Top Stories

American Campus Communities Acquires 3,776-Bed Student Housing Portfolio for $590.6M

by Taylor Williams September 25, 2017

AUSTIN, TEXAS — American Campus Communities Inc. (NYSE: ACC) has acquired a portfolio of seven student housing properties totaling 3,776 beds across the Western and Midwestern United States for approximately $590.6 million. Affiliates of Milwaukee-based development firm and Core Spaces and Chicago-based DRW Real Estate Investments LLC sold the assets. All of the properties are associated with major universities, with enrollment averaging about 35,000 undergraduate and graduate students at each school. The company will invest about $8 million in up-front capital improvements to the portfolio. Two of the properties are stabilized: the 513-bed Hub Eugene and the 655-bed State, which service students at the University of Oregon and Colorado State University, respectively. The company acquired these assets in August for a combined $146.1 million. Another two of the properties, the 850-bed The James and the 248-bed Hub U District Seattle, are opening this fall. Those properties are located near the University of Wisconsin and the University of Washington, respectively. The final three properties, which total 1,500 beds, are all under construction and slated for fall 2018 delivery. They include Hub Ann Arbor, Hub West Lafayette and Hub Flagstaff, which offer housing to students attending the University of Michigan, Purdue University …

September 25, 2017

Hospitality Illinois Midwest Top Stories

NKF Arranges $74.8M Loan to Reposition Chicago’s Hard Rock Hotel

by Kristin Harlow September 22, 2017

CHICAGO — Newmark Knight Frank (NKF) has arranged a $74.8 million loan for the repositioning of the Hard Rock Hotel located at 230 N. Michigan Ave. in Chicago. Property owner Becker Ventures and manager Aparium Hotel Group plan to reposition the property as the St. Jane Chicago hotel following the closing of the Hard Rock Hotel on Dec.1. The newly branded property is scheduled to reopen in spring 2018. The new name is a nod to social worker Jane Addams, who co-founded Chicago’s Hull House in 1889. The settlement house opened to European immigrants and provided social and educational programs. Built in 1929 and designed by the Burnham Brothers, the historic Carbide & Carbon building features 37 stories. Renovations will consist of updated interiors with the addition of a rooftop bar and lounge, full-service restaurant, market café, cocktail bar and 11,000 square feet of meeting and event space. In addition to 363 guest rooms, St. Jane Chicago will feature luxury suites on floors 25 and above known as The Tower at St. Jane. A reason for the repositioning was not provided, but Crain’s Chicago Business reports that competition in the neighborhood was the catalyst for the makeover. Ben Greazel of …

September 22, 2017

Features Multifamily Texas Texas & Oklahoma Feature Archive Top Stories

InterFace Panel: Property Taxes, Public Transit Among Chief Concerns for DFW Multifamily Market

by Taylor Williams September 22, 2017

DALLAS — With roughly 10,000 new residents moving into the metro area every month and more than 100,000 jobs already created in 2017, the Dallas-Fort Worth (DFW) metroplex appears poised to handle any challenges thrown at its multifamily sector. These obstacles include absorbing the 35,000 or so multifamily units expected to come on line in 2018, maintaining positive rent growth of 3 to 4 percent and navigating a constricting labor market to ensure new projects stay on schedule. For the real estate professionals who spoke on these issues at the InterFace Multifamily Texas conference on Sept. 13 at the Westin Galleria hotel in Dallas, there wasn’t much dissension as to whether the market can handle these tasks. The bigger question among the panelists was what, if anything, could crash the party. Moderator Rob Key, senior vice president at HFF, invited the four panelists — all of whom work for DFW-based firms that offer investment platforms — to share their insights on what they believe is the single-biggest threat to the continued growth and prosperity of DFW’s multifamily market. Kim Radaker, managing principal of The Exponential Property Group of Cos., identified rising property taxes stemming from higher sales prices as her biggest …

