Gulf Coast Entertainment LLC (GCE) has chosen Forest City Asset Services LLC, a subsidiary of Cleveland-based Forest City Enterprises Inc., to serve as the master development consultant for the Alabama Motorsports Park, a 2,800-acre, mixed-use, master-planned development in Mobile County, Ala.
The project is planned to feature motorsports facilities, entertainment venues, restaurants, hotels, destination retail, plus a recreational vehicle park, office, industrial and residential components. A 7/10-mile oval speedway, which could eventually boast 70,000 seats, a 3-mile road course and a karting track are slated to be the entertainment centerpieces of the development.
The property is located approximately 15 minutes from downtown Mobile.
Along with the Forest City announcement GCE also announced that it had retained public finance consulting firm MuniCap Inc. to assist GCE and Forest City in all matters related to the project’s tax increment financing (TIF). Prichard City Council approved a $500 million TIF agreement with GCE in August. GCE and Forest City are hopeful that construction will begin in 2010 in order to deliver motorsports activities as early as 2012.
“We selected Forest City as master development consultant because of its proven expertise in public/private partnerships and depth in project planning and long-term development,” said Bill Futterer, general manager of GCE and managing member of PSE-3, the Raleigh, N.C. firm that provides consulting services to GCE.
Canyon-Johnson Urban Fund Provides $28M Loan
Canyon-Johnson Urban Fund provided a $28 million senior loan to BOSC Equities for the renovation of the 150,000-square-foot Brea Plaza neighborhood shopping center in Los Angeles.
The senior loan from CJUF will help fund a renovation plan that will increase the center’s leasable space by approximately 15,000 square feet, expand parking capacity and improve access from local roads. A municipal bond issuance facilitated by the City of Brea will provide the necessary funding to cover an adjacent flood channel, resulting in additional parking, better vehicle access and enhanced views.
To reposition the center, BOSC has been buying out existing leases in advance of the renovation, and has signed new leases with national and regional retailers who will move into the center once the renovation is complete. Existing tenants include Borders, Lucille’s Smokehouse, Starbucks, AT&T, Denny’s and Buca Di Beppo. The post-renovated center is substantially pre-leased to new tenants including Brea 5 Cinemas, Total Wine & More, Chick-Fil-A and Panera.
The renovation project is expected to break ground in January of this year, with a completion targeted for December. KPRS Construction Services will serve as the general contractor for the project with Architects Orange as the leading architect. The property is currently managed by Coreland Cos. and Steadfast Cos. will act as a consultant on the project.
Hanley Negotiates the Sale of Four NNN Properties
Hanley Investment Group Real Estate Advisors announced today that Edward B. Hanley and William B. Asher negotiated the sale of four NNN properties for a total consideration of $15.4 million.
In the first, Hanley and Asher represented the buyer and seller in the $7.8 million sale of a single-tenant PETCO in Denver, CO. Built in 1993, PETCO occupies a 23,057-square-foot building on a 1.4-acre parcel of land. Petco recently signed a 15-year lease that includes rental bumps every five years. The seller, Denver Mexico HAH, LLC, is providing financing in the deal. The buyer was a private investor completing a 1033 exchange.
In a separate transaction, Hanley and Asher along with Phil Berry of Commercial West, represented the seller, Euclid Plaza LLC in the sale of two NNN pad buildings in Chino, Calif., for a total consideration of approximately $5.9 million. The pad buildings, which were built in 2008, are located within Stater Bros. Plaza.
The first pad building sold was a single-tenant, 4,400-square-foot free-standing building leased to Pacific Dental. The purchase price was approximately $2.2 million, representing $489 per square foot. The buyer was a private investor from Glendale, Calif., represented by Scott Hook at Marcus & Millichap. The second pad building sold was a 6,276-square-foot free-standing building leased to Chase Bank and Juice It Up. The purchase price was $3.7 million, representing $590 per square foot. The buyer was JMA Investment LLC represented by Mona Fang at Re/Max 2000 Realty.
