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Franklin Street Closes $12 Million Loan for Student Housing Asset

Franklin Street has arranged a $12 million short-term construction loan for Vertex Apartments, a 138-unit student housing apartment complex located in Tallahassee, Fla. Casey Siggins and Ben Miller of Franklin Street’s Capital Advisors division secured the loan on behalf of the sponsors, experienced student housing owner/operators based out of Boulder, Colo. The 15-month loan has a fixed rate of 9.5 percent and features an interest-only amortization schedule. 

The property was partially renovated at the time of closing this loan and the borrowers will use the proceeds to complete the project by the start of the 2020-2021 school year. The owner plans to reposition the property to offer a high-quality product at more affordable pricing than their Class-A competitors in the market. 

“We were introduced to the client through Franklin Street’s North Florida multifamily investment sales team, led by Jim Reed,” said Siggins, director of loan origination for Franklin Street’s Tampa office. “Franklin Street Capital Advisors leveraged our extensive network of creative capital sources to find a high loan-to-cost solution for an out-of-market sponsor. The loan was closed in less than three weeks from the application being executed. The expedited closing allowed the sponsors access to the construction funds necessary to complete the project within the framework of their business plan.”

“The Tallahassee student housing market is on the verge of experiencing significant growth with several large, Class A assets under development or in pre-development,” said Miller, director of loan origination for Franklin Street’s Tampa office. “We believe the Vertex fits well into this evolving market as the property will offer a more affordable option to students who don’t want to sacrifice quality.”

Built in 1968, Vertex Apartments is centrally located at 1832 and 1834 Jackson Bluff Road and caters to students at nearby Florida State University and Florida A&M University. The complex offers one, two, three and four-bedroom townhome-style apartments.

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

 

Read article at https://www.blaujournal.com/franklin-street-closes-12-million-loan-for-student-housing-asset-in-north-florida/

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Atlanta’s 25 Largest Commercial Real Estate Brokerages

Excerpted from Atlanta Business Chronicle story.

Ranked by 2018 gross dollar volume of sales and leasing transactions out of Atlanta office.

#23

Company Name: Franklin Street

Location/Phone: 3384 Peachtree Rd. N.E. #650, Atlanta, GA 30326, 404-832-1250, www.franklinst.com

2018 Gross Dollar Volume of Sales and Leasing Transactions Out of Atlanta Office: $280,859,847

2018 Gross Dollar Volume Transactions in Atlanta: $183,939,400

No. of Full-Time Licensed Brokers in Atlanta: 24

Total Full-Time Atlanta Staff: 34

Number of Offices Company-Wide: 6

Headquarters: Tampa, Fla.

For full story, visit https://www.bizjournals.com/atlanta/subscriber-only/2019/03/29/atlantas-25-largest-commercial-real.html

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New $18M metro Orlando retail project in the works

Excerpted from Orlando Business Journal story.

A proposed shopping center in a suburb north of Orlando wants to bring much needed new retail space to the area. 

Orlando-based Elevation Development LLC is developing the project, called Shoppes at Longwood, at 250 E. State Road 434 east of the intersection with Ronald Reagan Boulevard, according to plans filed with the state. The shopping center is expected to feature six buildings with roughly 60,000 square feet of retail space. 

Future retailers in the roughly $18 million project may include shops, restaurants, fitness and casual dining users, said Owais Khanani, a partner at Elevation Development. The project is expected to be approved by June and construction may begin as early as fourth-quarter 2019. 

“It’s prime for redevelopment,” said Terrence Hart, a senior director with the Orlando office of Tampa-based commercial real estate agency Franklin Street, who is not involved with the project.

For full story, visit https://www.bizjournals.com/orlando/news/2019/03/27/new-18m-metro-orlando-retail-project-in-the-works.html

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Is My Property a Good Industrial Site?

Frequently I am asked to consider a property for industrial site selection. Properties fit into two types.

“Shovel Ready” is marketable functional property with proper zoning in place, permits for water management, roads, utilities, water, sewer, power and gas or at a minimum engineering plan for all of this. It has a plat and a site plan which allows for breaking off a portion of a larger property for that new factory. This property is ready to develop subject to obtaining a building permit and other rapid approvals.

“Raw Land” lacks all of the above and particularly lacks engineering and proper zoning. The engineering and zoning process takes between 6 to 9 months, water management permits in takes up to 24 months, bringing water, sewer and gas takes up to 12 months and plus, the lack of roads adjoining the property and in the property. Additionally, this is costly with an average cost of about $1,000,000 per 100 acres. Often, this landowner wants to put up the land and find a joint venture (JV) partner to provide the funding. 

Prospective buyers prefer a “Shovel Ready” site because it is ready to go and are especially impressed with sites that are certified as shovel ready by an engineering firm. Raw Land takes too long and has too many variables. Can you get zoning? How much does it cost to bring the property to a functional condition? Site selection is not much different from purchasing anything else. I want it ready to use, I want to understand the costs and I want it now.   

