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JLL Capital Markets has closed the sale of a four-building industrial portfolio totaling 326,166 square feet in El Paso, Texas and Santa Teresa, New Mexico.
JLL marketed the portfolio on behalf of Blue Road Investments. STAG Industrial acquired the portfolio.
The portfolio comprises four-buildings of infill distribution space that is 100% leased to a dynamic tenant roster of diverse industries.
The buildings are located at 150 Earhardt Way, 9494 Escobar Drive, 9555 Plaza Circle and 9571 Pan American Drive within the North American borderplex, a combination of the Las Cruces and El Paso MSA’s in addition to Cuidad Juarez, Mexico. The borderplex is home to more than 2.7 million residents with one of the largest bilingual workforces in the world and the seventh largest manufacturing hub in North America, employing more than 275,000 individuals in the region. The portfolio features premier, infill logistics locations with immediate access to vital local and regional highways infrastructure including Interstates 10 and 25, Loop 375, UP Intermodal, Ysleta-Zaragoza International Bridge and the Santa Teresa Port of Entry. As a result, the properties are well positioned to ship across the U.S. within two to three business days.
The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Dustin Volz and Trent Agnew, Directors Dom Espinosa and Zach Riebe, Associate Josh Villarreal and Analyst Jack Copher.
JLL Capital Markets announced today that it has closed the sale of an 11-property, best-in-class self-storage portfolio totaling 6,550 units in three high-performing real estate markets, the San Francisco Bay Area; Portland, Oregon; and Austin, Texas.
JLL marketed the portfolio with Pegasus Group, on behalf of the seller, Pegasus Group sponsored investments and facilitated the sale to SecureSpace Self Storage.
Operating under the Central Self Storage brand, the institutional-quality portfolio includes the following properties:
2100 A St., Antioch, CA 2721 Shattuck Ave, Berkeley, CA 324 S. Main St., Milpitas, CA 6880 Santa Teresa Blvd., San Jose, CA 900 Lonus St., San Jose, CA 13760 E. 14th St., San Leandro, CA 355 W. Hedding St., San Jose, CA 1323 NW 16th Ave., Portland, OR 8200 South I-35 Service Road, Austin, TX 14635 West SH-71, Bee Cave, TX 8327 S. Congress Ave., Austin, TX
Primarily concentrated within the San Francisco Bay Area, the portfolio was a truly unique aggregation of best-in-class real estate in a market that rarely sees scale of this type come up for sale, coupled with more recently built Class A facilities in the highly desirable growth markets of Austin and Portland. Comprising over 650,000 square feet, the portfolio was highly sought after by a mix of capital sources as investors continue to push allocations in real estate and particularly alternatives such as self-storage.
The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Managing Directors Brian Somoza and Steve Mellon, Directors Matthew Wheeler and Adam Roossien, and Analyst Jake Kinnear.
Blackstone Group has been on an aggressive REIT buying spree in the last few years.
The asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations of their real estate.
We take a look at two attractive REITs trading significantly below their net asset values.
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Asset management giant Blackstone (BX) boasts a portfolio of assets under management reaching nearly $1 trillion, made up largely of real estate. The asset manager partners with big money players like pension funds and insurance companies to provide strong returns and steady income.
Though Blackstone sometimes acquires individual real estate properties, such as The Bellagio in Las Vegas, it more often seeks opportunities to scoop up whole portfolios that will move the needle. This year, the company has set its sights, particularly on acquisitions of real estate investment trusts (“REITs”). Click to read more at www.seekingalpha.com.
Uncertainty be damned. The multifamily market in a number of Texas cities continues to be strong – even “white hot,” depending on whom you ask.
“Dallas multifamily vacancies sit at roughly 5 percent with rents roughly 15 percent over pre-pandemic levels,” rental housing experts at Greystar told REDnews. “Dallas has also had considerable amounts of pipeline delivery, which have been absorbed at record levels during the past few quarters at over 25+ units per month despite rising rents.”
Austin, too, boasts one of the strongest multifamily markets in the state.
“It’s important to understand the supply/demand fundamentals,” said Marcy Phillips, vice president of real estate development for Ryan Companies. “Sometimes, there can be booms in other primary Texas markets. Austin has weathered this well and it appears there is a long runway as the MSA continues to grow.”
There’s no shortage of incentive to build here, according to Venkat Avasarala, founder of Stryker Properties. Click to read more at www.rednews.com.
Randy Blankstein, president of the Boulder Group in Wilmette, Illinois, in an interview with Midwest Real Estate News earlier this year referred to higher interest rates as a possible wrench in the net lease market, something that could slow this commercial sector’s long-building momentum.
