Top Stories

C-III Capital Partners Agrees to Acquire Resource America for $207M

by John Nelson May 23, 2016

IRVING, TEXAS AND PHILADELPHIA — C-III Capital Partners LLC, a commercial real estate investment manager and property services firm, has agreed to purchase Resource America Inc. (NASDAQ: REXI), an asset management company that specializes in commercial real estate and credit investments. Under the terms of the agreement, Resource America stockholders will receive $9.78 per share in cash, for a total of approximately $207 million. Resource America’s board of directors unanimously approved the agreement. The price per share represents a 51 percent premium over Resource America’s closing price on May 20. “Having undertaken a thorough strategic review, during which we evaluated a wide variety of options, the board has unanimously concluded that partnering with C-III is the best way to maximize value,” says Jonathan Cohen, president and CEO of Resource America. “C-III is a highly regarded real estate services and investment management organization with outstanding leadership.” Philadelphia-based Resource America is the external manager of one publicly traded REIT, four non-traded REITS and two other registered investment companies and focuses on capital-raising activities through the independent broker-dealer network. Irving-based C-III Capital Partners currently manages $3.8 billion on behalf of institutional investors in both debt and equity funds, a separate account and several …

May 23, 2016

Features Top Stories

RECon Recon: A Glimpse at What Retail Marketing Professionals Can Expect to See and Hear at RECon 2016

by Katie Sloan May 23, 2016

As someone that has been driving and supporting public relations and marketing programs for developers, property managers, retailers, brokers and consultants for more than 25 years, ICSC’s Spring RECon convention in Las Vegas has become an annual ritual. I haven’t missed a single May conference in nearly 20 years. Like all longtime attendees, I’ve seen the good, the great and the ugly and I’ve come to see RECon as an important window into an evolving industry. My perspective as a public relations and marketing professional has been shaped by experiences that include representing some of the most influential developers and iconic destinations in the industry. I’ve helped open centers all over the country, and my firm has become adept at working with our clients to secure approvals and public support; drive communication around public and private financing efforts; and elevate traffic, increase visibility and shape and share the public narrative for standout projects and industry visionaries and leaders. Along the way, I’ve seen retail marketing change in very exciting ways. In recent years, the most savvy developers, owners and managers have become more sophisticated — leveraging advanced tools, new technologies and a proven understanding about what makes spaces and places memorable …

May 23, 2016

Multifamily New York Northeast Top Stories

Meridian Capital Arranges $104M Acquisition Financing for The Hamilton in New York City

by Christina Cannon May 20, 2016

NEW YORK CITY — Meridian Capital Group has arranged a $104 million loan for the acquisition of The Hamilton, a 265-unit multifamily property on the Upper East Side of New York City. Bonjour Capital purchased the 38-story building, which is located at 1735 York Ave. A balance sheet lender provided the seven-year loan, which features a fixed rate of 3.6 percent and three years of interest-only payments. Shaya Ackerman and Shaya Sonnenschein of Meridian Capital Group arranged the financing. “Meridian was able to obtain uniquely favorable terms, including three years of interest-only payments, based on the high quality of the asset and its potential for value-add upside, the strength and reputation of the sponsor and Meridian’s active relationship with the lender,” says Shaya Ackerman, a managing director for Meridian Capital. Apartments at The Hamilton feature granite kitchen countertops, marble bathrooms and individually controlled air-conditioning in each room. Building amenities include a 24-hour uniformed doorman, fitness center with locker rooms and saunas, landscaped roof deck, a children’s playroom, furnished lounge with kitchen, billiards lounge, laundry facility, attached garage and a complimentary shuttle bus service. Residents are also in close proximity to the 4 and 6 subway lines and the Metropolitan Museum of …

