Top Stories

Bellwether Enterprise Arranges $126.5M Refinancing for Newly Completed Apartment Complex Near Los Angeles

by Kristin Harlow July 17, 2019

BURBANK, CALIF. — Bellwether Enterprise Real Estate Capital LLC has arranged a $126.5 million loan for the refinancing of Talaria at Burbank in Los Angeles County. Completed in February, the apartment community is home to 241 luxury units, a ground-floor Whole Foods Market and subterranean parking. The four-story property is located at 3401-3425 W. Olive Ave. across the street from NBC, ABC, Warner Bros. and other major film/television studios. The complex features a mix of one-, two- and three-bedroom floor plans as well as two penthouse units. VTBS Architecture designed the project. Amenities at Talaria at Burbank include a resort-style pool, fitness club, rooftop bar and lounge, business center, bicycle repair shop, electronic vehicle charging stations and 24-hour concierge services. The 42,000-square-foot Whole Foods Market also features a restaurant and pub. Tom Kenny of Bellwether Enterprise arranged the 10-year loan on behalf of the borrower, Cusumano Real Estate Group. The structure enabled the borrower to lock in a long-term, fixed-rate loan prior to lease-up and included recouping a significant amount of equity at closing, according to Bellwether Enterprise. PGIM Real Estate Finance provided the funds. The mixed-use complex is somewhat infamous in the area for taking nearly 20 years to …

July 17, 2019

Acquisitions California Colorado Industrial Top Stories Western

Prologis to Acquire Industrial Property Trust for Nearly $4B

by John Nelson July 16, 2019

SAN FRANCISCO AND DENVER — Prologis Inc. (NYSE: PLD) has signed a definitive merger agreement to acquire Industrial Property Trust Inc. (IPT) in a deal valued just shy of $4 billion. IPT is an industrial real estate investment platform sponsored by Black Creek Group, a real estate investment manager and development firm based in Denver. If approved by IPT’s shareholders, the overall transaction would span 236 properties located across 24 geographic areas. The roughly 37.5 million-square-foot portfolio is currently 97 percent leased. About 96 percent of the affected properties are in markets where Prologis already has a presence. The transaction would expand the San Francisco-based firm’s holdings in Southern California, the Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey. “This is a compelling opportunity to acquire a portfolio of excellent asset quality and submarket composition consistent with our U.S. investment strategy and footprint,” says Eugene Reilly, chief investment officer of Prologis. “We expect to capture significant cost and revenue synergies.” The merger will include 100 percent of IPT’s wholly owned real estate assets, but will exclude the firm’s minority ownership interests in two unconsolidated joint venture partnerships valued at approximately $295 million. Black Creek Group expects to determine the …

July 16, 2019

California Development Hospitality Top Stories Western

Pebblebrook, Margaritaville to Open 462-Room Resort in San Diego

by Taylor Williams July 15, 2019

SAN DIEGO — A partnership between Pebblebrook Hotel Trust (NYSE: PEB) and Margaritaville Holdings will open a 462-room beachfront hotel and resort in San Diego. The Margartitaville Island Resort San Diego will be located on the 44-acre Vacation Island in the city’s Mission Bay area. The site is the current home of Paradise Point Resort & Spa, which will be renovated and converted to the Margaritaville hotel. Project costs are estimated at $35 million. The hotel will feature a mile of beachfront with views overlooking the marina and bay, as well Margaritaville food and beverage concepts. Other amenities will include five pools, tennis courts, a spa, fitness center and 80,000 square feet of meeting space. “Our island resort offers a unique San Diego beach experience in a secluded, yet centrally situated location to nearby downtown San Diego, SeaWorld, Balboa Park, Seaport Village and other top attractions,” says Jon Bortz, president and CEO of Pebblebrook. “The Margaritaville lifestyle brand is synonymous with fun and escapism and we expect a dramatic improvement in financial performance of Paradise Point upon reflagging.” Maryland-based Pebblebrook acquired Paradise Point Resort & Spa in 2018. The new Margaritaville hotel, which will be the brand’s first on the West …

