Opportunities in Brief
Grove Harbour Plaza On Market
For $4.4 Million
CB Richard Ellis, Inc. has received the assignment to sell Grove
Harbour Plaza in the Coconut Grove district of Miami, Florida.
Grove Harbour Plaza is a 26,820-sq.ft., multi-level
retail/entertainment center built in 1986 on historic Commodore Plaza in the heart of
Coconut Grove’s shopping and entertainment district. The four-level retail center has
terraces and balconies overlooking a central courtyard. Elevator service provides access
to all floors plus the garage level, which provides parking for 37 vehicles, an
accommodation not easily found in Coconut Grove. Currently, Grove Harbour Plaza has 100
percent occupancy. The center’s restaurants and eclectic shops buildon a long
tradition of sophistication and fun that has made Coconut Grove a sought-out destination
for local patrons and tourists alike.
Coconut Grove, which is located within the City of Miami, has a
reputation for one-of-a-kind boutiques, lively outdoor cafes, international restaurants,
national festivals, entertainment, and exceptional nightlife. Shop space in Coconut Grove
is limited, placing a premium on existing space. Grove Harbour Plaza provides an
opportunity to acquire income property in a high-end urban “city center”
atmosphere.
Located in the Greater Miami area of Dade County, Coconut Grove is 10
minutes from downtown Miami and Brickell Avenue’s commercial district and 20 minutes
from South Beach, Miami International Airport and the Port of Miami. Dade County has
the largest population, 1,980,000, of the 67 counties in the state of Florida.
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The area’s proximity to the
Caribbean and Latin America provides an ideal hub for international business with
countries in these regions. Grove Harbour Plaza’s asking price is $4.4 million with a 10.5 percent cap rate. Grove Harbor Plaza, right in the middle of trendy Coconut Grove, Florida, is available for purchase. |
For more information, contact Lee
S. Sobel, CB Richard Ellis Miami office, 305-381-6431, e-mail:
www.lsobel2@cbrichardellis.com.
Detroit Investment Fund Seeks
Economic Opportunities
The Detroit Investment Fund, a $52-million private equity fund that
provides capital to growth-oriented businesses, has announced that it is refocusing its
investment strategy to stimulate economic growth in the City of Detroit.
In making the announcement, Detroit Fund President Peter Weipert
commented, “The Detroit Investment Fund is aggressively seeking investment
opportunities with a targeted emphasis on real estate and special projects that have the
potential to have significant impact upon the City of Detroit. We want to ensure that
companies considering expansion or relocation are aware that the Detroit Investment Fund
can supply the critical financing necessary to allow a qualified project to move
forward.”
| According to Weipert, the
fund is creative, innovative and flexible in considering a wide range of possible
transactions. “We can structure financing to meet the needs of the given situation,
whether in the form of subordinated debt, preferred stock or com mon equity. The Detroit Investment Fund can serve as the lead investor or can participate in a transaction led by others,” he says. |
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Typical transactions made by the fund include: real estate investments in which the fund partners with developers; growth funding to support internal growth, acquisitions or relocation to Detroit; management buyouts as partners with management; recapitalizations to reduce over-leveraging of fundamentally sound companies; joint ventures in cooperation with strategic corporate buyers or to enable a corporation to spin off a subsidiary or division and retain an ownership stake. |
Weipert says the Detroit Investment Fund offers
three advantages over traditional funding sources: creativity in dealing with transactions
that the private sector would not likely consider; attractive pricing and flexible terms
for those projects that can demonstrate the potential to have a significant impact upon
the City of Detroit; the possibility of using a Detroit Investment Fund commitment to
attract additional capital because of the high profile of the fund’s partners and the
recognition provided by their endorsement.
The Detroit Investment Fund has invested more than $28 million in
companies that were relocating to, building, or expanding in Detroit between 1995 and
1999. Its investments include projects such as Pro Air, Vitec and Jefferson Village
(formerly known as Graimark). Investments have been in a broad range of industries, from
early-stage companies to mature operations. Investments are made for a variety of purposes
including the acquisition of land, buildings, machinery and equipment, as well as to
provide ongoing working capital.
