Lessen Relocates Chicago Office to Growing Tech Corridor<\/h2>\n\n\n\n![\"Transwestern](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/203-North-LaSalle-St._Chicago.jpg?w=575\")
<\/a>Transwestern signed a 77,000-square-foot lease with Lessen for 203 N. LaSalle St., a Chicago Central Loop building owned by Sumitomo Corporation of Americas. Image courtesy of Transwestern<\/em><\/figcaption><\/figure><\/div>\n\n\nIn the largest new office lease in Chicago\u2019s Central Loop for 2024, Lessen, a tech-enabled, end-to-end solution for real estate property services, signed a 77,000-square-foot lease at 203 N. LaSalle St., a 27-story, 624,724-square-foot, Class A mixed-use building in Chicago\u2019s Central Loop.<\/p>\n\n\n\n
Transwestern brokers were able to leverage the building\u2019s full set of amenities, direct access to nearly every CTA line and its debt-free owners to stand out among other Central Loop office buildings. They also received a boost from Google, which is renovating the James R. Thompson Center office building at 100 W. Randolph St. into its new Chicago headquarters. When completed in 2026, the building will house about 2,000 Google employees.<\/p>\n\n\n\n
Transwestern\u2019s Kathleen Bertrand, Eric Myers and John Nelson represented the building\u2019s ownership, Sumitomo Corp. of Americas, in the June transaction. Jake Ehrenberg and Brian Means of JLL represented Lessen.<\/em><\/p>\n\n\n\n\u201cThere is new momentum and potential revitalization in the Central Loop thanks to Google\u2019s purchase of the James R. Thompson Center,\u201d Bertrand told Commercial Property Executive<\/em>. \u201cTech companies such as Lessen are being drawn to buildings like 203 N. LaSalle St. that are close to the Thompson Center.\u201d<\/p>\n\n\n\n![\"Real](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape.jpg?w=1024\")
<\/a>Real estate firm Davis acquired WestHealth, a three-building, 201,000-square-foot outpatient medical center in Plymouth, Minn., for $72 million from Harrison Street Real Estate. Image courtesy of Davis<\/em><\/figcaption><\/figure>\n\n\n\nDavis Acquires Minnesota MOB in Complex Deal<\/h2>\n\n\n\n
In a \u201ccomplicated\u201d transaction that took nearly a year to complete, Davis, a Minneapolis-based real estate firm, acquired WestHealth, a three-building, 201,000-square-foot outpatient medical center in Plymouth, Minn., for $72 million in October from Harrison Street Real Estate.<\/p>\n\n\n\n
It was one of the largest single-asset sales in the Minneapolis\/St. Paul market this year. Located at 2805, 2855 and 3005 Campus Drive, the portfolio anchored by Allina Health comprises two outpatient buildings, an ambulatory surgical center and emergency\/urgent-care facility.<\/p>\n\n\n\n
Financing was arranged by Healthpeak and Eric Gundersen of Alerus Financial. Stewart Davis, executive vice president of acquisitions at Davis, led the Davis team. Brian Bruggeman of Colliers represented Allina Health. Chris Bodnar, Cole Reethof and Brannan Knott of CBRE marketed the property for Harrison Street.<\/em><\/p>\n\n\n\nCEO Mark Davis cited capital market instability and fluctuating interest rates and the building\u2019s restrictive ground lease with limited term remaining as challenges in getting the deal across the finish line.<\/p>\n\n\n\n
\u201cA prospective buyer for WestHealth had to have significant confidence in the anchor tenant to believe that these issues could be resolved smoothly,\u201d Davis told CPE<\/em>. \u201cOtherwise, the deal risked falling apart. Ultimately, Allina found the right partner in Davis and after considerable effort, we successfully reached an agreement with HSRE.\u201d<\/p>\n\n\n\n![\"Bayview](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/photo-Masters-Transport-facility-Kansas-City-Image-credit-Finkle-Williams-Arch.jpg?w=1024\")
<\/a>Bayview PACE provided $20.5 million in C-PACE funding to Masters Transportation to build a $72 million, 324,000-square-foot corporate headquarters and transporation center in Kansas City. Image courtesy of Bayview PACE<\/em><\/figcaption><\/figure>\n\n\n\n$21M C-PACE Loan Kicks Off HQ in Kansas City<\/h2>\n\n\n\n
Bayview PACE of Coral Gables, Fla., played a key role in the capital stack for Kansas City-based Masters Transportation to build a new 324,000-square-foot corporate headquarters and flex\/industrial facility, providing $20.5 million C-PACE funding in July for the development.<\/p>\n\n\n\n
