the Editors of Commercial Property Executive
Update: Fire Protection Consultant to Work with Monte Carlo Casino and Resort
Following a study ordered by the Clark County Development Services’ Building Division, the Monte Carlo Casino, and Resort in Las Vegas was instructed to work with a Nevada-registered fire protection engineer to determine how to address parts of the building’s facade that were treated with a non-fireproofed lamina. “We wanted to examine the totality of the incident and we needed to determine if any of the materials contributed or exacerbated the spread of the fire because they clearly didn’t cause it,” Ron Lynn, director of development for Clark County, told CPN. “Having found that there are some relatively minor discrepancies…
Clock Ticks on Sale of Huge Brooklyn Housing Complex
The finish line is in sight for the competition to acquire a nearly 6,000-unit Brooklyn apartment complex that will command the highest price for a U.S multi-family property this year and rank among the biggest transactions in any category. Early next month, a winning bidder should emerge for Starrett City, a 34-year-old, nearly 6,000-unit complex located on Jamaica Bay. Unsettled credit markets and declining commercial property prices in New York City make predictions difficult, but local industry players have suggested that the property could command close to $1 billion. If so, the sale’s price tag would exceed all New York…
HFF Secures $172M M-F Development Loan
Holliday Fenoglio Fowler L.P. has arranged for $172.5 million in financing for the development of three multi-family properties. The construction/mini-permanent loan is for three properties that are scheduled to consist of over 1,100 units in Maryland, 15 miles from Washington, D.C. The properties involved in the transaction are the 451-unit Westchester at Contee Crossing in Laurel, 192-unit Westchester Rockville Station in Rockville and 491-unit Westchester at the Pavilion in Waldorf. The loans were arranged by HHF on behalf of Archstone. Archstone will borrow the funds on a 60-month loan from TIAA-CREF, a financial services company. HFF director Cary Abod of…
Washington REIT Pays $58M for DC Apartment Complex
With the shelling out of $58.3 million, Washington Real Estate Investment Trust has added a 374-unit luxury apartment community to its portfolio. Located in a relatively upscale neighborhood in northwest Washington, D.C., The Kenmore has a price tag of $155,750 per unit . The seller, Smith Property Holdings 4411 Connecticut L.L.C., had owned The Kenmore since 1997, when it acquired the 11-story building for $15.6 million. Carrying the address of 5415 Connecticut Ave., NW, The Kenmore sits on a nearly 1.7-acre parcel within a stone’s throw of Chevy Chase, which is just over the Maryland border. The 270,000-square-foot property was originally…
UDR Wraps Up Reinvestment of Funds from $1.7B 1031 Exchange
Almost exactly six months after closing on the sale of 86 apartment properties to DRA Fund VI L.L.C. and joint venture partner Steven D. Bell & Co., UDR Inc. has concluded the reinvestment of 1031 exchange funds from the from the $1.7 billion sale. The Denver-based REIT used $951 million of the proceeds to purchase, in various transactions, 12 apartment communities encompassing nearly 4,100 residential units. The acquisitions allowed the company to reposition its portfolio with newer properties within close proximity to lifestyle centers and transportation hubs in its core markets, which are characterized by high rent-growth potential, expanding employment…
Hurricane Season Promises Extensive Property Damages
The U.S. hurricane season is well on its way, with Tropical Storm Hanna battering the East Coast this past weekend, and Ike and Josephine becoming potential, significant threats. Hurricane Gustav, which hit the Gulf Coast last week, caused up to an estimated $10 billion in damages. The National Oceanic and Atmospheric Administration projected that this year’s hurricane season, which began on June 1, to be near or above normal; however, there is a 65 percent chance of an above normal season versus a 25 percent chance of a near normal season. The outlook indicates a 60 to 70 percent chance…
Observers: Fannie, Freddie Takeover Was Necessary
The federal government’s takeover of Fannie Mae and Freddie Mac is a necessary step to stabilize the U.S. housing market, according to industry experts who are still examining the ramifications of the announcement. The takeover will go a long way toward solving what Stuart Saft, partner in the law firm of Dewey & LeBoeuf called a “catch 22” that has been bedeviling a critical part of the economy, housing. Real estate, being an illiquid asset, needs a steady stream of capital inflows. The credit freeze-up has meant that home prices have fallen, thus causing lenders to be much more cautious…
Grubb & Ellis Realty Takes 312-Unit Atlanta Area M-F
Grubb & Ellis Realty Investors has purchased The Retreat at Peachtree in Peachtree City, Ga., a suburb of Atlanta. The 312-unit multi-family property consists of 15 separate residential buildings totaling more than 300,000 square feet on 26 acres. Additionally the community features recreational facilities and an executive business center on site. Each unit is equipped with modern appliances and averages a square footage of 980 feet. Currently, the property is 94 percent leased. Grubb & Ellis purchased the property as part of a joint venture with AMLI Residential and Prudential, which was represented by Engler Financial Group. Capstone Realty Advisors…
Feds Form Conservatorship for Fannie, Freddie
Treasury Secretary Henry Paulson Jr. announced Sunday that the Treasury Department and Federal Housing Finance Agency would step in to act on behalf of Fannie Mae and Freddie Mac. A conservatorship has been formed that will manage taxpayer investment in the two giants, among other steps.In July, Congress had given the department power to bolster the two. “Since that time,” Paulson stated over the weekend, “we have closely monitored financial market and business conditions and have analyzed in great detail the current financial condition of the GSEs – including the ability of the GSEs to weather a variety of market conditions…
HFF Arranges $90M Loan for New Archstone M-F Project in Boston
Development of Archstone Avenir, a 241-unit luxury apartment community in Downtown Boston, is moving forward with help from a $90 million construction loan arranged by the Boston and Dallas offices of Holliday Fenoglio Fowler L.P. The 36-month construction loan was secured through NEBF Investments (National Electrical Benefit Fund), a Washington, D.C.-based union pension fund advisor and real estate investment program. John Ahmed, an HFF associate director from the Dallas office who helped arrange the financing, said HFF has worked with NEBF in the past. The fund, created by the International Brotherhood of Electrical Workers and National Electrical Contractors Association, has…