Las Vegas 644 KSF Site Changes Hands
By · CommentsA Utah-based LLC purchased a redevelopment site in central Las Vegas. Marcus & Millichap’s First Vice President of Investments in the firm’s Vegas office, Ray Germain, represented the seller, a California-based LLC. The transaction price was record-high, at $18.5 million, or $1.25 million per acre. Another record-breaking sale was closed by the investment and financing firm earlier this year—with $17 million paid for two self-storage properties in the Greater Milwaukee area…
Grocery-Focused REIT Completes $1B Sponsor Buy
By · CommentsIn a roughly $1 billion deal, Phillips Edison Grocery Center REIT I Inc. has acquired certain real estate assets and the third-party asset management business of its former sponsor and external advisor, Phillips Edison Limited Partnership.
The result of the transaction is an internally managed, publicly registered, non-traded REIT that focuses exclusively on grocery-anchored shopping centers. The new entity has a total enterprise value of about $4 billion and owns a diversified portfolio of 235 shopping centers in 32 states and totaling about 26.2 million square feet. In addition, its third-party asset management business manages more than $2 billion worth of grocery-anchored shopping centers…
Cryan Is Losing Support of Top Deutsche Bank Owners
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Investors want to see revenue growth under new strategy
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‘Pressure will mount if there isn’t an improvement’ by 2018
Chief Executive Officer John Cryan is losing the support of some investors just seven months into Deutsche Bank AG’s latest turnaround plan…
Cryan Is Losing Support of Top Deutsche Bank Owners
Xenia Buys Arlington Hotel for $105M
By · CommentsXenia Hotels & Resorts acquired The Ritz-Carlton Pentagon City, a luxury hotel in Arlington, Va. The company funded the acquisition with cash available on its balance sheet and its senior unsecured credit facility. The purchase price was $105 million, or approximately $287,670 per key.
Xenia estimates the acquisition price to be an 11.3x multiple of 2017’s forecast of hotel EBITDA and expects to generate around $2 million EBITDA for the remainder of this year. Recently, the hospitality company sold a portfolio of five luxury hotels, across four different cities, obtaining $163 million for the properties…
Balfour Beatty to Helm $260M Miami Project
By · CommentsBalfour Beatty just landed a $260 million contract for a premier development in Miami. The international infrastructure group has been tapped to build River Landing Shops and Residences, a 2 million-square-foot property that will sprout up along the Miami River in the city’s Health District. H&R REIT, Urbanx Co. and Matthews Southwest are the developers behind the mixed-use project.
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The lira and the nation’s stocks fell the most in the world
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Most emerging stocks and currencies are relatively unmoved
For a moment, it looked like the kind of event that could trigger a wider selloff across developing markets…
What Contagion? Only Turkish Assets Are Suffering Nation’s Woes
Digital Realty Extends Silicon Valley Footprint
By · CommentsDigital Realty will add a new facility to their already strong presence in Silicon Valley. Almost fully leased, the company’s 17 facilities in Santa Clara, Calif., deliver a total of 99 megawatts of IT load, are located on major fiber routes, and total over two million square feet. Last month, Digital Realty completed the acquisition of DuPont Fabros, for $7.8 billion.
Uncertainty Over Trump’s Promises Weighs on Banks
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Third-quarter loan growth probably slowed fourth straight time
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Corporations are delaying expansion while awaiting legislation
President Donald Trump’s pledges to overhaul taxes, trade, infrastructure and health care may thrill some corporate leaders, but it’s causing many to delay expansions. That’s bad for banks…
Uncertainty Over Trump’s Promises Weighs on Banks
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Singaporean VC firm is sussing out “deep tech” investments
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Finian Tan is looking to do more early-stage deals in China
The Singaporean venture capital firm led by Finian Tan, who made his name investing early in Chinese search giant Baidu Inc., has completed its largest fundraising yet to bankroll global deals…
Cash Is Pouring Into Singapore’s Biggest Private Venture Fund
NKF to Lease Iconic DC Office Building
By · CommentsA joint venture between Boston Properties, Blackstone and Equity Office appointed Newmark Knight Frank as the leasing agent for Metropolitan Square in Washington, D.C.
