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Franklin Street arranges 7,500-square-foot lease at business center

Franklin Street leased 7,500 square feet to Tri-Ed, a technology distribution company, on behalf of Brandywine Business Center owner Independence Realty. Tri-Ed will move from its Pinellas County location to Tampa to better serve its customer base. The wholesaler signed a seven-year lease that will include a buildout for a showroom floor. For more: FranklinSt.com.

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Scout & Molly’s opening in Sawgrass

Franklin Street, a full-service commercial real estate company, helped secure a long-term lease for Scout & Molly’s boutique to open its first location in Northeast Florida.
The store in the Sawgrass Shopping Center is expected to be open by The Players Championship in May.

Scout & Molly’s is a women’s fashion boutique for all ages.

The concept is based in North Carolina and was founded in 2002. It has 10 locations and another 13 are planned.

The Sawgrass store is the first to open in the Jacksonville area and the local franchisees already have other locations in the works, including a location in the San Marco neighborhood.

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John Leonard joins Franklin Street

John Leonard joined Franklin Street, a full-service commercial real estate company, as regional managing partner.

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Penciled Deals Today May Look Different Next Year

ATLANTA—The commercial real estate industry is still buzzing about the Federal Reserve’s first interest rate hike since 2006. What does it mean for investors? How will this impact developers? What is in store for the U.S. economy as a whole?

There’s no easy answer, of course. Changing interest rates have a ripple effect—and more than one potential impact—on commercial real estate.

On top of that, the interest rate hike comes just as another wave of the so-called wall of commercial mortgage-backed securities (CMBS) maturities comes to bear on the market. In 2015, 2016 and 2017 there are more than $350 billion of CMBS loans maturing, according to CREFC. About $100 billion of that is set to come due this year, the CMBS Surveillance Maturity Report reveals.

Steve Bennett, a senior director in the loan origination practice of Franklin Street’s Atlanta office, has his eyes on the big picture. He tells GlobeSt.com if rates continue to rise as expected over the next 12 months, the class A properties will be the first to see a slight increase in cap rates. 

“Having said that, a deal that pencils out today should be marketable at a similar price point this time next year, however, leverage on these deals may be a bit lower,” Bennett says. “For most class B and C multifamily deals cap rates should remain flat as rental rates continue to move higher and offset increased capital costs.”

Want the inside scoop on construction lending trends? Read my recent column featuring Greg Winchester, co-CEO of Trimont Real Estate Investors.

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This Miami Market is on Fire

MIAMI—Franklin Street just expanded its South Florida multifamily operations. Dan Dratch and Tony Gannacone have joined the firm as investment associates specializing in multifamily deals.

Dratch and Gannacone work closely with Franklin’s Greg Matus, regional managing partner of South Florida, who also serves as mentor, manager, and trainer for the office’s multifamily and retail investment agents. The duo is based in the Fort Lauderdale office and focus on transactions across South Florida.

“The multifamily market in Broward County has seen significant growth in the number of transactions as well as sales volume over the past couple years,” Dratch tells GlobeSt.com. “With Congress recently passing some tax breaks for foreign investors and the upcoming election, 2016 should prove to be an even stronger year.”

Before joining Franklin, Dratch worked for the CoStar Group in Miami as a sales executive. He was responsible for new sales and revenue growth across all of CoStar’s commercial and multifamily data, analysis, forecasting, and marketing services. He has closed over $600,000 in annualized revenue and managed a book of business of more than $1.5 million in annual revenue. Dratch calls it “an exciting time to be in the multifamily transactions arena.”

Gannacone brings more than 15 years of business development, asset acquisition, debt finance and restructuring and investment banking achievements to Franklin. He previously served as a managing director for NextGen Coal and then, as vice president of strategic sales and acquisitions. He was responsible for the origination, analysis, and executive of large land-based transactions.

“The multifamily sector in South Florida is on fire,” Gannacone said. “Investors of all sizes are clamoring to find acquisition opportunities in the region.”

Want more examples? Luxury multifamily is even rising in this emerging neighborhood.

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Land near the St. Johns Town Center purchased for $23.5 million

An Atlanta-based developer planning to add seven to eight stand-alone retailers or restaurants next to the St. Johns Town Center has closed on the property.

Core Property Capital paid $23.5 million for 69 acres of land along Town Center Parkway, across from the center anchored by Publix Super Markets Inc., according to deeds filed in Duval County on Monday. The seller was a combination of HE Otter LLC, Skinner Charles Brightman Jr. Trustee and the Charles Brightman Skinner Jr. Living Trust.

The deal breaks down to about $341,000 per acre. The Shopping Center Group is representing the new land owner in leasing.

Closing on the land adds a new layer of credibility to development plans. It signals that the developer intends to move forward and that construction is likely imminent — a good sign for the region’s retail real estate market.

