Top Stories

Trinity, Oaktree to Form $3B Hospitality Joint Venture

by Taylor Williams August 21, 2017

HONOLULU AND LOS ANGELES — Trinity Investments LLC and funds managed by Oaktree Capital Management have entered into a joint venture partnership, with plans to invest up to $3 billion in hospitality assets in Hawaii, California, Mexico and Japan. The formation of the joint venture follows Trinity and Oaktree’s $317 million acquisition of the 759-room Westin Maui Resort and Spa in April. That transaction more than doubled Trinity’s volume of hospitality investment for 2017. In addition to the four markets mentioned, the joint venture may also pursue investment opportunities in select gateway markets in the continental United States. Honolulu-based Trinity will oversee the joint venture and be responsible for its acquisitions and asset management. “Expanding our relationship with Oaktree provides us with additional capital to increase our scale in our core markets,” says Sean Hehir, president and CEO of Trinity. “Oaktree is a savvy investor that recognizes the success of our platform and shares our bullish outlook on these markets.” The stock price of Los Angeles-based Oaktree Capital Group LLC closed at $46.60 per share on Friday, Aug. 18, up from $43.87 on Aug. 25, 2016. — Taylor Williams

August 21, 2017

California Loans Maryland Multifamily Southeast Top Stories Western

Bellwether Enterprise Arranges $185M Refinancing for Multifamily Portfolio in California, Maryland

by Kristin Harlow August 18, 2017

LOS ANGELES, WOODLAND HILLS, CALIF. AND LAUREL, MD. — Bellwether Enterprise Real Estate Capital LLC has arranged three loans totaling $185.1 million for the refinancing of a multifamily portfolio located in California and Maryland. The portfolio consists of three properties totaling 1,384 units. The assets include: Avalon Russet in Laurel, Md.; eaves Woodland Hills in Woodland Hills, Calif.; and eaves Los Feliz in Los Angeles. Kip Kimble of Bellwether Enterprise arranged the 10-year loans for the borrower, AvalonBay Communities (NYSE: AVB). New York Life was the lender. AvalonBay Communities is a real estate investment trust that owns and manages apartment properties concentrated in the Northeast and Western regions. Bellwether Enterprise is a subsidiary of Enterprise Community Investment. — Kristin Hiller

August 18, 2017

Loans New York Northeast Office Top Stories

Durst Organization Secures $1B Financing Package for Manhattan Office Portfolio

by John Nelson August 17, 2017

NEW YORK CITY — The Durst Organization, a New York-based owner and operator of Manhattan office and residential assets, has closed a financing package totaling $1 billion from multiple lenders for several of its office assets. The financing included a $600 million loan for five office buildings and a $400 million credit line. The five assets involved in the debt include 655 Third Ave., 675 Third Ave., 825 Third Ave., 114 West 47th St. and 205 E. 42nd St. Citi Private Bank was the lead lender for the financing, contributing $650 million. As part of the package, JPMorgan Chase, TD Bank, and Bank of New York Mellon each provided $100 million, and City National Bank provided $50 million. Durst will use the loan to refinance its existing debt into a first mortgage debt, and the company will use the credit facility to finance future acquisitions. Dennis Hellman of Rosenberg & Estis PC, New York’s largest real estate law firm, represented The Durst Organization in the financing deal, with assistance from colleagues Kamilla Bogdanov and Daniel Grobman. Chatham Financial also advised Durst in connection with the financing, while Herrick Feinstein represented Citi Private Bank. “The structure of this financing is similar …

August 17, 2017

Features Industrial Self-Storage Top Stories

Self-Storage Demand Remains Strong as Supply Grows

by Kristin Harlow August 17, 2017

Halfway through a year of transition, the self-storage sector continues to undergo changing investor dynamics while feeling the effects of political uncertainty in Washington. Yet opportunities abound, particularly in the Midwest, where a moderate development pipeline has kept supply in check with demand. We’re currently witnessing a pool of buyers rethink their approach amid rising interest rates and a lack of tax and policy guidance. As a result, large self-storage real estate investment trusts have tempered growth expectations as development activity puts upward pressure on vacancy, and rent growth moderates. This may present an opening for small to midsize buyers to enter the market or expand their existing portfolios. Meanwhile, sellers are looking to capitalize on elevated valuations. Yet, the climate of higher interest rates will likely bring lower cash-on-cash returns and put upward pressure on cap rates. Favorable fundamentals Nationwide, self-storage is currently downshifting to a more sustainable growth trajectory after years of rampant expansion. Newly employed millennials are finally moving out on their own, spurring household formation. Baby boomers are also leaving the family nest as they look to downsize. These societal shifts, along with the current economic landscape, are driving a demand for space and keeping vacancy …

