Residential and Retail on 1,000 Acres at Evans Farm in Delaware County

Residential and Retail

A New Urbanism concept is set to rise on 1,000 acres in Orange and Berlin Township. While not yet formally approved in its entirety by the Orange Township trustees, all three have expressed strong interest in the project.  The rezoning from agriculture to commercial has been approved.

The new community will begin just east of Olentangy High School and stretch all the way to Alum Creek State Park on the east and eventually all the way north to Berlin Township. The 450 acres in Berlin Township could be a few years off until construction begins.

The goal of the family who owned the large farm was a vision to create a community very different than anything else in Central Ohio using the concept of the New Urbanism movement. New Urbanism calls for walkable, self-contained communities with homes set close to the street, including large usable front porches, walkable local retail, restaurants and services.  Garages will be side entry or from the rear.

This rather fantastic concept got started about six years ago when the family who owned the farm approached developers, Dan Griffin and Tony Eyerman, about doing something really unique on the land versus just more single family housing. The family’s decades long goal was to create a real community center for Orange Township simliar to historic Uptown Westerville, Old Worthington, Grandview, etc.  The project will be named Orange township Town Center.

There will be small local retail, cafes, small restaurants, bakeries and a YMCA, but no big box stores or large anything. Also planned is a new elementary school to be part of the Olentangy School District.

http://www.thisweeknews.com/content/stories/olentangy/news/2016/01/19/development-idea-sprouts-at-evans-farm.html

http://delgazette.com/news/12650/orange-twp-oks-evans-farm-at-trustees-meeting

This is probably still a little early for NNN, triple net retail lease up, but if you’re interested, give me a call, Scott Harris Realtor 614-905-6614

Northgate Retail Rezoning for 250 Acres in Sunbury Approved

Retail Rezoning

On Wednesday, April 6th, the Sunbury Village Council unanimously approved rezoning for 250 acres as part of the 1000 acre retail, residential, office mixed use development Northgate Centre from agricultural to commercial.

The rezoning decision was passed as an emergency. Many residents expressed concern at the measure passing as an emergency, but village attorney, David Brehm said that removing the emergency clause was not an option.

Reason being that Ohio DOT had no plans for modifying or improving the existing interchange at I-71 and US Route 36 / 37, leaving a new interchange just south of the existing interchange as the only option. Ohio DOT had long planned an additional interchange somewhere from Big Walnut Road up to just south of the Route 36 interchange.

The village attorney said passing the ordinance as an emergency measure would help facilitate the process of approving the new interchange and without the development there wouldn’t be the funding to build the interchange and without the interchange there wouldn’t be the development.

The site now rezoned will become part of the giant 1,000 acre Northgate Centre mixed use development to include triple net retail, net lease restaurants, car dealerships, office, warehouse and and athletic fields and faculty.

The Northgate web site states that the development will encompass.

  • 1,036 acres of a mixed use commercial site.
  • 1,500,000 to 3,000,000 sq ft of retail and office use. 300 acres of warehouse/distribution development providing up to 10 million sq ft of warehouse distribution space.
  • 6-8 hotels with approximately 600-1000 rooms.
  • Total payroll of retail, office, and hotel use: $76 million.
  • Sales tax revenue of over $58 million per year.
  • Destination Auto Mall with 4 to 6 new car dealerships.
  • 60 acres outlet/lifestyle center, 400,000 sq ft, with over 5 million visitors per year, creating an excess of $250 million in Sales yearly.
  • COTA and DATA Drop off sites to provide bus transportation within Franklin and Delaware County.

Preliminary lease up will happen far ahead of anything ready for occupancy so if you’re interested in any of this Delaware County Ohio / Sunbury NNN, triple net retail space, feel free to contact me, Scott Harris Realtor at 614-905-6614

Hamilton Rd and 161 – Hamilton Quarter

After 10+ years of round and round with the Army Corps of Engineers regarding wetlands then the 2008 crash, Hamilton Quarter will be the name.

In far northeast Columbus and just east of New Albany on 320 acres of farmland will be Hamilton Quarter with 700,000 square feet of office, one million square feet of nnn, triple net retail, 800 multifamily residences and 130 senior residences. The project is a collaboration of Casto, The Daimler Group and The New Albany Company.

