By Matt Valley Any fears of a slowdown in the U.S. labor market in the wake of sequestration and higher payroll taxes were put to rest last Friday — at least temporarily — when the Bureau of Labor Statistics reported 195,000 net new payroll jobs in June. In addition, the totals for April and May were revised higher by a combined 70,000, raising the average monthly increase through the first half of the year above the 200,000 threshold. The private sector added 202,000 jobs in June, offset by a loss of 7,000 government jobs. The unemployment rate held steady at 7.6 percent. Sectors posting healthy job gains included leisure and hospitality (+75,000), professional and business services (+53,000), retail trade (+37,100), and healthcare and social assistance (+23,500). Besides government, some key sectors shedding jobs included educational services (-10,600), manufacturing (-6,000), transportation and warehousing (-5,100), and information (-5,000). REBusinessOnline spoke with Bob Bach, national director of market analytics for Newmark Grubb Knight Frank, and Ryan Severino, senior economist at Reis, to gain a clearer perspective on the state of the employment market. REBO: The leisure and hospitality sector led all employment categories in June with 75,000 net new jobs. Why is the …
CINCINNATI AND MATTHEWS, N.C. — The Kroger Co. (NYSE: KR) and Harris Teeter Supermarkets Inc. (NYSE: HTSI) have signed a definitive merger agreement whereby Kroger will purchase all outstanding shares of Harris Teeter for $49.38 per share in cash. The transaction is valued at $2.5 billion. “We are excited to welcome Harris Teeter to the Kroger family,” says David Dillon, chairman and CEO of Kroger. “Harris Teeter is an exceptional company with a great brand, friendly and talented associates, and attractive store formats in vibrant markets run by a first-class management team. This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates. We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands.” Together, the companies will operate 2,631 supermarkets and employ more than 368,300 employees across 34 states and Washington, D.C. Harris Teeter will continue to operate its stores as a subsidiary of The Kroger Co. and will retain its senior management team to lead the company. There are no plans to close stores and employees will continue to have job opportunities with both companies. Kroger will retain a base …
SAN FRANCISCO – The 338-room Ritz-Carlton San Francisco has sold to Thayer Fund VI for an undisclosed sum. The hotel is located at 600 Stockton Street. Thayer plans to invest up to $17 million into the property within its first 24 months of ownership. The fund worked on behalf of Thayer Lodging Group. This was the fund’s first investment. It is targeted as a $300-million fund. Thayer also owns the nearby J.W. Marriott San Francisco.
MANTECA, CALIF. — Stadium Center Shopping Center, a 421,126-square-foot community shopping center in Manteca, has sold to Excel Trust for $41.1 million. The center is located at the northwest quadrant of State Route 120 and Airport Way just southeast of Stockton. It is currently 96.3 percent leased. Notable tenants include Costco, Kohl’s, Ross Dress for Less, OfficeMax, Old Navy and Jo-Ann Fabrics. Costco and Kohl’s, which occupy about 154,000 square feet and 88,800 square feet, respectively, were not part of the sale. The acquisition did include four graded land parcels that are entitled for an additional 17,600 square feet of leasable space. Lucescu Realty represented the seller, Kitchell Development Company, and secured the buyer in this transaction.
SAN FRANCISCO – The 338-room Ritz-Carlton San Francisco has sold to Thayer Fund VI for an undisclosed sum. The hotel is located at 600 Stockton Street. Thayer plans to invest up to $17 million into the property within its first 24 months of ownership. The fund worked on behalf of Thayer Lodging Group. This was the fund’s first investment. It is targeted as a $300-million fund. Thayer also owns the nearby J.W. Marriott San Francisco.
MANTECA, CALIF. — Stadium Center Shopping Center, a 421,126-square-foot community shopping center in Manteca, has sold to Excel Trust for $41.1 million. The center is located at the northwest quadrant of State Route 120 and Airport Way just southeast of Stockton. It is currently 96.3 percent leased. Notable tenants include Costco, Kohl’s, Ross Dress for Less, OfficeMax, Old Navy and Jo-Ann Fabrics. Costco and Kohl’s, which occupy about 154,000 square feet and 88,800 square feet, respectively, were not part of the sale. The acquisition did include four graded land parcels that are entitled for an additional 17,600 square feet of leasable space. Lucescu Realty represented the seller, Kitchell Development Company, and secured the buyer in this transaction.
