Top Stories

Public-Private Partnership to Develop $300M University of Michigan Research Center in Downtown Detroit

by Alex Tostado October 31, 2019

DETROIT — A public-private partnership has unveiled plans for a $300 million, 190,000-square-foot research and education center in downtown Detroit that the University of Michigan (U-M) will occupy and operate. Kohn Pedersen Fox designed the building that will anchor the 14-acre Detroit Center for Innovation (DCI). The research building is expected to eventually serve 1,000 graduate and senior-level undergraduate students pursuing advanced degrees in a range of high-tech innovation disciplines, including mobility, artificial intelligence, data science, entrepreneurship, sustainability, cybersecurity and financial technology. Construction of the DCI is slated to commence in 2021. Michigan Gov. Gretchen Whitmer joined Detroit Mayor Mike Duggan; Wayne County Executive Warren Evans; Stephen Ross, philanthropist and chairman of Related Cos.; Matt Cullen, CEO of Bedrock; and U-M President Mark Schlissel at the planned construction site on Wednesday to announce development plans. Funding for the project is backed by donations from public and private funders including Ross and Gilbert. Gilbert owns Bedrock, which acquired the land from Wayne County in 2018. The company demolished the half-built Wayne County Jail. For the development of DCI, Bedrock will transfer land ownership to U-M, pending public review by the Wayne County Commission. “This announcement represents an incredible commitment to Detroit by Stephen Ross, Mark Schlissel and Dan Gilbert that will allow us to develop, attract and retain world-class …

October 31, 2019

Development Hospitality Kentucky Southeast Top Stories

Dual-Branded Hotel Distil, Moxy Opens on Louisville’s Whiskey Row

by Kristin Harlow October 30, 2019

LOUISVILLE, KY. — A 12-story, dual-branded Hotel Distil and Moxy has opened on Louisville’s historic Whiskey Row. Poe Cos., White Lodging and REI Real Estate Services jointly developed the 315-room project. Louisville Business First reports project costs of roughly $100 million. The 205-room Hotel Distil is part of Marriott’s Autograph Collection Hotels, a portfolio of independent and upscale hotels comprising more than 180 properties. Many of Hotel Distil’s design cues are taken from bourbon barrels and the distilling process, with the intent of paying homage to Louisville’s bourbon heritage. Examples include wood tones, staves, black metal accents and copper fixtures. The hotel design incorporates an original 1860s-era façade, which was saved following a fire in 2015 and served as the original location and barrel house for J.T.S. Brown & Sons, a Kentucky bourbon whiskey produced by the Heaven Hill Distillery company. Hotel Distil will offer guests a nightly celebration of Prohibition. Guests will receive an invitation at check-in to join the hotel’s lobby for a nightly toast at 7:33 p.m., which is 19:33 Universal Time, the year Prohibition was repealed. Attendees will receive a celebratory whiskey cocktail. The hotel’s event space totals more than 11,000 square feet across its ballroom, three meeting rooms and …

October 30, 2019

Leasing Activity New York Northeast Office Retail Top Stories

Leasing Event: BMW of Manhattan Renews 227,000 SF Office, Showroom Space in New York City

by John Nelson October 29, 2019

NEW YORK CITY — BMW of Manhattan has renewed its 227,000-square-foot lease at 555 W. 57th St. in New York City, a 20-story office building formerly known as the Ford Motors Building. BMW occupies office space on the ground and concourse levels, as well as the entire second, third and fourth floors. The company also leases the ground-level showroom, which formerly showcased Ford vehicles. BMW will stay in the building for at least another 10 years following its lease renewal with New York-based landlord SL Green Realty Corp. “We’re delighted to extend our longstanding relationship with BMW,” says Steven Durels, SL Green’s executive vice president and director of leasing. Known locally as the BMW Building, the project was built in 1973 and renovated in recent years to include new entrances and an outdoor plaza area, as well as modernized bathrooms and hallways. Situated between 10th and 11th avenues on Manhattan’s west wide, the office building is close to Columbus Circle, Lincoln Center and transportation hubs. Other notable tenants in the building include CBS Broadcasting Inc., City University of New York, Greater New York Hospital Association and Mt. Sinai/Beth Israel. Scott Panzer and Matt Rosen of JLL represented BMW in the …

