Top Stories

Moinian Group Receives $595M CMBS Loan to Refinance 3 Columbus Circle in Manhattan

by John Nelson March 14, 2019

NEW YORK CITY — The Moinian Group has closed on a $595 million CMBS loan from J.P. Morgan and Deutsche Bank to refinance 3 Columbus Circle, a 26-story office tower in Manhattan that also houses the real estate investment firm’s headquarters. Formerly known as the Newsweek Building and originally built as the headquarters of General Motors Corp., 3 Columbus Circle is situated along Broadway and occupies a full city block just south of the Merchant’s Gate entrance to Central Park. The CMBS financing includes 10 years of interest-only payments at a fixed interest rate of 3.91 percent. The Moinian Group is using the loan to replace an existing $350 million CMBS loan. The property is fully leased, according to Moinian Group. Anchor office and retail tenants include global marketing firm VMLY&R, Moinian, Nordstrom, Chase Bank and CVS/pharmacy. History of ownership The Moinian Group originally purchased 3 Columbus Circle in 1999. The company’s path back to full control of the tower began in 2011, when the company first partnered with SL Green on the property. In 2012, together with architectural firm Gensler, Moinian completed the redevelopment of the building, including the design of a new facade, lobby, elevator system and the …

March 14, 2019

Acquisitions Office Southeast Tennessee Top Stories

CapRidge Partners Acquires 27-Story Office Tower in Nashville for $105.3M

by David Cohen March 13, 2019

NASHVILLE— CapRidge Partners has acquired Nashville City Center, a 27-story office tower. Multiple media outlets reported the sales price as $105.3 million. Located at 511 Union St. in downtown Nashville, the 477,261-square-foot building features a fitness center, freestanding restaurant and an onsite music studio available for tenant use. The building is near the Tennessee Performing Arts Center and Bridgestone Arena as well as number of dining and entertainment options. Andy Scott and Jim Curtin of HFF worked on behalf of CapRidge Partners to secure a four-year, floating-rate acquisition loan through lender CIT Group. “We were pleased to arrange financing for the acquisition of this notable office property in Nashville, which is a vibrant market for commercial properties,” says Chris Niederpruem, managing director for CIT’s Real Estate Finance division. Will Yowell, Jay O’Meara, Morgan Hillenmeyer and Douglass Johnson of CBRE represented the seller, Alliance Partners HSP LLC, in the transaction. Since 2011, the property’s average occupancy is 95 percent. “This offering was a very rare opportunity to acquire one of Nashville’s most prominent office assets at an attractive basis and we received significant investor interest because of it,” says Yowell, vice chairman at CBRE. “Nashville City Center benefits from its location in the …

March 13, 2019

Acquisitions Northeast Office Top Stories

Mack-Cali Agrees to Sell Office/Flex Portfolio for $487.5M as Part of Company Transformation

by Alex Tostado March 12, 2019

JERSEY CITY, N.J. — Mack-Cali Realty Corp. (NYSE: CLI) has entered into two agreements to sell its 56-building office/flex portfolio to RMC Acquisition Entity LLC, an affiliate of the Robert Martin Company LLC, for $487.5 million. The properties are situated in Elmsford, Hawthorne, Yonkers and Tarrytown, N.Y.; and Stamford, Conn. The sale of the portfolio is expected to close early in the second quarter of this year. Mack-Cali has been gradually selling off pieces of its flex/warehouse business. In 2015, the Jersey City-based company announced plans to sell up to $800 million worth of real estate it owns to become an owner, manager and developer of office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Proceeds from the latest sale will go toward paying down debt from Mack-Cali’s $263.5 million purchase of Soho Lofts, a 377-unit apartment community in Jersey City, situated about one mile from the Hudson River. “The sale of our office/flex portfolio substantially completes our strategic repositioning,” says Michael DeMarco, CEO of Mack-Cali. “Mack Cali’s evolution to a waterfront-centric office and residential landlord is complete.” As part of its disposition strategy, the company in January sold Elmsford Distribution Center, a six-building, 386,000-square-foot industrial park in …

