February 26, 2016
McKinley most recently announced two major lease transactions at McKinley Towne Centre which backfill the entire space currently occupied by Google. The leases were completed many months ahead of schedule and well in advance of Google’s move out on April 30th. As quickly as McKinley leased up 85,000 sf of premier office space in Downtown Ann Arbor, it has now closed a very favorable long term refinancing of the property. The long term refinancing, provided by The PrivateBank on very favorable terms, will allow continued investment in the building.
"This was always our plan," offered Kenneth P. Polsinelli, McKinley's Chief Real Estate Officer. "We have worked very hard to attract world class companies like TD Ameritrade and LLamasoft, and these lease transactions now allow us to position this core property for the long term with an extraordinary refinancing provided by our very good friends at The PrivateBank. This financing represents the 25th loan, and over $300 million in total financing, with The PrivateBank over the last several years.”
McKinley Towne Centre is a mixed use development offering 105,000 square feet of Class A, high-tech office space and 20,000 square feet of retail space at the nexus of the University of Michigan and downtown Ann Arbor. LLamasoft will occupy almost 60,000 square feet at McKinley Towne Centre including the entire second and third floors, and TD Ameritrade will occupy almost 25,000 square feet which is the entire fifth floor. Beginning May 1, LLamasoft and TD Ameritrade will join downtown’s growing tech community in the blocks stretching from the University of Michigan’s Diag down East Liberty Street to South Division. Together, companies such as Menlo Innovations, Barracuda Networks and PRIME Research employ hundreds in that area.
"McKinley is one of the premier real estate companies throughout the Midwestern and Southeastern United States and we are very fortunate to have enjoyed such a long-term, successful relationship," offered Steve Anderson, Managing Director, Commercial Real Estate, The PrivateBank. "We are excited to further deepen the relationship with the financing of this trophy asset in Downtown Ann Arbor," Anderson further added.
"This is a very unique asset and we were able to move very quickly once we finalized the leasing effort," said Jim Willett, McKinley's Corporate Treasurer and Vice President of Finance. "We have secured exactly what we needed via this very favorable bank financing and have positioned this asset for the long term," Willett added.
February 17, 2016
McKinley is pleased to announce that it has been appointed Receiver by the Dickinson County Circuit Court for Iron Mountain Plaza, a 171,462 square foot retail shopping center in Iron Mountain, Michigan. This regional power center is home to tenants including Dunham’s, Goodwill, and Tractor Supply Co. This represents the 44th workout in the State of Michigan for the Institutional Commercial Real Estate team.
“Our Institutional Commercial Real Estate team has a proven track record and a keen understanding of our fiduciary to the Court” stated Matthew Mason, Managing Director and Partner. “We are able to quickly stabilize an asset, manage operations and protect the property on behalf of all parties” he added.
February 5, 2016
McKinley recently completed the disposition of two large assets in Illinois on behalf of its institutional clients. Town Center Promenade is a 75,000 sf shopping center in Deer Park, IL. McKinley was appointed Receiver in March 2013 and post-foreclosure was hired to continue as the real estate advisor and property manager. During its tenure, McKinley completed a 10-year renewal with the anchor tenant, Dicks Sporting Good. The property management team actively engaged the tenants to eliminate all delinquency and to position the asset for sale. Through its prudent management and assertive leasing, McKinley increased the value of the center 33% in two years which led to a successful sale.
McKinley recently disposed of Raddant Road Industrial, a 54,569 sf industrial building in Batavia, IL. McKinley was appointed as Receiver August 2014 and continued to manage post-foreclosure. Raddant required significant exterior upgrades to the building to the parking areas. McKinley focused on reducing expenses and driving occupancy to 100%, which resulted in a two-fold increase in Net Operating Income in less than two years.
“Our Institutional Commercial Real Estate team has a keen understanding of the Receivership process,” stated Matthew Mason, Managing Director and Partner. “We focus on quickly improving NOI and maximizing occupancy to create the most value in the shorter possible time, which leads to great results for our clients,” he added.
“Matt and his team continue to defy the market, and to find creative opportunities to drive value,” said Kenneth P. Polsinelli, Chief Real Estate Officer. “Our clients appreciate their focus on quick results and on their passion for customer service,” he also offered.