News Briefs
CB Richard Ellis Realty Trust Buys Best Buy Warehouse
Aug 07, 2009
CB Richard Ellis Realty Trust acquired a new 238,370-square-foot state-of-the-art suburban Boston warehouse/distribution building built to suit for Best Buy Stores, which is occupying it on a long-term lease. Located at 140 Depot St. in Bellingham, Mass., the center is expandable and features pre-cast concrete construction, cross-docking, a 36-foot clear height, ESFR sprinklers and excess trailer parking. It will be used primarily as a regional distribution center for home delivery of large items, along with some service/repair and dispatching and scheduling work.
Hypo Real Estate Reports $1B Loss
Aug 07, 2009
Hypo Real Estate Holding AG, the only German lender that has been nationalized, with a current 90 percent holding, reported a 750 million euro, or $1.1 billion, loss in the second quarter. And its chief executive predicted continued losses, with a return to profitability delayed until 2012, according to the Associated Press.
BOMA Chicago Initiates Country's First Office Building Smart Grid Program
Aug 07, 2009
The Building Owners and Managers Association of Chicago has launched an effort to develop the country's first commercial office building smart grid program, delivering a utility-scale, clean, virtual generator through implementation of smart grid technology in more than 260 commercial buildings in downtown Chicago. With the potential to provide as much as 200 megawatts of demand response capability, the program would lower costs and avoid the need to construct expensive new generation plants. It requires upgrading the buildings' electric metering infrastructure, with significant building-level upgrades. To help address the estimated $185.4 million program cost, the city's BOMA chapter filed an application for $92.7 million in matching funds from the U.S. Department of Energy's Smart Grid Investment Grant Program, which was formed under the recently passed American Reinvestment and Recovery Act.
Highwoods Closes on $162M in Secured Loans
Aug 07, 2009
Highwoods Properties Inc. closed on two secured loans totaling $162 million, one a $115 million, six-and-a-half-year loan provided by New York Life Insurance Co. at a fixed rate of 6.875 percent, secured by a pool of 10 assets in Nashville, Raleigh and Tampa, and the other a $47.3 million, seven-year loan from Western-Southern Life Assurance Co. at a fixed rate of 7.5 percent, secured by the office portion of RBC Plaza in Raleigh. Highwoods used a portion of the proceeds to pay off in full the $91 million outstanding under its $450 million unsecured credit facility.
Transwestern Wins Nearly 500,000-SF Property Management Assignment
Aug 04, 2009
Transwestern has been awarded management of One Central Park East, a 485,720-square- foot office project Mesirow Financial Real Estate is constructing at 50 East Van Buren in Downtown Phoenix. Under construction and scheduled to open in the third quarter of 2009, the 26-story Class A property will also include 9,000 square feet of retail space and an executive fitness center. A recipient of the AIA Western Mountain Region Design Citation Award, it includes an advanced insulated window wall glass system featuring exterior horizontal and vertical shade fins to combat the harsh Phoenix sun.
Prices Drop in Second Quarter, MIT Index Finds
Aug 03, 2009
Prices for commercial real estate dropped at a record level in the second quarter despite an increase in sales, according to an index developed by the Massachusetts Institute of Technology Center for Real Estate. In a report released on Monday and first appearing on Reuters, the center quoted its index as finding that property sold by major institutional investors dropped 18.1 percent, to a level that is down 22 percent for the year, 32 percent from a year ago and 39 percent from its mid-2007 peak, despite transaction volume that increased for the first time since last summer. The decline is greater than the 27 percent drop in the late 1980s/early 1990s and even with it when adjusted for inflation, which brings both periods to a 41 percent drop.
Opus Property Services Reported for Sale
Aug 03, 2009
Opus Corp. is seeking to sell its property-management business, according to a report on bizjournals.com, the Web site of American City Business Journals. It quoted a company spokesperson as stating that selling off Opus Property Services would help the company renew its focus on its "core competency," along with its being a good time to sell because property management firms currently have an "appetite ... to grow their (business)." Opus' management portfolio totals about 30 million square feet of office, retail, industrial and corporate space.
NYPPEX Report Finds Significant Reduction in Prices Paid by Secondary Buyers
Jul 31, 2009
Global secondary private market advisory, trading and research firm NYPPEX released a report finding that secondary buyers have been acquiring interests in commercial real estate partnerships at 20 to 40 percent below replacement cost and at 40 to 60 percent below net asset value relative to private equity partnerships, with median secondary bids continuing to decline. Primary concerns, the entity found, include refinancing risk for mortgage loans originated during the 2005 to 2008 period, as well as loan size risk and risks associated with property type.
