The Indianapolis industrial market has experienced a significant amount of absorption during the past several quarters, driving down the multi-tenant vacancy rate to 3.3 percent and leading to a new round of speculative development, according to brokerage firm Cassidy Turley. The key engines driving growth are technology, housing, auto suppliers, and distribution centers related to Internet sales. Some 3.2 million square feet of speculative industrial space is under construction in the Indianapolis area. The city currently has 240.5 million square feet of inventory. When completed, the speculative product in the development pipeline is expected to result in the multi-tenant vacancy rate rising closer to the historical norm of approximately 4 percent. Michael Weishaar, senior vice president and principal at Cassidy Turley’s Indianapolis office, says the low industrial vacancy rate is partly the result of proper planning. “Our developers are intelligent about oversupply,” says Weishaar. “They saw a rough economy and thought we needed to re-look at our supply chain.” With so much speculative development under way, is there enough demand to absorb it all? Although vacancy rates will rise closer to their historical average in the short term when space comes available, in the long run this amount of space …
BEVERLY HILLS, CALIF. — The 297-room SLS Hotel at Beverly Hills has received $125 million in refinancing. The luxury hotel is located on La Cienega Boulevard at the crossroads of Beverly Hills and West Hollywood. Financing was arranged by Mathew Comfort, Reid McGlamery, Mike Huth, John Strauss and James Stockdale of Jones Lang LaSalle.
BEVERLY HILLS, CALIF. — The 297-room SLS Hotel at Beverly Hills has received $125 million in refinancing. The luxury hotel is located on La Cienega Boulevard at the crossroads of Beverly Hills and West Hollywood. Financing was arranged by Mathew Comfort, Reid McGlamery, Mike Huth, John Strauss and James Stockdale of Jones Lang LaSalle.
ARLINGTON, VA. — Mack-Cali Realty Corp. (NYSE: CLI) has acquired the 828-unit Crystal House, a multifamily property in the Crystal City section of Arlington, for approximately $262.5 million in a joint venture deal. The transaction marks Mack-Cali’s entrance into the metro Washington, D.C. apartment market. The real estate investment trust’s joint venture partner is a fund advised by UBS Global Asset Management. The acquisition includes land to accommodate the development of approximately 295 additional units. The venture has obtained a $165 million mortgage loan from Walker & Dunlop LLC through the delegated underwriting and servicing (DUS) program of Fannie Mae. The luxury multifamily property currently consists of two, 12-story towers with garage and surface parking. The apartment complex includes a mix of studio apartments and one-, two-, and three-bedroom units. The vacancy rate in the Pentagon City/Crystal City submarket stood at 3 percent in the fourth quarter of 2012, according to data research firm Reis. The average effective rent was $2,195 per month, up 4.7 percent from the fourth quarter of 2011. The property, which is 95.7 percent leased, was acquired from Washington, D.C.-based AvalonBay Communities. Earlier this month, AvalonBay also sold Avalon at Decoverly, a 564-unit apartment community located …
Update: Cole Credit Property Trust III has rejected the $5.7 billion buyout offer from American Realty Capital Properties (ARCP). Cole said it still intends to buy the company that sponsors it, Cole Holdings Corp. In a statement, American Realty said it was “not only surprised but disappointed” that Cole rejected the bid without “seeking to contact ARCP or better understand its offer in any way.” NEW YORK CITY — American Realty Capital Properties (NYSE: ARCP) has made an offer to buy Cole Credit Property Trust III for $5.7 billion this week, in a move that would create the largest publicly traded REIT in the net lease sector. New York-based American Realty, a publicly traded REIT, offered to acquire 100 percent of the outstanding common stock of Cole for at least $12 per share, or $5.7 billion in cash and stock. The deal is valued at more than $9 billion, with the assumption of debt. American Realty said it will increase its annual dividend by 2.2 percent to 93 cents if the deal closes, which means that Cole shareholders who select the stock consideration would receive an equivalent dividend of 74.4 cents, a 15 percent increase over Cole's current 65-cent dividend. …
