January 26, 2016

Orlando, Florida McKinley City Beautiful, a boutique collection of historic and unique apartment communities located in the Downtown Orlando neighborhoods, continues its strategic expansion with the acquisition of a portfolio of three new communities. Delaney Park Flats, located in historic Delaney Park, and Lake Cherokee Flats and Osceola Flats, both located in the historic Lake Cherokee neighborhood provide authentic options for downtown living. These communities are walkable and bikeable to downtown and to Orlando Regional Medical Center, and they are in close proximity to vibrant dining and local shopping in downtown Orlando.

The PrivateBank is providing the acquisition and renovation financing as they have for all McKinley City Beautiful communities acquired to date. McKinley and The PrivateBank have a long, successful relationship together and they have been a core partner in McKinley's major expansion along the Interstate-4 Corridor from Orlando to Tampa/St Petersburg. "We have a unique partnership and relationship with The PrivateBank," offered Kenneth P. Polsinelli, McKinley's Chief Real Estate Officer. "They operate at our speed, they understand our business and our needs, and they share our long term vision," added Polsinelli.

All of these communities will undergo extensive renovations, including bringing all interiors to condo grade finishes with the finest materials and products. The exterior renovations will respect the historic integrity of the structures, while adding extensive amenities including outdoor dining and cooking areas, fire pits, bike and scooter parking, hammocks and lake view seating. All communities are redeveloped with an environmental focus and are smoke free living as well.

"McKinley City Beautiful in Downtown Orlando and McKinley Hyde Park in Hyde Park (Downtown Tampa) have allowed us to custom tailor living solutions for those very discerning customers that want to live in a dynamic downtown, but prefer a more secluded, quaint and historic alternative in traditional neighborhoods, as opposed to the newer high rises located in the business center downtown. As we have done in Hyde Park, each acquisition has been carefully curated to ensure that the brand delivers and exceeds expectations," offered Albert M. Berriz, McKinley's CEO.

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Tags:   City Beautiful

January 21, 2016

McKinley is pleased to announce that Lauren Leach, Director, Commercial Portfolio Management – Institutional Commercial Real Estate has been selected to serve as the 2016 CREW Careers Event Co-Chair along with Heather Olson, Miller Canfield.  Ms. Leach currently serves on the CREW Outreach Committee and is very active in supporting professional development for women in commercial real estate.

The CREW Careers event is a hands-on classroom program designed to introduce Detroit High School girls to the many career opportunities within the commercial real estate profession.  It consists of a one-day program where approximately 60 girls from Golightly High School, Detroit International Academy for Young Women, and Detroit Cristo Rey High School join together and with the help of CREW volunteers, they share two meals, learn about networking opportunities, and work most of the day on a real estate project. The teams then present their project to a panel of industry experts for feedback and recognition is given to each team.  The students also learn from a variety of guest speakers and further learn about summer internship opportunities. Since the inaugural event in 2008, CREW Careers has inspired more than 350 girls from Detroit High Schools, as well as engaging more than 200 CREW members as presenters and volunteers.

“Prior to the event, which will be held on May 18, we spend time at each school, meet with the girls to start forming relationships, and we teach them essential life skills,” said Lauren Leach.   “I'm excited about my involvement in what will be a very rewarding experience for my fellow CREW volunteers and for these talented high school girls” offered Leach.

“Lauren is an exceptionally talented executive with extensive real estate experience,” said Albert M. Berriz, Chief Executive Officer.  “She has a strong commitment to development, and we are proud of her efforts in promoting opportunities for these young women.  McKinley’s core purpose is enriching the quality of life in our communities and a key component is our culture of service,” added Berriz. 

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Tags:   ICRE

January 15, 2016

McKinley is pleased to announce that OfficeMax has renewed and extended its lease through 2024 at JANAF Shopping Yard.  OfficeMax operates in 23,159 sf and has been a core tenant at JANAF since 1991.  JANAF Shopping Yard is a one million square foot regional shopping destination located at the intersection of Military Highway and Virginia Beach Boulevard in the very heart of the Tidewater MSA. Super Wal-Mart is a parking plate partner and shadow anchor, and JANAF Shopping Yard is the home to over 150 stores, restaurants and services.  McKinley has owned and operated JANAF since 1991, and was instrumental in bringing OfficeMax to Norfolk.

"We are excited to have OfficeMax renew its lease and extend its term at JANAF.  It demonstrates the long-term success that they have had with us, and it also provides a great service for our customers,” said Matthew Mason, Managing Director and Partner, Institutional Commercial Real Estate.  “We have an exceptional and seasoned team at JANAF, and they do a great job caring for our tenants” added Mason.

“Matt and his team had a banner year leasing in 2015 having completed 274 leases for over 2,008,700 sf and $192,000,000 in leasehold value, and they are off to a strong start in 2016,” offered Kenneth P. Polsinelli, Chief Real Estate Officer.  “We are over 98% occupied across our entire portfolio, and we expect several more major announcements in the coming weeks,” he added.

