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NEW YORK — The delinquency rate for U.S. commercial real loans in commercial mortgage-backed securities (CMBS) fell 14 basis points in January to 9.57 percent, the lowest level in 11 months, according to New York-based analytics firm Trepp LLC, which closely tracks the industry. The improvement also marks the resumption of the downward trend in the rate that began in August 2012. The figure is based on loans 30 days or more past due. Among the five major property types, multifamily loans led the pack with an improvement of 55 basis points in the delinquency rate between December and January, dropping from 13.98 percent to 13.43 percent. The rate on office loans also improved, while the rates on all other major property types were modestly higher. The retail delinquency rate increased by 17 basis points to 7.79 percent, but retail remains the best performing property type (see table). Loan resolutions experienced a slight bump in January, with more than $1.2 billion in loans resolved with losses. The removal of these loans from the delinquent category helped drive the delinquency rate down 22 basis points. Loans that cured put an additional 40 basis points of downward pressure on the rate. There …

MIAMI — Swire Properties Inc. and the owners of Bal Harbour Shops have formed an equity partnership to co-develop the retail component of Brickell CityCentre, a $1.05 billion mixed-use project. The project broke ground in the Brickell Financial District of downtown Miami in 2012 and will include a high-end, 500,000-square-foot retail center. Swire Properties will remain the primary developer of the project, while Bal Harbour will contribute an undisclosed amount of equity and its brand recognition and luxury retail expertise as co-developer of the retail component. “Built over generations, the credibility of Bal Harbour Shops with the luxury retail market, evidenced by the extraordinary sales performance of its center, will be of tremendous value,” says Stephen Owens, president of Swire Properties. Indeed, Miami’s Bal Harbour Shops is considered the world’s most productive luxury shopping center, according to the International Council of Shopping Centers. The Bal Harbour Shops team will bring years of proven experience and relationships with the world’s leading fashion companies to the Brickell CityCentre. Matthew Whitman Lazenby, operating partner at Bal Harbour Shops, says CityCentre’s location in the Brickell area will give it access to tourists as well as affluent local residents. “Knowing Swire Properties for its international …

WEST ORANGE, N.J. — Prism Capital Partners is preparing to kick off construction of the 21-acre Edison Village, a $230 million adaptive reuse project in West Orange Township. The project will feature the addition of 331 residential units, 18,000 square feet of retail space and a parking structure. The project is an industrial-to-residential transformation of the historic Thomas Edison Invention Factory and Commerce Center. The transformation is the largest non-waterfront adaptive-reuse development in New Jersey. The township named Bloomfield, N.J.-based Prism the designated redeveloper of the project back in December 2006. The company completed a large portion of demolition and site work in 2008 prior to the recession and received the go-ahead to resume the development in fall 2012. “Since industrial structures of this type are few and far between in suburban New Jersey, Edison Village truly represents a distinctive project,” says Edwin Cohen, principal partner of Prism. “The design, by Minno & Wasko Architects and Planners, takes advantage of existing architectural features to incorporate ceiling heights ranging from 14 feet to 16 feet and 10-foot windows that will let in abundant natural light.” Thomas Edison constructed the factory complex in 1913, and it served as the manufacturing operation site …

ALPHARETTA, GA. — North American Properties (NAP) began construction Monday on Avalon, a sprawling 86-acre mixed-use development in Alpharetta, an affluent northern suburb of Atlanta. The $600 million project will be built in two phases. Upon completion in August 2014, Phase I will include 370,000 square feet of retail and restaurant space, 250 multifamily units, 101 single-family residences and 83,000 square feet of office space. Phase II will contain a full-service hotel, a boutique hotel and an additional 100,000 square feet of retail. “Today is the culmination of a lot of hard work and countless wins during the past six months,” said Mark Toro, managing partner of Cincinnati-based NAP. “We are excited to share all our progress today and to start demolition and construction. I know the residents of Alpharetta are as eager as we are to begin moving dirt. The wait is over.” NAP received zoning approval for the project from the Alpharetta City Council in April 2012. Since then, the company has received commitments from 34 retail and restaurant tenants to occupy space at the development. Avalon is 50 percent leased by tenants including a 14-screen Regal Cinemas, Whole Foods, Anthropologie, Marlow’s Tavern, fab’rik and Banana Republic. Another …

VALLEY STREAM, N.Y. — The Macerich Co. (NYSE: MAC) has completed its $500 million acquisition of the Green Acres Mall in Valley Stream, closing a deal that's been in the works since last October. The shopping center owner and manager purchased the property from a subsidiary of New York-based Vornado Realty Trust. Vornado reported net proceeds from the sale were approximately $185 million following its repayment of the existing loan and closing costs. The 1.8 million-square-foot Green Acres Mall is located on the border of New York and Nassau County and serves customers in southeast Queens and southwest Nassau County. Anchor tenants include Macy's, Sears, Kohl's, BJ's Wholesale Club and Walmart. The super regional mall was renovated and expanded in 2007, and the mall's annual sales production exceeds $520 per square foot. The mall is 94 percent leased to tenants such as Aeropostale, American Eagle, Forever 21, H&M and Modell's sporting goods. Macerich funded its purchase with a $325 million, fixed-rate loan at an eight-year term, with the rest coming from a mix of cash on hand and Macerich's existing line of credit. After the deal was first announced last year, Macerich CEO and Chairman Arthur Coppola said the transaction …

