Sunday, June 30, 2013

Henderson and TIAA-CREF Form $63 Billion Property Giant




National Commercial Real Estate News From CoStar Group





Henderson and TIAA-CREF Form $63 Billion Property Giant



TIAA-CREF and Henderson Global Investors, a European investment manager, have launched a $63 billion global real estate investment management company, TIAA Henderson Global Real Estate.

The new company will offer clients expanded investment opportunities in the global real estate market while helping to accelerate the growth of each firm’s real estate investment business. Taken together, the partners said the scale of the new venture matches that...









Related Expands Funding Platform With Highbridge JV Targeting Real Estate Projects



Related Cos., one of the nation’s most prolific real estate development and investment firms, is partnering with deep-pocketed private investment firm Highbridge Principal Strategies (HPS) to invest in real estate debt, specifically gap financing for commercial and residential real estate projects across the U.S. that are "in transition."

By leveraging Related's access to deal-flow and HPS's extensive mezzanine credit experience, the pair hope...









IRS Is Watching CBS’ REIT Conversion



CBS Corp. has formally decided to spin-off its billboard subsidiary, CBS Outdoor Americas, into a separate REIT. If the conversion goes through, CBS would also dispose of all of its common stock in the newly formed REIT.

The move comes at a time when the IRS has put firms owning non-traditional real estate that are seeking to qualify as real estate investment trusts on notice that it has decided to study the current legal standards it uses to define...









Facility Closures & Downsizings: Best Buy: Two Steps Back, One Step Forward



Best Buy Co. Inc. gradually continues to optimize its U.S. real estate portfolio.

The Minneapolis-based retailer’s key focus has been on occupancy cost reductions through both store closings and renegotiated leases. Over time, the company said it believes there is an opportunity to trim $400 million in costs in the U.S., Canada and Mexico.

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Through the first 11 months of its 2013 fiscal year, the...






Friday, June 28, 2013

Office, Parking Portion of John Hancock Center Sold




National Commercial Real Estate News From CoStar Group





Office, Parking Portion of John Hancock Center Sold



A group of investors led by The Hearn Co. has acquired the office and parking portions of the John Hancock Center, one of the largest skyscrapers in the U.S.

Financial terms of the transaction were not disclosed by Hearn, head of the buyer’s group that also includes The Lynd Co. and Mount Kellett Capital Management LP, but multiple published reports listed the sale price at $140 million.

The 100-story tower at 875 N. Michigan Ave., well known...






Kimco Completes InTown Sale to Starwood Capital




National





Kimco Completes InTown Sale to Starwood Capital



NEW HYDE PARK, NY-The sale of 138 extended-stay properties goes a long way toward reducing the shopping center REIT’s non-retail holdings to its lowest level since 2010.











Schorsch Closes on $1.3B in GE Capital Assets



NEW YORK CITY-In two separate transactions, ARCP and ARCT IV have acquired 824 net lease assets in the former Trustreet portfolio; ARCT IV plans to buy the rest in the third quarter.








CoStar's People of Note (June 23 - 29)




National Commercial Real Estate News From CoStar Group





CoStar's People of Note (June 23 - 29)



This week's People of Note includes the following markets: Chicago, Northern New Jersey, Atlanta, Indianapolis, Washington DC, Austin, South Florida, Orange County CA, and Houston.

GLOBAL
JLL Promotes 35 International Directors
By Justin Sumner

Jones Lang LaSalle (NYSE: JLL) has promoted 35 colleagues across the globe to the firm's top leadership group, naming them international directors for 2013.

"Our new inte






What Foreign Capital Wants Today




National





What Foreign Capital Wants Today



MIAMI—FTI Real Estate's Jahn Brodwin tells GlobeSt.com's Jennifer LeClaire what he sees happening in the global capital markets.











No Magic Formula To Special Servicers



SAN DIEGO-Knowing to which laws and guidelines special servicers are beholden helps demystify their actions, Shlomo Chopp of Case Property Services tells GlobeSt.com EXCLUSIVELY.











RealtyTrac Adds Chase To Broker Network



IRVINE, CA-The online resource of real estate and foreclosure data selects Chase International as part of the RealtyTrac Network available to brokerage companies nationwide.











Fed's Dudley: QE3, Low Rates Will Stick Around



NEW YORK CITY-At a press briefing Thursday, the New York Fed’s president said the Federal Open Market Committee’s monetary policy “depends on the outlook, rather than the calendar.”








Thursday, June 27, 2013

SIR Launches $300M Stock Sale




National





SIR Launches $300M Stock Sale



NEWTON, MA-A pending $143.6-million net lease acquisition is one possible outlet for net proceeds from the sale of common shares.








Awareness, Adaptability Key for Managers




National





Awareness, Adaptability Key for Managers



SAN DIEGO-Being aware of behavioral differences among the generations and being adaptable to owners’ changing needs are important elements of successful property management, said speakers at BOMA’s Every Building Conference here this week.











Designing the Business School of the Future



KANSAS CITY—In this UPDATE to Monday’s story, one of the developers of the University of Missouri’s innovative business school tells GlobeSt.com what makes the structure unique.








