BAYTOWN, TEXAS — Dallas-based Abby Development has begun work on The Lodge at Pine Creek, a 217-unit seniors housing project in Baytown, an eastern suburb of Houston. The community will offer independent living and memory care services. The 17-acre, resort-style property will feature amenities such as a stocked fishing lake, walking trails, movie theaters, a pool, salon, fitness center, a pharmacy and general store. Completion is slated for the second quarter of 2020.
ORLANDO, FLA. — CBRE has arranged $30.8 million in permanent financing for the acquisition of the Siemens Energy Americas headquarters building in Orlando. The 255,677-square-foot office building is located adjacent to the University of Central Florida’s campus. Zac Brumbaugh of CBRE arranged the loan through a life insurance company on behalf of the borrower, a private international fund managed by Stockbridge Capital Group. Ron Rogg and Chip Wooten of CBRE arranged the $61.5 million sale on behalf of the seller, Siemens. Siemens Energy — one of the four sectors of Siemens — generates and delivers power from numerous sources including the extraction, conversion and transport of oil and natural gas in addition to renewable and alternative energy sources.
ATLANTA — Atlanta-based REIT Cousins Properties Inc. (NYSE: CUZ) has named Colin Connolly CEO, effective Jan. 1, 2019. Larry Gellerstedt, the company’s current chairman and CEO, will transition to executive chairman. “Colin’s promotion is part of a deliberate and planned succession effort that will allow Cousins Properties to benefit from his ideas, energy and strategic leadership skills, while continuing its evolution into a larger, highly focused company,” said Gellerstedt. Since joining Cousins Properties in 2011, Connolly, 42, has held the roles of senior vice president, chief investment officer, executive vice president and chief operating officer. Last year, he was named president of the company, a title he will retain in addition to his role as CEO. “Growing up in Atlanta, I have a deep appreciation for Cousins Properties and its importance to this community,” said Connolly. “The opportunity to work side by side with Larry and our outstanding team for more than seven years has been tremendous, and I have total confidence that our top-quality Sunbelt portfolio and strong balance sheet leave us well positioned to maintain our position as one of the top urban [REITs] in the marketplace.” Cousins Properties’ stock price closed at $9.08 per share on Tuesday, Sept.18, …
DALLAS — NorthMarq Capital has added six multifamily investment sales specialists to its Dallas branch, which is the Minneapolis-based financial intermediary’s top-producing debt and equity advisory office. Joining the Dallas team is Taylor Snoddy, the top overall producer for Transwestern over the last two years, along with former Transwestern associates James Roberts and Philip Wiegand. Over the past two years, Snoddy, Roberts and Wiegand have closed more than $2.5 billion in multifamily sales and are on pace to exceed $1 billion in sales in 2018. Also joining NorthMarq’s Dallas office from Transwestern are Eric Stockley, Devin Etzold and Charles Hubbard, who will provide financial analysis, client service and transaction coordination.
To say the multifamily investment market in Dallas-Fort Worth (DFW) is healthy would be an understatement. With nearly 36,000 units across 183 properties sold in the first half of 2018, according to Real Capital Analytics, a more accurate assessment would be that the sector is — figuratively — on fire. Investor demand for workforce housing remains at an all-time high. With strong economic fundamentals, buyers remain bullish on the DFW multifamily market. Historically low interest rates have attributed to cap rate compression as buyers continue to search for value-add opportunities. While cap rates remain compressed, the yields are still very attractive when compared to alternative investment options. With listings averaging more than 125 confidentiality agreements, 20 tours and 15 offers, the competition has become intense. Winning a deal in today’s market takes more than a strong offer — it takes a good reputation, determination and aggression. Buyer Strategy Buyers can differentiate themselves and establish a competitive advantage by having the equity partner, lender, contractors and management company involved in the transaction prior to the initial offer. Sellers have grown accustomed to tight timelines, limited contingencies and significant non-refundable earnest money at contract execution. In this competitive of a market, sellers …
AURORA, COLO. — Ares Real Estate Group has sold its investment stake in the Gaylord Rockies Resort & Convention Center in Aurora for $270 million. Slated to open this December, the 1,500-room hotel is located less than 10 minutes from the Denver International Airport. Marriott International Inc. will manage the hotel upon its opening. In addition to 486,012 square feet of convention space, the property will feature a full-service spa, fitness center, pool, several restaurants, a coffee shop and marketplace store. The resort is expected to be the largest combined hotel and convention center in Colorado, according to Ares. Ryman Hospitality Properties Inc. and RIDA Development Corp., the other partners in the development’s joint venture, acquired Ares’ investment stake. The sale comes on the heels of Ares’ announcement last week that its power and infrastructure fund acquired the assets of Irving, Texas-based oil and gas company Paradigm Energy Partners. Ares Real Estate Group is part of Ares Management LP (NYSE: ARES), which has approximately $121.4 billion in assets under management and 18 offices worldwide. Ryman (NYSE: RHP) owns four resorts totaling 8,114 rooms that are managed by Marriott under the Gaylord Hotels brand. Ryman also owns other Marriott-branded hotels as …