September 22, 2017

Michigan Midwest Mixed-Use Top Stories

Bedrock Plans $2.1B in Developments in Downtown Detroit Totaling 3.2 MSF

by John Nelson September 21, 2017

DETROIT — Bedrock, Dan Gilbert’s Detroit-based commercial real estate development and investment firm, has unveiled a package of four developments totaling $2.1 billion in new investment that will add to Detroit’s skyline. Totaling 3.2 million square feet, Bedrock expects to create both construction and permanent jobs totaling up to 24,000. “Detroit is going vertical,” says Gilbert, who also founded Quicken Loans Inc. and owns the Cleveland Cavaliers of the National Basketball Association. “In fact, that is the only way to create any type of significant expansion in the city because we are virtually at full occupancy for residential and commercial space in both downtown and midtown.” Gilbert adds that “transformational” projects like these are necessary to both accommodate the expansion of current downtown businesses and make Detroit a legitimate competitor for new businesses and massive opportunities, including Amazon’s HQ2. Gilbert, Detroit Mayor Mike Duggan and other elected officials and community members gathered at the historic Book Tower to unveil the following projects: The Hudson’s Site — The approximately $900 million, 1 million square-foot redevelopment of the old Hudson’s site will include the tallest tower in Detroit. Crain’s Detroit Business reports that the building will rise 80 stories, which would top …

September 21, 2017

Features Top Stories

Autonomous Vehicles Drive New Era of Transformation in Real Estate Development

by Camren Skelton September 21, 2017

Although autonomous vehicles are not yet a common sight on today’s roadways, land-use planners, developers and other real estate professionals are already preparing for its potentially vast impact on the real estate environment, according to BBG, a Dallas-based commercial real estate valuation, advisory and assessment firm. Recent announcements have put autonomous vehicles on the radar. On Monday, Sept. 18, Intel announced it is working with Waymo, the Alphabet-owned self-driving car company, to help its vehicles reach levels four and five autonomy, or high automation and full automation, respectively. And the technology is progressing rapidly. “Given the pace at which autonomous driving is coming to life, I fully expect my children’s children will never have to drive a car,” wrote Intel Corp. CEO Brian Krzanich in a blog post announcing the news. “That’s an astounding thought. Something almost 90 percent of Americans do every day will end within a generation.” His insights come in the wake of other major events, including General Motors’ announcement that it can begin manufacturing autonomous vehicles for mass production pending regulatory approvals. Following the likes of companies like Tesla and Google, the company is working to turn self-driving vehicles from something out of a movie into …

September 21, 2017

North Carolina Office Southeast Top Stories

Starwood, Trinity Capital, Vanderbilt Partners Sell Raleigh-Durham Office Portfolio for $105.5M

by Nellie Day September 20, 2017

RALEIGH AND DURHAM, N.C. — A joint venture between Starwood Capital Group, Trinity Capital Advisors and Vanderbilt Partners has sold a seven-property office portfolio in Raleigh-Durham to an institutional investor for $105.5 million. The portfolio contains a total of 581,619 square feet within the Perimeter Park business park. The properties are located at 1500, 1600, 1700, 1800, 2000 and 2250 Perimeter Park and 3800 Paramount Parkway within the Research Triangle Park submarket of Raleigh-Durham. The portfolio is situated near Interstates 540 and 40, with access to Cary, West Raleigh and North Raleigh, as well as access to the Raleigh-Durham International Airport and Research Triangle Park. The portfolio was built in the 1990s and early 2000s. It is approximately 91 percent leased to tenants like QuintilesIMS, AECOM, TrialCard, UNC Physicians Network and Beacon Health Options. “This transaction demonstrates the strong appeal and growing appetite from institutional investors for well-positioned office investment opportunities in Raleigh-Durham and throughout the overall Carolinas market,” says HFF’s Ryan Clutter who, along with Scot Humphrey and Chris Lingerfelt, represented the sellers in this transaction. “Suburban office has proven to be a more challenging asset class to sell in many markets around the country, yet the Carolinas continue …

September 20, 2017

Company News New Jersey Northeast Retail Top Stories

Toys ‘R’ Us Files for Chapter 11 Bankruptcy Protection

by Katie Sloan September 19, 2017

WAYNE, N.J. — Toys ”R” Us Inc. filed for Chapter 11 bankruptcy protection on Monday, Sept. 18. The company’s Canadian subsidiary also plans to seek protection in parallel proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. No store closings have yet been announced in conjunction with the filing. The Wayne, N.J.-based toy retailer’s approximately 1,600 Toys ”R” Us and Babies ”R” Us locations will continue to operate through at least the holiday season. Customers may also continue to shop on the company’s newly launched web stores. “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide,” says Dave Brandon, chairman and CEO of Toys ”R” Us Inc. The company’s debt largely stems from a $6.6 billion buyout in 2005 led by KKR & Co. LP, Bain Capital LP and Vornado Realty Trust. Toys ”R” Us has …