The Commercial Property Assessed Clean Energy financing from Bayview PACE complemented other funding, including a $31 million construction loan and $20 million in sponsor equity. Bayview PACE also worked with the Port Authority of Kansas City to structure the PACE assessment to allow for a bond lease providing the property with a real estate tax exemption and a ground lease.<\/p>\n\n\n\n
Marco Lainez, senior vice president of originations for Bayview, arranged the transaction. Alex Hilton and Jake Frodyma of Walker & Dunlop in Overland, Kan., represented the borrower.<\/em><\/p>\n\n\n\nThe C-PACE financing represented 28 percent loan-to-cost. The 20-year non-recourse loan was structured with three years of interest only. The financing provided the sponsor a unique structure at 70 percent costs whereby C-PACE was coupled with Simmons Bank.<\/p>\n\n\n\n
\u201cAs is the case with many C-PACE transactions, it can take some time getting the bank comfortable with consenting to the financing, although it\u2019s been in use for over a decade,\u201d Lainez shared.<\/p>\n\n\n\n
Walker & Dunlop spearheaded discussions between Simmons Bank and Bayview PACE, Lainez said, so the Bayview team could answer all of the bankers\u2019 questions about C-PACE financing<\/a>.<\/p>\n\n\n\nAdding to the deal\u2019s complexity, the borrower entered into a ground lease with the Port Authority as part of an economic development incentive package.<\/p>\n\n\n\n
\u201cThere have only been a few C-PACE transactions with ground leases completed, but it\u2019s a growing trend in the industry, particularly as ground-lease dominated markets like New York City get more active in C-PACE,\u201d Lainez said.<\/p>\n\n\n\n![\"CBRE](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/Wingstop-sign-3-2.jpg?w=1024\")
<\/a>CBRE arranges 112,0000-square-foot lease for growing restaurant chain Wingstop to move its corporate headquarters from the suburbs to the urban core in Uptown Dallas. Image courtesy of CBRE<\/em><\/figcaption><\/figure>\n\n\n\nWingstop Lands on New HQ in Uptown Dallas<\/h2>\n\n\n\n
When successful restaurant chain Wingstop outgrew its corporate office space near Addison Airport in the Dallas suburb of Addison, they made the bold decision to leave the \u201c’burbs\u201d behind. Working with CBRE for about a year, Wingstop executives wanted a cool walkable location in the city loaded with amenities to appeal to workers.<\/p>\n\n\n\n
The end result: CBRE arranged for Wingstop to lease 112,000 square feet on the top four floors of the four-story 245,961-square-foot One West Village in Uptown Dallas on the west side of US 75. It became the second largest office lease transaction in Dallas this year.<\/p>\n\n\n\n
CBRE Vice Chairman Josh White and Senior Vice President Ryan Buchanan represented Wingstop and CBRE\u2019s Trey Smith served as a strategic adviser. The CBRE brokers worked with representatives of building owner OliveMill Holdings: Ryan McManigal, Peter Yates and Chris Selbo.<\/em><\/p>\n\n\n\nAmenities at the iconic glass building now dubbed \u201cOne Wing Village\u201d include open floors for collaboration, a creative space with a podcast studio, a test kitchen, free catered lunches and a fitness center.<\/p>\n\n\n\n
White said the transaction is an example of what he calls an underreported trend: companies creating office spaces that employees are compelled to come to.<\/p>\n\n\n\n
\u201cThey knew exactly what they wanted from their office space and what they wanted to offer their employees. We were able to work closely with them to find the space and get the transaction done within a year,\u201d he shared.<\/p>\n\n\n\n
\u201cIt also bucks the trend of companies moving to the suburbs, and we expect more companies to follow in Wingstop\u2019s move to the urban core,\u201d White stated.<\/p>\n\n\n\n![\"Gantry](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/Creative-Campus-Culver-City.png?w=1024\")
<\/a>Gantry secured a $21.4 million construction takeout loan for Redcar Ltd.’s two-building creative office project in Culver City, Calif., from Standard Insurance. Image courtesy of Gantry<\/em><\/figcaption><\/figure>\n\n\n\nGantry Secures Construction Takeout for LA Creative Office Campus<\/h2>\n\n\n\n
