Top Stories

The Crown Building in New York Sells for $1.78B

by Haisten Willis April 23, 2015

NEW YORK — General Growth Properties Inc. (NYSE: GGP), along with billionaire investor Jeff Sutton, Vladislav Doronin’s Capital Group and real estate developer Michael Shvo, has acquired The Crown Building, located at 730 Fifth Avenue in New York City, for $1.78 billion. The Crown Building is a 26-story retail and office property located on the southwest corner of 57th Street and 5th Avenue in the Plaza District in midtown Manhattan. The acquisition was partially funded with $1.25 billion of secured debt. GGP and Sutton will own, redevelop, lease and manage the retail portion of the property. The retail portion, which totals approximately 100,000 square feet, is currently occupied by tenants such as Bulgari, Piaget and Mikimoto. Over the past 25 years, Sutton has amassed over 120 properties in prime locations throughout New York City. Sutton’s acquisitions include the purchase of 724 Fifth Avenue, 720 Fifth Avenue, 717 Fifth Avenue, 650 Fifth Avenue, 609 Fifth Avenue and 509 Fifth Avenue. Capital Group and Shvo will redevelop, lease and manage the office tower from floors four through 26, comprising approximately 290,000 square feet. The office tower will be redeveloped into luxury residential condominiums. According to media reports, the sales price of approximately …

April 23, 2015

Trepp: Future Unclear for Retail Sector Amid Wave of Maturing CMBS Loans

by Jeff Shaw April 23, 2015

NEW YORK — The retail real estate sector is experiencing an uptick in performance much like the rest of the U.S. economy, but with a murkier future due to a wave a maturing CMBS loans and continued uncertainty of retail’s future in an increasingly online marketplace, according to data analytics firm Trepp LLC. The delinquency rate for CMBS retail loans 30 days or more past due dropped 22 basis points to 5.38 percent in February, which compares favorably with other property types. The delinquency rate for office loans, for example, was 6.15 percent. The delinquency rate on CMBS retail loans is now down 286 basis points below the peak set in March 2012. However, part of the reason retail leads the march downward on delinquency rates, the report says, is that lenders were not as patient with retail during the economic recovery, choosing to foreclose on borrowers more quickly than in other sectors. “Retail delinquencies recovered more rapidly than other major property types, as special servicers were faster to cut their losses and foreclose on distressed retail properties, as opposed to the ‘extend and pretend’ approach taken with a lot of large office and multifamily loans during the slow recovery,” the report says. …

April 23, 2015

Top Stories

Meridian Capital Group Arranges $325M Loan for Leasehold Office Property Purchase

by Danielle Everson April 22, 2015

NEW YORK, N.Y. — Meridian Capital Group has arranged $325 million in acquisition financing for the purchase of the leasehold interest in an office property located in New York. Meridian arranged the financing for the borrower, RXR Realty LLC. GE Capital provided the five-year loan, which includes a fixed interest rate below 3 percent and interest-only payments for the full term. Rael Gervis of Meridian Capital Group’s New York City headquarters negotiated the financing. The 36-story office property was built in 1987 and is located at 32 Old Slip between Front and South streets. Architect Edward Durell Stone & Associates designed the 1.2-million-square-foot, Class A office tower. The property’s largest tenant is American International Group, whose 260,000-square-foot lease expires at the end of 2017. Other tenants in the building include Daiwa Capital Markets America, Crystal & CO., the U.S. Department of Education and the United States Census Bureau. 32 Old Slip is located on the Manhattan waterfront directly across from the Pier 11 ferry terminal. The property is within a short walking distance from several subway lines and the Staten Island ferry. The office tower also includes unobstructed views of the East River, Downtown Brooklyn and New York harbor. RXR …