The project includes the long planned rerouting of Hamilton Road. From looking at the site map on the Casto site, I’m not sure what is happening with Dublin Granville Road whether it’s being routed around the project or right through it. As can be seen on the site map, the Columbus infatuation with roundabouts continues.

With most of the residential on development on the north side of 161, I’m not sure how they call this project ‘walkable’ and with most all of the big box retailers already on Hamilton Road just south of this project, and Easton not far away, what they going to do with one million square feet of retail.

The Hamilton Road reroute should be complete by early 2017 and ground breaking late this year. Preliminary lease up will begin soon so If you have interest in retail property for sale or lease in Columbus Ohio please feel free to contact me, Scott Harris, your NNN real estate agent, 614-905-6614

Columbus Short North’s Bollinger Tower Sold For Redevelopment

The Columbus Metropolitan Housing Authority just sold the Short North 11 story Bollinger Tower to Schiff Capital group for redevelopment into what’s likely to be hotel. Bollinger sold for $14 million. The building currently houses 100 residents in 100 units.

The hotel was constructed in 1984 for low income senior housing and is in otherwise in too decent a condition to tear down. Plus, if they did the NIMBYs would likely prevent them from building something this tall again. I think they’re far ahead to redevelop what’s already there.

The City of Columbus wanted to divest itself of high maintenance real estate and invest directly in the tenants by providing housing vouchers so the tenants can live where they choose. Given that the building housed low income elderly, I’m concerned about major disruption to lives where they might not be able to fend for themselves.

Columbus Underground reported that “Selling Bollinger Tower fulfills our long-term strategy to expand CMHA’s capacity to assist more residents,” stated CMHA president and CEO Charles Hillman. “This transaction furthers our plan to divest ourselves of high-maintenance real estate in order to invest directly in people’s lives. Residents will receive portable housing vouchers enabling them to live in apartments of their choice in neighborhoods of their choice.”

And “I certainly understand how the perception of gentrification is a concern,” said CMHA COO Bryan Brown. “Do we have an obligation to provide low-income housing in a high-cost neighborhood? Sure. But we also want to expand our mission and help serve three times as many residents as we currently do at Bollinger. And if you think about the need for more hotel capacity, which provides economic development for our city, converting Bollinger to a hotel is a big plus for the city as a whole. On balance, it’s a big win and I hope people see it that way.”

There’s no decision yet regarding ground floor net lease retail or restaurant space, Frankly, that’s what Columbus commercial real estate agents want to learn about, including me. If you’re interested in retail or restaurant space, I’ll do my best to get answers. Contact me, Scott Harris, Realtor, 614-905-6614

Searching For a Single Tenant, Triple Net Retail, Credit Tenant 1031 Upleg?

There is a real bumper crop of new opportunities on the market right now for net leased retail 1031 uplegs. These are all new opportunities that have come on market in the last week.

It’s not unusual to see many triple net retail single tenant properties come on the market at this time of the year, but this year it’s unusually strong. Plus, it’s very high quality net lease properties as we’re talking Walmart, Walgreens, CVS, all credit tenants, S&P BBB or above.

Are you in your 45 day identification period? Have you closed your down leg yet?  If you have a 1031 downleg about to close and you need a replacement property, now is a great time.

If you have any questions, you can reach me, Scott Harris, at 310-473-4789 or 614-905-6614

Los Angeles Convention Center to Get Redesign of the Redesign.

Los Angeles retail restaurant for leaseThe current Los Angeles Convention Center. although not that old compared to many in the country, is badly out of date. The convention business is big money and very competitive.

Plans to update the current convention center never seemed to work out in the past. The latest was an plan for LA Live developer, AEG, to do a massive remodel and expansion as part of the NFL stadium that was to built nearby.  When that failed, Los Angeles decided to hold a design competition to do it themselves.  They selected a design team headed by HMC Architects and Populous.  LA also approved a $470 Million bond funding plan.

Now they’re considering shelving that plan and going much bigger through a public / private partnership. The City of Los Angeles will hand over the project to a well qualified private developer to finish it off.

This will breed more Los Angeles downtown net lease retail and restaurant development. That’s where we Los Angeles commercial real estate agents and brokers come in.  It also means even more hotels and high rise multi unit development as if LA doesn’t have plenty of that in the pipeline already.

