Top Stories

Gaedeke Buys 17Seventeen Office Tower in Uptown Dallas

by Jeff Shaw September 30, 2016

DALLAS — Gaedeke Holdings XIV Ltd. has purchased 17Seventeen, a 369,017-square-foot office tower in Dallas’ Uptown/Turtle Creek submarket, for an undisclosed price. The 19-floor building includes a 22-story LED illuminated light panel. The property also features a one-acre amenity deck, 1,096-space attached parking garage and views of Klyde Warren Park and the Arts District. Located at 1717 McKinney Ave., 17Seventeen was developed in 2010 on a 2.1-acre tract. Stephan Pyles’ Stampede 66 is the property’s trademark restaurant. Gaedeke acquired the 98 percent-leased property from a joint venture between Granite Properties Inc. and MetLife. 17Seventeen features 361,524 square feet of Class A office space and 7,493 square feet of retail space. Dan Yates of Gaedeke will oversee the building’s new on-site property management team.

September 30, 2016

Hawaii Loans Top Stories Western

Wells Fargo Provides $238M Refinancing for Howard Hughes Corp.’s Ward Village in Honolulu

by John Nelson September 29, 2016

HONOLULU — An affiliate of Wells Fargo & Co. (NYSE: WFC) has completed the $238 million refinancing of maturing debt for Ward Village, a 60-acre urban master-planned development underway in Honolulu. The Howard Hughes Corp. (NYSE: HHC) is the master developer of Ward Village, which features three condominium towers under construction. Upon completion, Ward Village will comprise 4,000 residences and 1 million square feet of retail and restaurant space. The development is situated between downtown Honolulu and Waikiki in the Kak’ako district. Ward Village is the only project in Hawaii to receive LEED Platinum certification for neighborhood development (LEED-ND) and the largest one in the United States to receive LEED-ND Platinum certification. The financing is secured by the existing Ward Village commercial properties, excluding the condominium towers currently under development. Ward Village’s three condominium towers underway — Waiea, Anaha and Ae ‘o — will open in late 2016, 2017 and 2018, respectively. The three towers will feature ground-floor retail space, including a Nobu restaurant, Merriman’s restaurant and the largest Whole Foods Market in Hawaii. Other mixed-use condo buildings within Ward Village include Gateway Towers and Ke Kilohana, which features a 23,000-square-foot, street-level Longs Drugs store. The financing allows Howard Hughes …

September 29, 2016

Features Top Stories

AIA’s Latest Architecture Billings Index Slips for First Time Since January

by John Nelson September 29, 2016

WASHINGTON, D.C. — Following six months of increasing demand for design services, the Architecture Billings Index (ABI) slipped below the positive mark for August, reflecting a decline in demand for design activity at architecture firms. The American Institute of Architects (AIA) reported the August ABI score was 49.7, down from the mark of 51.5 in July. The score reflects a decrease in design activity, with any score above 50 indicating an increase in billings. “This is only the second month this year where demand for architectural services has declined and it is only by a fraction of a point,” said Kermit Baker, AIA’s chief economist. The new projects inquiry index was 61.8, up from a reading of 57.5 the previous month. The design contracts index also jumped from the previous month, from 51.8 in July to 52.7 in August. The design contracts metric tracks trends in the dollar volume of signed design contracts, with any score above 50 reflecting a growing value of the design contracts signed by AIA member-owned firms. Because the design contracts index functions as an early indicator of construction contract awards, Baker is assured that the decline in the ABI for August isn’t a harbinger of …

September 29, 2016

Hospitality Nevada Retail Top Stories Western

Boyd Gaming Acquires Aliante Casino Hotel and Spa in Las Vegas for $380M

by Haisten Willis September 28, 2016

NORTH LAS VEGAS, NEV. — Boyd Gaming Corp. (NYSE: BYD) has completed the acquisition of ALST Casino Holdco LLC, the holding company of Aliante Casino Hotel and Spa. Boyd bought the property for $380 million, according to the Las Vegas Sun. Aliante is Boyd Gaming’s first casino property in North Las Vegas, and its 10th property in the Las Vegas Valley. The company now owns and operates 22 casino properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi. “As the premier gaming asset in North Las Vegas, Aliante provides a tremendous opportunity to participate in the long-term growth of the northern part of the Las Vegas Valley,” says Keith Smith, president and CEO of Boyd Gaming. Aliante opened in November 2008 at a cost of more than $660 million under the name Aliante Station, and was originally a joint venture between Station Casinos and the Greenspun family. A group of banks and private equity companies became the new owners in 2011 as a result of the property’s bankruptcy restructuring. Boyd’s plan to purchase the property was first announced in April 2016. Aliante Casino Hotel and Spa includes an 82,000-square-foot casino floor, 170-seat race and sports book, 202-room hotel, 16-screen …