Wednesday, June 26, 2013

CRE Fundamentals Continue To Recover -- So Where Are All the Deals?




National Commercial Real Estate News From CoStar Group





CRE Fundamentals Continue To Recover -- So Where Are All the Deals?



A recent analysis of data from the CoStar Commercial Repeat Sale Index (CCRSI) finds that commercial real estate investment transaction activity has progressed much like the overall economy, showing steady but painfully slow improvement.

While prices have recovered from the trough of the Great Recession in all major markets except Jacksonville and Northern New Jersey since mid-2010, the current environment is definitely of the half-full/half-empty...






Related, Highbridge Form JV to Provide Gap Funding




National





Related, Highbridge Form JV to Provide Gap Funding



NEW YORK CITY-Related Companies and Highbridge Principal Strategies report they have formed a joint venture to manage a new credit platform that will invest $800 million in real estate debt.








Office Real Estate Icons II




National





Office Real Estate Icons II



NEW YORK CITY—In this Second of a Three-Part Series, meet some of the legends who have become household names of the US office sector.











Pay It Forward



NEW YORK CITY-Sometimes, design isn’t merely about building the next big skyscraper or overpriced multifamily property.








Borrower Returning Keys on 10 Million SF of Industrial Properties Fit for a Prince




National Commercial Real Estate News From CoStar Group





Borrower Returning Keys on 10 Million SF of Industrial Properties Fit for a Prince



Following their recent transfer to special servicing, related borrowing entities are giving back the keys on two industrial portfolios containing 10.5 million net rentable square feet.

The two portfolios are commonly known as the StratREAL industrial portfolios and consist of 23 industrial buildings located across Ohio, Tennessee and California.

This month, the $186 million Portfolio II loan secured in CMBS JPMCC 2007-LDP10 reported a new reduced...






Tenants Value Health/Hygiene Amenities




National





Tenants Value Health/Hygiene Amenities



SAN DIEGO-Building amenities that support workplace health and hygiene present may attract and retain tenants, according to research revealed during this week’s BOMA conference here.








Tuesday, June 25, 2013

Gil Medina Departs C&W for CBRE




National





Gil Medina Departs C&W for CBRE



EAST RUTHERFORD, NJ-Cushman & Wakefield's executive managing director Gualbarto "Gil" Medina has "transitioned" out and will be announced as a new CBRE Group executive tomorrow, GlobeSt.com has learned..








In The Pipeline: CoStar Development & Construction News for June 23 - 29




National Commercial Real Estate News From CoStar Group





In The Pipeline: CoStar Development & Construction News for June 23 - 29



$1.6B Merchants Row Breaks Ground In Quincy
A host of dignitaries gathered in downtown Quincy, MA, to celebrate the groundbreaking for Merchants Row, the first major block of mixed-use development being constructed within the new Quincy Center master development plan.

Merchants Row is expected to bring 306 loft units in two buildings, the Kilroy and the Granite Trust lofts. The latter will include more than 35,000 square feet of street retail...









Health IT Firm Leases 75,000-SF in Jamestown's Ponce City Market



athenahealth, Inc.(Nasdaq:ATHN), a fast-growing provider of electronic health record services, has leased 75,000 square feet to become the first office tenant in Jamestown Properties' Ponce City Market redevelopment project in Atlanta.

The Masschusetts-based company currently has approximately 140 employees in Alpharetta who will relocate to the Ponce City Market site when it opens in 2014. The company said it plans to add more than 500 workers...






S&P: Home Price Gains Hit New High




National





S&P: Home Price Gains Hit New High



NEW YORK CITY-With all cities in the indices showing positive annual returns for at least the past four months, “the recovery is definitely broad based,” says S&P Dow Jones’ Blitzer.








Are You Ready for Work-at-Will?




National





Are You Ready for Work-at-Will?



NEW YORK CITY-We all know the nature of the workplace is changing. But one Manhattan-based start-up is raising the bar to unseen (obscene?) levels. Can you cope?











First American Debuts New Web Portal



SANTA ANA, CA-The title insurance company releases the CRE version of myFirstAm, a Web portal designed to streamline commercial real estate transactions.











CRE Needs More Opportunities for Women



SAN FRANCISCO-In this EXCLUSIVE preview to her panel discussion at BOMA in San Diego today, Sandra Boyle of Cushman & Wakefield tells GlobeSt.com that CRE needs to create a pipeline of opportunities for women.











Norandex Lease Fills Garland Facility



GARLAND, TX—The long-term lease brings the the Gateway East Business Center to full occupancy.








Schorsch: Market Overreacts on Interest Rates




National





Schorsch: Market Overreacts on Interest Rates



NEW YORK CITY-The ARC chairman and CEO, at the New York Stock Exchange to ring the opening bell, tells GlobeSt.com’s Paul Bubny that now is “a great buying opportunity.”








Monday, June 24, 2013

Paramount Twins Go Separate Ways




National





Paramount Twins Go Separate Ways



PARAMOUNT, CA-In separate deals, two different owners are picking up Paramount Town Center East and West retail assets.








