunity for owners to drive tenants to their buildings.

What type of out-of-state companies are moving to the metro right now?

Copella: It’s a mix of technology, health care and back office users, but it is being driven by the strong pool of talent the Columbus metro is producing with over 20,000 annual students graduating from higher education institutions each year. Chipotle is expanding its presence in Columbus by relocating employees from the shuttered operation in Denver and has plans to rapidly hire hundreds of workers. Locally, Root Insurance, which was founded in 2015, recently received a $100 million dollar investment and a valuation of $1 billion which is propelling its expansion and recently resulted in the company leasing 65,000 square feet in our CBD.

Tell us a bit about the leasing activity in the metro during the last quarter.

Copella: Following a strong first half of 2018 marked with notable construction completions and positive net absorption, the Columbus office market had a mixed third quarter as the suburban market suffered from several larger corporate relocations and consolidations where large occupiers moved from leased space to space they now own. Overall metro vacancy rates increased to 14.8 percent, but year-to-date remained positive with over 230,000 square feet absorbed.

Coworking is also gaining momentum in Columbus. Tell us more about this trend and your expectations going forward.  

Copella: It’s gained a lot of momentum in Columbus and we don’t anticipate that momentum to slow down. By the end of next year, we expect the number of coworking spaces to be over 821,000 square feet between 48 locations, which is a large increase from just 29 locations and 354,000 square feet in 2015. Industrious and Spaces have recently signed large leases in signature locations and we believe they will be excellent options for many of our small, medium and enterprise clients.

What are your predictions regarding office rents in the metro? 

Copella: For Class A and B space, we expect rents to rise as there is a shortage of desirable space in certain markets and tenants are asking for more tenant improvements which will drive up the rent. In addition, labor shortages in the construction industry have driven up new construction costs as well the cost to renovate existing office space. Lastly, the delivery of new office space has been held in check and we don’t believe we will experience oversupply of new space.

Overall, we expect the gap between the buildings that office occupiers want and the existing buildings or the ones that are at risk of becoming functionally obsolete will widen at more rapid pace.

The post Keep an Eye on Columbus’ Office Market appeared first on Commercial Property Executive.

825 Tech Center Drive

Founders Properties has paid $21.1 million for a two-property portfolio in Columbus, Ohio. The assets, Northwoods II and 825 Tech Center Drive, belonged to The PNL Cos. and were acquired via a $14.1 million loan held by Reinsurance Group of America, according to real estate data provider Yardi Matrix. NAI Ohio Equities leases and manages both buildings.

Northwoods II is located at 8101 N. High St. in the Worthington submarket and provides 114,167 square feet of office space. Built in 1988, the property underwent cosmetic renovations in 2017, a year after The PNL Cos. bought it at auction. In 2015, Wells Fargo Bank foreclosed on the $8.2 million loan that the asset was subject to.

The second asset is a three-story, 96,960-square-foot building located at 825 Tech Center Drive. It was completed in 1998 for The Daimler Group and renovated two years later, when it sold to Shaevitz Properties. In 2017, the building entered into foreclosure due to an outstanding $9.1 million loan.

Last year, Founders sold Northpointe, a 280,173-square-foot office building in San Bernardino, Calif.

Images courtesy of Yardi Matrix  

The post Founders Properties Snags Columbus Assets for $21M appeared first on Commercial Property Executive.

Richland Mall

Out of the Box Ventures, a Lionheart Capital subsidiary, has acquired the 733,633-square-foot Richland Mall in Mansfield, Ohio. The transaction excludes Sears and Avita Health Systems, which are both separately owned. The acquisition represents the company’s first enclosed mall purchase.

Located just off state highway 30, Richland Mall is the only significant retail offering within a 45-mile radius from Cleveland to Columbus. The property is along Interstate 71, the major travel route connecting the two Ohio metros. Macy’s, JCPenney, Victoria’s Secret, American Eagle Outfitters, Chuck E. Cheese’s, Bath & Body Works, Champs Sports, GameStop, Lenscrafters, Christopher & Banks and The Finish Line are among the shopping center’s tenants. 

The new owner intends to add entertainment and fitness offerings to the property. “Out of the Box is exploring green energy and other technology improvement options, and we look forward to forming fruitful partnerships with the mayor and local municipality to increase the use and appeal of the center to local residents of all ages,” said Lionheart Capital Founding Partner & CEO Ophir Sternberg, in a prepared statement.

Robert Marona, senior vice president & senior director of leasing for Madison Marquette, will spearhead leasing efforts for the mall. The CRE investment and operating company recently announced merger plans with PMRG.

Image via Google Street View

The post Lionheart Capital Subsidiary Lands 734 KSF Ohio Retail Asset appeared first on Commercial Property Executive.

759 Pittsburgh Drive

Following the $14.3 million purchase of a 127,444-square-foot property from Graham & Co. in Vance, Ala., Gladstone Commercial Corp. has acquired an industrial property in Delaware, Ohio for $8.3 million, with an initial capitalization rate for the acquisition of 7.68 percent, and an average (GAAP) capitalization rate of 9.18 percent.

According to public records, Metal Stars II LLC acquired the 14.7-acre property in 2016 for $3.3 million.  

At the time of the transaction, the asset was 100 percent occupied by Midwest Acoust-A-Fiber, a designer and manufacturer of thermal and acoustical engineering products. The company has been the sole tenant since the facility’s construction in 1990, and has expanded twice, once in 2016 and again in 2018. Simultaneous with closing, the long-time tenant executed a lease extension, bringing the remaining term of the absolute-NNN lease to 15 years.

Located at 759 Pittsburgh Drive, Midwest Acoust-A-Fiber’s headquarters is 3 miles southwest of downtown Delaware and 25 miles north of Columbus. The asset is within a mile of the Delaware Municipal Airport and very close to State Route 42.

“This quality industrial acquisition expands our presence in the target market of Columbus, Ohio, as well as our national industrial portfolio. The property is well located in the path of growth with exceptional infrastructure access, is mission critical for the tenant, and should provide our investors with long term steady returns,” said Matt Tucker, Gladstone Commercial Corp.’s senior managing director of the Northeast/Midwest region, in a prepared statement. 

Image via Google Maps

The post Gladstone Commercial Corp. Acquires Fully Leased OH Property appeared first on Commercial Property Executive.

Rendering of HKT Teleservices’ new office

CBRE has assisted HKT Teleservices in the relocation of the company’s U.S. headquarters from Dublin, Ohio, to a larger space in Grove City that will accommodate its growth. HKT’s new engagement center will include 65,000 square feet.

Located at 3400 Southpark Place, the firm’s new office will be near the junction between interstates 71 and 270, and less than 10 miles of downtown Columbus. The location will facilitate an easier commute for many of HKT Teleservices’ 500 employees. The newly constructed building includes a cafeteria, game room and several other amenities. HKT’s former 50,000-square-foot office was located at 5200 Rings Road, roughly 20 miles north.

CBRE Senior Vice President Todd Greiner worked on behalf of the tenant in the lease transaction. Airbnb, Mapfre Insurance and HomeAdvisor are among HKT’s largest clients, according to thisweeknews.com.  

Last year, CBRE facilitated the sale of a 1.1-million-square-foot office complex in Dublin to a Group RMC Corp. affiliate. The company paid $77 million for the portfolio.

Image courtesy of CBRE

The post CBRE Brokers 65 KSF Office Relocation in Ohio appeared first on Commercial Property Executive.

2256 Citygate Drive, Columbus (Courtesy B+E)

The Wesco Distribution Center

Location: 2256 Citygate Drive, Columbus, Ohio

Price: $3.75 million

Building Size: 33,197 sqft

Property Type: industrial

Year Built: 2000

Highlights: the distribution center was renovated in 2007 and carries a Cap Rate of approximately 7 percent; Wesco International is the only tenant, with a 5+ years of remaining lease; the surrounding area is home to FedEx Shopping Center, U.S. Postal Service, Trane Supply and MacNaughton –McKay Electric.

