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Lightstone Closes on $1B Multifamily Portfolio in Suburban Detroit

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Lightstone has finalized a deal to buy a portfolio of 27 multifamily assets in suburban Detroit for $1 billion from Hartman & Tyner, the company announced. 

The value-add portfolio spans 7,180 apartments, consisting primarily of one- and two-bedroom units, according to documents filed with the Tel Aviv Stock Exchange (TASE). The portfolio was 96 percent occupied as of early December and the NOI for the 12 months prior was $47 million, according to the documents. 

New York-based Lightstone, which already owns more than 5,000 apartment units in the metro Detroit area, plans to invest $75 million into renovating the new portfolio over the next five years, with the expectation of significantly improving the current net operating income.

The 27 properties span 19 submarkets in the Detroit suburbs and include Regency Park in Warren, Cass Lake Shore Club Apartments in Waterford and Woodward North in Royal Oak, according to an investor presentation filed on TASE. None of the apartments are in the city of Detroit.

The portfolio was mostly built in the 1970s by Hartman & Tyner, which owned them since. The sale is part of a longstanding feud between the Hartman and Tyner families, which led to the company’s unraveling after co-Founder Herbert Tyner passed in 2016.

Lightstone is in talks with a lender who would finance the acquisition with a loan package ranging from $625 million to $725 million, with a two-year term and the option to extend for three years. While a Letter of Intent has been signed, it is not binding, per the documents. 

Lightstone also plans to refinance its existing Detroit portfolio, replacing $118 million outstanding with a loan ranging from $310 million to $340 million. 

Chava Gourarie can be reached at cgourarie@commercialobserver.com.

Original Article: commercialobserver.com

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Finance

Biden: Federal Reserve Should ‘Recalibrate’ Policy As Prices Rise

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WASHINGTON – U.S. President Joe Biden on Wednesday said it was appropriate for the Federal Reserve to recalibrate the support it provides to the U.S. economy, in light of fast-rising prices and the strength of recovery.

‘Given the strength of our economy and recent price increases, it’s appropriate, as … Fed Chairman [Jerome] Powell has indicated, to recalibrate the support that is now necessary,’ Biden told a

Source: bignewsnetwork.com

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Finance

Sinema, Manchin Prove There’s Still a Long Way to Go

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The Black community owes a debt of gratitude to United States Senators Kyrsten Sinema and Joe Manchin. The dynamic duo have managed, by supporting the filibuster and crippling two major voting rights bills, to remind any of us who had any doubts or historic contextual misunderstandings that Martin Luther King Jr. Day is a day …

Original Source: azcapitoltimes.com

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Finance

Fields Holdings Adds Another Retail Center in SoCal

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It’s been a big day for retail real estate in Orange County, Calif.

Commercial Observer can first report that Fields Holdings has agreed to pay $28.8 million for Palm Center, a 92,950-square-foot, grocery-anchored shopping center in the city of Orange. This deal follows the $39.5 million sale of Gateway Center in Orange County, which was also announced today. Additionally, it was announced last week that L.A.-based Fields Holdings acquired the Brentwood Shopping Center in Los Angeles for $30 million.

Colliers announced the Palm Center deal and represented the seller, Corning Development. It’s the first change in ownership since it was developed in 1971.

“The seller was Australia-based, and this was their last owned asset in the U.S.,” said Colliers’ El Warner, who brokered the deal with Charley Simpson. “After our team generated 16 offers, the property was purchased by a Los Angeles-based investor who was in a 1031 exchange from the sale of an apartment property. The buyer plans on renovating the shopping center and holding the property long-term.”

Palm Center is located on 8.1 acres at 934–970 North Tustin Street. Albertsons has been the anchor tenant for more than 30 years. Other tenants include The UPS Store, O’Reilly Auto Parts, UFC Gym, Aqua-Tots Swim Schools and America’s Best Contacts & Eyeglasses. Colliers said the sale represents continued demand for quality retail properties with upside in booming U.S. markets. 

“Eleven billion dollars in retail traded hands across the U.S. in November of 2021, the highest level on record in the last decade,” Warner told CO in a statement. “Demand is robust as both 1031 exchanges increased and institutional capital returned into the retail investment space.” 

He added that the pandemic proved retail’s resiliency with increased buyer demand that significantly outpaced supply, creating cap rate compression and additional competition.

“Accelerated interest and limited supply have created an incredibly bullish market for retail moving into 2022,” he said. “Under the current economic conditions, property owners willing to market an asset will see a tremendous return. Legacy properties remain extremely attractive to buyers looking to capitalize on long-term yield.”

Gregory Cornfield can be reached at gcornfield@commercialobserver.com

Source Here: commercialobserver.com

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