the Editors of Commercial Property Executive
Maguire Set to Sell Off OC Properties
About a month after appointing a new CEO, debt-troubled Maguire Properties Inc. is moving forward with a number of initiatives intended to deal with its problems, including the sale of office properties in Orange County, Calif. Other steps the company is taking include changes to senior management, seeking additional financing, and returning company headquarters to Downtown Los Angeles. Last month, as reported by CPN, Maguire Properties’ board selected Nelson Rising to head the company’s turnaround efforts. Rising worked for Maguire before leaving to become chairman & CEO of Catellus Development Corp. in 1994. During Rising’s 11-year stint with Catellus, he…
Lehman Loses $2.8B, Cuts Commercial RE Exposure
Lehman Bros. announced today a net loss of $2.8 billion for the second quarter, ended May 31, 2008, compared to net income of $489 million for the first fiscal quarter of this year, and $1.8 billion for the second quarter of fiscal 2007. The firm also said it reduced exposure to residential mortgages, commercial mortgages and real estate investments by 20 percent in each asset class. Lehman made major news in an attempt to shore up investor confidence last week, as it replaced CFO Erin Callan and president & CEO Joseph Gregory. Bart McDade will serve as new president &…
Staubach, JLL Watch Continues
Though as of this afternoon Jones Lang LaSalle had not yet announced a deal to acquire Staubach Co., the transaction is reported to be imminent. Calls to both JLL and Staubach were not returned at press time. As reported by CPN last week, U.K.-based Property Week reported JLL would acquire Staubach Co. in a $735 million deal, a figure that would reflect 10 times Staubach’s earning before interest, tax, depreciation and amortization. The acquisition, if it occurs, should create opportunities for other firms. The loss of a pure tenant rep firm like Staubach will likely provide growth opportunities for Cresa…
AHDP to Develop Staybridge Suites Hotel at Florida Airport
American Hotel Development Partners L.L.C. unveiled plans today to develop a Staybridge Suites hotel at Florida’s St. Petersburg-Clearwater International Airport. The $13.2 million, 106-room hotel is scheduled to begin construction in August and is expected to open in late 2009. The hotel will be managed by Harris Hotel Group, an affiliate of AHDP. The development comes in the midst of the St. Petersburg-Clearwater International Airport’s $10 million renovation project. In addition to undergoing an extensive terminal renovation project, the airport has also recently completed runway extension projects and has increased its capability for international destinations. “The airport is like hotel…
New Fund to Invest $300M in Life Sciences RE
Scheer Partners has joined forces with The JBG Cos. on the creation of a new $100 million fund that will target life sciences real estate. Greater Washington Life Sciences Fund will allow for the investment of $300 million in properties across the Metropolitan Washington, D.C., region over the next three years. The fund’s activities will run the gamut from acquisitions of existing properties to redevelopments to new ground-up construction projects. Scheer is a specialist in this real estate sector, having completed over 500 projects with life sciences entities since its inception in 1991. The company’s leasing acquisition, design and construction…
Staubach, JLL Merger Closes
Jones Lang LaSalle Inc. and The Staubach Co. have reached a definitive merger agreement, the companies announced today. The transaction is expected to close in the third quarter.Per the agreement, Jones Lang will pay $613 million, with $123 million in cash and $100 million in stock paid at the transaction close and the balance paid out in cash over five years, for all of the outstanding capital stock of Staubach Holdings Inc. Additionally, the agreement calls for potential earn out payments of up to $114 million that are subject to the achievement of certain performance metrics measured over a period…
Management Matters with Mike Myatt: Recognizing the Need for Change
Since the title of today’s column is “Recognizing the Need for Change,” I’m going to switch things up a bit and ask you to answer a question posed by me. I first warned readers of the slowing economy more than a year ago, so my question is this: “In the last year what proactive changes have you made to ayour business to improve your ability to navigate the changing economic conditions that are presently vexing many a CEO?” In the text that follows I’ll give you a few places you might want to look at if you haven’t already.Savvy CEOs…
Gas Station Sell-Off to Put Millions in Exxon Mobil’s Tank
Exxon Mobil Corp.’s plans to dispose of the last 2,000-plus gas stations it owns reflects the movement by energy companies to monetize their real estate assets, industry experts say. “Really what they’re doing is taking the capital out of the land and investing it back into the company,” explained Don Naughton, a Houston-based managing director for Grubb & Ellis Co. For the past several years, Naughton has represented Royal Dutch Shell in a similar program and has sold upwards of 500 Shell service stations. CB Richard Ellis Inc. is also marketing stations for Shell. Each Exxon Mobil station could command…
RV Maker Branches into Luxury RV Resorts
Monaco Coach Corp., whose main business is the manufacture of recreational vehicles and diesel motor coaches, is formalizing its venture into what it terms a growing real estate niche with the formation of Signature Resorts. The new entity, which will be based in Nashville, will develop and manage the company’s luxury RV resorts segment. Luxury RV resorts are an upscale variation of basic RV parks, often including such features as landscaped motorcoach sites, clubhouses, health clubs, walking paths, tennis courts, putting greens, pools and other such amenities. According to Coburg, Ore.-based Monaco, aging Baby Boomers who take to the road…
Skanska to Develop Dayton Hospital
In at least its third hospital deal in recent months, Skanska has been awarded a $75.6 million construction management contract for a major expansion at the Miami Valley Hospital in Dayton, Ohio. The project will create the Miami Valley Hospital Heart Tower, an 11-story building totaling about 480,000 square feet and featuring a heart center with cardiac surgery suites and 180 private patient rooms, as well as general patient and visitor areas and underground parking on two levels. The project is a joint venture between Skanska USA Building and the contractor, Dayton-based Shook Construction. Work began in May and is…