Contact: Daniel Zimmerman, B+E, 305-717-8473

775 Park Ave., Huntington, New York (via Google Street View)

775 Park Ave.

Location: Huntington, New York

Price: $9 million

Building Size: 80,000 sqft

Property Type: Office

Year Built: 1988

Highlights: approximately 70 percent of the building is available for sale; the three-story property comes with premium amenities; three conference rooms, a café and pharmacy are available on site; the property spans 4 acres.

Contact: Century 21 American Homes office in Levittown, NY

4 E. 24th St., Minneapolis (via Google Street View)

4 24th St. E.

Location: Minneapolis, Minn.

Price: $2.3 million

Building Size: 17,700 sqft.

Property Type: Office/Residential

Year Built: 1914

Highlights: this three-level church can be transformed into office or residential space; it is located close to bus stations and downtown Minneapolis; it can be accessed via Interstate 94, off Hennepin Ave. N.

Contact: Edina Realty, 952-928-5563

15088 22nd Ave. N.E., Little Falls, Min. (via Google Street View)

15088 22nd Ave. N.E.

Location: Little Falls, Min.

Price: $10 million

Building Size: 12,777 sqft

Property Type: Office

Year Built: 2006

Highlights: This office building features CAD-IT, separate cold weather air conditioning unit for the IT room, electronic access, 4 zones for the air conditioning and heating, kitchn-break room with lounge area, conference room, board room, private offices as well as a 60+ cubicle-room.

Contact: RE/MAX (via Edina Realty, 952-928-5563)

4740 Dacoma St., Houston (via Google Street View)

4740 Dacoma St.

Location: Houston

Price: $1.8 million

Building Size: 13,200 sqft

Property Type: Retail

Highlights: the land surrounding the property encompasses 50,757 square feet, allowing for shopping center expansion; property is located across from Karbach Brewery and has an excellent visibility; the parking lot includes 58 vehicle spaces

Contact: Ashley Casterlin, Davis Commercial, 713-528-9776

All information is property of the respective brokerage firms or broker.

Images courtesy of B+E and via Google Street View

The post On the Market: 5 Interesting Listings for July appeared first on Commercial Property Executive.

Centerpoint #6

Sealy & Co. has added a 478,200-square-foot industrial asset to its Ohio portfolio. The commercial real estate investment and operating company recently acquired Centerpoint #6, a bulk warehouse facility in Obetz, roughly 15 miles south of Columbus.

Centerpoint #6 is located at 5465 Centerpoint Parkway, within the 239-acre Centerpoint Business Park master planned industrial complex in the Rickenbacker submarket. The tenant roster at the Class A warehouse includes Pier One, Nautilus, Avnet and fashion rental service Le Tote, which signed a lease for 250,000 square feet in 2017.

Sealy purchased Centerpoint #6 on behalf of Sealy Strategic Equity Partners LP in an off-market transaction. The company frequently snaps up assets that aren’t openly offered to other investors. As Jason Gandy, managing director of investment services with Sealy &Co., told Commercial Property Executive, the company attributes its success in sourcing off-market opportunities to its “ability and surety to close in tight time frames coupled with long-standing relationships in our markets.”

Columbus calling

The Columbus industrial market is thriving, as evidenced by the numbers. The metro area recorded positive net absorption totaling a little more than 1.5 million square feet in the second quarter of 2018, representing the sixth consecutive quarter of positive absorption, according to a report by commercial real estate services firm Colliers International. The vacancy rate was enviably low at approximately 4.6 percent.

Attracted to the Columbus industrial sector’s healthy fundamentals, Sealy re-entered the Columbus market in 2017 with the acquisition of the 652,195-square-foot Creekside IX in the city’s Southeast submarket.

While keen on Columbus, Sealy continues to eye other markets as well. “We would like to continue to grow in all our markets but in particular Dallas, Houston, Atlanta, Charlotte and Kansas City,” Gandy said. “They have the right fundamentals and industrial infrastructure that we are looking for.”

Image courtesy of Sealy & Co.

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3455 Mill Run Drive, Hilliard, Ohio

Hunt Mortgage Group has arranged a $17 million loan toward the refinancing of One Mill Run, a Class A office property in Hilliard, Ohio. MSF Real Estate Capital Inc. was the originator, with Senior Vice President Scott Moore overseeing the placement of the transaction.

The owner of the building is Canadian investor IMC Real Estate Management, which purchased the building in 2014 from Talcott Realty Investors, the same year that Hunt launched its Freddie Mac small balance loan program. The purchase price was $18 million, according to Yardi Matrix.

Recent upgrades

One Mill Run is located at 3455 Mill Run Drive on a 10-acre site off Interstate 270 and approximately 5 miles from The Ohio State University. The nine-story, LEED Silver-certified property was completed in 1989 and offers 174,323 square feet of space.

The owner has recently invested approximately $2.5 million in capital improvements, including resurfacing of the main parking lot, upgrades to the ADA ramps, security cameras, HVAC system, replacing pavers at the west entrance as well as the common area carpeting. This resulted in several leases being renewed or executed, bringing the building’s occupancy to 95 percent.

“One Mill Run is considered to be a top asset in the submarket and all eight tenants are signed to net lease terms with the majority of the tenants leases extend through 2022 or beyond,” said Gregory Cazel, managing director with Hunt Mortgage Group, in prepared remarks.

The property was subject to a $13.5 million loan issued on August 10, 2014. The originator was American National Insurance Co.

Image courtesy of Yardi Matrix

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The Shops at Worthington Place, Worthington, Ohio

The Shops at Worthington Place, a boutique mall in Worthington, Ohio, has added four new businesses to its tenant roster: Anthony Vince Nail Spa, Howard Brooks Interior Furniture Store, Burn Boot Camp and Jade Yoga and Wellness. The leases amount to 24,500 square feet and bring the center’s occupancy to 93 percent. Colliers International represented the landlord, Worthington Square Venture, in the transaction.

The property encompasses 130,000 square feet of retail and restaurant space and is home to brands such as Talbots, Orvis, Urban Baggerie, Panera Bread and Piada. In addition to the retail component, the center includes 10,000 square feet of office space and 55,000 square feet of grocery store space occupied by Kroger. First completed in the 1970s, the property was refurbished in 2011.

The entire site spans approximately 20 acres at 7227 N. High St., near the four-way junction between Highway 23 and Interstate 270. The Shops at Worthington Place is also less than 10 miles from Ohio State University. The location, along with the grocery component and tenant mix, represent three important elements key to ushering the asset into retail’s next phase.

Image via Google Street View

The post Ohio’s The Shops at Worthington Place Adds Tenants appeared first on Commercial Property Executive.

5400 Renner Road, Columbus, Ohio

NAI Hiffman and NAI Ohio Equities have represented FST Logistics in the sale of two distribution and logistics facilities in Columbus, Ohio. The assets total 356,004 square feet and are located within less than 10 miles of each other. Weston Inc. bought the properties, which will be leased back to FST Logistics. The purchase price, according to public records, was a combined $13.7 million.

“This deal offers FST Logistics the opportunity to monetize its long-term tenancy in these assets while continuing to serve its national clients’ unique and demanding logistics needs,” said NAI Hiffman Senior Vice President Ted Staszak, in a prepared statement.

One of the properties is located at 5400 Renner Road, close to Interstate 70, while the other one is situated approximately 8 miles away, at 1727 Georgesville Road. Both of them are fully occupied by FST Logistics and are approximately 15 miles from John Glenn Columbus International Airport. 

The team of brokers conducting the transaction was made up of NAI Hiffman’s Senior Vice Presidents Staszak and Pat Sullivan, together with Vice President Ryan Chambers. From NAI Ohio Equities were commercial real estate agents Curt Berlin, Blake DeCrane and Matt Osowski.

