Deed, mortgage recorded for Hanania on Southbank

Posted on 9/17/2021 by Karen Brune Mathis at Jacksonville Daily Record

Through Hanania Riverplace LLC, Hanania paid $20.67 million for the 10-story office building and six-level garage at 1200 Riverplace Blvd.

Bank of America financed the deal through an almost  $14.47 million mortgage and security agreement.

The deed was executed Aug. 26 and the mortgage was made Aug. 31.

Hanania bought the property from LCP 1200 Riverplace LLC., which is Lingerfelt CommonWealth Partners of Virginia.

The building has 200,627 square feet of rentable space, with 120,000 square feet available for lease.

Fashion retailer Stein Mart Inc. vacated it last year after filing bankruptcy.

Hanania, owner and CEO of Jacksonville-based Hanania Automotive Group, intends to move his headquarters into about 10,000 square feet of space, continue to lease to existing tenants and recruit more companies.

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Renovation at Two22 tower in Minneapolis (formerly Campbell Mithun tower) is done

Posted on 9/16/2021 by Dylan Thomas at Minneapolis/St. Paul Business Journal

Lingerfelt CommonWealth Partners is ready to show off its $20 million renovation of Two22, the 42-story Minneapolis office building formerly known as Campbell Mithun Tower.

Built in 1985 and the fifth-tallest building downtown, Two22 underwent a roughly year-long renovation that updated the building’s elevator system, improved tenant security and modernized the tower’s atrium and tenant common areas. Tenants now have access to a new rooftop deck and shared flex-work areas designed to accommodate those may be sharing space in the downsized, post-pandemic office.

The ad agency Campbell Mithun (now McCann Minneapolis) left the building in 2014, though the name stuck with the tower for years afterward.
“When people left their offices in March of 2020, they left the old Campbell Mithun Tower, and when they return, they’re going to be greeted by a modern, 21st century office building,” said Katie Tufford, a senior director in the Minneapolis office of Cushman & Wakefield, which is handling leasing for the building.

Tufford said Lingerfelt, a Glen Allen, Virginia-based real estate investment firm, began the renovation about nine months after acquiring the skyway-connected tower in July 2019 for $81 million. Work was largely completed by the first quarter of this year, she said.

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Commonwealth Commercial Completed Three Transactions this Week

Richmond, VA – September 17, 2021 – Commonwealth Commercial Partners, LLC is pleased to report this week’s completed transactions.

  • Honey Car, Inc. leased 19,400 SF at 190 Commonwealth Court in Winchester.  Ryan Fanelli represented the Tenant.
  • Brianna Earl dba The Self Love Co. leased 1,552 SF at 1321 ½ East Main Street in the City of Richmond.  Eric Hammond represented the Landlord.
  • 16 S. 2nd Street LLC purchased a 6,296 SF office building at 16 S. 2nd Street in the City of Richmond from EHK Associates for $560,000.  Thomas Lynde and Eric Hammond represented the Seller.

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, VA, with offices in Hampton Roads VA, Nashville TN, Jacksonville FL, Tampa FL, Charlotte NC, Raleigh/Durham NC, Greenville SC, Columbus OH, Kansas City MO, Minneapolis MN and Houston TX. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services.

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COMMONWEALTH COMMERCIAL EXECUTES SALE OF HOPE FARM TRACT IN HANOVER COUNTY

Hanover, Virginia – Commonwealth Commercial, a leading commercial real estate firm headquartered in Richmond, represented the Fearnow family in selling the last piece of their Hope Farm property in Hanover County. The 16+ acres will become a multi-family community by Eagle Construction called Brunswick at Hope Farms, a nod to the popular canned stew created by Hanover County entrepreneur and businesswoman Lillie Fearnow.

Ryan Fanelli and Sam Worley, both Senior Vice Presidents and Partners at Commonwealth Commercial, served as brokers for the transaction, which closed on August 24, 2021 for a sale price of $1.4 million.

Located on a large section of Shady Grove Road in Hanover County, Brunswick at Hope Farms will consist of 49 age-restricted townhomes in an L-shaped community with a pond in the middle. 