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Goldman Sachs Asset Management positioned for Aussie declines
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Leveraged funds lift net-long positions to 4 1/2-year high
Goldman Sachs Asset Management is clashing with speculators in a wager on a weaker Australian dollar, just as those hedge funds top up bets on the currency appreciating…
Hedge Funds Battle With Goldman Sachs in Going Long on Aussie
Global Funds Eye Australia’s $1.8 Trillion Pension Pool
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Alternative managers linked to 41% of Aussie pension new deals
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Debt house THL hired director, sees pension market opportunity
More global fund managers are setting up shop in Australia, drawn to the nation’s A$2.3 trillion ($1.8 trillion) pension savings pool and new local investment opportunities…
Global Funds Eye Australia’s $1.8 Trillion Pension Pool
Plaza Del Norte Buys San Diego-Area Office Asset
By · CommentsPlaza Del Norte acquired The Courtyard I in Sorrento Mesa, Calif., from Courtyard Mira Mesa. The 50,405-square-foot office building changed hands for $9.2 million. At the time of sale, the property was 68 percent occupied.
Located at 6480 Weathers Place, on 2.3 acres, the asset offers convenient access to interstates 5 and 805. Tenants at The Courtyard I include Wells Fargo Home Mortgage, ACI Specialty Benefits and Cato Research…
Medical Office Portfolio Commands $230M
By · CommentsMedProperties Holdings has acquired the Harrison Street Portfolio, a diverse 10-state, 17-property, medical office building portfolio totaling 620,750 square feet, for approximately $230 million.
“We are attracted to the healthcare real estate space and dedicated to this space because it is a very profitable niche, driven by the health service sector,” Darryl Freling, MedProperties’ managing principal, told Commercial Property Executive. “We are active buyers and sellers in the space, and when this attractive portfolio became available, we competed for it. It has a good diversity of product type, is located across 10 states and it has good hospital affiliations.”…
When Hurricane Harvey ripped through Hitchcock, Texas, in August, it wasn’t just pummeled by nature. The town of 7,300, just across the bay from Galveston, was also the victim of a bad map: The local flood maps managed by the Federal Emergency Management Agency hadn’t been updated since 1983. That made it harder for residents to know if their homes were at risk of flooding—which might explain why fewer than one in four homes had flood insurance in a town that saw severe flooding during the storm.
Market Strengthens in Inland Empire
By · CommentsRiverside and San Bernardino counties continued to grow in the first half of 2017, adding jobs at some of the strongest rates in California. Although the sectors with the bulk of growth encompass mostly lower-paying jobs, demand for housing and a tepid rate of multifamily development pushed rent growth to 4.7 percent year-over-year as of July. Even with nearly 2,000 units projected to come online in 2017, average occupancy will most likely remain above the 96.0 percent mark.
Waterton Enters DC Hotel Market
By · CommentsFirst Look at the $500M Willis Tower Redevelopment
By · CommentsIn what’s being billed as a “last of its kind” opportunity for the ultra-wealthy of Southern California, a 4.6-acre (1.9-hectare) parcel ready for development is coming on the market in the exclusive community of Bel Air. Asking price: $60 million. Just build a mansion on the land, and join such local nobility as Elon Musk and Jay Z and Beyonce…
Drop $60 Million, Build a Mansion, Become a Prince of Bel Air
Skanska Pours Seattle Tower Foundation
By · CommentsSkanska is moving forward with the construction of its newest skyscraper, 2+U, a 38-story office tower in Seattle. The company announced it has completed the foundation of the upcoming downtown property.