Independent commercial mortgage banking firm Gantry secured a $21.4 million construction takeout loan in August for Redcar Ltd.\u2019s two-building creative office<\/a> project located at 3520-3524 and 3512-3516 Schaefer St. in Culver City, Calif.<\/p>\n\n\n\nGantry Principal Tony Kaufmann and Andrew Ferguson, an associate with Gantry\u2019s San Francisco production office, represented Redcar in the transaction.<\/em><\/p>\n\n\n\nThe loan was provided by Standard Insurance, a life insurance company<\/a> and one of Gantry\u2019s correspondent insurance company lenders. It features an attractive fixed rate with a three-year initial term and 30-year amortization. According Kaufmann, the loan has no structure on it, giving the borrower the flexibility to run its business plan.<\/p>\n\n\n\nThe newly built Class A buildings have a total of 35,000 square feet and feature dramatic 18-foot ceilings, extensive glass, open-floor plans with modern interiors and landscaped exteriors with gathering spaces. The buildings are fully leased. Kauffman said Culver City, located in Los Angeles County, has a substantial creative and entertainment-driven industry base.<\/p>\n\n\n\n
He noted office leasing in select Los Angeles boutique markets is performing well vs. office buildings in the traditional hotspots.<\/p>\n\n\n\n
\u201cNot all office space is struggling in the current market cycle and a flight to quality has kept many newer properties on track,\u201d he said.<\/p>\n\n\n\n![\"Institutional](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/Hamilton-Marketplace.jpg?w=1024\")
<\/a>Institutional Property Advisors, a division of Marcus & Millichap, brokered the $116.5 million sale of Hamilton Marketplace, a 485,000-square-foot regional power center anchored by a ShopRite supermarket near Princeton, N.J., to Paramount Realty on behalf of SITE Centers. Image courtesy of Institutional Property Advisors, a divison of Marcus & Millichap<\/em><\/figcaption><\/figure>\n\n\n\nNJ Regional Power Center Changes Hands for $117M<\/h2>\n\n\n\n
Institutional Property Advisors, a division of Marcus & Millichap, brokered the $116.5 million sale of Hamilton Marketplace, a 485,000-square-foot regional power center anchored by a 65,155-square-foot ShopRite grocery store near Princeton, N.J., to Paramount Realty in September. It was the largest single-asset open-air shopping center transaction to trade in New Jersey since 2017.<\/p>\n\n\n\n
Marketed for the first time since it was developed in phases during the early 2000s, the center includes major retailers like Kohl\u2019s, Ross, Staples, Barnes & Noble, Michaels, Old Navy, Ulta, Burlington and PetSmart. Located on more than 128 acres at Route 130 and Interstate 195, it is one of the nation\u2019s best performing grocery-anchored power centers<\/a>.<\/p>\n\n\n\nBrad Nathanson, IPA executive director and JP Colussi, IPA senior director, represented the seller SITE Centers, and procured the New Jersey-based buyer.<\/em><\/p>\n\n\n\nHamilton Marketplace is one of numerous shopping centers SITE Centers has been selling in the past year across the country as it prepared a spinoff of Curbline Properties Corp.<\/a> into the first and only public REIT focused exclusively on convenience retail assets.<\/p>\n\n\n\nHamilton Marketplace drew a pool of private and institutional investors that hasn\u2019t been seen since before the pandemic, Nathanson said, noting that retail fundamentals are the strongest he has seen in 20 years. Investors are attracted to vintage power centers with strong tenant bases because of the lack of new construction and high costs of re-tenanting.<\/p>\n\n\n\n![\"Stos](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/Stos-Partners_-Salt-Lake-City-industrial-complex.jpg?w=1024\")
<\/a>Stos Partners entered the growing Salt Lake City industrial market with the acquisition of a three-building, 279,233-square-foot industrial complex for $34.99 million. Image courtesy of Stos Partners<\/em><\/figcaption><\/figure>\n\n\n\nStos Enters Salt Lake City With $35M Industrial Buy<\/h2>\n\n\n\n
Stos Partners, a San Diego-based privately held commercial real estate investment and management firm, entered the growing Salt Lake City industrial market in July with the acquisition of a three-building 279,233-square-foot industrial complex for $34.99 million in an off-market transaction<\/p>\n\n\n\n
