CINCINNATI — Phillips Edison – ARC Shopping Center REIT Inc., a publicly-registered, non-traded REIT focused on grocery-anchored neighborhood and community shopping centers, has entered into a joint venture between itself and clients of the CBRE Global Multi Manager group, the private equity indirect investment division of CBRE Investors. The venture, named PECO-ARC Institutional Joint Venture I, plans to invest approximately $102 million of equity to acquire more than $200 million of grocery-anchored neighborhood and community shopping centers throughout the United States. The venture hopes to capitalize on acquisition opportunities and the traffic-driving ability of grocers to produce favorable risk-adjusted returns for their investors. “We believe this joint venture is a game changer for the REIT,” said Mark Addy, chief operating officer for Phillips Edison – ARC Shopping Center REIT. “Not only does this speak to our ability to strategically place and manage capital, but it also reflects the CBRE Global Multi Manager team’s support of our investment strategy, which is that shopping centers anchored by top-performing grocers provide stable long-term returns for investors. Since this joint venture allows us to double our purchasing power immediately, we expect to be able to double the REIT’s portfolio by the end of the …
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ATLANTA — On Tuesday at InterFace Conference Group and Morris, Manning and Martin LLP’s Commercial Real Estate Investment & Finance 2012 conference in Atlanta, experts from around the industry shared thoughts and perspectives on the state of the commercial market both from a finance and development standpoint. Below is a short summary of the second half of the conference with some key themes from each session. You can read more about the morning’s sessions here. Restructuring & Recapitalization: What Will Your Lenders Agree To? The panel members discussed the roles of banks and CMBS lenders in restructuring and recapitalizing debt, including the motivations for banks to restructure versus foreclosing. Ron Glass, principal of GlassRatner Advisory & Capital Group, spoke about the difference between big banks and smaller banks in response to non-performing loans. The mediator, Ann Hambly, CEO and president of 1st Service Solutions, said that in dealing with lenders, it's important to know who you're talking to, which is especially difficult to determine in the CMBS realm. Michael Hartman, director of Reznick Capital Markets, spoke about keeping in mind what the asset or property can bear in terms of financing. The panel members discussed distressed assets and how some …
ATLANTA — InterFace Conference Group and Morris, Manning and Martin LLP hosted the Commercial Real Estate Investment & Finance 2012 conference yesterday at The Grand Hyatt in Atlanta. More than 400 attendees from around the country converged to discuss various aspects of finance and investment in the commercial markets. Below is a short summary of the conference with some key themes and quotes from each session. Stay tuned tomorrow for highlights from the second half of the Conference, and keep an eye on REBusinessOnline’s “Feature Article” section and France Media’s other newsletters (www.francemediainc.com/newsletters) for more in-depth coverage of each topic. Please click here for more information on the event and InterFace Conference Group. Featured Speaker, Dr. Carl Hudson, Ph.D., director of the Center for Real Estate Analytics and Federal Reserve Board of Atlanta: Dr. Hudson spoke about the key challenges and headwinds commercial real estate is facing. He said a lack of job growth, the refinancing gap and the concern about credit quality are the main factors stalling recovery. Also, a lack of consumer and business confidence is stalling growth. However, he said the commercial real estate market is not likely to affected as strongly due to these factors as …
PHILADELPHIA — Jones Lang LaSalle’s Capital Markets team has closed the $143.5 million sale of 1700 Market Street, a Class A trophy office building located in Center City Philadelphia. The 841,172-square-foot building, situated in the heart of Philadelphia’s central business district at the corner of 17th Street and Market, also includes an attached five-story, 761-car parking garage. Pearlmark Real Estate Partners, formerly Transwestern Investment Company, sold the building to a partnership formed by David Werner. Jones Lang LaSalle, in conjunction with Meridian Capital, also arranged a senior mortgage and mezzanine financing of $123 million through UBS for the new buyer. Jones Lang LaSalle’s International Director Tom Beneville, Senior Vice President Jerry Kranzel and Vice President Mike Carpenter led the team on this deal. Senior Vice President Dustin Stolly arranged the financing along with Meridian Capital’s Managing Director Ronnie Levine. “This is one of the largest office property sales in almost 4 years and will set pricing expectations in Philadelphia's CBD for the next investment cycle,” said Beneville. “Philadelphia is an exceptionally strong market with a stable and growing economy. As a result, many buyers expressed interest in 1700 Market, including REITs, pension funds and international investors.” “This trophy quality asset …
NEW YORK CITY — Fitch Ratings released a report analyzing net operating income (NOI) for United States commercial properties, showing minor improvements since year-end 2008. That being the case, commercial property performance will slowly stabilize and report slight improvements for 2011. Nonetheless, one year of positive NOI trend does not mean a full recovery, said Fitch Senior Director Adam Fox. “While the upswing is encouraging, net operating income is still outweighed by prior declines,” said Fox. Commercial property net operating income (NOI) is still down by 1 percent overall from year-end 2009 to year-end 2010. However, NOI has shown an improvement from the prior year-of-year decline of 5 percent. Drilling down into specific property types, hotels have seen the largest performance declines over the last two years, with NOI dropping 29 percent between 2008 and 2010; however, that number is due to the daily reset of overnight rates, which make hotel properties the most vulnerable to performance declines. Conversely, multifamily properties have only declined 1 percent over the same 2-year period. Below are results of Fitch's analysis of year-over-year NOI changes by property type for year-end 2008 to year-end 2009, year-end 2009 to year-end 2010, and finally, the full term, …