The San Francisco Bay Area’s major warehouse/distribution and manufacturing hub can be found along the I-880 corridor in the East Bay. This region’s industrial market has enjoyed steady growth with both overall vacancy rates and asking rental rates improving by about 10 percent year-over-year. The overall vacancy rate in the first quarter of 2013 was 10.22 percent — a three-year low — while the asking rental rate was $7.44 per square foot, triple-net, annually. Interestingly, the most significant growth this year came from the market’s largest segment: the warehouse sector. The warehouse market’s vacancy rate dropped by more than 25 percent year-over-year, to just 8.27 percent. In fact, the vacancy rates in all I-880 warehouse submarkets, aside from Newark, now sit at less than 10 percent. Asking rental rates in the warehouse market increased by nearly 8 percent to $4.80 per square foot, triple-net, annually. Several properties were listed during the second quarter of 2013 and therefore not included in these statistics. However, these properties boast asking rates as high as $5.76. Cornish & Carey Commercial Newmark Knight Frank believes these latest trends indicate an imminent spike in asking rates in the warehouse market. Third-party logistics providers, or 3PLs, are …
Charlotte has become one of the most desirable and sought-after investment markets in the nation with a diverse economy fueling job growth, attracting new talent and enticing investors. In fact, Charlotte had the largest population growth rate for urban areas of 1 million people or more in the decade from 2000 to 2010 and is expected to increase its population by another quarter-million people by 2020, fueled by diverse industries such as banking, energy, healthcare, manufacturing and transportation. With 37,000 jobs created in 2012, Charlotte’s employment has added back every job lost during the recent recession, eclipsing its previous high-water mark set in 2007. Approximately 50 companies have announced major expansions or relocations in the Charlotte area over the past year-and-a-half. Highlights include Metlife announcing plans to establish a hub for its U.S. retail business in Charlotte bringing 1,300 jobs to the city and Convergys, the business process outsourcing giant, announced plans to create 1,600 jobs. From a multifamily operations perspective, the Charlotte MSA has seen outstanding performance over the last two years with both total occupancy and average rents at their highest levels in the past 10 years. With current occupancy levels above 95 percent (increased by approximately 490 …
The top 10 fastest growing subdivisions in San Antonio had a combined 1,832 housing starts in fourth quarter 2012, according to a recent report from housing-market research firm Metrostudy. And that number is already up with 2,042 new home starts in first quarter 2013, a 24.3 percent increase over the same time period last year. So far, builders are on track to build 8,478 homes this year, as major markets in Texas continues to outperform the nation. Alamo Ranch is the bright star in the bunch. Statistics solidly place this northwest subdivision in the top spot of San Antonio’s fastest growing subdivisions with 649 new housing starts in fourth quarter 2012. Bulverde Village, in second place, saw 169 new home starts during the same time. April single-family home sales rose 14 percent over last year and 4.5 percent from last month, according to the San Antonio Board of Realtors. In keeping with the boost in housing, retail is showing solid, if slow, growth. San Antonio retail occupancy rates increased for the fourth consecutive quarter, reaching 94.5 percent in first quarter 2013. And while rental rates remain fairly flat, according to research from Delta Associates, the second half of 2013 is …
LOS ANGELES — Capri Capital Partners LLC, on behalf of an institutional investor, and Kennedy Wilson (NYSE: KW) have acquired all of the leasehold interest in Esprit, a multifamily mixed-use project in Los Angeles, for $225 million. The 18-acre property includes 437 units and a 227-slip anchorage facility in Marina del Ray. The five-building apartment complex offers a range of studio to four-bedroom units that all feature views of the water, in-unit washer and dryers, 9-foot vaulted ceilings and private patios. The community also includes a pedestrian promenade that runs alongside the waterfront directly in front of the apartment complex. “Esprit is considered the finest multifamily mixed-use property in Marina del Rey, and an off-market transaction to acquire a property of this size and quality is very rare,” says Kurt Zech, president of Kennedy Wilson multifamily management group. “The property was stabilized at 94 percent occupancy in late 2012 after a lengthy three-year lease-up period and still has plenty of upside for rental growth in a steadily improving economy.” Beginning immediately, the companies will begin a series of renovations at Esprit to enhance the marketability of the asset. Capri and Kennedy Wilson will invest approximately $5.3 million in additional capital …