Top Stories

Summit Hotel Properties Acquires Four-Hotel Portfolio for $164M

by Nellie Day November 29, 2017

AUSTIN, TEXAS — Summit Hotel Properties (NYSE: INN) has purchased a four-property hotel portfolio for $164 million. The portfolio contains a total of 652 guestrooms. The acquisition includes the 207-room Courtyard New Haven at Yale in New Haven, Conn.; the 148-room Hilton Garden Inn Boston/Waltham in Waltham, Mass.; the 175-room Residence Inn Cleveland Downtown in Cleveland; and the 122-room Homewood Suites by Hilton Tucson/St. Philip’s Plaza University in Tucson, Ariz. The Courtyard New Haven is situated adjacent to Yale University. It is the only Marriott-branded hotel within nearly 10 miles of downtown New Haven. The hotel underwent a renovation of all public spaces and guestrooms in 2016. The Hilton Garden Inn Boston/Waltham is centrally located along the Route 128/Interstate 95 corridor known as America’s Technology Highway. The hotel benefits from strong corporate demand with 16.4 million square feet of office space within three miles of the property and another 1 million square feet under construction. The recently renovated Residence Inn Cleveland Downtown is positioned within the Central Business District’s 9.5 million square feet of Class A office space, which includes the headquarters of Fortune 500 companies Sherwin-Williams, KeyCorp and Cliffs Natural Resources. The Homewood Suites by Hilton Tucson/St. Philip’s Plaza …

November 29, 2017

California Office Top Stories Western

KBS Strategic Opportunity REIT Sells 11-Property Office Portfolio to Singapore-Based Investor for $804M

by Katie Sloan November 28, 2017

NEWPORT BEACH, CALIF. — KBS Strategic Opportunity REIT Inc. has sold a portfolio of 11 office properties to various subsidiaries of Keppel-KBS US REIT, a newly formed Singapore-based REIT, for $804 million. “We believe that the Singapore transaction was an excellent opportunity to monetize these assets at attractive pricing and to utilize a substantial portion of the net proceeds to invest in new opportunistic investments, as well as current capital projects,” says Keith Hall, CEO and director of KBS Strategic Opportunity REIT. The portfolio of properties includes: 1800 West Loop, a 400,101-square-foot office tower in Houston. Westech 360, a 175,529-square-foot, four-building office park in Austin, Texas. Great Hills Plaza, a 139,252-square-foot, three-story office building in Austin. Westmoor Center, a 612,890-square-foot, six-building office campus in Westminster, Colo., 11 miles northwest of Denver. Iron Point Business Park, a five-building, 211,887-square-foot office park in Folsom, Calif. The Plaza Buildings, two office properties totaling 490,994 square feet in Bellevue, Wash., 10 miles outside Seattle. Bellevue Technology Center, a 330,508-square-foot, nine-building office campus located in Bellevue. Northridge Center I and II, two office buildings totaling 188,509 square feet in Atlanta. West Loop I and II, a 313,873-square-foot, multi-tenant office complex in the Bellaire submarket of Houston. Powers …

November 28, 2017

Features Multifamily Top Stories

The ‘Three Cs’ of Property Management: Communication, Connection and Comradery

by Kristin Harlow November 28, 2017

Being part of a community is an important factor when renters choose a building to call home. According to a National Apartment Association’s report entitled “Adding Value in the Age of Amenities Wars,” a sense of community is what’s behind five of the top 10 amenities added or upgraded in apartments since 2014. Including clubhouses, common areas for socializing and fitness and business centers — the community aspect of apartment living is a huge draw. As property managers, we are constantly challenged to ‘Keep up with the Joneses’ when it comes to offering the latest and greatest amenities. So much so that figuring out how to creatively “add” space to make room for new amenities when updating older buildings has become a top priority. However, while extensive amenities are considered basic requirements for today’s renters, it doesn’t matter how great the amenities are if the building doesn’t have a heart and soul that resonates with residents. To foster that sense of community, there are three best practices in property management to keep in mind: communication, connection and comradery. Make Communication Easy Technology has provided residents the ability to communicate with property management at their convenience. Gone are the days of …