And it’s true that interest rates were a big topic of conversation during the 8th annual National Net Lease Summit held by REjournals and Midwest Real Estate News July 28 at the University Club of Chicago. But the speakers during this event — and they included the biggest and most successful players in this space — all agreed, too, that the net lease market remains a resilient one, one capable of fighting through the country’s current economic uncertainties.
As Blankstein said during his early summer interview with Midwest Real Estate News, demand remains high for net lease assets. That demand is strong enough that it is so far overcoming the challenges of higher interest rates. Speakers during the summit agreed: Net lease assets are so attractive, demand is not yet waning.
Optimism, then, ruled the day during the summit. Speakers focused on the strength of such net lease products as drug stores, fast-casual restaurants with drive-thru lanes, dollar stores and auto-supply stores. They also pointed out the seemingly endless demand for industrial real estate.
It was a day filled with positive messages. And the biggest? Yes, rising interest rates are a challenge and could scuttle some net lease deals. But this sector remains resilient. And investors still love this asset class.
Despite the economic challenges facing the country, members of the National Net Lease State of the Market panel had plenty of good news to share with attendees. Participating in this panel were Joel Tomlinson, Ares Management; Randy Blankstein, moderator, The Boulder Group; Andres Dallal, Strategic Lease Partners; Gordon Whiting, Angelo Gordon; Richard Hurd, Hurd Real Estate; and Zachary Pasanen, W.P. Carey.
The optimism continued with the Net Lease Capital Markets Overview panel. Speaking on this panel were Joshua Zhang, Four Corners Property Trust; Ralph Cram, moderator, Envoy Net Lease Partners; Caitlin McLaughlin, Prudential Private Capital; Sean Keane, First Savings Bank; and Karly Iacono, CBRE.
Industrial and healthcare real estate remain in high demand from investors. Speaking about the seemingly unquenchable demand for these product types were Industrial and Healthcare Net Lease panel participants Chad Firsel, moderator, Quantum Real Estate Advisors; Tivon Moffitt, Institutional Property Advisors; Robert Vanecko, Brennan Investment Group; and Gino Lollio, Cushman & Wakefield.
Members of the Net Lease Sale-Leaseback panel were Guy Ponticiello, CBRE; Andrew Sandquist, Newmark; Elizabeth Randall, moderator, Randall Commercial Group; David Piasecki, BV Net Lease Capital; Daniel Nyhan, Mesirow Financial; and James Hanson, Avison Young.
Brandon Svec, national director of retail analytics for CoStar, served as the keynote speaker of the summit. He shared the strong activity numbers in the net lease sector with attendees.
Sharing the latest news on the future of the 1031 Exchange program, were Daniel Wagner, Inland Real Estate Group; Tracy Treger, Syndicated Equities; and Matthew Douglas, Accruit, all of whom participated in the summit’s 1031 Tax Exchange Update panel.
Has office work changed forever? Are companies taking a new approach when searching for new office space? Those are questions that JLL asked in its recently released The Future of Work Survey 2022. And according to the opinions of more than 1,000 strategic decision-makers in businesses across the globe, it looks like COVID-19 and the resulting work-from-home movement have brought big, and more than likely permanent, changes to the office world.
The office world of 2019? That’s likely not coming back anytime soon, according to JLL’s report.
In its report, JLL says that hybrid working is here to stay and that companies that want to attract the best workers should focus on investing in quality office space, something that should be a priority over simply expanding their footprints. The report found, too, that companies are ready to create office spaces that focus more on collaboration and less on busy work.
The numbers from JLL’s survey of business decision-makers paint a clear picture of an office environment that has changed rapidly during the last two years.
According to JLL, 53% of organizations will make remote working permanently available to all employees by 2025, while 77% agree or strongly agree that offering remote and hybrid work is now a key to attracting and retaining talent. The survey found, too, that 69% of organizations have already introduced or will introduce this year technology to boost in-office collaboration.
Survey respondents have also taken a new view of the office space, with 45% saying that the primary purpose of this space is to facilitate collaborative working. This means that companies are recognizing that there is some work that employees can do just as well from their homes as they can from a cubicle or conference room. When it comes to working together on projects and ideas, though? Respondents said that working in office is best to promote fresh ideas and brainstorming.
In good news for CRE professionals, the majority of survey respondents said that they expect to maintain at least some office space. JLL’s survey found that 72% of respondents agreed that in the long term, the office will remain central to their organization. The type of office space companies seek, though, will probably change. A total of 77% of respondents to JLL’s survey said that investing in quality office space is more important than expanding their total footprint.
And 73% of respondents said that they have planned or are planning to make all office spaces open and collaborative with no dedicated desk spaces.
