In this week's edition, a Texas and California-based partnership takes over development and operation of military housing at bases in Georgia, Florida, Massachusetts and Arkansas; Cleveland-based Forest City Enterprises lands financing for three development and expansion projects; Pepsi will open a bottling plant in Mississippi serving the South; and an online university opens a bricks-and-mortar student center in Orlando.

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In The Pipeline is a column by Senior News Editor Randyl Drummer on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project -- or sign up to be added to our distribution list to receive future In the Pipeline columns for free by e-mail. Read last week's column.

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Air Force Hands Over Housing at Four Bases to Private Sector

A partnership headed by Hunt Development Group of El Paso, Texas and Pinnacle AMS Development Co., LLC of Irvine, CA, has taken over private operation and management of 3,689 military homes at air force bases in Georgia, Florida, Massachusets and Arkansas.

The partnership, HP Communities, LLC, and the Air Force finalized the redevelopment plan involving military housing at Moody Air Force Base, GA.; Patrick Air Force Base, FL.; Hanscom Air Force Base, MA.; and Little Rock Air Force Base, AR.

The $243 million Falcon Group project at Little Rock AFB involves development of 315 new homes, renovation of 1,837 homes, and the completion of 148 homes that are in the late stages of development. Construction is scheduled to begin in April 2009.

In addition, Pinnacle and Hunt are working together to co-develop military family housing at Barksdale Air Force Base in Louisiana, Langley Air Force Base in Virginia, Bolling Air Force Base in Washington, D.C., Dover Air Force Base in Delaware, Fort Lee in Virginia, Scott Air Force Base in Illinois, and Nellis Air Force Base in Nevada.

Forest City Snares Financing for Three Projects

Cleveland-based Forest City Enterprises, Inc. announced the completion of financing for three development projects totaling more than $167 million, including an apartment community at the Presidio, a historic former Army base in San Francisco.

At The Promenade in Temecula, CA in Southern California, the company closed on a $75 million construction loan for a 127,000-square-foot, main-street style expansion of the 1.1 million-square-foot retail center. The New York State Teachers' Retirement System, which holds the permanent financing on the existing property, provided the expansion financing. The financing will convert to a permanent loan upon completion of construction.

Forest City closed $67.5 million in construction financing for Presidio, a 161-unit adaptive re-use apartment project at the former base at the foot of the Golden Gate Bridge in San Francisco. Wachovia, RBS Citizens, N.A. and the National Electrical Benefit Fund participated in the transaction.

At University Park at MIT, an urban, mixed-use development in Cambridge, MA, the company completed a $24.9 million refinancing of 91 Sidney, a 135- unit apartment community. KeyBank and Fannie Mae participated in the transaction.

Pepsi Building $49M Bottling Plant in Mississippi

Bottlers and economic development officials in Hattiesburg, MI, have announced plans for Pepsi South, a $49 million Pepsi bottling facility expected to begin production in late 2009.

The Area Development Partnership, Brown Bottling Group and Wis-Pak, a group of bottlers based out of Watertown, WI, announced the 235,804-square-foot project in the Forrest County Industrial Park last week.

Brown Bottling Group, based in Ridgeland, MI, approached area development officials in 2006 about the project, which will bottle and distribute Pepsi products in the South. Brown Bottling distributes Pepsi Cola products throughout central and south Mississippi with locations in Jackson, Hattiesburg, McComb, Meridian and Natchez.

PA Gov. Announces More Loans for Development Projects

Pennsylvania Gov. Edward G. Rendell announced $5 million in loans for development projects in Warren and Philadelphia's University City neighborhood. The projects are expected to create more than 450 construction jobs, 65 full-time jobs and eight part-time positions once completed.

Rendell said investment in these types of projects are essential during a slowing economy because they spur development. The loans were approved by the Commonwealth Financing Authority through the Building PA fund, a real estate component of the governor's economic stimulus program.

Impact PA Fund Inc. received a $2.9 million loan on behalf of Warren Hospitality Associates for a $12.7 million project to build a four-story, 74-room hotel and 37,000-square-foot convention center on Clark Street on the site of the former Loranger Manufacturing Corp. building on downtown Warren.

In addition, the Philadelphia Industrial Development Corp. received a $2 million loan to develop a $40 million extended-stay hotel of up to 120 rooms on 40th Street bordering the University of Pennsylvania campus near the Children's Hospital of Pennsylvania.

Online College Announces Student Support Center in Orlando

Kaplan University announced plans to open a new student support center in a two-story, 124,000-square-foot building in the Central Florida Research Park in Orlando.

The online college has experienced "explosive growth" over the last several years, said university President Andrew S. Rosen. "We looked at 20 different cities and decided that the Orlando site was the best fit for the university because of its affordable cost of living and great labor pool," he said.

The university is finalizing lease arrangements and is planning to open the new facility at 12650 Ingenuity Drive in January. The facility will house admissions advisors, financial aid officers, human resources and information technology representatives who will support Kaplan University’s online students.

Kaplan, which has four other online student support centers in South Florida, expects to transfer about 60 employees from its other locations to get the office up and running, while hiring and training 750 new employees from the Orange County, FL community over the next four years. The university also has centers in Chicago and Phoenix, and eight brick-and-mortar campuses in Iowa and Nebraska.

Kelmore Development Corp., a Colorado-based developer, will break ground this week on The Ridge at Centennial, a new 14-acre office campus in Centennial, CO. Kelmore will offer professional office suites and buildings for sale, as well as building pads and land available for purchase. The campus includes single-story buildings with units ranging in size from 1,600 square feet to 40,000 square feet, for a total of 100,000 square feet.