Bringing your property to market can be remarkably easier.  Learn more. Franklin Street, a full-service commercial real estate firm, was established in 2006 and serves clients around the Southeast from its offices in Tampa, Orlando, Jacksonville, Fort Lauderdale, Miami and Atlanta. Laurence Kahn can be reached at Larry.Kahn@FranklinSt.com or 407.458.5419.

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Franklin Street Closes $2.86M Multifamily Sale in Central Florida

Franklin Street has negotiated the sale of Hampton Villas I and II in the Mount Dora submarket of Orlando, for $2.86 million. The 65-unit multifamily property is located at 1515 Lincoln Ave in Lake County. City Walk Residential Villas, LLC, a partnership led by a private local investor, acquired the property from locally-based Hampton Villas, Ltd. Darron Kattan, Kevin Kelleher, Zachary Ames and Robert Goldfinger of Franklin Street Real Estate Services in Tampa represented both parties in the transaction.

 “The Central Florida area features some of the strongest fundamentals in the Florida apartment market,” said Kelleher, senior director of multifamily investment sales at Franklin Street’s Tampa office. “The demand for B and C Class apartment properties also continues to outpace supply.  The investors were drawn by Mount Dora’s long-term occupancy rates, active and outdoor lifestyle, and small-town feel that makes it an attractive place for families and visitors alike.”

Built in 1981, Hampton Villas is conveniently located close to the popular downtown Mount Dora arts district. The property offers a mix of one-, two- and three-bedroom units. Amenities include hi-speed Internet access, alarm systems and a laundry facility. 

Darron Kattan, Kevin Kelleher, Zachary Ames and Robert Goldfinger have over 60 years of combined experience with multifamily real estate in the Tampa Bay Region. 

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

 
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Retail Rents Nearing Peak in Strong Jacksonville Market

Excerpted from GlobeSt.com story.

The retail market in Jacksonville and Northeast Florida continues to be strong, with new development projects breaking ground and others in the pipeline.

Colliers International recently stated that the Northeast Florida retail market remains robust and is attracting significant investment. The brokerage firm reported earlier this month that investors deployed approximately $341 million in retail asset acquisitions in 2018, besting 2017’s totals by approximately 10%.

What is fueling activity in and around Jacksonville? Carrie Smith, managing director of Franklin Street of Jacksonville, provided some insight into that and other questions posed by Globest.com.

Smith specializes in retail tenant and landlord representation, and oversees a portfolio of more than 4.9 million square feet in retail space throughout North Florida. She has represented a variety of national and regional clients including Jimmy Johns, Dollar Tree, Great Clips, Save a Lot, First Watch, Newk’s, Kimco Realty, Kite Realty Group, and Equity One.

For full story, visit https://www.globest.com/2019/03/22/retail-rents-nearing-peak-in-strong-jacksonville-market/

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Top Commercial Real Estate Brokers in Tampa Bay

Excerpted from Tampa Bay Business Journal story.

Ranked by total volume generated out of Tampa Bay in 2018

#8

Company Name: Franklin Street

600 N. West Shore Blvd. #600 
Tampa, FL 33609 
813-839-7300
FranklinSt.com

Total volume 2018: $342.46 million

Sales volume 2018: $195.10 million

Lease volume 2018: $147.37 million

Local selling brokers: 9

Local selling brokers: 12

Revenue volume, local 2018: $17.55 million

Local offices: 1

Year founded: 2006

Total company wide volume 2018: $29.70 million

Total Square Feet Leased Locally 2018: 914,619

Top Local Executive(s): Andrew Wright, CEO/Managing Partner

For full story, visit https://www.bizjournals.com/tampabay/subscriber-only/2019/03/22/top-commercial-real-estate-brokers-in.html
 

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How this female banker-turned-CRE broker climbed the ranks

Excerpted from Orlando Business Journal story.

Yvonne Baker worked for eight years in commercial real estate lending before the late 1980s savings-and-loan crisis struck.

Lending was going to be on hold for some time and Baker realized she needed to try something new. So, she reached out to a real estate broker she knew — Sandy Reppert of Southeastern Properties Inc. in Orlando — and started in industrial leasing and property management. 

Soon, Baker was working on a variety of real estate deals, ranging from Section 8 housing to shopping centers and small office buildings — sort of like a survey course in real estate. “It was critical for me to learn all about the business,” Baker said. “Figuring out what you don’t like is where you figure out your passion.”

Baker discovered she most enjoyed office real estate. About 23 years ago, she received a call from Catherine Reeves, considered one of Central Florida’s most prominent office brokers before her 2018 retirement. Reeves recruited Baker to Associated Capital Properties, which in 1997 merged with Raleigh, North Caroline-based Highwoods Properties Inc. (NYSE: HIW).