August 17, 2017

California Hospitality Retail Top Stories Western

Sudberry Properties, Ayres Hotels Break Ground on Retail Center, Hotel Near San Diego

by Nellie Day August 16, 2017

CHULA VISTA, CALIF. — Sudberry Properties and Ayres Hotels have broken ground on Millenia Commons, a 131,800-square-foot “lifestyle destination center” and a 135-room Ayres Hotel in the San Diego suburb of Chula Vista. The center and hotel will be part of the 210-acre, multi-billion-dollar Millenia master-planned community, which is currently being developed in South San Diego County. Millenia Commons will include tenants like HomeGoods, Cost Plus World Market, Ross Dress for Less, buybuy Baby, Mattress Firm, Hurricane Grill & Wings, Papagayos Grill & Cantina, Menchie’s Frozen Yogurt, Great Clips, Jamba Juice, McDonald’s and Pacific Dental Services. Flocke & Avoyer is handling the project’s retail leasing efforts. The retail component will extend on both sides of Millenia Avenue, just south of Birch Road, on two separate parcels. The urban design will place an emphasis on walkability and outdoor gathering spaces. The design of the center is intended to complement the style of the overall Millenia master plan. Sudberry Properties is the developer of Millenia Commons, which Andrew Hull Stevenson Architects designed. Hazard Construction is doing the initial grading and infrastructure work for this component, though Sudberry is in the process of selecting additional contractors. The boutique hotel is scheduled to open …

August 16, 2017

Kansas Midwest Office Top Stories

JLL Secures $221.3M Loan for Acquisition of 2.2 MSF Office Campus in Metro Kansas City

by Katie Sloan August 15, 2017

OVERLAND PARK, KAN. — JLL has secured $221.3 million in acquisition financing for the majority of Corporate Woods, a 2.2 million-square-foot office campus located roughly 11 miles outside Kansas City in Overland Park. The borrower was an affiliate of Group RMC Corp. The acquisition includes 22 of the 29 buildings that make up Corporate Woods. Seven buildings on the property, including the Doubletree Hotel, are under separate ownership and were not included in the sale. Adam Schwartz, Jonathan Schwartz and Mark Fisher of JLL secured the 10-year, fixed-rate loan through an institutional lender. A joint venture between CenterSquare Investment Management and Stoltz Real Estate Partners sold the property, according to reports by the Kansas City Business Journal. The office campus offers 2.17 million square feet of rentable space, and was over 90 percent leased at the time of sale to tenants including symplr, Affinis Corp., Kansas City Vision Performance Center and KBP Foods. Amenities at Corporate Woods include a wooded park with jogging trails, streams and wildlife; a PGA regulation-sized putting green; restaurants; free parking; and on-site banking facilities. Group RMC Corp. is a real estate co-investment group based in New York and Montreal. The company invests in and sponsors income-producing office properties …

August 15, 2017

Data Centers Features Industrial Top Stories

JLL: Shifting Clouds, Surging M&A Shape 2017 Data Center Demand

by Kristin Harlow August 15, 2017

The data center industry is stepping up to meet escalating demand for storage, according to a new report from JLL, which reveals that data center construction in North America is up 43 percent in 2017 compared to 2016. In addition, industry consolidation powered a $10 billion surge in mergers and acquisitions (M&A) in the first half of 2017. Data center users identified the biggest industry changes projected for the next two years in JLL’s report. Among the predictions: Efficiency programs will install automation to make data center operations more valuable to the core business; Artificial intelligence will help reduce human intervention in data centers and significantly cut time to restore operations in the event of a failure; Artificial intelligence will make greater use of predictive analytics on-site; Processor technology investments will improve cooling and reduce energy usage. Data center markets across the country experienced significant shifts in the first half of 2017. Northern Virginia maintained its status as the top market in the data center industry, and supply is growing at a historic rate, according to JLL. However, a shortage of available big-block spaces is leaving providers scrambling to bring new inventory on line as quickly as possible to capitalize on the …

