SAN FRANCISCO — Yesterday, Airbnb (NASDAQ: ABNB) soared in valuation during its first day of trading with initial shares priced at $68 for the San Francisco-based home-rental platform. The company’s shares skyrocketed to 113 percent above the initial offering, closing at $144.47. The company’s market capitalization reached $86.5 billion, with its offering raising $3.5 billion — making it the biggest IPO year-to-date. “Airbnb’s strong debut come as little surprise in view of the enormous valuations accorded to anything ‘tech,’” says professor John Colley, associate dean at Warwick Business School and an expert on IPOs. “After all, the company is nearer to profit than many recent and current IPOs.” Prior to its IPO, Airbnb filed multiple updated S-1s with the U.S. Securities and Exchange Commission, in which the company announced plans to offer 51.9 million shares at $44 to $50 per share then increased its offering to $56 to $60 per share. The 13-year-old company has experienced growth since its founding with gross booking value (GBV) topping $38 billion in 2019, representing a 29 percent growth from $29.4 billion in 2018.
SAN FRANCISCO — DoorDash, a technology-based food delivery company, debuted on the New York Stock Exchange on Wednesday, Dec. 9 offering its initial public offering at $102 per share, which was above its previous range of $90 to $95. The company closed its first day of trading with an 86 percent increase in pricing to $189.51, for a total valuation of $60.2 billion, or 17 times revenue. The San Francisco-based door-to-door delivery service focuses primarily on restaurant deliveries, which resulted in a 268 percent revenue growth in the third quarter, up to $879 million, from the previous year. Additionally, during the first nine months of 2020, DoorDash’s order volume soared to $16.5 billion, from $5.5 billion last year. According to the company’s prospectus, it has 390,000 merchants on its platform, ranging from fast-food chains like Chick-fil-A, Chipotle and McDonald’s to upscale restaurants that have been forced to rely on delivery services during the COVID-19 pandemic. The company has rapidly expanded its business and services to meet the needs of customers during the pandemic and has implemented practices and strategies that reduced its losses, resulting in profits on every order.
SEATTLE — Starbucks (NASDAQ: SBUX) has predicted a resurgence in its cafes and customer demand for its coffee by 2022, forecasting a growth of more than 20 percent by fiscal 2022. With this news, shares of the Seattle-based coffee roaster and retailer jumped more than 4 percent in extended trading. The stock, which has a market value of $122 billion, has increased 18 percent so far this year. Pat Grismer, CFO, reaffirmed the company’s fiscal 2021 forecast with adjusted earnings per share of $2.70 to $2.90 at the company biennial investor day. In 2023 and 2024, Starbucks expects to hit long-term growth targets with adjusted earnings per share growth of 10 percent to 12 percent. Starbucks also is adjusting its forecast for ongoing long-term revenue growth by increasing it to a range of 8 percent to 10 percent, upgrading its 2018 prediction of 7 percent to 9 percent. The company is projecting a net new unit growth of 6 percent worldwide as it aims for 55,000 cafes globally by 2030, with a 3 percent growth in the United States and a low-teens net unit growth rate for China. Currently, the company has nearly 33,000 stores worldwide.
HUNTINGTON BEACH, CALIF. — Hanley Investment Group has arranged the sale of Village Plaza at Huntington Harbor, a 20,328-square-foot shopping center. According to industry sources, the sales price was $17 million. The property was 91 percent leased at the time of sale to tenants including Harbor Barber, Secret Spot Restaurant, La Bodega Bottle Shop, Super Mex, Stoney’s Pizza, Sunset Vapor, Riip Beer Co. and Tsunami Sushi. The center is situated at 17196-17236 Pacific Coast Highway, two blocks from the beach and 31 miles south of downtown Los Angeles. Jeff Lefko, Bill Asher and Beau Velten of Hanley Investment Group represented the seller, a private partnership based in Palm Springs, California. Mel Zelenak of Maly Realty represented the buyer, an undisclosed private partnership based in Los Angeles.
MARICOPA, ARIZ. — ACRES Capital has originated a $28 million loan for the construction and stabilization of Bungalows on Bowlin, a single-story multifamily property located at Bowlin Road and John Wayne Parkway in Maricopa. Cavan Cos., a Scottsdale, Arizona-based real estate developer, is the borrower and has developed multiple Bungalow-branded projects across the Phoenix area. Bungalows on Bowlin will feature 196 apartments, a resort-style swimming pool and spa, a farmhouse-style clubhouse and 426 on-site parking spaces. Once completed, the 16-acre property will be one of the only single-story rental communities in the Maricopa submarket. Jeremy Korer of Cushman & Wakefield arranged the loan.
BELLEVUE, WASH. — San Diego-based MG Properties Group has purchased LIV Bel-Red Apartment Homes in Bellevue. Kennedy Wilson Fund V, a commingled fund managed by Kennedy Wilson, sold the asset for $191 million. The buyer has rebranded the multifamily property as Vue 22 Apartments. Completed in 2015 and situated in the Bel-Red submarket, Vue 22 features 451 residences. The property is located to the east of Seattle, between downtown Bellevue and downtown Redmond, Wash. David Young, Corey Marx, Chris Ross and Jordan Louie of JLL Capital Markets represented the seller. Charles Halladay, Rick Salinas and Jake Wisness of JLL Capital Markets arranged financing for the buyer. MG Properties Group has purchased seven communities in the past 12 months, totaling more than 2,000 units and $715 million in combined value.
LOS ANGELES — Sunstone Hotel Investors has completed the disposition of Renaissance Los Angeles Airport Hotel, located at 9620 Airport Blvd. in Los Angeles. An undisclosed buyer acquired the asset for $91.5 million, or approximately $182,300 per room. Located less than one mile from Los Angeles International Airport, the hotel features 502 guest rooms, a rooftop pool, fitness center, Studio 12 restaurant and 18,000 square feet of newly renovated event space.
RENO, NEV. — Panattoni Development, serving as developer, has completed northern Nevada’s first Amazon last-mile facility, located at the intersection of Virginia Street and Stead Boulevard in Reno. Constructed in five months, the 145,602-square-foot building will enable Amazon to be fully operational for the holiday season. A last-mile facility serves as the final distribution hub prior to delivery to end-users, enabling shipments to be delivered as quickly as possible. The project team included Alston Construction, Architects Orange and Odyssey Engineering Inc.
OTAY MESA, CALIF. — Rockefeller Group has started construction of Airway Industrial Park, a distribution center located on a 7.8-acre site in Otay Mesa. When complete, the project will be Rockefeller’s first development in the South San Diego industrial market. Slated for completion in June 2021, Airway Industrial Park will offer 135,623 square feet of distribution space and 137 auto parking spaces. The project team includes Ware Malcomb as architect and Dempsey Construction has general contractor. Rich Kwasny and Bob Mooney of Colliers International are marketing the property, which will be available for lease or sale.
BROOMFIELD, COLO. — Westcore has purchased an 11-building industrial complex at West Midway Boulevard and Burbanks Street in Broomfield. Commander Leasing LLC sold the asset for $48 million. Westcore plans to implement an extensive renovation and branding plan at the 509,164-square-foot campus. Renovations include a new paint scheme, parking lot upgrades and various other improvements. Tyler Carner, Jeremy Ballenger, Jim Bolt and Jessica Osternick of CBRE represented the seller, while Westcore was self-represented in the deal.