Alex Harrold of Matthews Real Estate Investment Services represented Stos Partners in the transaction. Eli Priest, Jeff Heaton and Kyle Roberts of Newmark are overseeing leasing.<\/em><\/p>\n\n\n\nLed by Principal and Founder CJ Stos, Partner Jason Richards, Executive Vice President Jay Boyle and Vice President of Acquisitions Morgan Hill, the company is implementing a capital improvement program, stabilizing and re-tenanting the asset.<\/p>\n\n\n\n
Stos said the team identified the property and began working to acquire it even though it was not on the market. He cited the prime location and functionality of the park, wide range of suite sizes and tenant diversification opportunities for the team\u2019s interest.<\/p>\n\n\n\n
Property features include 22-foot clear height, 49 dock-high doors and 18 drive-in ground-level doors.<\/p>\n\n\n\n
Located on 14.5 acres at 900 W 2900\/2950\/3100, the property is near the I-15, I-80, I-215 and SR 201 freeways and about 10 miles from Salt Lake City International Airport.<\/p>\n\n\n\n
\u201cWith the growth of ecommerce, logistics and manufacturing, Salt Lake City continues to strengthen as a key market for industrial users,\u201d Stos said.<\/p>\n\n\n\n![\"Avison](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/660-Twelfth_Manhattan.jpeg?w=1024\")
<\/a>Avison Young arranged a long-term specialty-use lease for a spa to take floors totaling 43,027 square feet at 660 Twelfth, a seven-story 300,000-square-foot building that was redeveloped in 2019. Image courtesy of Avison Young<\/em><\/figcaption><\/figure>\n\n\n\nWellness Tenant Joins the Mix at West Side NYC Property<\/h2>\n\n\n\n
If you want to have a relaxing spa day after a game of pickleball or shopping for a new car, a high-end luxury spa will be opening on the fourth and fifth floors of 660 Twelfth on Manhattan\u2019s West Side thanks to a new 23-year lease for 43,027 square feet of space arranged by Avison Young.<\/p>\n\n\n\n
Avison Young Principals Peter Gross and Nicola Heryet represented the landlord, 677 11th<\/sup> Avenue Realty LLC. Kenneth J. Moore and Loy Carlos, principals at Classiques Modernes International Realty, represented the tenant.<\/em><\/p>\n\n\n\nOther tenants at the property at 660 12th<\/sup> Avenue along the West Side Highway between 48th<\/sup> and 49th<\/sup> streets are the Bram Auto Lexus\/Toyota dealerships, Glass Houses event space and Hell\u2019s Kitchen Pickleball Club. The asset is now full with a diverse mix of unique tenancies that complement each other, Gross noted. Originally built in 2002, the seven-story, 300,000-square-foot asset was redeveloped in 2019. It has unobstructed views of the Hudson River, terraces on the fifth and seventh floors and 24\/7 building security.<\/p>\n\n\n\nThe brokers declined to identify the tenant at this time, noting only that it is considered New York City\u2019s premier Asian-inspired spa. The modern, fully equipped spa will offer a Japanese\/Korean service experience with outdoor amenities. Gross said the spa\u2019s space will include one of the building\u2019s wraparound, usable terraces.<\/p>\n\n\n\n
The Avison Young team specifically targeted a specialty-use tenant for the property \u201cgiven the dynamic make-up of the building.\u201d \u201cThe deal, which is very complex, was achievable in large part due to the tenant\u2019s vision of what the space will eventually become, but also to the ownership\u2019s creative and flexible deal-making ability,\u201d Gross told CPE.<\/em> \u201cThere was a great deal of due diligence that was required by both parties prior to finalizing and, if it wasn\u2019t for the owner and tenant feeling comfortable and trustworthy, this would have been just another prospective deal that came and went.\u201d<\/p>\n\n\n\nRead the December 2024 issue of CP<\/a>E.<\/a><\/em><\/p>\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
These weren\u2019t the biggest transactions, but we didn\u2019t want the year to close without highlighting these impressive agreements and the dealmakers behind them. <\/p>\n","protected":false},"author":1068,"featured_media":1004739034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1521,21825,21783,51037],"tags":[],"class_list":["post-1004738161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","category-finance","category-investment","category-trends"],"acf":[],"yoast_head":"\n
