Top Stories

Wyndham Plans Rebranding for Its 16 Hotel Chains

by Haisten Willis June 8, 2016

PARSIPPANY, N.J. — Wyndham Hotel Group (WHG) has unveiled a rebranding plan for all 16 of its brands, including Days Inn, Travelodge, Howard Johnson, Dolce Hotels and Resorts, Wyndham Grand, Wyndham Garden, TRYP by Wyndham, Wingate by Wyndham, Hawthorn Suites, Microtel Inn & Suites, Baymont Inn & Suites, Super 8, Knights Inn and Ramada Worldwide. All of the brands will see a revitalization effort aimed at younger, middle-income travelers. The Parsippany-based company conducted an 18-month study with brand strategy firm Siegel+Gale to assess the hotel landscape and the needs of business and leisure travelers. Changes will begin as early as this summer. The rebranding targets what WHG describes as the “everyday traveler,” as the global middle class grows from a population of 2 billion to 4.9 billion over the next decade, according to the company. WHG has a portfolio of nearly 8,000 hotels worldwide in the economy, midscale and upscale segments. WHG is also refreshing its loyalty program, Wyndham Rewards, and aims to more clearly define each brand in its portfolio. Super 8 will have a new slogan of “An American Road Original.” Travelodge’s new slogan will be “Your Basecamp for Adventure.” The new slogan for Microtel Inn & Suites …

June 8, 2016

HB2 Brings Corporate Relocations in North Carolina to ‘Screeching Halt’

by John Nelson June 8, 2016

CHARLOTTE, N.C. — House Bill 2 (HB2), the recently passed North Carolina bill that requires transgender individuals to use public bathrooms corresponding to the sex on their birth certificate, has rocked the state since its passing on March 23. Tech giant PayPal has scrapped its previously announced plans to bring 400 jobs to Charlotte; artists such as Bruce Springsteen, Pearl Jam, Maroon 5 and Nick Jonas canceled planned concerts in North Carolina; and the NBA is considering moving its 2017 All Star Weekend away from Charlotte. In addition to these headlines, corporate relocation inquiries to North Carolina have essentially “gone away,” according to Chris Schaaf, executive vice president of JLL. “If you look at JLL’s core business and offerings, one of those services relates to major relocations. The easiest thing for me to do would be to sit up here and say how busy we are for that aspect of our business, but the reality is that it’s come absolutely to a screeching halt,” says Schaaf, speaking at the seventh-annual InterFace Carolinas conference held on June 1 at the Hilton Charlotte Center City. The conference drew 249 brokers, developers, contractors, financial intermediaries, owners and managers who do business in North …

June 8, 2016

California Office Top Stories Western

Hudson Pacific Agrees to Acquire Los Angeles Office Tower for $311M

by Christina Cannon June 7, 2016

WEST LOS ANGELES — Hudson Pacific Properties Inc. has agreed to acquire a 500,475-square-foot office tower in West Los Angeles for $311 million. A fund managed by Blackstone is selling the Class A property, known as the Brentwood Center or Wells Fargo Center, which is located at 11601 Willshire Blvd. The building, which is currently 83 percent occupied, has served as Hudson Pacific’s corporate headquarters since 2010. Hudson leases 20,000 square feet in the building, which also includes tenants First Pacific Advisors and Genter Capital, according to CoStar. The office tower was built in 1983 and features a travel agency, Trimana Café, on-site property management and full service gym, according to Loopnet. Hudson Pacific recently sold One Bay Plaza in Burlingame, Calif. for $53.4 million and plans to use the proceeds to help pay for the acquisition. The company also expects to be repaid on a $28.5 million note for the Broadway Trade Center. The company expects to fund the remaining balance with a combination of funds from its revolving credit facility, project financing and private placement proceeds. “Our team’s long history of occupancy and prior ownership of 11601 Wilshire Blvd. provided a competitive edge to understanding the value creation potential for …

