PHILADELPHIA — Beech Street Capital has arranged a $10.9 million Fannie Mae loan for the refinancing of a four-property apartment portfolio, totaling 230 units, in Philadelphia. Avi Weinstock and Chaim Tessler of Meridian Capital Group originated the seven-year loan. The properties were constructed in the 1950s and 1960s and major renovations have been completed in the past five years. Each property is fully occupied.
With tenant demand increasing and retailers looking to expand in Cleveland, positive net absorption and limited development have created a balanced retail market that will lead to improvement and growth in 2012, according to Marcus & Millichap. The construction levels are relatively low with only 260,000 square feet of shopping center space scheduled to be completed this year, more than doubling last year’s 121,000 square feet. By comparison, 2008 saw 1 million square feet in retail completions. “When you look at it and put it in perspective versus construction levels seen during the last 10 years, it’s significantly below the levels we saw at the height of the market,” says Scott Wiles, a director and vice president within Marcus and Millichap’s National Retail Group. “It was an expected trend that last year was the low point for construction levels in the submarket, and that stems from 2009 and 2010 being very inactive leasing markets,” Wiles says. This year’s limited construction will aid Cleveland’s retail growth, however, in light of an uptick in leasing. “The positive thing about Cleveland is that we never see the construction levels that some of the sexier markets see, so it doesn’t throw our supply and …
SIOUX FALLS, S.C. — Summit Hotel Properties (NYSE: INN), a real estate investment trust, has entered into three agreements to acquire 10 hotels, including eight properties from Hyatt Hotels Corp., for a total of $114.6 million. Included in the Hyatt portfolio is the 127-room Hyatt Place-Arlington in Arlington, Texas; the 151-room Hyatt Place-Lombard in Lombard, Ill.; the 127-room Hyatt Place-Phoenix in Phoenix; the 127-room Hyatt Place-Scottsdale in Scottsdale, Ariz.; the 123-room Hyatt Place-Owings Mills in Owings Mills, Md.; the 127-room Hyatt Place-Park Meadows in Lone Tree, Colo.; the 126-room Hyatt Place-Denver Tech Center and the 135-room Hyatt House-Denver Tech Center in Englewood, Colo. The sale price of the Hyatt portfolio is $87.4 million. “We continue to see terrific opportunities to grow our portfolio,” says Dan Hansen, president and CEO of Sioux Falls-based Summit Hotel Properties. “This acquisition is a result of our great relationship with Hyatt and we look forward to exploring future opportunities and continuing to grow that relationship.” The company plans to enter into an agreement with Select Hotels Group, a Hyatt affiliate, to operate the hotels. Summit Hotel Properties has also agreed to acquire the 98-room Hilton Garden Inn in Fort Worth, Texas, for $7.2 million, as …
AUSTIN, TEXAS — A joint venture between Thomas Properties Group (NASDAQ: TPGI) and the California State Teacher’s Retirement System (CalSTRS) has acquired an eight-building office portfolio totaling 3 million square feet for $859 million. The portfolio includes Frost Bank Tower, 300 W. 6th St., One American Center, San Jacinto Center and One Congress Plaza in downtown Austin and Westech 360, Park Centre and Great Hills Plaza in suburban Austin. “In keeping with our strategic plan to acquire wholly owned or equally controlled properties that are accretive to our after-tax cash flow, we are pleased with the opportunity to increase our investment in Austin and more particularly, in a group of assets that we consider to be crown jewels,” says James Thomas, CEO and chairman of Thomas Properties Group. “We are very encouraged by the continued strength in the Austin market and the prospects for future growth.” The seller was TPG-Austin Portfolio Syndication, a venture between Lehman Brothers Holdings, an offshore sovereign wealth fund and a previous joint venture between TPG/CalSTRS. A subsidiary of Thomas Properties Group is the managing member with a 50 percent interest and CalSTRS owns the other 50 percent. Thomas Properties Group has also entered into an …
HOUSTON — Construction has begun the second phase of BLVD Place, a mixed-use development located in Houston's Uptown District. This phase of BLVD Place will contain approximately 211,000 square feet of retail and office space. The development is 60 percent pre-leased and will include a 48,500-square-foot Whole Foods and Frost Bank will occupy 53,000 square feet. W.S. Bellows Construction Corp. is the general contractor for Phase II and Comerica Bank, Wells Fargo, Whitney Bank and Cadence Bank are providing construction financing. San Francisco-based Stockbridge Capital Group served as the equity investment advisor, AECOM's Los Angeles office designed the project and Walter P. Moore served as the civil engineer. The transaction was closed at Stewart Title Co. Bill Boyer and Charles Gordon of CBRE Group, along with Scott Gardner of SRS Realty, represented Frost Bank in its lease transaction. Chip Colvill of Colvill Office Properties and Elise Weatherall of Wulfe & Co. represented the owner.
