Mill Creek Residential secured construction financing for a housing project in Medford.

A rendering of Mill Creek Residential’s 4000 Mystic Valley Parkway in Medford.

The Boca Raton, Florida-based multifamily developer closed on a $98M construction loan, the Banker & Tradesman reported. The loan comes after the company acquired the Medford industrial site Sept. 4 for $20.5M.

The site at 4000 Mystic Valley Parkway is approved for a 380-unit apartment complex. The company secured the loan from Charlotte, North Carolina-based Truist Bank.

The project includes two buildings containing 350 units and 2K SF of ground-floor retail. The complex will set aside 88 units as income-restricted.

Mill Creek has developed over 4,000 apartments across 15 projects in Massachusetts. 

This summer, the company filed plans for a 321-unit apartment complex at 42 Beale St. in Quincy’s Wollaston neighborhood. In April, the company broke ground on a 172-unit apartment complex at 751 Boston Post Road in Weston.

SALES

Massachusetts sold five vacant parcels at an auction for a total of $2.9M, the Boston Business Journal reported. The properties are located in Westborough, Northborough, Templeton and Phillipston and total 25 acres. 

The state is now seeking bids for properties in Bedford, Bridgewater, Fitchburg and Lowell. The Healey administration said in June it identified 450 acres of state-owned land that could be developed with up to 3,500 housing units.

LEASES

Security and defense manufacturing company Qinetiq signed a 49K SF lease at an office and industrial property at 358 2nd Ave. in Waltham. R.W. Holmes’ Arthur Amadei represented the landlord, Hillside Associates, and the tenant was represented by Colliers’ Adam Schindler and Jason Rexinis.

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Medical equipment company XRHealth signed a 4K SF office lease at 300 First Ave. in Needham. Freudenheim Partners’ Ellie Cullinan represented the tenant, and Commonwealth Commercial Advisors’ Tim Coyle represented the landlord in the transaction. The property is located in Needham Crossing and is adjacent to I-95.

PERSONNEL

Patrick Shields has joined JLL’s Boston Capital Markets team as a managing director. Shields will relocate from the company’s Chicago office. In this new role, he will run the capital markets team alongside Scott Carpenter. Shields has 15 years of experience in real estate and finance. He joined JLL in 2019. 

CONSTRUCTION & DEVELOPMENT

A rendering of Burbank Terrace in the Fenway.

The Fenway Community Development Corp. celebrated the opening of its Burbank Terrace project, a 100% affordable rental property in Boston. The project brings 27 affordable housing units to the site of a former surface parking lot at 72 Burbank St. in Boston’s Fenway neighborhood. The residential project is the first the nonprofit has completed in 20 years.

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A 234-unit affordable housing project was proposed in Newtonville under the state’s 40B housing law, the Banker & Tradesman reported. Atlanta-based Wood Partners proposed the project and estimates it will require a $73M construction loan and $60M in equity.

Trepp reported an increase in CMBS loan losses for September, when $252.5 million across 15 loans were resolved with $139.5 million in losses total, carrying an average loss severity of 55.26% for the month. That compared to $47.2 million of loan losses in August.

The 12-month average disposed balance moved to $266.3 million, down from the $277.7 million that was seen last month, while the 12-month moving average loss severity stood at 63.54% in September, slightly up from the 63.28% seen in the prior month.

The average loss severity for loans resolved in September with losses greater than 2% increased to 58.75%, up from 55.20% in August, according to Trepp. The running average loss severity for losses greater than 2% for the last 12 months was 65.97%, up slightly from the 12-month moving average in August.

Driven by the retail sector, the Trepp CMBS Delinquency Rate continued its uphill climb in September 2024, rising 26 basis points to 5.70%. Although most of the major property types contributed to the rise in the overall rate, retail contributed to about 50% of the net change in the total delinquent loan amount.

The retail delinquency rate rose 86 bps in September to 7.07%, Trepp reported. The last time the retail delinquency rate was above 7.0% was April 2022. A large single-asset, single-borrower deal that previously was current on payments but now registers as a nonperforming matured balloon was one of many large retail loans to turn delinquent in September.

Office accounted for 37% of the $2-billion net increase in the overall dollar amount of delinquent loans in September, with the office delinquency rate increasing 39 bps to 8.36%. Multifamily’s month-over-month increase was smaller at three bps to 3.33%, while industrial CMBS delinquencies declined 18 bps to a rate of 0.32% for the month.

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

Greenstone Partners, a commercial real estate brokerage firm, has expanded its brokerage team with Jacob Goldstein, as Director. Since becoming a licensed broker in 2016, Goldstein has been involved in $100+ million of multifamily and mixed-use transactions throughout the Chicagoland area, with property sizes ranging from six to 100 units. Prior to joining Greenstone Partners, Goldstein spent eight years at Essex Realty Group, where he advanced to the role of Director.