Kimco Boosts Stake in Retail Portfolio




National





Kimco Boosts Stake in Retail Portfolio



NEW HYDE PARK, NY-The increase in ownership interest coincides with Blackstone affiliates closing on their controlling stake in the Kimco-UBS joint venture.











Walker & Dunlop Inks $61M in Student Housing Loans



AUSTIN, TX—The Bethesda, MD-based firm made loans on five properties in various locations around the country.








SBA Opens Door Wider to Lending




National





SBA Opens Door Wider to Lending



WASHINGTON, DC-For many small, owner-occupied sales, US Small Business Administration financing has been much appreciated.











Foreclosure-Prevention Efforts Delay Process



IRVINE, CA-In an to an earlier story, RealtyTrac’s latest heat map shows foreclosure activity nationwide.








Real Estate Is Local; So Are Price, Amenities




National Commercial Real Estate News From CoStar Group





Real Estate Is Local; So Are Price, Amenities



Now that apartment fundamentals have fully recovered and pricing is a mere 3% off prior peak levels, investors playing in this asset class need to be very smart in order to get healthy returns. Those with the best-informed assumptions will make the most successful decisions.

And when calculating top-line revenue potential, it's important to understand what renters appear to be willing to pay for, but also important to know exactly how much they...









Facility Closures & Downsizings: Qdoba Mexican Grill To Close 67 Locations



Jack in the Box Inc. has completed a review of market performance for its Qdoba Mexican Grill brand and said it plans to close 67 of its company-operated restaurants by Sept. 29. As of the end of the second quarter, Qdoba’s system included 647 restaurants, of which 340 were company-operated.

The decision to close the restaurants followed a comprehensive unit-level analysis of sales, cash flows and other key performance metrics, as well as site...









Ashford Hospitality To Spin Off Luxury Hotels into New REIT



Ashford Hospitality Trust Inc. approved a plan to spin-off an 80% ownership interest in an 8-hotel portfolio, totaling 3,146 rooms (2,912 owned rooms), to holders of Ashford Trust common stock.

The distribution is expected to be comprised of common stock in Ashford Hospitality Prime Inc. (“Ashford Prime”), a newly formed company to which Ashford Trust plans to transfer the portfolio interests.

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Ashford...









Capital Markets Round Up: SunTrust Out To Grow CRE Lending Again



Prior to the Great Recession, SunTrust Bank was one of the primary providers of commercial real estate capital. Now the bank, one of the largest in the Mid-Atlantic and Southeast, is gearing up its CRE lending again.

Aleem Gillani, CFO of SunTrust Banks Inc., speaking at the Morgan Stanley Financials Conference 2013 last week said the bank has put its distress problems behind it and is back to "focus on growth."

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Friday, June 21, 2013

Distressed Opportunities Can Still Be Found




National





Distressed Opportunities Can Still Be Found



SAN DIEGO-Although this number is declining, more than $100 million of troubled assets is still outstanding, says Jess Bressi, who spoke at RealShare Investment & Finance here last week.








CMBS Notes Due Motivate Sellers




National





CMBS Notes Due Motivate Sellers



NEWPORT BEACH, CA-With the surge of CMBS notes coming due, more owners will be encouraged to sell, says Guy Johnson of Johnson Capital, who spoke at the recent Sperry Commercial Broker Exchange here.








Westfield Bullish on Colorado Springs




National





Westfield Bullish on Colorado Springs



COLORADO SPRINGS, CO-The Denver CRE developer is becoming active in healthcare real estate development, despite an MOB vacancy of 15%.








Thursday, June 20, 2013

CoStar's People of Note (June 16 - 22)




National Commercial Real Estate News From CoStar Group





CoStar's People of Note (June 16 - 22)



This week's People of Note includes the following markets: California, San Francisco, New York City, East Bay, Washington DC, Houston, and Atlanta.

CALIFORNIA
DTZ Expands Global Services with Four New Executive Hires
By Justin Sumner

DTZ, a UGL Company and leading global services firm, has expanded its Global Corporate Services (GCS) Americas Group with four new h






Schorsch: Non-Traded REITs 'Should Be $350B'




National





Schorsch: Non-Traded REITs 'Should Be $350B'



NEW YORK CITY-While the sector has the potential for “significant growth,” its participants need to demonstrate “institutional investment acumen,” CEOs said at Thursday’s IMN symposium.








Corporate Real Estate Gets Professionalized




National





Corporate Real Estate Gets Professionalized



CHICAGO—Maureen Ehrenberg, a top official at CBRE, tells GlobeSt.com how and why the world of corporate real estate changed and got close to the C-Suites.








Wednesday, June 19, 2013

Lone Star Raising $6B for Distressed CRE




National





Lone Star Raising $6B for Distressed CRE



DALLAS—Distress game behemoth Lone Star Funds is now gearing up to raise its third real estate vehicle, with a target of $6 billion, according to SEC documents.











Little Doubt About Interest Rate Trajectory



WASHINGTON, DC-Count on it: Ben Bernanke is taking the punch bowl away from the party. The only question is how will commercial real estate valuations and pricing react.