Los Angeles has turned into one great development after another. This is exciting stuff.

Downtown Los Angeles South Park Car Wash to be 60 Story Mixed Use Tower

Los Angeles commercial real estate agentsWe’ve been hearing rumors for a very long time, and now that plans have been filed with the City of Los Angeles, we’re seeing the first illustrations of the planned 60 story mixed use monster. It’s to be built on the old car wash site across from LA Live and will include hotel, residential condos, office, retail and restaurants.

Although the building looks so thin that a good wind could blow it over, it will house 374 residential units, 373 hotel rooms, 33,000 square feet of office space and more than 65,000 square feet of downtown Los Angeles retail and restaurant space. Once again, making Los Angeles commercial real estate agents very happy to have new inventory available.

Car wash owner, Robert Bush, sold for $25 million in 2014 to developer Ben Neman who was the buyer and is the developer. Car wash owner paid $515,000 for the site back in the 80s.

Plans were just filed with the City of Los Angeles by architectural firm Nardi Associates.  Illustrations show how this is going to look.  Nardi describes it as a giant urban tree with its diagonal grid like design complete with open air atrium, LED signs and live plantings.

Preliminary lease up will begin as soon as they get final approval so if you’re interested in the retail or restaurant space, feel free to give me a call, Scott Harris Realtor, 310-473-4789.

http://urbanize.la/post/first-look-60-story-dtla-car-wash-killer

Columbus Multiunit Residential Market Ranked 10th Nationally

columbus commercial realtorA  report by All Property Management http://www.allpropertymanagement.com/ , who is the largest group of property management companies in the United States,  ranked Columbus and Central Ohio as the best market for landlords in the Midwest, and the 10th best in the country.

Columbus commercial real estate agents, me included, couldn’t be happier at the new level of activity and the net leased retail opportunities we’ll see in the future.  The development in downtown is all mixed use so that means ground floor triple net retail.

Columbus area developers have added thousands of units over the last few years, which is driving much additional mixed use, triple net retail and restaurant space for lease in the Columbus area.  We sure need it.

In spite of the new apartment supply coming online,  there’s still a drop in Columbus vacancy rates into the range of 5.5%.  Plus the Columbus multiunit market has seen a 25% rise in rents over the last four years and a 9.9% rise in the last year.   It can’t get much better than this.

From personal experience, however, my advice to an investor, especially an out of town buyer would be to stick to class A and good class B units and complexes.  Tenants here in class C buildings can be a major nightmare. If you buy class C you need to be local.

If you’re interested in becoming an owner, contact your favorite Columbus commercial Realtor or commercial real estate agent.  I’m happy to help.  Contact me, Scott Harris, Realtor at 614-905-6614

1031 Buyer Requirement – Triple Net Retail or Absolute Net Retail, National Credit, Single Tenant – $1.3 to $2.6 Million

California exchanger in day 4 of 45 day identification period looking for triple net retail properties for sale or absolute net retail investment.  $1.3 mil needs to be replaced to $2.6 mil under the 200% 1031 rule.

Must be credit tenant, preferably single tenant, NNN, triple net leased retail with at least seven years unexpired left on net lease.   Corporate net leased retail properties for sale such as single tenant 7 Eleven, Circle K, Get Go, Turkey Hill, KFC, Chipotle, Panera Bread, Taco Bell, Walgreen, CVS, Tractor Supply, Auto Zone, NAPA, Advanced Auto, etc. is fine.  Fast food and fast casual fine if corporate lease.

Again, relinquished property closed four days ago the clock is running and will have 41 days left in the 1031 45 day identification period.

California, Los Angeles or Santa Monica commercial real estate agent  / broker /principal with property  that meets above requirement call me, Scott Harris at 310-473-4789, 614-905-6614 or better yet, email to scottharrisrealtor@gmail.com.

Retail Lease Basics

I get questions from both proprietors starting a new concept and looking for a new space to lease and investment buyers looking for net leased retail properties to purchase so I thought it would be a good time to review the basic lease types. I’m certain that most Columbus commercial real estate agents get the same exact questions

The corporate backed, investment grade, single tenant, triple net retail lease has been one of the hottest segments of the market over the last four or five years. So hot in fact that cap rates have plummeted to record lows in just about every market in the country.   Los Angeles commercial real estate agents, buyers and tenants have seen cap rate plummet to sub 4%.   Columbus commercial real estate agents in what little we have to sell here that’s newer, single tenant, net leased, credit tenant are seeing asking caps in low to mid 5% range.