The project, targeting LEED Gold, will offer:
- between 18,000 and 30,000-square-foot floorplates
- multiple tenant event spaces
- a bike club featuring secure bike storage
- maintenance and electric charging facilities
- a fitness and wellness studio
Sycamore Seeks $4 Billion for Retail Buyout Fund
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Retail-focused firm bought Staples for $6.9 billion last month
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Fund would be 60% bigger than predecessor if target is reached
Sycamore Partners is betting on the ailing retail sector at a time when other investors are shying away…
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Losses at Turnberry more than doubled in 2016 after revamp
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Trump has propped up his two Scottish courses with cash
President Donald Trump faced mounting losses at his Scottish golf resorts last year, forcing him to pour more cash into the properties to cover the shortfall…
Trump Boosts Loans to Scottish Golf Courses Amid Mounting Losses
Miami’s 10 Tallest Office Buildings
By · CommentsAccor SA, Europe’s biggest hotel operator, offered to buy Australia’s Mantra Group in a deal valuing the hotel and resort operator at A$1.2 billion ($930 million)…
France’s Accor Offers A$1.2 Billion for Hotel Group Mantra
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Principles delivered to Congress would call for more agents
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Move follows Trump-requested, multi-agency review of laws
President Donald Trump’s administration has laid out a string of demands on what must be done in return for allowing so-called “Dreamers” — young people brought illegally to the U.S. as children — to stay in the country…
White House Lays Out Immigration Demands, Including Wall Funding
A federal agency on Thursday imposed tough new restrictions on so-called payday lending, dealing a potentially crushing blow to an industry that churns out billions of dollars a year in high-interest loans to working-class and poor Americans.
The rules announced by the agency, the Consumer Financial Protection Bureau, are likely to sharply curtail the use of payday loans, which critics say prey on the vulnerable through their huge fees…
Payday Lending Faces Tough New Restrictions by Consumer Agency
MidCoast Properties Closes on GA Self-Storage Deal
By · CommentsMidCoast Properties, a southeast brokerage firm specializing in self-storage transactions, negotiated a new deal in Georgia. Michael Morrison, an associate broker with the firm, represented the seller of Lawhorne Storage, a storage facility located in Sylvester. The property was listed for $1.6 million on MidCoast’s website and went to an out of state buyer.
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Banks find it hard to ignore as clients clamor to buy
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But the pros of bitcoin are accompanied by a host of cons
At first, bitcoin was a way to make payments without banks. Now, with more than $100 billion stashed in digital currencies, banks are debating whether and how to get in on the action…
Bitcoin’s Rise Happened in Shadows of Finance. Now Banks Want In
Historic Office Building Trades in Downtown Atlanta
By · CommentsKramer Real Estate Investments acquired the W.D. Grant Building, a 135,000-square-foot office property in downtown Atlanta, listed on the National Register of Historic Places. The new ownership selected JLL to handle the leasing, management and restoration of the property.
The Denver-based company purchased the asset in a joint venture partnership with H2 Capital in a $7.9 million deal, public records show. An entity affiliated with Ready Capital Structured Finance facilitated the transaction through $10.4 million in acquisition financing set to mature in October 2020…
JLL Secures $96M for Philly Office Buy
By · CommentsSometimes you buy a building, sometimes you buy pieces of a building. Whatever works.
A partnership of Taconic Capital Advisors and Cohen Equities, both of New York, has acquired floors three through six of 801 Market St., a 695,130-square-foot, 13-story historic Class B office tower in Philadelphia’s Market East submarket. The deal was announced by JLL Capital Markets, which had secured a $96 million financing package for the buyers…
A joint venture between Akridge and Corporate Office Properties Trust signed an 81,300-square-foot, 15-year lease at its upcoming 190,000-square-foot premier office building in the central business district of downtown Washington, D.C. The tenant is law firm Morrison & Foerster LLP, which is set to move in January 2021.
