the Editors of Commercial Property Executive
Net Lease Q&A: Sovereign Investment’ Hoppen Thinks Market Still Strong for Private Equity
From the point of view of private-equity investment, times aren’t that bad in the net lease business. That’s the thinking of Jeffrey Hoppen, chief investment officer of Princeton, N.J.-based Sovereign Investment Co., a private principal equity investment firm specializing in net lease portfolio transactions. Hoppen further posits an increase of community and regional banks looking to sale-leaseback transactions as a route to diversification of funding sources. Sale-leaseback transactions, he says, are no longer viewed as a move by struggling companies in need of cash. Instead, they have become financial management tools used by stable companies to rearrange their capital structure,…
Linens ‘n Things to Close 120 Stores, Dispose of Real Estate
Linens Holding Co., a home furnishings specialty retailer operating as Linens ‘n Things, announced today the hiring of DJM Realty, a national retail real estate disposition firm, to exclusively manage the disposition of 120 underperforming stores that the company targeted for closure as part of its restructuring. As previously reported by CPN, Linens ‘n Things filed to reorganize under Chapter 11 on May 2, 2008 and has begun closing the targeted stores. The hiring is subject to bankruptcy court approval. The 120 leases that are available in this bankruptcy sale are located across the country, with a combined square footage…
J.C. Flowers, Grove Take Stake in Hypo
The offer made by a group of investors consisting of trusts advised by J.C. Flowers & Co. and funds managed by associates of Grove International Partners to obtain a stake in Hypo Real Estate Holdings A.G. has been accepted by Hypo shareholders. The offer is for a 20.0 percent to 24.9 percent ownership stake in Hypo, at a price of $35 per share.“Their stake will help to stabilize our shareholder market and their experience will help our company in seeking new opportunities for future expansion and growth,” said a spokesperson from Hypo, a Munich-based public commercial real estate holding company….
Cooling Condo Sales Tied to Seattle Rental Growth, $48M Sale
Taking advantage of a Seattle apartment market with a high barrier to entry, Sobrato Development Cos. has acquired Expo62 (pictured), a 114-unit apartment complex in the Lower Queen Anne area of the city from Intracorp Real Estate L.L.C. in a $48 million deal. “The complex will be completed this month. Originally planned as a for-sale condo community, the project was switched to apartments because of the slowing condo sales in the area,” Jeffrey Williams, partner in the Pacific Northwest office of Chicago-based Moran & Co., which brokered the deal, told CPN. “With a very robust apartment market with very little…
State Signs 224,000SF Lease at Historic Philly Building
The Commonwealth of Pennsylvania has signed a deal with Pennsylvania Real Estate Investment Trust for 224,000 square feet of office space at the former Strawbridge & Clothier building in Philadelphia. PREIT is renovating the historic property where the state will occupy three floors located atop retail space. Located at 801 Market St. in Center City’s Market East section, the Strawbridge property is surrounded by premier retail options, including PREIT’s 1 million-square-foot Gallery at Market East shopping center. Strawbridge & Clothier originally made its debut at the locale in 1868, and later redeveloped the site to encompass two structures that are…
House Committee Focuses on Construction Safety Following Fatal Accidents
Saying the construction industry is “facing a safety and health crisis” following a series of fatal accidents in New York City and Las Vegas, a national labor union official today told a Congressional committee today that OSHA needs to establish a new construction safety office. Speaking at a hearing called by the House Education and Labor Committee to address whether the federal Occupational Safety and Health Administration is failing to adequately enforce construction safety rules, Mark Ayers, president of the Building and Construction Trades Department, AFL-CIO, also called for OSHA to immediately set crane safety standards, step up its job…
BOMA Takes Aim at Green Contract Issue
The speed with which green building practices have caught on in commercial real estate has outpaced the legal and contractual tools that owners, developers, tenants and others need to make such green practices function as smoothly as possible. At the Building Owners and Managers Association (BOMA) International Conference and Office Building Show in Denver yesterday, BOMA and the Clinton Climate Initiative (CCI) took a stab at part of the problem by unveiling what they term the Energy Performance Contract Model, which would allow building owners to perform major energy retrofits to the existing buildings using standardized contract language. BOMA and…
Canadian Commercial Portfolio Snapped Up for $80M
Toronto-based Whiterock Real Estate Investment Trust is on the verge of adding 341,000 square feet of office, industrial and retail space to its portfolio now that it has entered into an agreement with an unidentified seller to acquire eight commercial assets in Alberta. Located in Calgary and Edmonton, approximately 54 percent of the portfolio consists of office space, while 30 percent consists of industrial space, with the remaining 16 percent encompassing retail space. On average, the properties have a remaining lease term of 5.7 years and a 99 percent occupancy rate, with in-place market rents at 20 percent below current…
SCI Buys 10-Building Student Apartment Complex Near Oklahoma State
SCI Real Estate Investments L.L.C. has purchased Campus Park, a student apartment community in Stillwater, Okla., from Internacional Realty Group. The property consists 10 apartment buildings totaling 138 units (384 beds), plus a clubhouse, on 19 acres, some of which is available for future development. The community also features a pool with spa, volleyball and basketball courts, a computer room and private study/conference rooms. It traded hands for an undisclosed price. Although he declined to disclose the purchase price, Scott Derrick, SCI’s chief investment officer, told CPN that the property traded hands at an 8.2 cap rate. The property is…
SL Green Aqueduct Bid Wins Union Support
Several of New York’s major labor unions have endorsed SL Green Realty Corp.’s proposal to revitalize the Aqueduct Racetrack in Queens (pictured). Unions supporting SL Green’s bid include: • The Building & Construction Trades Council of Greater New York • The New York Hotel and Motel Trades Council • Local 32BJ of the Service Employees International Union • Local Union No. 3 of the International Brotherhood of Electrical Workers • The International Union of Operating Engineers, Local Union Nos. 30 and 94• The Sheet Metal Workers International Association, Local No. 28, Metropolitan New York and Long Island. SL Green’s plan…