Top Stories

Pebblebrook Hotel Trust Sells Dumont NYC for $118M

by Nellie Day June 21, 2017

NEW YORK — Pebblebrook Hotel Trust (NYSE: PEB) has sold the 252-room Dumont NYC in New York for $118 million. The transaction marks Pebblebrook’s exit from the New York market. The upper upscale hotel is located at 150 E. 34th St. at Lexington Avenue in Manhattan. It was built in 1986. The buyer was LeFrak Organization, which plans to convert the hotel into apartments, according to The Real Deal. Dumont NYC was previously part of a six-hotel portfolio Pebblebrook held with joint venture partner Denihan Hospitality Group. Denihan Investments completed a redemption agreement with Pebblebrook that transferred ownership of the jointly owned hotels in October. Denihan became the sole owner of four of the assets. This included The Benjamin, Fifty NYC, Gardens NYC and Shelburne NYC for a total of 917 rooms. Pebblebrook assumed full ownership of Dumont NYC and Manhattan NYC, totaling 870 rooms. Manhattan NYC was then sold to a joint venture between Sioni Group, Patriarch Equities and Highgate for $217.5 million. It was rebranded as the Stewart Hotel. Proceeds from the Dumont NYC sale will be used for general business purposes, which may include reducing Pebblebrook’s outstanding debt or repurchasing some of the company’s common shares. “With …

June 21, 2017

Office Southeast Top Stories Virginia

Lerner Enterprises Secures $200M Financing for 17-Story Office Tower in Virginia

by Katie Sloan June 20, 2017

TYSONS, VA. — Lerner Enterprises has received $200 million in permanent financing for 1775 Tysons Boulevard, a 17-story office tower located in Tysons, Virginia. The developer, Lerner, delivered the property in late 2016. The 476,000-square-foot office tower is LEED Platinum certified, and features a state-of-the-art fitness center, conference center, café, indoor and outdoor social areas, and an onsite Fogo de Chão restaurant. Tenants at the property include EY, DXC Technology and WeWork. JLL is handling leasing at the tower. KPF designed the project. Towers Golde was landscape architect, Dewberry handled engineering and Paladino was LEED consultant. The office complex is the newest building in the Tysons II master plan, which features office, retail, dining, hotel and residential space. The 117-acre development is home to Tysons Galleria, an 800,000-square-foot luxury retail center, and a Ritz-Carlton. TH Real Estate — the real estate investment management arm of TIAA — provided the capital for the financing, which John Sieber Jr. of Phillips Realty Capital structured. Rockville, Md.-based Lerner Enterprises is one of the largest development and management companies in metro Washington, D.C. The company’s portfolio includes Dulles Town Center, a 1.4 million-square-foot regional mall in Loudoun County, Va., and Washington Square, a 1 …

June 20, 2017

Features Retail Top Stories

Lease Restructuring Increasingly Common in Today’s Retail Market, Says Gordon Brothers’ Mark Dufton

by Taylor Williams June 20, 2017

LAS VEGAS — As a specialist in lease mitigation and restructuring for retailers who are closing or relocating their stores, Gordon Brothers’ CEO of Real Estate Mark Dufton has represented dozens of retailers in the market for new or smaller spaces. In his 25-plus years in the business, Dufton has mitigated or restructured more than 1,500 leases, saving his clients more than $100 million. Northeast Real Estate Business sat down with Dufton of Boston-based Gordon Brothers during the International Council of Shopping Centers’ RECon event in late May in Las Vegas to pick his brain on how brick-and-mortar retailers facing heavy store closures can minimize financial losses. Northeast Real Estate Business: How do you measure success at a conference like this? Mark Dufton: We had a great day yesterday. The retail world is in a fair amount of turmoil, and that’s our space. We do lease valuation, disposition and restructuring work. So it’s been pretty heady times for us in this environment. NREB: DJM Real Estate changed its name about a year ago to Gordon Brothers. Can you walk me through what led to the transition of the company name? Dufton: DJM Real Estate was a stand-alone real estate company. It got bought by …

