News and Notes on Trends, New Projects and Construction In the Commercial Real Estate Development Pipeline Around the U.S.
Avalon Developers Closes $126.5M in Construction Financing
North American Properties - Atlanta, Ltd. (NAP), in a joint venture with Sarofim Realty Advisors, has closed on construction financing begun vertical construction on Avalon, a residential, office, hotel and retail project in Alpharetta, GA.
The venture landed $126.5 million in financing for the first phase of the project, including an $86.5 million syndicated senior loan by Wells Fargo Bank and Bank of America, and a $40 million mezzanine loan provided by JP Morgan Asset Management. Eastdil Secured arranged the financing package.
Vertical construction has begun a month ahead of schedule for the project scheduled to open in October 2014. Avalon's first retail phase is now 75% leased, with recently added retailers including Giovanni Di Palma's Antico Napoletana, Bantam + Biddy by Chef Shaun Doty, Tommy Bahama, Vineyard Vines, Exhale Spa, West Elm, Kinnucan's Specialty Outfitter, Sage Boutique, Free People, Janie and Jack, C. Wonder and L'Occitane.
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Avalon has also signed leases with more than two dozen other retailers and restaurants, including Anthropologie, Banana Republic, Bocado Burger Bar, Cru Food and Wine, Gymboree, Kona Grill, Lululemon, Marlow's Tavern, Pinkberry, Regal Cinemas and Whole Foods. Pre-leasing for the second retail expansion, scheduled to open in fall of 2015, is under way.
The project includes 101 for-sale residential homes by town urbanist Lew Oliver, builder Monte Hewett Homes and Atlanta Fine Homes Sotheby's International. The first model homes will be available in June 2014, followed by the first move in the following October.
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Naftali Group Completes Assemblage for Lux Chelsea Condo Project
The Naftali Group has acquired five buildings to create a footprint in Chelsea on the north side of West 25th Street between Seventh and Eighth Avenues for a 12-story, 61-unit condominium project.
The developer purchased 245-259 West 25th St. in late 2012 and has now added an assemblage 261-267 West 25th St. for a total cost of $20.1 million.
Naftali Group is in the design phase for a project that calls for the demolition of the existing structure to develop the property into a luxury condominium building containing 108,393 square feet.
"We anticipate that there will be strong condo demand from buyers seeking a downtown feel in a central location," said CEO and Chairman Miki Naftali.
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Western Realco Sells OC Spec Industrial Development
Western Realco and partner AEW Capital Management have sold the 83,078 square-foot industrial building at 2850 Orbiter St. in the Orange County suburb of Brea, CA.
Los Angeles-based digital and screen printing provider Coyle Reproductions, Inc. paid $11.5 million cash for the property, which is the first speculative industrial building to be developed and sold in Orange County since the market downtown, according to CBRE, which represented both seller and buyer in the transaction.
Sean Ward, first vice president, Ben Seybold, senior vice president, and Keith Greer, associate, represented the seller. Brian Cole, senior associate, Steve Young, senior associate, and Rick McGeagh, senior vice president, represented the buyer.
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Hallmark Partners to Build 55-Unit Condo Project
Hallmark Partners has unveiled plans for Beacon Riverside, a luxury condominium tower on the St. Johns River in Riverside, FL.
Beacon Riverside, on the St. Johns River at 500 Bishopgate Lane, is the first condo building to go under development in the Jacksonville market in nearly a decade. Construction is scheduled to begin the first quarter of 2014 with completion slated for the fourth quarter of 2015.
The 16-story building will feature 55 for-sale residences ranging in price from $600,000 to nearly $2 million. The 2,200- to 4,000-square-foot residences will include 10-foot ceilings and terraces.
The building is framed by a 7,500-square-foot single grand penthouse residence on the top floor.
The planning, design and construction teams for the building are comprised of members that created the Villa Riva Condominiums and Townhomes and 220 Riverside residential projects.
Kaiser Permanente Opens Westside Medical Center
Kaiser Permanente has opened Westside Medical Center in Hillsboro, OR, the first hospital in Oregon to achieve LEED Gold for New Construction and one of only two LEED Gold medical centers in the state.
San Francisco-based Mazzetti provided mechanical, electrical and plumbing design, energy modeling and LEED consulting to Kaiser during the design and construction of the medical center, which broke ground in 2009.
The facility is also the first LEED gold certified hospital for Kaiser Permanente. In the design phase, Mazzetti led two eco-charrettes and provided modeling and analysis of potential energy conservation measures, including heat recovery, co-generation and geothermal heat pumps.
Other Mazzetti work resulted in energy efficient lighting, a 70% reduction in lighting power density in the hospital’s parking garage and a 100-kilowatt solar photovoltaic array on top of the parking garage that provides partial power for the structure’s lighting.
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