TODAY’S DEALS: Partnership Picks Up Mixed-Use TOD in Chicago
Canyon-Johnson Urban Funds and McCaffery Interest acquire a mixed-use TOD; Cassidy Turley sells a community in Phoenix for $5.3 million; and Phillips Development sells an apartment asset to its equity partner for more than $34 million.
Chicago—A partnership between Canyon-Johnson Urban Funds and McCaffery Interest has agreed to acquire and reposition the Roosevelt Collection, a transit-oriented mixed-use project in Chicago’s South Loop Market.
“The South Loop has truly come into its own as a prime destination in Chicago, and we are looking forward to revitalizing a property that will bring even more life to the area,” says Bobby Turner, managing partner at Canyon.
The Roosevelt Collection features 400,000 square feet of retail and 342 residential units that are currently 90 percent leased. The apartment community has a parking garage, vacant land for a public parks and rights to develop additional multifamily units.
The new owners are planning the demolition of a center median in order to create a more attractive shopping destination. The new project design should attract clothing, home furnishing and electronic retailers to the area. The center is currently anchored by a 16-screen Kerasotes ShowPlace Icon theater.
Roosevelt Collection is located blocks from the “L” train and is within close proximity to 20 colleges and universities. A recent report from Marcus & Millichap predicts that the vacancy rate for retail in Chicago will drop 90 basis points this year to 10.3 percent. There were no properties delivered in the city during the first quarter of 2011, and asking rents are projected to rise 0.8 percent to $18.76 per square foot.
Cassidy Turley sells Phoenix community for $5.3M
Phoenix—Cassidy Turley BRE Commercial has completed the sale of a 161-unit property located at 4728 N. 15th St. in Phoenix. The asset was purchased for $5.3 million by Highland Equity Partners LLC, H3T Capital Partners Inc., and investor Jason Pollack. The seller was 4728 Camelback LLC. Cassidy Turley BRE Commercial’s Executive Vice Presidents David Fogler and Steven Nicoluzakis handled the transaction.
The property was built in 1969 and is located in the Camelback Corridor submarket. Community amenities include gated access, two pools and covered parking. Highland Equity Partners will renovate the property.
Phillips Development sells apartment asset to equity partner for $34M
Charlotte, N.C.–Phillips Development & Realty (PDR) sold Phillips University Center, a 372-unit class A apartment community, to Real Estate Capital Partners, the original equity partner in the project. The recapitalization was in excess of $34 million.
Phillips University Center was originally funded in 2009 by a combination of equity provided by PDR and Real Estate Capital Partners and a construction loan from BBVA Compass Bank, PDR’s longest banking relationship. The complex, which is located in the Northeast/University submarket of Charlotte, N.C., at the junction of I-85 and Harris Blvd, was over 90 percent occupied at the time of the transaction.
The sale will allow PDR to redirect its focus and resources of funds into new market-appropriate projects through their new venture under Phillips-Picerne properties. “This marks a successful completion of our development life cycle for this project, and a beginning of a new phase for our company,” says Don Phillips, managing director for PDR.
Current projects in the development pipeline include a 292-unit Magnolia Park Apartments in Tampa, Fla., a 344-unit Research Park Apartments in Durham, N.C., and the 388-unit Kemah Apartments in Kemah, Texas.