Top Stories

SL Green Closes $296M in Financing for New York Commercial Portfolio

by Nellie Day February 22, 2016

NEW YORK CITY — SL Green Realty Corp (NYSE: SLG) has received $296 million in financing for three of the REIT’s New York-based assets. The assets include a Class A office building at 800 Third Ave. in Manhattan; Jericho Plaza, a 662,000-square-foot, two-property complex in Jericho on Long Island; and 719 Seventh Ave. in Times Square, which will eventually serve as a prime retail flagship location. The office building received a new 10-year, $177 million refinancing of its mortgage loan. The property is situated in the Grand Central submarket. It is currently 96 percent occupied. Jericho Plaza received a two-year, floating-rate mortgage to recapitalize the property. The initial funding was about $75 million, with a total expected funding of $100 million. Proceeds will partially be used for a capital improvement plan that includes lobby and elevator cab renovations, the addition of a conference facility and landscaping upgrades. The Times Square project received a two-year, $44 million loan. The proceeds will be used for construction of 10,000 square feet of retail space, as well as extensive LED signage. SL Green expects that construction will be completed before the 2016 holiday season. “The successful completion of these transactions provides evidence that liquidity …

February 22, 2016

Florida Multifamily Seniors Housing Southeast Top Stories

Welltower, CPPIB Acquire Majority Interest in Six-Property Seniors Housing Portfolio in Florida for $555M

by Christina Cannon February 19, 2016

TOLEDO, OHIO AND TORONTO — A joint venture between Welltower Inc. (NYSE: HCN) and Canada Pension Plan Investment Board (CPPIB) has acquired a 97.5 percent interest in a seniors housing portfolio located in Florida for $555 million.The seller was Kayne Anderson, which bought the portfolio in late 2013 for an estimated $400 million from GE Healthcare Finance. Of the 97.5 percent interest that the joint venture acquired, CPPIB owns 45 percent while Welltower owns 55 percent. Discovery Senior Living owns the remaining 2.5 percent and operates the six properties that make up the portfolio. “As a long-term investor, CPPIB provides a large, global alternative capital source to the public markets that enables us to continue driving the evolution of healthcare infrastructure with our unparalleled network of leading health system and seniors housing operating partners,” says Thomas DeRosa, CEO of Welltower. The portfolio, known as Aston Gardens, is comprised of six private-pay seniors housing properties that have a total of 1,930 units. The communities, all located in Florida, include: Aston Gardens at Pelican Marsh in Naples Aston Gardens at Parkland Commons in Parkland Aston Gardens at Sun City Center in Sun City Center Aston Gardens at the Courtyards in Sun City Center Aston Gardens …

February 19, 2016

Georgia Mixed-Use Southeast Top Stories

RCP Cos. Plans to Develop $300M Mixed-Use Project in South Atlanta

by John Nelson February 18, 2016

STOCKBRIDGE, GA. — RCP Cos., a Huntsville, Ala.-based real estate investor and developer, plans to develop a $300 million mixed-use project, known as Jodeco|Atlanta South, in Henry County. Preliminary plans for the mixed-use development in the southern Atlanta suburb of Stockbridge include retail and restaurants, an entertainment hub, amphitheater, outdoor fitness and recreation areas and apartment residences within an urban setting. “Our intention is to craft a new, vibrant community that brings the energy of a high-density, urban design — as well as the options that a larger city might provide — to South Atlanta,” says Max Grelier, chief development officer of RCP Cos. Jodeco will sit adjacent to I-75 at exit 222, one of the first exits south of the I-675 interchange. Situated in the southwest quadrant of the I-75 and Jodeco Road intersection and bordered by Chambers and Mt. Olive roads, the development will include more than 500,000 square feet of local, regional and national retailers, including an organic grocer. A 12,000-square-foot food hall, known as Mt. Olive Market, will be a dining venue within Jodeco where local and regional chefs will serve guests at counters and communal tables. Plans also call for two upscale hotels and an …

February 18, 2016

Features Top Stories

Key To Successful Refinance Is Starting Early

by Katie Sloan February 18, 2016

No one can predict the future, but you can prepare for it. That’s always good advice for investors seeking to refinance their multifamily properties, but it’s particularly apt now. There’s both change and volatility in the air, making planning imperative. Volatile Interest Rates Interest rates have remained at historic lows much longer than most analysts predicted five years ago. Upward pressure has been restrained by a combination of factors that include a slower-than-expected recovery, the strong U.S. dollar and a fight to quality by global investors. However, in December the Fed raised rates for the first time in a decade, albeit modestly. Market observers expect additional increases this year. Meanwhile, investors remain concerned about interest-rate volatility. Last February, the yield on the 10-year Treasury note dropped to 1.68 percent. In June, it rose to 2.50 percent. October saw a dip to 1.99 percent, followed by a November high of 2.34. In the last 12 months, it has not been unusual to see rates jump 20 to 30 basis points in the course of a week. For an investor, the significance of that rise can be measured in the difference between securing a $10 million loan and settling one that’s just …

February 18, 2016

Colorado Hospitality Top Stories Washington Western

ARC Hospitality Buys Six Summit Hotels in Washington, Colorado for $108.3M

by Nellie Day February 17, 2016

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 …

February 17, 2016

Office Top Stories Washington Western

Cornerstone, Schnitzer West to Develop 36-Story Office Tower in Seattle

by Katie Sloan February 16, 2016

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 …

February 16, 2016

Features Top Stories

Outlet Centers Are Morphing into Lifestyle Centers

by Katie Sloan February 16, 2016

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 …

February 16, 2016

Office Top Stories Washington Western

MetLife Purchases Alley24 Mixed-Use Property in Seattle for $129.3M

by Haisten Willis February 15, 2016

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. — …

February 15, 2016

Mixed-Use North Carolina Southeast Top Stories

Federal Capital Partners Sells West Village Development in Durham for $187M

by Christina Cannon February 12, 2016

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 …

February 12, 2016

Mixed-Use North Carolina Southeast Top Stories

Kane Realty, KBS to Develop $100M High-Rise in Raleigh

by John Nelson February 11, 2016

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 …

February 11, 2016

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