These CRE Transactions Typify an Interesting 2024 - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"These CRE Transactions Typify an Interesting 2024\" \/>\n<meta property=\"og:description\" content=\"These weren\u2019t the biggest transactions, but we didn\u2019t want the year to close without highlighting these impressive agreements and the dealmakers behind them.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-04T21:47:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-20T13:25:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"932\" \/>\n\t<meta property=\"og:image:height\" content=\"699\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/\",\"name\":\"These CRE Transactions Typify an Interesting 2024 - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg\",\"datePublished\":\"2024-12-04T21:47:44+00:00\",\"dateModified\":\"2024-12-20T13:25:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg\",\"width\":932,\"height\":699,\"caption\":\"Deals. Image courtesy of Davis\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"These CRE Transactions Typify an Interesting 2024\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"These CRE Transactions Typify an Interesting 2024 - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/","og_locale":"en_US","og_type":"article","og_title":"These CRE Transactions Typify an Interesting 2024","og_description":"These weren\u2019t the biggest transactions, but we didn\u2019t want the year to close without highlighting these impressive agreements and the dealmakers behind them.","og_url":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2024-12-04T21:47:44+00:00","article_modified_time":"2024-12-20T13:25:44+00:00","og_image":[{"width":932,"height":699,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg","type":"image\/jpeg"}],"author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/","url":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/","name":"These CRE Transactions Typify an Interesting 2024 - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg","datePublished":"2024-12-04T21:47:44+00:00","dateModified":"2024-12-20T13:25:44+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg","width":932,"height":699,"caption":"Deals. Image courtesy of Davis"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/these-cre-transactions-typify-an-interesting-2024\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"These CRE Transactions Typify an Interesting 2024"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/westhealth_exterior_1_landscape-featured.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004738161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004738161"}],"version-history":[{"count":10,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004738161\/revisions"}],"predecessor-version":[{"id":1004741620,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004738161\/revisions\/1004741620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004739034"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004738161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004738161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004738161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a>In the largest new office lease in Chicago\u2019s Central Loop for 2024, Lessen, a tech-enabled, end-to-end solution for real estate property services, signed a 77,000-square-foot lease at 203 N. LaSalle St., a 27-story, 624,724-square-foot, Class A mixed-use building in Chicago\u2019s Central Loop.<\/p>\n\n\n\n
Transwestern brokers were able to leverage the building\u2019s full set of amenities, direct access to nearly every CTA line and its debt-free owners to stand out among other Central Loop office buildings. They also received a boost from Google, which is renovating the James R. Thompson Center office building at 100 W. Randolph St. into its new Chicago headquarters. When completed in 2026, the building will house about 2,000 Google employees.<\/p>\n\n\n\n