ASSET FEATURES
Although construction will break ground in the second quarter of 2018 and completion is expected in the first quarter of 2020, the property is already 45 percent leased. Located at 2100 L. St. NW, the future 10-story building will feature:
Portland Airport Expansion Flies High with Skanska
By · CommentsSkanska has been hired by the Port of Portland to expand and renovate Portland International Airport’s Concourse E, part of an overall $1.3 billion, five-year makeover of the Oregon facility.
The project calls for Skanksa to build a two-story, 820-foot extension of Concourse E, including adding six gates for a total expansion of 150,700 square feet, according to Skanksa. The work also includes airside site work, modifications to baggage handling systems and various renovations within the existing terminal…
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Ethereum upgrade will allow users to be totally anonymous
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‘A game of cat and mouse’ as privacy matters gain attention
A major breakthrough in cryptography may have solved one of the biggest obstacles to using blockchain technology on Wall Street: keeping transaction data private…
‘Mind-Boggling’ Math Could Make Blockchain Work for Wall Street
CBRE to Lease Memphis Office Park
By · CommentsGroup RMC selected CBRE to perform leasing services at Southwind Office Center, a seven-building, Class A office park in Memphis, Tenn. The team of Senior Vice President Ronald Kastner and First Vice President Patrick Reilly will spearhead marketing efforts on behalf of the owner, while Cushman & Wakefield will provide property management services for the office campus.
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CEO thinks $750 million price tag is what these assets deserve
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West High Yield has no revenue; traded at 36 cents Tuesday
West High Yield (W.H.Y.) Resources Ltd., a little-known Canadian miner, surged as much as 1,000 percent after it said it sold a magnesium deposit to a U.S. buyer for $750 million — or 46 times the company’s market value…
This Junior Miner Surged Almost 1,000% in a Day After Asset Sale
Tallest Building in SC Gets New Ownership
By · CommentsCBRE brokered the sale of Capitol Center, a 460,020-square-foot, Class A office building in downtown Columbia, S.C. A joint venture partnership between M&J Wilkow and Intercontinental Real Estate Corp. sold the asset to New York-based Hamilton Equity Partners. The new owners plan to renovate the 25-story property and selected CBRE as the exclusive leasing agent.
These days, even coin collectors have turned sour on bullion. Sales of gold coins in the first nine months of the year shrank to the lowest in a decade, U.S. Mint data show. The metal’s appeal is waning as retail investors seek better returns in equities, lured by the S&P 500 Index’s climb to records, said Peter Thomas, a senior vice president at Zaner Group LLC in Chicago…
Gold-Coin Sales Drop to Decade Low as Retail Buyers Flee: Chart
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Without margin of safety, bears see big selloff on Fed unwind
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Pimco says term premium to stay below norm, contain yields
Don’t expect the U.S. Treasury market to go back to “normal” once the Federal Reserve starts reducing its crisis-era debt investments…
Treasuries Doomsday? Wall Street’s New Guide to Bond Trading
Vista Nabs San Diego Office Tower
By · CommentsVista Investment Group added a new asset to its office portfolio: Plaza 2020, a 10-story tower located in the Mission Valley submarket of San Diego. The property marks the company’s second acquisition in the area, following the purchase of an 80-unit community in La Mesa, Calif. Vista bought Plaza 2020 using a $16.6 million fixed-rate life company loan arranged by HFF.