Big Storefronts Now Housing Big Data




National Commercial Real Estate News From CoStar Group





Big Storefronts Now Housing Big Data



One of America's most recognizable bricks-and-mortar retailers will swap out clothes racks for server racks if a new strategy by Sears Holdings Corp. (Nasdaq: SHLD) pans out.

Sears has launched a new business unit, Ubiquity Critical Environments, with the mission of converting some of the more than 330 closed Sears and Kmart stores into facilities for data warehousing, network colocation centers, and business continuity operations.

Ubiquity...






Archetype Rebrands Under Starwood Umbrella




National





Archetype Rebrands Under Starwood Umbrella



GREENWICH, CT-The name change provides “a signal to all customers, partners and employees that Starwood Mortgage Capital has the backing of a premier real estate finance company,” says Starwood Property Trust’s Sternlicht.











BXP Prices $700M Note Sale



BOSTON-The office REIT may put the $692 million of expected net proceeds to use in reducing debt or making acquisitions, according to an SEC filing.








Boardroom Maneuverings May Dictate Next Moves at Two Luxury Hotel REITs




National Commercial Real Estate News From CoStar Group





Boardroom Maneuverings May Dictate Next Moves at Two Luxury Hotel REITs



As the hotel investment market has started heating up, so too has the jockeying for control of two luxury hotel REITs: Morgans Hotel Group Co. and Strategic Hotels & Resorts.

Morgans Hotel Group Co. had been preparing to explore a sale of the company should its board of director nominees get re-elected at last week’s annual meeting. However, this week the firm's senior management is re-evaluating options after stockholders voted out its entire...






Construction Lending, Foreign Buyers Trend




National





Construction Lending, Foreign Buyers Trend



SAN DIEGO-Lenders are opening the spigots for construction once again, and international buyers consider the US a safe haven for real estate investments compared to their own countries, say speakers at RealShare Investment & Finance.











E-Com Demand Will Filter Down



CHICAGO—In this UPDATE to yesterday’s story, Avison Young’s Erik Foster says e-commerce investors will look beyond the top-tier assets.








Tuesday, June 18, 2013

Values, Interest Rates Concern Experts




National





Values, Interest Rates Concern Experts



SAN DIEGO-Rent growth cannot match potential increased interest rates without job growth, say panelists at RealShare Investment & Finance.








In The Pipeline: CoStar Development & Construction News for June 16 - 22




National Commercial Real Estate News From CoStar Group





In The Pipeline: CoStar Development & Construction News for June 16 - 22



Port of Seattle Taps Panattoni for 87-Acre Business Park
The Port of Seattle has chosen Panattoni Development Co., Inc. to develop the Des Moines Creek Business Park project on 87 acres south of Seattle-Tacoma International Airport.

The Newport Beach, CA-based privately-held real estate development firm was picked from a field of four companies to develop a combination of airport-related commercial and light industrial uses at the project valued...









Building Cost Index Rises As Construction Pace Gradually Quickens



Non-residential construction costs rose in the second quarter as larger urban markets appear to be expanding more rapidly than other regions, according to Turner Construction Co.'s most recent Building Cost Index.

Turner's Second Quarter 2013 Building Cost Index measuring costs in the U.S. non-residential building sector was 859, an increase of 1.18% from the previous quarter and 4% from the same quarter a year ago.

In addition to rising activity...






E-Com Fuels Demand for Distribution Space




National





E-Com Fuels Demand for Distribution Space



CHICAGO—Investors will have two main options, Avison Young reports. Either buy in industrial markets like LA, Indianapolis or Dallas, or dense, urban infill areas like NYC or Chicago.











GSE's $1.02B REMIC Encounters Rate Fears



WASHINGTON, DC-Investors are hesitating over whether to make capital market investments because of the uncertainty over rates, Josh Seiff, Fannie Mae Director of Multifamily Capital Markets, tells GlobeSt.com's Erika Morphy.











Iridium's Kane Charts NNN Success



NEW YORK CITY-Specializing in single-tenant triple net lease, Iridium plans to acquire more portfolios of stores occupied by nationally branded retailers, cofounder Marilyn Kane tells GlobeSt.com’s Paul Bubny.











Medi-Retail Trend Gains Ground



TUSTIN, CA-Orange County shopping centers are supporting this growing trend of medical offices in retail settings, Matt Hammond of Coreland Cos. tells GlobeSt.com.








Monday, June 17, 2013

Weyerhaeuser Makes $2.65B Move, Potential Sale In Works




National





Weyerhaeuser Makes $2.65B Move, Potential Sale In Works



FEDERAL WAY, WA-“Given the improving fundamentals of the housing market, now is a prudent time to explore strategic alternatives for this business,” says the homebuilder CEO, Dan Fulton.








CWH Urges 'No Action' on Board Ouster




National





CWH Urges 'No Action' on Board Ouster



NEWTON, MA-The locally based office REIT says the proxy advisory firm’s report recommending removal of its board is premature and ”will likely cause confusion among CommonWealth shareholders."











Marcus & Millichap Says Hotels Rising



CHICAGO-An improving economy has brightened the outlook for the hospitality industry just in time for the summer season, with the auto industry giving a special boost to the Midwest.








