Top Stories

Percentage of U.S. Adults Who Prefer In-Store Shopping Versus Online Is On the Rise, Says Coldwell Banker Commercial Survey

by Camren Skelton November 14, 2017

MADISON, N.J. — Although the retail landscape has faced disruption in recent years, nearly half of U.S. adults prefer to make purchases in-store rather than online, according to a new survey conducted by Madison-based Coldwell Banker Commercial Affiliates. “Despite doomsday headlines about the retail industry and how e-commerce has taken over, our survey has found that Americans still enjoy and remain loyal to in-store shopping, regardless of the retail climate,” says Fred Schmidt, president and COO of Coldwell Banker Commercial Affiliates. Working on behalf of Coldwell Banker, Harris Poll surveyed 2,001 adults from Aug. 15-17 as part of an online study. The participating cohorts included 194 younger Millennials (age 18-29), 160 older Millennials (age 30-34), 479 Gen Xers (age 35-49) and 884 Baby Boomers (age 50-69), to reveal Americans’ shopping preferences and determine the steps retailers can take to remain relevant in today’s competitive retail industry. Overall, the survey found that 47 percent of U.S. adults prefer to shop in-store rather than online. More than half of Baby Boomers (51 percent) prefer the in-store experience, followed by younger Millennials (50 percent), Gen Xers (42 percent) and older Millennials (27 percent). When asked a similar question in 2016, 43 percent of …

November 14, 2017

Illinois Midwest Retail Top Stories

Brookfield Property Partners Submits Unsolicited Proposal to Acquire GGP for $14.8B

by Kristin Harlow November 13, 2017

CHICAGO — Brookfield Property Partners LP (NYSE: BPY) has made an unsolicited proposal to acquire GGP Inc. (NYSE: GGP) for $14.8 billion. The offer is made up of $7.4 billion in direct share purchases at $23 per share, as well as $7.4 billion in shares in the combined company post-acquisition. Brookfield already owns approximately 34 percent of GGP. Existing GGP shareholders would own approximately 30 percent of the combined company. The transaction is subject to the negotiation and execution of transaction documents, as well as customary approvals. Citigroup Global Markets Inc. is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to GGP. The transaction would boost BPY’s portfolio to almost $100 billion of real estate assets globally and an annual net operating income of approximately $5 billion, according to BPY. “Brookfield’s access to large-scale capital and deep operating expertise across multiple real estate sectors combined with GGP’s high-quality retail asset base will allow us to maximize the value of these irreplaceable assets,” says Brian Kingston, CEO of Brookfield Property Group. “We are excited about the opportunity to leverage our expertise to grow, transform or reposition GGP’s shopping centers, creating long-term value in a way that would …

November 13, 2017

New York Northeast Office Top Stories

New York REIT to Sell 346,728 SF Office Building in Manhattan for $255M

by Kristin Harlow November 10, 2017

NEW YORK CITY — New York REIT Inc. (NYSE: NYRT) has agreed to sell a 346,728-square-foot office building in Midtown Manhattan for $255 million. The 10-story property is located at 333 W. 34th St. between the Herald Square and Hudson Yards submarkets. The building is fully leased to four tenants including the Metropolitan Transportation Authority, The Segal Co., Godiva Chocolatier and Sam Ash. Over the last 15 years, the building has received over $25 million in capital improvements, according to NYRT. Real estate funds managed by Brookfield Asset Management will acquire the property. The closing is expected to occur prior to year’s-end. NYRT acquired the office building from SL Green for $220 million in 2013, according to Crain’s New York Business. NYRT is a publicly traded real estate investment trust that owns office and retail properties in New York City. NYRT’s shareholders recently adopted a plan of liquidation in which the REIT is seeking to sell its assets. The liquidation process is expected to be completed by the end of the first quarter of 2018, according to NYRT. At the time of its decision to liquidate, the company was under pressure to grow shareholder value. NYRT’s stock price closed on …

