Top Stories

LNR Partners Sells 723,326 SF Shopping Mall in Westbury, New York for $92M

by Kristin Harlow May 24, 2017

WESTBURY, N.Y. — LNR Partners LLC has sold The Mall at the Source, a 723,326-square-foot shopping center in the Long Island community of Westbury, for $92 million. The transaction included the 210,798-square-foot Fortunoff Building, a vacant anchor property formerly occupied by now-defunct department store Fortunoff. The property, which includes a four-story parking garage, is situated on 38 acres at 1504 Old Country Road. Located 28 miles from New York City, the mall is positioned within the Nassau Hub submarket. LNR sold the property as the manager for CMAT 99-C1 Old Country Road LLC, which is a subsidiary of Starwood Property Trust Inc. There was also a co-seller on the transaction, a real estate mortgage investment conduit (REMIC) trust for which C-III Asset Management LLC is the special servicer. Jose Cruz, Kevin O’Hearn, Chris Phaneuf, Michael Oliver, Stephen Simonelli and Andrew Scandalios of HFF marketed the property on behalf of the sellers. HFF also secured a loan for the Fortunoff Building. An undisclosed private foreign buyer purchased the mall and acquired the title to the Fortunoff Building. Starwood Property Trust is a commercial mortgage real estate investment trust. C-III Asset Management is a real estate investment management and commercial property services company. …

May 24, 2017

Florida Mixed-Use Office Retail Southeast Top Stories

Hines to Develop 600,000 SF Mixed-Use Tower in Downtown Miami

by Katie Sloan May 23, 2017

MIAMI — Hines is set to break ground on 110 10th Street, a 45-story, 600,000-square-foot mixed-use tower located within Miami Worldcenter, a 27-acre development in downtown Miami. The tower will be the first Class A office building of scale constructed in Miami’s Central Business District in eight years, and will offer a mix of office space and retail. The project is located directly adjacent to Miami Worldcenter’s 360,000-square-foot retail promenade. “More companies are moving to downtown Miami each day and existing brands are expanding here,” says Nitin Motwani, managing principal for the master developer of Miami Worldcenter, Miami Worldcenter Associates. “An office tower at Miami Worldcenter will offer tenants a chance to be in a mixed-use setting that’s centrally located, walkable and connected.” New Haven, Conn.-based architecture firm Pickard Chilton Associates was chosen to design the building, which will feature three indoor/outdoor terraces. Construction on the first phase of Miami Worldcenter began in 2016, including a 60-story Paramount luxury multifamily community and retail space. Construction on 110 10th Street is expected to begin in the second quarter of 2018, with initial occupancy occurring in late 2020. Hines has been active in the Florida real estate market since 1982 with the development of …

May 23, 2017

Features Midwest Office Top Stories

If These Walls Could Talk: The Power of Environmental Graphic Design

by John Nelson May 23, 2017

On a basic level, environmental graphic design (EGD) is about communicating information through visual media and tactical installations. But it’s not just about conveying information, it’s also about expressing ideas and identity. On a more engaging level, EGD is about making a space memorable and about connecting people to spaces through the thoughtful and strategic use of graphics, signage, art and artistry. EGD includes a wide array of applications and expressions. From practical and simple design to inspiring and uniquely thoughtful compositions, EGD professionals blend environmental graphics with both the built environment and interior design to reinforce identity and bring elements of an organization’s professional culture into the space. In other words, EGD isn’t just about where you are — but more importantly, who you are. For owners, managers, businesses and brokers, understanding the power and potential of high-quality EGD is critically important. It can greatly enhance the properties that people own, operate, lend on or broker — helping to sell a space and vision or sell a client on your brand, building or business. Influential Storytelling EGD attracts people to not only a polished, beautiful space, but can also visually demonstrate the potential of a space through a wide …