Transwestern\u2019s Kathleen Bertrand, Eric Myers and John Nelson represented the building\u2019s ownership, Sumitomo Corp. of Americas, in the June transaction. Jake Ehrenberg and Brian Means of JLL represented Lessen.<\/em><\/p>\n\n\n\n \u201cThere is new momentum and potential revitalization in the Central Loop thanks to Google\u2019s purchase of the James R. Thompson Center,\u201d Bertrand told Commercial Property Executive<\/em>. \u201cTech companies such as Lessen are being drawn to buildings like 203 N. LaSalle St. that are close to the Thompson Center.\u201d<\/p>\n\n\n\n In a \u201ccomplicated\u201d transaction that took nearly a year to complete, Davis, a Minneapolis-based real estate firm, acquired WestHealth, a three-building, 201,000-square-foot outpatient medical center in Plymouth, Minn., for $72 million in October from Harrison Street Real Estate.<\/p>\n\n\n\n It was one of the largest single-asset sales in the Minneapolis\/St. Paul market this year. Located at 2805, 2855 and 3005 Campus Drive, the portfolio anchored by Allina Health comprises two outpatient buildings, an ambulatory surgical center and emergency\/urgent-care facility.<\/p>\n\n\n\n Financing was arranged by Healthpeak and Eric Gundersen of Alerus Financial. Stewart Davis, executive vice president of acquisitions at Davis, led the Davis team. Brian Bruggeman of Colliers represented Allina Health. Chris Bodnar, Cole Reethof and Brannan Knott of CBRE marketed the property for Harrison Street.<\/em><\/p>\n\n\n\n CEO Mark Davis cited capital market instability and fluctuating interest rates and the building\u2019s restrictive ground lease with limited term remaining as challenges in getting the deal across the finish line.<\/p>\n\n\n\n \u201cA prospective buyer for WestHealth had to have significant confidence in the anchor tenant to believe that these issues could be resolved smoothly,\u201d Davis told CPE<\/em>. \u201cOtherwise, the deal risked falling apart. Ultimately, Allina found the right partner in Davis and after considerable effort, we successfully reached an agreement with HSRE.\u201d<\/p>\n\n\n\n Bayview PACE of Coral Gables, Fla., played a key role in the capital stack for Kansas City-based Masters Transportation to build a new 324,000-square-foot corporate headquarters and flex\/industrial facility, providing $20.5 million C-PACE funding in July for the development.<\/p>\n\n\n\n The Commercial Property Assessed Clean Energy financing from Bayview PACE complemented other funding, including a $31 million construction loan and $20 million in sponsor equity. Bayview PACE also worked with the Port Authority of Kansas City to structure the PACE assessment to allow for a bond lease providing the property with a real estate tax exemption and a ground lease.<\/p>\n\n\n\n Marco Lainez, senior vice president of originations for Bayview, arranged the transaction. Alex Hilton and Jake Frodyma of Walker & Dunlop in Overland, Kan., represented the borrower.<\/em><\/p>\n\n\n\n The C-PACE financing represented 28 percent loan-to-cost. The 20-year non-recourse loan was structured with three years of interest only. The financing provided the sponsor a unique structure at 70 percent costs whereby C-PACE was coupled with Simmons Bank.<\/p>\n\n\n\n \u201cAs is the case with many C-PACE transactions, it can take some time getting the bank comfortable with consenting to the financing, although it\u2019s been in use for over a decade,\u201d Lainez shared.<\/p>\n\n\n\n Walker & Dunlop spearheaded discussions between Simmons Bank and Bayview PACE, Lainez said, so the Bayview team could answer all of the bankers\u2019 questions about C-PACE financing<\/a>.<\/p>\n\n\n\n Adding to the deal\u2019s complexity, the borrower entered into a ground lease with the Port Authority as part of an economic development incentive package.<\/p>\n\n\n\n \u201cThere have only been a few C-PACE transactions with ground leases completed, but it\u2019s a growing trend in the industry, particularly as ground-lease dominated markets like New York City get more active in C-PACE,\u201d Lainez said.<\/p>\n\n\n\n When successful restaurant chain Wingstop outgrew its corporate office space near Addison Airport in the Dallas suburb of Addison, they made the bold decision to leave the \u201c’burbs\u201d behind. Working with CBRE for about a year, Wingstop executives wanted a cool walkable location in the city loaded with amenities to appeal to workers.<\/p>\n\n\n\n The end result: CBRE arranged for Wingstop to lease 112,000 square feet on the top four floors of the four-story 245,961-square-foot One West Village in Uptown Dallas on the west side of US 75. It became the second largest office lease transaction in Dallas this year.<\/p>\n\n\n\n CBRE Vice Chairman Josh White and Senior Vice President Ryan Buchanan represented Wingstop and CBRE\u2019s Trey Smith served as a strategic adviser. The CBRE brokers worked with representatives of building owner OliveMill Holdings: Ryan McManigal, Peter Yates and Chris Selbo.