The demand for quality office space in Salt Lake City is higher than ever. According to Forbes, Utah’s economy continues to lead the nation, and more employers are looking to expand into the Salt Lake market. Large companies like eBay, Adobe and Boeing are setting up shop along the Wasatch Front, and more corporations will be coming soon. Several new Salt Lake office projects are in the planning stages, while others have already broken ground. With lower vacancy rates in Class A and B spaces, new developments — which vary from build-to-suit to spec projects — are encouraging. Overall Class B and C rates are hovering between 15 percent and 17 percent and inching downward as 2013 progresses, according to Newmark Grubb Acres’ research. Valley-wide, Class A properties are averaging about 11 percent, and will likely level off until more product is built. A big change is currently taking place in the office market. The past few years have been predominantly tenant-driven, but trends now show a decrease in generous landlord incentives. Property owners who were previously given four to six weeks of annual free rent may now only receive two to four weeks. Landlords are also looking at tenant …
SCOTTSDALE, ARIZ. — Spirit Realty Capital will soon merge with Cole Credit Property Trust II after the firm’s shareholders approved the move in a special meeting held yesterday. Once the merger is complete, the combined company will formone of the largest publicly traded triple-net-lease REITs in the U.S. It will own a total of about 1,900 properties in 48 states. Spirit shareholders will receive a fixed exchange ratio of 1.9048 shares of common stock of the combined company for each Spirit share previously owned. The new company will retain the Spirit Realty Capital name. It will trade on the New York Stock Exchange under the ticker symbol “SRC.” Spirit’s current management team will lead the new company. Spirit Realty Capital was formed in 2003 to invest in single-tenant operationally essential real estate. It has invested more than $4.3 billion in more than 1,200 properties across 47 states. Cole Credit Property Trust II invests primarily in high-quality, freestanding, single-tenant buildings that are net leased to investment-grade or other creditworthy tenants throughout the U.S.
SCOTTSDALE, ARIZ. — Spirit Realty Capital will soon merge with Cole Credit Property Trust II after the firm’s shareholders approved the move in a special meeting held yesterday. Once the merger is complete, the combined company will formone of the largest publicly traded triple-net-lease REITs in the U.S. It will own a total of about 1,900 properties in 48 states. Spirit shareholders will receive a fixed exchange ratio of 1.9048 shares of common stock of the combined company for each Spirit share previously owned. The new company will retain the Spirit Realty Capital name. It will trade on the New York Stock Exchange under the ticker symbol “SRC.” Spirit’s current management team will lead the new company. Spirit Realty Capital was formed in 2003 to invest in single-tenant operationally essential real estate. It has invested more than $4.3 billion in more than 1,200 properties across 47 states. Cole Credit Property Trust II invests primarily in high-quality, freestanding, single-tenant buildings that are net leased to investment-grade or other creditworthy tenants throughout the U.S.
WASHINGTON, D.C. — Nonfarm payroll employment in the United States rose by 175,000 in May, a “Goldilocks-caliber report” that the stock market was probably looking for — not too hot and not too cold, says Ryan Severino, senior economist at Reis. The measured recovery also means the Fed’s bond-buying program is likely to stay intact for a while longer. The Dow Jones Industrial Average rose almost 208 points, or 1.38 percent, to close at 15,248, on Friday, June 7, the same day the Bureau of Labor Statistics (BLS) released the May employment report. Net payroll gains in April were revised downward to 149,000 from 165,000 and March was revised upward by 4,000 jobs. Because of the downward revisions to April by the BLS, the three-month moving average of net job gains was 155,000 compared with 207,000 during the first quarter of the year. “Overall, the revisions are less worrisome than the downward trajectory of new job creation,” emphasizes Severino. “We have yet to see the marked slowdown that we have witnessed in the last few calendar years, but there is still a decline in the pace of new job creation.” In the wake of the report, all eyes are on …
DALLAS — Affiliates of The Blackstone Group LP (NYSE: BX) have borrowed $581 million to refinance a 16-property, 4,798-room hotel portfolio and a golf course/tennis club. The properties are located across the U.S. The portfolio is composed of 12 full-service hotels, which include: Sheraton San Francisco Fisherman’s Wharf in San Francisco Hilton Irvine-Orange County Airport in Irvine, Calif. Marriott Irvine in Irvine, Calif. DoubleTree Austin in Austin, Texas DoubleTree Suites Indianapolis-Carmel in Carmel, Ind. Hilton Clearwater Beach Resort in Clearwater, Fla. South Seas Island Resort in Captiva Island, Fla. DoubleTree Orlando-Universal in Orlando, Fla. Hilton Cocoa Beach Oceanfront in Cocoa Beach, Fla. Hilton Key Largo Beach Resort in Key Largo, Fla. The Ritz-Carlton Pentagon City in Arlington, Va. Marriott Princeton-Forrestal in Princeton, N.J. The portfolio also includes four boutique hotels, known collectively as The Inns of Sanibel, and one golf course/tennis club called The Dunes Golf and Tennis Club in Sanibel Island, Fla. The HFF team representing the borrower was led by senior managing directors Trey Morsbach and Dan Peek and managing director John Bourret. The Blackstone Group’s stock price closed Tuesday at $21.05 per share, which is up from closing at $12.08 per share this time last year. — …
