The Fed's rate hike from 0.50% to 0.75% reiterates the positive economic outlook for 2017 that could accelerate monetary policy in the coming year, according to Marcus & Millichap. Rising interest rates will remain a significant factor in the commercial real estate market that could force asset repricing, widen the gap in expectations and slow transaction velocity as investors reassess prospective yields. While many sellers are still trying to achieve peak pricing, buyers are re-evaluating acquisition criteria in a rapidly moving capital environment. The performance outlook remains positive, but modest upward pressure on cap rates is emerging, says the Marcus report.—Lisa Brown
BY THE NUMBERS
FARMINGTON, NM—The average asking rental rate per square foot per year for retail properties as of midyear was $16.51. Rental rates remained unchanged compared to the prior three months, with no change year-over-year. Countywide average rental rates are unchanged at $16.54 per square foot per year for retail properties currently for lease, according to LoopNet.
VAN BUREN, AR—The average asking rental rate per square foot per year for retail properties as of midyear was $9.61. Rental rates remained unchanged compared to the prior three months, with no change year-over-year. Countywide average rental rates are unchanged at $9.41 per square foot per year for retail properties currently for lease, according to LoopNet.
NEWS AND NOTABLES
DENVER—DCT Industrial is celebrating its 10th Anniversary as a public REIT this month. The company celebrated by ringing in the New York Stock Exchange bell in NYC on Dec. 13.
DALLAS—Andrew Wiley has joined JLL as vice president of the retail brokerage group. In his role, he will focus on business development, sales transactions, tenant and landlord representation. Wiley brings more than seven years of commercial real estate experience to JLL. Most recently, Wiley managed leasing at Leon Capital Group. He oversaw a portfolio of more than 200 assets across Texas, Oklahoma, Arkansas, Colorado, Nevada and other markets in the Southeast and Southwest United States.
FORT WORTH—Trademark Property Co., the retail and mixed-use development, investment and institutional services firm, welcomed Jencey Keeton as its new director of corporate marketing. With 12 years of experience in retail and entertainment brand strategy and marketing, Keeton will lead the marketing and communications initiatives for Trademark and its 17 properties.
DALLAS—Brian Bacharach is now executive vice president on the JLL Capital Markets team in the Dallas office. Bacharach will provide healthcare real estate advisory and transaction services across the nation for investor and provider clients.
DEAL TRACKER
GRAND PRAIRIE, TX—Comfort Auto LLC leased 13,350 square feet located at 2618 W. Highway 303. Cannon Green and Luke Davis with Stream Realty Partners represented the landlord, Cabot Properties. Charles Lester with Realty Advisors represented the tenant.
FRISCO, TX—Dal-Tile Distribution Inc., leased 34,804 square feet at Frisco Commerce Center located at 6644 All Stars Ave. Bob Hagewood with Stream Realty Partners represented the landlord, Windsor at Frisco Commerce Center LLC. Nathan Lawrence with CBRE represented the tenant.
PLANO, TX—JW Nutritional LLC leased 13,952 square feet located at Jupiter Business Park at 2532 Summit Ave. DFW Lee & Associates LLC represented the tenant. Matt Dornak and Ryan Wolcott with Stream Realty Partners represented the landlord, DRA Advisors.
DALLAS—MOFAM LLC sold its 43,140-square-foot building located at 8400 Ambassador Row to 8400 Ambassador Row LLC. Jason Moser with Stream Realty Partners represented the seller and Altschuler and Company represented the buyer.
CARROLLTON, TX—WRF Investments Inc. purchased the 120,280-square-foot building at Prologis Trinity Mills 3, located at 2425 Camp Ave. from Lightning PropCo I LLC. Ryan Boozer and Todd Poticny with Stream Realty Partners represented the buyer and Nathan Denton with Lee & Associates represented the seller.
BOULDER, CO—Velocis Advisors, the asset management and advisory service division of Velocis, has sold 5775 Flatiron Parkway, a 96,267-square-foot office building located in Boulder's Flatiron Business Park. Velocis Advisors sold the building on behalf of its client, a Dallas-based family office, to Menlo Equities for an undisclosed price.
HOUSTON—CBRE Capital Markets arranged the sale of 29 restaurant properties with an approximate value of $23.3 million. CBRE's Donna Kolius, Pierce Owens and Kaylie Walker have been marketing the portfolio since early 2016. The team specializes in the disposition of multi-market portfolios nationwide, which includes single-tenant net leased properties, sale-leaseback properties and portfolio offerings. Tenants of the properties include franchisees of Pizza Hut, KFC, Long John Silver's, Taco Bell, Golden Corral and Schlotzky's. The properties are located in 16 states including Georgia, Illinois, Kentucky, Louisiana, Minnesota, Missouri, North Carolina, New Mexico, New York, Oklahoma, Ohio, Pennsylvania, Tennessee, Texas, Virginia and West Virginia. There are 14 remaining properties available for acquisition.
BUILDING BLOCKS
DENVER—Alliance Residential Company, multifamily developer, announces two new communities in Denver: Broadstone Highlands32 in the Highlands Square neighborhood and Broadstone Dylan in the RiNo neighborhood. Dylan recently opened and Highlands32 is scheduled to open next month.