July 15, 2019

Company News Retail Top Stories

Charming Charlie Declares Second Bankruptcy, Will Close All 261 Stores

by Jeff Shaw July 12, 2019

HOUSTON — Charming Charlie, a women’s fashion and beauty chain based in Houston, filed for Chapter 11 bankruptcy on Thursday. It is the second time the retailer known for its colorful displays of jewelry, handbags, apparel and beauty products has filed for bankruptcy in less than two years. The company now plans to close all 261 of its remaining stores across 38 states. The retailer’s first filing was in December 2017, and the financial restructuring was completed the following April. However, the company continued to struggle following the reorganization and, according to the new filing, only has $6,000 in cash on hand compared to debt of $82 million. The Charming Charlie website was not accepting e-commerce orders during the first restructuring, but had just relaunched in August 2018. As of this morning, the site was once again not accepting orders. The stores are located almost exclusively in malls, with 125 locations in lifestyle centers, 80 in shopping malls and 50 in power centers. The remaining locations are two street stores and four outlets. Texas, Florida and California host the most brick-and-mortar locations with approximately 75 stores in total. “The large format of the store of about 7,500 feet, especially given …

July 12, 2019

Acquisitions Midwest Mississippi Missouri Retail Southeast Top Stories

Twin River Worldwide Agrees to Acquire Two Casinos from Eldorado Resorts for $230M

by Alex Tostado July 11, 2019

LINCOLN, R.I. — Twin River Worldwide Holdings Inc. (NYSE: TRWH) has entered into an agreement to acquire Isle of Capri Casino Kansas City in Missouri and Lady Luck Casino Vicksburg in Mississippi for $230 million. Eldorado Resorts Inc. (Nasdaq: ERI) is the seller. Isle of Capri is located near downtown Kansas City, overlooking the Missouri River. The property offers 40,000 square feet of casino space, 939 gaming machines, 13 table games and two dining venues. Lady Luck Casino Vicksburg is situated along the Mississippi River. The property features 25,000 square feet of casino space, 603 slot machines, eight electronic table games, three dining venues and an 89-room hotel. “Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets,” says George Papanier, president and CEO of Lincoln, R.I.-based TRWH. “We believe these assets are a great fit for our portfolio and see the opportunity to increase the net cash flow from these properties by our redevelopment and operating plans.” Eldorado Resorts expects to use the proceeds from the sale for general corporate purposes, including its proposed $17.3 billion acquisition of Caesars Entertainment Corp. Papanier says TRWH will redevelop Isle of Capri, though he did not …

July 11, 2019

Acquisitions Kansas Midwest Office Top Stories

Occidental Management Closes on Acquisition of 190-Acre Sprint Headquarters in Overland Park, Kansas

by Kristin Harlow July 10, 2019

OVERLAND PARK, KAN. — Occidental Management Inc. has closed on its previously announced acquisition of the 20-building, 190-acre Sprint headquarters campus in Overland Park. The purchase price was not disclosed, but the campus is valued at more than $342 million, according to the Johnson County Appraiser. The deal includes a sale-leaseback agreement with Sprint Corp., which will occupy the buildings primarily in the southern portion of the property. The first buildings opened in 1997 when Sprint consolidated operations in the Kansas City metro area. The campus was designed to accommodate 14,500 employees and reached maximum capacity in 2004 when Sprint merged with Nextel. Since then, Sprint has been downsizing. Of the roughly 4 million-square-foot campus, approximately 1.7 million square feet is leased to other tenants and 250,000 square feet is vacant, according to Gary Oborny, CEO and chairman of Occidental. Wichita-based Occidental has yet to release specific plans for the property’s future, but expects to do so by year’s end. The company does intend to re-invigorate the campus and focus on adding amenities that will help employers retain and recruit talent. “The Sprint campus has been one of our ideal acquisition targets in the Kansas City market, and we’re excited …

July 10, 2019

Development Office Top Stories Washington Western

Hines Breaks Ground on 17-Story Office Tower in Bellevue Fully Leased to Amazon

by John Nelson July 9, 2019

BELLEVUE, WASH. — Hines has broken ground on Summit 3, a 17-story office tower located in downtown Bellevue, a suburb of Seattle situated on the shores of Lake Washington. The Houston-based development firm has preleased the Class A, 374,220-square-foot office building to a tenant it did not disclose, but the Puget Sound Business Journal reports that Amazon has leased the entire tower with plans to grow its Bellevue employee base to 2,500 by 2020. The Seattle Times reported last week that the Seattle-based tech giant has also begun the permitting process for a new 43-story tower at 600 108th Ave., about two blocks north of Summit 3. Situated at the corner of 108th Ave. NE and N.E. 4th St., general contractor JTM Construction will build Summit 3 atop an existing subterranean parking garage that spans seven levels. Hines will develop the office space to accommodate high-density tech operations. The property is the third building within The Summit office campus, which includes Café Pogacha and a Bright Horizons childcare facility. Other onsite amenities at the Summit campus include a fitness center, conference center and The Summit Room, which functions as a combination of a lobby, lounge and meeting area. The U.S. …