September 28, 2016

Alabama Healthcare Southeast Top Stories

Medical Properties Trust to Acquire Nine Acute Care Hospitals in Massachusetts for $1.25B

by Katie Sloan September 27, 2016

BIRMINGHAM, ALA. — Birmingham-based Medical Properties Trust Inc. (NYSE: MPW) has agreed to invest $1.25 billion in Steward Health Care System LLC through the sale-leaseback of nine acute care hospitals operated by Steward, and through the acquisition of a limited equity stake in the company. The transaction includes $1.2 billion for the hospital real estate and a $50 million equity investment in Steward. Properties in the sale-leaseback include Saint Anne’s Hospital in Fall River, Mass.; Holy Family Hospital at Methuen in Methuen, Mass.; Holy Family Hospital at Haverhill in Haverhill, Mass.; Carney Hospital in Dorchester, Mass.; Norwood Hospital in Norwood, Mass.; St. Elizabeth’s Medical Center in Brighton, Mass.; Good Samaritan Medical Center in Brockton, Mass.; Nashoba Valley Medical Center in Ayer, Mass.; and Morton Hospital in Taunton, Mass., according to reports by CoStar Group. The portfolio totals nearly 1,800 beds. An affiliate of Cerberus Capital Management — owner of Steward Health Care — agreed to invest $150 million in MPW’s common stock in a private placement transaction concurrent with closing. Medical Properties Trust Inc. is a self-advised real estate investment trust focused on acquiring and developing net-leased healthcare facilities. The company’s stock closed at $14.99 per share on Monday, Sept. …

September 27, 2016

Features Florida Office Southeast Top Stories

Steps Every Landlord Should Take to Prevent Liens by its Tenant’s Contractors

by John Nelson September 27, 2016

Defending claims of lien recorded by tenant improvement contractors can be costly, time consuming and lead to protracted litigation. However, with a little planning and the right contract language, landlords can protect their properties from such liability. Below is a summary of various strategies a landlord can implement to avoid liens from its tenant’s improvements. Include No-Lien Language in all Leases and Record A Notice Thereof Under Florida law, when a lease between a landlord and a tenant requires the tenant to make improvements to the tenant’s premises, if the tenant ends up failing to pay its contractor for the tenant improvement work, then the contractor can file a claim of lien (and eventually foreclose) against both the tenant’s leasehold interest and the landlord’s fee simple interest in the property in an attempt to recover payment. However, under Section 713.10, Florida Statutes, the landlord can prevent such claims of lien and foreclosure actions, even if the improvements are the “pith of the lease,” by taking a few proactive steps. First, the landlord must include express “no-lien language” in its lease that states that the interest of the landlord shall not be subject to liens for improvements performed in the premises …

September 27, 2016

California Retail Top Stories Western

European Investor Buys Iconic Tiffany Building in San Francisco for $135M

by Nellie Day September 26, 2016

SAN FRANCISCO — A European investor has purchased the iconic Tiffany & Co. building in San Francisco. The 11-story property is located at 360 Post St. on Union Square. The San Francisco Business Times reported the purchase price at approximately $135 million, or $1,400 per square foot. The 96,882-square-foot building features luxury retail and office space, including 75 feet of prime retail frontage on Post Street. The sellers, Greenstone Realty Advisors LLC and 360 Post LP, acquired the building in 1995 for $22 million. The property has served as one of Tiffany’s flagship locations for nearly 20 years, as well as the U.S. headquarters for Chinese airline Cathay Pacific. The space is situated near the Powell Street BART/MUNI station. The Powell Street cable car and Central Subway line, scheduled for completion in 2019, are also within walking distance. Kazuko Morgan and Seth Siegel of Cushman & Wakefield represented the sellers in the deal. — Nellie Day