April 22, 2015

Top Stories

Bell Partners Buys Apartment Community in Denver Metro for $250M

by Scott Reid April 21, 2015

SUPERIOR, COLO. — Bell Partners Inc. has acquired the 1,206-unit garden apartment community Horizons at Rock Creek in Superior for $250 million and renamed it Bell Flatirons. Bell Partners will manage the property. Simpson Housing LLLP was the seller of the community, which was built between 1997 and 1999. According to a release, the transaction was one of the largest individual multifamily transactions in Colorado history. Superior is located between Denver and Boulder, seven miles southeast of the University of Colorado Boulder. “This acquisition is consistent with our strategy to expand our footprint into high-growth, liquid and institutionally desirable markets that have compelling economic and apartment growth fundamentals,” says Jon Bell, president of Bell Partners. Bell Flatirons consists of three phases, Watters Edge, Prairie’s End and Cross Creek. The largest phase, Watters Edge consists of 586 units and is mainly townhomes and apartments with one- and two-car attached garages. Prairie’s End (360 units) and Cross Creek (260 units) are traditional garden apartments, each apartment home featuring its own garage. The community’s amenities include a 24,000-square-foot luxury clubhouse with an indoor basketball court, two racquetball courts, a movie theater and a large fitness room. The community also has a beach, a …

April 21, 2015

Features Top Stories

DTZ: Despite Economic Challenges, Industrial Growth Robust in First Quarter

by Jeff Shaw April 21, 2015

WASHINGTON, D.C. — Even in the face of economic turbulence in the general U.S. economy caused by cold weather and labor issues in West Coast ports, the country’s industrial sector remained unfazed and continued its growth during the first quarter of 2015, according to a report from real estate services firm DTZ. The U.S. industrial sector saw net absorption of 38.8 million square feet — almost identical to the previous quarter’s number, and a 20.5 percent year-over-year increase. “Since 1993 — the first year DTZ started tracking quarterly data — there has never been stronger demand as there is currently,” DTZ writes in the report. “Over the past four quarters, more than 169 million square feet of industrial space have been absorbed.” Vacancy, meanwhile, continued its years-long free-fall, hitting 7.6 percent. That’s 10 basis points down from fourth-quarter 2014, 60 basis points lower than the same time last year, and 110 basis points below the 25-year average of 8.7 percent. Asking rents increased to $5.35 per square foot triple net and are now 4 percent higher than in the first quarter of 2014, despite delivery of 35.8 million square feet of new space. There is 107.3 million square feet of …

April 21, 2015

Top Stories

Prologis to Acquire Competitor KTR Capital Partners for $5.9B

by John Nelson April 20, 2015

SAN FRANCISCO AND NEW YORK — Prologis Inc. (NYSE: PLD), a global owner and developer of industrial real estate, has signed definitive agreements to acquire the real estate assets and operating platform of KTR Capital Partners (KTR) and its affiliates for a total purchase price of $5.9 billion. Prologis has obtained a commitment from Morgan Stanley Senior Funding Inc. to provide a $1 billion bridge loan for the transaction. The 60 million-square-foot operating portfolio comprises 322 industrial properties in markets such as Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas. The acquisition also includes 3.6 million square feet of industrial properties that are currently under construction and a well-located land bank with a build-out potential of 6.8 million square feet. The properties comprise KTR’s three co-investment funds and will be acquired by Prologis U.S. Logistics Venture (USLV), a 55-45 consolidated joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global. “It is rare to have the opportunity to acquire a portfolio of such high asset quality, customer profile and market composition that is so consistent with our own,” says Hamid Moghadam, chairman and CEO of Prologis. “I have known KTR’s leadership for …

April 20, 2015

Top Stories

BFC Partners Breaks Ground on Empire Outlets on Staten Island

by Nellie Day April 17, 2015

NEW YORK — BFC Partners has broken ground on Empire Outlets, a 340,000-square-foot retail complex with a total of 100 designer outlet stores on the North Shore of New York’s Staten Island. The project will be situated near the Staten Island Ferry Terminal and the Richmond County Bank Ballpark, home of the minor league Staten Island Yankees, in St. George. The new development will also include a 190-room hotel and a 1,250-space parking garage. The parking structure will be located below the retail and hotel components. A number of open corridors and pedestrian walkways that lead to the water will also be integrated into the project, which is slated for completion next year. It is being designed by SHoP Architects. “Empire Outlets is a well-timed catalyst that will trigger the transformation of the North Shore and position Staten Island for sustained growth into the foreseeable future,” says Donald Capoccia, a principal at BFC Partners. “This project will be a dynamic economic engine for New York City, creating more than 1,800 construction and permanent jobs that will benefit its residents, businesses, cultural and community organizations for generations to come.” Notable retailers that have signed onto the project so far include Nordstrom …

