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NEW YORK CITY — Affiliates of American Realty Capital (ARC) Hospitality Trust have purchased a six-property hotel portfolio from Summit Hotel Properties (NYSE: INN) for $108.3 million. The portfolio contains a total of 707 Marriott- and Hilton-branded rooms throughout the states of Washington and Colorado. Properties included in the transaction are the 84-room Fairfield Inn & Suites in Spokane and the 144-room Fairfield Inn & Suites in Bellevue, Wash.; the 120-room Hilton Garden Inn and 75-room Hampton Inn in Fort Collins, Colo.; and the 160-room Fairfield Inn & Suites and 124-room SpringHill Suites in Denver. The latest six-property portfolio acquisition brings ARC’s lodging holdings to 142 hotels totaling 17,351 rooms across 32 states. Crestline Hotels and Resorts and Interstate Hotels & Resorts will manage the new acquisitions. ARC drew on its term loan facility to finance the transaction. Deutsche Bank AG New York Branch and Deutsche Bank Securities arranged that portion of the financing. Summit also provided a $27.5 million loan to ARC, which included $7.5 million for earnest money. The remaining balance was applied toward the six-hotel purchase price. The loan has an initial maturity date of Feb. 11, 2017, with two, one-year extension options. Proceeds from the latest sale …

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SEATTLE — Seattle-based Schnitzer West LLC has landed a joint venture partner for the development of Madison Centre, a 36-story office tower in Seattle. Cornerstone Real Estate Advisers LLC has formed the joint venture with Schnitzer West on behalf of an unnamed institutional client. The equity contribution for this project totaled $150 million. Simultaneously with the joint venture formation, Cornerstone and Schnitzer West closed a construction loan with Blackstone Real Estate Debt Strategies and Bank of the Ozarks. The 754,000-square-foot, LEED Gold certified tower is situated on a 0.7-acre site in the central business district of Seattle. It will feature 746,000 square feet of office space and 7,800 square feet of ground-floor retail atop a seven-story subterranean parking garage. Construction on the project started in third quarter 2014, and is slated for completion during the second quarter of 2017. The building will feature an exterior façade utilizing high-performance glass and an aluminum curtain wall system, a ‘great room’ concept in the lobby, a 30-foot-tall glass rotunda with a suspended spiral staircase and a three-story, plant-covered “living wall.” Hartford, Conn.-based Cornerstone Real Estate Advisers LLC is a global real estate investment manager, providing core and value-added investment and advisory services to institutional and …

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Retail outlets, for many, call to mind memories of piling into a car and driving into rural parts of the state for a day filled with bargain hunting. While these traditional centers still exist, a shift is taking place in the outlet landscape. New development is moving toward the rooftops, and bringing with it the elements of a successful lifestyle center. “Most of the outlets used to be in rural areas where you would have to go on a journey to get your discounts,” says Quito Anderson, CEO of Ben Carter Enterprises. “Those days are gone.” Enhanced food offerings, placemaking and the addition of entertainment are just a few of the elements making their way into the modern outlet center. “In the past, entertainment at outlet centers had been exceedingly limited,” says Karen Fluharty, partner at Strategy+Style Marketing Group. “The entertainment used to be almost exclusively found in the discounts. Today, there is a convergence between entertaining the customer while they’re shopping and allowing them to both be entertained by and enjoy the synergies of the surrounding environment,” says Fluharty. From kids clubs, to fireworks exhibits, movie theaters and restaurants, today’s outlet center is not just a place to bargain …

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Alley24-seattle

SEATTLE — MetLife (NYSE: MET) has purchased Alley24, a 215,402-square-foot, Class A office building with ground floor retail in Seattle’s South Lake Union submarket, for $129.3 million. HFF marketed the property on behalf of the sellers, Vulcan Inc. and PEMCO Insurance Co. MetLife assumed an existing life insurance company loan as part of the purchase. Alley24 is located at 221 Yale Ave. N. Completed in 2006, the property was one of Seattle’s first mixed-use projects to earn LEED certification and features sustainable elements such as natural daylight, operable windows, energy-efficient water flow fixtures, automatic sun-tracking sun shades and environmentally sensitive building materials. The 85 percent-leased property serves as the corporate headquarters for architectural firm NBBJ. Additional tenants include Skanska and Cole & Weber. Alley24 offers tenants two roof decks and flexible floor plans. Todd Tydlaska, Nick Kucha and Michael Leggett led the HFF team. “Alley24 is one of the only true mixed-use assets in the South Lake Union submarket, a centrally located, high-amenity, pedestrian-oriented location that has maintained historical occupancy of more than 96 percent since it was completed,” says Tydlaska. MetLife’s stock price closed at $37.43 per share on Friday, Feb. 12, down from $50.86 one year prior. — …

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DURHAM, N.C. — Federal Capital Partners has sold the mixed-use development, West Village, for $187 million. The Connor Group purchased the development, which is located at 605 W. Main St. in Durham. West Village consists of 609 apartments and 104,000 square feet of commercial space, which is located less than two miles from Duke University. The apartments are comprised of 453 urban lofts and 156 luxury apartments. The 10 buildings that make up West Village were previously tobacco warehouses, with most of the buildings pre-dating 1920. The apartments at West Village range from studios to four-bedroom units, and amenities include swimming pools with sundecks, courtyards, a fitness center, business center, on-site Amtrak station, outdoor theater, clubhouse, game room, bike shop and patios with a TV and grills. Over the past few years, improvements throughout the community were made, including new branding, signage, Wi-Fi hotspots, and the fitness center was expanded to feature a yoga room and juice bar. West Village residents also have access to the Zipcar program. There are currently 45 restaurants within a half-mile radius of West Village, which has a Walk Score of 84, meaning most errands can be accomplished on foot. The residential portion of West …

