Property Type

Marriott International Acquires W New York in Union Square for $206M

by Alex Tostado October 17, 2019

NEW YORK CITY — Marriott International Inc. has acquired W New York — Union Square, a 270-room hotel in Manhattan’s Union Square, for $206 million. Marriott plans to significantly renovate the 20-story hotel to include a spa and expanded restaurant. Existing amenities include a fitness center, five meeting rooms and three restaurants. “When W was launched as a single hotel in New York 21 years ago with ground-breaking design and a bold approach to nightlife, it pushed the boundaries of how people thought about a hotel,” says Arne Sorenson, president and CEO of Marriott International. “Given how much travelers crave these types of experiences today and the brand’s global reach, we see limitless potential for the W brand with hotel owners and developers, travelers and locals.” The property, located at 201 Park Ave. S., adjacent to Union Square Park and two miles north of downtown New York City, first opened in 1911 as the headquarters for Guardian Life Insurance Company of America. In 2000, Rockwell Group converted the building into its current use as a W hotel. The purchase and renovation of W New York — Union Square is part of a strategy by Marriott International to reinvigorate the W portfolio in North America. The plan also includes …

October 17, 2019

Illinois Market Reports Midwest Midwest Market Reports Office

Chicago CBD Office Market in the Groove, Even Property Taxes Unlikely to Bring It Down

by Kristin Harlow October 17, 2019

Despite recent concerns of an imminent market correction, the Chicago central business district (CBD) still has room to run. There are many signs of optimism in the market, including continued healthy fundamentals and a wealth of redevelopment projects injecting new life and vibrancy into various submarkets. In the second quarter, downtown Chicago wrapped up its busiest quarter for office leasing since 2016. Additionally, the downtown office vacancy rate of 11.6 percent was the lowest it had been since 2016. To top it off, Chicago is experiencing historically high annual levels of net absorption, which potentially could put upward pressure on rents, and sublease space is relatively scarce. It’s hard to find stronger evidence of a robust CBD office market. Redevelopment projects Market statistics aside, noteworthy redevelopments have Chicagoans genuinely excited as they look forward to a new crop of influential spaces that will drive the next iteration of the Chicago office market. The real estate fairy tale that has real estate aficionados entranced — not only in Chicago but nationally — is 601W Cos.’ Old Post Office project at 433 W. Van Buren. More than 1 million square feet has already been leased at the 2.8 million-square-foot space, largely thanks …

October 17, 2019

Features Loans Multifamily Seniors Housing

Expect Seniors Housing Lenders To Boost Deal Volumes

by Alex Tostado October 17, 2019

The sharp drop in interest rates over the past several months has not only lowered the cost of capital for borrowers, but it has also helped offset higher operating costs at a critically important time, say seniors housing lenders. At the close of business on Oct. 16, the 10-year Treasury yield — a benchmark for long-term, fixed-rate permanent financing in commercial real estate — stood at 1.75 percent, down about 125 basis points from the start of 2019. Meanwhile, the 30-day London Interbank Offered Rate (LIBOR), which is used to help set interest rates on construction loans, registered 188 basis points as of Oct. 16, a drop of about 60 basis points since the beginning of the year. Adding an element of drama and complexity to the overall picture is the inverted yield curve scenario, the point at which the 10-year Treasury bond falls below the level on the two-year bond. That’s precisely what occurred in mid-August, resulting in high volatility on Wall Street. Historically, an inverted yield curve is a strong indicator that the risk of recession is increasing. It means that investors are concerned about the economic outlook in the short term, but it provides no guarantee that …

October 17, 2019

Acquisitions Hospitality Nevada Retail Top Stories Western

MGM Agrees to Sell Las Vegas Resorts Bellagio, Circus Circus for $5B

by Alex Patton October 16, 2019

LAS VEGAS — MGM Resorts International (NYSE: MGM) has agreed to sell its Bellagio and Circus Circus resort assets on the Las Vegas Strip in two different transactions for a combined price of approximately $5 billion. Blackstone Real Estate Income Trust (BREIT) will acquire Bellagio in a $4.25 billion sale-leaseback deal. As part of the transaction, BREIT and MGM will form a joint venture ownership agreement, with BREIT owning 95 percent. MGM will continue to lease, manage and operate the property, with an initial annual rent of $245 million. MGM also agreed to sell its Circus Circus Las Vegas resort to an affiliate of Treasure Island Hotel and Casino owner Phil Ruffin for $825 million. Both sales are expected to close by the end of 2019. “We will use the proceeds from [these transactions] to build a fortress balance sheet and return capital to shareholders,” says Jim Murren, chairman and CEO of MGM Resorts International. “These transactions enhance the company’s strategic and operational flexibility and reinforce its commitment to targeted new growth opportunities, including securing and investing in one of the integrated resort licenses in Japan and becoming an industry leader in sports betting in the U.S.” The sale-leaseback deal …