Intersect Illinois announced that Eileen Mitchell, President of Midwest States at AT&T, and Kristof Terryn, CEO of Zurich North America, have joined its board of directors. Mitchell leads external affairs across seven states and heads the company’s policy, philanthropy, and community initiatives. Terryn was named CEO of Zurich North America in 2021 after joining the company in 2004. He has held positions including COO for General Insurance, Group Head Operations, CEO of Global Life, and CEO of General Insurance.

Redwood Living, Inc. recently joined together with representatives from Perkins Township and the Greater Sandusky Partnership to celebrate the opening of Redwood Sandusky in Sandusky, Ohio.  Developed and managed by Independence-based Redwood, the neighborhood includes 136 single-story apartment homes ranging in size from 1,294 to 1,620 square feet.   

Marcus & Millichap completed the sale of a Golden Corral location in Schererville, Indiana, for $4.47 million. The firm’s Sean Sharko, Austin Weisenbeck and Daniel Chumbley, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, had the exclusive listing to market the property on behalf of the seller, a local Chicago real estate investment company, and procured the buyer, an out of state real estate partnership. Josh Caruana, Broker of Record in Indiana, assisted in closing the transaction. 

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

You can now amplify your CRE announcements with Biswire. Effortlessly publish and promote your press releases on Bisnow, where your message will reach more than 11 million readers globally in 47 of the most consequential commercial real estate markets in the industry. Click here to get started. Here is the best of Biswire for September 2023.

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Joint Venture Acquires Bay Harbor Island Apartments

A joint venture involving U.S.-based SOLU Real Estate and Canadian-based 3T Equity has acquired Bay Harbor Island Apartments, a 34-unit community in a prime location near Bal Harbor Mall and Surfside Beach. The acquisition aims to expand SOLU Real Estate’s development portfolio in South Florida, with plans for near-term rebranding and potential future development of the properties.

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Xtremepush Acquires Thunderbite, Enhancing iGaming Solutions

Irish-owned Xtremepush has acquired UK-based Thunderbite, a provider of gamification and loyalty programs, aiming to redefine player engagement and boost customer loyalty across various industries, including sports betting and iGaming. The acquisition promises a unified solution that combines gamification expertise with real-time data, AI, and omnichannel activation.

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RATIO Design Expands Expertise with New Principals

RATIO Design welcomes Clay Markham and Angie Wallin as new Principals, enhancing its hospitality and mixed-use practices. Both were previously with CallisonRTKL and bring extensive design and leadership experience from various global projects and will play pivotal roles in pursuing new opportunities and designing transformative spaces in the rapidly growing hospitality and mixed-use market sectors.

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Fort Capital Acquires Houston Industrial Portfolio XIII

Fort Capital has acquired Houston Industrial Portfolio XIII, a set of Class B light industrial properties, making it the #1 private owner of Class B & C light industrial spaces in Houston. The acquisition includes five buildings across three locations, totaling 258,999 square feet, and is 81% occupied across 97 units. Fort Capital aims to enhance operational efficiency and ensure growth by leveraging its expanded footprint, which now spans approximately 3.8M SF in Houston.

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Cooper Carry Acquires 505Design, Expanding Design Reach

National design firm Cooper Carry has acquired 505Design, enhancing its design capabilities and reach across the U.S. The acquisition aligns with CEO Kyle Reis’ strategic plan focusing on creative capital, agility and growth, and will expand Cooper Carry’s presence with new offices in Boulder, Colorado, and Charlotte, North Carolina. 505Design, known for its mixed-use, retail, and residential projects, will bring additional expertise and a portfolio that includes award-winning developments like Kingsley in South Carolina.

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Peachtree Group Unveils Refreshed Corporate Brand Position

Peachtree Group, a diversified investment firm in commercial real estate, introduces a refreshed brand position and a new tagline, “Guided by Intuition, Grounded by Expertise.” The rebranding aims to better showcase the company’s integrated investment and service platforms, consolidating all affiliated brands under the Peachtree Group umbrella, and introducing a new logo. The firm combines intuitive understanding with expertise to drive growth and exceptional results in its diverse portfolio.

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Peachtree Group Closes $556 Million in Loan Originations

Peachtree Group has closed $556M in loan originations, part of the $1.1B deployed year-to-date, with the remaining $526M utilized to acquire five hotels and initiate three new hotel developments. Amidst concerns of refinancing maturing debt in the commercial real estate sector, Peachtree Group Credit, previously Stonehill, has emerged as a significant player, ranking as the 8th largest U.S. commercial real estate hotel lender. The firm anticipates over $1.0B in originations for 2023 with continued growth into 2024.