PRINCETON, N.J. — Chambers Street Properties has acquired 100 percent of the interests in a $493 million portfolio of mostly office properties from Indianapolis-based Duke Realty Corporation (NYSE:DRE). The REIT has agreed to pay $98.6 million for the interest it doesn’t already own in the 17 commercial properties, according to media reports. The properties acquired are 16 office buildings and one warehouse/industrial building and include: · The Landings I, The Landings II and McAuley Place, three office buildings totaling 542,000 square feet in Cincinnati · Atrium I and Easton III, two office buildings totaling 451,000 square feet in Columbus, Ohio · Point West I, an 183,000-square-foot office building in Dallas · Miramar I and II, two office buildings totaling 223,000 square feet in Fort Lauderdale, Fla. · 22535 Colonial Parkway, a 90,000-square-foot office building in Houston, Texas · Norman Pointe I and II, two office buildings totaling 537,000 square feet in Minneapolis · Celebration Office Center and Northpoint III, two office buildings totaling 209,000 square feet in Orlando, Fla. · Goodyear Crossing Ind. Park II, an 820,000-square-foot warehouse/distribution facility in Phoenix · 1400 Perimeter Park Drive, 3900 N. Paramount Parkway and 3900 S. Paramount Parkway, three office buildings totaling 265,000 …
MIAMI — Terreno Realty Corp. (NYSE: TRNO), a publicly traded REIT, has acquired a 50,000-square-foot industrial warehouse at 12600 NW 107th Ave. in Miami-Dade's Medley submarket for $5.1 million. CaribTrans Inc., a Caribbean shipping company offering air and ocean freight services, occupies the property. Steven Medwin and Nick Wigoda of Jones Lang LaSalle (JLL) represented the seller, LMS Realty, in the transaction. According to JLL, Miami’s position as the gateway to and from Latin America and the Caribbean, coupled with increasing trade activity with Europe and Asia, has led institutional-grade owners to make significant long-term investments in the area. Miami broke into the top 10 customs districts in the U.S. in 2012, with a record $124.7 billion in trade volume being routed through the area. The stock price of San Francisco-based Terreno Realty closed at $17.68 per share on Thursday, March 14, up from $13.59 per share one year ago.
AUSTIN, TEXAS — Summit Hotel Properties Inc. (NYSE: INN), a hotel investment REIT based in Austin, has purchased a portfolio of five unencumbered hotels in Louisiana for $135 million. An affiliate of Marriott International Inc. will operate the hotels, which total 823 rooms, under their current franchise flags. “These hotels are very well-positioned throughout the diverse areas of the New Orleans metropolitan market,” says Dan Hansen, president and CEO of Summit Hotel Properties. The five hotels include: the 153-room Courtyard by Marriott in Metairie the 120-room Residence Inn by Marriott in Metairie the 202-room Courtyard by Marriott in New Orleans near the Ernest N. Morial Convention Center the 208 SpringHill Suites by Marriott in New Orleans near the convention center the 140-room Courtyard by Marriott in downtown New Orleans near the French Quarter “From the suburban community of Metairie to the bustling convention center to the heart of the French Quarter, these hotels will allow us to take advantage of the substantial business and leisure demand in this market,” says Hansen. Summit Hotel Properties funded the acquisition with available cash and borrowings from its senior secured revolving credit facility. As of today, Summit’s portfolio includes 91 hotels totaling 10,309 rooms …
CHICAGO — Real estate investment firm Aviv has commenced the initial public offering of 13,200,000 shares of its common stock. The estimated price range of the common stock is between $18 and $20 per share. The underwriters have the option to purchase up to an additional 1,980,000 shares of common stock to cover overallotments. The company's common stock has been approved for listing on the New York Stock Exchange under the symbol “AVIV.” Aviv intends to use the net proceeds from the offering to repay certain indebtedness and for general corporate purposes, including the potential acquisition of additional properties. Morgan Stanley, BofA Merrill Lynch and Goldman, Sachs & Co. are acting as joint book-running managers of the offering, and Citigroup, RBC Capital Markets, SunTrust Robinson Humphrey, RBS and CSCA will act as co-managers.
LOS ANGELES — An affiliate of Oaktree Capital Management LP (NYSE: OAK), in partnership with National Financial Realty Inc. (NFR), has acquired a portfolio of 40 office buildings for $240 million. The acquisition of the 3.4 million-square-foot office portfolio, which is 90 percent leased to Wells Fargo Bank, establishes NFR as the largest privately held investment firm focused on acquiring and operating properties leased to regulated financial institutions. The seller is First States Investors B LP, an affiliate of Newport Beach, Calif.-based KBS REIT I, a nontraded REIT. KBS said a year ago that it was selling assets to pay down debt and return money to investors, according to Bloomberg. “The acquisition is another example of Oaktree’s commitment to relationship-based transactions with well-positioned strategic operating partners like NFR, in addition to lenders and borrowers in need of capital solutions,” says John Brady, managing director and head of global real estate for Oaktree. Properties in the portfolio are leased on a long-term basis to Wells Fargo and include mission critical operations facilities as well as branch offices in eight Eastern and Southeastern states: North Carolina, South Carolina, Virginia, Florida, New Jersey, Pennsylvania, Maryland and Georgia. North Carolina is home to the …