LAS VEGAS – SLS Las Vegas has broken ground at the site of the former Sahara Hotel & Casino on the Las Vegas Strip. The Sahara, which was shuttered in 2011, will receive a $415-million makeover before reopening as the 1,600-room SLS Las Vegas hotel-casino in fall 2014. The Bazaar by José Andrés, Katsuya by Starck, The Sayers Club and Shelter nightclub have already signed on at the new resort, as has Fred Segal, which will operate a 10,000-square-foot retail outlet on property. SLS Las Vegas is owned by SBE Entertainment Group LLC and its equity partner, Stockbridge Capital Group.
TORONTO — Brookfield Asset Management Inc. (NYSE: BAM), a global alternative asset management firm headquartered in Toronto, has purchased a portfolio of 19 apartment communities in North Carolina, South Carolina and Virginia for $414 million. The portfolio totals 4,892 units and is 92 percent occupied. The acquisition will bring Brookfield’s portfolio to approximately 20,000 units throughout the country. “The acquisition of this attractive portfolio adds to Brookfield’s significant multi-family platform and positions us for continued growth in this property sector,” says David Arthur, managing partner at Brookfield Asset Management. The 19 multifamily properties include: Bridges at Chapel Hill in Carrboro, N.C. Chason Ridge in Fayetteville, N.C. Fairington in Charlotte, N.C. Hamptons at South Park in Charlotte Latitudes in Virginia Beach, Va. Mallard Creek I in Charlotte Mallard Creek II in Charlotte Marina Shores Waterfront in Cornelius, N.C. Oak Hollow in Cary, N.C. Oakbrook in Charlotte Paces Commons in Charlotte Paces Watch Apartments in Mt. Pleasant, S.C. Quail Hollow in Charlotte Bridges at South Point in Durham, N.C. The Timbers in Richmond, Va. Waterford Place in Greensboro, N.C. Waverly Place Apartments in N. Charleston, S.C. Bridges at Wind River in Morrisville, N.C. Woods Edge in Durham Fairfield Residential, an affiliate of …
CHICAGO— Although global hotel deal volume in 2013 is projected to remain in line with the most recent three-year average, Jones Lang LaSalle’s Hotels & Hospitality Group believes that signs point to an ongoing uptick in hotel transactions activity in the Americas sooner rather than later. Five forces will drive the hotel investment market during the next five years, pointed out Jones Lang LaSalle at the recent Americas Lodging Investment Summit (ALIS) at the J.W. Marriott Los Angeles LIVE. “There will be a significant amount of property coming to market in 2013 from a combination of the deleveraging occurring as $55 billion of CMBS loans mature in the next few years, and we’ll see investors who bought earlier in the cycle want their capital gains and they’ll sell,” said Arthur Adler, Americas CEO of Jones Lang LaSalle’s Hotels & Hospitality Group. “You can’t underestimate the composition of hotel ownership over a long period of time, as many hotels today are in the hands of traders versus holders,” emphasized Adler. Investors should watch the following five key forces and their impact on the hotel market: Boom or bust?: Global deal volume is projected to reach as high as $33 billion this …
CHARLOTTE, N.C. — Colonial Properties Trust (NYSE: CLP) has sold the 272,000-square-foot Metropolitan Midtown, a mixed-use property located in the heart of Charlotte, for $94 million in cash. The buyer was an institutional investor advised by JP Morgan Asset Management. The mixed-use asset includes 170,000 square feet of office space and 172,000 square feet of retail. Metropolitan Midtown was 93.5 percent occupied as of Dec. 31, 2012. Office tenants include the Charlotte Mecklenburg Hospital, New Dominion Bank and Pappas Properties. The retail portion features anchor tenants Marshalls, Best Buy and Trader Joe’s. According to the Charlotte Observer, Metropolitan Midtown is the redevelopment of Charlotte’s oldest enclosed mall, Midtown Square. Pappas Properties, Collet & Associates and Colonial Properties Trust developed the property. Ryan Clutter, Chris Decoufle, Mike Burkard and Patrick Gildea of CBRE's Charlotte office represented the seller in the transaction. “For core property acquisitions such as Metropolitan the buyer pool is extremely well-capitalized and typically will close all cash,” says Burkard. “Post-acquisition they may or may not place debt on the asset. Their ability to close without the need for financing helps streamline the acquisition process” Charlotte-based Colonial Properties Trust is a real estate investment trust that owns a portfolio …
Rachel Goff WASHINGTON, D.C. — The January nonfarm payroll report bolsters the argument that the U.S. economy is slowly improving, and the upward revisions to the 2012 data may encourage commercial real estate investors to take more risk, says Bob Bach, national director of market analytics for Newmark Grubb Knight Frank. Employers added 157,000 net new jobs in January, including 166,000 in the private sector. What’s more, the nation added 335,000 more workers to the employment rolls in 2012 than initially reported. “This report emboldens the risk takers moving into secondary markets and Class A-/B+ assets in primary markets, a trend that is already in place,” says Bach. “If investors believe the economy, specifically the labor market, is improving faster than previously thought, it means the outlook for net operating income at the property level also has improved.” The job gains were healthy across many sectors including retail (+32,600); construction (+28,000); education and health services sector (+25,000); leisure and hospitality (+23,000); and manufacturing (+4,000). For all of 2012, the manufacturing sector added 149,000 jobs, or a monthly average of 12,417 jobs. Two notable areas of contraction were in the transportation and warehousing sector (-14,000), and government (-9,000). REBusinessOnline.com asked Bach …
DENVER – A pair of contiguous, Class A office buildings in Denver have received $74 million in refinancing. The buildings are located at 1400 Wewatta and 1401 Wynkoop in the city’s Lower Downtown Denver (LoDo) District. The Wewatta property contains a 202,000-square-foot office building with ground-floor retail. The Wynkoop property contains a 98,000-square-foot office building with ground-floor retail and residential condominiums on the top four floors. The condos were not included in the collateral. The properties are connected by a sky bridge. They also share a parking garage.Notable tenants at the properties include Chipotle Mexican Grill’s world headquarters, Kilpatrick, Townsend & Stockton, LLC, Dorsey & Whitney LLP, Milliman and George K. Baum & Company. HFF’s Eric Tupler, Josh Simon and Jake Young worked on behalf of the borrower, Wewatta and Wynkoop PT LLC, a GE Asset Management and Crestone Partners managed entity. The team secured a permanent loan through a national life insurance company correspondent lender.
