the Editors of Commercial Property Executive
PKF Launches New Program to Finance Hotel Projects
In an effort to help hotel real estate investors and owners weather the credit crunch storm, San Francisco-based PKF Capital has established a hotel finance program. Under the program PKF Capital will orchestrate debt and equity financing for clients in need of anything from construction loans to short- and long-term bridge loans to refinancing packages.Presently, the lending market isn’t exactly friendly to the real estate industry, and the hotel sector is no exception. However, it’s this current state of affairs that spurred PKF to make a move in the financing arena. The company has brought in Steve Hanover, a former…
Work Commences on $1.3B Universal Studios Project in Dubai
Ground has just broken on Universal Studios Dubailand, a 7 million-square-foot theme park in the sprawling mixed-use Dubailand development in the U.A.E. Tatweer is behind the project, as well as the entire $64 billion, 3 billion-square-foot Dubailand endeavor, which is being designed to be the largest tourism, leisure and entertainment destination in the world.Universal Studios will consist of five segments, two of which will center on renowned U.S. destinations Hollywood and New York City. Work is on schedule to reach completion in 2010. The Universal Studios project, which carries a development price tag of $1.3 billion, is one of six…
Canadian Office Complex Commands $130M
Petroleum Plaza, a 315,000-square-foot office property in Edmonton, Alberta, Canada, has been snapped up in a transaction valued at $130 million. Acting on behalf of client DEGI Deutsche Gesellschaft fur Immobilienfonds m.b.H., Morguard Investments Ltd. purchased the property from KingSett Capital, which had owned Petroleum Plaza since 2005. Located in Downtown Edmonton in the Government District, Petroleum Plaza (pictured) consists of two towers linked by a retail plaza. Presently, the 35-year-old property is 95 percent leased to the Alberta Government, which is occupying space under a lease agreement scheduled to expire Dec. 31, 2020. Morguard will oversee management of the…
Marsh Finds Insurers Often Cautious with Green
A new report from Marsh Inc., an international insurance broker and risk advisor, finds many insurance companies remaining on the sidelines as they work to determine the extent and types of exposures that might evolve from green building projects. As the number of these projects grows throughout the United States, many leading commercial property and casualty insurers have been reluctant to provide the specialized coverages or program enhancements this construction may require or warrant. According to the Marsh report, the property and design professional liability insurance markets have been the first to develop enhanced coverages or provide specific risk management…
Lowe Gets $116M Refi for DC-Area Office
Los Angeles-based Lowe Enterprises has refinanced Century Center I and II, a 624,600-square-foot office complex in Arlington, Va., for $116.1 million. The Washington, D.C., office of Holliday Fenoglio Fowler, L.P. placed the three-year adjustable rate loan with GE Real Estate. The proceeds repaid the original loans on the property and will finance additional renovations now underway. Since acquiring the property (pictured), which is located four blocks south of the Crystal City Metrorail station, two years ago, Lowe, a national real estate investment, development and management firm, has carried out a complete renovation of the building systems and infrastructure and refurbished…
Housing Law is Confidence Builder, Not Cure-All
Washington, D.C.–President George W. Bush signed into law today a comprehensive package of housing legislation including broad authority for the Treasury Department to safeguard Fannie Mae and Freddie Mac and a plan to help hundreds of thousands facing the possibility of foreclosure.Bush signed the legislation, which Congress approved last week, authorizing the Treasury to rescue Fannie Mae and Freddie Mac if the need arises. Partly to accommodate the rescue plan for the mortgage companies, the bill raises the national debt ceiling to $10.6 trillion, an increase of $800 billion.“On a macro level, this is touted as a cure-all but when…
SoCal Developers: Bring More Water
California’s traditional sources of water no longer meet the needs of Southern California, according to a study commissioned by the Southern California Leadership Council (SCLC) and other sponsors. Bad news for developers, the study is called “Where Will We Get The Water? Assessing Southern California’s Future Water Strategies.” For several years, developers seeking project approvals in Southern California have had to demonstrate how they would supply their projects with water. While most developers have managed, some projects have suffered significant delays. When the Manhattan Beach, Calif., shoe company Skechers wanted to develop a warehouse in Riverside County, the project was…
Laramar Nabs Former Condo Conversion Project, Plans Rental Redo
Laramar Group has acquired Oceanview Apartments, a 160-unit waterfront property located in Boca Raton, Fla. The property, to be renamed Villa Oceana Apartments, was previously a condominium conversion project, and is now designated to be renovated as luxury waterfront apartment units. The price was not disclosed. Laramar acquired the note on the Oceanview from the senior lender, and negotiated with the mezzanine lender and the current owner to complete the foreclosure process. During the foreclosure, Laramar was appointed as receiver, and took over management of the property. Apartment Realty Advisors, through its Boca Raton office, brokered the transaction. Villa Oceana…
Japan May Attract More Interest from Western Hoteliers
American and European-based hotel companies have focused much effort in recent years on expanding their presence in the booming economies of China and India. Much less attention has been paid to the world’s third largest economy, Japan, but, according to a recent report from HVS International, that is soon likely to change. The report notes that investing in Japan does pose some challenges to Western firms. The Japanese lodging industry has no data-gathering company comparable to Smith Travel Research, which provides a wealth of hotel operations and profitably data in the United States. Also, hotel values are measured differently. In…
New York Palace, Hotel Bel-Air Come Under Dorchester Domain
London-based luxury hotel group Dorchester Collection, owner of such iconic properties as the Beverly Hills Hotel and Hotel Plaza Athénée in Paris, has brought two additional legendary assets under its umbrella with the attainment of contracts to manage New York City’s renowned New York Palace Hotel and the tony Hotel Bel-Air in Los Angeles. The properties’ change in management is due to a change in ownership as, in November 2007, the Court of Appeal of Brunei Darussalam’s Judicial Committee of the Privy Council ruled that the hotels’ owner, embattled Prince Jefri of Bolkiah, must honor a previous agreement to transfer…