REITs Exploring Options for Their Newly Raised Wealth




National Commercial Real Estate News From CoStar Group





REITs Exploring Options for Their Newly Raised Wealth



Following a year in which REITs raised a record amount of money in the capital markets, and a first quarter that saw fund raising exceed the earlier full-year period, some of those REITs are now starting to review alternatives for what to do with their holdings, and their cash.

Last week, two more REITs, Inland Diversified Real Estate Trust Inc. and Strategic Storage Trust Inc., announced they had retained investment bankers to review their strategic...









Appreciation Shifts from Cap Rate Compression to Real Growth



CoStar's Property and Portfolio Research (PPR) division is forecasting that the wave of cap rate compression that has in some cases accounted for an astronomical 90% of the gain in core real estate value since the last recession is likely to slow; after all, trees do not grow to the sky.

Specifically, PPR's analysis of the top 54 U.S. markets finds that cap rates should remain within 20 basis points of today’s average through 2017, which will...









Capital Markets Review: NorthStar, Goldman Sachs JV Buying $925 Million of NJ's Investment Funds



NorthStar Real Estate Income Trust Inc. and funds managed by Goldman Sachs Asset Management agreed to acquire limited partnership interests in up to 25 real estate private equity funds from a trust fund managed by the state of New Jersey Division of Investment, which oversees the state's pension funds.

The assets being acquired comprise a portfolio with an aggregate reported net asset value of approximately $925 million.

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Facility Closures & Downsizings: QLogic To Consolidate



Networking equipment maker QLogic Corp. approved a restructuring plan designed to streamline business operations. The restructuring plan includes a workforce reduction and the consolidation of several engineering activities. The company anticipates that the restructuring actions will be substantially completed within the next 12 months.

The restructuring plan is expected to result in $8 million to $10 million in expected charges, including costs...









Office Depot, Office Max Continue Post-Merger Downsizing



Office Depot has reduced the total square footage of its North American Retail Division to 25.33 million square feet at the end of 2012, down from 30.67 million square feet at the end of 2008 -- a 17% reduction. In merger-related documents filed with the U.S. Securities 7 Exchange Commission, the retailer said it is not done shrinking yet and may have two to three more years of downsizing ahead of it.

In its financial projections related to its...






Friday, June 14, 2013

RE Equities Corp Acquires 375 Broadway for $81M




National Commercial Real Estate News From CoStar Group





RE Equities Corp Acquires 375 Broadway for $81M



Real Estate Equities Corporation has acquired the mixed-use building at 375-377 W. Broadway in New York City from Ellwell Associates LLC for $81 million, or about $1,500 per square foot.

The five-story, 55,710-square-foot office building was constructed in 1863 on a quarter-acre in Manhattan's Soho district, between Broome and Spring Streets. It offers 11,000 square feet of ground-floor retail space with 56 feet of frontage, currently leased to...






BPO Launches Tender Offer for MPG Stock




National





BPO Launches Tender Offer for MPG Stock



NEW YORK CITY-The cash-tender offer for all outstanding shares of MPG’s preferred stock is part of the merger agreement the two companies announced in April.








CoStar's People of Note (June 9 - 15)




National Commercial Real Estate News From CoStar Group





CoStar's People of Note (June 9 - 15)



This week's People of Note includes the following markets: New York City, Northern New Jersey, St. Louis, Portland, and Tampa.

GLOBAL
Cushman & Wakefield Names Sant’Albano as Interim CEO, Replacing Rufrano
By Paul Norman

Cushman & Wakefield has named Carlo Barel di Sant’Albano as the interim CEO replacing Glenn Rufrano. Sant’Albano will continu






Foreclosure Starts Increase 108% in Hawaii




National





Foreclosure Starts Increase 108% in Hawaii



IRVINE, CA-Although down 33% from a year ago, foreclosure starts in 14 states including Hawaii and Nevada were up over last year, RealtyTrac reports.








Office Keeps Pace With Economy




National





Office Keeps Pace With Economy



CALABASAS, CA-Much like the economy itself, the slow-to-respond office sector is finally showing signs of life.








Thursday, June 13, 2013

Risks are Manageable in GSA-Heavy Markets




National





Risks are Manageable in GSA-Heavy Markets



SAN DIEGO-In this EXCLUSIVE preview to RealShare Investment and Finance here next week, Sam Chandan of Chandan Economics tells GlobeSt.com that negative absorption in these markets due to federal cuts is manageable if supply remains in check.











Low Rates Driving Property Values



NEWPORT BEACH, CA-As commercial property values increase 3% in May, Green Street Advisors analyst Peter Rothemund says this upward trend in values will continue.











Spigot Is Turned, Competition is Up



SAN FRANCISCO-Momentum on the acquisition side has picked up steam and now everything that is for sale has many quality bidders, many of them are REITS, say ULI Finance and Investment conference panelists.








$16B in Hotel REIT Debt Coming Due




National





$16B in Hotel REIT Debt Coming Due



CHARLOTTESVILLE, VA-SNL Real Estate reports that more than half of all outstanding debt will mature between 2014 and 2016.