November 28, 2017

Retail Top Stories

ICSC Report: Brick-and-Mortar Retailers Capture 75 Percent of Thanksgiving Sales

by Taylor Williams November 27, 2017

NEW YORK — Retailers with a brick-and-mortar presence captured approximately 75 percent of all sales transacted over Thanksgiving weekend 2017, according to a report by the International Council of Shopping Centers (ICSC) released Monday, Nov. 27. Combined, online and brick-and-mortar retail sales during Thanksgiving and Black Friday clocked in just shy of $8 billion, an 18 percent increase over the same two-day period in 2016, according to Adobe Analytics, which measures transactions of the 100 largest American web retailers. On Black Friday itself, online sales eclipsed $ 5 billion, up from $3.34 billion in 2016. The ICSC report found that over the course of the weekend, more than 145 million Americans shopped at malls and shopping centers — 105 million on Black Friday alone — where they spent an average of $377.50 per shopper. Approximately one-quarter of the average shopper’s total expenditure went to dining and other experiences. All told, consumers spent an average of $78.70 per head at dining and entertainment destinations in association with Black Friday 2017. “Shopping centers across the country should feel very optimistic about the season ahead,” says Tom McGee, president and CEO of ICSC. “What we are seeing over the course of the year, and …

November 27, 2017

California Office Top Stories Western

DreamWorks Animation’s Headquarters, Studio Campus in Los Angeles Sells for $290M

by Nellie Day November 22, 2017

LOS ANGELES — LA Hana OW LLC has acquired DreamWorks Animation’s headquarters and studio campus, a 460,000-square-foot creative office campus in the Los Angeles submarket of Glendale, for $290 million. The five-building campus is located at 1000 Flower St. The property is fully leased on a triple-net basis to DreamWorks Animation SKG, a wholly owned subsidiary of Comcast Corp., through 2035. The Mediterranean-style campus features landscaped courtyards, a manmade river, library, fitness center and screening room, among other amenities. The campus was built on 15 acres in 1997. LA Hana OW, an entity of Hana Asset Management and OceanWest, plans to hold the property long-term. The buyer represented itself in the transaction, while NKF’s Kevin Shannon, Ken White and Laura Stumm represented the seller, The GC Net Lease Investors LLC. GC Net Lease is an entity of Griffin Capital Co., which acquired the property in July 2015 for $215 million. Comcast acquired DreamWorks in August 2016. DreamWorks Animation SKG is an animation studio that has released such children’s films as the Shrek, Kung Fu Panda and Madagascar series. The studio is a subsidiary of Universal Studios, which is itself a division of NBCUniversal. The studio’s feature films have grossed $14.5 billion …

November 22, 2017

Colorado Multifamily Top Stories Western

Inland Real Estate Facilitates $95M Sale of 360-Unit Multifamily Community in Metro Denver

by Katie Sloan November 21, 2017

BROOMFIELD, COLO. — Inland Real Estate Acquisitions Inc. has facilitated the sale of 8000 Uptown Apartments, a 360-unit multifamily community located in Broomfield, 18 miles northwest of Denver. The property sold for $95 million, according to BizWest. Matthew Tice and Brett Smith of Inland Real Estate facilitated the transaction. The buyer was an unspecified affiliate of Inland. The seller was not disclosed. Constructed in 2015, the property consists of 19 buildings with 160 one-bedroom, 170 two-bedroom and 30 three-bedroom units. The Wolff Company developed the community on a 14-acre site as part of the transit-oriented, master-planned Arista community, according to the Broomfield Patch. The greater Arista community totals 2,000 acres, including $400 million of residential, commercial, retail, hospitality and mixed-use real estate. Each unit features at least 9-foot ceilings, stainless steel appliances, quartz countertops, a washer and dryer, and a private balcony or patio. Community amenities include a clubhouse with coffee and beer on tap, fitness center, business center, playground, resident lounge and a resort-style heated swimming pool. “8000 Uptown Apartments’ prime location places residents just three miles from the Interlocken Technology business park, where many major employers such as Ball Aerospace, Nexus, Vail Resorts and Oracle have their headquarters,” says Tice of Inland. …

November 21, 2017

California Features Office Top Stories Western

Office Rental Rates on the Rise in All 30 of CBRE’s Top 30 Tech Submarkets

by John Nelson November 21, 2017

LOS ANGELES — Office rents across the United States and Canada are getting a big lift from the influence of tech job creation, according to CBRE. All of the submarkets tracked in the brokerage giant’s annual Tech-30 report have experienced rental growth over the past two years. In 13 of those submarkets, asking rental rates have grown by more than 10 percent in the two years tracked between second-quarter 2015 and second-quarter 2017. On the list of 30 submarkets, office rent growth was led by Orange County, Calif. (23.3 percent), Nashville (21.2 percent), Atlanta (17.6 percent), Charlotte (16.9 percent) and Silicon Valley (16.8 percent). According to CBRE’s Tech-30 report, the willingness of tech companies to pay a premium for office space in the hottest tech submarkets is starting to spill over into neighboring submarkets, as available space in tech “hotspots” is dwindling. Adjacent submarkets and traditional downtowns with skylines — rather than the brick-and-beam buildings tech companies have demonstrated a preference for — are primed to benefit, according to the report. “If tech companies that are used to paying a premium for space in the top tech submarkets are forced to move to adjacent submarkets in order to expand, we …