August 15, 2017

Massachusetts Multifamily Northeast Top Stories

BHA Selects WinnCompanies for $1.6B Redevelopment of Public Housing Property in Boston

by Taylor Williams August 14, 2017

BOSTON — The Boston Housing Authority (BHA) has selected WinnCompanies, a Boston-based developer of mixed-income multifamily properties, to deliver a $1.6 billion redevelopment of the Mary Ellen McCormack public housing development in South Boston. The redevelopment project will demolish the 27 three-story buildings that comprise the property. It will replace all of the existing 1,016 units with a combination of workforce housing for middle-income residents, as well as market-rate apartments and condominiums. The total number of units will remain the same. The BHA intends for the project to leverage the 27-acre property’s market value to avoid displacement of and preserve affordability for the city’s low-income residents. It also aims to ensure that the property will remain operational in the long run. “It is important that we think outside the box to preserve our existing affordable housing and develop new housing to meet the future needs of all our city’s residents,” says Boston Mayor Martin Walsh. “This project has the potential to meet the housing needs of people from a broad spectrum of economic backgrounds.” Mary Ellen McCormack was built in the 1930s and is the first public housing project in New England. The redevelopment site will be located along Old …

August 14, 2017

Florida Mixed-Use Southeast Top Stories

Kimco Begins Phase I of $1B Mixed-Use Development in South Florida

by Kristin Harlow August 11, 2017

DANIA BEACH, FLA. — Kimco Realty Corp. (NYSE: KIM) has broken ground on the Phase I retail portion of Dania Pointe, a mixed-use project in Dania Beach, a beachside suburb of Fort Lauderdale in Broward County. Total project costs are estimated at $1 billion, according to local media reports. Slated to open in time for the 2018 holiday season, the $109 million Phase I comprises 300,000 square feet of retail space, which is approximately 80 percent preleased to tenants such as T.J. Maxx, Hobby Lobby, BrandsMart and Ulta Beauty. Upon completion, Dania Pointe will be a 1 million-square-foot, open-air lifestyle community incorporating over 100 retail tenants and restaurants. Future phases will include up to 500,000 square feet of Class A office space, 1,000 luxury apartment and condominium units and two hotels. Dania Pointe is located near the Fort Lauderdale-Hollywood International Airport and adjacent to Oakwood Plaza, which Kimco also owns. Hoar Construction and locally based developer Salzman Real Estate Advisors also make up the project team. New York-based Kimco is a real estate investment trust focused on owning and operating open-air shopping centers. As of June of this year, the company’s portfolio spanned 510 shopping centers and 84 million square …

August 11, 2017

Georgia Healthcare Southeast Top Stories

Healthcare Realty Trust to Buy Medical Office Portfolio in Atlanta for $612.5M

by John Nelson August 10, 2017

ATLANTA — Healthcare Realty Trust Inc. (NYSE: HR), a healthcare REIT based in Nashville, has agreed to purchase 15 medical office buildings located in the metro Atlanta area from Meadows & Ohly for $612.5 million. More than 85 percent of the portfolio is located on hospital campuses, and all of the assets are associated with three leading health systems in Atlanta. The portfolio spans 1.3 million square feet and was 96.2 percent leased at the time of the deal announcement. The assets have an average building age of 9.7 years. The portfolio is expected to produce net operating income of $29.9 million in 2018. The portfolio includes nine properties totaling 772,400 square feet associated with WellStar Health System, including a 165,400-square-foot, off-campus facility currently under construction. Set to open in September, the asset is fully preleased to WellStar. The other eight facilities are situated on three hospital campuses and are nearly 60 percent leased to WellStar, which operates 11 hospitals and has a 21 percent market share, making it the leading health system in the Atlanta MSA. Three medical office buildings totaling 276,700 square feet are affiliated with Piedmont Healthcare, the third-largest healthcare system in the Atlanta market with 14.5 …

August 10, 2017

Newer Posts

Older Posts