Image courtesy of NAI Hiffman

The post FST Logistics Sells 2 Ohio Assets appeared first on Commercial Property Executive.

Following an underperforming 2017, Ohio’s office market is set to recover this year, with 20 projects totaling roughly 1.8 million square feet of space scheduled for completion by year’s end, Yardi Matrix data shows. That is a whopping 106% increase from last year. The bulk of development activity is concentrated in Columbus, where completions are expected to reach 1.2 million square feet this year.

With only one building completed in the past two years, Cleveland is expected to bounce back. The market is set to add seven new office properties to its inventory in 2018. In Cincinnati, however, office deliveries have decreased in recent years. While 1.2 million square feet of office space was delivered in 2016, just a little more than 135,000 square feet is projected for to come online this year.

10. Hyland Software Headquarters – Expansion

Office development activity in Westlake, Ohio, is picking up. As we reported in March, Infinity Construction teamed up with architecture firm Vocon to develop a 100,000-square-foot office campus. In addition, Hyland Software is expanding its headquarters. The 70,000-square-foot expansion will almost double the building’s current footprint of 73,000 square feet. Located at 28500 Clemens Road, the development is scheduled for completion this month. The property will be situated roughly one mile from Interstate 90 and within walking distance of multiple public transportation options. The new office building will offer convenient access to various restaurants and hotels, including White Oaks Restaurant, TGI Fridays and Doubletree by Hilton.

9. Rumpke Headquarters

In Cincinnati, Rumpke, a waste hauling, recycling and landfill operations company, is working on a new, 74,000-square-foot headquarters at the intersection of Colerain Avenue and Struble Road. The property is subject to a 40-year unsubordinated net ground lease held by the Port of Greater Cincinnati Development Authority. The three-story building is slated for completion by the end of September. The company plans to relocate about 200 employees from its current location. The new office will be situated roughly one mile from Interstate 275 and next to Center Plaza Shopping Center.

8. Signature Square III

The third phase of the Signature Square office campus in Beachwood is set to add 78,000 square feet to the 245,000-square-foot property. Developed by Goldberg Cos., the upcoming building is expected to be completed this month and to feature 340 parking spaces. Situated on about six acres at the northwest corner of Chagrin Boulevard and Richmond Road, the four-story property will offer easy access to bus stations, Interstate 271, as well as multiple shopping options, including Pavilion Shopping Center and Village Square. The other two buildings in the Signature Square campus are owned by Forest City Realty Trust, while Goldberg Cos. will handle all property management and leasing duties.

7. 711 North High Street

The Wood Cos. and Schiff Capital Group are currently developing the 99,187-square-foot office building located at 711 N. High St., near Goodale Park and Interstate 670, with the help of a $30 million construction loan from Peoples Bank. The development, slated for completion this October, will include 8,500 square feet of retail space, 40 percent of which will be on the rooftop. The upcoming property will be situated in the vicinity of Hub Garage and Pizzuti Garage, which feature roughly 250 parking spaces, while the attached garage will have about 80 spaces. Additionally, the joint venture also plans two adjacent garage facilities that are expected to offer up to 250 parking spaces.

6. 555 West Nationwide Boulevard

Connect Realty and Schiff Capital Group’s 108,500-square-foot property in Columbus is expected to come online in October. The developers will transform the existing plant at 555 W. Nationwide Blvd. into a five-story office building. The project is part of the city’s plan to redevelop three facilities located at the western end of the boulevard. 555 West Nationwide Blvd. is located about one mile from Interstate 670, less than three miles from Interstate 71 and roughly four miles from Interstate 70. Additionally, the building will offer convenient access to the John Glenn Columbus International Airport.

5. The Offices at Pinecrest (Buildings 1 and 2)

The Offices at Pinecrest (Image courtesy of Fairmount Properties)

Fairmount Properties is currently working on the two buildings at The Offices at Pinecrest in Orange, located at the northeast corner of Harvard Road and Interstate 271. The property is part of the Pinecrest project that will include a 160-key hotel, 90 residential units and more than 400,000 square feet of dining and retail space. The developer secured a $49 million construction loan last April and selected JLL to be responsible for leasing the upcoming buildings. The Offices at Pinecrest are designed to include roughly 1,000 parking spaces, according to JLL.

4. 80 on the Commons

The upcoming 390,000-square-foot building is developed by The Daimler Group to feature roughly 174,000 square feet of office space, 21,000 square feet of retail space and 195,000 square feet of residential space. Located at 80 E. Rich St. in Columbus, the 12-story property will offer easy access to various public transportation and dining options, such as Little Palace Restaurant and Plaza Restaurant and Lounge. Additionally, 80 on the Commons will be situated near Capitol Square and the Ohio Theatre, as well as less than two miles from interstates 70, 71 and 670.

3. The Pamela Morris Center

The Pamela Morris Center (Image courtesy of CareSourse)

CareSourse plans to open its seven-story, 250,000 building in Dayton next April. The mid-rise is located at the southeast corner of North Jefferson and East First streets, on the site of the former Petterson Co-op High School. The nonprofit already owns two other office buildings in Dayton, the 150,000-square-foot at 220 E. Monument Ave., delivered in 2002, and the 325,000-square-foot at 230 N. Main St., completed in 2008. CareSourse selected Danis to develop the new property, which is expected to house about 800 workers.

2. OhioHealth – Office Campus

OhioHealth – Office Campus (Image courtesy of OhioHealth)

With three office buildings in the state, two of which are located in Dublin and one in Delaware, the healthcare not-for-profit company broke ground on a new, 270,000-square-foot campus in Columbus. The garden-style four- and five-story development, scheduled for completion by the end of the year, will be situated on at the southeast corner of West North Broadway and Olentangy River Road. The building is expected to include a 1,350-space garage, connected to the main building by an elevated and covered walkway.

1. Hamilton Quarter – Big Lots Headquarters

The Daimler Group currently has three projects under construction in the state, two of which are on this list, including the largest office development in Ohio. Located on 25 acres at 4976 E. Dublin Granville Road in Columbus, the 300,000-square-foot property is designed to meet LEED standards. The upcoming Big Lots headquarters is expected to feature more than 1,000 parking spaces and to house roughly 800 employees. Daimler plans to deliver the three-story building this July. The property will be situated roughly five miles from Interstate 270 and approximately 10 miles from John Glenn Columbus International Airport.

Data sourced from Yardi Matrix consists of office completions of over 25,000 square feet in the following markets: Cincinnati, Cleveland-Akron, Columbus, Dayton, Toledo and Youngstown. 

The post Top 10 Office Projects Under Construction in Ohio appeared first on Commercial Property Executive.

10 Enterprise Parkway in West Jefferson, Ohio

Granite Real Estate Investment Trust, of Toronto, has agreed to acquire a portfolio of four Class A, single-tenanted warehouse/distribution buildings totaling about 3.8 million square feet. The properties are sited on 78 acres in West Jefferson, Ohio, about 20 miles west of Columbus. The purchase price of $232.5 million reportedly represents an in-going stabilized yield of about 6.0%.

The four properties are:

• 15 Commerce Parkway, 1.3 million square feet, leased to Mars Petcare
• 10 Enterprise Parkway, 534,000 square feet, leased to Ace Hardware
• 100 Enterprise Parkway, 1.22 million square feet, leased to Restoration Hardware
• 115 Enterprise Parkway, 743,600 square feet, leased to Bon-Ton Stores Inc.

The buildings are described as “modern e-commerce distribution facilities” with an average age of about seven years. Two of the four tenants have expansion options of at least 200,000 square feet. Bon-Ton, the parent company of department store chains Bergner’s, Boston Store, Carson’s, Elder-Beerman and Herberger’s, is in liquidation. While Bon-Ton might vacate 115 Enterprise Parkway, Granite stated that it “believes the re-leasing prospects for this building are strong.”