More than 560 households earning 100,000 pounds ($132,500) or more used the Help to Buy loan program in the second quarter to help finance their home purchases as the government encourages people to acquire property. Home builders soared in London trading on Monday after Prime Minister Theresa May’s office said it would set aside 10 billion pounds to extend the program that lends buyers up to 40 percent of the cost of a new property…
More U.K. Top Earners Turn to Government Loans for Homes: Chart
Well being back in the Bay Area I realize once again how delusional people have become when it comes to chasing unicorn startups and all things real estate. I ran into multiple people and it seems like everyone is talking about real estate. Some of these people were showing me “deals” on apps like Zillow or Redfin on their phones. “This place with some work can then be flipped in a month for a $200,000 profit.” Why work when you can speculate on housing? The housing market is now in cult status and this psychological territory isn’t new. We don’t have to dig deep into historical texts and read about Florida real estate in the 1920s but need only look at the 2000s. San Francisco is out of control. And of course you have insulated mindsets from many that work in tech or the financial sector since they feel that money or an app can solve all of life’s challenges. Today we take a look at a home worthy of the crap shack title in San Francisco…
Miami Medical Office Building Trades for $11M
By · CommentsLocated at 5040 NW 7th St., on a 1.76-acre site, the nine-story building was developed in 1986 and features a structured parking deck. 50Forty on 7th underwent a $2.1 million renovation program after the previous owner acquired the lender-owned and nearly vacant asset from Citizens Bank in 2013. The repositioning strategy boosted the property’s occupancy to approximately 70 percent. Notable tenants include the City of Miami’s Internal Affairs Department, Career Source and Borinquen Medical Centers…
Toronto Housing Prices Fall for a 4th Straight Month
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Detached homes in Canada’s largest city taking it on the chin
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Still, home values up since 12% in September from year earlier
Toronto housing prices fell for a fourth month in September as sales remained sluggish, particularly in the detached-home segment that has borne the brunt of the correction in Canada’s biggest city…
Wells Fargo’s chief executive, Timothy J. Sloan, on Tuesday faced blistering attacks from Republican and Democratic senators, who voiced frustration with his response to a series of scandals that have rocked the bank.
Senator Elizabeth Warren, Democrat of Massachusetts, accused Mr. Sloan of promoting an aggressive sales culture that led bankers to create millions of fake accounts. She called for his ouster.
“At best you are incompetent, at worst you were complicit,” Ms. Warren said. “Either way you should be fired.”
She added that all Wells Fargo directors who served on the board during the years of the fake account scandal should be removed…
Bloomberg’s New HQ Achieves near Perfect BREEAM Score
By · CommentsHong Kong’s Property Market Gets a ‘Reality Check’
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Record Murray Road sale fueled expectations, according to Lee
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Hysan chairman expects property market ‘adjustment’ not crash
The scrapped sale of The Excelsior hotel in Causeway Bay may have been a “reality check” in a heated Hong Kong property market, according to Irene Lee, chairman of Hysan Development Co…
Hong Kong’s Property Market Gets a ‘Reality Check’
Knoxville: No Longer in Nashville’s Shadow?
By · CommentsFollowing the fourth consecutive month of rents growing faster than the national average rate, the city looks poised to take its development even further. A new cycle high for investment sales in 2016 and the expectation that the city will add new units at a rate that has not been met since 2011 are signs that both investors and developers are more actively looking at opportunities in the market.
PNK Plans 3 MSF Atlanta Spec Industrial Project
By · CommentsRussia-based PNK Group has kicked off construction of Southern Gateway at Lambert Farms, a spec industrial park that will ultimately provide 3 million square feet of state-of-the-art space in McDonough, Ga. The Atlanta industrial market is performing well and both national and international developers are taking note.
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The idea that states could stiff investors spooks Wall Street
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Puerto Rico bonds take record plunge after ‘Hannity’ interview
Even before Wall Street awoke, Wednesday looked like a wild day for the nation’s $3.8 trillion municipal-bond market…
Trump Speaks and a $3.8 Trillion Market Hears an Existential Threat
CBRE to Market Orlando Site for Industrial Development
By · CommentsHighlands REIT selected CBRE to market the Orlando Distribution Center, one of the last available land sites zoned for industrial development in Southwest Orlando. The 101-acre property offers 4,000 linear feet of frontage on West Sand Lake Road.