July 9, 2019

Acquisitions Multifamily Nevada Top Stories Western

Waterton Acquires 720-Unit Multifamily Portfolio in Las Vegas for $140M

by Taylor Williams July 8, 2019

LAS VEGAS — Waterton, a national owner-operator that specializes in multifamily and hospitality assets, has acquired a two-property, 720-unit multifamily portfolio in Las Vegas. According to the Las Vegas Review-Journal, the sales price was $140 million. The seller was not disclosed. Mirasol is a 400-unit community that was built in 1996 and features amenities such as a resident clubhouse, fitness center, pool and dog park. Fairways on Green Valley spans 320 units, was built in 1989 and offers a clubhouse, recreation center and a pool. Both properties are located about 10 miles south of downtown Las Vegas. Waterton had previously disposed of all its Las Vegas holdings in June 2017, but has re-entered the market due to exceptionally strong job growth and affordability relative to other western cities, according to company officials. “These well-located, commuter-friendly assets offer easy access to a range of high-quality schools, businesses and lifestyle amenities,” says Peter Kuzma, vice president of acquisitions at Waterton. “As the costs of homeownership continue to rise and the pool of renters increases, the value proposition for multifamily housing in this area has become particularly attractive.” Chicago-based Waterton’s initial investment plans include interior renovations and improvements to residences, as well as …

July 8, 2019

Gaylord Rockies Resort & Convention Center in Aurora, Colorado

Colorado Hospitality Loans Top Stories Western

Ryman Hospitality Receives $880M Refinancing for Gaylord Rockies Resort & Convention Center Near Denver

by Jeff Shaw July 5, 2019

AURORA, COLO. — Ryman Hospitality Properties Inc. (NYSE: RHP) has received a financing package totaling $880 million to refinance the construction and mezzanine loans for Gaylord Rockies Resort & Convention Center in Aurora, just east of Denver. Wells Fargo both provided and arranged the loan. Sitting on 85 acres, Gaylord Rockies features over 1,500 guest rooms including 114 suites and over 485,000 square feet of meeting and convention space. Amenities include eight restaurants, a spa/salon, multiple retail shops and a $25 million indoor/outdoor water park. Marriott International operates the resort, which opened in December 2018. Ryman Hospitality is a publicly traded lodging REIT specializing in destination hotel assets in urban and resort markets. The original loans were scheduled to mature in December 2019. Although the owner of the property is a joint venture, with Ryman owning 61.2 percent of the property, the other owners were not disclosed. The new loan consists of an $800 million term loan and an additional $80 million of borrowing capacity should the joint venture decide to pursue a future expansion. The new loan matures in July 2023 with three one-year extension options and bears an interest rate at LIBOR plus 2.5 percent. Simultaneously with the …

July 5, 2019

Loans Multifamily New York Northeast Top Stories

Greystone Arranges $178M Refinancing for 26-Story Apartment Tower in Brooklyn

by Kristin Harlow July 3, 2019

NEW YORK CITY — Greystone has arranged a $178 million permanent loan for the refinancing of Hoyt & Horn, a new 26-story apartment tower in downtown Brooklyn. Wells Fargo Multifamily Capital provided the loan to the borrower, a joint venture between affiliates of Rose Associates and Benenson Capital Partners. The 15-year, fixed-rate loan was structured as a direct purchase of tax-exempt and taxable bonds issued through the New York State Housing Finance Agency’s 80/20 Housing Program. Under the 80/20 program, 20 percent of the units within a building are set aside for low- and moderate-income households. The new financing replaces the original $158 million construction loan provided by J.P. Morgan and SunTrust Bank. Built in 2018, Hoyt & Horn is a mixed-income rental community with 368 units. It features a lobby, bicycle storage, fitness center, golf simulator, game room and outdoor decks. Starbucks recently signed a 10-year lease for 2,050 square feet on the ground floor of the property and is expected to open late this year. An additional 7,500 square feet along Livingston Street and 3,600 square feet on Schermerhorn Street are currently available for lease. Drew Fletcher of Greystone Capital Advisors served as exclusive advisor on the transaction, …

July 3, 2019

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