October 29, 2019

Acquisitions California Industrial Northeast Pennsylvania Top Stories Western

Prologis to Acquire Liberty Property Trust in $12.6B All-Stock Deal

by Taylor Williams October 28, 2019

SAN FRANCISCO AND MALVERN, PA. — San Francisco-based Prologis Inc. has entered into a definitive agreement to acquire Pennsylvania-based Liberty Property Trust in an all-stock transaction valued at approximately $12.6 billion, inclusive of outstanding debt. The deal between the two industrial REITs is expected to close in the first quarter of 2020. Under the terms of the agreement, Prologis (NYSE: PLD) will acquire roughly 107 million square feet of stabilized logistics space, 5.1 million square feet of logistics product in various stages of development and 1,684 acres with a future build-out potential totaling 19.7 million square feet. In addition, Liberty (NYSE: LPT) shareholders will receive 0.675 in shares of Prologis common stock for each Liberty share they own. Both the board of directors of Prologis and the board of trustees of Liberty have unanimously approved the transaction. Prologis plans to dispose of $3.5 billion in assets, including $2.8 billion of non-strategic logistics properties and $700 million of office properties, to help finance the acquisition. “The joining of these two platforms at this moment, when industrial logistics has become so pivotal to the new economy, will further the industry’s ability to support the nation’s supply chain and enhance value creation for …

October 28, 2019

Development Georgia Hospitality Loans Mixed-Use Southeast Top Stories

Selig Enterprises Secures $340M Financing, Announces Hotel Brand at Mixed-Use Development in Midtown Atlanta

by Alex Patton October 25, 2019

ATLANTA — Selig Enterprises has secured $340 million in construction financing for 1105 West Peachtree, its three-tower, mixed-use development in Midtown Atlanta. The project will feature a 675,000-square-foot office tower, a 64-unit condominium tower, and a 178-room Epicurean Hotel. The towers will also house 25,000 square feet of ground-floor retail. The Blackstone Group Inc. provided the construction loan, partially financing the $530 million project. “We have been fortunate enough to already garner the attention of some prominent tenants in the market including the signing of Smith, Gambrell & Russell for five floors [of the office tower],” says Chris Ahrenkiel, executive vice president of Selig Development. “The preleasing activity allowed for strong finance and equity options and also warranted an increase in the building size to over 675,000 square feet — the single largest tower to start construction in Atlanta in more than a decade.” Selig is partnering with Mainsail Lodging & Development to build The Epicurean Atlanta hotel, which will operate under the Marriott Autograph Collection banner. The hotel will offer 178 rooms, a full-service culinary program, conference and event facilities, and an outdoor terrace on the ninth floor. 40 West 12th will offer condos ranging from $600,000 to $2.2 million, in …

October 25, 2019

Affordable Housing California Development Multifamily Top Stories Western

Facebook Commits $1B, Partners with State of California to Build 20,000 Affordable Housing Units

by Alex Tostado October 24, 2019

MENLO PARK, CALIF. — Facebook (NASDAQ: FB) has committed $1 billion and will partner with the State of California to build 20,000 affordable workforce- and low-income housing units over the next 10 years. Many of the units will serve first responders and teachers who can’t afford to live in the communities they serve, according to a press release from Facebook. According to David Wehner, CEO of Facebook, a family of four making $100,000 in San Francisco is considered low income. “The issue of affordable housing affects people across middle-class and low-income families alike,” says Wehner. Facebook will invest $1 billion over the next 10 years as follows: $250 million to a partnership with the State of California for mixed-income housing on excess state-owned land in communities where housing is scarce. $150 million for production of affordable housing, including housing for the homeless, in the San Francisco Bay Area. Facebook will contribute to the Bay’s Future Fund, the affordable housing investment fund of Partnership for the Bay’s Future, to work toward a more livable, equitable and racially and economically diverse Bay Area. $225 million in land in Menlo Park. This is land Facebook previously purchased, that is now zoned for housing, on which …

October 24, 2019

Loans New York Northeast Office Top Stories

SoftBank to Buy Majority Stake in WeWork with $8B Investment

by Kristin Harlow October 23, 2019

NEW YORK CITY — The We Co., parent company of coworking office space operator WeWork, and SoftBank Group Corp. have reached an agreement under which SoftBank will provide $5 billion in new financing and a tender offer of up to $3 billion for existing WeWork shareholders. SoftBank, a Japanese technology conglomerate, will also accelerate an existing commitment to fund $1.5 billion. WeWork chose the rescue offer from SoftBank over a competing proposal from JPMorgan Chase & Co. The announcement comes after well-documented concerns about the coworking giant’s cash flow and leadership. The company’s valuation plunged after it scrapped its initial public offering. WeWork founder Adam Neumann was forced out of his chief executive position after pushback from prospective investors. “It is not unusual for the world’s leading technology disruptors to experience growth challenges as the one WeWork just faced,” says Masayoshi Son, chairman and CEO of SoftBank. “Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support.” After closing and following the tender offer, SoftBank’s economic ownership stake in WeWork will be approximately 80 percent, up from about one-third currently. Since SoftBank will not hold a majority …