May 23, 2017

Retail Top Stories

Phillips Edison to Acquire Limited Partnership, Create $4B Shopping Center REIT

by Taylor Williams May 22, 2017

CINCINNATI — Phillips Edison Grocery REIT I Inc. (OTC: PHLD) has entered into an agreement to acquire the real estate assets and third-party asset management business of its sponsor firm, Phillips Edison Limited Partnership (PELP), in a stock and cash transaction valued at roughly $1 billion. The transaction is expected to close during the fourth quarter. Upon closing, the transaction will create a non-traded shopping center REIT with a total enterprise value of approximately $4 billion. The new REIT will own 230 grocery-anchored shopping centers spanning roughly 25.5 million square feet across 32 states. Shareholders of Phillips Edison Grocery REIT I are expected to own approximately 80.2 percent of the new company, while PELP shareholders will own the remaining 19.8 percent. The company’s pro forma for the first quarter of 2017 suggests that funds from the transaction would have generated an 8 to 10 percent increase per share. At the end of that period, the REIT’s common stock was valued at $10.20 per share, based on third-party valuations. Under the terms of the deal, the REIT will refinance or assume approximately $501 million in outstanding debt. The new company is expected to have a total debt-to-enterprise value of 41.4 percent. …

May 22, 2017

Mixed-Use Top Stories Washington Western

Oakpointe, Presidio to Develop $670M Mixed-Use Community in Covington, Washington

by Kristin Harlow May 19, 2017

COVINGTON, WASH. — A joint venture between Oakpointe Communities and Presidio Residential Capital has received unanimous approval from the City of Covington to develop LakePointe Urban Village, a $670 million mixed-use community in Covington, approximately 30 miles south of Seattle. Located at Highway 18 and Southeast 256th Street, the 214-acre master-planned community will include an 850,000-square-foot entertainment and lifestyle center, a 130-room hotel and up to 1,500 single-family and multifamily residences. The developers plan to break ground in early 2018. KTGY Architecture + Planning designed the centerpiece of the community, a peninsula extending into a 20-acre lake with retail shops, restaurants, single-family and multifamily homes, a pavilion park, open space and trails. “We are thrilled the City of Covington was so receptive to the overall vision and design of LakePointe,” says Brian Ross, CEO of Oakpointe Communities. “We are already in lease discussions with a variety of prospective tenants including major retailers, a multiplex theater, restaurants, outdoor cafés and coffee shops, wine bars and breweries, soft good retailers, specialty and boutique retailers as well as a gourmet grocer.” Kirkland, Wash.-based Oakpointe Communities is a land and commercial development company. Presidio Residential Capital, based in San Diego, provides capital in the …

May 19, 2017

Florida Restaurant Retail Southeast Top Stories

Whitman Family Development Wins Approval for $400M Enhancement Plan of Bal Harbour Shops

by John Nelson May 18, 2017

BAL HARBOUR, FLA. — Whitman Family Development has gained final approval from the Bal Harbour Village Council for the $400 million enhancement plan for Bal Harbour Shops, an upscale, 450,000-square-foot, open-air shopping center located in Bal Harbour, an incorporated village near Miami Beach. The plan has been revised multiple times over the past decade, according to the Miami Herald. Whitman Family Development will add 340,387 square feet of retail space at Bal Harbour Shops, nearly doubling its footprint. The upgraded center will feature the first Barneys New York flagship store in the Southeast, upgrades to longtime anchor tenant Neiman Marcus and new dining options, including Freds at Barneys. The plan also calls for a new plaza at the shopping center’s main entrance along Collins Avenue. (Click here to view an animated video showcasing the improvements to Bal Harbour Shops.) Whitman Family Development aims to begin the early stages of the enhancement later this year, with major construction taking place in phases over the following five to six years in order to minimize the impact of construction on the surrounding area and the shopping center. “We’re thrilled to be making this major investment in the future of Bal Harbour Shops, which …

May 18, 2017

Features Multifamily Top Stories

Study: Renters Prefer Suburbs in Most Major Metros

by Taylor Williams May 18, 2017

The days of renting in the city and buying in the suburbs may have come to an end. According to a recent study from national apartment locator service RentCafé, in 19 of America’s 20 largest metros, the suburbs are attracting more renters than urban neighborhoods. Between 2011 and 2015, several metros — New York, Los Angeles, Houston, Philadelphia — experienced greater overall population growth in urban neighborhoods than in suburban ones. However, only Philadelphia saw a greater year-over-year percentage increase in the growth of renter households inside the city limits as opposed to outside of them The difference in renter households that flocked to the suburbs over the city during that period was most pronounced in Riverside, Calif., which saw an additional 42,700 households move to the suburbs. Riverside was followed by Atlanta (37,200 households), Miami (29,800 households) and Chicago (20,600 households). Cheaper rent remains the primary incentive behind the trend. Of the 20 metros surveyed, only St. Louis posted a higher average rent in its suburban areas than its urban neighborhoods. The differences in average rent between the suburbs and the city were smallest in Dallas, Phoenix, Houston and Denver. The average amount of rent saved by moving to …

