REAL ESTATE INVESTMENT

Terreno Realty Corporation Acquires Property in Santa Clara, CA for $54.6 Million

Terreno Realty Corporation | May 09, 2022

Property
Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Santa Clara, California on May 4, 2022 for a purchase price of approximately $54.6 million.

The property consists of one industrial distribution building containing approximately 135,000 square feet on 6.5 acres. The property is at 3660 Thomas Road, adjacent to US 101, the Bayshore Freeway, provides 13 dock-high and five grade-level loading positions and parking for 91 cars. The property is 100% leased to four tenants, which expire between 2022 and 2027, and the estimated stabilized cap rate is 2.5%.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.

About Terreno Realty Corporation
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

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The Music Box combines inspirational architecture and outstanding interiors to create a unique new landmark for Southwark, with the lower levels shared with the London Centre of Contemporary Music.


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INVESTMENTS

Lument Provides $16.8 Million to Acquire Affordable Housing Tower in Colorado

Lument | February 04, 2022

Lument recently closed a $16.8 million Fannie Mae DUS® loan to acquire Residences at Franklin Park, a 92-unit affordable multifamily community in Denver, Colorado. Timothy Hoppin, director at Lument, led the transaction. Closing this deal was particularly satisfying, as the loan will allow the sponsor to acquire this 92-unit property and preserve much-needed affordable housing in the Denver area, The sponsor was able to secure a new 20-year Housing Assistance Payment (HAP) contract that will help the community maintain safe, comfortable, and affordable housing." Hoppin The sponsor of the loan is Edgemark, a repeat Lument client and well-established presence in Colorado, Texas, and throughout the Midwest. The property will be managed by Selden Property Management, which currently oversees 17,000 units across Iowa, Kansas, Nebraska, Texas, Illinois, Missouri, and Oklahoma. The Residences at Franklin Park was originally constructed in 1972 and renovated in 2011. The property consists of one 10-story building situated on 0.56 acres, and its 92 units include studios, one-bedrooms, and larger one-bedroom units with dens. All apartments include a full appliance package, laminate countertops, vinyl flooring in kitchen areas, and a private patio or balcony. Group amenities include a community room, laundry facility, and surface parking lot. About Lument ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission.

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REAL ESTATE TECHNOLOGY

BioMed Realty Acquires Premier Site in Seattle Innovation Cluster

BioMed Realty | April 18, 2022

BioMed Realty, a leading provider of real estate solutions to the life science and technology industries, announced the acquisition of Denny Park South in Seattle, Washington. Located in the highly amenitized and talent-rich South Lake Union/Denny Triangle district, the 1.6-acre property consists of two adjacent parcels in close proximity to industry-leading life science and technology companies and research institutions. The proposed 616,000-square-foot development will provide additional optionality for prospective and existing BioMed tenants as they seek purpose-built buildings to accommodate research. BioMed continues to be focused on growth and expansion in our established core markets, like Seattle, where market fundamentals remain strong and innovation ecosystems are thriving. We now have the ability to double our footprint in the Seattle market and continue investing in mission-critical lab infrastructure needed to meet strong tenant demand as life science and technology companies grow and scale in the region.” Tim Schoen, CEO of BioMed Realty The Denny Park South acquisition will allow BioMed Realty to grow its existing 1.2 million-square-foot portfolio in Seattle which includes the recently completed flagship Dexter Yard project in South Lake Union. This acquisition of Denny Park South, along with the T6 Innovation Center at 200 Taylor Avenue North, represent an additional 1.2 million square feet of development potential. The Company anticipates investing an additional $700 million to develop these new facilities over time and expects to create nearly 850 new local construction jobs. BioMed’s local network of best-in-class life science and technology properties, along with its development pipeline now represent 2.4 million square feet in the region to provide companies with the flexibility to grow or establish a presence in the Seattle community. The Company’s local tenants include blue chip companies seeking to be connected to the region’s talent, capital and research institutions. Notable tenants include the Seattle Children’s Research Institute, Novo Nordisk, Omeros Corporation, InBios International, Inc., Lyell Immunopharma, Inc., Shape Therapeutics and Tableau. “The South Lake Union/Denny Triangle cluster where Denny Park South is situated is flush with renowned research institutes like UW School of Medicine, Gates Foundation, Fred Hutch, and the Allen Institute, as well as large tech users such as Amazon, Meta and Apple,” said Jon Bergschneider, President of West Coast markets at BioMed Realty. “As demand from life science and technology companies in this neighborhood remain strong, BioMed is well-positioned to provide much-needed sustainable facilities that enable our tenants to continue their critical, and life-saving, work.” BioMed Realty will continue to prioritize its local community engagement initiatives, expanding on its ongoing efforts to create a more equitable, inclusive and climate-resilient Seattle, with organizations such as the Downtown Seattle Association, the Seattle Chamber of Commerce, the South Lake Union Chamber of Commerce and the University of Washington. About BioMed Realty BioMed Realty, a Blackstone portfolio company, is a leading provider of real estate solutions to the life science and technology industries. BioMed owns and operates high quality life science real estate comprising 14.5 million square feet concentrated in leading innovation markets throughout the United States and the United Kingdom, including Boston/Cambridge, San Francisco, San Diego, Seattle, Boulder and Cambridge, U.K. In addition, BioMed maintains a premier development platform with 3.7 million square feet of Class A properties in active construction in these core innovation markets to meet the growing demand of the life science and technology industries.

