the Editors of Commercial Property Executive
Wachovia Sues Developers over Defaulted Loans for $565M Las Vegas Residential Project
Wachovia Corp. has filed a lawsuit in U.S. District Court in Manhattan against the group of homebuilders behind a gargantuan planned community in the Las Vegas area, in hopes of recouping at least $358 million in loans made for the $565 million project, which has been scrapped. While the specific name of the project is not identified in Wachovia Bank National Association v. Focus Kyle Group L.L.C. et al, the description of the development and of those behind it match a project called Kyle Canyon Gateway. In addition to Focus Kyle Group and Focus Property Group chief executive John A….
AMB Leases 362,000 SF in Allentown
AMB Property Corp. has leased 362,000 square feet at a development project in eastern Pennsylvania to Cooper Tire & Rubber Co. “We’re pleased to welcome Cooper Tire to AMB I-78 Distribution Center,” Jay Cornforth, managing director of AMB’s East Region said in a release. “Cooper Tire’s decision to locate here underscores the importance of the Allentown/Lehigh Valley submarket, which is a natural extension of northern New Jersey’s industrial marketplace.” The warehouse is currently 700,000 square feet and expected to total approximately 1.2 million square feet across two buildings upon completion. The property is located at 8000 Quarry Road in Lower…
KKE Completes Trio of SoCal Shopping Centers for Hopkins
KKE Architects Inc. has completed three shopping centers located in Southern California on behalf of Hopkins Real Estate Group. The properties are: Imperial Promenade in La Habra; 47th Street Pavilion in Palmdale; and Talega Village Center in San Clemente. For all three projects, KKE provided the conceptual and schematic designs, design development, city entitlements, construction drawings and construction administration.Imperial Promenade, a joint venture between HREG and Arnel Capital Partners L.L.C. of Costa Mesa, Calif., is a 215,000-square-foot shopping center located on 17 acres at Imperial Highway and Idaho Street. The new retail center, which was recently completed, is anchored by…
Developers Diversified Strikes $890M Deal to Sell Stake in 13 Centers
In an $890 million deal, Developers Diversified Realty Corp. is selling an 80 percent interest in a 5.9 million-square-foot portfolio to an institutional investor, the Cleveland-based retail REIT disclosed this morning. Developers Diversified expects to reap $260 million in proceeds from the deal, which is scheduled to close in mid-December, the company said in a statement today. Of that total, $170 million will be available at closing. Developers Diversified anticipates receiving the balance of the proceeds during the first half of 2009. “The principal use of the proceeds will be to de-leverage (the company’s) balance sheet,” noted Sean Pattap, lead…
IMF Broadens Efforts to Contain Global Credit Crisis
Even as former Federal Reserve chairman Alan Greenspan stepped down yesterday from an unhappy experience testifying before Congress, the International Monetary Fund was stepping up to help a growing circle of nations that are being hurt by the worldwide credit crisis. “For Europe, this crisis provides a catalyst for improved cross-border coordination, and we encourage European leaders to follow up with bold steps on their recent commitment to concerted and coordinated action, to resolve this crisis swiftly,” said Alessandro Leipold, acting director of the IMF’s European Department, in a statement earlier this week. In an announcement on Tuesday, the IMF…
Delaware North Off and Running on Aqueduct Gaming Expansion
Delaware North, a Buffalo, N.Y.-based hospitality and food services company, has won a three-way race to build and operate a gaming and entertainment “racino” at Aqueduct Raceway in Queens, N.Y. The company will pay the state of New York $370 million upfront as a licensing fee for the project, expected to cost at least $420 million. The plan calls for the installation of about 4,500 video lottery terminals (VLTs) in a 328,000-square-foot facility that will also include restaurants, a 60,000-square-foot center and about 300 hotel rooms. Delaware North President William Bissett said the company and its partners, Aqueduct Gaming L.L.C.,…
Financial Market Update-Fri., Oct. 24
Can we call it Black Friday yet? Not yet. As soon as trading opened this morning, stocks fell sharply, but then started bouncing around like a rubber ball. So predictions of a 1,000-point DJIA meltdown haven’t come to pass–yet. As of mid-day, the index had lost a mere 380 points, or about 4.3 percent. The Nasdaq and S&P 500 were similarly off (3.8 percent and 4.5 percent, respectively). Stay tuned. Today, by the way, is the 79th anniversary of Black Thursday, the first day of panic selling on the stock market back in 1929, which turned out to be an…
Atlantic Yards Arena Gets Clearance to Use Tax-Free Bonds
The Internal Revenue Service has issued a ruling that gives Forest City Ratner Cos., developer of the $4 billion Atlantic Yards project in Brooklyn, the go-ahead to leverage tax-free bonds for the development, the cornerstone of which would be a new arena for the National Basketball Association’s New Jersey Nets. The regulation also arms New York City’s two major league baseball teams, the Mets and the Yankees, with the ability to use more tax-exempt bonds to fund construction of their new stadiums. The eagerly anticipated ruling comes two years after the IRS proposed toughening regulations on the use of tax-free…
Emaar MGF to Develop Commonwealth Games Village 2010 in Delhi, India
Indian real estate company Emaar MGF has been chosen by the Indian government to develop the Commonwealth Games Village 2010 in Delhi, the firm has announced. The village is an integrated residential project spread over 27 acres adjacent to the Akshardham Temple. The project will hold 1168 apartments spread across 34 towers, with almost four million square feet of constructed area. These apartments range from 2- to 5-bedroom units that range from 1400 square feet to 3,500 square feet. They will first be used by the athletes and then sold after the games. Strategically located, the Commonwealth Games Village is…
ProLogis Fund Grabs 392,000 SF in Korea
ProLogis Korea Property Fund has acquired a $44.2 million distribution center in Icheon City, South Korea, it has reported. The 392,000-square-foot (36,400-square-meter), three-story facility is fully leased to a leading clothing designer and retailer that is the licensed distributor of such brands as Converse and Kappa throughout Korea. This is ProLogis’ first lease agreement with the company. “This is a key acquisition that adds to our position in South Korea’s largest distribution market, the Gyoenggi Province,” Thomas Nam, head of South Korea operations for ProLogis, said in a statement.The distribution facility is located in Icheon City, Gyoenggi Province. The province…