Top Stories

CBRE Negotiates $1B Sale of Hudson Commons Office Tower in Manhattan

by Taylor Williams December 20, 2021

NEW YORK CITY — CBRE has negotiated the $1 billion sale of Hudson Commons, a 697,958-square-foot office tower located at 441 Ninth Ave. in Manhattan. The 25-story building, which is a redevelopment of a warehouse, occupies a full city block in between 34th and 35th streets at the nexus of the Hudson Yards and Manhattan West neighborhoods. The building includes 16,000 square feet of ground-floor retail space. The seller, a partnership between locally based developer Cove Property Group and Boston-based The Baupost Group, acquired the warehouse in 2016. The partnership added 18 stories as part of the office conversion project. Other building features include 16,000- to 50,000-square-foot floor plates and 14- to 28-foot ceiling heights. A CBRE team comprising Darcy Stacom, Bill Shanahan, Doug Middleton and Alana Bassen represented the seller in the transaction. The buyer was Los Angeles-based CommonWealth Partners. At the time of sale, Hudson Commons was about 75 percent leased, with fitness provider Peloton and rideshare giant Lyft serving as the anchor tenants. The property features 30,000 square feet of amenities, including a conference facility, multiple tenant lounges, a bike room and 14 separate outdoor terraces. “This transaction is a bellwether for the resurgence of the office …

December 20, 2021

Development Georgia Industrial Southeast Top Stories

Rivian Plans $5B Electric Truck Manufacturing Plant Near Atlanta

by Julia Sanders December 17, 2021

RUTLEDGE, GA. — Rivian Inc. (NASDAQ: RIVN), an Irvine, Calif.-based electric truck manufacturer, has announced plans for the East Atlanta Megasite, a $5 billion manufacturing plant about 50 miles east of downtown Atlanta. The site is located between Social Circle and Rutledge on Interstate 20, according to The Atlanta Journal-Constitution. Construction on the plant is slated to start in the summer of 2022, with plans to open by 2024. The manufacturing plant is the largest economic development in Georgia’s history, according to a press release by Georgia Governor Brian Kemp. With the new plant, Rivian says it will create approximately 7,500 jobs. The manufacturer plans to develop community engagement and workforce training programs in the area of the new plant. Additionally, Georgia Quick Start, a division of the Technical College System of Georgia and provider of workforce training, plans to build and operate a manufacturing training center. The Georgia Department of Labor also plans to assist Rivian in finding skilled employees to work at the Georgian plant. The plant could have up to 10,000 workers, which would mean the project would be the biggest car assembly project in the country, according to CNBC. The East Atlanta Megasite, which is located on nearly …

December 17, 2021

Connecticut Industrial Northeast Top Stories

AXA Investment Managers Acquires $2B U.S. Industrial Portfolio

by Katie Sloan December 16, 2021

GREENWICH, CONN. — AXA Investment Managers Alternatives has acquired a 23-property portfolio of industrial assets from Dermody Properties Industrial Fund II for $1.2 billion. The company is also under contract to acquire nine industrial properties currently under development by Dermody for $850 million upon completion in 2022 and 2023. The combined 32-property portfolio spans 8.5 million square feet across California’s Inland Empire; Northern California; Seattle; Portland, Ore.; Las Vegas; Chicago; Louisville, Ky.; Atlanta; Eastern Pennsylvania; Northern New Jersey; and Wilmington, N.C. Dermody Properties will continue to manage the portfolio upon completion of both transactions, which CBRE brokered. The average age and size of each property in the portfolio is eight years old and 208,000 square feet, with the majority of assets ranging between 150,000 and 400,000 square feet. The initial 23-property portfolio was 77 percent leased at the time of sale. “The quality and scale of the Dermody Properties portfolio, together with its resilient income profile and attractive geographical diversification, made it stand out as a particularly compelling investment opportunity,” says Steve McCarthy, head of North America at AXA. “Logistics remains one of [our] long-term conviction calls as demand for prime space shows no sign of abating thanks to structural …