Reeves asked Baker if she wanted a salaried job with commission, and Baker said yes. She eventually became senior leasing representative for Highwoods. Fast forward to today, and Baker also has had stints with top commercial brokerage firms JLL (NYSE: JLL) and Cushman & Wakefield Plc. (NYSE: CWK).

Three years ago, she was named regional managing partner of Tampa-based Franklin Street’s Orlando operations, a position she calls her first official “full-on corporate management role.”

For full story, visit https://www.bizjournals.com/orlando/news/2019/03/20/how-this-female-banker-turned-cre-broker-climbed.html

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4 Ways Project Managers Can Improve Your Next Build-Out and Reduce Costs

If you are a landlord or tenant looking to complete a build-out for a new commercial space, then you should strongly consider hiring a well-qualified, experienced project manager to supervise the project. Some commercial property pros think that they can smoothly coordinate a complex build-out while still handling their regular everyday jobs, but my years of experience say otherwise. Project managers are problem solvers. The earlier you can bring them into a project, the better the results. Franklin Street’s T. Scott Williams, an award-winning construction management veteran, shares four ways that using project management services will benefit your commercial renovation job.

1. Keep project on schedule. Project managers keep track of contractor bids, building permit requests, architectural drawing approvals and construction site reviews so you don’t have to. As the project leader, he/she will keep track of things like what date a tenant needs to move into the space before they will be forced to pay a holdover fee. A reliable project manager will make sure that a tenant never winds up paying for rent at two different places simultaneously because of a construction delay. On the landlord side, a project management team can serve as a full construction department for the landlord. The team will also confirm that any lease obligations to commence rent are met on time.

2. Prevent cost overruns.  Project managers will work with all parties involved to speed up a timeline if needed when a critical date is approaching. This is key to keeping your project on budget because a holdover fee can run anywhere from 100 to 250 percent of the rent. If you’re a landlord, a project manager will help you obtain the proper permits and construction pricing, which in turn helps you in properly pricing the tenant improvement allowance. For tenants, a project manager can provide the total costs involved based on the location selected, which will be crucial in helping you determine which space works best for you financially.

3. Select the best vendors. Project managers often work with general contractors and architects from national firms, so they can quickly gather a qualified vendor list to choose from. They can also perform due diligence on all potential vendors from anywhere in the country. Choosing the wrong vendor for a project could increase your costs by up to 50 percent. Therefore, it is wise to have an expert who will control the bidding process and ensure you will hire the most qualified firm for the best price possible.

4. Fix problems. Project managers can lower your costs significantly by finding and correcting problems early in the process. During a recent project, our client’s architectural drawings called for the construction crew to core drill concrete in a floor above an open mezzanine.  It was quickly decided that the core drill would not work as originally envisioned. Having a project manager on-site allowed us to quickly find an alternate solution by utilizing a faux column, which helped us avoid submitting a request for information (RFI) to the architect that would have incurred additional costs. These are the kinds of issues that a knowledgeable project manager can often resolve easily to avoid unnecessary expenses.

Bringing more than 15 years of experience in commercial real estate, T. Scott Williams serves as General Manager for Franklin Street, specializing in commercial property operations, client relations, capital improvement project oversight, leasing planning, and project management.  He can be reached at scott.williams@franklinst.com.

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

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St. Petersburg Apartment Developer Seeks Opportunity Zone Buyer

Excerpted from CoStar story.

The developer of a downtown St. Petersburg, Florida, apartment building is looking to sell, most likely to a buyer that can take advantage of federal tax breaks through the Opportunity Zone program.

DevMar Development of Michigan has hired the Franklin Street brokerage to market the 211-unit Vantage Lofts at 114 16th St. N. in an area that has been designated as an opportunity zone.

There is no set asking price. Greg Matus, a senior vice president of Franklin Street, said he expects to complete a deal within 90 days.

Opportunity zones were created as part of the Tax Cuts and Jobs Act of 2017. The program is meant to encourage development in economically distressed communities by deferring or eliminating capital gains taxes for commercial real estate investors.

Nationwide, there are 8,700 opportunity zones, including more than 420 in Florida. CoStar tracks more than 250 opportunity zone investment funds across the nation.

“It’s one of the hottest topics in real estate and the investment world overall,” said Michael D’Onofrio, managing director of Engineered Tax Services, a West Palm Beach, Florida-based engineering firm specializing in tax credits and incentives.

Vantage Lofts’ future buyer can capitalize on the tax incentives by acquiring the property before construction is complete, Matus explained. Those incentives would disappear if a buyer acquires the 11-story building after it opens, which is expected early next year, he added.

For full story, visit https://product.costar.com/home/news/shared/712491392?utm_source=costar&utm_medium=email&utm_campaign=costar-market-newsletterr&utm_content=p1