The acquisition, subject to customary closing conditions, is expected to close later this month. Granite reportedly expects to fund the purchase through a combination of cash on hand, largely from the proceeds of dispositions that took place in January, and a drawdown of its unsecured credit facility. That January disposition, for $400 million, involved 10 properties, all in Ontario, except for one in Bowling Green, Ky.

The seller was not identified, and Granite did not respond to Commercial Property Executive’s request for that and other information.

Granite was spun off from Magna International Inc., Canada’s largest manufacturer of automotive parts, and still counts Magna and its subsidiaries as its predominant tenants.

“As a result of this acquisition and initiatives announced earlier in the year, significant progress has been made towards Granite’s strategic priorities including a reduction in Magna concentration from 61% at the beginning of the year to 52% as measured by gross leasable area,” Granite CEO Michael Forsayeth said in a prepared statement.

Secondary market, substantial developments

If recent projects and transactions are a reliable indicator, the metro Columbus industrial market is a strong one. A joint venture of PCCP and The Pizzuti Cos. is adding onto the Rickenbacker Global Logistics Park, with an 802,390-square-foot spec Class A industrial building, Rickenbacker West I, on 50 acres.

In December, Exeter Property Group bought a two-building, 451,200-square-foot industrial portfolio in Rickenbacker Global Logistics Park for an undisclosed amount. Also in December, Mark F. Taggart Co. began construction of a 259,800-square-foot warehouse facility at the Air South Commerce Center in Whitehall, Ohio. The building, already about 20 percent preleased, will be the park’s second, following a first phase that broke ground last July.

Image via Google Street View

The post Canadian REIT to Buy Columbus-Area Industrial Portfolio appeared first on Commercial Property Executive.

Timbercrest at Lakeville

Viking Partners Fund III has acquired two retail properties—one in the eastern suburbs of Columbus, Ohio, and the other in southern suburban Minneapolis. The shopping centers have a combined surface area of more than 93,000 square feet.

Market at Morse is a 33,827-square-foot retail asset located at the intersection of Hamilton and Morse roads in Columbus. The property features three freestanding restaurants—Starbucks, Raising Cane’s and Bob Evans—totaling almost 11,000 square feet.

Located in Lakeville, Minn., Timbercrest at Lakeville is at the junction between Interstate 35 and 185th Street. Marshalls anchors and Super Target shadow anchors the 59,269-square-foot shopping center, which is part of a larger development that incorporates restaurants, retail space and medical offices.

“Market at Morse provides Viking with the opportunity to create additional value through the lease of 6,200 square feet of existing available space and we are currently in negotiations with a well-recognized national retailer to lease 20,000 square feet of the 26,000 square feet of available space at Timbercrest,” said Bret Caller, principal with Viking Partners, in a prepared statement.

Image via Google Street View

The post Viking Expands in the Midwest appeared first on Commercial Property Executive.

LTC Properties Inc. has sold six senior housing communities to National Health Investors Inc. for $67.5 million. The 320-unit Sunrise Portfolio includes five assisted living and one memory care property in five locations across Cleveland, Columbus and Erie, Pa.

The buyer planned for $500,000 in capitalized transaction costs and $1.8 million for capital improvements. An affiliate of Bickford Senior Living will lease the properties at an initial rate of 6.9 percent with annual fixed escalators and a 15-year maturity.

A draw on NHI’s revolving credit facility funded the acquisition. The transaction, structured to close simultaneously with the April 30 lease expiration on the properties, is expected to provide LTC a net gain on sale of approximately $48 million in the second quarter. KeyBanc Capital Markets Inc. and CS Capital Advisors LLC worked as financial advisors for the seller, while Sherry Meyerhoff Hanson & Crance LLP acted as LTC’s legal advisor.

“This transaction demonstrates the asset value of our portfolio, affording us the opportunity to strategically recycle capital and continue investing in newer, modernized assets,” said Wendy Simpson, LTC’s chairman & CEO, in prepared remarks.

NHI had previously expanded its portfolio with the purchase of a 121-bed skilled nursing facility in Waxahachie, Texas, for $14.4 million.

The post NHI Nabs Senior Housing Portfolio for $68M appeared first on Commercial Property Executive.

130 W. 2nd St., Dayton, Ohio

A decade after it acquired the 23-story high-rise at 130 W. 2nd St. in Dayton, Ohio, owner Titan Capital Investment Group sold it to Brian Lash, former CEO and chairman of Target Logistics Management. The seller was represented by a team of brokers including Matt Arnovitz, senior associate with CBRE, together with Senior Managing Directors Jim Vondran and Keith Yearout from the Cincinnati office of Newmark Knight Frank.

The asset, which is the fourth largest building in Dayton, encompasses 336,000 square feet and was completed in 1972, according to Yardi Matrix data. In addition to the office component, it includes 1,500 square feet of retail space on the first floor, an on-site cafeteria and conference room. Parking is independently owned.

The buyer plans to bring a number of upgrades to the building, which hasn’t been renovated for almost two decades. Planned amenities include a fitness center, co-working spaces, a banquet hall and meeting rooms.

Image courtesy of Google Street View

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Memorial Health System Belpre

Global Medical REIT Inc. has purchased a medical office portfolio in Belpre, Ohio, for $64.2 million.

The tenancies on the portfolio are triple-net leases with a remaining occupancy term of roughly 11 years, each subject to three- to five-year renewal options. Marietta Memorial Hospital—a division of the Memorial Health System, a Fitch BB-rated health structure with approximately $450 million of net revenue in 2017—currently leases four assets. The current rent is $5 million and comprises the following:

• Building I: annual rent of $1.2 million; subject to $50,300 increases every five years, with the next increase due to go into effect in 2021
• Building II: annual rent of $0.6 million; subject to $25,000 increases every five years, with the next increase due to go into effect in 2018
• Building III: annual rent of $0.8 million; subject to $25,000 increases every five years, with the next increase slated for 2022
• Building IV: annual rent of $2.5 million; subject to 10 percent increases every five years, with the next increase scheduled for 2019

The initial cap rate for the property was approximately 7.9 percent.

“Memorial Health Systems the largest hospital system in the area. This acquisition fits squarely into our primary investment strategy of acquiring medical office buildings in secondary and tertiary markets with strong tenants,” said Jeffrey Busch, CEO of Global Medical REIT Inc., in a prepared statement. “Additionally, the acquisition of the Belpre portfolio brings our overall gross portfolio size to approximately $600 million.”

Photo via Google Street View

The post Global Medical Buys $64M MOB Portfolio in Ohio appeared first on Commercial Property Executive.

Springfield Storage Depot

The Hatcher Storage Group of Marcus & Millichap has arranged the sale of Springfield Storage Depot, a 69,275-net-rentable-square-foot facility in Springfield, Ohio. The property changed hands at a 7.71 percent cap rate.

Located at 1215 N. Belmont Ave., the asset is near State Route 40 and Interstate 70, roughly 45 miles from downtown Columbus. Approximately 83,000 people live within a five-mile radius area, with a median household income of around $39,937. Constructed in 2002, the 12-building storage facility occupies 6.4 acres and offers 509 units ranging in size from 50 to 300 square feet. Characteristics of the asset include 24-hour, electronic gate access, video camera surveillance and key code/card entry and exit.

In December 2017, Marcus & Millichap brokered the sale of self-storage portfolio in Ohio. The $31.4 million transaction encompassed eight properties totaling 3,050 units located in Lorain, Elyria, Cuyahoga Falls, Northwood, Oregon, Toledo and Stow.