Located in the southeast quadrant of West Sand Lake Road and Perimeter Road, the site can accommodate a wide range of industrial uses, including service center and flex with commercial exposure. The tract can accommodate large industrial facilities of up to 800,000 square feet and provide space for the new wave of statewide logistics centers…
Oxford—Madison JV Pays $1.3B for Berlin Sony Center
By · CommentsOxford Properties, the global real estate arm of the Ontario Municipal Employees Retirement System, is entering the Berlin market with the acquisition of Sony Center, a 1.2 million-square-foot mixed-use complex, for approximately $1.3 billion (€1.1 billion) from the National Pension Service of Korea. Madison International Realty is Oxford’s partner in the deal that includes the 26-story BahnTower.
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California Governor Jerry Brown signs arbitration measure
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Bill was inspired by outrage over bank’s fake accounts scandal
Wells Fargo & Co.’s home state of California passed a law aimed at curtailing the bank’s use of closed-door arbitration to shroud complaints from aggrieved customers affected by its scandals…
Wells Fargo’s Home State Aims to Curb Use of Closed-Door Arbitration
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Average leverage has increased to 24% from 19% since 2009
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Volatility exposure raises question: ‘Why take on more risk?’
Canada’s public pension funds, among the biggest in the world, are piling on risk with leveraged bets in a chase for higher returns, Moody’s Investors Service warns…
Canada’s Pension Funds Are Piling on Leverage, Moody’s Warns
Baceline Acquires 2 Shopping Assets for $12M
By · CommentsDenver-based private equity real estate investment firm Baceline Investments acquired the Columbia Heights, Minn.-based Central Plaza for $7.2 million from Central Plaza Associates, and the North Carolina-based Galleria Village from Cohen Equities for $5.1 million. This marks the company’s first purchase in North Carolina.
Population Growth Sustains Demand in Nashville
By · CommentsRiding a wave of economic and population growth, Nashville’s multifamily market continues to display stable fundamentals. However, due to sustained levels of new apartment deliveries over the past three years, rent growth has moderated during the first half of 2017, reaching 1.5 percent in July.
FORT INDIANTOWN GAP, Pa. — It was 9 p.m., and about 60 financial executives chattered nervously outside a barrack full of bunk beds at this United States Army training post in central Pennsylvania.
They had come from New York, Toronto, Philadelphia and beyond at the behest of Wesley R. Gray, an investment manager and former Marine Corps officer, to trek 28 miles through the mountains. The truly motivated would lug 30-pound packs.
“We are here to march for the fallen,” Mr. Gray shouted, describing the next day’s hike as a “haze ex,” Marine jargon for a hazing exercise. He distributed dogtags of troops who had died in battle, ordering that they be worn on the march…
Mammoth Brooklyn Retail Condo Hits the Market
By · CommentsMadison Marquette has selected HFF to market the sale of a 59,930-square-foot retail condominium located in Brooklyn’s Williamsburg neighborhood. The unit is one of the borough’s largest retail structures, as it encompasses two full city blocks in the Waterfront/Kent Avenue retail corridor.
The property is located at 22 N. 6th St., within The Edge, a two-tower master-planned development comprising 1,450 residential units. The retail condominium boasts an underground parking garage with 491 parking spaces, premium frontage along Kent Avenue and North 6th Street, nearly 1.8 acres of open space and a public esplanade. The condominium is 81 percent occupied by tenants such as CVS Pharmacy and Brooklyn Harvest Market…
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Country’s decade-long housing bull market is losing steam
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Central bank says economic shock could endanger households
Israel’s economy is strong enough to weather a steep drop in housing prices, according to the prime minister’s top economic adviser, a view at odds with central bank warnings…
A Housing Plunge Doesn’t Concern Israel’s Top Economic Adviser
Nestlé Can Head Off a Fight With Dan Loeb
By · CommentsNestlé can pre-empt the activist Dan Loeb’s next move. Directors at the $265 billion Kit Kat maker are light on consumer and digital expertise. Half the 14-member board is from Switzerland, the company’s home market but one that’s worth just 2 percent of sales. Nestlé’s latest plans to revamp are far from radical, and Mr. Loeb, the founder of Third Point, may next seek boardroom changes. Nestlé could head off a fight by beating him to it.