Editors’ Weekly News Roundup July 14 – July 18
Illustrating the principle that one retailer’s misfortune may be another retailer’s expansion opportunity, CVS has opened the first of dozens of Pacific Northwest locations it took over from Rite Aid as part of the latter’s bankruptcy proceedings. Our coverage of this opening, CVS Opens First of 64 Former Rite Aid Stores in the Pacific Northwest,was the most read Connect CRE story this past week.
While nearly doubling CVS’ store count in Washington, Oregon and Idaho to more than 130 locations, the expansion also means the phasing out of a regional brand. Of the 64 Rite Aid stores, 20 were branded as Bartell Drugs, including the first to reopen under the CVS banner, a location in the Seattle suburb of Newcastle, WA.
The past week’s second and third most-read stories also involved sales of retail properties. Fullerton Metrocenter Deal is OC’s Highest-Priced Retail Sale in Eight Years reportedSpace Investment Partners’ acquisition of the 395,703-square-foot community retail center from Kite Realty for $118.5 million.
Eastdil Secured arranged the sale as well as acquisition financing, and also was the source for the historical data cited in the story’s headline. “This center is in an outstanding top-tier Orange County location, which is why we were so excited about the acquisition,” said Space Investment Partners managing partner and co-founder Ryan Gallagher.
Moving from the West Coast to the Midwest, the third-ranked Performance Brokerage Brokers Sale of Six Ohio Dealerships detailed the sale of a 108-year-old, family operated network of automobile showrooms in the northeastern part of the state. Comprising five new car dealerships and one specializing in pre-owned vehicles, Sarchione Auto Group will now be part of Ken Ganley Automotive Group.
Founded more than half a century after the Sarchione family began selling cars, Ganley Automotive is a larger organization. It operates more than 50 dealerships across four states including Ohio.
A Weekender story that originally appeared on Connect CRE’s sister website, ApartmentBuildings.com, was our fourth most-read story of the past week. In Multifamily Hotelization: Busting Myths, Supporting Realities, Amy Sorter sounded out experts on what the concept of introducing hotel-like amenities to apartment properties really means.
Among the myths surrounding hotelization is that it’s a passing fad. Not so, Project Management Advisors’ Peter Jones told Sorter. “Shared spaces and hospitality-style services aren’t just perks. They’re essential to making living feel comfortable, connected, and worth the rent.”
Rounding out the top five was a status report on a property sector that has been going through a period of transition. U.S. Industrial Real Estate Adapts to Market Shifts; Vacancy Climbs to 11-Year High cited a Cushman & Wakefield report showing a 15% year-over-year increase in vacancies despite year-to-date net absorption of nearly 60 million square feet nationwide.
As with much else in commercial real estate, performance for industrial varied across regions in the most recent quarter. Cushman & Wakefield reported that the West region recorded negative net absorption of 2.3 million square feet in the second quarter, led by losses in the Inland Empire and Los Angeles—both among the largest and busiest industrial markets in the U.S.