Image courtesy of Yardi Matrix

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7815 Walton Parkway, New Albany, Ohio

Red Roof is planning to relocate its headquarters to the growing business hub in New Albany, Ohio, in order to accommodate the expansion of its corporate team to 150 people. The 43,000-square-foot office will be located at 7815 Walton Parkway, approximately 20 miles from the company’s current main office at 605 S. Front St. in downtown Columbus.

The two-story building is part of the New Albany Business Park, off the renovated Route 161. It is accessible from interstates 270, 670, 70 and 71 and approximately 10 minutes from Columbus International Airport. The campus features landscaped areas with fountains, patios and walking paths.

The new office provides Red Roof the collaborative space, technology and resources needed for its further anticipated growth. According to company statistics, over the past three years Red Roof has almost doubled the number of its properties, to 539. More than 30 other hotels are expected to open this year, including The St. Clair Hotel in Chicago and The Red Collection’s flagship location.

Image courtesy of Google Street View

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3500 Southwest Blvd. in Grove City, Ohio

Plymouth Industrial REIT Inc. has procured Stonecrop Technologies to occupy all 527,127 square feet of 3500 Southwest Blvd. in Grove City, Ohio, with a three-year lease that begins March 15.

“It’s a big lease, around five percent of our entire portfolio, so it means a lot to us,” Jeff Witherell, Plymouth Industrial REIT’s chairman & CEO, told Commercial Property Executive. “We bought the property knowing that Pier One had been there for a long time and might be consolidating.”

Once it acquired the asset, Plymouth put a new roof on the building, added LED lighting and made repairs to all the dock doors. The company is also planning on renovating the front office space and fixing the concrete in the loading area. 

“It’s significant improvements, and is basically a new building when you compare it to other industrial sites,” Witherell said. “One of the biggest things about this is its excellent location.”

3500 Southwest Blvd. in Grove City, Ohio

The wireless systems deployment company is headquartered in Petaluma, Calif., and its lease in the building includes annual rent increases and one three-year renewal option. The lease also includes an option to terminate, with penalties, should certain local economic incentives fail to materialize by March 27.

The property is situated in the southwest submarket, which has a great labor pool. It’s close to major distribution centers and is much sought after in all of Columbus, when it comes to industrial space.

“The last tenant just moved out on 12/31 and we had several people interested, and in February, Stonecrop Technologies showed up,” Witherell said. “It was record time. It’s a testament to two things. First, the market is hot. Second, we have roots on the ground in Columbus so we could move very quickly.”

New office

In other news at the company, Plymouth Industrial REIT also opened its first regional office in Columbus, serving its properties in the city, along with those in Cincinnati, Cleveland and Indiana.

According to Witherell, Ohio and Indiana are two big markets for the company, with more than 3 million square feet of its 10 million-square-foot portfolio represented there.

“The people who will be in the office will be responsible for property management in those areas,” he said. “There is a cost savings associated with it, but the primary motivating factor for doing this is to deliver superior service to our tenants.”

Benjamin Crock will serve as regional property manager and lead the office. Crock previously served in a similar capacity for Cushman & Wakefield in Columbus.

In January, Plymouth Industrial REIT acquired a light manufacturing building in Elgin, Ill., a northwest suburb of Chicago and the property’s 75,047 square feet was leased back to Burndy Engineering, a division of Hubbell Corp., which sold the property in a $4.1 million all-cash transaction. In December, the company paid nearly $100 million to acquire a 15-property industrial portfolio in Chicago from Goldman Sachs.

Images courtesy of Plymouth Industrial REIT

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Robert Mason, CFO, Skilken|Gold

The retail sector is in the midst of a transformation generated by the e-commerce revolution. The ones who will come out on top of this trend will be those who understand how to leverage the new tools and platforms. Robert Mason, the new CFO of retail development company Skilken|Gold, discussed with Commercial Property Executive why this new era is less about exclusion and more about inclusion and cohabitation of two very different aspects of retail.

What are your expectations for 2018 regarding retail development?

Mason: We’re bullish for 2018 and beyond. The industry is going through change, particularly with the popularity of e-commerce, and change creates opportunities. The future of retail isn’t brick-and-mortar or e-commerce—it’s both, as evidenced by the major players’ heavy investments in physical and digital marketplaces—a result of logistics and ensuring products are as close to their consumers as possible. The brands that win will be the ones that figure out the interplay between online and offline commerce.

What can you tell us about the financing process for retail projects?

Mason: Traditional financial institutions are cautious of the industry. We mitigate by working with the best in class, concentrating on strong credit tenants with sustainable business models. The capital space looks a lot different today—it’s not just banks and insurance companies. We’re working with a wide range of partners, including domestic and international private equity.

We have seen retail developments that have failed to meet expectations. What are some mistakes CRE investors make when it comes to new projects?

Mason: Commercial real estate investors often take too much time to make the “go” or “no-go” decision. You can waste a lot of resources on the “maybe” project.

Another mistake we’ve seen is when developers become emotionally attached to a project. Our investment decisions are based on a bottom line collaborated approach with all vested members of our development team.

Like you said, the retail sector is undergoing a transformation, as e-commerce continues to take up market share. How do you think the retail experience will look like in a few years?

Mason: Convenience and technology advancements will continue to drive development. E-commerce names will grow their “showroom” locations and traditional retailers will build out their e-commerce platforms. Technological advancements are simply a temporary disruption that will yield positive change for existing retailers. Those that don’t buy into it will and should be gone.

How do you think the new tax legislation will impact retail?

Mason: It’s still too early to tell, but more money in consumer’s pockets is good for the retail industry. We have already begun to see several large companies define a plan to expand their national footprint. Additionally, the new tax legislation adds up to a 20 percent deduction for qualified business income of pass-through entities and maintains critical benefits to the commercial real estate industry, including 1031 exchanges, section 179 deductions and bonus depreciation.

Image courtesy of Skilken|Gold

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Hillwood, a Perot company, has purchased TradePort I, an up-and-coming 1,020,255-square-foot distribution center in Columbus, Ohio. The asset is expandable to 1,229,443 square feet and is the firm’s second warehouse purchase in the metro.

Located on 78 acres at 3780 TradePort Court, the facility is less than one mile from the Norfolk Southern Intermodal yard and approximately two miles from Rickenbacker International Airport. The distribution center provides access to the Interstate 270 interchange and Route 23. Apart from additional acreage to accommodate up to 209,188 square feet of building expansion and/or trailer parking, the property offers:

• cross-dock configuration
• 36-foot clear height
• 185-foot truck courts
• 102 dock doors
• 232 trailer spaces
• LED lighting
• ESFR sprinklers

“TradePort I is a great complement to our recently acquired 450,000-square-foot Groveport 2 building. With our portfolio, we can provide multiple options for companies looking for Class A distribution space in the Rickenbacker area,” said Hillwood Senior Vice President & Midwest Market Leader Don Schoenheider, in prepared remarks.

According to a Colliers International fourth quarter market report, the Columbus industrial market finished the year on a very strong note. The vacancy rate in the metro was down to 4.2 percent. Looking forward, economists predict Columbus will continue to prosper as more investors want to be part of this growing logistics hub.

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6959 and 6969 Alum Creek Drive, Columbus, Ohio

Dalfen America Corp. has acquired Alum Creek Business Center, a 303,000-square-foot industrial property located close to Rickenbacker International Airport in Columbus, Ohio. With the addition of this asset, the company’s Columbus industrial portfolio adds up to approximately 1.1 million square feet.  

“The rapid growth of e-commerce has led to an increasing demand for quality warehouse space and Columbus continues to be one of the nation’s top locations for distribution,” said Sean Dalfen, DAC’s president, in a prepared statement.

Located at 6959 and 6969 Alum Creek Drive, Alum Creek Business Center consists of two buildings completed in 1993 and 1996. The property features 54 dock-high doors, 24- to 26-foot clear ceiling heights, T-8 lighting and a large parking lot.