Wednesday, June 12, 2013

Rising Interest Rates Pose First Big Challenge to Emerging Single-Family Rental REITs




National Commercial Real Estate News From CoStar Group





Rising Interest Rates Pose First Big Challenge to Emerging Single-Family Rental REITs



The juxtaposition served up in the single-family rental market last week couldn't highlight this fledgling business any better.

With the low cost of borrowing and a housing market in the doldrums, yield-starved institutional investors have poured cash into acquiring buckets of REO single-family assets - more than 65,000 such properties in the past two years - in hopes of profiting from the disconnect in pricing to former value. But because of the...









Restaurants Find Less Is More (Profitable) When it Comes to Square Footage



When it comes to burgers, bigger is better. But when it comes to burger joints, some believe it's better not to be too big.

Take MOOYAH Burgers, Fries and Shakes, a Plano, TX-based chain with a signature build-it-yourself, double-beef patty sandwich that is adding locations across the country. Bill Spae, CEO/president of MOOYAH says 'big' box is not necessarily the 'best' box to operate within.

MOOYAH has created two restaurant models: one for...






Schorsch's RCAP Snares First Allied




National





Schorsch's RCAP Snares First Allied



NEW YORK CITY-The deal squares with RCAP’s aspiration to bolster its presence in the independent financial advisor segment of the financial services industry.











Centerline, Hunt Will Merge



NEW YORK CITY-Hunt will pay $39.89 per share for the outstanding common stock of locally based Centerline that it doesn’t already own, doubling Hunt's multifamily portfolio.








Be Ready to Close Quickly on Fixer-Uppers




National





Be Ready to Close Quickly on Fixer-Uppers



IRVINE, CA-In this UPDATE to an earlier story, bargain-hunter home buyers should be prepared to face stiff competition and act quickly, say experts.








The Meaning of the IRS' REIT Working Group




National





The Meaning of the IRS' REIT Working Group



WASHINGTON, DC-Moss Adams' Kevin Seabolt talks about the significance of the IRS' apparent decision to consider the legal definition of real estate for a REIT conversion.











CRE Jobs Outpace National Average



ITHACA, NY-Could this be the first recovery where CRE actually becomes a leading, and not a lagging, indicator? Cornell University and SelectLeaders spell it all out in this EXCLUSIVE interview.











Investors Seek New Ways to Place Capital



SAN FRANCISCO-Until recently, a disproportionate amount of investment activity was targeted toward top-tier assets in four or five principal markets, says Don Wise, CEO of Metzler Real Estate in a Q&A with GlobeSt.com.











Don't Look West for Fixer-Upper Bargains



IRVINE, CA-This region has zero cities on RealtyTrac’s list of the top 15 best markets in which to buy fixer-upper bargains; Midwestern cities take the lead.








Tuesday, June 11, 2013

Carey Watermark Pays $113M for Chelsea Hotel




National Commercial Real Estate News From CoStar Group





Carey Watermark Pays $113M for Chelsea Hotel



Carey Watermark Investors, Inc. (CWI) has acquired the 226-room Holiday Inn Manhattan 6th Avenue located at 125 W. 26th St. in New York City from Magna Hospitality Group and Greenfield Partners LLC for $113 million, or $500,000 per key.

The 24-story, 64,764-square-foot hotel was built in 2008 on more than one-tenth of an acre in Manhattan's Chelsea submarket, between 6th and 7th Avenues, in close proximity to Penn Station, Madison Square Gardens...






50+ Group Are Most Active Homebuyers




National





50+ Group Are Most Active Homebuyers



IRVINE, CA-Home design needs to change to adapt to the lifestyle needs of aging Baby-Boomers, says Manny Gonzalez of KTGY Group Inc.








Freddie Mac Rocks. Is Congress Watching?




National





Freddie Mac Rocks. Is Congress Watching?



McLEAN, VA-So far it has received a thumbs up from S&P and Fitch Ratings. Moody's, it seems, is next.











Rufrano Speaks Out



NEW YORK CITY-Stepping down from Cushman & Wakefield’s CEO post, the executive reflects on his tenure at the firm.








Monday, June 10, 2013

ARCP Closes $900M Stock Placement




National





ARCP Closes $900M Stock Placement



NEW YORK CITY-Bumped up from their original total of $800 million, the two placements will be used to fund the equity portion of ARCP's CapLease and GE Capital deals.








Cushman & Wakefield's Rufrano Steps Down




National





Cushman & Wakefield's Rufrano Steps Down



NEW YORK CITY-Newly appointed interim CEO Carlo Barel di Sant’Albano tells GlobeSt.com’s Rayna Katz that it will be “business as usual” under his leadership.








Situs Expands Bank Group with Four New Hires




National





Situs Expands Bank Group with Four New Hires



NEW YORK CITY-Edward Robertson and Roger Johnson have come aboard as managing directors at Situs, which has also hired two new VPs.








Sunday, June 9, 2013

Will IRS Put the Kibosh on REIT Conversions?




National Commercial Real Estate News From CoStar Group





Will IRS Put the Kibosh on REIT Conversions?