November 10, 2017

Mixed-Use Northeast Pennsylvania Top Stories

Brandywine Realty, Drexel University Break Ground on Phase I of $3.5B Schuylkill Yards Project in Philadelphia

by John Nelson November 9, 2017

PHILADELPHIA — Brandywine Realty Trust (NYSE: BDN), in partnership with Drexel University, has broken ground on Phase I of the mixed-use, master-planned Schuylkill Yards Innovation Community in West Philadelphia’s University City district. The first phase of the $3.5 billion development will include a 1.3-acre community park at the corner of 30th and Market streets known as Drexel Square, which will be situated directly across from Amtrak’s 30th Street Station. Other components of Phase I include 4.6 acres of entrepreneurial space, educational facilities, research laboratories, corporate offices, residential and retail spaces, hotels and open public spaces. SHoP Architects and West 8 Landscape Architects designed Drexel Square, which represents the first swath of the 6.5 acres of green space planned for Schuylkill Yards. Brandywine and Drexel plan to deliver Drexel Square by the fourth quarter of 2018. “We are proud that our first project in Schuylkill Yards will deliver a green public gathering space where the community can connect, interact and share experiences,” says Jerry Sweeney, president and CEO of Philadelphia-based Brandywine Realty Trust. Later phases of Schuylkill Yards will include the redevelopment of the former Bulletin Building, and the development of two towers at 3003 and 3025 JFK Blvd. In conjunction …

November 9, 2017

Features Industrial Net Lease Office Retail Top Stories

Report: Net Lease Investment Market Heats Up During Third Quarter

by Taylor Williams November 9, 2017

TULSA, OKLA. — Sales of net leased properties settled in at nearly $11.4 billion during the third quarter of 2017, up 15 percent over the average for the past five third quarters ($10 billion), according to a recent report from Stan Johnson Company, a national brokerage and advisory firm specializing in net leased assets. The report tracks net leased properties across the office, industrial and retail real estate sectors. “This was the largest third-quarter move in six years and represents resilience in the net lease sector,” says John Zimmerman, director of Tulsa-based Stan Johnson Company. “We may be on our way to another record sales year.” The total is the highest quarterly sales volume in the past 12 months and follows a lackluster second quarter that saw investment sales volume drop more than 20 percent below the average for the past five second quarters. Growth occurred across all net lease sectors, with office, industrial and retail increasing 35 percent, 43 percent and 55 percent, respectively. The results were overwhelmingly driven by growth in the sheer number of transactions — more than 750 — as opposed to the amount of the assets traded. “In recent years, a lot of the growth …

November 9, 2017

Loans New York Northeast Office Top Stories

Cove Property Group Obtains $479M in Construction Financing for 25-Story Office Tower in Manhattan

by Nellie Day November 8, 2017

NEW YORK CITY — Cove Property Group and an institutional partner have received $479 million in construction financing for Hudson Commons, a 701,364-square-foot trophy office building in the Hudson Yards/Penn Plaza submarket of Manhattan. The 25-story building is located at 441 Ninth Ave. between 34th and 35th streets. Hudson Commons will comprise a 17-story structure atop an existing eight-story building. The development will feature 14 private terraces and balconies and onsite basement parking for up to 140 vehicles. The design will incorporate varied floor plans with high ceilings, as well as sustainable elements, such as terraces and green roofs. Kohn Pedersen Fox is designing Hudson Commons. The new building will be equidistant between Penn Station and the new 7 Train extension that services Hudson Yards. It will also feature access to the Port Authority and Lincoln Tunnel. Cove Property Group purchased the asset in December 2016 for $330 million. EmblemHealth had owned the existing 423,000-square-foot building since 1994. The structure was originally built as a warehouse in 1962 before it was converted to office space in 1983. Loan proceeds will reposition and redevelop the asset into a Class A office tower with full-block frontage along Ninth Avenue. The project is …

November 8, 2017

Florida Multifamily Seniors Housing Southeast Top Stories

Griffin-American Healthcare REIT IV Acquires Nine-Property Seniors Housing Portfolio in Central Florida for $110M

by Katie Sloan November 7, 2017

TAMPA AND ORLANDO, FLA. — Griffin-American Healthcare REIT IV Inc., co-sponsored by American Healthcare Investors and Griffin Capital Co. LLC, has acquired a nine-property seniors housing portfolio totaling 1,140 units in Central Florida. The properties are located in cities throughout greater Tampa and Orlando. Acquisitions include Spring Haven Retirement in Winter Haven; Lake Morton Plaza in Lakeland; Renaissance Retirement in Sanford; Forest Oaks in Spring Hill; Bayside Terrace in Pinellas Park; Balmoral Assisted Living in Lake Placid; Bradenton Oaks in Bradenton; and The Grande and Spring Oaks, both located in Brooksville. The portfolio contains 814,000 square feet of assisted living, independent living and memory care space and has an aggregate occupancy rate of approximately 84 percent. The properties have undergone renovations by the former owner, New Senior Investment Group, over the course of the last three years. The acquisition was completed via a joint venture with an affiliate of Meridian Senior Living LLC, which will manage the portfolio on a day-to-day basis. Griffin-American Healthcare owns approximately 98 percent of the joint venture. “The addition of the Central Florida seniors housing portfolio provides the REIT with a significant footprint in Florida amidst a large and aging population that is increasingly likely to transition to senior …