December 16, 2021

Acquisitions Hospitality Nevada Top Stories Western

Hard Rock Agrees to Acquire The Mirage in Las Vegas for $1B, Plans Guitar-Shaped Hotel

by Kristin Harlow December 15, 2021

LAS VEGAS — Hard Rock International has agreed to acquire the operations of The Mirage Hotel and Casino in Las Vegas for more than $1 billion. The transaction is expected to close in the second half of 2022. Hard Rock also revealed that it plans to build a guitar-shaped hotel, which will be located on the Las Vegas Strip. When complete, Hard Rock Las Vegas will be a fully integrated resort welcoming meetings, groups, tourists and casino guests across its nearly 80-acre location, according to Jim Allen, chairman of Hard Rock. The seller, MGM Resorts International (NYSE: MGM), acquired The Mirage in 2000. The property originally opened in 1989 and is known for its 90-foot volcano. MGM is selling to focus on other opportunities, such as sports betting and expansion in Asia. “This announcement marks the culmination of a series of transformational transactions for MGM during the last several years,” says Paul Salem, chairman of the board of directors for MGM. “The monetization of our entire real estate property portfolio, together with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the company with a fortress balance sheet, premier portfolio and significant financial …

December 15, 2021

Civic Development New York Northeast Retail Top Stories

Public-Private Partnership to Develop $9.5B International Terminal at JFK Airport in New York City

by John Nelson December 14, 2021

NEW YORK CITY — The Port Authority of New York and New Jersey has reached an agreement with a consortium of private financial sponsors to build a 2.4 million-square-foot international terminal that will anchor the south side of John F. Kennedy International Airport (JFK) in New York City. The $9.5 billion project will comprise 23 gates and be built in phases at the airport’s T1, T2 and the former T3 terminals, with groundbreaking anticipated for next year. The port authority expects for the first gates at the new terminal, dubbed New Terminal One, to debut in 2026, with full project completion expected in 2030. The overall development is expected to support 10,000 new jobs, including 6,000 construction jobs. “The time to get large infrastructure projects done is now, and I’m committed to getting JFK’s brand new Terminal One underway and completed as soon as possible,” says New York Gov. Kathy Hochul. The design-build team for the project includes AECOM Tishman and Gensler. The passenger facilities at New Terminal One will feature larger check-in, security and concessions areas. Design elements will include high ceilings, natural light, interior green space and local artwork. Technology that will be supported at the terminal include …

December 14, 2021

Acquisitions Florida Multifamily Southeast Top Stories

Cardone Capital Acquires South Florida Multifamily Portfolio for $740M

by Taylor Williams December 13, 2021

AVENTURA, FLA. — Cardone Capital, the Aventura-based institutional investment firm owned by entrepreneur and real estate mogul Grant Cardone, has acquired a portfolio of multifamily properties in South Florida for $740 million. The per-unit price equates to about $438,000. The sellers were not disclosed. The portfolio comprises four communities totaling 1,688 units. Two of the properties, totaling 716 units, are located in Fort Lauderdale. The other two properties, totaling 972 units, are in Sunrise and Weston, both located in West Broward County. Cardone Capital is rebranding each of the communities under its signature 10X banner. The two Fort Lauderdale properties are newly built and feature studio, one- two- and three-bedroom units. Amenities include pools and fitness centers. Both communities are located in the city’s downtown area. The other two communities were constructed in the 1990s and have value-add potential, according to the buyer. “Acquiring these four properties, essentially simultaneously, is the largest deal I’ve done in my 30-plus years as a real estate investor,” says Cardone, who serves as CEO of his namesake company. “Each property has its own personality, but what they all share is the first thing I look for in property investments — super-convenient locations in high-growth …

December 13, 2021

Acquisitions Florida Multifamily Southeast Top Stories

Newmark Arranges $123.5M Sale of Westerly Multifamily Community Near Walt Disney World Resort

by Julia Sanders December 10, 2021

WINTER GARDEN, FLA. — Newmark has arranged the $123.5 million sale of The Westerly, a 352-unit multifamily community in Winter Garden, about 15 miles from Orlando. Fore Property Co. and Los Angeles-based PCCP LLC sold the recently completed property to Fort Lauderdale-based Ortsac Capital Group. Built in 2021, The Westerly is a 348,801-square-foot, LEED-certified apartment community with six four-story, elevator-serviced buildings. The property offers studio, one-, two- and three-bedroom floor plans with an average unit size of 991 square feet. Unit features include LED energy-efficient lighting, hardwood style floors, stainless steel appliances, full-sized washers and dryers, oversized soaking tubs, walk-in closets, walk-in shower and patio and balconies. Community amenities include a two-story clubroom, resort-style swimming pool, two fitness centers, sauna room, wine room with multiple gathering areas and a conference room. The property also offers a package service and has a maintenance and property manager onsite. Rents range from $1,545 to $3,150 per month, according to Apartments.com. Located at 14680 Westerly Drive, The Westerly is situated three miles from Walt Disney World Resort, 26 miles from Orlando International Airport and 25.7 miles from downtown Orlando. Additionally, the property is near medical employment centers including Orlando Health ER and Medical Pavilion …

