First Street Napa Mixed Use Property Refinanced

From Blau Journal HFF announces the $42 million refinancing of First Street Napa, a 142,026-square-foot, mixed-use retail and creative office property spanning three blocks in downtown Napa, California. The HFF team worked on behalf of the borrower, Zapolski Real Estate, LLC and Trademark Property Company to secure the floating-rate loan through ACORE Capital, LP. Loan proceeds will be used to pay off the development construction loan and provide an unfunded facility to complete the lease up of the remaining tenant suites. The property is part of a newly constructed 325,000-square-foot, Class A, mixed-use development that comprises 45 high-end retail shops, new state-of-the-art creative office space and a 183-room, boutique Archer Hotel, which was not a part of the financing. Centrally loated in Downtown Napa, the property is within walking distance of hotels, restaurants, wine tasting rooms and entertainment venues and it covers three city blocks along First Street, the major vehicular artery into Downtown Napa, the gateway to Napa Valley. First Street Napa offers a blend of regional, national and international retail that the market demands, elevating Napa from first-class to world-class. The HFF debt placement team representing the borrower included senior managing director Peter Smyslowski and associate Bercut Smith. “We are thrilled to be lending to two high quality sponsors on an innovative retail project that will further transform the area,” said Kyle Jeffers, managing director at...

Coast-to-coast vision for downtown Napa’s future

From North Bay Business Journal By Jeff Quackenbush Napa’s First Street has undergone a dramatic $200 million transformation in the past seven years with the redevelopment of an aging, largely vacant shopping center into an anchor for downtown upscale lodging, dining and commerce. At the helm of the 325,000-square-foot First Street Napa project is Todd Zapolski, who has to become a significant force in North Bay real estate in the past two decades. He brought in Trademark Property Company as a partner in the project and lined up Lodgeworks to oversee the 183-room Archer Hotel portion, which opened Nov. 27. The project also has 45 shops and 30,000 square feet of office space, most of which is occupied or spoken for. But beyond that project, Zapolski’s local projects have included the Anton Napa apartments, Carnera Corporate Center in south Napa and the Walmart-anchored Napa Junction shopping center in American Canyon. Throughout his nearly four decades in real estate development, investment and management, Zapolski has learned a key tenet that has proved valuable for the First Street Napa project: Be patient. “You have to understand the area,” Zapolski said, while sitting in the lobby of the Archer. “We try to understand what makes an area work, rather than force it.” Law, rather than real estate, was Zapolski’s planned career path. He graduated from Duke University in Durham, North Carolina, with an undergraduate degree in political science. “Political science is good for going on to law school, but what I didn’t realize was that it also makes sense for real estate,” Zapolski said. “Because much of the built environment involves understanding...

Zapolski Acquires 129,851 SF Shopping Center in Asheville from Edens for $33M

From Rebusinessonline.com By Camren Skelton Whole Foods Market anchors Asheville Market, a 129,851-square-foot shopping center in Asheville, N.C. ASHEVILLE, N.C. — Zapolski Real Estate has acquired Asheville Market, a 129,851-square-foot shopping center located at 4 S. Tunnel Road in Asheville, for $33 million. Alex Quarrier of Berkeley Capital Advisors arranged the transaction on behalf of the seller, Edens. David Vinson and Todd Crouse of NorthMarq Capital arranged acquisition financing through Citigroup Global Markets on behalf of Zapolski. The loan amount was not disclosed. Asheville Market was originally constructed in 1980 as a “Big K” Kmart, but Whole Foods Market replaced the store in 2014 as part of the center’s repositioning. Additional tenants include DSW, Guitar Center, HobbyTown, Chicken Salad Chick, Neo Burrito, Duncan & York and...