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Asa Posner of Sustainable Investment Group Recognized as 2023 LEED Fellow

Asa Posner, Vice President of Sales at Sustainable Investment Group (SIG), has been honored as a 2023 LEED Fellow by the U.S. Green Building Council and GBCI. With nearly 15 years in sustainability and green building services, Posner has led over 220 LEED projects, certifying 70M SF of LEED-certified space, and mentored over 1,000 professionals in earning their LEED credentials. His leadership at SIG has significantly impacted the advancement of sustainability in the built environment.

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Fort Capital Ranked 10th-Best Workplace in Real Estate by Fortune

Fort Capital, a prominent real estate investment firm, has been recognized by Fortune as the 10th-best workplace in real estate for 2023. This accolade underscores the company’s dedication to creating a positive work environment, prioritizing employee well-being, and spearheading innovation in the real estate sector. CEO & President Jason Baxter expressed immense pride in the recognition, attributing it to the team’s persistent pursuit of excellence and commitment to establishing Fort Capital as a leader in the industry.

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EDITOR’S NOTE: Parts of this story were generated by AI and have been reviewed by our editorial team for accuracy.

A wave of maturing debt has been a boon to business for Atlanta-based Peachtree Group.

Town Center at Cobb Mall in Kennesaw, Georgia

Peachtree Group, through its Peachtree Group Credit division, has deployed $556M in loans and another $526M to buy five hotels and develop another three projects. Recent deals include a $48M construction loan for a 215-room Autograph Collection hotel in Huntsville, Alabama, a $42.2M first mortgage loan to refinance the 133-room Motif on Music Row hotel in Nashville, Tennessee, and a $42M mortgage loan for the acquisition of Town Center at Cobb mall in Kennesaw.

The firm expects to see market transactions increase through 2024, especially as traditional banks continue to pull back on commercial real estate lending, Peachtree Group Credit Senior Vice President Jared Schlosser said in a press release. Peachtree has in excess of $1B in originations planned for 2023. 

Other loan transactions this year include a $43.6M first mortgage to refinance a 220-room Hampton Inn New York-LaGuardia Airport, a $52M construction loan for a 245-unit apartment project in Mesa, Arizona, and a $23M construction loan for a mixed-use project in Charlotte, North Carolina, according to the release.

SALES

Oliver Forrest Apartments LLC purchased 2566 Whites Mill Road, a 99-unit apartment complex in Decatur, for $10.45M. The property was previously owned by Largo, Florida-based Prosperity Capital Partners, which purchased the property in 2019 for $7M, according to DeKalb County records.

Bull Realty partners Marco Welch and Scott Spalding and Vice President Joe Mitchell brokered the sale.

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GM Derm Medical and Safe Harbour Exchange purchased two Gwinnett County medical office centers occupied by Anne Arundel Dermatology for nearly $6M. One building is at 3850 Pleasant Hill Road in Duluth, and the other is at 3770 Paddocks Parkway in Suwanee. The sellers were not disclosed. 

Bull Realty Healthcare Division President Paul Zeman brokered the sales.

LEASES

Steam Logistics inked a deal for 11M SF at 3225 Cumberland, a 220K SF office building. The company is moving from another office building in the Cumberland-Galleria submarket. 

JLL Executive Vice President Paul Hanna brokered the deal for Steam. Stream Realty Partners Senior Vice President Kevin Driver and Vice President Parker Welton represented the landlord, CP Group. 

DEVELOPMENT

Lincoln Property Company Southeast broke ground on Bloomingdale Trade Center, a 482K SF distribution center off Jimmy Deloach Parkway, 12 miles outside of the Port of Savannah. 

Lincoln Property Senior Vice President Denton Shamburger, Vice President Turner Fortin and leasing associate Colin Beecham are leasing and marketing the warehouse, which is expected to deliver in the fourth quarter of 2024.

Courtesy of Perkins&Will

Perkins & Will principal Lesley Braxton

PERSONNEL

Lesley Braxton has been named principal of cross-practice with design firm Perkins & Will, returning to the firm after a nearly three-year stint with Trahan Architects in New Orleans. During her previous time at Perkins & Will, Braxton led design projects for Samuel Merritt University’s Oakland City Center campus and Emory University’s Office of Advancement & Alumni Engagement and Alumni Memorial University Center in Atlanta. 

Braxton also will continue to serve as an adjunct professor at Auburn University’s College of Architecture, Design and Construction. 

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Paul Berry has joined Mesa Capital Partners as president and chief operating officer. The 30-year commercial real estate veteran most recently was vice chairman of CBRE’s capital markets group in Atlanta. 

Berry joins Mesa as the firm starts raising capital for its 10th fund early next year, according to a press release.