June 20, 2017

Arkansas New York Northeast Retail Southeast Top Stories

Walmart Agrees to Acquire Apparel Retailer Bonobos for $310M

by Taylor Williams June 19, 2017

BENTONVILLE, ARK., AND NEW YORK CITY — Walmart (NYSE: WMT) has agreed to acquire online apparel retailer Bonobos Inc. for approximately $310 million in cash. Walmart, the giant discount department store chain, expects to complete the transaction by September. The announcement comes on the heels of Walmart’s acquisition of online women’s apparel retailer ModCloth in March. Founded in 2007 by Andy Dunn and Brian Spaly, New York-based Bonobos designs and sells its own brands of clothing for men. These brands will be featured and sold on various Walmart-owned digital platforms, including Jet.com, which Bentonville-based Walmart acquired in August 2016 for approximately $3 billion. Bonobos also operates 35 physical retail locations, known as Guideshops, across the United States. Walmart currently has no plans to feature lines of Bonobos clothing in its brick-and-mortar locations, according to The New York Times. Under the terms of the agreement, Dunn, the current CEO of Bonobos, will oversee the company’s collection of clothing brands that are designed in-house and distributed online. Marc Lore, CEO of Walmart U.S. e-commerce and founder of Jet.com, says the acquisition reflects the company’s long-term e-commerce strategy. “We’re seeing momentum in the [e-commerce] business as we expand our value proposition with customers,” he …

June 19, 2017

Retail Texas Top Stories Washington Western

Amazon to Acquire Whole Foods Market for $13.7B

by Kristin Harlow June 16, 2017

SEATTLE — Online retail giant Amazon (NASDAQ: AMZN) has agreed to acquire high-end grocery chain Whole Foods Market Inc. (NASDAQ: WFM) for $13.7 billion. The all-cash transaction amounts to $42 per share and includes the Austin, Texas-based grocer’s net debt. Whole Foods Market will continue to operate stores under the Whole Foods Market brand. John Mackey will remain CEO of Whole Foods Market, and the company’s headquarters will remain in Austin. “This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” says Mackey. Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017. “It seems that Amazon, after all, is one of brick and mortar’s biggest believers — and for good reason. The grocery sector has been in major growth for some time now, and Amazon’s entry into the space will be a game changer,” says Rafael Romero, vice president on the retail team at Coral Gables, Florida-based CREC, an independent real estate firm. “It will be interesting to see how other high-end and organic …

June 16, 2017

Massachusetts Mixed-Use Northeast Top Stories

Cottonwood Management Breaks Ground on $900M Mixed-Use Development in Boston’s Seaport District

by John Nelson June 15, 2017

BOSTON — Cottonwood Management, a private real estate management and development firm based in Los Angeles, has started construction of Echelon Seaport, a three-tower, $900 million mixed-use development in Boston’s Seaport district. Set to open in phases between 2019 and 2020, the project will feature 733 condominiums and apartments and 125,000 square feet of retail space. The 3.5-acre development is situated at Seaport Boulevard and B Street and directly across from HarborWalk and Boston Harbor, providing miles of walking and bike paths, as well as water taxi access to places like Logan International Airport. The project will also be located one block from the MBTA Silver Line and within walking distance of Boston’s downtown/financial district. Cottonwood unveiled its Echelon lifestyle brand at the groundbreaking ceremony held yesterday. Boston Mayor Martin Walsh, Massachusetts Gov. Charles Baker and James Beard award-winning chef Ming Tsai of the nearby Blue Dragon restaurant attended the event. “Boston’s Seaport is one of the most exciting neighborhoods in the world right now and is the perfect starting place for Cottonwood to establish the Echelon lifestyle brand,” says Alexander Shing, chairman and CEO of Cottonwood Management. “Echelon Seaport will anchor the Seaport community with a new level of …

June 15, 2017

Features Top Stories

Political Polarization, Global Uncertainty Top List of Issues Affecting Real Estate, Says Counselors of Real Estate

by Jeff Shaw June 15, 2017

DENVER — Global uncertainty and political polarization are the issues that will have the most significant impact on the real estate industry in 2017 and 2018, according to The Counselors of Real Estate (CRE). The findings come from the organization’s Top Ten Issues Affecting Real Estate, which it released Wednesday during a keynote address by Scott Muldavin, 2017 chair of CRE, at the annual conference of the National Association of Real Estate Editors in Denver. CRE is a professional association for real estate advisors. Muldavin is president of The Muldavin Company, a real estate advisory firm based in San Rafael, Calif. The list was created from dialogue between CRE’s members, all of which took place under the direction of two CRE members: Peter Burley, a research executive and author, and Victor Calanog, chief economist and senior vice president with Reis New York City. The other issues earning rounding out this years’ Top 10 list include technology, generational disruptions, retail disruptions, infrastructure investment, housing, “Lost Decades of the Middle Class,” real estate’s emerging role in healthcare, immigration and climate change. Below are brief summaries of each issue from the report. For more in-depth analysis, click here to read the full report. …