Distribution centers in the nearby area include facilities for Cardinal Health, Walmart, L Brands, FedEx and Amazon. Dynamic industrial activity has pushed down the vacancy rate in Columbus to a little under 5 percent as of 2017’s third quarter, according to a Colliers International report cited by Dalfen.

Image courtesy of Dalfen America Corp.

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A rendering of Air South Commerce Center in Whitehall, Ohio

Mark F. Taggart Co. has begun work on the second phase of the Air South Commerce Center in Whitehall, Ohio. The company is developing a 259,800-square-foot warehouse facility with local contractor and developer, Fed One Dublin. Once this phase is completed, the total square footage of the development will reach 400,000.

Located at 4712 Poth Road, in the Airport South Commerce and Tech Center area, the new warehouse facility will feature concrete tilt up panels, 32-foot clear height, ESFR fire suppression, T-5 lighting, 60-foot speed lane, 40 trailer parking spaces and more than 200 additional lots.

“The Air South Commerce Center fills a market niche for the industrial users in the 40,000-square-foot to 100,000-square-foot size range who want all the bells and whistles typically associated with larger bulk facilities,” said MFT Co. President Mark Taggart, in a prepared statement.

Complex financing

Project financing was made possible through a combination of a grant/loan package through Jobs Ohio and a construction/permanent loan from Civista Bank with participating banks The Union Bank Co. and The Savings Bank. 

Mark F. Taggart Co. has already signed its first tenant, Wolff Bros. Supply, that will lease 52,000 square feet of industrial office and warehouse space. The tenant was represented by Weston Devore and Don Matsanoff of CBRE Columbus in this leasing transaction. Wolff Bros. Wolff Bros. is a supplier of electrical, lighting, DataCom, plumbing, kitchen and bath cabinetry, HVAC equipment, tools, fasteners and chemicals. All other interested tenants will be offered a 15-year, 100 percent real estate tax abatement on improvements through the City of Whitehall.

The first phase of the project broke ground in July and is currently underway. The second phase is expected to be completed by April 2018.

The Columbus industrial market is in the midst of seven straight years of positive net absorption. A joint venture between PCCP and The Pizzuti Cos. also announced plans to build an 802,390-square-foot, speculative development.

Image courtesy of Mark F. Taggart Co.

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2400 Spiegel Drive, Groveport, Ohio

Exeter Property Group has purchased a two-building industrial portfolio from a joint venture advised by J.P. Morgan Asset Management. A team of brokers from Avison Young arranged the transaction on behalf of the seller. The assets, which encompass a total of 451,215 square feet, are located within the Rickenbacker Global Logistics Park, a 30-million square feet development spread over several towns near Columbus, Ohio.

“This portfolio demonstrates the continued movement of investors into growing secondary markets,” said Avison Young Principal Erik Foster, in prepared remarks. “The strength of the Columbus industrial market, along with the outlook for long-term tenancy, made this portfolio an attractive opportunity for investors.”

The investment continues the series of Midwest industrial acquisitions that Exeter Property Group has completed this year. 

Strong tenancy

The portfolio comprises:

• Rickenbacker IV, a 330,179-square-foot distribution center located at 2400 Spiegel Drive in Groveport, Ohio
• Creekside V, a 121,035-square-foot laboratory facility located at 2150 Bixby Road in Lockbourne, Ohio

Both buildings are close to interstates 70 and 71, the Rickenbacker International Airport and Port Columbus International Airport. The Rickenbacker IV building is 70 percent leased to Essilor of America. The optical lens manufacturer moved into the facility in 1996 and has almost doubled its space since then.

The Creekside facility’s tenant is Luxottica. The accessories company has been leasing the entire property since 2007, having invested approximately $30 million in specialized equipment so far.

Foster and Mike Wilson, also a principal with Avison Young, negotiated the deal on behalf of the seller. 

Image courtesy of Avison Young

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PharmaForce’s New Albany facility, Ohio

PharmaForce aims to expand two of its facilities in Ohio by investing approximately $145 million. The pharmaceutical R&D and manufacturing company will create 80 new jobs and add roughly 142,000 square feet to its New Albany and Hilliard facilities in the Columbus area. 

Located at 6610 New Albany Road E., the New Albany facility will add 140,000 square feet. The company will also reconfigure and remodel a portion of the existing warehouse and production space. In Hilliard, PharmaForce is located at 4150 Lyman Drive. The company intends to upgrade and add 1,800 square feet to its existing facility, with plans to invest in new production equipment and supporting infrastructure.

“Our operations in New Albany and Hilliard have played a critical role in the growth of our company and the investment in our manufacturing, warehouse and R&D capabilities supports that growth,” said PharmaForce Vice President & General Manager Dante Serricchio, in prepared remarks.

Construction and remodeling will start in 2018, with hiring for the new positions beginning next year. The investment is part of the Columbus 2020 regional growth strategy, which also includes the $25.4 million investment in a raw material plant in Heath, Ohio.

Image via Google Street View

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680 W. Shields Lane, Salt Lake City

Gladstone Commercial Corp. has added two new buildings to its office portfolio, totaling 204,587 square feet. The assets are located in Columbus, Ohio, and Salt Lake City and were previously owned by Morgan Stanley. The entire acquisition cost the buyer $37.6 million. 

“This transaction is an excellent acquisition in target markets providing strong near-term returns for our investors and excellent credit quality through the investment grade tenancy of Morgan Stanley,” said Bob Cutlip, president of Gladstone Commercial, in a prepared statement. The average capitalization rate is approximately nine percent, higher than that of another recent office acquisition that the company completed in Orlando, Fla. 

Live-work-play locations

4343 Easton Commons, Columbus

Both properties are fully leased, the weighted average lease term being 8.6 years, and feature live-work-play locations. Morgan Stanley Smith Barney Financing (MSSBF) is the anchor tenant, the company occupying 92 percent of the space available across the buildings.

The Columbus asset, completed in 2007, is located at 4343 Easton Commons, close to Interstate 270’s beltway loop. It has three stories and 102,559 square feet. MSSBF occupies 84 percent of the building while the rest is occupied by Congressional Bank. The weighted average lease term is seven years.

The other property, Jordan Valley Tech Center, was also completed in 2007 and is fully leased to MSSBF for the next 10 years. Located at 680 W. Shields Lane in Salt Lake City’s South Jordan submarket, the building is only two blocks from Interstate 15 and within walking distance of several retail stores and communities. 

Images courtesy of Yardi Matrix & Google Street View 

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The 6606 Tussing Road in Columbus, Ohio

Grandbridge Real Estate Capital recently closed a $7 million first mortgage loan for 6606 Tussing Road, a 496,460-square-foot industrial R&D/flex facility on roughly 30 acres in Columbus, Ohio.

Funding for the permanent loan was arranged through one of Grandbridge’s banking relationships and featured a 10-year term and 15-year amortization, closing with a fixed interest rate of 4.25 percent for five years. The Branch Banking and Trust Co. originated the loan.

Grandbridge Columbus Senior Vice President Ted Schmidt originated the cash out transaction for a repeat client. Most recently, Grandbridge also arranged a $65 million first mortgage loan for the St. Julien Hotel and Spa, a 201-key hotel in Boulder, Colo.

The Columbus industrial market is hot and shows no signs of cooling down, according to the latest Cushman & Wakefield report. In the third quarter of this year, the overall vacancy rate dropped to 5.1 percent, one of the lowest ever reported. However, vacancy rates will most likely increase as speculative projects are delivered. 

Image courtesy of Grandbridge

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5040 Bradenton Ave. in Dublin, Ohio

Bradenton Pediatric Building Co. (part of the Bradenton Health & Professional Condo Association) sold a medical office building in Dublin, Ohio. The 1031 tax deferred buyer payed $800,000 for the asset.