May 20, 2016

New York Northeast Top Stories

Sovran Self Storage Enters Agreement to Acquire LifeStorage for $1.3B

by John Nelson May 19, 2016

BUFFALO, N.Y. — Sovran Self Storage Inc. (NYSE: SSS), a self storage real estate investment trust (REIT), has entered into a definitive agreement to acquire LifeStorage LP, a privately owned self storage operator, for approximately $1.3 billion. Sovran has secured $1.35 billion in bridge financing, but the REIT intends to permanently finance the transaction with proceeds from future equity and debt offerings. “We are delighted to announce this acquisition. LifeStorage has built a high-quality national portfolio, and these stores will enhance and complement our physical footprint and digital presence,” says David Rogers, CEO of Buffalo-based Sovran, which operates over 550 self storage facilities in 26 states under the name “Uncle Bob’s Self Storage.” LifeStorage, which is the sixth-largest private owner and operator of self storage facilities in the United States, currently operates 92 properties in nine states. Upon completion of the acquisition, Sovran will own 84 LifeStorage stores with a purchase contract for three additional certificates of occupancy deals to be delivered in late 2016 and early 2017. The newly acquired facilities are located within Sovran’s existing markets, including 25 facilities in Chicago, 19 facilities across the Texas major markets including eight in Austin and five in Dallas, and three …

May 19, 2016

Features Industrial Top Stories

CBRE: U.S. Claims Six of 10 Top Spots for Fastest Growing Logistics Rents

by Christina Cannon May 19, 2016

Demand for top-notch logistics space remains strong across the country, so strong in fact that six of the top 10 markets with the fastest growing logistics rents globally are located in the United States, according to CBRE’s “Global Prime Logistics Rents” report released this week. The global prime industrial rent survey provides a snapshot of achievable net rental rates for high-quality, Class A logistics space in traditional and emerging global hubs. With a nearly 30 percent increase in rents during 2015, Oakland, Calif., posted the largest gain. To determine the percentage increase, researchers gathered information based on industrial distribution space of the highest quality and specification, and in the best location, within each industrial hub. In North and South America, rents for prime logistics space increased 5.6 percent during 2015, largely due to massive growth in U.S. coastal markets where strong occupier demand drove up pricing. In Oakland, which also recorded the largest annual increase in prime rents globally, flight-to-quality is common for inner-bay logistics users despite the high cost. New development in some markets, like the Inland Empire, is also commanding premium rates. In addition to Oakland, U.S. cities in the top 10 for fastest growing prime logistics rents …

May 19, 2016

Hospitality Maryland Mixed-Use Multifamily Office Retail Southeast Top Stories

Construction Begins on $750M Mixed-Use Development in Metro Baltimore

by Haisten Willis May 18, 2016

WHITE MARSH, MD. — Construction has begun on Greenleigh at Crossroads, a $750 million component of Baltimore Crossroads, a 1,000-acre mixed-use development in White Marsh in the eastern section of Baltimore County. The completed Greenleigh at Crossroads will contain 1,000 single-family homes and townhomes, 500 multifamily units, three mid-rise Class A office buildings spanning 300,000 square feet, 128,000 square feet of single-story office space, 116,000 square feet of retail and a 120-room SpringHill Suites by Marriott. The development team consists of St. John Properties, Somerset Construction Co. and Elm Street Development. “The integrated design of Greenleigh at Crossroads reflects and responds to the new urbanism trend that is sweeping the country, while also complementing the existing product mix that exists at Baltimore Crossroads,” says Edward St. John, chairman of St. John Properties. St. John Properties has broken ground on one of the office buildings, and should begin construction on the hotel in late 2016. Elm Street Development will soon begin building the single-family homes and townhomes, with models expected to open in spring 2017. Somerset Construction will begin work this fall on The Berkleigh, a luxury apartment community featuring 317 units. Located along Maryland Route 43 near I-95, Baltimore Crossroads is …

May 18, 2016

Mixed-Use Multifamily Retail Southeast Top Stories Virginia

Regency Centers, AvalonBay Acquire Market Common Clarendon Mixed-Use Property in Arlington for $406M

by Katie Sloan May 17, 2016

ARLINGTON, VA. — A joint venture between Regency Centers Corp. (NYSE: REG) and AvalonBay Communities Inc. (NYSE: AVB) has acquired Market Common Clarendon, a mixed-use development located in Arlington, for $406 million. The project, located approximately five miles from Washington, D.C., consists of 300 Class A apartments and 300,000 square feet of retail space anchored by Whole Foods Market, Apple, Crate & Barrel, The Container Store, Pottery Barn and Williams-Sonoma. The asset also features an adjacent vacant building for future development. Arlington County records show that TIAA-CREF bought the properties for a little more than $166 million in 2002, according to the Washington Business Journal. AvalonBay will acquire all of the residential components, while Regency will acquire the retail and all remaining components. To reach the $406 million purchase price, AvalonBay contributed $120.3 million and Regency contributed $285.7 million. “Market Common Clarendon is a seasoned and cycle-tested 10-acre urban shopping center,” says Barry Argalas, senior vice president of national transactions for Regency Centers. “The combination of a dense, affluent and highly educated customer base, along with the convenient access to the Clarendon metro station, all contribute to the success of the retailers.” Regency Centers’ stock price closed at $78.27 per share …