September 19, 2017

Conference Coverage Features Healthcare Top Stories

Stability, Yield Drive Healthcare Real Estate Investment Activity, Say InterFace Panelists

by Camren Skelton September 19, 2017

DALLAS — Investor demand for healthcare properties throughout the country is soaring, driven by the recession-resistant nature of the asset class and its ability to consistently generate strong returns. Confidence in the property type also stems from the prevailing realization that legislation opposing the Affordable Care Act (ACA) has thus far been unsuccessful. After multiple failed attempts to repeal and revise the law, the Republican Party introduced a bill today that aims to cut overall funding for healthcare and give states more control over their individual healthcare budgets. Other demand drivers for the healthcare sector include a growing number of aging Americans, the tendency of healthcare tenants to sign long-term leases and an expectation that government spending on healthcare, as a percentage of gross domestic product (GDP), is set to rise above its current level of 15 percent. It all adds up to a remarkably healthy flow of capital into the healthcare sector from institutional, private and foreign investors alike. Five healthcare real estate panelists at last week’s InterFace Healthcare Real Estate conference discussed a variety of topics within the healthcare investment market, including the profiles of the investors, the pressures they face to deploy their capital in a timely …

September 19, 2017

Multifamily New Jersey Northeast Top Stories

Kushner Acquires 1,032-Unit Apartment Community Near Princeton for $190M

by Taylor Williams September 18, 2017

PLAINSBORO, N.J. — New York-based development and management firm Kushner has acquired Quail Ridge Apartments, a 1,032-unit multifamily community located in Plainsboro, roughly midway between Philadelphia and New York City, for $190 million. The garden-style property is situated on 52 acres at 2005 Quail Ridge Drive, approximately six miles from Princeton University. Amenities include two pools, basketball and tennis courts, a playground, 24-hour fitness center and an on-site dog park. American International Group Inc. (AIG) provided acquisition financing for the transaction. The sale is in line with Kushner’s larger strategy of acquiring multifamily properties with high investment potential. Most recently, Kushner closed on the $520 million purchase of a portfolio of 5,517 multifamily units in Maryland. The company says it will continue to target similar investment opportunities throughout the Northeast and Mid-Atlantic areas. “Quail Ridge presents an outstanding opportunity to continue the expansion of our multifamily portfolio while helping to improve an already-great community,” says Laurent Morali, president of Kushner. “It reflects our strategy of vigorously pursuing investment where we see significant value.” Kushner’s recent acquisition activity also includes The Watchtower, an 830,000-square-foot property in Brooklyn that it plans to convert into a corporate campus, as well as 203,000 square …

September 18, 2017

Loans Maryland Mixed-Use Southeast Top Stories

Goldman Sachs Provides $233M Private Equity Investment for Mixed-Use Redevelopment in Baltimore

by Kristin Harlow September 15, 2017

BALTIMORE — Goldman Sachs has committed $233 million to the Port Covington redevelopment project in Baltimore. This is the largest single private equity investment made by the firm’s Urban Investment Group (UIG) to date, according to a Port Covington news release. Port Covington is a 235-acre mixed-use redevelopment located on Baltimore’s waterfront adjacent to I-95. At completion, the 25-year project will include up to 18 million square feet of retail, entertainment, office, hotel and residential space. In addition, the project will encompass 2.5 miles of restored waterfront and 40 acres of parks and green space. Sagamore Development Co. and the UIG have entered into an agreement to jointly own the project and develop the infrastructure in Port Covington. Marc Weller of Sagamore Development will lead the infrastructure development team. The joint venture will own and develop the land in Port Covington that is adjacent to the campus of the future global headquarters of Under Armour. The footwear and sports apparel company owns 50 acres of Port Covington land, and is not involved in this transaction. Other businesses with land parcels in Port Covington that are not part of the joint undertaking include City Garage, Nick’s Fish House, Sagamore Spirit Distillery …

September 15, 2017

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