September 26, 2016

Loans Northeast Pennsylvania Retail Top Stories

HFF Arranges $210M Financing for 10-Property Retail Portfolio

by Katie Sloan September 23, 2016

PITTSBURGH — Pittsburgh-based HFF has arranged $210 million in first lien financing for a 10-property retail portfolio totaling 973,985 square feet in Arizona, California, Kansas, North Carolina and Texas. Kevin MacKenzie, Jim Curtin, Cory Fowler, Jamie Kline and Lauren LaFever of HFF worked on behalf of the borrower, Westwood Financial Corp., to place a 10-year, $110 million, fixed-rate portfolio loan with a life insurance company and a $100 million senior credit facility with Wells Fargo Bank’s Real Estate Capital Markets Group. The loans were secured in correlation with Westwood’s recent $1.2 billion consolidation and reorganization. The $110 million loan was secured against six retail assets including the 79,575-square-foot Village Plaza in Phoenix; the 65,054-square-foot Plaza Del Rio in San Juan Capistrano, Calif.; the 103,124-square-foot Stateline Village in Prairie Village, Kan.; the 46,789-square-foot Hebron Parkway Plaza in Carrollton, Texas; the 226,414-square-foot Old Town Shopping Center in Dallas; and the 79,226-square-foot Steelecroft Shopping Center in Charlotte, N.C. Tenants at the 91 percent-leased portfolio include Harris Teeter, Sprouts, Hy-Vee, Tom Thumb, Vons, PetSmart, LA Fitness and Michaels. The assets included in the Wells Fargo credit facility included the 77,031-square-foot Camelback Village anchored by AJ’s Fine Foods in Phoenix; the 89,506-square-foot Mercado Del Rancho …

September 23, 2016

California Multifamily Top Stories Western

Marcus & Millichap Brokers $72.5M Sale of Waterstone Apartment Homes in Metro Los Angeles

by Katie Sloan September 22, 2016

CHATSWORTH, CALIF. — Marcus & Millichap has brokered the $72.5 million sale of Waterstone Apartment Homes, a 348-unit multifamily community located in Chatsworth, roughly 30 miles outside Los Angeles. The property was built in 1971 at 9901 Lurline Ave. The community is located one block south of the 615,400-square-foot Westfield Topanga shopping mall and approximately one mile away from the Chatsworth Metrolink station. Waterstone offers studio, one- and two-bedroom units with community amenities including lighted tennis courts; barbecue and picnic area with fire pit; clubhouse with billiards; a fitness center; pool and hot tub; and laundry facilities. Greg Harris, Ron Harris, Kevin Green, Joseph Grabiec and Paul Darrow of Marcus & Millichap’s IPA division represented the seller and procured the buyer in the transaction. Both parties were undisclosed. “The acquisition gives the new ownership the ability to complete a strategic renovation in a market where there is a significant affordability gap to home ownership, and strong demand for high-end rental housing,” says Green. — Katie Sloan

September 22, 2016

Features Top Stories

Reforms to FIRPTA Affecting Real Estate Investment Opportunities

by Katie Sloan September 22, 2016

For 35 years, the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) has provided a pathway for foreign investment into American real estate development. Changes are coming from the implementation of the Protecting Americans From Tax Hikes Act of 2015, which are the first reforms in more than three decades that affect the status of foreign investment. FIRPTA reforms are designed to spur investment from foreign investors by modernizing some exemptions of the law, making foreign investment into American real estate more appealing. On December 18, 2015, President Obama signed into the law the Act to extend certain tax relief provisions that were expiring at the end of 2014. The Bill was written to create legislative reforms to FIRPTA designed to bring in additional investment into a struggling marketplace. There are a few major changes provided for in the reforms. The new Act exempts certain foreign pension funds and their subsidiaries from FIRPTA taxation. This will hopefully spur on more participation from these groups. It also increases the amount of Real Estate Investment Trust (REIT) stock participation available to foreign investors from 5 percent to 10 percent. The new rule creates a FIRPTA tax exemption for foreign investors …

September 22, 2016

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