the Editors of Commercial Property Executive
Cityscape Update: While Asian REITs Have Potential, Exit Strategies Can’t Be Overlooked
As the third day of the inaugural Cityscape USA exhibition and conference crystallized at the Jacob K. Javits Convention Center in New York City, an afternoon session explored the state of Asian REITs and their impact on the bottom line. Asian REITs are picking up steam due to several reasons, including their ability to provide a pathway to property ownership coupled with their tax efficiency, low-risk possibility because they are highly regulated and attractive annual returns, according to the session’s presenter, Stewart LaBrooy (pictured), executive director & COO of Axis REIT Managers Bhd. Asia currently holds about 11 percent of…
Panel Finds Slowing U.S. Economy Will Continue to Effect Commercial Real Estate
The deteriorating U.S. economy will continue to negatively effect commercial real estate fundamentals. That was the conclusion reached by a panel that convened at the CityScape USA on Thursday to examine macroeconomic factors in the U.S., and their impact on commercial real estate performance. Some panelists did see some positive factors amidst a mostly gloomy economic scenario. Continued productivity increases, and low yearly wage growth among U.S. workers could mean that employment losses could be less than in previous recessions, said Richard Green, director of Lusk Center for Real Estate at the University of Southern California. Fred Cooper, senior vice…
Don’t Count the Midwest Out
For years, we’ve heard a steady stream of bad economic news out of the Midwest, typified in most cases by the decline of the manufacturing sector and the struggles of the Detroit automakers. Yet for commercial property investors the Midwest remains a fine place to be in business–and may even prove somewhat of a haven in the current economic downturn. The region offers plenty of bright spots for investors and developers seeking attractive cap rates that are rarely found in the more competitive East and West coast markets. In fact, one of the strongest aspects of the Midwest is its…
Impact of Lehman Sale Indirect: Real Capital’s Fasulo
As a sale looms for Lehman Brothers Inc., the effect of the bank’s possible demise on commercial real estate finance remains hazy, according to some veteran market-watchers. “I’m not sure how much of a direct impact that’s going to have,” commented Dan Fasulo, managing director for Real Capital Analytics Inc. Lehman’s disappearance would have little effect on the securitization market, which has been almost nonexistent this year, he noted. Instead, the impact on the real estate capital markets would probably be indirect; Fasulo speculated that Lehman’s impending fate could increase worries about the capital market’s stability that could nudge up…
Cityscape USA Update: U.S. Investors Eye Asian Emerging Markets, but Lack Middle Eastern Knowledge
Emerging Asian and Middle Eastern markets were a hot topic this morning at Cityscape USA’s three-day conference, held at The Javits Center in Manhattan.”Capital flows are changing rapidly,” said Robert White Jr., founder & president of Real Capital Analytics Inc., in the first panel discussing U.S. investors abroad. “The U.S. has been the biggest buyer at $70 billion, while foreign funds into the U.S. totaled $30 billion. Although 85 percent of that was in developing markets, emerging markets are important. And development is far beyond those numbers.”Entrepreneurial capital—particularly private investors and funds—lead the pack in foreign investors. And pension fund…
Apartment Complex in Chic Denver Community to Undergo $65M Expansion
The Seasons of Cherry Creek, a 439-unit luxury apartment property in Denver’s tony Cherry Creek neighborhood, is about to experience a growth spurt. RedPeak Properties, which acquired the multi-family asset for $75 million in 2005, just broke ground on a $65 million expansion project that will add 148 residences to the complex.Located at 3329 E. Bayaud Ave. about two blocks from the Cherry Creek Mall, Seasons’ existing 15-story tower and nine-story structure will be augmented by a new 13-story high-rise that will be part of Built Green Colorado’s multi-family pilot program. As part of the program, the new structure will…
Clark Snags Deal for $79M University Housing Project in San Diego
The University of California San Diego has tapped Clark Design/Build of California Inc. to handle he design/build responsibilities for its North Campus Housing Phase 2 project. The mixed-use development will accommodate 800 students and will also feature a retail component. Ground is on target to break on the project in July 2009, about a month after the completion of Phase 1. Encompassing an aggregate 279,000 square feet on a 3.5-acre parcel, North Campus Phase 2 will consist of a 12-story residential building and three to five apartment structures ranging from one to five stories. Carrier Johnson is the architect on…
Buchanan St. Tapped to Orchestrate Financing for $218M L.A. Retail Project
Red Mountain Retail and Allied Retail Partners have selected real estate investment management firm Buchanan Street Partners to structure all necessary capital for the $218.4 million development of El Portal Entertainment Center in South Gate, about 15 miles south of Downtown Los Angeles.The nearly 500,000-square-foot regional multimedia-themed regional shopping center is being designed to target the area’s Hispanic retail market, which features over 1 million residents within a five-mile radius of the project.”This is one of the most densely populated and, in terms of retail, underserved areas in Southern California,” Allied Retail co-founder David Goldman told CPN. “El Portal will…
Under-Priced $74M Condo Project Debuts in Swanky Suburban San Fran Town
Silverstone Communities has completed the development of Park Broadway, a 96-residence condominium property located 15 miles south of San Francisco in Millbrae, part of California’s upscale San Mateo County. The concept behind Park Broadway adheres to Silverstone’s basic corporate tenet, which is to provide relatively reasonably priced, newly constructed homes with the same upscale tenor found at neighboring properties. Silverstone shelled out $74 million to complete the project. Located just outside of Millbrae’s downtown area, which is presently undergoing a $250 million upgrade, Park Broadway is geographically located to appeal to workers in the nearby Silicon Valley job market. Additionally,…
Amid REIT Upheavals, Kimco Seeks Up to $410M in New Stock Offering
Even with REITs’ stock prices going every way but sideways over the past week, Kimco Realty Corp. has set the pricing of its public offering of 10 million shares at $37.10 per share. Kimco estimates its net proceeds at about $356.5 million, or up to $410 million if the underwriters exercise their option to purchase up to 1.5 million shares to cover any over-allotments. Kimco owns and operates the nation’s largest portfolio of neighborhood and community retail centers. As of the end of the second quarter, it owned interests in more than 1,900 properties comprising 180 million square feet of…