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ATLANTA — Jamestown and its subsidiary, Green Street Properties, have started construction on the $180 million, 1 million-square-foot redevelopment of Ponce City Market, located at 675 Pone de Leon Ave. in Atlanta. The 2.1 million-square-foot building is formerly known as City Hall East. “Seven years after the city first attempted to sell the historic building for redevelopment, we’re excited to announce that the largest brick structure in the Southeast is officially under construction,” said Matt Bronfman, managing director of Jamestown in a statement. “Jamestown is fortunate to be able to develop such an exciting project and looks forward to seeing it once again become an important part of the community, driving economic growth and culture in Atlanta.” The redevelopment will open in one phase and is slated for completion in the spring of 2014. Previously, Jamestown had announced it would include approximately 300,000 square feet of retail space, 350,000 to 500,000 square feet of loft office space, and residential units as dictated by the market. Additionally, the property will contain some green elements, including rainwater harvesting and an organic farm on the rooftop. “Historic renovations are always challenging because you discover so much about the building the further you go,” …

MIAMI — Miami-based Newgard Development Group has plans to break ground in the second quarter of 2012 on the $170 million, 374-unit BrickellHouse, a 46-story luxury condo tower located at 1300 Brickell Bay Dr. in Miami. Completion is slated for 2014. According to a June 2011 study by the Miami Downtown Development Authority, only 4,000 of 23,000 condos created during the residential boom between 2003 and 2008 remain unsold, less than 1,500 of which are located in the Brickell Financial District. Layout options at BrickellHouse will include studios, one-, two- and three-bedroom units, as well as 5,000-square-foot penthouse condos. All units will feature private balconies overlooking Biscayne Bay and the Brickell Financial District, gourmet kitchens and bathrooms with imported European cabinetry and premium appliances and finishes. Prices will begin around $200,000. The building also will have approximately 6,000 square feet of office space, some of which will be occupied by Newgard Group’s new headquarters, as well as 16,000 square feet of retail space. Meat Market Steakhouse has been retained as the first retail tenant. “BrickellHouse is totally new,” says Harvey Hernandez, managing partner and chairman of Newgard Group. “A number of projects have been built in Miami in the last …

NEW YORK CITY — Eleven banks in the United States failed in October, according to Trepp’s October 2011 U.S. Bank Failure Report. In September, six banks failed and seven banks failed in August. This brings to total failures so far for 2011 to 85 banks. The highest number of failed banks occurred in Georgia with three banks: Community Capital Bank, Decatur First Bank and Piedmont Community Bank. Illinois had two bank failures, All American Bank and Country Bank. Colorado, however, had the largest failure with the Community Banks of Colorado, which accounted for nearly 40 percent of total failed bank assets in October. Other states with failed banks include Florida, New Jersey, North Carolina, Missouri and Minnesota. “It is notable that the pace picked up versus the prior two months, but not really a surprise,” says Matthew Anderson, managing director of New York-based Trepp. “During the last couple quarters there appears to be some seasonality to the pace of failures, with the number/pace increasing in the month after quarter-end, then subsiding somewhat in the next two months, before increasing again in the next month after quarter-end.” Anderson continues, “The reason seems to be related to quarterly reporting. All FDIC-insured institutions …

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 …