First, what does investment grade or national credit really mean when coupled with single tenant, triple net ? The commercial real estate flavor du jour is a retail, single tenant, single parcel with national credit – meaning S&P BBB or the Moody’s equivalent, Baa3 or higher, long, triple net (NNN) lease. What they are really asking for is an absolute net or bond lease where there are no landlord day to day responsibilities.

But what do these acronyms really mean – NN, double net, NNN, triple net, bond lease, absolute net, modified gross and etc.? Regardless of what the seller or listing agent labels the lease, it is imperative to read the lease thoroughly at the earliest opportunity and have a real estate attorney licensed in the state where the property is located, review the lease. Remember, the devil’s in the details. Also keep in mind that the perfect lease doesn’t exist.

Back to the flavor du jour that I mentioned in the third paragraph – approach the analysis of a triple net leased investment with the idea that the buyer is purchasing the lease rather than the building and land.

Because definition of triple net leases differs, be sure you understand what’s in and what’s not in the lease. Get your hands on the lease as early in the process as possible to save time and money later. If you can get it prior to making the offer or in the offer counter offer stage, that’s even better. Best to find that one paragraph that knocks the property out of contention before you start spending money on due diligence such as inspections, surveys and appraisals.

A net lease generally refers to an arrangement where the tenant pays all or almost all of the property’s operating costs in addition to rent. There are a number of gradations of a net lease so I’ll cover the broad categories from strongest to weakest.

Bond or Absolute Net Lease. The tenant is responsible for everything – all operating expenses, maintenance, repairs and replacements for the building and site without limitation without limitation.

Triple Net (NNN) Lease. These leases follow the above except that capital expenditures, especially toward the end of the lease, are the landlord’s responsibility. You commonly will see leases that are labeled triple net are in fact double net in that the landlord is responsible for roof and structure. As I’ve said above a few times, read the lease and have a real estate attorney licensed in the state where the property is located review the lease.

Double Net (NN) Lease. Follows the above except that landlord is responsible for structural components of the building such as roof and load bearing walls, but also could include parking lot, plumbing and electrical.

Modified Gross Lease. The tenant pays its own utilities, interior maintenance, janitorial, small repairs and insurance and the landlord pays everything else.

Columbus Construction Update for August 2015

There’s an amazing amount of commercial and residential construction activity in the Columbus Metro this summer so I thought I would take you over to Walker Evans’ Columbus Underground for an update.

Covered are the new Nationwide Children’s Hospital building at Parsons and Livingston, which is driving the development in Olde Town East.   I have a number of retailers and services looking at setting up shop in Olde Town East.  Look for major gentrification and revitalization of this area in the next ten years.

The Nationwide Insurance complex at Grandview Yard  will be ready for occupancy by the end of 2015.  Expect new net leased retail and restaurants all around the Nationwide buildings.   Get in line early if you want to be part of this.  Contact me, Scott Harris Realtor at 614-905-6614 for information regarding leasing.

Next largest project is the 11 new buildings for student housing at Ohio State University’s north campus.  Again, as with the above two, expect plenty of retail plus fast food and fast casual restaurants to serve the new demand.

View on Fifth still has a couple of street level opportunities left.  One is 1645 square feet and that should meet the needs of many small retailers looking for space in Grandview Heights.

As far as land area is concerned, the largest project is the Scioto Riverfront restoration, well underway for the entire length of the river through downtown.

Lastly, Walker Evans has provided updates on the many new and reutilization residential projects in and around downtown Columbus, from Jeffrey Park, Grant Park, Bishop Walk, View on Fifth, Harrison Park and many others.

Stunning progress for downtown Columbus.

http://www.columbusunderground.com/construction-in-columbus-august-2015

 

Columbus City Council votes 7 – 0 for Hamilton Road 161 Project, Hamilton Crossing

Finally, after a decade of the fights with the Army Corps of Engineers over wetlands and then the real estate downturn, something is finally going to happen with this big empty field I drive by every day.

Monday night, Columbus City Council approved by a vote of 7 – 0 the 330 acre, $250 million project that’s a joint venture with Casto, Daimler, and New Albany Company. Casto’s website still refers to it as Albany Park.