December 10, 2021

California Development Mixed-Use Multifamily Office Retail Top Stories Western

The John Buck Company, 3MR Capital to Break Ground on $210M Mixed-Use Project in Metro Los Angeles

by Katie Sloan December 9, 2021

CULVER CITY, CALIF. — A joint venture between The John Buck Company (JBC) and 3 Mile Radius (3MR) Capital is set to break ground on 11111 Jefferson, a $210 million mixed-use project located roughly 10 miles outside Los Angeles in Culver City. The five-story development will include 230 units of multifamily above 55,000 square feet of retail space, 11,450 square feet of second-floor office space and parking for more than 650 vehicles. Plans for the project also include a 13,000-square-foot open courtyard and a 30,000-square-foot public park along Machado Road. The site is currently home to retail space occupied by Coco’s restaurant, an auto repair garage and a post office. Thorofare Capital Inc. recently provided $34.1 million in pre-development acquisition financing to the joint venture for an anticipated groundbreaking in 2022. David Perlman of Thorofare originated the loan and Jacob Yi and Paul Kim led underwriting and executed closing for the financing. JBC is a real estate investment, development and operating company focused on major U.S. markets. Since its inception, the Chicago-based company has acquired, developed or redeveloped over 47 million square feet of office, multifamily and mixed-use properties. Los Angeles-based 3MR Capital is a privately held real estate firm …

December 9, 2021

Acquisitions Arizona Office Top Stories Western

JLL Brokers $150M Sale of Block 23 Office Property in Downtown Phoenix

by Kristin Harlow December 8, 2021

PHOENIX — JLL Capital Markets has brokered the sale of Block 23 in downtown Phoenix for $150 million. Completed in 2019, the property consists of 307,030 square feet of Class A office, retail and amenity space. Located at 101 E. Washington St., Block 23 is 95 percent occupied by tenants such as Western Alliance Bank, EY and Chase. The asset is immediately adjacent to CityScape Phoenix, a new 1.2 million-square-foot mixed-use property, and is directly across from Footprint Center where the Phoenix Suns of the National Basketball Association (NBA) play. Block 23 is home to Fry’s Fresh Marketplace, as well as restaurant concepts Blanco Tacos & Tequila and Ingo’s Tasty Food. Amenities at the property include a pickleball court, sky lobby, rooftop amenity deck and onsite parking. Ben Geelan and Kevin MacKenzie of JLL represented the seller, an affiliate of RED Development, and procured the buyer, City Office REIT Inc. (NYSE: CIO). The sales price of $488.55 per square foot sets a new per-square-foot record in the city for multi-tenant office trades, according to JLL. “Block 23 has a superior long-term core location in downtown Phoenix, which has seen more than $6 billion of investment into the immediate area since …

December 8, 2021

Acquisitions Hospitality Leasing Activity Maryland Mixed-Use Northeast Pennsylvania Restaurant Retail Southeast Top Stories

Cordish to Sell Three East Coast Casinos in $1.8B Deal with Gaming and Leisure Properties

by John Nelson December 7, 2021

PHILADELPHIA, PITTSBURGH AND HANOVER, MD. — The Cordish Cos., a privately held retail entertainment and hospitality owner and operator based in Baltimore, has reached a sale-leaseback agreement with Gaming and Leisure Properties Inc. (NASDAQ: GLPI) for three of Cordish’s East Coast casinos. The properties include Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh. Under terms of the agreement, Cordish will immediately lease back all the properties and continue to own, control and manage all the gaming operations of the facilities. The leases will have an initial term of 39 years, with a maximum term of 60 years inclusive of tenant renewal options. The total price was approximately $1.8 billion, including applicable long-term ground leases. Consideration for the three-property real estate transactions will comprise a mix of qualified debt assumption (to be satisfied by GLPI), cash and $323 million of newly issued operating partnership units. The transaction for the three properties includes a binding partnership on future Cordish casino developments. For seven years post-closing, GLPI will co-invest with Cordish on any new gaming development projects and provide 20 percent of Cordish’s equity on those projects. (This agreement excludes existing Cordish or third-party gaming licensed facilities.) …

December 7, 2021

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