Editors’ Weekly News Roundup June 23 – June 27
Although both retail and lodging have been gathering momentum post-pandemic, multifamily and industrial have remained the two most sought-after commercial property types. It’s therefore fitting that these property types should comprise four of the five most-read Connect CRE stories of the past week, with Federal Reserve news also part of the mix.
In the past week’s most widely seen story, Stream Breaks Ground on Four-Building Industrial in Oxnard, readers learned that the project in question spans 738,000 square feet and is intended to accommodate uses including last-mile, e-commerce and fulfillment operations. A Newmark team is in charge of leasing up the complex, 101 Logistics Center.
“Breaking ground at 101 Logistics Center symbolizes the importance of strong partnerships and maintaining high conviction that is underpinned by fundamentals, particularly during times of economic and market volatility,” said Scott Sowanick, managing director and partner at Stream Realty Partners. Sowanick is leading the development along with colleagues Nick Kreuter and Andrew Warren.
Moving from the West Coast to the Eastern Seaboard, the week’s second most-read story stayed with the industrial product type, but this time the transaction was an acquisition rather than the start of construction. Colorado Investor Acquires Rhode Island Industrial reported that a small (21,570 square feet) warehouse in Bristol, RI sold to Playground Properties for an undisclosed sum.
While the sale price is not known, it’s safe to assume that the seller realized a gain. “A lack of supply for smaller buildings continues to push record sale prices” for Rhode Island industrial, said Marcus & Millichap’s Harrison Klein, who arranged the sale with fellow investment specialist Michael Grant.
Our third most-read story switched to multifamily and Chicago’s South Side. Here, the success story was one of leasing up a new development, the second phase of 43 Green.
The mixed-income, mixed-use community that was the basis of Habitat Fully Leases Apartment Development in Bronzeville is located near the Chicago Transit Authority’s 43d Street Green Line station. Reportedly it’s the first equitable transit-oriented development on the South Side, with project costs that will exceed $100 million by the time the third phase is completed.
The Fed’s Federal Open Market Committee voted to leave its benchmark interest rate unchanged earlier this month. However, FOMC member Christopher Waller told CNBC last week that the status quo on the federal funds rate, maintained since late last year, is poised to change.
As reported in Fed’s Christopher Waller Sees Rate Cut as Soon as July, the Federal Reserve Governor thinks the time to act may be sooner rather than later, specifically to avoid a slowdown in the labor market. “If you’re starting to worry about the downside risk [to the] labor market, move now, don’t wait,” he said. The story was the fourth most-read of the past week’s newly published content.
The week’s fifth most-read new story returned to the apartment sector and to the East Coast, although on the for-sale side rather than rental. West Palm Beach Investors Buy Out Condo Owners, Redeveloping Site detailed the plan to replace the existing property with a taller one that would include retail space.
With unit sizes ranging from 2,770 square feet to a 10,150-square-foot penthouse, the newly developed Flagler House will replace a 40-year-old low-rise. The South Florida Business Journal reported that the investors paid the condo owners more than market value to gain control of the land.