Top Stories

Walkability On the Rise in America’s Major Cities, Study Finds

by Haisten Willis June 14, 2016

A new report from George Washington University finds that metropolitan areas in the United States are shifting toward developing more walkable areas, reversing a trend that dates back more than half a century. Christopher Leinberger and Michael Rodriguez of The George Washington University School of Business wrote the report, titled “Foot Traffic Ahead, Ranking Walkable Urbanism in America’s Largest Metros.” “The end of sprawl is in sight,” the authors write. “The nation’s largest metropolitan areas are focusing on building walkable urban development.” For what may be the first time in 60 years, the report finds that walkable urban places (WalkUPs) in all 30 of the largest metros are gaining market share over their drivable suburban competition, which is often accessible only by car. This has been coupled in recent years by substantially higher rental premiums in the office and retail sectors. The 30 metro areas measured include 46 percent of the nation’s population (145 million of 314 million) and 54 percent of the national GDP. They were measured based on the current percentage of occupied walkable urban office, retail and multifamily rental square feet in their WalkUPs. The top walkable metro areas are as follows: The study found that walkable …

June 14, 2016

New York Northeast Office Retail Top Stories

French Billionaire Buys Manhattan Office, Retail Building from Thor Equities for $525M

by Nellie Day June 13, 2016

NEW YORK CITY — French billionaire Marc Ladreit de Lacharrière has purchased a 100,000-square-foot office and retail building in Manhattan for $525 million. The building is located at 693 Fifth Ave. in Midtown’s Plaza District. The 20-story property’s retail component houses the flagship store of international luxury brand Valentino. It includes four full levels of retail space with 50 feet of Fifth Avenue frontage. Notable office tenants include Carpenters Workshop Gallery, Louis Licari and Phillips Auctioneers. Thor Equities acquired the building in 2010 from Japanese department store Takashimaya for $142 million. Thor then restructured the interior to create a multi-level retail space, which Valentino occupied in 2013. The renovation included a modern floor-to-ceiling window façade from the ground level through the eighth floor. Thor also worked with designer David Chipperfield to create a new building lobby. Thor Equities owns a number of other properties on Fifth Avenue including 685 Fifth Ave., the future home of the new Coach global flagship store. “We continue to believe strongly in the retail and office market on Fifth Avenue and throughout New York City,” says Joe Sitt, Thor’s CEO. “However, after successfully implementing our business plan of improving this prime retail and office location …

June 13, 2016

California Mixed-Use Multifamily Top Stories Western

Century West Partners to Break Ground on $280M Multifamily Development in Metro Los Angeles

by Katie Sloan June 10, 2016

GLENDALE, CALIF. — Century West Partners will break ground today on Next on Lex, a $280 million, mixed-use multifamily development located in the Los Angeles suburb of Glendale. The transit-oriented development, located at 201 Lexington Drive, will occupy a full block and will feature four, six-story buildings that include a mix of one-, two- and three-bedroom units and studio lofts. The property will also offer 10 live-work units, as well as three levels of underground parking with space for 753 cars and 152 bicycles. Next on Lex will include 8,140 square feet of retail space, which will be occupied by a Citibank branch alongside other tenants. Amenities at Next on Lex will include outdoor living areas; pools and hot tubs; landscaped courtyards including a rooftop deck and sky lounge; multiple sun decks; and a variety of community spaces. The property will also feature an onsite business center; yoga studio and fitness center; a media room; game room; private massage room; and party room and kitchen. Demolition on the existing office building on-site took place in April, according to reports by the Los Angeles Times. Santa Monica, Calif.-based Killefer Flammang Architects (KFA) designed the project. Chicago-based W.E. O’Neil Construction is the …

June 10, 2016

Illinois Midwest Multifamily Top Stories

CA Ventures, Habitat Partner on $600M Multifamily Portfolio in the Midwest

by Christina Cannon June 9, 2016

CHICAGO — CA Ventures and The Habitat Co. have formed a partnership whereby Habitat will manage a $600 million multifamily portfolio owned by CA Ventures. The five-property, 1,215-unit portfolio features four assets under construction and one that opened early this year. Additionally, the Chicago-based firms plan to pursue co-development and investment opportunities in select markets throughout the United States, targeting properties between $40 million and $120 million. “Since our inception, we have worked tirelessly to unearth opportunity in niche markets — both geographically and in various sectors of commercial real estate — where few other developers have thought to look,” says Tom Scott, CEO of CA Ventures. “Our strategic alliance with The Habitat Co. is one of many relationships we’ve established along the way and will supplement our development and investment expertise with best-in-class management services for which Habitat has been known for the past 45 years.” Habitat will initially oversee operations at the following CA Residential communities, which are in various stages of development: * The Buckler is an 11-story, 207-unit luxury rental community located west of the Milwaukee River in downtown Milwaukee. The development opened in early 2016 and is currently in lease-up. * 8 E. Huron is …

June 9, 2016

Features Top Stories

No Alarm Bells Sounding Yet Over ‘Disappointing’ May Jobs Report

by Jeff Shaw June 9, 2016

Weak job growth in May has dealt an “employment curveball” to the U.S. economy, says Robert Bach, director of research for the Americas at Newmark Grubb Knight Frank. But the longtime economist is quick to add that the latest report from the U.S. Bureau of Labor Statistics (BLS) is an “outlier among a recent string of positive economic news,” including an uptick in both consumer spending and housing prices and a drop in weekly jobless claims. Employers added a meager 38,000 net new payroll jobs last month, according to the BLS, far below the 160,000 jobs forecasted in Bloomberg’s survey of economists. Revisions to March and April data subtracted a combined 59,000 jobs, revealing a three-month trend of slowing job growth. Over the past three months, job gains have averaged 116,000 per month. “If the report is not a quirk, then it suggests the economy, specifically the labor market, may be losing momentum,” says Bach. Employers could be reacting to falling profits and labor productivity, which have been under pressure for some time. It’s also possible that recent hikes in the minimum wage are restraining job formation — although restaurants would be among the first employers to feel the pinch, …

June 9, 2016

Hospitality 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

Conference Coverage Features North Carolina Southeast Top Stories

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

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