“It was a privilege to collaborate with the Fearnow family on the remaining tract of their beloved Hope Farm,” said Ryan Fanelli. “The property’s name has achieved an iconic status and is still featured prominently on the bright yellow label of their ‘Delicious Brunswick Stew’. It’s nice to know that the new development’s name will carry on the legacy of Hope Farm.” 

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, Va., with offices in Hampton Roads, Va.; Nashville, Tenn.; Jacksonville, Fla.; Tampa, Fla.; Charlotte, N.C.; Raleigh/Durham, N.C.; Greenville, S.C.; Houston, Texas; Kansas City, Mo.; St. Louis, Mo.; Columbus, Ohio; and Minneapolis, Minn., and is active in Connecticut and Illinois. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services. To learn more, visit www.commonwealthcommercial.com

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CCP has been retained as the Property Manager for Palms Plaza in Tampa, Florida

Tampa, Florida – Commonwealth Commercial Partners (CCP) has been retained as the property manager for Palms Plaza in Tampa, Florida. This 33,500-square-foot retail center is prominently located in the heart of Tampa’s Palma Ceia neighborhood. The center is fully leased to local and national tenants.

CCP was first tapped to manage the property in early 2018 when Clover Investments acquired it and repositioned the property by completing property renovations including building façade modernization and site improvements. The sale of the property was completed on August 31st and CCP will continue to manage the property.

 

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, Va., with offices in Hampton Roads, Va.; Nashville, Tenn.; Jacksonville, Fla.; Tampa, Fla.; Charlotte, N.C.; Raleigh/Durham, N.C.; Greenville, S.C.; Houston, Texas; Kansas City, Mo.; St. Louis, Mo.; Columbus, Ohio; and Minneapolis, Minn., and is active in Connecticut and Illinois. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services. To learn more, visit www.commonwealthcommercial.com

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Commonwealth Commercial Completed Six Transactions this Week

Richmond, VA – September 10, 2021 – Commonwealth Commercial Partners, LLC is pleased to report this week’s completed transactions.

  • Chesapeake Climate Action Network, Inc. leased 800 SF at 1208-1212 East Cary Street in the City of Richmond.  Eliza Izard and Eric Hammond represented the Landlord.
  • Wandering Not Lost, LLC leased 1,574 SF at 16 S. 2nd Street in the City of Richmond.  Thomas Lynde and Eric Hammond represented the Tenant.
  • Atlantic Constructors, Inc. leased 30,000 SF at 1306 Richmond Highway in the City of Richmond.  David Williams represented the Tenant.
  • JD Quality Pouches, LLC leased 3,500 SF at 2050 Val Park Drive in Goochland County.  Ben Bruni and Michael Good represented the Landlord and Tucker “Nash” Warren represented the Tenant.
  • Jeanne-Marie Boucher leased 1,665 SF at 3122 W. Cary Street in the City of Richmond.  Jim McVey represented the Landlord.
  • Real Estate Pursuits, LLC purchased 83,025 SF at 14000 Justice Road in Chesterfield County from Railey Hill Associates, LLC for $14,150,000.  Tucker Dowdy and Russell Wyatt represented the Seller.

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, VA, with offices in Hampton Roads VA, Nashville TN, Jacksonville FL, Tampa FL, Charlotte NC, Raleigh/Durham NC, Greenville SC, Columbus OH, Kansas City MO, Minneapolis MN and Houston TX. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services.

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Commonwealth Commercial Manages Massive Land Sale to DHL

Richmond, Va. – Commonwealth Commercial Partners (CCP), an industry leader in commercial real estate, recently played an instrumental role in boosting economic development and creating job opportunities in Stafford County, Va. The company negotiated and executed the sale of 55 acres from R Income Properties, LLC to DHL Logistics for $4,055,000 in Stafford County’s Venture Business Park.

DHL has announced plans to build a 500,000 square foot high-bay distribution facility with highly mechanized equipment for material building to serve the Mid-Atlantic region. The initiative is expected to create close to 600 jobs requiring managerial and high-tech skills that will generate $1 million per year in tax revenue.

“This was a very complex commercial real estate transaction involving multiple partners, including state and government entities, in Virginia and Maryland,” said Craig Pelouze, Senior Vice President at Commonwealth Commercial. “It’s a deal that is destined to transform the area’s economy and attract a large tax base to Stafford County.”

