the Editors of Commercial Property Executive
ProLogis Inks 475,000-SF Build-to-Suit Deal Near Paris
ProLogis has announced that it will build a new, 475,000-square-foot industrial warehouse near Paris for C&A France, the French subsidiary of international clothing retailer C&A. The facility will be developed southeast of the capital in the city of Presles. C&A will use the space as a regional distribution center, distributing various lines of apparel to its network of retail stores throughout northern and central France. Construction on the building, which will eventually be rail-served, is scheduled to begin in the second half of 2008. While the French industrial property market is still good for build-to-suit development, according to Prologis’ Ranald…
Inmobiliaria Colonial Nears Debt Restructuring
Inmobiliaria Colonial SA of Barcelona is reportedly close to finalizing a $12.9 million deal with its various creditors that could include the sale of some assets and a future infusion of cash from shareholders. In late March and again in late June, CPN reported on Colonial’s efforts to sell its 15 percent stake in Fomento de Construcciones y Contratas SA, Spain’s third-largest construction company. The most recent development would have to involve both primary Colonial shareholders Banco Popular and La Caixa and major creditors Goldman Sachs, Eurohypo, Calyon and Royal Bank of Scotland. A deal is expected within the next…
Retail Risk Trails Other Sectors in CCIM Survey, But Roots Remain Strong
The return and value of retail assets has recently slipped relative to other categories, according to a recent survey of CCIM designees and candidates. Given consumer worries about high prices and the burdens facing retail tenants, the survey results come as no surprise, said Kenneth Riggs, president & CEO of Real Estate Research Corp. “The message they’re sending is that (these conditions) will continue at least for the next year,” RIggs said. RERC conducted the study in association with the CCIM Institute, an educational affiliate of the National Association of Retailers.The RERC/CCIM Institute study found that respondents consider the retail…
W.P. Carey in $28M Sale-Leaseback
W.P. Carey Group’s publicly traded CPA:17 Global REIT has completed a $28 million sale-leaseback deal with wireless communications firm Sabre Industries on two industrial properties located in Alvarado, Texas and Bossier City, La. Sabre will use the capital from the sale to invest in their infrastructure on the properties, which primarily will deal with wireless technology, including the construction of new towers and shelters. The infusion of cash will allow Sabre to remain competitive in the wireless communications marketplace, which has experienced a rapid growth in demand in the 21st century. Sabre is owned by private equity fund Corinthian Group…
AvalonBay Forms $950M Apartment Fund
AvalonBay Communities Inc. has created a new fund that will focus on the acquisition and operation of apartment properties in high barrier-to-entry markets in the Northeast, Mid-Atlantic, Midwest, and on the West Coast. A private discretionary investment vehicle, AvalonBay Value Added Fund II L.P. has a total $333 million in equity commitments–$183 million from four institutional investors and $150 million from AvalonBay–resulting in leveraged buying power of as much as $950 million. Acquisitions through Fund II will target properties that present the opportunity to create value through redevelopment, improved operations, and/or promising market fundamentals. Fund II will operate for a…
Lenders Go After Macklowe Over $510M Loan
Deutsche Bank AG and other lenders are suing Macklowe Properties Inc. to foreclose on a $510 million loan the company took out to develop the site of the Drake Hotel in New York City. Macklowe bought the vintage 1920s hotel about two years ago and razed it, with plans to develop a mixed-use retail and office tower on the site. However, as reported extensively by CPN, the credit crunch has caught up with Macklowe. Last month, the company sold a number of major assets in New York–including 125 West 55th St., 540 Madison Ave., Two Grand Central Tower and 1301…
Gramercy Taps Carlton to Auction 74 Bank, Retail Assets
Carlton Advisory Services Inc. has taken on the role of exclusive sealed bid advisor for the disposition of 74 former bank branch and retail properties on behalf of Gramercy Capital Corp., which operates its commercial real estate business under the name Gramercy Realty. Sited in key locales spanning 19 states, the group of assets includes land parcels and has an aggregate appraised value of approximately $58.8 million. All bids are due by Oct. 13. The majority of the portfolio is located in Florida, where 11 properties and three land parcels are up for grabs. Other areas of concentration include Alabama…
Akridge Land Purchase Paves Way for $330M Mixed-Use Project
It’s not quite two acres, but the Akridge Office Fund’s newly purchased parcel of land on Half Street near the new Nationals Ballpark in Washington, D.C., will become the home of a 700,000-square-foot mixed-use development. Having just completed the $46.5 million acquisition of the site from the Washington Metropolitan Area Transit Authority, Akridge can now take the next step toward realizing the approximately $330 million development known as 25 M Street. When all is said and done, 25 M Street will feature approximately 320,000 square feet of premium office space, 300 square feet of residential space and 70,000 square feet of…
Korean Bank Confirms Interest in Buying Lehman Stake
Buzz about a possible sale of Lehman Brothers escalated today after a top official at state-owned Korea Development Bank confirmed that KDB was trying to form a consortium with private banks to buy a stake in the troubled investment banking firm. Several news reports out of Seoul quoted Min Euoo-sung, CEO of KDB, as saying talks about Lehman Brothers were ongoing but were running into problems over prices. Min, who had been head of Lehman’s operations in Seoul until joining KDB in June, did not indicate how much of a stake a the consortium would seek. But Britain’s Sunday Telegraph…
Maguire Completes Second SoCal Office Sale in a Week
Maguire Properties Inc. has closed the books on the disposition of City Plaza, a 324,000-square-foot office building in Orange, Calif. An entity owned by Hudson Capital L.L.C. took the property off Maguire’s hands. The sale, the Los Angeles-based REIT’s second in Orange County in less than a week, is part of Maguire’s plan to reduce debt and increase Funds from Operations by selling certain assets in Orange County. Developed in 1969 and renovated in 1999, City Plaza carries the address of One City Boulevard West and sits off the 5 Freeway within three miles of Disneyland. The 18-story tower–as well…