April 17, 2015

Brookfield to Begin Construction on $2.1B Manhattan Office Tower Following Anchor Tenant Signing

by Scott Reid April 16, 2015

NEW YORK — Brookfield Property Partners LP (NYSE: BPY) will begin construction on the $2.1 billion One Manhattan West, a 2.1 million-square-foot office tower, following the signing of a 20-year lease with the Skadden, Arps, Slate, Meagher & Flom LLP (Skadden) law firm as anchor tenant. Skadden will move from Times Square to occupy 550,000 square feet of office space on floors 28 to 43 of the tower located at Ninth Avenue and 33rd Street, which is the first of two commercial buildings planned for Brookfield’s five-acre development, Manhattan West. When complete, the $4.5 billion Manhattan West development will include two new Class A office towers, retail, rooftop gardens, restaurants and cafes, and a luxury residential building, comprising 7 million square feet. A two-acre public park will cut through the site. Wells Fargo Bank, N.A., Deutsche Bank AG New York Branch, The Bank of New York Mellon and The Toronto-Dominion Bank are co-leading $1.25 billion in construction financing for the office tower. Brookfield is investing $850 million in the project, bringing the total cost of the project to $2.1 billion. “When this building opens in 2019, it will be home to Skadden and other exceptional companies from New York and …

April 16, 2015

Features Top Stories

Seniors Housing Occupancy Dips in First Quarter Due to Weak Absorption, Supply Increase, Says NIC

by Haisten Willis April 16, 2015

ANNAPOLIS, Md. — The occupancy rate in the U.S. seniors housing sector — which includes both independent and assisted living — registered 90.2 percent during the first quarter of 2015, down 20 basis points from the prior quarter, according to the National Investment Center for Seniors Housing & Care (NIC). Still, the occupancy rate is 3.3 percentage points above its cyclical low of 86.9 percent reached during the first quarter of 2010. All statistics are based on data from 31 top markets in the U.S. At majority independent living properties, the occupancy rate was unchanged at 91.2 percent, maintaining the highest rate since late 2007. Annual rent growth for majority independent living accelerated to 2.7 percent, the fastest rate since late 2009. “Majority independent living properties have benefited from relatively moderate levels of new units being delivered into the market,” says Chuck Harry, managing director and director of research for Annapolis-based NIC. “Strong occupancy levels have started to put upward pressure on rent growth.” Meanwhile, the occupancy rate at majority assisted living properties came in at 88.7 percent during the first quarter of 2015, down 60 basis points from 89.3 percent at the close of 2014 and 20 basis points …

April 16, 2015

Top Stories

PREIT, Macerich Plan to Redevelop and Rebrand The Gallery in Philadelphia for $235M

by Haisten Willis April 15, 2015

PHILADELPHIA — Pennsylvania Real Estate Investment Trust (PREIT) (NYSE: PEI) and The Macerich Co. (NYSE: MAC) have reached a tentative agreement with the city of Philadelphia on a redevelopment and rebranding of The Gallery shopping mall and transit center in Philadelphia’s Center City district. If approved by Philadelphia City Council, the Philadelphia School Reform Commission and the Philadelphia Redevelopment Authority, The Gallery will be rebranded as the Fashion Outlets of Philadelphia at Market East following a two-year renovation that will open the site to Market Street. “We believe that the proposed redevelopment will position The Gallery as the next great urban marketplace in the United States, capitalizing on its central location where mass transit, tourism, the residential population and employment bases converge,” says Joseph Coradino, CEO of PREIT. “The redeveloped property will become the foundation of a new, vibrant Market East District, and we are excited to lead this effort.” The project will offer a combination of outlet retail in the form of luxury and moderate brands, traditional mall retail, flagship retail, artisanal food experiences and entertainment offerings. “The exciting plans for The Gallery are a strong strategic fit for Macerich’s proven redevelopment expertise, our leadership in the growing outlet sector and …

April 15, 2015

Newer Posts

Older Posts