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NEW YORK CITY — Gotham Organization, Inc., has broken ground on a $520 million, 1,238-unit residential development in Manhattan, containing almost an entire city block. The project spans West 44th to West 45th streets from 10th to 11th Avenues. Included in the project are 556 luxury apartment units and 682 affordable housing units, divided among four buildings, as well as a sky terrace, a 10,000-square-foot interior courtyard, 15,000 square feet of retail space and 200-space parking garage. There will also be a total of 10,000 square feet of indoor recreational use, which will include two gyms, two playrooms, a lounge with a game room and demonstration cooking kitchen, as well as a smaller lounge. A 31-story tower, located at the corner of 45th Street and 11th Avenue will contain the luxury apartments, with the affordable housing apartments in three additional buildings. “The site was part of the Hudson Yards rezoning in 2005,” said Melissa Pianko, executive vice president of development for Gotham and the project manager. “Part of that was an agreement with the community board and the city of New York that the site would have at least 600 units of permanent affordable housing. The rest of it was …

Job growth is proceeding at an “agonizingly slow pace,” observes Victor Calanog, head of research and economics for New York-based Reis. This raises the big question: What is the short-term outlook for commercial real estate? “With the exception of apartments, which are in a full-scale recovery, commercial real estate will follow a similar pattern of gradual improvement in occupancies with meaningful rent growth not emerging until 2013-2014,” says Hessam Nadji, managing director of research for Encino, Calif.-based Marcus & Millichap. Inside the numbers The U.S. economy added 80,000 non-farm payroll jobs in October, the Labor Department reported Friday. While that figure was below economists’ expectations of at least 90,000 jobs, the figures for August and September were revised upward by 102,000. Trade, transportation and utilities led in October with a gain of 35,000 jobs, about half of which were in retail trade; professional and business services added 32,000, including 15,000 temporary positions; education and health services added 28,000 jobs; and leisure and hospitality gained 22,000. Average weekly hours were unchanged at 34.3 and average hourly earnings rose 0.2 percent in October. The latest job figures coupled with recent news that U.S. gross domestic product expanded at an annualized rate of …

WASHINGTON, D.C. — In the third quarter, there was a 98 percent increase in commercial and multifamily loan origination volume compared to the third quarter of last year and a 10 percent increase compared to the second quarter of this year, according to the Mortgage Bankers Association’s (MBA) “Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.” “Lending on commercial and multifamily properties continues,” said Jamie Woodwell, vice president of commercial real estate research at MBA, in a statement. “Mortgage originations by life company portfolios hit another new record in the third quarter, and lending by bank portfolios and Fannie Mae and Freddie Mac also picked up. Mortgage originations for the CMBS market, which was caught up in the global economic uncertainty of recent months, declined from last quarter, but were higher than last year’s third quarter level.” According to the survey, most property types saw an increase in activity in the third quarter of this year compared to last year. Hospitality had the largest increase in loans at 406 percent. Retail loans followed with 164 percent and office loans were third with 103 percent. Additionally, multifamily loans were up 39 percent. Two commercial sectors had a decrease in activity. Health care …

The on-again, off-again European debt crisis coupled with investor concerns over a potential pricing bubble for trophy properties in the U.S. has taken a toll on the commercial mortgage-backed securities (CMBS) market. As bond investors demanded higher yields for perceived higher risks in the third quarter, loan originations tapered off. The turbulence is creating an additional problem. The delinquency rate for CMBS loans rose 21 basis points to 9.77 percent in October, the second highest level ever, according to New York-based Trepp LLC. Only the 9.88 percent reading in July of this year was higher. After dipping significantly in August, the delinquency rate has now increased for two straight months. Trepp considers a loan delinquent if it is 30 days or more past due. The lodging sector experienced the biggest setback with the delinquency rate rising from 13.30 percent in September to 14.12 percent in October. The multifamily sector, which most investors are bullish on because of favorable demographics and the meltdown of the single-family home market, still has the highest delinquency rate at 16.73 percent (see table). “The hope always is that the CMBS market's health will result in some of the loans on the cusp actually refinancing their …

NEW YORK CITY — In spring 2012, construction will begin on the $400 million renovation of the 2.2 million-square-foot Macy’s flagship store, located at Herald Square in New York City. The four-year project, which will create 1,600 construction-related positions, is slated for completion in the fall of 2015. The iconic flagship store opened in 1902 on the corners of Broadway and 34th Street, and Seventh Avenue and 34th Street. Three phases of expansion occurred between 1902 and 1931, when the store reached its current size. The renovation will impact both the interior and the exterior of the building. Highlights of the remodel include: – A 100,000-square-foot expansion of selling space, to total 1.2 million square feet. – Creation of a 63,000-square-foot women’s shoe department (including stockrooms). It will be the largest women’s shoe department in the world. – Expansion of men’s merchandise, which will span 200,000 square feet on seven floors upon completion. – A 1,100-seat table-service restaurant on the sixth floor with window access to Broadway and views of the Empire State Building and Midtown Manhattan. – The addition of home merchandise on the eighth and ninth floors, including a demonstration kitchen and De Gustibus Cooking School. – Addition …