The Detroit Investment Fund was established by Detroit Renaissance in
1995 with the goal of creating jobs and expanding the tax base of the City of Detroit.
Initial capitalization of $52 million was invested by 28 members of Detroit Renaissance.
For more information, contact Detroit Investment Fund,
313-259-6368.
Prudential Offers Loans of
$1 Million to $30 Million
Prudential Mortgage Capital Company has funding available for its
conduit and interim loan programs.
The conduit loan program offers loans of $1 million to $30 million for
property types including retail, factory outlet centers, full service and limited service
hotels, and self-storage. Terms are 7, 10, 15 and 20 years with amortization of 20-30
years, lockout first four years, treasury defeasance or open the last six months.
Parameters: minimum DCR, 1.25-1.35x; maximum LTV.
The interim loan program offers loans of $5 million to $30 million for
all property types including factory outlet centers. Terms are 3 to 36 months with
interest-only amortization, floating rate over one-month LIBOR, no lockout/prepayment,
minimum 10% recourse (based on risk profile), origination fee of 1%, exit fee of 2% if not
converted to permanent with Prudential Mortgage Capital Company.
For more information, contact Marty Lanigan, Prudential
Mortgage Capital Company, 973-367-3110.
Investment Opportunity Offered in
Tacoma, Washington
WM Riley & Company is looking for investors to participate in an
opportunity evolving in downtown Tacoma, Washington. The Downtown Tacoma Development
Council has targeted nine buildings ranging from 15,000 sq.ft. to 68,000 sq.ft. as
community eyesores. Current owners have been put on notice to demolish them, renovate
them, or sell them to someone who will renovate them; non-compliance will result in per
diem fines. Consequently, many of the buildings have been put up for sale at extremely low
prices. The city is offering incentives for redos, including tax and employment incentives
and renovation funding. The upside potential in acquiring these buildings and turning them
around is attractive, but sophistication is required.
For more information, contact Alan Halle, WM Riley &
Company, 253-383-3990; e-mail: commcore@sprynet.com.
Historic Winery For Sale
Grubb & Ellis, based in Cleveland, Ohio, has announced that the
Lonz Winery and 121.24 acres on Middle Bass Island, located 11 miles offshore Port
Clinton, Ohio in Lake Erie, are to be sold by Mantey-Mon Ami-Lonz Winery and Middle Bass
Development Company of Cleveland. Sealed bids are being taken by the Cleveland office of
Grubb & Ellis until mid-September. The sale is expected to be completed in early
October.
| Made up of five parcels, including a 158-slip marina on the island’s east shore, a small air strip on the southern end, a 65-year-old Gothic-inspired estate, and a century-old wine cellar, the property is the largest available tract in the entire archipelago of 13 Lake Erie islands. The site occupies approximately 20 percent of Middle Bass Island, in the heart of Ohio’s north-coast playground. More than 4.2 million people visit the nearby attractions each year. |  |
With 5200 feet of lake frontage and its
proximity to major tourist attractions such as Cedar Point amusement park, Put-In-Bay and
Kelley’s Island, as well as the metropolitan areas of Cleveland, Toledo and Detroit,
the property is considered a prime spot for recreational development.
“The entire island area is in the middle of a recreational
development boom,” says William Saltzman, senior vice president of Grubb & Ellis.
“It’s a continuation of the tradition that began over 100 years ago when wealthy
Midwesterners build large summer homes on the islands.”
The 124-year-old Lonz Winery has a distinctive history. Operating
during the Civil War as the Golden Eagle Winery, it was once considered the largest wine
producer in the United States. The original cellar, carved out of solid limestone, is on
the National Register of Historic Places. Although most of the vineyards are on North Bass
Island, Middle Bass continues to attract visitors who arrive by ferry for tours and wine
tastings.
The current scarcity of real property with Lake Erie frontage, both on
the islands and the mainland, has boosted values, says Saltzman. In 1998, the nearby
45-acre Rattlesnake Island was sold for nearly $5 million.
For more information, contact William D. Saltzman, senior vice
president, or Kurt Wagner, analyst/project director, Grubb & Ellis, 216-861-3040, or
visit the company’s Web site at www.grubb-ellis.com.