He noted that Matan Properties, an industrial developer in Frederick, Md., is also under contract with CCP to purchase the remaining 31 acres in Venture Business Park to develop several hundred thousand square feet of office warehouse, resulting in total land sales of almost $9.5 million.

Pelouze and Sam Worley, another Senior Vice President at CCP, represented R Income Properties, which had owned the land for over 20 years. These talented team members have many years of experience representing buyers and sellers of rural land and investment properties.

For more information about Commonwealth Commercial Partners, LLC, which is proudly celebrating its 25th anniversary in 2021, visit commonwealthcommercial.com.

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, Va., with offices in Hampton Roads, Va.; Nashville, Tenn.; Jacksonville, Fla.; Tampa, Fla.; Charlotte, N.C.; Raleigh/Durham, N.C.; Greenville, S.C.; Houston, Texas; Kansas City, Mo.; St. Louis, Mo.; Columbus, Ohio; and Minneapolis, Minn., and is active in Connecticut and Illinois. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services. To learn more, visit www.commonwealthcommercial.com

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Commonwealth Commercial Completed Twelve Transactions this Week

Richmond, VA – September 3, 2021 – Commonwealth Commercial Partners, LLC is pleased to report this week’s completed transactions.

  • Schewel Furniture Company, Inc. leased 27,000 SF at 81 Orchard Hill Circle in Augusta County.  Carl Blackwell represented the Tenant.
  • Blanchard Strategy, LLC leased 528 SF at 4915 Radford Avenue in Henrico County.  Tucker “Nash” Warren and Eliza Izard represented the Landlord.
  • D&S Motorsports leased 3,600 SF at 6290 Old Warwick Road in the City of Richmond.  Colton Konvicka and Ryan Fanelli represented the Landlord.
  • Virginia Electronics, Inc. leased 4,500 SF at 10975 Richardson Road in Hanover County.  Ben Bruni and Russell Wyatt represented the Landlord.
  • D&L Parts Company leased 6,250 SF at 5805 School Avenue in Henrico County.  Ben Bruni represented the Landlord.
  • Atlanta Dental Supply leased 600 SF at 10180 Lakeridge Parkway in Hanover County.  Ben Bruni represented the Tenant.
  • Reveler Immersive Experiences LLC leased 6,150 SF at 3108 W. Cary St. in the City of Richmond.  Jim McVey, Michael Morris, and Thomas Lynde represented the Landlord.
  • Purser Holdings, LLC purchased 9,400 SF on 2.02 acres located at 5601 Biggs Road in the City of Richmond from N&M Development, LLC for $892,500.  Colton Konvicka and Tucker Dowdy represented the Purchaser.
  • Hui Lin & Chong Hui Chen leased 2,700 SF at Madison Heights Shopping Center at 161 Madison Heights Avenue in Amherst County.  Morgan Trible represented the Landlord.
  • Old Dominion University-leased 2,015 SF at 919 E. Main Street in the City of Richmond.  Jamie Galanti, Russell Wyatt, and Eliza Izard represented the Landlord.
  • CrossCountry Mortgage, LLC leased 3,500 SF at 14405 Justice Road in Chesterfield County.  Eliza Izard and Jamie Galanti represented the Tenant and Eric Hammond and Ben Bruni represented the Landlord.
  • Amazing Dental, LLC leased 803 SF at 5700 Old Richmond Avenue in Henrico County.  Tucker Dowdy and Michael Good represented the Landlord.

About Commonwealth Commercial Partners, LLC

Founded in 1996, Commonwealth Commercial is a leading full-service commercial real estate firm headquartered in Richmond, VA, with offices in Hampton Roads VA, Nashville TN, Jacksonville FL, Tampa FL, Charlotte NC, Raleigh/Durham NC, Greenville SC, Columbus OH, Kansas City MO, Minneapolis MN and Houston TX. The company provides demonstrated expertise in the areas of leasing, purchasing, selling, developing, consulting, property management and asset management services.