Franklin Street’s CVS building has a new, modern exterior

From The Daily Tar Heel By Ismail Conze The scaffolding on the front of 137 E. Franklin St., which contains CVS, has finally come down and a shiny new exterior for the building has taken its place. The renovations have focused mainly on modernizing the design of the building as well as updating appliances to make the property conform to current energy standards. The 137 E. Franklin St. property is currently owned by Zapolski Real Estate, LLC. Chapel Hill Zoning Enforcement Officer Mike Klein believes the renovations are currently wrapping up and are expected to end before Zapolski Real Estate’s construction permit expires. “Permits usually have an expiration date of about a year,” Klein said. “Their permits were issued late spring or early summer of 2016 so they appear to be on track with everything.” Klein said the main entrance to the building will probably not get renovated until the scaffolding is completely down. Todd Zapolski, managing member of Zapolski Real Estate, said the construction is mostly finished. “We’re just waiting on the lights — we have LED lights,” Zapolski said. “It’s going to be really cool at night, and we’re trying to schedule the manufacturer to come and program them. It’s probably going to be a couple weeks.” Although there were a few setbacks due to delays in materials arriving, Zapolski said the lights will be the last addition before the project is complete. Meg McGurk, executive director of the Chapel Hill Downtown Partnership, said she feels the renovations are positive and a sign of growth. McGurk said Zapolski Real Estate replaced the elevators and renovated the interior...

A Waking Giant or a Monster? Developers Eye Once-Sleepy Napa

From The New York Times By Kathy Chin Leong In the 1980s, when John Truchard was a teenager, the most happening watering hole in downtown Napa was the McDonald’s on Jefferson Street. “It was a ghost town,” said Mr. Truchard, the owner of a wine room, JaM Cellars. “There were no good restaurants, nothing good to do.” Napa, with a population of about 80,000, is Napa Valley’s largest city and the county seat. Until recently, even as Napa Valley became an international wine destination, tourists tended to bypass the city in favor of venturing “up valley” for wine tasting, luxury lodging and upscale restaurants. Places like St. Helena, Yountville and Calistoga attracted tourists while Napa, an hour north of San Francisco, tended to be a pit stop for gas. It didn’t help that there was also flooding in the downtown streets after torrential rains. Downtown Napa now has 65 restaurants and 24 wine tasting cellars, said Craig Smith, the executive director of the Downtown Napa Association. Two decades ago, downtown had one tasting room and approximately 30 restaurants — mainly serving breakfast and lunch, because there was no reason to open for dinner, he said. Aiding the growth has been a river bypass flood project, completed in 2015, that diverted waters away from downtown. To further counter its image as a sleepy county seat, downtown Napa is getting a makeover. Three major new building projects are set to be completed this year. One of them, First Street Napa, is a 275,000-square-foot development that will cost $200 million. It will cover three square blocks and include more than 40 spaces...

Major renovations underway for 1970s-era Franklin Street icon

From Triangle Business Journal by Amanda Hoyle Driving down Franklin Street in Chapel Hill, it’s hard to miss the construction work underway at one of Chapel Hill’s tallest buildings: the iconic retail and office building at 137 E. Franklin St., which is best known for its street-level CVS drug store. A complete exterior renovation of the building is underway, confirms Todd Zapolski of Zapolski Real Estate in Durham who is a part owner in the building. He says the exterior work should be complete by late November or early December. Renovation of the building’s lobby, elevator cabs and the lower level of the building on the Rosemary Street side is already complete, and renovation work is underway on two of the upper level vacant floors. Much of the upper floor office space is currently occupied by administrative and research offices for UNCChapel Hill, but many of those employees will be moving into new spaces at the Carolina Square mixed-use project that’s slated to open in 2017, also on Franklin Street. As those spaces are vacated, Zapolski says they’ll be working to renovate them, too. “It’s a very stable property,” he says. “It’s had some challenges with design, but it’s one of the only buildings with unique access to both Franklin Street and Rosemary Street. It can be a critical spine in downtown.” Zapolski estimates the building’s ownership has already invested close to $2 million in its renovations. Zapolski and Manhattan-based Atco Properties and Management purchased the building, which is actually two buildings joined together, along with the parking garage in 2014 for $26.2 million. It was the first time...