May 17, 2016

Features Top Stories

Chinese Investment Plays Increasing Role in U.S. Real Estate, Says New Research Report

by Christina Cannon May 17, 2016

NEW YORK — Chinese direct investment in U.S. real estate has grown dramatically since 2010, according to a new report compiled by Rosen Consulting Group (RCG) and New York-based Asia Society, a nonprofit education organization. The report, titled “Breaking Ground: Chinese Investment in U.S. Real Estate,” provides a comprehensive analysis of Chinese inbound investment in all areas of U.S. real estate. “This wave of investment is coming from diverse sources in China,” says Arthur Margon, a partner at RCG and one of the authors of the report. “But that’s really a small piece of the potential investor universe.” More than any foreign investor other than Canada, China stands out for the breadth, depth and speed of its participation in the U.S. real estate market. Following negligible investment activity from 2005 to 2009, in 2010 Chinese acquisitions of existing U.S. commercial real estate assets surged to $585 million and has increased exponentially since then. Chinese investors acquired over $17.1 billion of existing commercial property between 2010 and 2015, representing an annual growth rate of 70 percent, according to the report. Half of that investment came in 2015 alone. Penchant for Office Space, Hotels While the majority of commercial real estate transaction volume between …

May 17, 2016

Massachusetts Mixed-Use Northeast Retail Top Stories

Edens to Build $200M Mixed-Use Development in Boston’s South Bay

by Nellie Day May 16, 2016

BOSTON — The Boston Redevelopment Authority Board has given approval for Edens to construct a 700,000-square-foot mixed-use development in the South Bay submarket of Boston. The 10-acre, $200 million development will sit adjacent to Edens’ South Bay Center in Boston’s Dorchester neighborhood. This approval was the last hurdle to starting the project, and Edens plans to break ground in June. The proposal calls for 113,000 square feet of restaurants and shops, a 12-screen luxury AMC Theatre with IMAX, a flagship Wahlburger’s, a 130-room hotel and two parking garages. Edens will also partner with Mill Creek Residential to develop 475 multifamily units at the project. The multifamily component will contain a mix of studio to three-bedroom apartments. The mixed-use project will be built on a site that currently contains a vacant industrial property and concrete plant. During construction, Edens also plans to upgrade the 427,289-square-foot South Bay Center, which is home to tenants such as OfficeMax, Marshalls, Old Navy, Target, The Home Depot, Bed Bath & Beyond and TJ Maxx. Columbia, S.C.-based Edens develops, owns and operates community shopping centers in primary U.S. markets. Its institutional-quality portfolio contains more than 130 retail centers. Mill Creek Residential Trust LLC is a national …

May 16, 2016

Florida Office Southeast Top Stories

Flea World Demolition Clears Way for $300M Reagan Center Mixed-Use Development Near Orlando

by Nellie Day May 13, 2016

SANFORD, FLA. — Demolition work has commenced on Flea World, the one-time home of “the nation’s largest flea market under one roof,” in Sanford approximately 25 miles north of Orlando. The 118-acre site is being cleared to make way for Reagan Center, a mixed-use project that could eventually include as much as 2.4 million square feet of offices, restaurants, retail stores, apartments and townhomes. The property is situated on U.S. Route 17 at Ronald Reagan Boulevard and County Home Road. The 34-year-old flea market space is situated directly across from the Seminole County Government Operations Center, the courthouse and Seminole State College. Reagan Center’s construction will kick off a 20-year effort by the municipalities of Seminole County, Sanford, Lake Mary, Winter Springs, Longwood and Casselberry to create an economic development corridor along Route 17. “Reagan Center will create employment opportunities for thousands of Central Floridians over the next decade and will be a major economic engine,” says Paul Partyka, partner at NAI Realvest in Orlando and the broker of record for the $300 million development. “Because of its location, size and economic impact, Reagan Center will rank as one of Florida’s benchmark development projects.” Hastings Homes is carrying out the …

May 13, 2016

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