Cassidy & Pinkard Wins 72,100SF Reston Leasing Contract
Jul 31, 2009
Cassidy & Pinkard Colliers has been selected by The Bernstein Cos.
to provide exclusive marketing and leasing services for 12220 Sunrise
Valley Drive, a 72,100-square-foot office building in Reston Sunrise
Park in Reston, Va.
Cadillac Fairview Buys 49% Interest in NY Macerich Center
Jul 31, 2009
Cadillac Fairview Corp. purchased a 49 percent interest in Macerich's Queens Center in the New York City borough of Queens for $150 million in net cash. The eighth joint venture between the two firms, the venture gives Canadian Cadillac Fairview, wholly owned by the Ontario Teachers' Pension Plan, entree to New York City. Queens Center is the top-performing asset in Macerich's portfolio: The 966,499-square-foot urban retail center, which at year-end 2008 was 97.5 percent occupied, was at that time producing annual mall sales of $876 per square foot. Macerich purchased it in 1995 and redeveloped and expanded it in 2004.
Tenant Signs on for 269,000 SF of Inland Empire Industrial Space
Jul 30, 2009
Newport Beach, Calif.-based Master Development Corp., the managing
member of Ontario Two L.L.C., has inked a tenant to a six-year lease
valued at $3.5 million in Phase II of its Thoroughbred Business Park, a
2 million-square-foot industrial park located in Ontario, Calif.
AMB Sews Up $125M LAX Parcel Sale
Jul 29, 2009
AMB Property Corp. has completed the $125 million sale of a land parcel
at Los Angeles International Airport to Los Angeles World Airports, the
owner of LAX.
Highwoods, USAA Partner to Build FBI Office
Jul 28, 2009
Highwoods Properties Inc. and USAA Real Estate Co. were awarded a build-to-suit lease by the U.S. General Services Administration to develop an approximately $45 million field office for the Federal Bureau of Investigation in Charlotte, N.C. The joint venture is scheduled to begin building the 171,000-square-foot, five-story Class A office building and annex in the first quarter of 2010 and complete it in the second quarter of 2011, with certification sought under the U.S. Green Building Council's Leadership in Energy and Environmental Design program. The project is Highwoods' third for the FBI, which is a repeat client of investor USAA's as well, and both have worked extensively with the GSA overall. Highwoods will retain a 10 percent ownership interest in the joint venture, as well as receiving development fees.
Fitch Finds High Delinquency Roll Rates Continue
Jul 28, 2009
Fifty-four percent of delinquent loans in Fitch Ratings-rated transactions moved from 30 days to 60 days between June and July, the ratings agency found. It was the 10th consecutive month that such movement measured above 50 percent, a situation that the agency views as an "important precursor in helping to anticipate future performance for CMBS delinquencies," it quoted managing director Mary MacNeill as saying. The majority of Fitch Loans of Concern do continue to perform, accounting for 14.8 percent of multiborrower fixed-rate deals and 28.8 percent of floating-rate deals, but the number is rising.
Fitch Places $9B U.S. CMBS on Rating Watch Negative
Jul 27, 2009
Fitch Ratings placed 238 CMBS bonds from 33 transactions on Rating Watch Negative as part of an ongoing review of the CMBS portfolio using Fitch's updated surveillance criteria, it reported on Friday. However, the ratings agency said it expects the status to be resolved over the next 90 days as it evaluates transactions issued between 2006 and 2008.
CAS Launches Green Apartment Measurement Tool
Jul 24, 2009
CAS Financial Advisory Services, the asset management arm of CAS Partners, launched Green Capital Needs Assessment, designed to measure quantitatively the value of incorporating green improvements into multi-family properties. For discussion on another green tool, the Corporate Realty, Design & Management Institute's Model Green Lease, designed for use across commercial properties, log on to CPN Radio later today.
Post Sells Atlanta, Fairfax Properties for $100 Million
Jul 24, 2009
Post Properties Inc. sold Post Ridge in Atlanta to a locally based entity affiliated with Centennial Holding Company L.L.C. for $44.8 million following Monday's sale of Post Forest in Fairfax, Va., to an entity affiliated with Pantzer Properties Inc. for $57.5 million. CB Richard Ellis Inc. brokered the most recent transaction, while the Post Forest deal was brokered by Holliday Fenoglio Fowler L.P. The REIT expects to report net gains of approximately $54 million relating to the sales.
Starwood Earnings Down Nearly 28% in Second Quarter
Jul 24, 2009
Starwood Hotels & Resorts Worldwide reported annual average rate
drops of nearly 20 percent and revenue per available room drops of
nearly 30 percent for the second quarter of 2009, though cost-cutting
and an Italian tax incentive still helped the company boost profits
year-over-year.