The Internal Revenue Service has raised the yellow caution flag delaying the efforts of three firms racing to convert to real estate investment trusts.

Iron Mountain Inc., Equinix Inc. and Lamar Advertising Co. were each notified this past week by the IRS that the agency has formed a new internal "working group" to study the current legal standards it uses to define "real estate" for purposes of firms qualifying as a REIT under the tax code, and...









Bank CRE Distress Levels Improving; Profits From REO Sales in Sight



Distress levels on commercial real estate loans continued to improve for the nation's banks in the first quarter. Levels of past due and foreclosed CRE fell more than $6 billion to a combined $78.1 billion at banks. However, pockets of weakness (or opportunities, depending on your investment perspective,) continued across the country.

The aggregate amount of foreclosed properties dropped $949 million in the first quarter. Unlike in past quarters...









Morgans Hotel Group Puts Itself Up for Sale



Morgans Hotel Group Co. is exploring a full range of strategic alternatives and has received expressions of interest from five potential buyers.

The New York-based company said that, because of substantial uncertainty around a proposed deleveraging transaction, it decided to consider other strategic alternatives, including a possible sale.

Morgans Hotel Group) is widely credited as the creator of the "boutique" hotel and operates Delano in South...






Friday, June 7, 2013

GSA Announces 661,000-SF Lease in Alexandria




National Commercial Real Estate News From CoStar Group





GSA Announces 661,000-SF Lease in Alexandria



The U.S. General Services Administration has announced a new lease agreement for the National Science Foundation's national headquarters, signing a 15-year lease at the proposed Hoffman Town Center complex in Alexandria, VA.

Under the new lease agreement, the NSF will occupy 660,848 square feet at rents that fall more than 30 percent below market value, in a move that will save taxpayers $65 million over the term of the lease. An additional $35...






CoStar's People of Note (June 2 - 8)




National Commercial Real Estate News From CoStar Group





CoStar's People of Note (June 2 - 8)



This week's People of Note includes the following markets: South Florida, South Bay, New York City, Atlanta, Philadelphia, Texas, and the Southwestern U.S.

SOUTH FLORIDA
Balish Appointed to President, CEO at ARS
By Justin Sumner

Adler Realty Services (ARS), a division of Adler Group, has appointed Christopher Balish as president and chief executive officer. In his new role, Balish will be responsible for overseeing a






Stage Equity Partners Seizes on "Special Opportunity"




National





Stage Equity Partners Seizes on "Special Opportunity"



ELK GROVE VILLAGE, IL-The Skokie, IL-based firm relied on expertise, contacts and luck to acquire the 52,000-square-foot Woodland Square Medical Plaza.











Secondary Markets, Millennials Driving MF



SAN DIEGO-Looking beyond the core and targeting 20-somethings are key for multifamily development, say capital-markets forum panelists at PCBC here.











Expanding Beyond Traditional Markets



SAN FRANCISCO-Where the risk premium is justified, panelists at ULI’s Real Estate Finance and Investment conference are looking at a broader range of markets and different sized placements.











Small May Job Gains: The New Normal



WASHINGTON, DC-The US Bureau of Labor Statistics has released its latest figures on joblessness, and the slow, steady rise in employed US workers continues.








Goolsbee Issues Cautionary, Hopeful Notes About Economy




National





Goolsbee Issues Cautionary, Hopeful Notes About Economy



CHICAGO—The former Obama economic advisor tells participants at REITWeek not to pin too much hope on a recovery in the housing market.











Prologis Ramping Up Development



CHICAGO—At one of yesterday’s REITWeek sessions, Prologis outlined where they will go now that they have finished realigning their portfolio.








Thursday, June 6, 2013

Eager Investors Pounce on Michigan MOB




National





Eager Investors Pounce on Michigan MOB



WYOMING, MI-The quick and recent sale of the 53,000-square-foot Spectrum Health West Pavilion to American Realty Healthcare speaks volumes about the types of MOB product investors are seeking these days.








Florida: Creativity Drives Our Economy




National





Florida: Creativity Drives Our Economy



SAN DIEGO-Human creativity is what can distinguish the US from other economies as we reinvent ourselves in the post-recession economy, advisor and professor Richard Florida tells attendees at PCBC here.








Transforming the Self-Storage Sector




National





Transforming the Self-Storage Sector



CHICAGO—At yesterday’s REITWeek 2013 session, officials from Public Storage outline how their business has undergone a transformation.








Wednesday, June 5, 2013

Does Mid-America/Colonial Deal Signal Onset of Renewed Apartment M&A?




National Commercial Real Estate News From CoStar Group





Does Mid-America/Colonial Deal Signal Onset of Renewed Apartment M&A?



Announced on the eve of this week's NAREIT conference in Chicago, the merger between Colonial Properties Trust (NYSE: CLP) and Mid-America Apartment Communities Inc. (NYSE: MAA) will almost certainly be the subject of hallway and cocktail chatter among the REIT set.

And why not? The combination of Birmingham, AL-based Colonial and Memphis, TN-based Mid-America is huge news for the multifamily sector on several levels. The merger would create the...