ROSENBERG, TX—McAlister Real Estate, a privately owned real estate brokerage, has represented and closed the sale of a 549-acre land tract 34 miles southwest of Houston. The property is located southeast of the Hand Road and FM 2218 intersection, on the northeast side of Pleak Road. It was sold to BGM Land Investments Ltd, which plans to develop a single family master-planned community.
The Fed's rate hike from 0.50% to 0.75% reiterates the positive economic outlook for 2017 that could accelerate monetary policy in the coming year, according to Marcus & Millichap. Rising interest rates will remain a significant factor in the commercial real estate market that could force asset repricing, widen the gap in expectations and slow transaction velocity as investors reassess prospective yields. While many sellers are still trying to achieve peak pricing, buyers are re-evaluating acquisition criteria in a rapidly moving capital environment. The performance outlook remains positive, but modest upward pressure on cap rates is emerging, says the Marcus report.—Lisa Brown
BY THE NUMBERS
FARMINGTON, NM—The average asking rental rate per square foot per year for retail properties as of midyear was $16.51. Rental rates remained unchanged compared to the prior three months, with no change year-over-year. Countywide average rental rates are unchanged at $16.54 per square foot per year for retail properties currently for lease, according to LoopNet.
VAN BUREN, AR—The average asking rental rate per square foot per year for retail properties as of midyear was $9.61. Rental rates remained unchanged compared to the prior three months, with no change year-over-year. Countywide average rental rates are unchanged at $9.41 per square foot per year for retail properties currently for lease, according to LoopNet.
NEWS AND NOTABLES
DENVER—DCT Industrial is celebrating its 10th Anniversary as a public REIT this month. The company celebrated by ringing in the
DALLAS—Andrew Wiley has joined JLL as vice president of the retail brokerage group. In his role, he will focus on business development, sales transactions, tenant and landlord representation. Wiley brings more than seven years of commercial real estate experience to JLL. Most recently, Wiley managed leasing at Leon Capital Group. He oversaw a portfolio of more than 200 assets across Texas, Oklahoma, Arkansas, Colorado, Nevada and other markets in the Southeast and Southwest United States.
FORT WORTH—Trademark Property Co., the retail and mixed-use development, investment and institutional services firm, welcomed Jencey Keeton as its new director of corporate marketing. With 12 years of experience in retail and entertainment brand strategy and marketing, Keeton will lead the marketing and communications initiatives for Trademark and its 17 properties.
DALLAS—Brian Bacharach is now executive vice president on the JLL Capital Markets team in the Dallas office. Bacharach will provide healthcare real estate advisory and transaction services across the nation for investor and provider clients.
DEAL TRACKER
GRAND PRAIRIE, TX—Comfort Auto LLC leased 13,350 square feet located at 2618 W. Highway 303. Cannon Green and Luke Davis with Stream Realty Partners represented the landlord, Cabot Properties. Charles Lester with Realty Advisors represented the tenant.
FRISCO, TX—Dal-Tile Distribution Inc., leased 34,804 square feet at Frisco Commerce Center located at 6644 All Stars Ave. Bob Hagewood with Stream Realty Partners represented the landlord, Windsor at Frisco Commerce Center LLC. Nathan Lawrence with CBRE represented the tenant.
PLANO, TX—JW Nutritional LLC leased 13,952 square feet located at Jupiter Business Park at 2532 Summit Ave. DFW Lee & Associates LLC represented the tenant. Matt Dornak and Ryan Wolcott with Stream Realty Partners represented the landlord, DRA Advisors.
DALLAS—MOFAM LLC sold its 43,140-square-foot building located at 8400 Ambassador Row to 8400 Ambassador Row LLC. Jason Moser with Stream Realty Partners represented the seller and Altschuler and Company represented the buyer.
CARROLLTON, TX—WRF Investments Inc. purchased the 120,280-square-foot building at
BOULDER, CO—Velocis Advisors, the asset management and advisory service division of Velocis, has sold 5775 Flatiron Parkway, a 96,267-square-foot office building located in Boulder's Flatiron Business Park. Velocis Advisors sold the building on behalf of its client, a Dallas-based family office, to Menlo Equities for an undisclosed price.
HOUSTON—CBRE Capital Markets arranged the sale of 29 restaurant properties with an approximate value of $23.3 million. CBRE's Donna Kolius, Pierce Owens and Kaylie Walker have been marketing the portfolio since early 2016. The team specializes in the disposition of multi-market portfolios nationwide, which includes single-tenant net leased properties, sale-leaseback properties and portfolio offerings. Tenants of the properties include franchisees of Pizza Hut, KFC, Long John Silver's,
BUILDING BLOCKS
DENVER—Alliance Residential Company, multifamily developer, announces two new communities in Denver: Broadstone Highlands32 in the Highlands Square neighborhood and Broadstone Dylan in the RiNo neighborhood. Dylan recently opened and Highlands32 is scheduled to open next month.
ROSENBERG, TX—McAlister Real Estate, a privately owned real estate brokerage, has represented and closed the sale of a 549-acre land tract 34 miles southwest of Houston. The property is located southeast of the Hand Road and FM 2218 intersection, on the northeast side of Pleak Road. It was sold to BGM Land Investments Ltd, which plans to develop a single family master-planned community.
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