Top Stories

QIC to Acquire Forest City’s Interest in Regional Mall Portfolio for $1.55B

by John Nelson October 4, 2017

BRISBANE, AUSTRALIA AND CLEVELAND — QIC, an Australian institutional investment management firm, has agreed to purchase Forest City Realty Trust Inc.’s (NYSE: FCE.A) interest in a 10-property regional mall portfolio. The overall transaction values the portfolio at approximately $3.18 billion, or $1.55 billion for Forest City’s share. The assets include: The Shops at Northfield Stapleton in Denver; Westchester’s Ridge Hill in Yonkers, N.Y.; The Shops at Wiregrass in Tampa, Fla.; Mall at Robinson in Pittsburgh; Antelope Valley Mall in Palmdale, Calif.; South Bay Galleria in Redondo Beach, Calif.; Victoria Gardens in Rancho Cucamonga, Calif.; Galleria at Sunset in Henderson, Nev.; Promenade Temecula in Temecula, Calif.; and Short Pump Town Centre in Richmond, Va. One additional mall, Charleston Town Center in Charleston, W.Va,, was originally part of the negotiations, but QIC subsequently made the decision not to acquire Forest City’s ownership interest. “This transaction is a win-win for all parties, as we continue to focus our business on urban residential, office and mixed-use assets, and QIC acquires full ownership of a U.S. retail presence with high-quality regional malls in strong markets,” says David LaRue, president and CEO of Forest City. Forest City provided $150 million of seller financing to QIC for a …

October 4, 2017

California Office Top Stories Western

CBRE Global Investors Acquires 940,564 SF Office Campus in Silicon Valley on Behalf of JV

by Katie Sloan October 3, 2017

SANTA CLARA, CALIF. — CBRE Global Investors has acquired The Campus @ 3333 – Phase III, a 940,564-square-foot, four-building office campus located at 3333 Scott Blvd. in Santa Clara. Situated within the prestigious Silicon Valley district, the property was acquired on behalf of a joint venture between Korea Post and another undisclosed client. The sales price and seller were undisclosed, but media outlets are reporting that Menlo Equities and Beacon Capital Partners, co-developers of The Campus, sold Phase III for $610 million. The newly constructed LEED Silver-certified campus is fully leased to Palo Alto Networks, a cybersecurity firm, and serves as its headquarters. The property features a dedicated 30,485-square-foot amenity building with a full-service cafeteria, conference center, outdoor amphitheater, dedicated open space, outdoor dining and collaborative meeting space, 200 electric vehicle charging stations, bicycle storage, a grass picnic area and access to a fitness center. “The San Jose market has experienced broad-based growth primarily driven by the rapid and sustained technology boom in Silicon Valley,” says Gardner Ellner, senior director of Commercial Acquisitions-Americas at CBRE. “As a result, vacancy rates have dramatically declined to the lowest levels since 2000, and tenants are actively moving to submarkets such as Santa Clara …

October 3, 2017

Features Top Stories

How Big Data, Mobility Impact Property Values

by Kristin Harlow October 3, 2017

Without a shot fired, the Mobility Revolution has begun. Big Data, smart transportation and new mobility technology are affecting property owners and communities in myriad ways. Projecting the effects of these changes on future property values is difficult, but a look at recent innovations suggests where we are headed. Many property investors associate the Mobility Revolution strictly with driverless, interconnected autonomous cars. This view misses the larger, unfolding disruption story. Indeed, the shift is transforming the transportation of goods and people. Paraphrasing former U.S. Transportation Secretary Anthony Foxx, “smart transportation” is not about concrete and steel alone; it’s about how people want to live. Mobility is more than a transportation issue. It involves the digital marketplace that now competes with retail real estate, with growing implications for retail property values. Offices offering shorter and alternative commuting options to workers are more valuable than those that don’t. Mobility also involves ride-sharing services and the personal choices we make to get from one place to another. Deloitte researchers wrote in 2015 that change is coming to transportation whether we’re ready for it or not. “You can see it in public-sector investment, intelligent streets and digital railways, automakers’ focus on next-generation vehicles and …