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Tags:   ICRE

January 7, 2016

McKinley Institutional Commercial Real Estate (ICRE) is pleased to announce that it has completed the successful resolution and disposition of the Albertson’s portfolio.  McKinley was engaged as the real estate advisor and manager for a 2,094,932 square foot portfolio consisting of a mix of single tenant and net leased assets, fee simple and ground lease interests on September 27, 2012.  The portfolio encompassed 45 assets in 15 states and required a coordinated transition to new management in just a few days.

The portfolio operated in a complicated entity structure, with a multitude of lease formats, variable lease terms and differing landlord/tenant responsibilities.  Many assets were “dark” and not operating, and almost all assets had building code, life safety or deferred maintenance issues at the beginning of the assignment.  McKinley began an immediate and thorough lease review, abstracting all of the key terms, assessing the status of reserves and accurately defining landlord/tenant responsibilities.  Simultaneously, a detailed physical inspection was performed at each property to ascertain the full condition of the assets, define the scope of work needed, collect the appropriate reserves and to cure outstanding defects.

McKinley successfully disposed of 42 of the 45 assets on behalf of our client in June 2013.  Its efforts included coordinating all 3rd party reports, site inspections, estoppels and guiding both legal teams through closing.  As a reflection of the quality of work, the new purchaser engaged McKinley to remain as Manager for these assets.  The remaining three assets suffered from a variety of legal disputes, in which McKinley identified and resolved the key issues and also provided expert testimony at trial.

“I’m very proud of our team members, and how they attacked this very complex assignment,” offered Matt Mason, Managing Director and Partner.  “They mobilized across 15 states, quickly decided upon the key issues and executed flawlessly to resolve the outstanding challenges.  I’m thrilled with the results that we delivered,” he added. 

“Matt and his team are uniquely qualified to handle the most complex assignments” said Kenneth P. Polsinelli, Chief Real Estate Officer.  “They fully understand how to create value across the entire spectrum of real estate issues, and leverage the strength of the entire team to ensure that no opportunity is missed.  Their depth of experience with large scale and complicated assets enables McKinley to deliver unsurpassed results for our institutional clients,” he further added.

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Tags:   ICRE

January 6, 2016

Multi-Housing News features McKinley in an article about its expanding presence in South Tampa. CLICK HERE to read the article

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Tags:   Media

January 5, 2016

McKinley Institutional Commercial Real Estate (ICRE) is pleased to announce the successful disposition of Lincoln Square Shopping Center in Mahtomedi, Minnesota.  McKinley was appointed Receiver on February 24, 2014 and then engaged to continue as Manager post-foreclosure.  During its time as Manager, McKinley completed a comprehensive roof assessment, directed a complete parking lot resurfacing and secured a critical replacement tenant while navigating the asset through contract negotiation and a successful disposition.

"We are pleased to be selected by our client to manage and dispose of Lincoln Square on its behalf," stated Matthew Mason, Managing Director and Partner. "Our team, once again, demonstrated its ability to drive significant results in a very short time frame and meet the objectives of our valued institutional client."

“Matt and his executive team delivered exceptional service, and created the maximum amount of value as quickly as possible,” said Kenneth P. Polsinelli, Chief Real Estate Officer.  “The current retail environment is quite challenging, and McKinley leveraged its expertise and its view as an Owner to produce a great outcome for all stakeholders,” added Polsinelli.

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Tags:   ICRE

January 4, 2016

McKinley is pleased to announce that in the month of December it has successfully closed $157,915,800 in long-term permanent financing with Berkadia Commercial Mortgage utilizing HUD 223(f) mortgages. The debt has a thirty-five year term and an average interest rate of 3.27%.  These new loans support six communities in Ann Arbor and Orlando. This strategic financing provides favorable fixed-rate debt which will enable McKinley to continue making significant investments in these communities providing residents with world-class service and homes.

“We are pleased to partner again with Berkadia, and with HUD, to provide exceptional financing for our multifamily communities,” stated Kenneth P. Polsinelli, McKinley’s Chief Real Estate Officer.  “Long-term, fixed rate debt aligns well with our generational assets and our multi-decade commitment to our communities.  Our experienced teams worked hand in hand, and we are proud that we were able to complete all of these closings in less than 10 days,” added Polsinelli.

“McKinley is an established, best-in-class owner and operator of apartment communities who we are privileged to work with,” said Justin Wheeler, CEO of Berkadia. “We are committed to providing the best financing options available for all of our clients and have successfully closed 48 loans exceeding $757,000,000 in HUD financing over the last few years with McKinley, which has proven to be an extraordinary relationship for us.”  