BOSTON — The Roseland subsidiary of Mack-Cali Realty Corp. (NYSE: CLI) has broken ground on the $67 million Portside at Pier One, the residential component of a mixed-use community along the East Boston waterfront. The five-story building adjacent to the pier will include 150 market-rate units and 26 affordable units. The apartment community will feature a fitness center, business center, theater room, controlled access garage parking and 12-hour concierge services. The entire mixed-use development will include approximately 566 apartments and 70,000 square feet of ground-level retail space. Mitchell Hersh, president and CEO of Mack-Cali, says, “We are delighted to see this much-anticipated project get under way. The extraordinary public and residential aspects of this community, including an expanded marina and shipyard, world class waterfront park, and magnificent views of the downtown Boston skyline, will all combine to energize the East Boston waterfront.” The 176-unit apartment community is a joint venture with The Prudential Insurance Co., and is supported by a construction loan commitment led by Citizens Bank with participation by Salem Five. Boston-based Salem Five is a mutual savings bank that was founded in 1855. Roseland will oversee the leasing and management of the property. Mack-Cali, based in Edison, N.J., …

SAN FRANCISCO — Drawbridge Realty Trust has acquired four office buildings in San Diego County and Silicon Valley in three separate transactions totaling $73 million. The acquisitions add more than 227,600 square feet to Drawbridge Realty’s portfolio, which includes 1.8 million square feet across the western United States. The recent purchases occurred after the privately held San Francisco-based real estate investment and development firm received a $150 million capital infusion from Almanac Realty Investors in September 2012. Three properties were purchased in San Diego submarkets. Two buildings of the Discovery Corporate Center campus, located at 11020 Via Frontera Drive and at 16465 Via Esprillo in Rancho Bernardo, were acquired for $53 million. The two properties are leased to Broadcom Corp. and comprise 137,438 square feet. Menlo Equities LLC was the seller. No brokers were involved in the off-market transaction. Drawbridge Realty also acquired a vacant life sciences building in San Diego County’s Sorrento Mesa area, located at 6550 Nancy Ridge Drive. The 24,117 square-foot building was acquired for approximately $2 million and will be redeveloped to attract a corporate user. The company increased its Northern California holdings by acquiring a two-story office building in Santa Clara. The property, which is …

BOSTON — Mack-Cali Realty Corp. (NYSE: CLI), an Edison, N.J.-based REIT, has acquired Alterra at Overlook Ridge IA for approximately $61.3 million and Alterra at Overlook Ridge IB for approximately $88.7 million. The two properties are luxury multifamily communities containing 722 units in the master-planned community of Overlook Ridge in Revere in metro Boston. A subsidiary of Roseland, which Mack-Cali recently acquired, developed Alterra IA in 2004 and Alterra IB in 2008. The subsidiary has managed the properties since completion. “The acquisition of Alterra perfectly complements our recent acquisition of the real estate development and management businesses of Roseland and its imminent development interests at Overlook Ridge,” says Mitchell Hersh, president and CEO of Mack-Cali. “We expect to place mortgage financing on the property that will provide a cash-on-cash yield in excess of 9 percent.” A joint venture including Prudential Insurance Co. of America sold the two properties, which are 97.2 percent occupied. Mack-Cali expects the transaction to close in early April when the loan that encumbers the property opens for prepayment. The two Class A communities feature heated outdoor pools, fitness centers, lounges, business centers, cinema screening rooms and direct-access parking garages. The communities are located five miles north …

SCOTTSDALE, ARIZ. — In a blockbuster transaction, Spirit Realty Capital Inc. (NYSE: SRC) and Cole Credit Property Trust II (CCPT II) have entered into a merger agreement that will create a company with 2,012 properties in 48 states. The new entity will become the second largest publicly traded triple-net-lease real estate investment trust (REIT) with a pro forma enterprise value of approximately $7.1 billion. The combined company will retain the Spirit Realty name and trade on the New York Stock Exchange under the ticker symbol “SRC.” The current management team of Spirit Realty will lead the combined company. The deal is expected to close in the third quarter of this year. As a result of the merger, the company will have a more broadly diversified portfolio of real estate assets and enhanced access to capital. Scottsdale, Ariz.-based Spirit Realty’s portfolio consists of single-tenant, triple-net-lease properties in the retail and distribution industries. CCPT II primarily invests primarily in freestanding, single-tenant buildings that are typically necessity retailers including drugstores, family restaurants and home improvement stores. “This merger significantly accelerates Spirit Realty’s business strategy and better positions us to deliver long-term value to our shareholders,” says Thomas Nolan, chairman and CEO of Spirit …

ATLANTA — Atlanta-based real estate company ST Residential says it plans to sell a portfolio of 13 multifamily properties in eight states, which are valued at $1 billion. The properties are located in Atlanta, Chicago, Houston, Las Vegas, Los Angeles, Phoenix, Stamford, Conn., and Tampa. ST Residential, a partnership between the FDIC and a group of private U.S. real estate investors, acquired the portfolio in October 2009 from Corus Bank. Since the sale, the company has repositioned the properties and upgrades included redesigning the landscaping, sales centers and model units. The portfolio's occupancy (on stabilized assets) has reached 98 percent. “ST decided to sell now to capitalize on historically low cap rates for high-quality, condo-finish apartments,” says Jonathan Pertchik, chief operating officer at ST Residential. “Also, after four years a majority of the assets have been realized, and selling a large tranche now fits in nicely within the expected life cycle of the portfolio.” Barry Sternlicht, chairman of ST Residential and chairman and CEO of Starwood Capital Group, says the portfolio transaction has performed very well for the FDIC and the company's private investor group. “The partnership has repaid $1.3 billion of FDIC purchase money notes and has more than …