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Hanania completes purchase of Southbank office high-rise

Posted on 9/1/2021 by Karen Brune Mathis at Jacksonville Daily Record

Jacksonville-based Hanania Automotive Group owner and CEO Jack Hanania said Aug. 31 he completed the purchase of the former Stein Mart building on the Downtown Southbank for $20.6 million.

“We’re ready to go to work,” Hanania said.

Hanania said his team looks forward to relocating and becoming a part of Downtown. He intends to move his corporate headquarters there in the early part of 2022 and name it the Hanania Building.

“I’m confident it’s good for the brand,” he said.

“During the past five weeks we’ve had nothing but great feedback and support.”

Hanania said July 25 he had a contract on 1200 Riverplace Blvd. property.

Hanania grew up in Lakewood and lives in San Marco, both neighborhoods near the Southbank.

“I have a lot of passion for our Downtown and our community,” he said in July.

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Leveraging Property Management to Add Value to Assets

August 31, 2021

Leveraging Property Management to Add Value to Assets

For most owners of commercial real estate, property management is a necessary evil that presents strictly as a cost – unavoidable and ongoing. They know that deferring property inspections, repairs, and maintenance, rent negotiations, vendor contract reviews, budget planning, financial reporting, or other critical tasks of management will only drive up expenses. Support from conventional property management firms often comes up short, with formulaic budgeting that automatically escalates cost and unresponsive teams that ultimately contract work to unfamiliar third parties.

Commonwealth Commercial Partners (CCP) utilizes proven methodologies to increase the net operating incomes of assets under management, allowing clients to leverage necessary expenses to add real value. Employing the following five tactics, CCP carefully controls costs and delivers high-quality services that retain and attract tenants, all with the goal of adding value to clients’ assets that exceeds management fees.

1. Position property management as a primary focus of business
2. Customize budgets with an eye toward saving money and achieving property-specific goals
3. Maintain smaller portfolios to increase response times and build relationships
4. Prioritize people at every level of service
5. Establish strong tenant relations to maximize occupancy, income, and disposition value

Management as a Core Business

CCP is, at its core, a management company. Property management was the driver when CCP was founded in 1996 and continues to anchor the company, even as it has grown into a vertically integrated, one-stop shop for every aspect of the commercial real estate industry.

While other firms approach property management as an unavoidable obligation, at CCP, this core service is not just a requisite addendum to leasing and sales. Operating in 13 cities with more than 15,000,000 square feet under management, CCP proactively drives net operating incomes by controlling expenses and maximizing occupancy.

TACTIC IN ACTION: Riverplace Tower, Jacksonville FL

For more than 20 years, this 430,000-square-foot, iconic high-rise office building in downtown Jacksonville was owned and operated by a high net worth family for whom property management was not a core business, and complacency had taken over.

Outcomes of CCP management:
• Decreased tax liability by $200,000 or 26% (plus retroactive credit)
• Reduced property insurance costs by $81,000 or 55%
• Reduced operating expenses by 12%, or $530,000
• Occupancy increased by 71,600 square feet or 15% in the first 12 months

Active Budget Management

Thinking like property owners and acting as an extension of each client’s business, CCP customizes annual budgets for every asset. Whether a client intends to hold a property for three, five, or 30 years, CCP managers work with them to determine which projects to tackle and when, creating detailed, goal-centered budgets.

While many firms manage budgets simply by tacking on an annual escalation factor, CCP performs thorough reviews and engages in competitive bidding for services and vendors. Budgeting is always viewed as an opportunity to do things better and save money for ownership.

TACTIC IN ACTION: North Stafford Building, Stafford, VA

Trailing behind budget and forecast, this property needed stabilizing when CCP took over management. Expenses were rising and occupancy turnover was pending. Expenses needed to be reduced without impacting the quality of service provided.

Outcomes of CCP management:
• Reduced operating expenses by 23% compared to competitor’s budget
• Increased net operating income by 23% or $57,793
• Created $500,000 in additional value for the property

Smaller Portfolios

With smaller portfolios than many firms allocate, CCP managers know each property’s tenants; they’re more hands-on; they have time to communicate reliably and to be physically on-site when needed. Competing managers who are spread too thin often take on twice as many properties as CCP managers, who, by contrast, are able to serve tenants in a timely, knowledgeable, personal manner. They walk properties, meet vendors, and get in front of issues with proactive attention that benefits both tenants and owners.