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Park Central Raleigh

RALEIGH, N.C. — Kane Realty Corp., a Raleigh-based commercial real estate developer, has joined with Newport Beach, Calif.-based KBS Realty Advisors as a joint venture partner for the development of Park Central in Raleigh. The development costs for the 16-story, mixed-use tower are estimated to total $100 million, according to Triangle Business Journal. “We are delighted for our partnership with KBS Realty Advisors to continue with Park Central,” says John Kane, CEO of Kane Realty Corp. “The vision we’ve shared with KBS fulfills the [area’s] demand for an upscale, urban lifestyle that’s rich with amenities. As Raleigh continues to grow, we are proud to provide a vibrant community … for residents and workers to enjoy.” The 252,204-square-foot high-rise retail and apartment building will be located at the intersection of Six Forks Road and the 440 Beltline in Midtown Raleigh’s North Hills district. Construction is already underway on the project, which is situated adjacent to Midtown Park. “We truly believe Park Central’s dynamic location within an attractive market like Raleigh, coupled with the luxury style of living we’re offering, will be a very attractive draw to tenants,” says Marc DeLuca, regional president of KBS. “Raleigh has become an appealing location for …

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Lancaster Pollard Seniors Housing Survey

COLUMBUS, Ohio — A clear majority of seniors housing executives plan to start new construction projects in 2016, although they are slightly less ambitious than they were a year ago, according to an online survey of 295 executives by Columbus-based lender Lancaster Pollard. Respondents to the survey included owners, operators, developers and investors. The survey found that 70 percent of respondents are either “somewhat likely” or “extremely likely” to start a new seniors housing project this year. This is a drop-off from last year, when 80 percent indicated they expected to undertake new construction. “Overall, our survey findings depict an environment similar to [last year],” the report states. ”New construction and renovation projects are increasingly being pursued, particularly in regard to assisted living and memory care.” The majority of respondents — 61 percent — believe that memory care will be the fastest growing subsector of seniors housing this year. Skilled nursing facilities and continuing care retirement communities are least likely to lead the way in growth, according to the findings. Survey respondents also suggest that the current seller’s market is starting to take a toll on owners’ approach to mergers and acquisitions. Some 65 percent indicate they are extremely or somewhat …

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lipstick-building-885-third-avenue-manhattan-new-york-city

NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, has completed the sale of two properties with a total value of $508 million. The first sale is the leased fee interest in 885 Third Ave. in Manhattan, also known as “The Lipstick Building,” for a gross sales price of $453 million, or $713 per square foot. The deal was originally announced in October. A partnership between Ceruzzi Properties and Shanhai Municipal Investment USA is the buyer, according to the Commercial Observer, a New York-based publication covering commercial real estate transactions. SL Green acquired the leased fee interest in 885 Third Ave. in a joint venture in 2007 at a gross asset valuation of $317 million and fully consolidated its position in 2010 at a valuation of $352 million. As part of the transaction, SL Green will retain a preferred equity position. The sale, executed at a capitalization rate of 3.8 percent, will generate net proceeds to SL Green of approximately $45 million. The second sale is the company’s 90 percent stake in the residential condominium at 248-252 Bedford Ave., a 72-unit multifamily building in Williamsburg, Brooklyn, at a gross asset valuation of $55 …

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RALEIGH, N.C. — CBL & Associates Properties Inc. (NYSE: CBL) has closed on a new joint venture with DRA Advisors LLC that significantly reduces the retail real estate investment trust’s ownership stake in Triangle Town Center and Commons mall in Raleigh. The new joint venture acquired the property from an existing 50/50 joint venture between CBL and The Richard E. Jacobs Group for a total consideration of $174 million, including the assumption of a $171.1 million loan secured by the property. CBL now holds a 10 percent ownership position in the asset and is responsible for leasing and managing the property. DRA Advisors holds a 90 percent ownership position. The center, which was 96 percent occupied at the end of 2015, is anchored by North Carolina’s only Saks Fifth Avenue location, and is located at the intersection of Triangle Town Boulevard and I-540 near Capital Boulevard and Old Wake Forest Road. The $171.1 million loan on the property, which matured in December 2015, has been modified and restructured with an initial term of three years maturing in December 2018. The loan includes two one-year extension options available to the new joint venture for a final maturity date of December 2020. …

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30 Hudson Yards, New York City

NEW YORK CITY — New construction starts increased 8 percent across the U.S. commercial real estate industry in 2015 with the multifamily sector leading the way, according to a report by New York-based data firm Dodge Data & Analytics. The national total was $162.7 billion in new starts for the office, retail, hotel, warehouse, garage and multifamily sectors, up from $150.3 billion in 2014. Most property sectors “held steady,” according to the report, while multifamily’s 18 percent spike caused the bulk of the increase. By location, the New York City metropolitan statistical area (MSA) led the way with a striking 66 percent increase in construction starts over 2014, representing $34.9 billion in new construction starts in 2015. Other MSAs in the top five for total volume were Miami ($6.3 billion), down 8 percent; Dallas-Ft. Worth ($6 billion), up 35 percent; Chicago ($5.9 billion), up 14 percent; and Washington D.C. ($5.9 billion), down 4 percent. The largest percentage increase after New York was Kansas City, which jumped to 18th place thanks to a 56 percent spike in new starts to $1.8 billion. Among the top 20 metros by construction starts, Philadelphia saw the greatest drop in production — a 57 percent …

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