NEWS & NOTABLES

MINNEAPOLIS—Jesseka Doherty, vice president of leasing at Mid-America Real Estate – Minnesota, LLC, was named the 30^th president of the Minnesota Shopping Center Association at their annual STARR Awards ceremony held on December 5^th at the Golden Valley Country Club, replacing Rick Plessner, the 2017 MSCA president. Doherty has been a member of MSCA for 15 years and has held several board and co-chair positions during her time. She has participated in several committees, the most current being with the research committee. The association will celebrate its-30-year anniversary in 2018. Other Mid-America Real Estate – Minnesota, LLC veterans, including Doug Sailor, and Mike Sims, have also who have served as MSCA's president.

ST. LOUIS—PGIM Real Estate Finance continues to expand its multifamily group with the addition of St. Louis-based Richard Orf, who will serve as deputy chief underwriter for the firm's Federal Housing Administration lending platform. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. Orf will handle transaction oversight, client relationship management and ensure efficient collaboration between the originations and underwriting teams. Before joining PGIM, Orf was vice president, deputy chief underwriter for Berkadia in St. Louis. He brings more than 15 years of commercial real estate and capital markets experience to the company, having served in similar functions with GE Real Estate and CitiMortgage. In a related effort, PGIM Real Estate Finance also hired Tiffany Baymiller to serve as its FHA closing manager. Baymiller previously was vice president, lead FHA closer at Red Capital Group in Columbus.

DEALTRACKER

CHICAGO—A Berkadia team just helped complete the sale of Eagle Village Apartments, located at 810 Schutte Rd. in Evansville, IN, near the campus of the University of Southern Indiana. Chris Bruzas, Alex Blagojevich and Greg Gonzalez of Berkadia's Chicago office and Kevin Larimer of the Detroit office negotiated the transaction. Phoenix-based Kahuna Investments purchased the 128-unit, garden-style, student-housing apartment community. Corey Peterson, managing member of Kahuna, says the firm continues to seek properties across the Midwest region. “I love the Evansville Market,” he says. “The leadership there continues to focus on all the right things.” Built in 2005, Eagle Village consists of one three-bedroom unit and 127 four-bedroom units. The community amenities at Eagle Village include a clubhouse with billiards, gourmet coffee bar, game room with karaoke, future residents club, full-size basketball court, sand volleyball court, bonfire pit, sun deck with built-in charcoal grill and picnic area, tanning beds, and on-site security.

KANSAS CITY—Onward Investors, a national commercial real estate investment and development firm, has signed a 50,214-square-foot lease with Lockton Affinity, LLC at Executive Centre II in Overland Park, KS. Lockton Affinity had been sought by many landlords in this market, according to officials from the Minneapolis-based Onward, which purchased the three-building, 220,220-square-foot office complex in October 2015. Since the acquisition, the company has completed extensive property improvements to the building's interior and exterior. It installed a micro market serviced by Company Kitchen, and will soon open a fitness center on the property, located at 10881-10901 Lowell Ave. Major tenants include UPS and Maxim Healthcare Services.

DETROIT—Pillar Financial, a division of SunTrust Bank, recently originated a $10.28 million HUD 223(f) loan to refinance the Oaks on Lincoln, a 120-unit, two and three-bedroom garden style apartment community in suburban Oak Park. David Wilkins, managing director of Pillar's Bloomfield Hills office, originated the fixed-rate, 35-year term loan with a 35-year amortization schedule for Kaftan Communities, a multifamily property owner/manager in MI. Kaftan will use the funds to renovate each unit's kitchen and complete other significant improvements that will allow the property to remain at market-rate rents. “David and his team closed this loan on time and secured a lower interest rate than originally quoted,” says Jeffrey Kaftan, president of Kaftan. Wilkins adds that “the multifamily market in and around Detroit remains strong and all agency platforms are actively closing acquisition and refinancing transactions for qualified borrowers.”

CHICAGO—Sue Blumberg, senior vice president/managing director of NorthMarq Capital's Chicago regional office, has finalized the $93 million refinance of Columbus Plaza, a 533-unit multifamily property in downtown Chicago owned by an entity controlled by The Habitat Co. The transaction was structured with a seven-year interest-only term. NorthMarq arranged financing for Habitat through Fannie Mae's Green Program. “Habitat wisely chose the Fannie Mae Green Program as an opportunity to secure a below-market interest rate while upgrading the property to an even more efficient operation by reducing energy and water costs,” says Blumberg. “This property is fully occupied, well-run, well-maintained and perfectly located in the downtown apartment market.” Property upgrades will include extensive work in the lobby and outdoor amenity spaces, including a complete renovation and expansion of the building's deck and grilling stations. Habitat will also add low-flow appliances to reduce water consumption and improve energy efficiency.

NAPERVILLE, IL—Podolsky Circle recently helped complete the sale of 1755 Park St. in Naperville, IL. Its middle market investment advisory team comprised of Alissa Adler, managing principal, John Homsher, principal, and Paul Tesdal, senior vice president, represented the seller, CP Highlands Fund, LP. It was represented by its principals, Randy D. Podolsky and Adam Tarantur. A private investor bought the property for $3.55 million. CP Highlands purchased the 37,668-square-foot, three-story, multi-tenant office building in 2013 and began a capital improvement plan to update the property's automation systems, common areas, building signage as well as tenant spaces and the addition of electric vehicle charging stations. Podolsky Circle Construction, led by Michael Lebar, implemented the improvements. Podolsky also brought the property to 94.4% occupancy before the sale. Tony Russo of Cawley Chicago represented the buyer.

Instant Insights /

Middle Market Digest-The Midwest

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