Since the beginning of the year, Next Realty and its affiliates completed three acquisitions: a six-building, multi-tenant office complex in Arlington Heights and two parking facilities, one in Washington, D.C. and another in St. Paul, MN. The transactions further underscore the Next Value-Keep® strategy by acquiring diverse assets across various property sectors.
Arlington Executive Plaza
An affiliate of Next Realty, LLC completed the acquisition of Arlington Executive Plaza, a medical and general office complex consisting of six, single-story buildings located at 3335 – 3385 N. Arlington Heights Road, Arlington Heights, Illinois.
The property is the fourth acquisition for Next Realty Fund IX, LP, a fully diversified investment vehicle.
The six buildings at Arlington Executive Plaza total approximately 62,500 square feet of space and are situated on more than 6.2 acres of land. The property is 90 percent leased by a diverse roster of tenants. Nearly half of the occupancy is concentrated by tenants in medical related fields.
“Given the diverse nature of the tenant mix, the investment presents an opportunity to acquire a stable revenue stream and generate an attractive yield for our investors,” says Branko Kuzmanovic, Director of Acquisitions, Next Realty.
Arlington Executive Plaza is strategically located near the intersection of Arlington Heights and Dundee Roads and benefits from the dense communities of Arlington Heights and Buffalo Grove. The property includes beautiful, park-like landscaping, outdoor features and 246 parking spaces.
Metropole Condominium Garage
An affiliate of Next Realty, LLC acquired the transient parking portion of the Metropole Condominium Garage located at 1515 15th Street NW, Washington, D.C. The Next Realty investment includes two underground levels that contain 72 parking spaces located below The Metropole Condominium Complex.
Developed in 2008, Metropole features 90 modern loft-style units, private terraces and fireplaces. The project includes parking that is deeded to unit owners.
By the nature of their operations, parking facilities are a multi-tenant asset. The location and quality of the asset, along with demand for parking in the area, help to characterize it as a Next Value Keep® investment and fitting for a diversified income strategy.
The property benefits from its infill location in the heart of the 14th Street Corridor in Logan Circle. The 14th Street Corridor, one of D.C.’s most desirable neighborhoods, features unique single-family and multi-family residences, as well as a high concentration of destination restaurants and nightlife.
“The property’s prime location in one of the premier neighborhoods of Washington D.C. makes it uniquely positioned as one of the only transient parking garages near the 14th Street Corridor. As the area continues to densify, the property should continue to be highly desirable.” says Eteri Zaslavsky, Managing Director, Next Realty.
Town Square Parking Garage
An affiliate of Next Realty, LLC has acquired the 498-space Town Square Parking Garage located at 405 Minnesota Street, a prime location in downtown St. Paul, MN.
One of the greatest attributes of Town Square Garage is its unique position in downtown St. Paul. The two-level, subterranean garage is located underneath a series of office buildings and a hotel—totaling 1.3 million square feet of office space and 251 hotel rooms—that creates a natural flow of traffic and demand for parking in this area.
“Town Square is a unique asset and a great opportunity for Next Realty,” says Michael J. Nichols, President, Next Parking LLC. “Few, if any, facilities in St. Paul offer such a prime location and benefit from the ‘built-in’ traffic flow that has made this asset so successful.”
The DoubleTree by Hilton Hotel, Town Square Tower and Concourse – a 27-story, 420,000 square-foot mixed-use building and UBS Plaza – a 25-story, 230,000 square-foot office building are the buildings above the parking facility. All the buildings are directly connected via the skyway system and enjoy direct access to the Town Square Garage. The parking facility also is adjacent to Wells Fargo Place – a 37-story, 650,000 square-foot office building which is also connected to the garage via the skyway.
Dan Rosenberg, Managing Director, and Matt Terpstra, Vice President in the Chicago office of Cohen Financial, a division of SunTrust Bank, arranged the acquisition loan.
Noble Square Begins Lease Up
Tenants have begun moving into the 15 new apartments that are part of the vintage mixed-use, multifamily property at 1523 Chicago Avenue. An affiliate of Next Realty, LLC and a partner acquired the four-story property, with ground floor and lower level retail space, through its Next Equity Program in late 2017. The building is located in Chicago’s fast-growing and increasingly popular East Village neighborhood.
The comprehensive renovation and repositioning program began delivering units at the end of April. To date, 10 of the 15 one and two-bedroom units have been rented. As part of the modernization effort to the building all new mechanical systems, appliances and finishes were installed. The units, which include nine one-bedroom and six two-bedroom apartments, are equipped with hardwood floors, modern appliances and balconies that feature a dramatic view of the city.
The building also includes street-level and lower level retail spaces that also have been completely modernized. Restaurants and local hospitality groups have shown significant interest in the 3,600-square-foot ground-level space. The space is also suited for medical, cell phone and other specialty retailer uses.
Through its Next Equity Program, Next Realty provides an equity position for joint-venture acquisitions with local operating partners that provide an additional level of experience and expertise in the marketplace.