October 23, 2019

Company News Mixed-Use Texas Top Stories

Howard Hughes Corp. to Sell $2B in Real Estate Assets Following Leadership Changes, Headquarters Move

by John Nelson October 22, 2019

DALLAS — The Howard Hughes Corp. (NYSE: HHC), a mixed-use and residential real estate developer and operator with projects across the country, has announced a series of changes for the nine-year-old company. The Dallas-based firm plans to focus on its master-planned communities in Texas, Hawaii, New York, Maryland and Nevada and sell its non-core assets valued at roughly $2 billion over the next 12 to 18 months. HHC expects to net $600 million in cash proceeds from the sales. The Dallas Morning News reports that HHC will put several high-profile projects up for sale, including the Outlet Collection at Riverwalk in New Orleans, the Bridges of Mint Hill in Charlotte, Elk Grove in Sacramento and 110 North Wacker, a 56-story office tower under construction in Chicago. HHC says the office tower will deliver in October 2020 and is 69 percent preleased. HHC recently sold Cottonwood Mall in Salt Lake City for $56 million and plans to shop Monarch City, a 261-acre mixed-use project that the Allen City Council approved earlier this summer. Leadership change, HQ move Paul Layne, president of HHC’s Central region, is taking over as CEO effective immediately as David Weinreb and Grant Herlitz are stepping down from …

October 22, 2019

Leasing Activity Retail Top Stories

Hamilton Beach to Close All 160 Kitchen Collection Stores by End of 2019

by Taylor Williams October 21, 2019

GLEN ALLEN, VA. — Hamilton Beach Brands Holding Co. (NYSE: HBB) has announced that it will close all stores of its retail subsidiary, The Kitchen Collection, by the end of the year. Kitchen Collection employs approximately 800 people at 160 stores across 37 states. The company previously closed about 35 underperforming stores in an effort to maintain long-term profitability, but higher operating losses in the first half of 2019 have prompted Hamilton Beach Brands to shutter the chain entirely. “Despite our best efforts to return Kitchen Collection to profitability through footprint consolidation, further deterioration in foot traffic has lowered our outlook for the prospects of a future return to profitability and positive cash flow generation,” says Gregory Trepp, president and CEO of Hamilton Beach Brands Holding Co. Hilco Merchant Resources is handling the closing process for Kitchen Collection, which is now offering discounts and sales on a number of items like toasters, blenders and slow cookers. Conway MacKenzie is serving as financial advisor to the company. Hamilton Beach Brands is a designer, marketer and distributor of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, bars and hotels. Kitchen Collection is a national specialty …

October 21, 2019

Development Florida Industrial Southeast Top Stories

Bridge Development Partners to Build 1 MSF Spec Industrial Project Near Miami

by Alex Tostado October 18, 2019

HIALEAH, FLA. — Bridge Development Partners, an industrial development and investment firm with six offices across the country, has acquired land in Miami-Dade County’s Hialeah submarket for the construction of a 1 million-square-foot speculative industrial project. The new development will consist of four buildings ranging in size from 109,000 to 500,000 square feet. Construction is scheduled to begin during the first quarter of 2020 and to be complete by the first quarter of 2021. The property will be located within the AVE Aviation and Commerce Center, a master-planned development located about 10 miles from Miami International Airport and 30 miles from Fort Lauderdale-Hollywood International Airport. In addition, the property offers proximity to The Palmetto Expressway and Gratigny Parkway, which serve as connections to Interstates 95 and 75. Wayne Schuchts, Tom Viscount and Bobby Benton of Avison Young have been tapped to lease the project. Avison Young also represented the seller, AVE LLC, in the land acquisition. “Healthy economic growth, bustling port activity and positive demand continue to drive industrial investment and development activity in Miami’s land-constrained market,” said Benton. “We anticipate strong interest from a variety of large industrial users from logistics to e-commerce who will benefit from the location …

October 18, 2019

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