October 3, 2017

Retail Top Stories

ShopOne Launches New REIT With 46 Assets Across Eight States

by Camren Skelton October 2, 2017

NEW YORK CITY — ShopOne Centers REIT Inc. has launched a new shopping center ownership entity under the leadership of retail real estate veteran Michael Carroll. The private real estate investment trust will focus on acquiring, operating and managing grocery-anchored shopping centers in dense, geographically diverse areas. Davidson Kempner Capital Management LP owns a majority of ShopOne’s equity. “We have a really good capital partner in Davidson Kempner, which has been an active investor in the space from both the debt and asset level,” says Carroll, who serves as CEO of ShopOne. Carroll is the former CEO of Brixmor Property Group. “We are the first platform/portfolio company investment that Davidson Kempner has made.” ShopOne is entering the retail sector with a portfolio of 46 shopping centers spread across eight states, including more than 4.7 million square feet of gross leasable space, the majority of which were acquired from Devonshire REIT Inc. “There were properties that were housed in the operating partnership of Devonshire, and we bought that operating partnership,” says Carroll. “There are Devonshire entities out there that still have a business, but we have migrated the assets that were in their operating partnership into a new entity under the ShopOne banner.” …

October 2, 2017

District of Columbia Mixed-Use Southeast Top Stories

Madison Marquette, PN Hoffman to Open Phase I of $2.3B Mixed-Use Project in Washington, D.C.

by Kristin Harlow September 29, 2017

WASHINGTON, D.C. — Co-developers Madison Marquette and PN Hoffman will open The Wharf on Oct. 12 in Washington, D.C. Phase I of the $2.3 billion project will deliver two office buildings, two apartment towers, two luxury condominium buildings and three hotels, as well as restaurants and retail space. The Wharf is a mixed-use waterfront community that stretches across 24 acres of land and more than 50 acres of water. The development features 3.5 million square feet of new residential, office, hotel, retail, marina and public uses including waterfront parks, promenades, piers and docks. Madison Marquette and PN Hoffman broke ground on the project in March 2014. Phase II construction will begin in the coming months, with delivery scheduled for 2021. Four entertainment piers extend into the Potomac River, one of which will be used as an ice rink in the winter. The Transit Pier will accommodate water taxis. Anthem, a 6,000-seat concert hall, will open with a launch concert by the Foo Fighters. David Rockwell designed the interiors of the venue. Washington, D.C.-based Madison Marquette is a private real estate investment manager, developer, operator and service provider. PN Hoffman is a real estate developer also based in D.C. — Kristin …

September 29, 2017

California Retail Top Stories Western

Westfield to Open $1B Westfield Century City Redevelopment in Los Angeles on Tuesday

by John Nelson September 28, 2017

LOS ANGELES — Westfield Corp., a mixed-use developer based in Sydney, Australia, is opening its $1 billion redevelopment of Westfield Century City mall in the Century City district of Los Angeles on Tuesday, Oct. 3. Westfield expects the open-air development to have the majority of its more than 200 shops and restaurants open for the event, including a new three-level Nordstrom. The 1.3 million-square-foot development will also feature a remodeled, three-level Bloomingdale’s, a new two-level Macy’s and an Equinox fitness club and spa. The center’s new and existing dining options include Bibigo, California Pizza Kitchen, Chick-fil-A, Chipotle, Everytable, Lifehouse Tonics + Elixirs, Panda Express, Randy’s Donuts, See’s Candies, Shake Shack, Wexler’s Deli and the West Coast’s first Eataly, an Italian market concept that will open later in the month. Eataly will feature multiple restaurants, food and beverage counters, retail items and cooking classes. In addition to the department store anchors and existing AMC movie theater, new and existing retailers include Apple Store, Banana Republic, Disney Store, J. Crew, Kate Spade New York, Madewell, Microsoft, SUITSUPPLY, Tory Burch and Warby Parker. Westfield’s in-house design studio worked with Los Angeles-based designer Kelly Wearstler to redesign the project’s outdoor plazas, landscaped terraces and …

September 28, 2017

Features Multifamily Southeast Feature Archive Top Stories

Industry Growth Highlighted at NMHC Student Housing Conference

by Jeff Shaw September 28, 2017

TAMPA, FLA. — The National Multifamily Housing Council (NMHC) Student Housing Conference wrapped up Sept. 27 at the Marriott Waterside hotel, highlighting the industry’s productivity and progress in the second and third quarters, and providing a forecast for a strong fourth quarter. The tone of the conference was bolstered by Monday’s news that American Campus Communities (ACC), the industry’s largest owner, had purchased a 3,776-bed portfolio from Core Spaces and DRW Real Estate for $590.6 million, the largest transaction to date in 2017 in the sector. Also setting a strong tone was attendance of this year’s conference; more than 850 industry professionals, according to NMHC. The conference kicked off its educational sessions Monday afternoon with a panel featuring five industry leaders — Randy Churchey, CEO of EdR; Bill Bayless, CEO of ACC; Donna Preiss, CEO of The Preiss Company; Brian Dinerstein, CEO of The Dinerstein Company; and Wes Rogers, CEO of Landmark Properties. The panel, moderated by Peter Katz, executive managing director of Institutional Property Advisors, was very bullish on the sector as a whole. They emphasized that the increased sophistication of the sector is gaining the attention of the investment community. What’s more, the growth of the sector is …