May 18, 2017

California Loans Multifamily Top Stories Western

Rescore Property Corp. Receives $100M in Construction Financing for 368-Unit Apartment Building in Hollywood

by Nellie Day May 17, 2017

LOS ANGELES — Rescore Property Corp. has received a $100 million construction loan to develop The Rise Hollywood, a 368-unit apartment complex in Hollywood. The seven-story community will be located at 1331 N. Cahuenga Blvd. The units will feature nine-foot ceilings, wood flooring, stainless steel appliances, quartz countertops, balconies and walk-in closets. Community amenities include a pool, fitness center, yoga room, club room and dog run. The Rise Hollywood is situated near Amoeba Music, Lure Nightclub and the ArcLight Hollywood within the Hollywood Entertainment District. Kevin O’Grady, Daniel Sheehan and Eric McGlynn of Walker & Dunlop arranged the non-recourse construction loan. Bank of the Ozarks provided the capital. Boca Raton, Fla.-based Rescore is a private REIT founded by Arthur Falcone, Tony Avila, and Bill Powers. The firm partnered with Los Angeles-based Cal-Coast on this project. — Nellie Day

May 17, 2017

Multifamily Student Housing Top Stories

Waypoint Launches Student Housing Affiliate, Purchases Four-Property Portfolio for $102M

by Jeff Shaw May 16, 2017

STAMFORD, CONN. — Waypoint Residential, a multifamily real estate investment firm, has officially launched its student housing affiliate, Waypoint Campus Housing LLC. The launch was marked by the new company’s acquisition of a four-property student housing portfolio for $102 million. The seller of the properties, which total 2,638 beds, was Chicago-based investment firm Blue Vista Capital Management. The properties in the portfolio include High View Place near the University of Texas at San Antonio; Maverick Place near the University of Texas at Arlington; Rebel Place near the University of Nevada at Las Vegas; and Spring Place near the University of North Carolina at Greensboro. A fifth property was not disclosed because the transaction has not yet officially closed. “We are excited to officially expand our platform to include student housing as one of our key strategies within our core business, which focuses exclusively on the rental housing sector,” says Scott Lawlor, CEO of Waypoint Residential. “The addition of student housing aligns with our overall strategy to diversify our product offerings within the rental housing market, and we believe it provides terrific risk-adjusted opportunities.” Jeremy Pemberton will lead Waypoint Campus Housing as CEO. Pemberton was previously focused on acquisitions and sourcing …

May 16, 2017

Features Loans Retail Top Stories

Will CMBS Lenders and Borrowers Adapt to the Shifting Retail Landscape?

by Taylor Williams May 16, 2017

Over the past two years, quarterly earnings results that followed holiday shopping seasons have come with a side of fresh store closures as well as new bankruptcy filings by major retailers. In the first few weeks of 2017 alone, long-established chains such as RadioShack, JCPenney, Macy’s, CVS, and Gordmans announced plans to shutter hundreds of underperforming store locations from their portfolios, putting added pressure on numerous commercial real estate landlords and mall center operators. The trend reflects the ongoing effort of retailers to reduce costs and focus on new showrooming and omnichannel strategies that better cater to the purchasing tendencies of today’s consumers, a sizable portion of which includes millennials. The confluence of e-commerce, changing consumer shopping habits, and new technological enhancements has shifted the retail landscape away from traditional uses of large physical footprints and the one-dimensional approach to sales as discount, experiential, and specialty retailers continue to rise in popularity. Historical Performance The national delinquency rate (categorized as 30 or more days past due, in foreclosure, REO, or non-performing balloons) for loans securitized into private-label CMBS deals has been steadily increasing during the “wall of maturities” period, as the large wave of more than $300 billion in legacy …

May 16, 2017

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