November 21, 2017

Multifamily Seniors Housing Top Stories

Mainstreet Acquires 42-Property Seniors Housing Portfolio for $425M

by Taylor Williams November 20, 2017

CARMEL, IND. — Mainstreet Health Investments (TSX: HLP-U), an Indiana-based seniors housing owner and developer that trades on the Toronto Stock Exchange, has acquired New York-based Care Investment Trust LLC and its portfolio of 42 seniors housing communities for $425 million. Mainstreet is funding the equity portion of the acquisition through the issuance of Mainstreet common shares directly to Tiptree Inc. (NASDAQ: TIPT), a New York-based holding company with roughly $2.4 billion in assets, including Care Investment Trust. Mainstreet will issue 16.8 million shares of its common stock at $9.75 per share to Tiptree. Mainstreet will also assume $261.2 million of Tiptree’s existing mortgage debt, which carries an interest rate with a weighted average of 4.7 percent. Upon closing of the deal, which is expected to occur during the first quarter of 2018, Tiptree will become Mainstreet’s largest shareholder with a 34 percent interest. The Care Investment Trust portfolio consists of 35 independent living, assisted living and memory care properties as well as seven skilled nursing facilities. The 42 properties, 24 of which are leased to long-term, triple-net operators, total 3,178 suites/beds across 11 states. The other 18 properties are leased to seniors housing operators via joint ventures in which …

November 20, 2017

New York Northeast Office Top Stories

SL Green Agrees to Sell 303,515 SF Office Building in Manhattan for $305M

by Kristin Harlow November 17, 2017

NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has agreed to sell 600 Lexington Ave. in Midtown Manhattan for $305 million. The 36-story, 303,515-square-foot office building is located on the corner of 52nd Street and Lexington Avenue in the heart of the Plaza District. The property is 99 percent leased to tenants such as MKP Management, Element Capital Management and Hawkins Parnell Thackston & Young. The sale is expected to close by the first quarter of 2018, and generate net cash proceeds of approximately $292 million, according to a news release. Darcy Stacom of CBRE represented SL Green in the transaction. The buyer was not disclosed. SL Green acquired 600 Lexington Ave. through a joint venture in May 2010 for $193 million, and took full ownership of the property in December 2015. SL Green is a fully integrated real estate investment trust, focused on acquiring and managing retail and office properties in Manhattan. The company’s stock price closed on Thursday, Nov. 16 at $100.81 per share, down from $104.49 per share one year ago. — Kristin Hiller

November 17, 2017

California Loans Multifamily Top Stories Western

Bayview Receives $288.8M Loan to Develop Two High-Rise Apartment Towers in Silicon Valley

by John Nelson November 16, 2017

SAN JOSE, CALIF. — Bayview Development Group, a privately held commercial real estate development and investment firm based in Northern California, has received a $288.8 million construction loan to develop MIRO in downtown San Jose. The project will include a pair of 28-story luxury apartment towers housing more than 600 residences and 20,000 square feet of retail and commercial space. Situated in one of the top markets in the Silicon Valley, MIRO will feature one-, two- and three-bedroom layouts, including 16 penthouses. The project will also include more than 50,000 square feet of amenities, such as a rooftop pool, concierge services, fitness center, spa facilities, pet facilities, fire pits and rooftop lounges. Bayview Development expects to deliver MIRO in 2020 at 167 E. Santa Clara St., within walking distance of the future downtown San Jose BART station. In addition to Bayview, the design team includes architect Steinberg and general contractor Suffolk. Charles Halladay, Brandon Roth and Jason Carlos of HFF arranged the five-year, interest-only loan through Broad Street Real Estate Credit Partners III, a debt fund managed by the Goldman Sachs Merchant Banking Division. The fund provides senior and mezzanine lending and preferred equity, according to Forbes. “There was a …

November 16, 2017

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