the Editors of Commercial Property Executive
Commercial Mortgage Delinquencies in California Up Only Slightly
The bad news is that commercial real estate loan defaults in California have tripled since last quarter and doubled since a year ago, according to the latest quarterly report from the California Mortgage Bankers Association. The good news is that even the latest, higher figure is only 0.06 percent, nearly a record low. The second-quarter CMBA survey found only seven loans that were more than 30 days delinquent, out of 10,794 commercial real estate loans included in the survey. In addition, 15 of the 17 commercial lenders that responded to the survey reported no loans more than 30 days delinquent….
RICS Survey: Real Estate Feels the Heat Worldwide
Real estate markets in most of the developed world are decidedly feeling the pinch of the economic malaise that started last year, according to the RICS Global Commercial Property Survey for the second quarter of 2008. Emerging markets, however, pose a more mixed picture. RICS — Royal Institution of Chartered Surveyors — members worldwide submitted office, industrial and retail property data for their respective markets, which was then analyzed on a global scale for the second quarter of 2008, in comparison to Q1 2008 and 2007 data. All together, a total of 410 responses were received. Among other trends, the…
Equity Based Services Adds 2 Properties to Growing Self-Storage Portfolio
With the addition of two self-storage facilities in one of the hottest markets in the country, San Diego-based Equity Based Services Inc. (EBS) brings its portfolio of self-storage properties to 55 across 10 states, totaling more than $250 million. “We found a quality product in a quality market,” Stephen Kaplan, CEO of EBS, told CPN. “We foresee Houston’s strong performace will continue well into the future.” Kaplan said EBS has aggressively added eight to 12 properties annually over the last 24 months to the self storage portfolio, which was created in 2000.EBS purchased two self-storage facilities in the Houston area,…
Emeritus Nabs 5 Assisted Living Communities
Seattle-based Emeritus Corporation has agreed to purchase five assisted living communities, currently leased to the company, for $62.5 million, plus estimated closing costs of $2.8 million. Located in Ohio, Florida, California and Michigan, the five communities comprise 432 units. The transaction will increase the company’s portfolio of owned properties to 154 or 60.4 percent of the total Emeritus portfolio of 289 communities. This is the third acquisition that Emeritus has announced during 2008. In early June, the company announced the acquisition of 29 communities for $299.8 million, excluding transaction costs. In February, the company announced a $305 million deal for…
Biotech Firm Signs on for 500,000 SF at $3B Boston Project
Vertex Pharmaceuticals Inc. has staked a claim to a total of 500,000 square feet of office space in two structures at the 21-acre Fan Pier mixed-use development (pictured) in Boston. According to the Boston Business Journal, Cambridge, Mass.-headquartered Vertex signed a letter of intent to lease the space with project developer The Fallon Co. last week.Among other offerings, the waterfront project (pictured) will feature three Class A office buildings, which will ultimately account for an aggregate 1.5 million square feet of space. If all goes as planned, Vertex will eventually be part of a 3 million-square-foot enclave that is presently…
Preconstruction Contract Moves Green Beverly Hills Project Forward
Plans for the development of 9900 Wilshire, an über-upscale condominium project in Beverly Hills, are moving forward now that developer Project Lotus L.L.C. has awarded Rudolph and Sletten Inc. the preconstruction services contract for the long-awaited endeavor. Project Lotus, a joint venture involving CPC Group and Kaupthing HF, will build the 235-unit green residential project on an eight-acre parcel that the team snapped up for $500 million in 2007. Among Rudolph & Sletten’s initial activities at 9900 Wilshire (pictured) will be the removal and replacement of a water pipe that serves the beach city of Santa Monica, located west of…
High Street Nabs 18-Building PA Portfolio
High Street Equity Advisors has invested $70.5 million in acquisitions in Pennsylvania. The Boston-based firm purchased 18 light industrial and R&D Flex buildings in two Pennsylvania portfolios, Lehigh Valley and Bucks County. The combined square footage of the properties is about 963,000 square feet, and brings High Street’s Pennsylvania holdings to 26 properties totaling approximately 1.4 million square feet. High Street had previously owned properties in Philadelphia, Harrisburg, Valley Forge, Pittson and Bethlehem. The Bucks County portfolio is comprised of 12 Class B+ light industrial and R&D Flex buildings, and cost $50.4 million in total. The buildings are currently 93…
Hillwood Inks Beverage Giant to 600,000SF Lease in New Jacksonville Distrib Center
In a move to consolidate its distribution operations in the Jacksonville, Fla., area, where it operates a manufacturing plant, Dr Pepper Snapple Group has leased West Point Trade Center, a 601,500-square-foot distribution facility, from Hillwood, which is scheduled to complete the speculative building by the end of the year. The new facility is expected to be fully operational in the first quarter of next year and will employ 40 workers. The building will be used primarily to distribute the beverage giant’s Snapple and Mott’s brands in the Southeast. Hillwood was represented by T. Preston Herold of Hillwood Investment Properties and…
Pep Boys Completes $77M Sale-Leaseback
The automotive aftermarket retailer Pep Boys, whose full corporate name is The Pep Boys Manny, Moe & Jack, has completed a sale-leaseback of 22 properties for $77.5 million. The company will continue to operate the properties as Pep Boys stores, for a lease term of 15 years, with four, five-year extension options. According to the Philadelphia-based Pep Boys, proceeds from the transaction, together with other funds, were used to purchase 27 store properties and two distribution centers that had been leased by the company under a master operating lease for $116.3 million. That lease had been scheduled to expire on…
HFF Closes Self-Storage, Office Sales in Texas
Holliday Fenoglio Fowler L.P. has closed two substantial deals with Texas roots, it has reported. Its Houston-based self storage group completed the sale of a 21-property self storage portfolio with facilities in Florida, Texas, Colorado, Kentucky and Ohio. And its Dallas office announced that it had finalized the sale of the Pyramids at Park Lane in that city. HFF represented the seller, Hendry Investments, a San Antonio, Texas, company with storage facilities operating under the Lock-N-Key brand, which sold the properties to Sovran HHF Storage Holdings L.L.C., a joint venture between self storage real estate investment trust Sovran Self Storage…