Deal-Rich Net Lease Market Likely to Get Richer



After announcing three huge transactions that promise to reshape the thriving net-lease real estate investment market, dealmaker Nicholas Schorsch signaled that he isn't done yet.

American Realty Capital's ARC Trust IV this week agreed to buy a $1.45 billion portfolio of nearly 1,000 retail properties from Fairfield, CT-based GE Capital. Under the agreement, ARCT IV will buy 986 net lease sites from Trustreet Properties Inc., which GE acquired...






Google Alert - George Smith Partners

News1 new result for George Smith Partners
 
Art of the Deal
Multi-Housing News
However, over the past six months, George Smith Partners has placed over $100,000,000 of equity for uses such as apartment development, land to be re-entitled for apartment development, and the acquisition and repositioning of existing apartment product.
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Marriott Europe Comes Ashore




National





Marriott Europe Comes Ashore



NEW YORK CITY-The hotelier is seeking to build loyal customers among young travelers by bringing a European, design-focused brand to the Americas.








Not Done Yet: Investors Continue Bidding Up NYC Office Bldgs Past 2007 Highs




National Commercial Real Estate News From CoStar Group





Not Done Yet: Investors Continue Bidding Up NYC Office Bldgs Past 2007 Highs



Lest anyone thought institutional investors may have been done bidding up prices on trophy office buildings in top tier markets, this week should stand counter to that notion. Three separate investment deals with more than $1 billion in building valuations each were announced this week.

That brings the total $1 billion-plus office sales this year in Manhattan to five, putting it on pace match or eclipse the nine such deals completed in 2007 just...






Aussie Fund, Forest City JV on $2B Retail Package




National





Aussie Fund, Forest City JV on $2B Retail Package



CLEVELAND—The real estate arm of Queensland Investment Corp. has paid $436 million for a 49% stake in eight regional malls owned by Forest City Enterprises.











Always Prepare and Don't Forget the Research



HOUSTON-Transwestern’s managing director Jan Sparks offers her sage advice to thriving in the commercial real estate industry. Hint: it might take some work.








Real Estate, No Longer a Dirty Word




National





Real Estate, No Longer a Dirty Word



SAN FRANCISCO-The public sector is very much standing in the way, but the private sector is recovering nicely, says one panelist at the ULI Real Estate Finance and Investment conference.








In The Pipeline: CoStar Development & Construction News for June 2 - 9




National Commercial Real Estate News From CoStar Group





In The Pipeline: CoStar Development & Construction News for June 2 - 9



Nonresidential Construction Spending Boosted By Private Projects
The recovery in private nonresidential construction continued on a slow and steady track this spring according to new data from the U.S. Census Bureau, with construction spending rising in April from the previous month's disappointing number.

Total nonresidential spending rose by a modest 0.7% in April to a seasonally adjusted annual rate of $552.45 billion, but remains down 2.1...






One Project's Economic Ecosystem




National





One Project's Economic Ecosystem



WASHINGTON, DC-The multifamily industry has plenty of evidence to show how it supports the larger economy.











Hotels See 'Extended Run' of Stability



NEW YORK CITY-It’ll take a resurgence in group business travel to help move the needle, lodging CEOs said at the NYU conference Tuesday.











Young Pro: 5 Things You Should NEVER Do



BOSTON-C&W’s Steve Woelfel learned most of these rules the hard way. These tips might help you see the sand traps before you’re in them.








Tuesday, June 4, 2013

Private Projects Provide Boost For Nonresidential Construction Spending




National Commercial Real Estate News From CoStar Group





Private Projects Provide Boost For Nonresidential Construction Spending



The recovery in private nonresidential construction continued on a slow and steady track this spring according to new data from the U.S. Census Bureau, with construction spending rising in April from the previous month's disappointing number.

Total nonresidential spending rose by a modest 0.7% in April to a seasonally adjusted annual rate of $552.45 billion, but remains down 2.1% from a year ago. Privately financed projects drove most of the gains...






Kayne Anderson Closes $750M Fund




National





Kayne Anderson Closes $750M Fund



ARMONK, NY-The fund was significantly oversubscribed, the private equity real estate arm of Kayne Anderson Capital Advisors said Tuesday.











Morgans Hotel May Put Itself Up for Sale



NEW YORK CITY-The announcement comes a week after Morgans Hotel Group's board voted to eliminate its poison-pill plan.








Tisch: US Needs Competitive Edge




National





Tisch: US Needs Competitive Edge



NEW YORK CITY-Jonathan Tisch is bullish on the economy. But he’s realistic in his view of where we are lacking. With some $95 billion in lost travel revenues coming from a poor Customs process alone, he needs to be. The second of a two-part article.








Google Alert - George Smith Partners

News1 new result for George Smith Partners
 
JV Secures $11.8M Non-Recourse Construction Loan
National Real Estate Investor
LOS ANGELES—George Smith Partners has arranged an $11.8 million non-recourse construction loan for the development of a townhome-style condominium project in Los Angeles. The loan was secured for a joint venture made up of TAAG Investment ...
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National Real Estate Investor


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