Student Housing Delivers in Ann Arbor, MI

By Carole Schreck

The first of three buildings that will comprise The Courtyards, a premium student housing community in Ann Arbor, MI, opened at 1780 Broadway St. adjacent to the University of Michigan.

The Courtyards is a four-story development that will ultimately total about 350,000 square feet and contain 72 efficiencies, 152 two-bedroom units, 24 three-bedroom units and 112 four-bedroom units. Kensington/Marquette Partners and Allen & O’Hara Education Services are co-developers of the project.

Units are fully furnished, have washer/dryers and full-sized kitchens with granite countertops. They also have over-sized windows, high-speed Internet access and satellite television.

The rollout schedule was reportedly delayed, though not significantly, as the city of Ann Arbor, University of Michigan and the developers worked out details of the project. Phase two is scheduled for completion by year-end and phase three is expected to be ready for the 2009-10 school year.

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In The Pipeline is a column by Senior News Editor Randyl Drummer on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project -- or sign up to be added to our distribution list to receive future In the Pipeline columns for free by e-mail. Read last week's column.

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More New Development and Land Sales

Amy Harmon of the Blooming Terrace LLC, purchased an approximately 33,700-square-foot infill lot at 1625-1649 Pennsylvania St. in Denver from Stephen Owen for $4.1 million. The corner parking lot is on the northwest corner of Pennsylvania Street and East 16th Avenue. Owen purchased a 1.43-acre parcel in 2000 which included the infill lot. By 2006, Owen had developed and built a mixed-used project at one end of the acreage and decided to sell the parking lot portion to Harmon. Neither the buyer nor Regents Terrace LLC, which Owen is a member of, used broker representation. (By Randy Evans)

Community Access, a nonprofit agency, acquired the religious facility at 960 E. 174th St. in the Bronx, which it plans to replace with affordable housing. The property, formerly a Kingdom Hall for Jehovah’s Witnesses, was sold for $1.75 million by a joint venture of 960 East 174th Street Housing Development Fund Corp. and Abeken Apartments III LLC. The buyer intends to demolish the 4,526-square-foot building and build a 64-unit apartment building as part of an affordable housing project that will be funded by The State of New York. (By Kevin Bryant)

Industrial Development International Inc. purchased 34.7 acres of industrial land located at 1065 Cranbury South River Road in South Brunswick for $10.4 million or about $299,711 per acre. IDI purchased the parcel for development of a 480,000-square-foot cross-dock distribution center. The new building will include 114 drive-in doors, a clear height of 36’, car parking for 120 and a truck court to accommodate 130. There were no reported brokers of the sale. (By Merin Riley)

LGE Design Build, a build-to-suit contractor, has been commissioned to develop a 154,000-square-foot medical office and professional plaza in Gilbert, AZ. The facility will about the size of three football fields and will include 15,000 square feet of retail. The project will be part of the LGE-designed Higley Gateway Medical Facility, which aims to be the Southeast Valley's premier medical office location. The Higley Gateway development is LGE's fourth medical-use project in Arizona this year. Combined, the facilities are valued at approximately $21 million. (By Tomalina Pacheco)

McDougal Cos. purchased a multifamily building at 503-505 W. Sixth St. in Irving, TX, from Singh Harbinder of Singh Family Inter Vivos Trust for $3.7 million, or about $31,897 per unit. The property was purchased for land value and redevelopment potential. The two-story, 82,924-square-foot multifamily building was constructed in 1963 on 4.25 acres in Dallas County. The buyer is developing what is known as "Olde Town". It will include a mixed-use village complete with retail, residential, restaurants, offices and parks, all centered on the Trinity Railway Express. Construction will be planned in five phases. The first phase of construction is scheduled to begin next year. To date, clearing and demolition has occurred, but construction has not yet started. There were no brokers involved in the transaction. (By Montese Henson)

Reorganized School District No. IV of Jackson County took control of 18.26 acres at 300 U.S. 40 Highway in the Kansas City market from Far Land Co. LLC for $1.5 million, or about $82,146 per acre. The school district paid for six acres; Far Land donated the remaining 12.26 acres. Development plans for the land are not finalized at this time. Judy Qualkinbush of JC Hunter Realtors Inc. represented the seller, while the buyer was represented in-house. (By Raven Shaneybrook)

Schlosser Development Corp. broke ground on a four-story mixed-use building at 1011 W. Fifth St. in downtown Austin. The new project will total 86,000 square feet and will be partly leased to HomeAway Inc. as its world headquarters, and also will house West Elm and other retailers. Delivery is scheduled for next August. It's the fourth phase of Schlosser Development's Market District project at the intersections of Fifth and Sixth streets and Lamar. Chris Eaton of Schlosser Development will handle the leasing for the remaining availability in-house. (By William Trentzsch)

Tam International of Houston purchased 26.49 acres of industrial land at the corner of Pinemont Drive and Highway 290 in Houston from Sueba USA Corp. in an off-market transaction. The sale price was undisclosed, but the property was listed for approximately $4.5 million a year ago in a previous transaction. The buyer intends to construct a 150,000-square-foot manufacturing plant on the site. The company plans to start construction in the first quarter of next year. Tam International is an oilfield service company that provides inflatable and swellable packers and other down-hole products and services for the energy industry. Micheal Palmer, John Simons and Susana Rosas of CB Richard Ellis represented the buyer. The seller represented itself. (By Dameon Makinde)

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