ATLANTA — The Georgia Department of Transportation has selected Forest City Real Estate Asset Services, a subsidiary of Forest City Enterprises, to spearhead a 119-acre, transit-oriented development in downtown Atlanta. Forest City will work on the project in a public/private partnership with Cousins Properties Inc. and The Integral Group, both based in Atlanta. Emerick J. Corsi, Jr., president of real estate asset services for Forest City, said in a statement that Forest City’s role will be to coordinate the planning, engineering and architectural activities, as well as to facilitate stakeholder involvement in the multi-modal passenger terminal project. The firm has signed a 20-month contract to work on the master planning. The development site is the area known as the “Gulch,” which is located near Phillips Arena, the Georgia Dome and the World Congress Center in Atlanta. In addition to connecting the Metropolitan Atlanta Regional Transit Authority’s rail and bus lines, as well as other regional bus systems and retail networks, the project will contain a commercial element as well. Although no firm plans have been revealed, Corsi said, “We are thrilled to be part of a project team that will energize and connect downtown Atlanta. We envision a project that …

BETHLEHEM, PA. — Malvern, Pa.-based Liberty Property Trust has started construction on a $62 million, 1.2 million-square-foot, speculative, sustainable warehouse, located in Lehigh Valley Industrial Park at the crossroads of Route 412 and Commerce Center Boulevard in Bethlehem. The property is a brownfield redevelopment project, and will add more than 300 construction jobs to the area. Through the inclusion of wall insulation, roof insulation, high output T-5 lighting with motion sensors and more, Liberty anticipates the property will achieve LEED Core & Sheel and Energy Star certifications. “As we work with tenants looking to expand or relocate in the Lehigh Valley, two themes keep repeating,” said Bob Kiel, senior vice president of Liberty Property Trust, in a statement. “First, there are not enough large warehouse spaces available in the region. This project is very exciting because it creates that needed space while redeveloping an existing brownfield site. Second, it replaces that site with a highly efficient LEED and Energy Star certified location that will save the eventual tenants 35 percent or more in energy costs when compared with traditional buildings — real operational savings prospects are seeking.” Liberty Property Trust owns and manages more than 17 million square feet of …

HERNDON, VA., AND FORESTVILLE, MD. — Multi-Employer Property Trust (MEPT), in conjunction with Bentall Kennedy, has purchased two shopping centers in the Washington, D.C., metro area for $122.6 million. In Herndon, MEPT acquired the 137,028-square-foot Woodland Park Crossing, located on Sunrise Valley Drive, from JBG Rosenfeld. Harris Teeter anchors the center, which is 97.5 percent leased to tenants including Starbucks, Panera Bread, Pei Wei, Capital One Bank, Bubble’s Hair Salon, Medifast, Moe’s Southwest Grill, Finnegan’s Bar & Grill and Moby Dick. Woodland Park Crossing is part of a mixed-use development and is adjacent to the 2 million-square-foot Woodland Park Office Park and the 200-unit Monroe Place Apartments. JBG Rosenfeld Retail will lease and manage the property. Eastdil Secured represented the seller in the transaction. In a separate transaction, MEPT purchased the 387,028-square-foot Penn Mar Shopping Center, located at 2950 Donnell Dr. in Forestville, from a partnership between Rappaport Cos. and Lehrco. Shoppers Food & Pharmacy anchors the 95 percent-leased center. Other tenants include Burlington Coat Factory, Dollar Tree, Staples, Party City and Petco. Rosenthal Properties will lease and manage Penn Mar Shopping Center. Bill Kent of CBRE’s Washington, D.C., office represented the seller in the transaction. “We believe consumer demand …

HOUSTON AND LEAGUE CITY, TEXAS — Inland Real Estate Acquisitions, on behalf of Inland American Real Estate Trust, has acquired a five-property retail portfolio from NewQuest Properties for $172 million. Total, the properties, which are located in Houston and League City, add 710,000 square feet to Inland’s portfolio. The properties included in the portfolio are: – Antoine Town Center in Houston. One pad was added to a center Inland American already owns. – Cy Fair Town Center in Houston. The center is fully leased and adds 177,064 square feet to a center Inland already owns. – Eldridge Lakes in Houston. The fully leased center adds 45,000 square feet to a center Inland American already owns. – Bay Colony Town Center in League City. It is currently 95 percent occupied and adds 121,000 square feet to a center Inland American already owns. – Victory Lakes Town Center in League City. The 367,000-square-foot center, which is 90 percent leased, is a new acquisition for Inland. “Inland has been very active in the retail space for the last 15 to 20 years,” said Jeff Manno, vice president of asset management for Inland American HOLDCO. “Inland American, which is the REIT that acquired these …

ARLINGTON, VA. — Monument Realty has completed several important steps in order to break ground in November for the 322,000-square-foot Monument View, a build-to-suit project for The Boeing Co. to consolidate its Arlington operations. Recently, the company, along with its investment partners, New York-based Atlas Capital Group and Square Mile Capital Management, secured $116.54 million in construction financing through RBS Citizens, N.A. and Sovereign Bank. Additionally, a major site plan amendment permitting the construction of the development was approved by Arlington County Board. The board also approved up to 131,000 square feet of future expansion space on the site. Gensler designed the project and James G. Davis Construction Corp. has been secured as the general contractor. Monument View is located across from the Pentagon along Old Jefferson Davis Highway between 6th Street South and 10th Street South in Arlington. “The Monument View project demonstrates again Monument’s ability to bring complicated real estate transactions to fruition,” said Michael Darby, principal and founder of Monument, in a statement. Monument and Arlington County have also completed the exchange of Monument’s Boundary Channel Drive site and Arlington County’s Crystal City site, where Monument View will be located. The exchange was initially announced in 2005 …