CRE Prices Continue to Drop in May, Says Moody’s/REAL Index
Jul 23, 2009
As the economic uncertainty continues, real estate prices continue to
fall. The Moody's/REAL National All Property Type Aggregate Index from
Real Estate Analytics L.L.C. measured 125.04 for May, a decrease of 7.6
percent from the previous month. That represents the second largest
one-month decline after April’s 8.6 percent drop. The index, which has
captured price data through the end of May 2009, is now 28.5 percent
lower than it was a year ago and 34.8 percent below the peak measured
in October 2007.
IDI Leases 171,800 SF of Georgia Industrial Space
Jul 22, 2009
Real estate firm IDI has executed a 171,800-square-foot, five-year
lease in Lithia Springs, Ga., with Sensormatic Electronics Corp., a
provider of security and fire safety products and services for the
commercial and residential sectors.
Boston Office Lands $25M in Financing
Jul 21, 2009
The Boston office of Holliday Fenoglio Fowler L.P has secured $25
million in financing for 101 Merrimac Street, a 10-story,
159,000-square-foot Class A office building in Boston.
Turner to Build $93M Atlanta Office for CDC
Jul 20, 2009
Turner Construction Co. has been selected by the Centers for Disease
Control and Prevention to provide design/build services for a $93
million, 311,000-square-foot office complex.
Crossman to Handle Leasing for 10.4MSF Publix Portfolio
Jul 20, 2009
Third-party leasing and management firm Crossman & Co. has been
named the exclusive leasing representatives for all Publix-owned retail
properties in Florida, Georgia, Alabama, Tennessee and South Carolina.
Santa Clarita M-F Trades for $23M
Jul 17, 2009
A 158-unit multi-family property in Santa Clarita, Calif., has traded
for $23 million in what a firm involved in the deal says is the largest
multi-family transaction in the region in three years.
CalPERS-First Washington JV to Replace Macquarie in Partnership with Regency Centers
Jul 17, 2009
Macquarie CountryWide Trust agreed to sell the majority of its interest in Macquarie CountryWide-Regency II L.L.C., a four-year-old partnership with Regency Centers Corp. that owns 86 retail shopping centers valued at $1.7 billion, to Global Retail Investors L.L.C. , a joint venture between the California Public Employees' Retirement System and an affiliate of First Washington Realty Inc. The phased sale will result in Global Retail Investors owning 60 percent of the partnership, with Regency having the option to increase its ownership from 25 percent to 40 percent. Otherwise, the remaining interest would be sold to Global Retail Investors or elsewhere, depending on two possible options.
Marriott Sees RevPAR Dip in 2Q
Jul 17, 2009
Hotelier Marriott International suffered a 20 percent decline in
revenue per available room and double-digit percentage rate drops for
its upper-tier properties in North America during the second quarter of
2009.
Sears Tower Officially Renamed
Jul 16, 2009
Sears Tower, the tallest building in the Western Hemisphere, became Willis Tower yesterday in a ceremony featuring Joseph Plumeri, chairman & CEO of insurance broker Willis Group Holdings, and Chicago mayor Richard Daley. Willis will occupy more than 140,000 square feet in the 36-year-old building this summer in a consolidation of 500 associates from five area offices. The site will join New York City and London as one of the company's largest offices.
JV Makes $25M Virginia Retail Play
Jul 16, 2009
A joint venture between Spectrum Partners L.L.C., Alex. Brown Realty
Inc. and Potomac Capital Advisors, has acquired Westgate Plaza Shopping
Center in Manassas, Va., for $25 million from Principal Real Estate
Investors.
Grubb & Ellis Healthcare REIT to Buy South Carolina Portfolio
Jul 16, 2009
Grubb & Ellis Healthcare REIT Inc. agreed to purchase a 16-building portfolio from Greenville Hospital System of Greenville, S.C., including approximately 855,000 square feet of medical office and related space, for $161.7 million. The hospital system is among the largest healthcare service providers in the state and will continue to occupy 83 percent of the portfolio, most of which is on or adjacent to its hospital campuses, under a long-term lease agreement arrangement.
Green Mixed-Use Project in Hawaii Moves Forward
Jul 15, 2009
Architecture firm Stoutenborough Inc. has signed been selected by theKrausz Cos. of San Francisco to handle the design of a320,000-square-foot sustainable, mixed-use community on the island ofMaui, Hawaii.
Ginnie Mae Issues $43B in MBS in June
Jul 14, 2009
The Government National Mortgage Association (Ginnie Mae) issued more
than $43 billion in mortgage-backed securities in June, marking the
first time the agency has broken the $40 billion barrier in a single
month.
