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, …
Top Stories
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 …
BOSTON — On the heels of announcing its acquisition of Atlanta-based Carter just one week ago, Cassidy Turley has moved forward with another partnership, this time in Boston, by acquiring FHO Partners. FHO Partners will be formally known as Cassidy Turley FHO effective immediately and will transition to the Cassidy Turley name over time. “We are very pleased to welcome FHO Partners to the Cassidy Turley family,” says Mark E. Burkhart, CEO of Cassidy Turley. “We were attracted to FHO Partners' client-focused approach, strength in tenant representation and consulting, deep understanding of local commercial real estate submarkets and trends, excellent reputation and client roster.” Joe Stettinius, Cassidy Turley's president, agrees. “When Cassidy Turley came together in 2008, we realized there were five or six very important markets that we needed to have a presence in,” he adds. “Of those markets, Boston was near the very top for a couple reasons, one being its strong financial presence both on the investor and user side of the business. Plus, we had a lot of clients here already. So when we identified Boston, most important was having unbelievable partners in Boston who are really good at what they do.” And that’s where FHO …
SANTA MONICA, CALIF. — Watt Companies has launched a new acquisition arm, Watt Investment Partners, in response to what the company believes are new real estate investment opportunities in the Western United States. The new venture has committed an initial $60 million to invest in a variety of projects including retail, multifamily, performing and non-performing debt, and land for development. Former Watt President and CEO Jim Maginn will lead the new venture in collaboration with former Chief Investment Officer Dean Pentikis. “The real estate market has changed dramatically over the past few years, and this is truly an ideal time for Watt Companies to begin deploying capital, creating new joint ventures, and identifying acquisition opportunities in the marketplace,” said Maginn, who serves as senior managing partner for Watt Investment Partners. “We are expecting continued volatility for the foreseeable future, but that uncertainty is exactly what will create many different real estate opportunities for a nimble and flexible investment vehicle like Watt Investment Partners.” In its 60 year history, Watt Companies has developed homes for more than 100,000 families, built more than 8 million square feet of industrial and professional office space, developed more than 50 shopping centers, three hotels, and …
NEW YORK CITY — New York’s iconic Empire State Building has been awarded the LEED Gold for Existing Buildings certification. This distinction comes as further recognition from the $550 million Empire State ReBuilding program. The 1,454-foot-tall, 2.85 million-square-foot property is the tallest building in the U.S. to receive LEED certification. The Empire State Building is celebrating its 80th anniversary while nearing completion of its modernized renewal and repurposing. It is one of a small number of National Historic Landmarks to earn the LEED Gold designation, which was established by the U.S. Green Building Council (USGBC) and verified by the Green Building Certification Institute (GBCI). “LEED Gold certification is another win for us following our ground-breaking energy efficiency retrofit work,” said Anthony Malkin, Empire State Building Company. “It is my hope that all future LEED certifications for existing building projects will require demonstrable, quantifiable improvements in energy efficiency, delivering economic returns for building owners, tenants, and the communities in which they are located.” The Empire State Building ownership directed that sustainable practices be at the center of new operations and upgrades as part of the Empire State ReBuilding program. Low environmental impact operations procedures were put in place immediately following the …
BEACHWOOD, OHIO — Beachwood-based shopping center developer Developers Diversified Realty Corporation (NYSE: DDR) plans to officially change its name to DDR Corp., adopting its New York Stock Exchange ticker symbol and most commonly-referred identity, DDR, as its official brand name. The company also unveiled a new logo, tagline and brand identity, including in the launch of the new brand the tagline “Think Retail. Create Value.” “Our new name accurately reflects the fact that we have simplified our strategy, portfolio and capital structure,” said Daniel B. Hurwitz, president and chief executive officer of DDR. “The words 'developers' and 'diversified' no longer have primary significance in our company strategy. Ground-up development of new shopping centers, while still part of our business, no longer warrants top billing in our name. Furthermore, our focus on open-air, value-oriented shopping centers renders the word 'diversified' inaccurate.” DDR is an owner and manager of 546 primarily open-air shopping centers, operating a total of 126 million square feet in 41 states, Puerto Rico and Brazil, concentrated in high barrier-to-entry markets with stable populations and high growth potential. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company. DDR will remain an Ohio corporation, …