Red Oak Capital Holdings, LLC has provided $14.5 million in financing for Gateway Center, a 272,300-square-foot regional shopping center in West Bloomfield, Michigan.

The proceeds will be used to refinance a portion of the multi-tenant property. The interest-only loan carries a 24-month initial term, floor rate of 10.00%, and an LTSV of 68.19%.

Stratos Athanassiades, Red Oak’s Regional Manager-Midwest, originated the loan, which was underwritten by Thomas Gorski, Senior CRE Underwriter and closed by Jesus Martinez, Senior CRE Loan Administrator. Matt Shane, principal with SF Capital Group, brought the loan to Red Oak on behalf of the sponsor, CFM Properties.

The Red Oak loan is secured by the 115,491-square-foot portion of the center containing Kohl’s, Harbor Seafood, J. Alexanders Restaurant, four in-line tenants and a vacant outparcel. The remaining 156,802 square feet of the shopping center will be refinanced with a new $24-million CMBS loan from Citigroup.

Colliers closed a $76.725-million acquisition loan on behalf of Four Springs TEN31 Xchange to acquire a 1.1-million-square-foot industrial building fully leased to Ford Motor Company on a long-term basis. EVP Jeremy Thornton, SVPs Nicole Sayers and Andrew Gibson and VP Lauren Smyle sourced the financing. FSXchange has successfully syndicated more than $840 million of net-leased real estate through DST offerings.

Located at 14741 Laplaisance Rd., adjacent to the Interstate 75 corridor in Monroe, MI, the property was developed as a build-to-suit warehouse and logistics facility for Ford. “This acquisition represents a key milestone for Four Springs, reinforcing our commitment to expanding a diversified portfolio of net-lease properties anchored by strong, creditworthy tenants,” said CEO Coby Johnson.

Thornton added, “The completion of this loan is a green shoot in the market. We expect to see additional positive activity as the year progresses.”

Detroit, Chicago and Denver have the highest risk scores among the top 25 metro areas for maturing multifamily loans, Kroll Bond Rating Agency (KBRA) said in a new report. KBRA weighed apartment supply and demand metrics from several sources to derive a risk scale between 1 and 25 for each metric, with one being the most favorable and 25 the worst. 

“In 2024 and 2025, 8.6% of multifamily’s principal balance for the largest 25 MSAs is scheduled to mature ($15.9 billion),” KBTA reported. However, “the percentage of loans maturing in the period can vary meaningfully by MSA. Maturing loans in MSAs with high risk scores could face greater refinancing challenges relative to those with lower scores.” 

For each of the three highest-risk metro areas, low employment growth was a factor, KBRA reported. Detroit and Chicago also exhibited negative population growth along with a relatively higher Home Ownership Affordability Monitor (HOAM) Index, as measured by the Federal Reserve Bank of Atlanta. Denver’s high risk score stemmed mainly from supply issues, while its vacancy rate (8.8%) and percentage of inventory under construction (11.3%) are both higher than the national average. 

At the other end of the spectrum was Las Vegas, which had the lowest risk score, albeit only one-third better than the next two lowest—Houston and San Diego, which had the same score (48).  

Las Vegas benefited mainly from its demand metrics, including current and forecast strong employment and population growth, as well as a favorable HOAM ranking. Houston also benefited from positive employment and population growth, while San Diego, meanwhile, had more positive supply metrics. 

As part of the city’s efforts to eliminate “blight” and improve communities, the Detroit Construction & Demolition Department has demolished its 100th commercial property since January 2023. The long-vacant Charles Hanneman Elementary School located at 6420 McGraw, was the ceremonious 100th site.

The milestone marks progress in setting the stage for revitalization as Detroit aggressively tackles decaying buildings across the city’s landscape. Charles Hanneman was built in 1916 and was an active school for more than 90 years before it shuttered in 2007 due to financial issues.

“We look forward to seeing what this actual site will bring to the community,” said Eva Torres with the Detroit Department of Neighborhoods. Detroit has a list of hundreds of abandoned buildings slated for demolition. “The commercial properties range in categories and types – we do have a significant amount of schools on that list,” said Lajuan Counts from the Detroit Construction & Demolition Department.

Connect Industrial Midwest 2024 will take place on March 5, 2024, at Joe’s Live in Rosemont, Illinois. Click here for more information and to register.

Friedman Real Estate has been selected to partner with Wayne County’s Facilities Management and Planning division to manage the county’s new 1.2 million square foot Criminal Justice Center (CJC).

The property is comprised of an adult detention center with 2,280 beds, a juvenile detention center with 160 beds, 29 criminal courtrooms, and administrative offices. Approximately 1,300 county employees will work at the CJC, with roughly 1,000 visitors expected at the property each day. Friedman was chosen for the assignment due to the firm’s experience managing large campuses and office buildings, particularly those with government and judicial tenants.

Friedman’s Kim Farmer will oversee the management operation at CJC, and she has long-standing relationships with many Detroit-area service vendors. “As the CJC prepares for its imminent opening, Friedman is committed to delivering exceptional property management services, fostering collaboration with all stakeholders, and ensuring the facility’s long-term success,” said David Friedman.

Connect Industrial Midwest 2024 will take place on March 5, 2024, at Joe’s Live in Rosemont, Illinois. Click here for more information and to register.

Greatwater Opportunity Capital is bringing a new $14 million multifamily project to Detroit’s Midtown neighborhood. Located at 3740 Second Avenue, the 39,355-square-foot four-story building will feature 33 studios and 24 one-bedroom apartments.

Greatwater leveraged Opportunity Zone funds and financing from Diversified Members Credit Union. McIntosh Poris is the architect, and the Monahan Company is the general contractor. The Detroit-based firm has renovated Detroit buildings over the last decade to restore housing and preserve affordability.

“Midtown is one of the strongest, most walkable communities in Detroit and we’re excited about bringing much-needed additional housing to the neighborhood,” said Greatwater Co-Founder Jed Howbert. “Our work is about much more than renovation and building structures—it’s about doing our part to build neighborhoods that can thrive for generations to come. The project at 3740 2nd Avenue is an important part of that work, and we look forward to opening its doors to residents and business owners.”