Carrie Smith, the regional managing partner with Franklin Street, said a planned Town Center Newks that will be one of about seven or eight stand-alone retailers or restaurants that are planned to be constructed on that property.

She said the development signals positive movement for the Jacksonville retail market, particularly the Town Center.

She said vacancy rates for Jacksonville retail is at pre-recession lows.

“We need more supply,” she said.

There’s little to no availability at the Town Center, she said.

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North Carolina-based designer boutique expands into San Marco

Scout & Molly’s Boutique is coming to San Marco as the North Carolina store continues its expansion into Northeast Florida.

Emily Rhodin, the Jacksonville area Scout & Molly’s franchisee owner, signed the lease for the San Marco location at 1960 San Marco Blvd. on Friday.The boutique will fill 950 square feet between Pulp and Reve Boutique, according to Katy Figg of Franklin Street who represented Rhodin in the lease.

She already had signed a lease at Sawgrass Villages at 340 Front Street in Suite 715 in December.

Rhodin plans to open about five of the storefronts in the coming years after leaving her position as a vice president and corporate controller of financial operations at a Jacksonville-based insurance company.

She said the Ponte Vedra Beach location is planned to be open by April with the San Marco location opening in March.

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Power brokers change firms to start 2016

Kurt Keaton, a long-time JLL executive and the brokerage’s former market director for Florida, joined competitor Franklin Street as president of the firm’s real estate and management services division. During Keaton’s 16 years at JLL, where he was managing director, JLL quadrupled its investor client portfolio to more than 30 million square feet. Founded in 2006, Franklin Street today has offices in Tampa, Jacksonville, Miami, Fort Lauderdale and Atlanta.

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Why This Nearly 70-year Old Ice Cream Shop is Coming to the Beaches

Ice cream might be synonymous with the beach, and now one Jacksonville mainstay small business is going to take advantage of that.

Kyle Jones, a family friend of Dreamette’s seven-year owner Johnny Nettles, entered into a trade name license agreement to open the local ice cream parlor at Neptune Beach.

The decision to open the new location stemmed from some nostalgia Jones had about the brand, which has been in Murray Hill since 1948.

“I remember going to Dreamette, since I grew up in Riverside,” Jones, who owns his own property management business, said. “I’ve always been a fan of the product and Dreamette.”

When Nettles started talking about opening a store in the Beaches area, Jones said he started exploring locations in the Beaches Town Center.

But Jones said he never would have gone through with the idea if he didn’t find the right location for the right price.

That location ended up being an 875 square-foot former Yobe Frozen Yogurt shop next to the 7-Eleven, which costs about $22 per square foot. In addition to indoor seating, the location has an outdoor patio, which Jones said will be perfect for a walk-up window to order, similar to the original Murray Hill location.

But Jones added that his store will definitely pay homage to its own location, sporting a beach theme decor in soft colors with whitewashed hardwood floors. He even said that he plans to replace the old frozen yogurt shop’s self-serve machines with aquariums, so guests can sit up at a counter and watch the fish.

The store is expected to be opened by early Spring. If all goes according to plan, Jones said he plans to be in that location for a long time, and could look at expanding to other areas of Jacksonville.

But to do that, the store needs to be a success, which is exactly what Jones is expecting.

“There’s a yogurt location across the street and a custard location, but that area doesn’t have soft serve ice cream,” he said. “There should be a big demand there.”

That’s what Nettles is hoping for, and why he decided to work with Jones in opening a Beaches location. Nettles, who will get paid a fee because Jones is using the Dreamette brand, said the store is opening just in time for peak ice cream season in the spring.

Katy Figg, associate of retail leasing with Franklin Street and who represented the landlord, Huron Sophia LLC, said the expansion was indicative of Dreamette’s status as an important Jacksonville brand.

“It shows that this is a proven brand in Jacksonville that has become a favorite over the last several years,” Figg said. “People want to experience it all over Jacksonville.”

Nettles said he decided to open this new location, as well as the store’s other branches in Mandarin and Macclenny because he wanted to bring the brand to those who went to it as a child.

“A lot of people grew up in Murray Hill and Avondale, and since then a lot of people have moved to other parts of town,” he said. “They still like Dreamette but it’s too far. So I thought I’d expand it and bring Dreamette to where these people had moved.”

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Franklin Street Capital Advisors Closes $20M Loan for Student Housing Property in Tampa

TAMPA, FLA. — Franklin Street Capital Advisors (FSCA) has closed the $20 million refinancing of Campus Palms Apartments, a 570-bed student housing property in Tampa. Ben Miller and Casey Siggins of FSCA arranged the 10-year loan on behalf of a private investor based in Miami. The non-recourse loan features a fixed 4.85 percent interest rate and a 30-year amortization schedule.

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