As these type of project always go, it’ll be mixed use with a bunch of everything other than industrial. Included will be 1 million square feet of net leased retail, 800 multifamily units, 125 senior units, and eventually, 700,000 square feet of office space for lease.

A bunch of work remains to be engineered and underway before any building take place. First, is the realignment of Hamilton Road south of Dublin Granville Road into the six lane spur of Hamilton Road south of 161.

Expect to see much progress in 2016.

To my many Columbus restaurant clients, expect this project, as with everything else the last couple of years, to lease up quickly so if this is of interest, give me a call , Scott Harris Realtor at 614-905-6614.

Sawmill Parkway to be Extended to Route 42 in Delaware County

net leased retail in Delaware County OhioThis has been a long time coming.  Finally, construction is going to get started on the Sawmill Road extension in the next couple of weeks with completion expected in October 2016.

Today, Monday, Delaware County Commissioners approved the $30.4 million contract to extend Sawmill Parkway by almost five miles from Hyatts Road to Route 42 in the City of Delaware.   Trucco Construction of Delaware County was the winning bidder.

The extension was originally planned to go all the way to Section Line Road, but it isn’t included in this contract.  I don’t know if that’s still planned for the near future.

Upon completion, this will open up another 1,600 acres to net leased retail, restaurant, single family residential, industrial and office development.   I haven’t read yet regarding how much multifamily will be planned, But I imagine that will be a component of the development.

Uptown Westerville – Pasquale’s Closing, Asterisk opening

Uptown Westerville is becoming the north, Short North. What a transformation over the last few years from antiques to polished casual restaurants and bars. First it was Old Bag of Nails then Jimmy Vs to Koble (in a building I sold). Then the 8 State Bistro takes the place of the old State Street Theater and now the new bar and supper club, Asterisk, in Pasquale’s old place. Then one of these days a Northstar Cafe.  That’s change!

Otterbein students will rejoice as now there’s more to do in the late evening than stand in line at Schneider’s Bakery an hour before they open at 1:30 am.

It’s sort of funny looking at the Uptown Review Board application (at the link) and seeing the historical photo with Mary Poppins on the State Street Theater marquee. That’s where I saw Mary Poppins 40+ years ago.

This new polished casual restaurant, bar and nightclub at 14 N State is the concept of Megan Ada who is also the franchise owner of the Sunny Street Cafe up a little further north.

Jim Francisco owner of Pasquale’s is opening a new restaurant in Dublin this weekend and toying with the idea of opening a new Westerville location at County Line Road and Sunbury in Windsor Center where the Big Bear used to be. Good luck with that, Jim.

http://www.westerville.org/home/showdocument?id=19119

The Morse Road Northland Village to Get New Kroger

The once hot Northland area in the 60s and 70s fell into decay and vacancy after Lazarus closed their Northland store a decade or so ago.   There’s been a major attempt to revitalize the Morse Road net lease retail area over the last several years with some success.   Biggest success is the new Menards store at 1805 Morse Road.  Still though, most of the net leased retail is discounters and low end retailers.

Kroger purchased a 13 acres Northland Village for $3.55 mil back in 2014 for eventually replacement of the old Kroger store at 1630 Morse Road.

Developer Mo Dioun, President and founder of Stonehenge Company wants to arraign a community meeting for input from area residents and businesses through the Northland Community Council and Northland Area Business Association.  Dioun is the developer of the old Northland site.

According to Emmanuel Remy, NCC president, Kroger will be building one of their largest foot print stores at the site with the store being similar to the one in the brewery district.

In summary, good news that the City of Columbus and area businesses are determined not to let the Northland area decay to the point that Brice Road did.  However, we still need some new quality restaurateurs with at least some polished casual restaurants.

The Short North White Castle Project Gets an Update

Columbus Short North retail and officeAs was just reported by Walker Evens of Columbus Underground, and just about everyone else, Borror Properties revealed its latest design update for the 11 story proposed replacement for the old pre WWII White Castle located at second and HN High Street.

After feedback from the Victorian Village Commission in April, Borror made some very visible design changes and some not so visible.

The commissioners asked Borror to break up the facade so it would look like several buildings instead one huge facade facing High Street.