Located at 5040 Bradenton Ave., the 7,200-square-feet property features seven private offices and 14 exam rooms. Amenities include employee break areas and a conference room. The John Glenn Columbus International Airport is close by. Frantz Road and Tuttle Crossing Blvd. are also easily accessible from the property.

David Hartsook, John Hall and Kevin Connor of CBRE’s Columbus office represented the seller.

“The building was sold in about six months,” said CCIM David Hartsook, first vice president at CBRE, in a prepared statement. “The speed of the sale is a testament to just how well-maintained this building is,” Hartsook concluded.

Image courtesy of CBRE

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A rendering of Rickenbacker West I in Columbus, Ohio

A joint venture between PCCP and The Pizzuti Cos. plans to build Rickenbacker West I, an 802,390-square-foot, speculative development. The expandable Class A industrial building will sit on 50 acres in Columbus, Ohio, within the Creekside Industrial Center in the Rickenbacker Global Logistics Park. Pizzuti has already developed more than 10 million square feet of industrial product to date there. The project has begun construction and completion is scheduled for the summer of 2018.

Located within Columbus’ Southeast submarket, near other institutional owners such as Duke Realty, JP Morgan, Northpointe, VanTrust, DCT Industrial, Blackstone, Exeter and Exxcel, Rickenbacker West I will be south of Rickenbacker International Airport. The main access point to the property via Alum Creek Drive will provide east‐west access, with interstates 270, 71, 70 and 670 in close proximity. The cross-dock distribution center will feature 36-foot clear heights.

The greater Columbus industrial market consists of more than 232 million square feet and continues to attract institutional capital due to abundant workforce, favorable real estate tax abatement programs and ability to access 60 percent of the U.S. population within a one‐day drive. The Columbus industrial market is in the midst of seven straight years of positive net absorption.

Recently, PCCP also invested in North Bay Logistics Centers, a vacant 843,248-square-foot industrial building in Vacaville, Calif.

Image courtesy of PCCP

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Work is underway at the Jackson Pike Wastewater Treatment Plant in Columbus, Ohio

The City of Columbus, Ohio, has selected Arcadis as prime consultant to design energy-efficient and biogas recycling improvements at the city’s Jackson Pike Wastewater Treatment Plant. The improved plant will recycle biogas to produce electricity and heat, contributing to the city’s sustainability.

Under an approximately $1 million contract, Arcadis will design a combined heat and power engine capable of burning biogas to power a generator and produce electricity and heat for the plant. Methane-rich biogas is produced by the plant’s anaerobic digesters. Rather than flare the excess biogas, the city aims to recycle it for power. Arcadis will manage the engine procurement, pair it with a gas cleaning system for producing high quality fuel and integrate the new system into the plant’s existing electrical and heating system.

Enhanced efficiency

“Using biogas to fuel the engines is significantly more efficient and environmentally friendly than using coal power or natural gas and it will strengthen our city’s sustainability going forward,” said Columbus Department of Public Utilities Project Manager Todd Krenelka, in a prepared statement.  

The new system will be scalable to accommodate city growth. The design phase of the project will run through October 2019 with construction scheduled for spring 2020.

At the beginning of this year, Arcadis released the International Construction Costs report regarding the most expensive cities for construction. 

Image courtesy of Arcadis

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Investment in the U.S. data center sector reached record levels in the first half of 2017, totaling $18.2 billion, already more than double compared to all of 2016, according to the latest CBRE report. The U.S.’ seven major data center markets—Atlanta, Chicago, Dallas/Fort Worth, the New York Tri-State Region, Northern Virginia, Phoenix and Silicon Valley—combined saw nearly 88 MW of positive occupancy gains in the first six months of 2017. The data center supply pipeline continues to accelerate with nearly 284 MW of wholesale capacity currently under construction in primary data center markets.

During the past decade, the geographic proximity of Columbus, Ohio, to about half of the U.S. population, the resulting lower latency and the market’s pro-business environment with a favorable tax climate, are bolstering the city’s standing as one of the hottest data center markets in the country. We wanted to see how the metro had become so attractive for data center companies, so we talked to Doug Godard, senior vice president of CBRE Data Center Solutions.

What influenced Columbus’ evolution from a location of choice to one of the top locations for internet cloud operations?

Doug Godard

Doug Godard: Columbus is known as a national logistics and warehousing hub due, in large part, to the fact that nearly half of the U.S. population is within 500 miles of the city. Columbus’ proximity to population is also a large factor in companies locating their data center operations to the area. Latency is the time it takes for data to travel from one point to another (and back). Physics dictates latency. Remember how long it took to download a movie or how sometimes the viewing was shaky? That was caused by longer latency times. Today, companies are locating their data centers in areas where they can reach larger population bases in shorter periods of time – lower latency. Two of the world’s largest internet cloud operations have committed billions of dollars to their Columbus projects validating Columbus as a great on-ramp to the cloud.

Who are the biggest players in Columbus’ data center market?

Godard: Cologix and Expedient have colocation data centers in the Columbus region that can successfully compete with any data centers in the U.S. Think of a colocation data center as a multi-tenant office building, but for data center tenants. The trend nationally is for companies to leave their owned data centers and to relocate their computer servers to colocation data centers—colocation data centers cost less and are typically more reliable.

Both of these data centers are of a “Tier III” design making them concurrently maintainable. This means that the operators of the data centers can work on mechanical and electrical systems without shutting down that area of the data center. Being concurrently maintainable is important because companies have to have access to their data or have to be able to run data processes 24/7 without any interruption. Some airlines have had data center failure in the past two years creating havoc with their customers and costing the airlines tens of millions of dollars. They are now rethinking their data center strategies. 

How large is the metro’s data center supply pipeline?

Godard: Cologix is under construction with a $130 million colocation data center in Columbus. Cologix’s first customer is installing equipment right now and will be online in January 2018. The Cologix data center is one of the largest data centers in the Midwest totaling 160,000 square feet with four 20,000-square-foot data halls and 12 MW of power. The Cologix data center will be successful because of its certified Tier III design/construction and because of its connectivity to other cities in the U.S. through more than 50 onsite carriers. Cologix is a direct connect partner with the largest public cloud service provider in the world, which means all data traffic going through their data center campuses in the Columbus region will be directed through the Cologix data center. This should benefit companies through big savings in local carrier charges. 

Where do you think Columbus’ data center market will stand in a decade from now?

Godard: Columbus is located in the Golden Triangle – that geographic area between Washington, D.C., New York and Chicago. The Golden Triangle has the highest concentration of data in the world and Columbus is very central to all three cities. Columbus has the location, has great power and is not prone to natural disasters such as hurricanes, tornados, flooding, wild fires or earthquakes. I do not believe that we will have to wait ten years. Columbus is now on the national radar for data centers and we should see dozens of additional announcements in the next few years.

Image courtesy of CBRE

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The Homewood Suites by Hilton Columbus/OSU

Homewood Suites by Hilton Columbus/OSU is now under Crescent Hotels & Resorts’ management. The newly built, upscale, 109-key hotel adds to Crescent’s growing management portfolio in North America.

Located at 1576 W. Lane Ave. in the Upper Arlington entertainment district, the hotel is two miles away from the Ohio State University and The Jerome Schottenstein Center and five miles from downtown Columbus. The building includes grocery shopping service, 24-hour pantry, indoor pool, fitness center and business center. Keys feature full kitchens, dining tables, pull-out sofas, free Wi-Fi, flat-screen TVs and balconies.

“The Crescent team is excited to add the Homewood Suites Columbus/OSU to our portfolio because it aligns well with our expertise with extended stay hotels and operating experience in the Columbus market,” said Crescent Hotels & Resorts President & CEO Michael George, in a prepared statement.

Crescent Hotels & Resorts also runs properties in western U.S., such as the recently renovated hotel Courtyard by Marriott in Albuquerque, N.M.