DENVER – A pair of contiguous, Class A office buildings in Denver have received $74 million in refinancing. The buildings are located at 1400 Wewatta and 1401 Wynkoop in the city’s Lower Downtown Denver (LoDo) District. The Wewatta property contains a 202,000-square-foot office building with ground-floor retail. The Wynkoop property contains a 98,000-square-foot office building with ground-floor retail and residential condominiums on the top four floors. The condos were not included in the collateral. The properties are connected by a sky bridge. They also share a parking garage. Notable tenants at the properties include Chipotle Mexican Grill’s world headquarters, Kilpatrick, Townsend & Stockton, LLC, Dorsey & Whitney LLP, Milliman and George K. Baum & Company. HFF’s Eric Tupler, Josh Simon and Jake Young worked on behalf of the borrower, Wewatta and Wynkoop PT LLC, a GE Asset Management and Crestone Partners managed entity. The team secured a permanent loan through a national life insurance company correspondent lender.
By Duke Realty Healthcare Team The healthcare industry and healthcare real estate have changed dramatically during the past several years. Healthcare reform, the Great Recession, lower reimbursements and other issues should continue to drive changes, including new uses of medical office space, creative new partnerships and an increase in monetization of outpatient facilities, according to Indianapolis-based Duke Realty Corp. (NYSE: DRE) Hospitals and health systems should see the following trends over the course of the next five years: 1. Higher-acuity care will increasingly move to medical office buildings (MOBs): The 2010 Patient Protection and Affordable Care Act requires hospitals to invest in, and implement, many costly new systems and procedures. Hospitals also face a continued downward pressure on both Medicare payments and private insurance, all of which is forcing them to look for possible ways to cut costs. MOBs offering higher-acuity care and/or non-acute care are an attractive solution because they cost less to build, operate and maintain than hospitals and inpatient facilities, for both physical and regulatory reasons. North Fulton Hospital’s new North Fulton Medical Plaza in Roswell, Ga., is a good example of an MOB that provides higher-acuity care. Also, outpatient facilities in suburban areas can be a …
VALLEY STREAM, N.Y. — The Macerich Co. (NYSE: MAC) has completed its $500 million acquisition of the Green Acres Mall in Valley Stream, closing a deal that's been in the works since last October. The shopping center owner and manager purchased the property from a subsidiary of New York-based Vornado Realty Trust. Vornado reported net proceeds from the sale were approximately $185 million following its repayment of the existing loan and closing costs. The 1.8 million-square-foot Green Acres Mall is located on the border of New York and Nassau County and serves customers in southeast Queens and southwest Nassau County. Anchor tenants include Macy's, Sears, Kohl's, BJ's Wholesale Club and Walmart. The super regional mall was renovated and expanded in 2007, and the mall's annual sales production exceeds $520 per square foot. The mall is 94 percent leased to tenants such as Aeropostale, American Eagle, Forever 21, H&M and Modell's sporting goods. Macerich funded its purchase with a $325 million, fixed-rate loan at an eight-year term, with the rest coming from a mix of cash on hand and Macerich's existing line of credit. After the deal was first announced last year, Macerich CEO and Chairman Arthur Coppola said the transaction …
BOSTON — The Roseland subsidiary of Mack-Cali Realty Corp. (NYSE: CLI) has broken ground on the $67 million Portside at Pier One, the residential component of a mixed-use community along the East Boston waterfront. The five-story building adjacent to the pier will include 150 market-rate units and 26 affordable units. The apartment community will feature a fitness center, business center, theater room, controlled access garage parking and 12-hour concierge services. The entire mixed-use development will include approximately 566 apartments and 70,000 square feet of ground-level retail space. Mitchell Hersh, president and CEO of Mack-Cali, says, “We are delighted to see this much-anticipated project get under way. The extraordinary public and residential aspects of this community, including an expanded marina and shipyard, world class waterfront park, and magnificent views of the downtown Boston skyline, will all combine to energize the East Boston waterfront.” The 176-unit apartment community is a joint venture with The Prudential Insurance Co., and is supported by a construction loan commitment led by Citizens Bank with participation by Salem Five. Boston-based Salem Five is a mutual savings bank that was founded in 1855. Roseland will oversee the leasing and management of the property. Mack-Cali, based in Edison, N.J., …