“Hot” does not adequately describe Miami’s current residential real estate climate. Back from the brink of extinction in late 2009, the residential condominium market in Miami is currently booming. The apartment market is booming as well, but did not take it on the chin like the condominium market did. From 2009 to 2010, Greater Downtown Miami was considered one of the most overbuilt markets in the country. Developers delivered approximately 34,000 condos in the market in a six-year period, more than double what was delivered in the prior 40 years. The majority of those units came on line during the crash, which left Miami with an unsold inventory or more than 20,000 units in early 2010. Forecasters expected it would take 10 or more years for that inventory to be absorbed. Today that inventory of developer-owned units is down to less than 900, according to Condo Vultures, Miami’s condo watchdog. One can almost say that Brazil and Argentina brought back Miami’s high-rise condominium market. Brazilians and Argentineans in particular, but not exclusively, have experienced hyperinflation — to the point of scheduling the purchase of groceries on payday — like few others. They therefore have an acute understanding of the need …
MEMPHIS, TENN. — MAA (NYSE: MAA) and Colonial Properties Trust (NYSE: CLP) have entered into a definitive merger agreement that will create a powerhouse multifamily REIT focused on the Sunbelt. The combined company is expected to have a pro forma equity market capitalization of approximately $5.1 billion and a total market capitalization of $8.6 billion. Both the Board of Directors of MAA and Board of Trustees of Colonial Properties Trust have unanimously approved the merger, which is expected to close during the third quarter of this year. The deal brings together two multifamily portfolios that include approximately 85,000 multifamily units in 285 properties. The combined company's 10 largest markets will be Dallas/Ft. Worth, Atlanta, Austin, Raleigh, Charlotte, Nashville, Jacksonville, Tampa, Orlando and Houston. “The combination of MAA and Colonial Properties Trust will provide an enhanced competitive advantage across the Sunbelt region,” says H. Eric Bolton Jr., CEO of MAA. “The scale of the combined company will support accelerated growth and deployment of capital across our high-growth Sunbelt markets, driving superior value-creation opportunity for our shareholders. In addition, through capitalizing on the strengths gained from the combination of the two platforms, we will enhance our ability to serve residents across the …
JACKSONVILLE, FLA. — Fidelity National Financial has entered into a definitive agreement to acquire Lender Processor Services Inc., a provider of integrated technology, services, data and analytics to the mortgage and real estate industries, for $2.9 billion, or $33.25 per common share. William Foley, chairman of Fidelity, says his title insurance company has “significant experience and familiarity” with Lender Processor from its previous ownership of these businesses. He expects the combination of the two Jacksonville-based companies to create a larger, broader, more diversified and recurring revenue base for Fidelity. “We believe there are meaningful synergies that can be generated through the similar businesses in centralized refinance and default-related products, elimination of some corporate and public company costs and the shared corporate campus,” says Foley. “We have set a target of $100 million for cost synergies and are confident that we can meet or exceed that goal.” Under terms of the agreement, Fidelity will pay 50 percent of the consideration for the Lender Processor shares in cash and 50 percent in shares of Fidelity stock. The purchase price represents a 19 percent and 25 percent premium, respectively, to the prior 30-day and 60-day average closing prices for Lender Processor’s stock through …
NEW YORK CITY — American Realty Capital Properties Inc. (NASDAQ: ARCP) has signed a definitive merger agreement with CapLease Inc. (NYSE: LSE) to acquire all of the outstanding shares of CapLease in a deal valued at $2.2 billion. The board of directors for both American Realty Capital and CapLease unanimously approved the agreement. “The combination of ARCP with CapLease allows us to expand and further diversify our property portfolio, fortify our credit quality, reduce our tenant concentration and enhance our management team,” says Nicholas Schorsch, chairman and CEO of ARCP. The parties expect the transaction to close in the third quarter. The merger will make ARCP the third largest net lease REIT in the U.S., based on total pro forma equity market capitalization. ARCP will pay $8.50 per share in cash for each outstanding share of CapLease common stock. “We believe that the structure of this transaction creates the greatest value for all stockholders over both the near and long term,” says Paul McDowell, chairman of the board of directors and CEO of CapLease. “My management team looks forward to the opportunities of continuing to build out the high-quality assets of the company.” ARCP intends to assume approximately $580 million …
Consumers were cautious spenders on discretionary items during the first quarter due to the sequester and expiration of the payroll tax cut. Consumer consumption accounted for 3.2 percent of GDP during the first quarter. Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University (GSU), predicts that figure will decrease to 1.9 percent during the second quarter and fall further to 1.7 percent during the third quarter of this year. While consumer spending remains modest, the main problem facing the nation’s economy revolves around the federal budget, said Dhawan during his presentation at GSU’s student center the morning of Wednesday, May 22. “The biggest [question] is will we have a budget by fall of this year,” asked the forecaster. “I may be an optimistic fool, but I have a presumption that we will.” In late March, the Democrat-controlled Senate passed its first formal budget proposal in four years. The non-binding plan for the 2014 budget calls for $1 trillion in tax increases. While the Senate proposal effectively reduces the deficit over 10 years, it stands in sharp contrast to the House budget proposal. A budget deal would provide corporations with a measure of certainty about their tax rates, …