The changes were to setback the building a bit more from the sidewalk and to tier the north end of the building so it blends better with the three story existing buildings to the north. Then, in my opinion, the building was modernized substantially to provide a nice contrast between all of the surrounding historic buildings and this one.

Then, not as visible, going from 11 stories with 150 apartments and 10,000 square feet of badly needed net leased Columbus retail and restaurant space plus the obligatory White Castle on the corner to 140 units with third floor office for a combined total of 24,000 square feet of office .  Still though, with the White Castle on the corner.

If you compare what I have pictured, rendering by Berradi+Partners, versus last month, you’ll see that the design was changed substantially, and in my opinion, now looks much better.

We certainly need more net leased restaurant and retail space in the Short North, but also need some new office space as the supply has gotten really tight.  This helps plus looks a bit better than the old White Castle.

Anyone for 11 story sliders?

Another huge project for Los Angeles’ South Park

shenzhen%201This is just amazing. Another mega project for LA’s south Park with a newly announced multi tower project with high rises up to 42 stories to be located at Olympic and Figueroa all the way to Eleventh and Flower.

China’s developer, Shenzhen Hazens Real Estate Groupis currently in the ntotlement process on the Gensler designed project, which they estimate will take a year to 18 months.

The first phase of the project will be the 30 story, 250 room hotel, plus another 30 story condo building. They anticipate that construction should begin in 2017.

The second phase will start immediately after with a 42 story condo tower plus an 80,000 square foot shopping plaza complete with Los Angeles net leased high end retail boutique shops.

Total cost of the project is expected to be in the range of $700mil.

Although it’s probably a little early to inquire about leasing some of the retail space, feel free to contact me, Scott Harris Realtor at 310-473-4789 with any questions.

 

 

 

 

Delaware County’s Tanger Outlet Mall Approved

Delaware County commissioners have approved the $17.6 mil worth of roads that well soon serve the route 36/37 net leased retail 350,000 square feet Tanger Outlet Malls.

Preliminary site work has already begun, but a date for the official ground breaking hasn’t been announced yet, but it expected to be very soon.

The project includes widening Wilson Road and extending down to the development site plus creating a new road to access AD Farrow. Additionally, widening the I-71 northbound off ramp to two lanes from one is included. Work can’t begin on t he retail mall until these roadway improvements are completed according to ODOT.

Berkshire Township previously approved a tax increment financing district that will levy a charge of .50 to 1% on all retail sales to repave the developer for its work on the road improvements.

If you have any questions or interest in a net leased retail space in the development, please call me, Scott Harris at 614-905-6614.

Los Angeles’ South Park New Developments in Progress

In my 30 years in LA, never did I think I would see something like the following happening.

South Park, roughly defined as southwest of the Arts District, south of downtown Los Angeles, east of the 110 and north of the 10, has 28 new developments in progress.

Historically, what is now known as South Park got its start after the opening of Staples Arena 15 years ago at Figueroa and Eleventh, but most of the this got started less than five years ago.

This is remarkable in what used to be parking lots and run down 80 year old warehouses.  Take a look at the following link:

http://la.curbed.com/archives/2015/04/south_park_development_map.php

And remember, any questions regarding leasing some of that ground floor retail space, please call, Scott Harris Realtor at 310-473-4789.

 

Clintonville – North Broadway and High Street Development

Northstar Realty and Mark Ford of Ford and Associates AIA presented a preview of preliminary plans they will eventually take to the Clintonville Area Commission for approval.  The meeting was hosted by Positively Clintonville https://www.facebook.com/pages/Positively-Clintonville/1401958676717564 to allow the developer to get feedback from the community before the plans were submitted for approval from the city.

The proposal shown at the meeting last night is for a five story building with 18,000 square feet of ground floor retail space with 60 apartments above. Additionally, a total of 160 parking spaces with 57 on a ground level lot and 103 in a second floor garage, all accessed from the alley.

Northstar Realty purchased seven of the eight parcels between North Broadway and Brighton Road. The owner of the old Clintonville Electric refused to sell at any price.

Given that I have the listing a few blocks north at 3645 N. High Street, I’m very interested in this project as I could fill ten buildings just like it with net lease retail tenants.

Any questions or interest in retail or office space in the community, feel free to contact me, Scott Harris at 614-905-6614