<\/em><\/p>\n\n\n\n Amenities at the iconic glass building now dubbed \u201cOne Wing Village\u201d include open floors for collaboration, a creative space with a podcast studio, a test kitchen, free catered lunches and a fitness center.<\/p>\n\n\n\n White said the transaction is an example of what he calls an underreported trend: companies creating office spaces that employees are compelled to come to.<\/p>\n\n\n\n \u201cThey knew exactly what they wanted from their office space and what they wanted to offer their employees. We were able to work closely with them to find the space and get the transaction done within a year,\u201d he shared.<\/p>\n\n\n\n \u201cIt also bucks the trend of companies moving to the suburbs, and we expect more companies to follow in Wingstop\u2019s move to the urban core,\u201d White stated.<\/p>\n\n\n\n Independent commercial mortgage banking firm Gantry secured a $21.4 million construction takeout loan in August for Redcar Ltd.\u2019s two-building creative office<\/a> project located at 3520-3524 and 3512-3516 Schaefer St. in Culver City, Calif.<\/p>\n\n\n\n Gantry Principal Tony Kaufmann and Andrew Ferguson, an associate with Gantry\u2019s San Francisco production office, represented Redcar in the transaction.<\/em><\/p>\n\n\n\n The loan was provided by Standard Insurance, a life insurance company<\/a> and one of Gantry\u2019s correspondent insurance company lenders. It features an attractive fixed rate with a three-year initial term and 30-year amortization. According Kaufmann, the loan has no structure on it, giving the borrower the flexibility to run its business plan.<\/p>\n\n\n\n The newly built Class A buildings have a total of 35,000 square feet and feature dramatic 18-foot ceilings, extensive glass, open-floor plans with modern interiors and landscaped exteriors with gathering spaces. The buildings are fully leased. Kauffman said Culver City, located in Los Angeles County, has a substantial creative and entertainment-driven industry base.<\/p>\n\n\n\n He noted office leasing in select Los Angeles boutique markets is performing well vs. office buildings in the traditional hotspots.<\/p>\n\n\n\n \u201cNot all office space is struggling in the current market cycle and a flight to quality has kept many newer properties on track,\u201d he said.<\/p>\n\n\n\n Institutional Property Advisors, a division of Marcus & Millichap, brokered the $116.5 million sale of Hamilton Marketplace, a 485,000-square-foot regional power center anchored by a 65,155-square-foot ShopRite grocery store near Princeton, N.J., to Paramount Realty in September. It was the largest single-asset open-air shopping center transaction to trade in New Jersey since 2017.<\/p>\n\n\n\n Marketed for the first time since it was developed in phases during the early 2000s, the center includes major retailers like Kohl\u2019s, Ross, Staples, Barnes & Noble, Michaels, Old Navy, Ulta, Burlington and PetSmart. Located on more than 128 acres at Route 130 and Interstate 195, it is one of the nation\u2019s best performing grocery-anchored power centers<\/a>.<\/p>\n\n\n\n Brad Nathanson, IPA executive director and JP Colussi, IPA senior director, represented the seller SITE Centers, and procured the New Jersey-based buyer.<\/em><\/p>\n\n\n\n Hamilton Marketplace is one of numerous shopping centers SITE Centers has been selling in the past year across the country as it prepared a spinoff of Curbline Properties Corp.<\/a> into the first and only public REIT focused exclusively on convenience retail assets.<\/p>\n\n\n\n Hamilton Marketplace drew a pool of private and institutional investors that hasn\u2019t been seen since before the pandemic, Nathanson said, noting that retail fundamentals are the strongest he has seen in 20 years. Investors are attracted to vintage power centers with strong tenant bases because of the lack of new construction and high costs of re-tenanting.<\/p>\n\n\n\n Stos Partners, a San Diego-based privately held commercial real estate investment and management firm, entered the growing Salt Lake City industrial market in July with the acquisition of a three-building 279,233-square-foot industrial complex for $34.99 million in an off-market transaction<\/p>\n\n\n\n Alex Harrold of Matthews Real Estate Investment Services represented Stos Partners in the transaction. Eli Priest, Jeff Heaton and Kyle Roberts of Newmark are overseeing leasing.