Image courtesy of Crescent Hotels & Resorts

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The Greater Columbus Convention Center in Ohio

LMN Architects expanded and renovated the Greater Columbus Convention Center in Ohio. The $140 million, multi-building project added 137,000 square feet of new space and refurbished 800,000 square feet of the existing structure. Schooley Caldwell Associates served as associate architect for the project, with Corna Kokosing Construction Co. and Elford Inc. as construction manager.

Located at 400 N. High St. in the Short North neighborhood, the 1993-built convention center has undergone an extensive transformation. “Areas of glass reveal the activity happening inside the building to the outside world, most notably where the transparent pavilion meets the exterior plaza,” said LMN Architects Design Partner Wendy Pautz, in a prepared statement.

A 15-acre extension

The transparency continues throughout the building with a new entry to the main exhibit hall and windows in the meeting rooms. Upgraded systems throughout the building include wall coverings, ceilings, carpeting, social seating, digital technology, sound systems and lighting. Interior spaces have been reimagined in response to today’s convention market with enhanced flexibility to accommodate a wide range of events. LMN previously renovated the existing Battelle Grand Ballroom back in 2010.

The project team also included Franklin County Convention Facilities Authority (owner), Magnusson Klemencic Associates, EMH&T and Korda/Nemeth Engineering, Heapy Engineering, MKSK, Horton Lees Brogden Lighting Design and Tec Studio Inc., Stantec, Dynamix Engineering Ltd., Pentagram and Rider Levett Bucknall.

LMN Architects is also involved in the 1.4-million-square-foot Hyatt Regency hotel project in Seattle.

Image courtesy of LMN Architects                                            

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10 W. Broad Street, Columbus

Citizens Commercial Banking originated a $30 million loan for capital projects and leasing costs at One Columbus Center, an office building in downtown Columbus. The deal marks the second partnership closed between the lender and the property owners, a joint venture between HEARN Co. and CrossHarbor Capital Partners. Citizens is the sole lender.

The 25-story office tower is located at 10 W. Broad St. and offers 407,472 square feet of office space and approximately 4,000 square feet of retail space. Amenities include a covered parking garage, a fitness center and conference rooms for tenants. Designed in 1985 by NNBJ, the building benefits from major street exposure on West Broad and North High streets. Across the street is The Ohio Statehouse.

HEARN, which owns several other office towers throughout the Midwest, acquired the property in March 2017. The company has started a series of upgrades aiming to enhance the lobby, entry and corridor areas as well as the fitness center and tenant lounge. The leasing manager is JLL.

Image via Google Street View

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Graceland Retail Center, Columbus, Ohio

PGIM Real Estate locked in $33 million in financing for Graceland Retail Center in Columbus, Ohio. The two-year loan is part of the company’s core-plus lending strategy, implemented to assist transitional commercial real estate properties with a value-add component. It includes three one-year extension options and a future funding facility for capital improvements.

“This loan on a grocery-anchored retail center will help the sponsor make improvements at the property to achieve its business plans,” said Marcia Diaz, global head of originations at PGIM Real Estate Finance, in prepared remarks. “This financing represents the first of many we would like to realize in the core-plus space. Our expansion will continue through identifying both stabilized and transitional properties that meet our financing criteria.”

Principal Christy Lockridge and Investment Associate Craig Foreman led the transaction on behalf of PGIM. The loan may be a sign that although the fundamentals of the retail segment are considered uncertain, given the strong activity in the e-commerce sector, investors continue to show interest in retail real estate.

Strong financing opportunity

Graceland Retail Center is a 456,021-square-feet property located in a highly-trafficked area just nine miles north from the city’s central business district. It serves the Clintonville and Worthington neighborhoods, due to its proximity to Interstates 71 and 270. The five-mile area boasts a population of more than 650,000 and an average household income of $71,000, according to Casto, the mall owner’s website.

The shopping center has recently gone through a significant expansion to make room for a corporate-owned Target store. Other tenants include Kroger Marketplace, Michaels and LA Fitness.

Image courtesy of Casto

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Olshan Properties completed a $27.3 million transformative interior redesign and amenity improvement for the Hilton Columbus at Easton in Ohio’s capital. Developed in 2000, the 345-key hotel is a seven-story, four-diamond property that includes a 39,000-square-foot conference center. In addition to the new public space, the Hilton Columbus at Easton added roughly 9,000 square-feet of meeting rooms and event space.

Located at 3900 Chagrin Drive, the hotel is just minutes from downtown Columbus, the John Glenn International Airport as well as several retail options. The luxury hotel completed a $14 million interior guest room redesign last year.

Expansive renovation

This year, Olshan Properties focused on transforming the hotel’s public areas and adding a new lobby bar. The company spent $13 million on design and amenities. Hilton Columbus at Easton now includes a redesigned lobby and entryway, new seating, an upgraded lobby terrace, and a remodeled pool and fitness area. The additional meeting space includes digital signage in each room. A virtual concierge board has also been installed, with touch screen abilities, flight updates and directions to local attractions, among other capabilities. Additionally, the Hilton Columbus at Easton now boasts a new restaurant.

Olshan Properties currently owns and manages six hotels and resorts nationwide.

Images courtesy of Hilton Columbus at Easton website

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Brick House Blue, a new co-working and creative meeting space will open in November at Bridge Park, a mixed-use development in Dublin, Ohio. The project includes 373,000 square feet of Class A office space and 224,000 square feet of retail, restaurant and grocery space. Brick House Blue will occupy 9,000 square feet. 

A rendering of the Brick House Blue at Bridge Park in Dublin, Ohio

Located at 6605 Longshore St., Brick House Blue will be a short distance from a nearby AC Hotel by Marriott, a fitness center as well as several dining and entertainment options. The space will incorporate a diverse set of workspaces and provide four large “think tank” rooms to give businesses a creative space for off-site team meetings and strategy sessions.

Management support

Co-founders Cid Rhomberg and Dave Mirgon, who both have extensive experience as talent management consultants, career coaches and marketing and finance strategists for Fortune 50 companies, will offer on-site strategy and leadership development sessions for businesses as well as executive consulting.

Brick House Blue will provide its members and guests with dedicated spaces, desks, conference rooms, lounges, outdoor balcony space, a kitchen and high-end amenities. The interior is constructed in a way that eases collaboration and fosters ideas, but also offers people a place to unwind. The industrial look of the space is meant to create a sense of community.

“We’re committed to providing a fun and inspiring environment that helps our members and guests create results. We’re defining a culture where we want to work, and where we can all share success,” said Mirgon, in prepared remarks.

Bridge Park is being developed by Crawford Hoying. The company recently announced plans for 800 North High, another mixed-use project in Dublin that will break ground this fall.

Image courtesy of Brick House Blue

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Columbus rent evolution, click to enlarge

The multifamily market is expanding in Columbus, which has been an economic standout in Ohio and the Midwest. The metro’s tight labor market is lifting average wages, attracting more residents and bolstering demand for apartments.

Government, energy, education and health services led job gains over the past year and contributed to wage growth in high-paying sectors. In addition to being the state capital of Ohio and home to The Ohio State University, Columbus is a corporate hub with national and regional headquarters of several major financial and consumer products companies.

Demand for apartments is strong as Millennials are establishing households and downsizing Baby Boomers are renting luxury units. Development is active, especially in Dublin, which is expected to become the largest suburb of Columbus by 2020. Downtown development is also booming, characterized by mixed-use, live-work-play communities. Property values in the metro are reaching new highs but are still cheaper than the national average. The new supply of apartments has been modest in recent years, but the pipeline is growing. Transaction activity has been strong during the last five years but has slowed in 2017, as developers focus on ground-up projects. With strong demand and moderate new deliveries, we expect rent growth of 3.5 percent in 2017.

Read the full Yardi Matrix report.

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