March 12, 2019

Acquisitions New York Northeast Office Top Stories

RFR Holding, Signa Acquire New York City’s Chrysler Building for $150M

by Taylor Williams March 11, 2019

NEW YORK CITY — A partnership between Manhattan-based investment firm RFR Holding LLC and Austrian development group Signa Holding has acquired the 77-story Chrysler Building in New York City for $150 million, according to Reuters. The seller was a Dubai-based investment group that acquired a 90 percent share in the property in 2008 for $800 million, according to The Wall Street Journal (WSJ). Abu Dhabi Investment Council purchased its stake from Tishman Speyer, a locally based investment and development company. The Chrysler Building, located at the corner of 42nd Street and Lexington Avenue, is one of the more recognizable pieces of the New York City skyline. The 1.2 million-square-foot office property is perhaps best known for its art deco style that features a crowning dome and spire, as well as for being the city’s tallest building when it was completed in 1930. The Cooper Union for the Advancement of Science & Art, a private college in Manhattan, owns the land on which the skyscraper is situated. Annual rent from the ground lease paid to the school increased substantially in 2018, rising from $7.75 million to $32.5 million, per WSJ. The combined effect of rent increases, which will occur again in …

March 11, 2019

California Hospitality Top Stories Western

Airbnb Agrees to Acquire HotelTonight in Effort to Expand Booking Options

by Kristin Harlow March 8, 2019

SAN FRANCISCO — Airbnb has signed an agreement to acquire HotelTonight, a hotel-booking service focused on making last-minute trips for boutique and independent hotels. The deal will expand Airbnb’s ability to offer hotel listings. Terms of the deal were not disclosed, but The Wall Street Journal reports that HotelTonight was last valued at $463 million in March 2017. Airbnb expects the transaction to close in approximately 30 days. San Francisco-based Airbnb, an online lodging company, says the acquisition is part of its mission to create “an end-to-end travel platform that combines where you stay, what you do and how you get there, all in one place.” More than 400,000 companies are using Airbnb to help manage their travel, and same-day bookings are now growing twofold year over year, according to Airbnb. “Welcoming more boutique hotels to our platform will help us deliver on our commitment to make Airbnb for everyone, providing guests the authentic, local experience they have come to expect on every trip,” wrote Airbnb in a press release. In 2018, Airbnb more than doubled the number of rooms available on its platform in properties that hosts categorized as boutique hotels, bed and breakfasts and other hospitality venues like …

March 8, 2019

Acquisitions Multifamily Nevada Top Stories Western

Shopoff Realty Sells Apartment Community in Las Vegas for $100M

by Alex Tostado March 7, 2019

LAS VEGAS — Shopoff Realty Investments has sold Pointe at Centennial, a 624-unit apartment community in Las Vegas, to The Calida Group for $100 million. Pointe at Centennial is situated at 5850 Sky Pointe Drive, about 11 miles northwest of downtown Las Vegas. The community offers one-, two- and three-bedroom floor plans ranging from 740 to 1,121 square feet per unit. Shopoff purchased the property in September 2016 as a value-add acquisition when roughly 25 percent of the units were updated. At the time of the most recent sale, Shopoff said 50 percent of the units are currently updated. “By bringing the percentage of renovated units at the property up to 50 percent, we captured significant rent increases, approximately 20 percent higher than the property’s average rental rate at the outset of the renovation plan,” says Shopoff CEO William Shopoff. Irvine, Calif.-based Shopoff also made investments to community-wide amenities such as adding new entry gates, remodeling the leasing office, upgrading lighting, improving landscaping, and implementing roof repairs, exterior painting and gym upgrades. Other amenities include a swimming pool, basketball court, tennis court, grilling area, playgrounds, covered parking and a clubhouse. Shopoff has invested in value-add properties across the United States for …

March 7, 2019

Company News Property Type Retail Southeast Top Stories Virginia

Family Dollar to Potentially Close Nearly 400 Stores

by David Cohen March 6, 2019

CHESAPEAKE, VA.— Variety store chain Family Dollar could close up to 390 stores in fiscal 2019 unless it obtains material rent concessions from landlords on underperforming stores. As part of its turnaround efforts, the retailer will also make changes at the stores it is keeping open. Dollar Tree Inc. (NASDAQ: DLTR), which purchased Family Dollar in 2015 for nearly $9 billion in cash and stock, plans to revitalize the brand with store closures and a rebranding of some locations to Dollar Tree. In addition, some locations will be renovated to include $1 Dollar Tree merchandise sections. The retailer also plans to offer adult beverages in approximately 1,000 Family Dollar stores and expand freezers and coolers in approximately 400 stores. Family Dollar sells a variety of items for under $10 at rural and urban locations. Dollar Tree sells all items in its stores for $1 in mostly suburban locations. At the close of the fourth quarter of 2018, the company operated 8,200 Family Dollar stores and 7,000 Dollar Tree stores. “We are confident we are taking the appropriate steps to reposition our Family Dollar brand,” said Dollar Tree CEO Gary Philbin in a news release Wednesday. On March 6, Dollar Tree …