<\/em><\/p>\n\n\n\n Led by Principal and Founder CJ Stos, Partner Jason Richards, Executive Vice President Jay Boyle and Vice President of Acquisitions Morgan Hill, the company is implementing a capital improvement program, stabilizing and re-tenanting the asset.<\/p>\n\n\n\n Stos said the team identified the property and began working to acquire it even though it was not on the market. He cited the prime location and functionality of the park, wide range of suite sizes and tenant diversification opportunities for the team\u2019s interest.<\/p>\n\n\n\n Property features include 22-foot clear height, 49 dock-high doors and 18 drive-in ground-level doors.<\/p>\n\n\n\n Located on 14.5 acres at 900 W 2900\/2950\/3100, the property is near the I-15, I-80, I-215 and SR 201 freeways and about 10 miles from Salt Lake City International Airport.<\/p>\n\n\n\n \u201cWith the growth of ecommerce, logistics and manufacturing, Salt Lake City continues to strengthen as a key market for industrial users,\u201d Stos said.<\/p>\n\n\n\n If you want to have a relaxing spa day after a game of pickleball or shopping for a new car, a high-end luxury spa will be opening on the fourth and fifth floors of 660 Twelfth on Manhattan\u2019s West Side thanks to a new 23-year lease for 43,027 square feet of space arranged by Avison Young.<\/p>\n\n\n\n Avison Young Principals Peter Gross and Nicola Heryet represented the landlord, 677 11th<\/sup> Avenue Realty LLC. Kenneth J. Moore and Loy Carlos, principals at Classiques Modernes International Realty, represented the tenant.<\/em><\/p>\n\n\n\n Other tenants at the property at 660 12th<\/sup> Avenue along the West Side Highway between 48th<\/sup> and 49th<\/sup> streets are the Bram Auto Lexus\/Toyota dealerships, Glass Houses event space and Hell\u2019s Kitchen Pickleball Club. The asset is now full with a diverse mix of unique tenancies that complement each other, Gross noted. Originally built in 2002, the seven-story, 300,000-square-foot asset was redeveloped in 2019. It has unobstructed views of the Hudson River, terraces on the fifth and seventh floors and 24\/7 building security.<\/p>\n\n\n\n The brokers declined to identify the tenant at this time, noting only that it is considered New York City\u2019s premier Asian-inspired spa. The modern, fully equipped spa will offer a Japanese\/Korean service experience with outdoor amenities. Gross said the spa\u2019s space will include one of the building\u2019s wraparound, usable terraces.<\/p>\n\n\n\n The Avison Young team specifically targeted a specialty-use tenant for the property \u201cgiven the dynamic make-up of the building.\u201d \u201cThe deal, which is very complex, was achievable in large part due to the tenant\u2019s vision of what the space will eventually become, but also to the ownership\u2019s creative and flexible deal-making ability,\u201d Gross told CPE.<\/em> \u201cThere was a great deal of due diligence that was required by both parties prior to finalizing and, if it wasn\u2019t for the owner and tenant feeling comfortable and trustworthy, this would have been just another prospective deal that came and went.\u201d<\/p>\n\n\n\n Read the December 2024 issue of CP<\/a>E.<\/a><\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" These weren\u2019t the biggest transactions, but we didn\u2019t want the year to close without highlighting these impressive agreements and the dealmakers behind them. <\/p>\n","protected":false},"author":1068,"featured_media":1004739034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1521,21825,21783,51037],"tags":[],"class_list":["post-1004738161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","category-finance","category-investment","category-trends"],"acf":[],"yoast_head":"\n<\/a>Davis Acquires Minnesota MOB in Complex Deal<\/h2>\n\n\n\n
<\/a>$21M C-PACE Loan Kicks Off HQ in Kansas City<\/h2>\n\n\n\n
<\/a>Wingstop Lands on New HQ in Uptown Dallas<\/h2>\n\n\n\n
<\/a>Gantry Secures Construction Takeout for LA Creative Office Campus<\/h2>\n\n\n\n
<\/a>NJ Regional Power Center Changes Hands for $117M<\/h2>\n\n\n\n
<\/a>Stos Enters Salt Lake City With $35M Industrial Buy<\/h2>\n\n\n\n
<\/a>Wellness Tenant Joins the Mix at West Side NYC Property<\/h2>\n\n\n\n