GREENWICH, CONN. — Greenwich-based Wheelock Street Capital has acquired 15 hotels in two separate, unrelated transactions totaling $221 million. Wheelock acquired a 12-hotel portfolio from affiliates of Inland American Real Estate Trust for approximately $116 million in a deal that closed last Thursday. The next day, Wheelock closed on the acquisition of three full-service hotels from Sunstone Hotel Investors (NYSE:SHO) for approximately $105 million. “We are delighted to be adding this collection of high-quality hotels to our portfolio,” says Jonathan Paul, managing partner at Wheelock Street Capital. For the 12-property Inland transaction, GE Capital, Franchise Finance provided newly originated senior financing. The rest was financed through a combination of assumed CMBS loans. CBRE Group and Maxim Hotel Brokerage represented Inland in the transaction. The 12-property portfolio is located primarily in the Southeast with other hotels located in Arizona, Texas and Illinois. Ten of the 12 hotels are branded under long-term license agreements with affiliates of Hilton and Marriott International. The other two hotels are licensed by affiliates of Choice Hotels and Intercontinental Hotels Group. McKibbon Hotel Management and the North Central Group will manage the 12-property portfolio. For the three-property portfolio sold by Sunstone, Wheelock assumed the hotels’ existing CMBS …
NEW YORK CITY — Strategic Hotels & Resorts (NYSE: BEE) has closed on the previously announced $362.3 million purchase of the 509-room Essex House Hotel, located in New York City. “We are proud to once again be involved with this marquee asset, especially given its attractive deal terms, unique and enviable Central Park South location and tremendous upside potential,” says Laurence Geller, president and CEO of Strategic Hotels. The company established a joint venture agreement with an affiliate of KSL Capital Partners to fund the equity portion of the transaction. Strategic Hotels will own 51 percent of the joint venture. The partnership closed on a $190 million first mortgage loan from Bank of America to fund the balance of the purchase price. Construction will begin immediately on property improvement plans to distinguish the property under the JW Marriott flag. Additionally, Marriott International will begin operating the hotel tomorrow, Sept. 18. “Consistent with our strategy of being an opportunistic investor, we moved quickly to take advantage of this highly compelling opportunity,” Geller says. “We are thrilled to have both another irreplaceable asset with Marriott International and to launch a new partnership with KSL Capital Parters, one of the industry’s most admired …
Retail operations have likely bottomed in Cincinnati and will show signs of modest improvement through the remainder of 2012. Encouraged by a more stable job market and restored savings accounts, consumers are beginning to spend more freely. National retailers, which stalled expansion plans during the recession, will capitalize on discounted rents to move into prime retail corridors in Hamilton County and Northern Kentucky. Anchored shopping centers will outperform due to their ability to draw steady shopper traffic, keeping vacancy at Class A properties tight. The revitalization of the CBD will attract young professionals, while the recent opening of The Banks project will boost visitor volume. Demand will pick up for inline space within the area as restaurants and boutiques look to capture the increase in foot traffic. Developers who built in outlying areas will struggle to backfill unanchored strip centers. Until single- family home sales pick up, lenders will be unwilling to provide start-up financing for local retailers, leading to a weak recovery in tertiary markets. By the Numbers Employment gains are driving modest improvement in the retail sector. Cincinnati employers created 10,400 jobs during the first quarter. On a year-over-year basis, 20,300 jobs were generated, an increase of 2.1 …
ST. LOUIS, MO. — hhgregg (NYSE:HGG), the Indianapolis-based appliance and electronics retailer, will open four new stores in Missouri on Thursday, Sept. 13. The stores will be located at 101 Gravois Bluff Dr. in Fenton, Mo.; 301 Costco Way in St. Peters, Mo.; 5925 N. Illinois in Fairview Heights, Ill.; and along Chesterfield-Airport Road in Chesterfield, Mo. The stores will showcase more than 100 HDTVs and 350 major appliances will be in stock. The locations will also feature new product categories consisting of fitness equipment and furniture. More than 240 employees have been hired to staff the new St. Louis area stores.
SAN DIEGO — Chesapeake Lodging Trust (NYSE:CHSP) has purchased the 429-room Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira Road in San Diego, for $62 million. The hotel sits on a 19-acre, waterfront site that includes a 187-slip marina, which is currently 97 percent occupied. Chesapeake Lodging partially funded the purchase with available cash, while the balance was paid from its revolving credit facility. The purchase price equates to approximately $144,500 per key. “We are thrilled to expand our strategic relationship with Hyatt and purchase our second high-quality San Diego hotel, which is located directly on the bay with spectacular ocean views,” says James L. Francis, president and CEO of Chesapeake Lodging. “With the previous owner’s extensive renovation completed in 2007 and our planned $6 million softgood refresh, the Hyatt is the best positioned asset within the immediate marketplace.” The hotel features the full-service Blue Marble spa, the Red Marlin Restaurant Bar and Terrace with panoramic views, three lagoon-shaped pools each with its own 120-foot water slide, 37,000 square feet of meeting space and a water boat taxi service to a VIP entrance to Sea World. Most of the guestrooms average 400 square feet, while 137 of …