June 15, 2017

Massachusetts Northeast Office Top Stories

City Approves Next Step for $1B Union Square Redevelopment Near Boston

by Nellie Day June 14, 2017

SOMERVILLE, MASS. — The Somerville Board of Aldermen approved rezoning to allow the city to move forward on a proposed $1 billion, 2.3 million-square-foot Union Square redevelopment project. Somervile is situated just northeast of Boston, adjacent to Cambridge. The new mixed-use project would include 1.3 million square feet of new office and civic spaces, along with 2.5 acres of public and open spaces. City officials expect the project will create more than 5,000 new permanent jobs. The development will also provide housing, with 20 percent of the supply dedicated to low-income families. In conjunction with the redevelopment, Somerville is working on a $2.3 billion Green Line extension, which would connect Union Square with surrounding neighborhoods and Boston through the train system. The Union Square Station Associates (US2) is the City of Somerville’s master developer partner on the project. The association will make a $5.5 million public benefits contribution toward the Green Line project. “Union Square’s proximity to Kendall Square, MIT and Harvard — one the densest innovation centers in the world — makes it poised for the next wave of economic growth,” says Greg Karczewski, president of US2. “We’re bringing 2.3 million square feet of new mixed-use, transit-oriented development to …

June 14, 2017

Hospitality Nevada Top Stories Western

Golden Entertainment to Acquire American Casino & Entertainment Properties for $850M

by Katie Sloan June 13, 2017

LAS VEGAS — Golden Entertainment Inc. (NASDAQ: GDEN) has agreed to acquire American Casino & Entertainment Properties LLC, which owns four gaming and entertainment properties in Nevada, for $850 million. American Casino & Entertainment’s portfolio features 3,879 slot machines, 89 table games and 4,895 hotel rooms in Las Vegas and Laughlin, Nevada. Properties include: The Stratosphere Casino, Hotel & Tower, featuring an 80,000-square-foot casino, 2,427 guestrooms and suites, 13 restaurants, nine bars, two pools, entertainment venues and a 1,149-foot observation tower located on the North Las Vegas Strip. Arizona Charlie’s Hotel & Casino – Decatur, located just off the Las Vegas Strip, which features 1,060 slot machines, seven table games and 259 hotel rooms. Arizona Charlie’s Hotel & Casino – Boulder, located on Boulder Highway in Las Vegas, which features 849 slot machines, seven table games and 303 hotel rooms. The Aquarius Casino Resort, located on the banks of the Colorado River in Laughlin, Nev. The property features a 57,000-square-foot casino, eight restaurants, three bars, 1,906 guestrooms and suites and an entertainment pavilion. The purchase consideration consists of $781 million cash plus approximately four million shares of Golden Entertainment stock issued to American Casino & Entertainment’s current owner, Whitehall Street …

June 13, 2017

Features Restaurant Retail Top Stories

From Production to Consumption: Architecture is Critical Component of the U.S. Microbrewery Scene

by John Nelson June 13, 2017

For most brick-and-mortar retailers, visibility to remain top-of-mind is at the forefront of operational decisions. Not so for microbreweries. In fact, it’s not as much about where a brewery is located as it is about how it is designed. For this still fairly young industry, brewery architecture and design are nearly as important as the beer itself. Microbreweries are quickly taking the Southeast by storm as places to taste and enjoy a fine beverage, as well as spend an enjoyable afternoon or evening. With so many intricate design components within often-limited budgets, this kind of project can be a perfectly alluring (and appetizing) challenge for an architect. Critical to the success of creating the ideal atmosphere and experience for a microbrewery is partnering with an architectural and design firm that understands the business to ensure the building ultimately supports current and future operations and growth. And, with fermenters and grain rooms in the mix, the design is quite unique to other commercial and even industrial spaces. Microbrewery operators must have space for two (possibly three) components: production, event space and now retail sales, an emerging third element for states like Georgia with new alcohol sales laws. The production space must …

June 13, 2017

Newer Posts

Older Posts