September 28, 2017

California Multifamily Top Stories Western

Essex Apartment Homes Acquires 24-Story Mixed-Use Property in San Jose

by Nellie Day September 27, 2017

SAN JOSE, CALIF. — An affiliate of Essex Apartment Homes (NYSE: ESS) has purchased 360 Residences, a 24-story, mixed-use residential and retail tower in downtown San Jose. The purchase price was $133.5 million, according to Silicon Valley Business Journal. The mixed-use asset is located at 360 Market St., situated one mile from Google’s proposed office campus as well as the future downtown San Jose and Diridon BART stations. The transit-oriented property also provides access to Interstates 280, 680 and 880, U.S. Highway 101 and State Highway 87. 360 Residences was built in 2010. It features 213 ultra-luxury condominium units with high-end finishes and floor plans that average 1,320 square feet. Community amenities include a resort-style pool, fitness center, community lounge with chef’s kitchen, and executive business center with conference room and concierge services. The asset also contains 10,167 square feet of ground-floor retail that is fully leased. The seller, Capri Capital Partners LLC, purchased 360 Residences from Kennedy Wilson for $118 million in April 2012. HFF’s Scott Bales, Peter Yorck and Miles Kersten represented Capri in this transaction. San Mateo, Calif.-based Essex Apartment Homes is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops apartment communities …

September 27, 2017

Arizona Florida Multifamily Southeast Top Stories Western

Investcorp Acquires Six-Property Multifamily Portfolio in Florida, Arizona for $350M

by Katie Sloan September 26, 2017

ORLANDO, FLA., JACKSONVILLE, FLA., AND PHOENIX — The U.S. real estate investment arm of Investcorp has acquired six multifamily properties in Florida and Arizona for $350 million. Acquisitions include Highpoint Club and Montevista at Windermere, which together total 708 units in Orlando; Aqua Deerwood, a 616-unit, garden-style community located in the Southside neighborhood of Jacksonville; and Arcadia Cove, Tuscany Palms and Midtown on Main, which total 1,486 units in the Phoenix metropolitan area. The seller in the transaction was undisclosed. Highpoint Club and Montevista at Windermere in Orlando offer one- and two-bedroom units. Shared amenities at both properties include a resort-style pool with cabanas, state-of-the-art fitness center, internet café with coffee bar, dog park and clubhouse. Arcadia Cove, located in Phoenix, offers one-, two- and three-bedroom units. Tuscany Palms and Midtown on Main, located about 18 miles east of Phoenix in Mesa, offer a mix of one- and two-bedroom units. Shared amenities at each property include a resort-style pool and fitness center. “The U.S. multifamily market remains attractive for new investment opportunities,” says Herb Myers, managing director of real estate investment at Investcorp. “This recently acquired portfolio builds upon our strong track record of investing in multifamily properties in growth …

September 26, 2017

Features Multifamily Seniors Housing Top Stories

Seniors Housing Executives Predict Increased M&A Activity, According to Capital One Survey

by Jeff Shaw September 26, 2017

BETHESDA, MD. — Seniors housing executives have a generally optimistic view for mergers and acquisitions activity heading into the fourth quarter of 2017, according to a survey by Capital One. Approximately 89 percent of respondents believe M&A activity will maintain its current pace over the next year, with about half of those believing the pace will increase. Bethesda-based lender Capital One conducted the survey in early September 2017. It asked professionals to provide their 12-month outlook on a number of issues in the seniors housing and skilled nursing space. Respondents included 157 senior executives from healthcare companies, including pharmaceutical and medical technology companies, hospitals, healthcare service providers and health systems, as well as other industry participants. In another survey question, respondents were asked to name the greatest financial challenge facing the industry. Labor cost pressure was the top concern at 33 percent, with supply and demand imbalances following close behind at 32 percent. The regulatory and reimbursement environment was the next largest concern at 21 percent. Further fueling the sentiment that M&A activity will be a focal point for the industry, just four percent cited availability or cost of capital as their top financial challenge. “The uptick in acquisition interest …

September 26, 2017

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