"Our team is proud of our ability to execute, and we are excited to partner with Berkadia on these critical transactions. We receive tremendous support from the Detroit office; they do an exceptional job on our behalf, “offered Albert M. Berriz, McKinley’s CEO. “Importantly for us, Ann Arbor and Orlando are two of McKinley’s core markets and comprise a multi-billion dollar portfolio.  It is critical to our efforts that we have been in these markets three and four decades, we have seasoned executives living in these markets and we enjoy significant market presence in each case,” added Berriz. 


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Tags:   Finance

December 23, 2015

McKinley Hyde Park announces the acquisition of Carlyle Flats located in the core of Hyde Park. Carlyle Flats is the most recent addition to McKinley Hyde Park, a boutique collection of historic and restored apartment homes in the Hyde Park and South Tampa neighborhoods.  This thirty-two apartment home community is located at the intersection of Armenia Avenue and Platt Street, and features a mix of one and two bedroom apartments within a private pool and courtyard setting.

"Carlyle Flats offers an exceptional location with easy access to all of the award-winning restaurants and amenities of Hyde Park.  We will also continue the significant investments we are making at all of our communities.  Carlyle Flats will feature three expansive outdoor courtyards including one outdoor kitchen, a resort-style pool, fire pit with Adirondack chairs, and bike shelters," stated Kenneth P.Polsinelli, Chief Real Estate Officer.  “Our purchase of Carlyle Flats expands the McKinley Hyde Park brand to 17 communities.  The acquisition and renovation financing is provided by The Private Bank, and I am pleased that the entire team was able to move from contract to closing in less than three weeks,” added Polsinelli.

"We are very proud that McKinley Hyde Park today is the dominant brand in the Hyde Park/South Tampa market, and Carlyle Flats provides our customers with another great choice," offered Albert M. Berriz, CEO.  "We are working very hard to reposition assets, with extensive renovations now complete at Hyde Park Flats and Piccadilly Flats, and nearing completion at Parkland Flats and Brooklyn Flats.  We are excited with our progress, and we anticipate sharing further important updates about our expansion efforts in Hyde Park in the very near future," Berriz added.

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Tags:   Hyde Park

December 17, 2015

McKinley is pleased to announce the opening of the BJ's Wholesale Club gas service at JANAF Shopping Yard located in Norfolk, Virginia. This expansion will greatly enhance the already dominant position BJ's Wholesale Club enjoys in the Tidewater market, and provide an additional amenity for its customers. An adjacent parcel on Virginia Beach Boulevard was added to the main BJ's Wholesale Club facility, and a new market window orientation to JANAF was created. The grand opening celebration was recently held on December 10, 2015 as the gas service component opened for business for the very first time.

This expansion coincides with the long-term lease renewal of BJ's Wholesale Club, which is a core anchor for JANAF Shopping Yard. JANAF Shopping Yard is a one million square foot regional shopping destination located at the intersection of Military Highway and Virginia Beach Boulevard in the very heart of the Tidewater MSA. Super Wal-Mart is a parking plate partner and shadow anchor, and JANAF Shopping Yard is the home to over 150 stores, restaurants and services.

“We are pleased that we were able to assist a valuable long-term tenant by expanding its business,” stated Matthew D. Mason, Managing Director & Partner. “We were also able to create an improved market window on Virginia Beach Blvd. which improves the experience for our customers and also helps the other retailers,” he further added.

“This was a very complex transaction that required the cooperation and hard work of numerous stakeholders,” offered Ken Polsinelli, McKinley's Chief Real Estate Officer. “Our team did an exceptional job, and we are pleased that we will be closing on a long-term CMBS loan with KeyBank in January.”

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Tags:   ICRE

December 7, 2015

McKinley Institutional Commercial Real Estate (ICRE) is pleased to announce the successful disposition of Tops Plaza in Depew, New York.  McKinley was selected as property manager on December 21, 2012 for this 148,245 square foot grocery anchored retail center.  During its tenure, McKinley remediated all deferred maintenance issues, successfully managed and supervised the installation of a large backflow preventer system, and executed six leases which were essential to stabilize the rent roll.  Most notably, McKinley renewed the largest tenant, Tops Market, with a long term lease which maximized the current value and which positioned the property for sale.  

"McKinley is proud to have had the opportunity to leverage its property management and leasing expertise to stabilize another asset in New York and to create substantial value on behalf of our client,” stated Matthew D. Mason, Managing Director & Partner. “Our view as an owner and operator of commercial real estate enables us to focus on creating value quickly” added Mason.

"Matt and his executive team have an extraordinary track record of managing complex real estate, and of extracting maximum value in the shortest possible time,” said Albert M. Berriz, Chief Executive Officer.  “This is another successful result for an important institutional client and further demonstrates McKinley’s expertise in a challenging environment for retail,“ Berriz further added.

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Tags:   ICRE