the Editors of Commercial Property Executive
Perini to Repair Andersen Air Force Base in Guam, Build in Iraq
Perini Corp. has announced that it has won the order, worth $50.7 million, for repairs to the south runway at Andersen Air Force Base in Guam, and $175 million for work in Iraq.The order at Andersen AFB is a design-build project for the removal of an existing runway and replacement with a new Portland Cement Concrete runway of the same size. The work also includes the removal of existing landing equipment and its later replacement after the goverment refurbishes it. Andersen AFB is the home of the 36th Wing of the Pacific Air Forces which hosts USAF active, reserve, national…
Hersha Hospitality Gets $175M Revolving Credit Line
Hersha Hospitality Trust has announced that it has entered into a $175 million revolving credit loan and security agreement with a consortium of lenders.The deal provides for a revolving line of credit is structured to allow for an increase of an additional $40 million to be arranged with new participants as well.The company expects to use the credit for working capital and general corporate purposes in addition to the purchase of hotels in the future.The interest rate is at the Prime Rate (or alternatively LIBOR plus 250 basis points)–at Hersha’s option. The group of lenders that has committed to financing…
From CPN’s Morning Newsletter–Paulson Tells Banks They Must Spend It
As CPN reported exclusively in our Daily News REport Morning Edition(subscribe here), banks receiving funds from the Treasury Department under the financial bailout plan must turn around and re-deploy that money in order for the strategy to be effective in preventing a collapse of the financial system, Treasury Secretary Henry Paulson told them when he handed them their new deal yesterday. More details of the rescue plan’s first stages are emerging this morning, from a number of news sources. For $250 billion the Treasury gets preferred stock paying a 5 percent dividend for five years. After that the rate goes…
Financial Market Update: After the Closing Bell-Wed., Oct. 15
Oops, there it goes again. At the end of the day Wednesday, the Dow Jones Industrial Average was down some 733.08 points, or 7.87 percent. Most of the Monday’s surge has evaporated. The Standard & Poor’s 500 was off 9.03 percent, and the Nasdaq lost 8.82 percent. What’s stampeding investors now? Bad numbers from the wider economy, especially retail sales. Some of that dead-cat bounce was evident in Hong Kong Wednesday, as the Hang Seng Index lost about 5 percent. Japanese stocks also traded lower much of the day as well, but the Nikkei 225 ended up with a 1.1…
Bernanke: Feds Have Tools They Need to Cope with Crisis
On a day that has so far brought somewhat of a lull in the federal government’s efforts to avoid being remembered as the people who brought you “1929: The Sequel,” many eyes were on Federal Reserve chairman Ben Bernanke, who appeared on ABC’s “Good Morning America” and later spoke to The Economic Club of New York. In concisely summarizing to the latter the federal government’s actions over the past few weeks, Bernanke (pictured) struck a measured but confident tone, certainly not implying that the crisis is past the worst, but emphasizing that the government has the tools it needs to…
Northmarq’s Scott Retires
NorthMarq has announced that Mike Scott, senior vice president for retail, is retiring after 40 years. Scott was a leader in the advancement of the concept of shopping malls. As Dayton-Hudson Properties vice president of leasing for regional shopping center development in the 1970s, he was instrumental in getting tenants to commit to several Minneapolis shopping malls including Southdale, the first enclosed shopping mall in the country. Scott is the first-ever recipient of the Minnesota Shopping Center Association’s President Award for outstanding contributions to the industry. Spending his career in retail development, leasing and tenant representation, Scott recently completed his…
McCain, Obama Offer New Economic Plans Aimed at Main Street Voters
In the wake of the final presidential debate last night at Hofstra University on Long Island, N.Y., both candidates have developed and presented economic plans aimed at addressing key concerns for many Main Street voters and calming their fears over the financial crisis. Democrat Barack Obama and Republican John McCain both made distressed mortgages part of their rescue packages, but with different twists. One of Obama’s new proposals calls for a 90-day moratorium on foreclosures for homeowners that are acting in “good faith” to pay their mortgages. Banks and financial institutions that have benefited from the federal $700 billion rescue…
TIAA-CREF: CRE OK for Now, Not Invulnerable
Turmoil in the financial markets and declining prospects in the general economy have so far failed to affect the U.S. commercial real estate market in a significant way, according to Martha Peyton, managing director of strategy and research for global real estate with New York City-based TIAA-CREF. But that can change. “We haven’t yet seen how many jobs will disappear in the coming weeks and month because of the interruption in credit,” Peyton (pictured) told CPN. “The sooner this is resolved the better.” Which of the proposed solutions–equity infusion or the purchase of bad subprime mortgages–will likely work faster? “The…
Madison Capital Acquires $45M B Note Loan for W South Beach Hotel
Madison Capital Management L.L.C. and its affiliates closed on a $45 million B Note loan acquisition from Hypo Real Estate Capital Corp. The loan is secured by a luxury oceanfront hotel and condominium project in South Beach, Fla. W South Beach Hotel & Residences (pictured) is currently under construction at 2201 Collins Ave. and is scheduled to be completed in the summer of 2009. The property is the first W project made up entirely of residences and will operate as a hotel as unit holders include their residences in a voluntary rental program. The hotel features 419 residences. Amenities will…
GM Seeking $500M Bond Investment or Sale-Leaseback of Detroit HQ
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 million.GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund. But GM may have trouble getting the first pension board to invest….