March 6, 2019

Acquisitions District of Columbia Office Southeast Top Stories

Saban Real Estate Buys D.C. Office Building from Piedmont for $170M

by John Nelson March 5, 2019

WASHINGTON, D.C. — Los Angeles-based Saban Real Estate has purchased One Independence Square, a 334,000-square-foot office building located at 250 E. St. in Washington, D.C.’s Southwest submarket. Piedmont Office Realty Trust (NYSE: PDM) sold the nine-story office asset to Saban for approximately $170 million. Built in 1991 near the National Mall and the Smithsonian, One Independence was 94 percent leased at the time of sale to multiple government tenants. The property’s average weighted lease term is 10 years, according to Brent Smith, president and chief investment officer of Piedmont. “The sale of One Independence reduces Piedmont’s exposure to the Southwest D.C. submarket and disposes of a fully stabilized asset,” explains Smith. “The net sales proceeds will be used in the short-term to pay down our line of credit as we evaluate our pipeline of acquisition candidates.” After undergoing a major renovation in 2013, One Independence now features a rooftop terrace, modern fitness center, café and an updated lobby. Saban Real Estate and its affiliates own real estate assets in three sectors: student housing, government office and self-storage. The company owns a portfolio of 30 student housing properties containing 20,000 beds, seven office buildings spanning 1.4 million square feet and 34 …

March 5, 2019

Acquisitions Multifamily New York Northeast Top Stories

CBRE Negotiates $472.5M Sale of Multifamily Portfolio in Long Island

by Taylor Williams March 4, 2019

LONG ISLAND, N.Y. — CBRE has negotiated the sale of a portfolio of multifamily properties totaling 1,496 units across seven properties in Long Island. The portfolio fetched a sales price of $472.5 million. The buyer was Melville, N.Y.-based Fairfield Properties, which is the largest owner of multifamily properties in Long Island by volume. The seller was not disclosed, but Long Island Business News reports that the seller was Rochester, N.Y.-based Home Properties. The following properties were included in the portfolio: Westwood Village, a 242-unit community in Westbury that was built between 1969 and 1971; Heritage Square, an 80-unit asset in East Meadow that was constructed in 1951; Cambridge Village in Levittown, an 82-unit property that was completed in 1969; Yorkshire Village in Levittown, a 40-unit complex that was delivered in 1973; Mid-Island Apartments, a 232-unit project in Bay Shore that was built in 1975; Southern Meadows, a 452-unit asset in Bayport that was completed in 1970; Lake Grove Apartments, a 368-unit property in Lake Grove that was constructed in 1972 All of the properties are considered Class B assets and are located in Nassau and Suffolk counties. Fairfield will implement a value-add program that will be focused on each property’s …

March 4, 2019

California Retail Top Stories Western

Gap Inc. to Close 230 Stores, Spin Off Old Navy

by Taylor Williams March 1, 2019

SAN FRANCISCO — Gap Inc. (NYSE: GPS) will close approximately 230 Gap specialty stores within the next two years, the San Francisco-based apparel chain announced in its fourth-quarter and 2018 fiscal year reports, released Thursday. Gap Inc. also revealed plans to spin off Old Navy, a brand it established in 1994, into a separate publicly traded entity, as well as to rebrand itself under a yet-to-be-determined name. In explaining their reasoning behind the split, company leaders cited a growing divergence between the customer bases, operating strategies and value-creation mechanisms of Gap and Old Navy, with the latter outperforming the former. According to The Wall Street Journal, Old Navy accounted for nearly half of Gap Inc.’s total 2018 sales of $16.6 billion. The new company will carry Gap-brand apparel in addition to clothing lines from sister brands like Athleta and Banana Republic. The two companies will trade under different ticker symbols and have separate management and leadership structures, as well as distinct financial profiles, company executives said. The company estimates that the closures of the 230 stores — roughly 20 percent of its total global store count— will result in approximately $625 million in annualized sales losses. Additionally, the company estimates …

March 1, 2019

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