June 7, 2016

Features Hospitality Top Stories

Warning Sign: Hotel Sector Sees First Year-Over-Year Occupancy Drop Since 2009

by Jeff Shaw June 7, 2016

Occupancy rates for U.S. hotels declined 0.5 percent during the first quarter of 2016, causing the first year-over-year decline since the fourth quarter of 2009, according to hotel data research firm STR. The Hendersonville, Tenn.-based company suggests that the industry has passed the inflection and is forecasting hotel occupancy declines in both 2016 and 2017. The national occupancy rate dropped from 61 percent in first-quarter 2015 to 60.7 percent in first-quarter 2016. The information was included in CBRE’s annual Hotel Horizons report, which suggests that new supply is outpacing hotel demand nationwide. Supply increased by 1.5 percent from first-quarter 2015 to first-quarter 2016, but demand only increased by 1 percent over the same time period. The report is not all bad news, however. CBRE predicts the average daily room rate (ADR) will increase by 4.3 percent in 2016, and another 4.9 percent in 2017. This increase in rates will offset the projected decline in occupancy, and result in an increase in revenue per available room (RevPAR) of 4.2 percent and 4.7 percent in 2016 and 2017, respectively. The numbers are modest compared with the 6 to 8 percent RevPAR increases of recent years, but positive nonetheless. “The first-quarter decline in occupancy …

June 7, 2016

Georgia Multifamily Southeast Top Stories

Cushman & Wakefield Acquires Multi Housing Advisors in the Southeast

by Nellie Day June 6, 2016

ATLANTA — Cushman & Wakefield has acquired Atlanta-based Multi Housing Advisors (MHA), creating one of the largest multifamily brokerage platforms in the Southeast. MHA has closed 23.8 percent of the Southeast’s total multifamily investment sales transactions this year, according to the company. The combined firms brokered nearly $3 billion in transactions, including 20 percent of all Southeastern multifamily sales in 2015. MHA co-founders Josh Goldfarb and Marc Robinson will serve as Cushman & Wakefield’s U.S. multifamily leaders. They will be based in Atlanta and Charlotte, respectively. Goldfarb and Robinson founded MHA in 2002. The company has produced transaction volume totaling more than $5.9 billion in the past five years. MHA has sold more than 140,000 multifamily units through more than 850 individual transactions since its inception. The firm brings 13 brokerage professionals and a staff of 35 to Cushman & Wakefield, and adds on-the-ground employees to the Southeast, with offices in Birmingham and Charlotte. “Adding MHA exemplifies Cushman & Wakefield’s commitment to growing our capital markets platform, especially in the multifamily sector,” says Noble Carpenter, Cushman & Wakefield president of capital markets for the Americas. “Strategically, we are deeper and positioned to serve clients across the spectrum of multifamily properties …

June 6, 2016

California New York Northeast Top Stories Western

NorthStar, Colony to Merge Creating $17B REIT

by Christina Cannon June 3, 2016

NEW YORK AND LOS ANGELES — NorthStar Asset Management Group Inc. (NYSE: NSAM), Colony Capital Inc. (NYSE: CLNY) and NorthStar Realty Finance Corp. (NYSE: NRF) have entered into a definitive merger agreement under which the companies will combine in an all-stock merger to create a diversified global equity REIT with a total capitalization of $17 billion. NorthStar Asset Management Group (NSAM), which is currently publicly traded but not a REIT, will elect to be treated as a REIT beginning in 2017. Additionally, NRF and Colony, through a series of transactions, will merge with and into NSAM. The company, to be named Colony NorthStar Inc., will have $58 billion of assets under management, placing it in the top quartile of the REIT sector overall. Upon completion of the transaction NSAM shareholders will own approximately 32.85 percent, Colony shareholders will own approximately 33.25 percent and NRF shareholders will own approximately 33.90 percent of the combined company. “We are incredibly excited to merge with Colony to create a global real estate leader well positioned for long-term growth,” says David Hamamoto, executive chairman of NSAM and chairman of NRF. “This strategic combination is the next logical step for NSAM and NRF, creating substantial value for shareholders and …