October 16, 2019

Acquisitions Arizona Office Western

Bridge Investment Group Purchases 439,584 SF Office Campus in Phoenix

by Amy Works October 16, 2019

PHOENIX — Bridge Investment Group’s subsidiary Bridge Office Fund Manager has purchased Phoenix Gateway Center, a Class A office campus located on North 44th Street in Phoenix. The 439,584-square-foot asset consists of two four-story buildings (One Gateway and Two Gateway) and one 11-story building (Three Gateway). Originally built between 1984 and 1988, the office complex recently underwent more than $4.7 million in renovations and capital improvements. Bridge plans to invest approximately $2.7 million in further enhancements at Phoenix Gateway Center, including upgrades to lobbies, elevator cabs, outdoor space, common areas on the individual floors, the fitness center and the conference room. Renovations are slated to begin immediately, with the first phase scheduled for delivery in second-quarter 2020. John Bonnell, Brett Abramson, Chris Latvaaho and Chris Beall of JLL will handle the leasing of the property. Bridge Commercial Real Estate LLC, the operating company for Bridge Office, will oversee all leasing, property management and redevelopment work at Phoenix Gateway.

October 16, 2019

Acquisitions Nevada Retail Western

CIRE Equity Acquires Sparks Galleria Retail Center Near Reno for $40.6M

by Amy Works October 16, 2019

SPARKS, NEV. — CIRE Equity has purchased Sparks Galleria, a grocery-anchored retail center located in Sparks, a suburb of Reno. Pine Tree Commercial Realty sold the asset for $40.6 million. Anchored by Sprouts Farmers Market and Marshalls/HomeGoods, Sparks Galleria features 212,647 square feet of retail space. Additional tenants include Starbucks Coffee, Qdoda Mexican Eats, See’s Candies and Kay Jewelers. Colliers International, in collaboration with Newmark Knight Frank, represented the seller in the deal.

October 16, 2019

Colorado Loans Multifamily Western

JLL Arranges $14.7M Refinancing for Tennyson Place Apartment Community in Denver

by Amy Works October 16, 2019

DENVER — JLL has secured a $14.7 million loan for the refinancing of Tennyson Place, an apartment community in Northwest Denver’s Berkeley neighborhood. The borrower is Allante Properties and Investments. Brock Yaffe and Josh Simon of JLL Capital Markets arranged the fixed-rate, balance-sheet loan for the borrower. Proceeds were used to refinance an existing loan. Located at 3885 N. Tennyson St., the property features 81 apartments in a mix of studio and one-bedroom units ranging from 365 square feet to 769 square feet. Community amenities include an indoor/outdoor community room, business center, 24-hour fitness center, sky deck, pet spa and garage parking. The property was built in 2017.

October 16, 2019

Acquisitions Office Washington Western

Marcus & Millichap Brokers $8.2M Sale of Soundview Park Office Property in Washington

by Amy Works October 16, 2019

GIG HARBOR, WASH. — Marcus & Millichap has arranged the sale of Soundview Park, an office property located in Gig Harbor. Soundview Park Inc. sold the property to Gig Harbor-based Donkey Creek Holdings for $8.2 million. Located at 5775 Soundview Drive, the asset features 51,527 square feet of space spread across three office buildings and one flex building. The four buildings are fully occupied by professional service and retail tenants. The property also has a pad site for future development, as well as ample parking. The asset was built in phases from 1990 to 1993 by the seller. Stren Lea, Tyler Nicholes and Matthew Herman of Marcus & Millichap’s Seattle office represented the seller, while Lisa Tallman of First Western Properties represented the buyer in the transaction.

October 16, 2019

Acquisitions Colorado Office Western

Broe Real Estate Buys 41,030 SF Office Building in Colorado, Plans Medical Office Conversion

by Amy Works October 16, 2019

LITTLETON, COLO. — Broe Real Estate Group (BREG), an affiliate of Denver-based The Broe Group, has purchased an office building located on 4.7 acres at 1501 W. Mineral Ave. in Littleton. WorldVenture sold the asset, which was its former headquarters, for an undisclosed price. The property was constructed in 1999. The buyer plans to convert the two-story, 41,030-square-foot building into medical office space. This project is the BREG’s fifth transaction supporting medical office repositioning in the past 12 months, bringing nearly 600,000 square feet of medical office space to market. Jeff Wood and Monica Wiley of CBRE represented the seller in the deal.

October 16, 2019

Development Office Southeast Virginia

Joint Venture Breaks Ground on 187,000 SF Office Building in Charlottesville

by Alex Tostado October 16, 2019

CHARLOTTESVILLE, VA. — A joint venture between Apex Clean Energy, Riverbend Development, William McDonough + Partners and Hourigan Development has broken ground on an eight-story, 187,000-square-foot office building that will serve as each of the company’s headquarters. Apex will anchor the building, occupying 84,000 square feet and the top three floors. Apex will consolidate its three offices and 170 employees across Charlottesville. William McDonough + Partners designed the building, which will include 875 solar panels, a roof terrace, indoor bicycle storage and electric vehicle charging stations. Construction is expected to take approximately 20 months, with the building opening in mid-2021.

October 16, 2019

Newer Posts

Older Posts