General Growth Names Rufrano to Board
Jul 10, 2009
General Growth Properties Inc. named Glenn Rufrano to its board of directors. Rufrano is CEO of Centro Properties Group, a role he was appointed to in January 2008, leading it through a difficult restructuring effort. Australia-based Centro threatened to be an early victim of the credit crisis. Rufrano had been heading the shopping center company's U.S. operations, having served as longtime CEO of New Plan Excel Realty Trust Inc. before Centro purchased the public REIT in 2000. General Growth filed for Chapter 11 bankruptcy protection earlier this year.
PA Office Lands $52M Refi
Jul 10, 2009
Capmark has originated $52.5 million for a partnership equity
recapitalization and refinance of an existing loan for a
345,000-square-foot office tower in Conshohocken, Pa.
GE Capital-Angelo, Gordon Partnership Pre-Qualifies for PPIP
Jul 09, 2009
GE Capital Corp. and Angelo, Gordon & Co. have been selected as a pre-qualified fund manager for the U.S. Treasury Department's Legacy Securities Public-Private Investment Program. GE Capital Real Estate will oversee GE Capital's role in the partnership, which also has a strategic relationship with CastleOak Securities and Park Madison Partners. The partnership is one of nine fund managers with the pre-qualification.
Looking to Re-Enter Investment Market, Steelbridge Hires Cushman Vet Caplin
Jul 07, 2009
Steelbridge Capital has tapped Jay Caplin, formerly executive director
of Cushman & Wakefield Inc.’s capital markets group, as managing
principal. In his new role, Caplin will play a major role in
Florida-based Steelbridge’s return to active investment in commercial
property market—a game the firm stayed out of in recent years of sky
high pricings and cap rate compression.
DC Office Market Sees Absorption for Third Straight Quarter
Jul 06, 2009
The Washington, D.C., metropolitan area experienced negative overall
net absorption for the third consecutive quarter, according to a report
by Cassidy & Pinkard Colliers, but there are some signs that the
market may be at or near a bottom.
Saudi Fund Names US, UK Property Investment Targets
Jul 06, 2009
Jadwa Investment, an investment management firm with ownership by the Saudi royal family, has targeted U.S. and U.K. commercial real estate as good focuses for investment, according to the Financial Times. With its first action a bid on a $1.1 billion U.K. sale by insurance company Aviva in partnership with CIT, the newspaper quoted its chief economist, Brad Bourland, as saying it is eying "areas where there is currently a favourable exchange rate, attractive asset prices and a historical connection," which includes the United States and the United Kingdom.
Perez Asked to Join Dolphins Management Team
Jul 02, 2009
New Miami Dolphins owner Stephen Ross, chairman & CEO of The Related Cos., has asked Related Group chairman Jorge Perez to become vice chairman of the team, according to the Miami Herald.
California M-F Scores $18M in Financing
Jun 26, 2009
Ory Schwartz, senior director of NorthMarq Capital’s Los Angeles
office, has arranged an $18 million first mortgage for Meadowridge
Apartments, a 176-unit multi-family complex located in Santa Clarita,
Calif.
Extra Space, Harrison Street to Form $213M Storage JV
Jun 25, 2009
Extra Space Storage Inc. has entered into a definitive agreement to
contribute 42 of its wholly-owned properties into a newly formed joint
venture with an affiliate of Harrison Street Real Estate Capital L.L.C.
Philly Shopping Center Lands $17M in Financing
Jun 24, 2009
The New Jersey office of Holliday Fenoglio Fowler L.P. has secured $17
million in financing for Columbus Crossing, a 142,000-square-foot,
grocery-anchored shopping center in Philadelphia.
$325M Florida Mixed-Use Gets OK
Jun 17, 2009
CDS International Holdings Inc. has received approvals for its Atlantic Plaza II, a planned $325 million mixed-use community that will transform two city blocks in Delray Beach, Fla.
Extended Stay Files for Bankruptcy
Jun 16, 2009
The sluggish travel industry has claimed another victim, as Extended Stay Hotels, an operator of mid-priced, extended-stay hotels in the United States and Canada, has filed for bankruptcy.
Portland Office Complex Lands $38M Recap
Jun 11, 2009
The Portland office of Holliday Fenoglio Fowler L.P. has
arranged a $38 million recapitalization of The 1000 Broadway Building, a
268,600-square-foot, Class A office tower in Portland, Ore.
News Briefs
Jul 02, 2009
Perez Asked to Become Vice Chairman of Dolphins
New Miami Dolphins Owner Stephen Ross, chairman & CEO of The Related Cos., has asked Related Group chairman Jorge Perez to become vice chairman of the team, according to the Miami Herald. The team also recently added Gloria and Emilio Estefan and Jimmy Buffet as minority owners, according to the newspaper. Perez rose to celebrity status in his own right during the condo boom, but his Related Group like many other condominium developers has since been struggling with debt in the face of overdevelopment in the Miami and other key condo markets.
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