November 7, 2017

Features Top Stories

Economists: Job Growth Strong, But Expect Slow Wage Growth as Inflation, Labor Participation Remain Low

by Taylor Williams November 7, 2017

The U.S. economy added 261,000 new jobs in October, its highest monthly total of 2017, according to the latest report from the U.S. Bureau of Labor Statistics (BLS). The revised numbers suggest that the U.S. economy has recovered well from hurricanes Harvey and Irma, as evidenced by strong growth in the construction and leisure and hospitality sectors. In addition, the overall unemployment rate dropped to 4.1 percent, down 70 basis points from 4.8 percent at the beginning of the year. However, overall labor participation rate continues to dwindle, driven by a growing number of retirees and misalignments between employees’ skill sets and employers’ demands, according to economists. All of these forces — plus low inflation — point to sluggish wage growth, which has only increased by 2.4 percent during the 12-month period ending in November 2017. REBusinessOnline contacted three economists to get their takes on what these factors mean for the overall jobs market on both individual and collective levels: Ryan Severino, JLL’s chief economist; Steve Hovland, HomeUnion’s director of research; and Ken McCarthy, Cushman & Wakefield’s principal economist. Their edited responses are as follows: ReBusinessOnline: Economists polled by MarketWatch expected the U.S. economy to generate a net gain of …

November 7, 2017

New York Northeast Office Top Stories

Moinian Group Breaks Ground on 2 MSF Office Tower Within Manhattan’s Hudson Yards District

by Taylor Williams November 6, 2017

NEW YORK — The Moinian Group has broken ground on 3 Hudson Boulevard, a planned 53-story, 2 million-square-foot office tower located within the 60-acre Hudson Yards district on Manhattan’s far west side. The New York-based developer, which owns, manages and has in development more than 4 million square feet of commercial and residential real estate holdings throughout Manhattan, expects to deliver the Class A building by 2021. The property will occupy an entire block between 11th Avenue and Hudson Boulevard Park from West 34th to West 35th streets. The building offers convenient access to the No. 7 subway extension. The Metropolitan Transit Authority (MTA) recently completed infrastructural work on that site, opening the door for construction to begin. Designed by Dan Kaplan of architecture firm FXFOWLE, the property will feature a multi-tiered lobby anchored by 50,000-square-foot floorplates, as well as 12,600 square feet of retail space with multiple entrances. Individual floors within the building will average about 40,000 square feet each, and feature 10-foot ceiling heights, 5-foot window modules and column-free corners that allow for more open spaces. Floor-to-ceiling glass arrangements will provide for ample natural light throughout the building. The rooftop will offer an entertainment space, outdoor terrace and …

November 6, 2017

Illinois Michigan Midwest Multifamily Top Stories

CCA Sells Three Apartment Properties in Illinois, Michigan for $125M

by Kristin Harlow November 3, 2017

ANN ARBOR, MICH., PALATINE, ILL., AND HOFFMAN ESTATES, ILL. — City Club Apartments (CCA) has sold three apartment properties in Illinois and Michigan for $125 million. The properties include Village Park of Ann Arbor, Village Park of Palatine and Village Park of Hoffman Estates in Illinois. The buyers were not disclosed. Village Park of Ann Arbor consists of 520 units and is located adjacent to U.S. Route 23 near The University of Michigan. Village Park of Palatine consists of 448 units and is located in the northwest suburb of Chicago. The 221-unit Village of Hoffman Estates is also located northwest of Chicago. These three communities no longer fit the vision of the company, which has shifted to developing and managing midrise, high-rise and historic mixed-use apartment and penthouse communities, according to CEO Jonathan Holtzman. Prior to launching CCA in early 2016, Holtzman served as chairman, CEO and 50 percent owner of Village Green Holdings. CCA began transferring the management of its entire portfolio from Village Green to City Club management in June of this year. With offices in Detroit, Chicago and Toronto, CCA has a portfolio of approximately 10,000 apartments in 30 communities, $2 billion in real estate assets and …

November 3, 2017

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