June 3, 2016

550 Madison Avenue Manhattan New York Sony Building

New York Northeast Office Top Stories

ING Capital Provides $570M Acquisition Loan for Sony Building in Manhattan

by John Nelson June 2, 2016

NEW YORK CITY — ING Capital LLC, part of Dutch global financial institution ING Group (NYSE: ING), has originated a $570 million bridge loan for the acquisition a 37-story skyscraper located at 550 Madison Ave. in Manhattan. ING Capital provided the financing to Olayan America, the U.S. investment arm of The Olayan Group, an international real estate investor based in Saudi Arabia. Olayan America will purchase the office tower, also known as the Sony Building, from The Chetrit Group for $1.3 billion, according to The Real Deal. Ron Cohen of JLL represented Olayan America in the transaction, and Doug Harmon of Eastdil Secured represented The Chetrit Group. Located within the Plaza District of Manhattan, the tower features 852,830 square feet of rentable mixed-use space, including approximately 776,000 square feet of office space, retail frontage on Madison Avenue, and exhibition and museum space. One restaurant tenant currently occupies 5,000 square feet at the tower, which is nearly 100 percent vacant, according to ING Capital. “The property has been maintained to a high standard and has never previously been available to the open market for office leasing,” says Tony Fusco, head of real estate at Olayan America. According to The Real Deal, …

June 2, 2016

Features Top Stories

AIA’s Architecture Billings Index Positive for Third Straight Month

by John Nelson June 2, 2016

WASHINGTON, D.C. — After beginning the year with a decline, the Architecture Billings Index (ABI) has posted three consecutive months of increasing demand for design activity at architecture firms. The American Institute of Architects (AIA) reported the April ABI score was 50.6, down from the mark of 51.9 in March but still in the positive territory. The score reflects an increase in design activity, with any score above 50 indicating an increase in billings. A barometer of future non-residential construction activity, the ABI reflects the roughly nine- to 12-month lead time between architecture billings and construction spending. The index is produced by The American Institute of Architects (AIA) Economics & Market Research Group. The score is tabulated based on a monthly survey sent to a panel of AIA member-owned architecture firms. The design contracts index jumped from 51.8 in March to 54.3 in April. The 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, Kermit Baker, AIA’s chief economist, is confident that the growth in the …

June 2, 2016

Office Texas Top Stories

JLL Arranges $450M in Financing for JPMorgan Chase Tower, Chase Center in Houston

by Haisten Willis June 1, 2016

HOUSTON — JLL has secured a total of $450 million of financing for Prime Asset Management to recapitalize JPMorgan Chase Tower and Chase Center, two Class A office properties located in downtown Houston. The 75-story Chase Tower is Houston’s tallest building at 1,002 feet. Combined with the 20-story Chase Center, the complex totals 2.4 million square feet. An underground pedestrian tunnel connects the buildings. Chase Tower includes office space, retail and a sky lobby observation deck. Chase Center includes office and retail space along with a parking garage. Chase Tower is located at 600 Travis St. and was built in 1981. Chase Center is a shorter building adjacent to Chase Tower at 601 Travis St. MetLife provided a fixed-rate senior mortgage, while JPMorgan provided mezzanine financing for a term of 11 years. The mezzanine loan has a floating interest rate for the first year and then converts to a fixed rate for the following 10 years. Prime Asset Management, an international investment group that owns the two properties, will partially use the loans to replace its existing senior mortgage debt with MetLife, which was due at the end of 2017, according to the Houston Chronicle. Tom Melody and John Ream led …

June 1, 2016

Healthcare Texas Top Stories

HCA Holdings to Acquire Forest Park Medical Center in Dallas for $135M

by Katie Sloan May 31, 2016

DALLAS — An affiliate of HCA Holdings Inc. has agreed to purchase the Forest Park Medical Center facility in Dallas, a 190,000-square-foot medical campus featuring 20,000 square feet of green space, for $135 million. The physician-owned hospital will require approval from bankruptcy court to sell the property. If the transaction is approved, $124.6 million of the purchase price will be used to pay back the facility’s main debt holder, Sabra Health Care REIT Inc. (NASDAQ: SBRA). The publicly traded real estate investment trust refinanced the facility’s mortgage loan for $110 million in October 2013. The owners of the Forest Park Medical Center health system created the Neal Richards Group LLC, headed by real estate developer Derrick Evers, to build the hospitals under the Forest Park umbrella and serve as landlord, according to reports by D Magazine. Ascension Group Architects designed the Dallas campus, which features 84 luxury private inpatient rooms, 12 intensive care units, 22 operating suites, three special procedure and endoscopy suites, ancillary services and an imaging center. Drs. Richard Toussaint and Wade Barker founded the Forest Park Medical Center system in the late 2000s. In March, Toussaint was found guilty of committing $10 million in healthcare fraud and …

May 31, 2016

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