TACTIC IN ACTION: Laburnum Avenue, Richmond, VA

The owner of this property was dissatisfied with the previous management company, as costs were rising while service declined.

Outcomes of CCP management:
• Reduced operating expenses by 35% year over year
• Increased net operating income by $264,000
• Created over $2.5 million in additional value

Prioritizing People 

Every service company’s success is rooted in its people. Since its founding, CCP has focused on hiring those with sound personal skills as well as industry knowledge, investing in people at every level of the company who value long-term relationships with clients and coworkers.

Managers are not only proactive, communicative, and professional, but also trained to think continually about how they can increase the net operating incomes of the assets they manage. That focus and effort result in meaningful, measurable gain over several years of management.

Clients who choose to utilize CCP’s in-house maintenance teams routinely praise the skills and character of the technicians. “These guys are the front line, the first responders,” says CCP Director of Property Management, Hunter Huber. “It’s a unique position because they have to have a mechanical skillset but also be able to communicate well with tenants and be professional. This is an incredible team of people. It’s an amenity for our tenants to have people in-house that can be on-site within 20 minutes for anything that might come up.”

TACTIC IN ACTION: Throughout managed assets in 15 markets…

CCP maintains a treasured file of tenant testimonials, which underscore the value added by exceptional employees.

Outcomes of CCP management:
• A tenant who had locked her keys inside her car, in the ignition, and was having no luck with pricey locksmiths, shared her appreciation for two building technicians, Heiko and Gerald, who came to the rescue. While they worked together to unlock the car, the sky unleashed a torrent of rain, thunder, and lightning. They worked through the downpour and had the car open within 10 minutes. “I am so thankful and grateful for them,” the tenant writes. “They are always around or will come when you need them… They are genuinely nice, dependable, helpful guys. It’s a pleasure to have them around this building, and I hope you can share this with the hierarchy of your company to let them know what kind of men they have working for them. You can’t get any better.”

• A senior administrative assistant writes: “I know you already know this, but Henry is just the best. He and his team are always so responsive when we need them. Even if I code a ticket to low priority, Henry still responds so quickly. He is kind and gracious and an all-around good guy. We are well taken care of over here. I hope he NEVER plans to retire.”

• An office manager writes: “John was here yesterday and he is such a nice person to work with. …He had a solution, and if that doesn’t work he has thoughts for other fixes. He kept his cool with five women giving him directions when up on a ladder. Bottom line, in my many years of working with maintenance guys, John is by far the best I have worked with.”

Strong Tenant Relations

The combined impact of two tactics, prioritizing people and maintaining smaller portfolios, enables property management firms to tackle the fifth tactic for adding value: establishing strong tenant relations. CCP clients have a single point of contact. Daily logs and regular interaction with properties and tenants give managers a familiarity with assets in their portfolios, so they’re well-positioned to generate solutions when changes are needed or issues arise.

When tenants are satisfied with management services, turnover diminishes and renewal probability is greater, creating significant savings for owners. When spaces don’t become vacant, fewer renovations are needed and commissions are lower. Higher occupancies raise operating income, all of which adds real value to an asset on an annualized basis but also when owners are ready to sell.

TACTIC IN ACTION: Nashville Suburban Portfolio

When a CCP client acquired a five-building, 484,047 square-foot, suburban office portfolio, occupancy had dropped to 86% and its physical condition showed signs of deferred maintenance.

Outcomes of CCP management:
• Operating expenses stabilized and service quality increased
• Increased net operating income by 15% over a three-year period
• Occupancy increased to 96%
• Disposition of the portfolio after three years resulted in a higher return on investment than expected

Conclusion

Property management can be far more than a continual expense. Necessary costs can work to add value to assets, both annually and at disposition. CCP’s tactics for elevating management to an income driver include: creating a core business of property management; customizing budgets to control costs and achieve goals; maintaining smaller portfolios; prioritizing people at every level of service; and establishing strong tenant relations to boost occupancy and retention. With managers dedicated not only to problem-solving, but also to increase the net operating income of assets over time, owners see meaningful, measurable value-added.

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