NEW YORK — Columbia Property Trust Inc. (NYSE: CXP) and Normandy Real Estate Partners LLC plan to form a joint venture to develop 799 Broadway, a 12-story boutique office building in Manhattan’s Midtown South neighborhood. The $300 million, ground-up project will be located at the corner of 11th Street and Broadway, at the convergence of Union Square and Greenwich Village. The loft-style building will total 182,000 square feet and will feature floor plates ranging from 3,600 to 22,000 square feet. Other features will include 15-foot ceilings, floor-to-ceiling glass and private terraces. “We look forward to working with Columbia to jointly develop a Class A, loft-style creative building in this ideal location,” said Jeffrey Gronning, founder and partner of Normandy Real Estate Partners. “With its high-end amenities and features, this unique building will be ideally suited for tenants seeking a creative and collaborative environment and should benefit from the limited supply of newly developed properties in this neighborhood.” Chicago-based architecture firm Perkins+Will is designing the building, which is slated for completion in the second half of 2020. Once completed, 799 Broadway will join Columbia’s existing Manhattan portfolio, which includes 218 W. 18th St., 249 W. 17th St., 114 5th Ave., 229 …
CARSON, CALIF. — Macerich (NYSE: MAC) and Simon Property Group (NYSE: SPG) have formed a 50/50 joint venture to develop Los Angeles Premium Outlets, a new outlet mall in Carson, about 13 miles south of downtown Los Angeles. The first phase will span 400,000 square feet, and the second phase will include 166,000 square feet. “Our city is thrilled that this exciting project is moving forward,” said Carson Mayor Albert Robles in a prepared statement. “We see this high-quality outlet project as one that will add value to our community for many years to come, attracting locals and tourists from all over the world.” The outlet mall will feature 2,500 linear feet of frontage along the Interstate 405 Freeway. Roughly 515,000 cars pass the site each day along I-405 and the Interstate 110 Freeway. The site has roughly 2.5 million residents within a 10-mile radius and is situated about 11 miles south of Los Angeles International Airport (LAX). As currently planned, the project’s shops and restaurants will be elevated above street level and sit atop a ground-level parking deck. Site work is expected to begin immediately. Macerich and Simon plan to open the Los Angeles County property in fall 2021. …
BETHESDA, MD. —It appears the sixth time’s a charm as LaSalle Hotel Properties (NYSE: LHO) has accepted Pebblebrook Hotel Trust’s (NYSE: PEB) merger proposal made in late August. The two Maryland-based hotel REITs jointly announced today that Pebblebrook will acquire all of LaSalle’s outstanding common shares in a deal valued at $5.2 billion. In accepting the unsolicited Pebblebrook bid, LaSalle has terminated its previously announced merger agreement with affiliates of The Blackstone Group LP (NYSE: BX). Blackstone declined to revise its $4.8 billion bid, including $1.1 billion in debt, which LaSalle previously accepted in May. According to The Wall Street Journal,Blackstone is entitled to a $112 million termination fee. Under terms of the merger agreement, each LaSalle shareholder will have the option to receive for each LaSalle common share owned either a fixed amount of $37.80 in cash or a common share of Pebblebrook stock at a fixed exchange ratio of 0.92. A maximum of 30 percent of outstanding LaSalle common shares may be exchanged for cash. “We are very pleased to have reached an agreement to bring Pebblebrook and LaSalle together in a strategic combination that represents a terrific value-maximizing opportunity for both LaSalle and Pebblebrook shareholders,” says Jon …
NEW YORK CITY — Lexington Realty Trust (NYSE: LXP) has sold a 21-office asset portfolio for $726 million to a joint venture between affiliates of Davidson Kempner Capital Management LP and Lexington. The office properties are spread across the U.S., with properties in the eastern and western regions, the South and the Midwest. The 3.8 million-square-foot portfolio is currently 98.6 percent leased to a tenant roster that includes Amazon, Experian Holdings, Motel 6 and Nissan. “This transaction marks a major step forward as we execute on our strategy to efficiently recycle capital out of suburban office properties and concentrate our portfolio on single-tenant, net leased industrial properties,” says T. Wilson Eglin, CEO of New York City-based Lexington Realty Trust. We intend to use transaction proceeds to continue to acquire high-quality industrial properties and repay our revolving credit facility and other debt, which we believe is the best path to create meaningful long-term shareholder value.” Following the transaction, Lexington’s percentage of industrial assets based on consolidated revenue is expected to increase to 60 percent from 44 percent at year-end 2017. Lexington received net cash proceeds of approximately $565 million at closing. The joint venture is expected to assume approximately $57 million …