MINNEAPOLIS — Cushman & Wakefield and NorthMarq Real Estate Services have reached an agreement to create a joint venture and merge their operations in Minnesota. The new venture, which will operate as Cushman & Wakefield/NorthMarq Real Estate Services, will become the region’s largest brokerage, property and facilities management firm when the deal closes, expected to occur on September 30, 2011. The new organization will combine employees from both offices, becoming one of the largest firms of its kind in the U.S., with more than 500 employees. In addition, the venture will be the region’s largest property and facility management firm, with more than 55 million square feet of properties under management in the region, as well as the region’s largest brokerage company, with more than 80 brokerage professionals. NorthMarq Real Estate Services will be the venture’s majority partner, and Jeff Eaton, president of NorthMarq Real Estate Services (pictured at left), will lead the new venture. “The creation of this joint venture supports the long-term strategic plan we launched in 2008,” Eaton said in a statement. “This unique shared ownership structure creates strong alignment of interests between the companies and allows full access to corporate resources. We are excited about the …
MINNEAPOLIS — Opus Development Corporation has plans to build Nicollet Residences, a new high-rise luxury apartment building in downtown Minneapolis, located at the corner of Nicollet Mall and South 5th Street. The 33-story luxury apartment building will be the first new high-rise rental building in downtown Minneapolis in nearly 30 years, and it will be designed to achieve LEED certification. “Opus has become very active in the multifamily development sector as market fundamentals have improved,” added Dave Menke, senior vice president and general manager of Opus Development Corporation. Executives planning the Nicollet Residences also led the team that developed the 39-story Carlyle and 27-story Grant Park condominium projects, the first new high-rise condos in downtown Minneapolis in nearly three decades as well. “Nicollet Residences will offer a San Francisco or New York-type luxury high-rise apartment living experience that will be the first of its kind in Minneapolis,” added Tom Lund, vice president, real estate development of Opus Development Corporation. Building amenities will include a 24/7 door attendant and concierge service, an outdoor roof terrace with pool and spa, a fitness center, yoga studio, private theater, outdoor fire pit and grilling, guest suites, 9- to 10-foot ceilings with floor-to-ceiling glass and …
CHICAGO — A consortium of investors led by BDT Capital Partners — which also includes Zeller Realty Group, and Eric Lefkofsky and Brad Keywell personally, as minority investors — has purchased the 460,000-square-foot Wrigley Building in downtown Chicago from The Wm. Wrigley Jr. Company. The sale includes both the Wrigley Building and 443 Wabash, an adjoining 1.5-acre lot. The price and terms of the deal are not being disclosed. The Wrigley Company will continue to lease space in the building through the end of 2012, while it relocates its Global Headquarters to the company’s campus on Goose Island. Neither Groupon nor any of the companies affiliated with Lightbank, co-founded by Lefkofsky and Keywell, have immediate plans to relocate into the Wrigley Building. The terms of transaction retain the building’s name in perpetuity. The transaction was supported by Jones Lang LaSalle and DLA Piper. “The Wrigley Building is an iconic Chicago asset in a premier Chicago location on Michigan Avenue and is a meaningful symbol of the city’s rich history and growth,” said Byron D. Trott, Managing Partner and Chief Investment Officer for BDT Capital Partners. “We are committed to the success and re-development of this architectural treasure to ensure that …
MIAMI — The Genting Group has unveiled plans for the $3 billion, 10 million-square-foot Resorts World Miami, a mixed-use development to be located on the current Omni Center and Miami Herald sites in downtown Miami. “Resorts World Miami will accelerate Florida’s evolution as a global destination at the crossroads of the Americas,” said KT Lim, chairman and chief executive of Genting in a statement. “Most importantly, Resorts World Miami will boost confidence in Florida’s economy, creating 15,000 direct and indirect construction jobs and 30,000 permanent positions on an ongoing basis, attracting more inbound investment, and substantially increasing the tax base for the city, county and state.” The development will include four hotels with a total of 5,200 rooms and two residential towers with 1,000 units. The towers will sit atop eight stories of commercial uses, including a 250,000-square-foot luxury retail galleria; more than 50 restaurants, lounges, bars and nightclubs; 700,000 square feet of convention and meeting space; a 200,000-square-foot ballroom and a multimedia entertainment area showcasing the music and culture of Florida and South America. Additionally, a casino will be added if Florida’s legislature and governor approve it. Miami-based Arquitectonica has been retained as the architect for the project. Genting …
COLUMBIA, MD. — Corporate Office Properties Trust (COPT) (NYSE: OFC), a specialty office real estate investment trust (REIT) has elected Roger A. Waesche, Jr., COPT’s president and COO, to become CEO and as a member of the Board of Trustees, effective April 1, 2012. Randall M. Griffin will retire from his role as CEO at the end of March 2012. Over the next 6 months, Griffin will transition responsibilities to Waesche, while maintaining his executive responsibilities for fiscal year 2011. “Roger and I have worked together since 1993,” said Griffin. “During those years, he has served COPT effectively in a number of influential roles. I am confident that COPT will flourish under his guidance and leadership.” Beginning April 1, 2012, Mr. Griffin will continue as a trustee on COPT’s Board and Mr. Waesche will serve as trustee, president and CEO. Effective September 29, 2011, Stephen E. Budorick will join COPT as executive vice president and COO, reporting to Waesche, allowing for an effective transition of the COO responsibilities prior to April 2012. Waesche has been with COPT and its predecessor companies since 1984, serving as COPT’s president and COO since September 2010, after holding the positions of executive vice president …