Category Archives: Transactions
For the third time recently, an industrial portfolio has traded in JAX. The latest was Cabot Properties’ exit of the market with the sale to NY-based DRA Advisors of about 924k SF of warehouse-distribution space in five buildings around town, four up at Alta Lakes and one at Flagler Center, plus some 16 acres at Alta Lakes.
Earlier in January, MDH Partners of Atlanta paid $54.6M, or $42/SF for seven buildings and 1.3MSF of warehouse space around Imeson Park on the north side of town and Boston-based STAG Partners paid $34.3M of about $34/SF for seven area buildings.
Karen Brune Mathis of The JAX Daily Record has the article on all three here.
Colliers International Research Department, led by Pete Culliney, Director of Research in New York, and Andrew Nelson, Chief Economist in San Francisco, have published their Mid-Year 2016 U.S. Capital Flows Research and Market Report for the national capital markets. One of their many nuggets of information:
- Repeat sales (of the same property/ies), the best indicator of price movements, are, overall for the four major food groups (CBD office, retail, multifamily, and industrial) up 12% over the prior peak of 2008 in the top six metro markets, admittedly a far cry from our local market. But…
- The same property types outside the top six metro markets are still, on average, down 16% from the prior peak, but it is a mixed bag, with multi-family and CBD office higher than the prior peak while retail and industrial lag. See the chart below, thanks to the Colliers International report. If you would like a copy of it, please email us.
Colliers International’s outstanding research team has analyzed Real Capital Market trends for the first half of 2016 vs prior year’s and found:
- Investment sale transactions nationwide were down 16% from the first half of 2015, with much of the decline in portfolio purchases.
- Investment capital remains robust with volume up 15% from the 2014 level, which was the high watermark until last year.
- Composition of transactions has changed significantly from the first half of 2015 to midway in 2016, with only multi-family (apartment) sales up (+9.7%) and the other major categories all down, led by hotels (-55%), Industrial (-31%), Retail (-20%), and Office (-12%).
- Despite the slowdown, pricing remains firm, even rising, led by office product (+13.6%), then industrial (+7.6%) then hotels (+4.5%), while apartments (+2.7%)and shopping centers (-0.5%) lagged. My own editorial – less volume, but higher prices; hmmm, makes one wonder about the quality of the product being traded or external influences such as a bottoming of interest rates…
- Through 2017, the Colliers mothership expects prices to continue rising and investor interest to remain strong as transaction volumes regain traction as a reflection of the strength and stability of the U.S. economy and remarkably low interest rates, with a warning: keep an eye on risks and avoid chasing yields as the growth cycle continues.
If you would like the entire article, please email me at scott.rogers at colliers.com.
Lingerfelt CommonWealth Realty Partners recently purchased the Stein Mart building for $23.7M from Parkway Properties. The 10-story building is about 197K SF and is located in the downtown CBD (on the Southbank). The building was about 97% occupied at the time of the sale, and anchored by Stein Mart, who occupies about half of the building and has naming rights to the building. Lingerfelt also owns the Riverplace Tower across the street, which they bought from Gate in 2014 for $29M .
Highland Square Shopping Center, located on Dunn Avenue just west of I-95, was just purchased by American Commercial Realty Corp. for $22.7M. The center is anchored by Publix, and other notable retailers include Bealls Outlet, dd’s Discount and Family Dollar. The sale also included a freestanding CVS and Starbucks, which are located on outparcels of the center. The inline space totals 262,000 square feet (277,600 SF including the outparcels).
While not involved in this sale, the Colliers Investment Team has brokered the sale of 3 Publix anchored shopping centers in the last 12 months. Contact Scott Rogers or Ernie Saltmarsh to learn more.
The Harbour Place Shopping Center located at the south-east quadrant of Atlantic Boulevard and Hodges Boulevard just sold for $24M, just shy of the $25.7M paid for Intracoastal Center (Beach and San Pablo) which is also anchored by Publix and also traded this week. The two centers are located less than 4 miles from each other. Publix Supermarkets purchased the shopping center from Lat Purser and Associates and plans on doing a renovation of the center. According to CoStar, Harbour Place is about 104,000 SF and was built in 1990.
The Colliers International Northeast Florida Investment Services Team just sold Intracoastal Center, a multitenant retail shopping center anchored by Publix Supermarkets, located at the south-east quadrant of San Pablo Road and Beach Boulevard in Jacksonville, Florida. The 155,899 SF shopping center got its name due to its location just west of the Intracoastal Waterway. Other tenants within the center include Planet Fitness, Publix Liquors, Greenberg Dental, H&R Block and a Fifth Third Bank (outparcel). In addition to the retail tenancy, there is also a large medical component, with medical tenants accounting for about 41% of the space, including Family Care Partners, Precision Imaging, DaVita Dialysis and Heartland Rehab.
Colliers International Northeast Florida’s team of Scott Rogers, SIOR, CCIM, Ronald McVay and Ernie Saltmarsh IV exclusively represented the seller, a private local individual, and found the buyer, a New York based family in a 1031 tax-deferred exchange. The buyer plans on an extensive renovation of the center, including the roofs, parking lots, signage and facade. Publix has also submitted plans for the proposed $750,000 renovation of their 62,000 SF store. This is the third Publix anchored shopping center that the Colliers Investment Services Team has sold in the past 8 months.
According to a recent Jacksonville Business Journal article, “The housing market in Northeast Florida posted strong numbers in February with nearly 1,800 closed sales, 2,425 pending sales and an increase in year-over-year average price.”
Konover South (Deerfield Beach) and Blue Rock Partners (Tampa) have joined forces to purchase two apartments (532 units) in Jacksonville’s Southside for $48M, or $90,226/unit. The properties included Landmark at Hampshire Place and Landmark at Sage Commons. They were 95% occupied at the time of the sale. Both will be rebranded and renovated ($3.4M).
The Commander Apts, a 16-story, 90 unit waterfront apartment building in Avondale, just sold for $5.8M to Chance Partners, a development firm based in Atlanta, GA. The deal also included some small retail shops called St. Johns Village on an adjacent parcel. The property will undergo a thorough renovation, inside and out.
Roger Bull with the Florida Times Union covered the story.