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REAL ESTATE ADVICE

Sales of The Residences at Mandarin Oriental, Honolulu Resume

Harold Clarke Advisors | March 09, 2022

Mana'olana Partners, the ownership entity of Mandarin Oriental Hotel and Residences, Honolulu established by Los Angeles-based Salem Partners, has resumed sales of The Residences at Mandarin Oriental, Honolulu after placing its efforts on hold during the COVID-19 pandemic. A new residence gallery is now open and welcoming guests by appointment. As restrictions continue to ease and we see the return of international travel, we believe it is the perfect time to resume sales. We've been pleased with the interest ahead of our official relaunch and look forward to continuing to build momentum." James Ratkovich, Co-Managing Partner of Mana'olana Partners The Residences features 99 private homes that offer an unprecedented lifestyle made possible by the Mandarin Oriental's legendary service coupled with Hawai'i's boundless natural beauty. The property, located at the nexus of Ala Moana and Waikīkī, will be Mandarin Oriental's first residential concept on O'ahu and the brand's only hotel operated on the island. "There is nothing else like The Residences available in Hawai'i," added Ratkovich. "The return of The Mandarin Oriental brand to Honolulu will offer luxury and hospitality unmatched in the world." Residents will enjoy the advantages of bespoke hotel living, including personalized five-star service, exclusive amenities available only to owners and an attentive concierge team dedicated to delivering authentic experiences of Hawai'i. Michelin-level dining, Mandarin Oriental's world-renowned spa treatments, and world-class shopping, dining, and entertainment make every imaginable convenience within steps of The Residences. The Residences at Mandarin Oriental, Honolulu is designed by a premier team, including [au]workshop architects+urbanists, Honolulu-based AHL, Meyer Davis, Dianna Wong, Hart Howerton, Fluidity Design and Molteni&C Dada. Harold Clarke Advisors, foremost ultra-prime real estate industry experts in Hawai'i, is leading sales and marketing for the project. About Mana'olana Partners Mana'olana Partners is the ownership entity of the Mandarin Oriental Hotel and Residences, Honolulu established by real estate development firm Salem Partners. Founded in 1997, Salem Partners comprises three platforms: investment banking, real estate development, and wealth management. Salem's investment bankers have completed billions of dollars of transactions in the media and entertainment, healthcare and life sciences, aerospace and defense, and real estate industries. Real estate development is headed by industry veterans experienced in all segments of the built environment. About Mandarin Oriental Hotel Group Mandarin Oriental Hotel Group is the award-winning owner and operator of some of the world's most luxurious hotels, resorts, and residences. Having grown from its Asian roots into a global brand, the Group now operates 36 hotels and seven residences in 24 countries and territories, with each property reflecting the Group's oriental heritage and unique sense of place. Mandarin Oriental has a strong pipeline of hotels and residences under development and is a member of the Jardine Matheson Group.

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REAL ESTATE INVESTMENT

MG Properties Acquires 215-Unit Community in Orange County's Placentia

MG Properties | April 23, 2022

MG Properties, a private San Diego-based real estate investor, owner, and operator is further expanding their presence in the Orange County, CA with the acquisition of The Herald Apartments. Built in 2021, this 215-unit community is a rare opportunity to acquire a "class A" asset in Placentia. The strong demographics of the surrounding area make The Herald's exceptional amenity package and high-quality finishes well suited to the market. The Herald is ideal addition to our Southern California portfolio. We believe Orange County has strong fundamentals and is positioned well for growth in the near term." Jeff Gleiberman, MG Properties' Managing Director The seller, Lyon Living, was represented by Mark Peterson, Joseph Smolen, Geoff Boler and Jonathan Merhut of Eastdil Secured. The property was financed by Affiliates of Apollo Global Real Estate Management L.P., originated by Lee Redmond and Greg Stampley also of Eastdil Secured. About MG Properties MG Properties is a privately owned, fully integrated real estate company specializing in the investment, redevelopment, and management of multi-family assets. Headquartered in San Diego, California, MG was founded in 1992 by Mark Gleiberman with the mission to enrich communities. MG's current portfolio is comprised of over 28,000 rental homes in California, Washington, Arizona, Nevada, Colorado, and Oregon, including 95 communities.

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Spotlight

The Music Box combines inspirational architecture and outstanding interiors to create a unique new landmark for Southwark, with the lower levels shared with the London Centre of Contemporary Music.

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