Additionally, Hanley and Asher represented the seller, Valindio Partners LLC, in the sale of a single-tenant net-leased 4,000-square-foot Jiffy Lube in Indio, Calif. The purchase price was approximately $1.8 million representing a 6.8 percent cap rate. The buyer, The Melville Family L.P., was represented by Joe Stitick of Investment Property Services in Glendale.
Marcus & Millchap Closes a Series of Deals
Marcus & Millichap Real Estate Investment Services announced the completion of four recent transactions.
In the first deal, Marcus & Millichap sold an 11,200-square-foot CVS Pharmacy single-tenant net-leased property in Vidor, Calif., for $2.2 million. CVS Pharmacy is under a 20-year triple-net lease with four five-year options.
Alvin Mansour, senior vice president investments and a director of the firm’s Net Leased Properties Group in San Diego, and the firm’s Dallas office, had the exclusive listing to market all four properties.
In the CVS deal, the buyer was a limited-liability company that was secured and represented by Mohamed Derbala, an investment specialist in Marcus & Millichap’s Tampa office. Tim Speck, broker, also assisted in closing all four transactions.
The other three deals involved 3,500-square-foot Chase Bank locations marketed by Mansour in three Texas cities—Balch Springs, Fort Worth and Garland. The seller was an unnamed developer and the buyers were unnamed private investors.
The Balch Springs property traded for $2.3 million. The property is a Wal-Mart Supercenter out-parcel with a 15-year triple-net lease with 10 percent rent increases every five years.
The Fort Worth property traded for approximately $1.7 million. The property is under a 15-year triple-net lease with three five-year options. There are 10 percent rent increases every five years in both the initial term and option periods.
The Garland property also traded for approximately $1.7 million. The property is under a 15-year triple-net lease with three five-year options. There are 10 percent rent increases every five years in both the initial term and option periods
Forbes Co. Buys Kmart’s Former Headquarters
The Forbes Co. a Southfield, Mich.-based developer, owner and manager of luxury shopping centers in Michigan and Florida, announced that the company and its partners closed on their purchase of the former Kmart headquarters in Troy, Mich., on December 29. The Chicago office of CB Richard Ellis was the broker for the transaction.
The 40-acre property was purchased by Forbes Frankel Troy Ventures for an undisclosed amount from Diamond Troy JV, LLC. The headquarters building includes 906,000 square feet of space and a parking deck. Forbes manages the Somerset Collection, which is located across the street from the property.
Nathan Forbes, managing partner said in a statement that there are no specific plans for the property in place at this time.
“We’re excited about the purchase and have only just begun to think about the best use for the site,” he explained, adding, “Whatever form the development takes it will, of course, complement Somerset Collection, the Big Beaver corridor and the City of Troy.”
Other Notable Deals
Voit Real Estate Services’ commercialdivision handled the acquisition of a 33,000 square-foot land parcel in Ventura, Calif. for $2.6 million. There is a 40-year ground lease in place with Santa Barbara Bank & Trust, which plans to build a new location within the next several years. Michael Cargile, senior vice president of Voit’s brokerage division in its Irvine, Calif. office, along with Loren Cargile of Voit’s Irvine office and Mike Hefner of Voit’s Anaheim metro office represented the buyer, Islse Sultanian Trust. Fouy Ly of Sperry Van Ness represented the seller, Weintura LLC.
The Orange County office of Holliday Fenoglio Fowler L.P. arranged a $10.8-million refinancing for the 126,315-square-foot Tierrasanta Town Center located just outside San Diego. HFF director Mark Erland worked on behalf of the borrower, Terramar Retail Centers, to secure the six-year fixed-rate loan with a 30-year amortization through Aetna Life Insurance Co.. Loan proceeds were used to pay off an existing insurance company loan on the property that was maturing. Tierrasanta Town Center is 94 percent leased.