the Editors of Commercial Property Executive
More Economic Difficulties to Come, Warn Economists
Lock up all your financing needs now, advised Ken Rosen during NAREIT’s REIT Week, because the U.S. economy’s performance is likely to grow worse before it grows better. Rosen, chairman of Rosen Real Estate Securities L.L.C., offered a somewhat negative view on the nation’s economy during a spotlight on the State of the Economy that also featured Richard Berner, chief U.S. economist & co-head of global economics for Morgan Stanley & Co., and was moderated by AvalonBay Communities Inc. chairman & CEO Bryce Blair. Berner offered a somewhat more positive outlook, with an outlook for a slightly stronger 2009, although…
Google Inks Nearly $150M Lease at NASA Center in California
Internet high-flyer Google Inc. will develop a new high-tech campus at the NASA Ames Research Center in Mountain View, Calif. The 40-year lease, valued at at least $146.4 million, is for a 42-acre campus that will include up to 1.2 million square feet of office and R&D space.
Church & Dwight to Close N.J. Facility, Build New Plant in Penn. for $170M
Church & Dwight Co., which manufactures personal care and household products under the Arm and Hammer label and other major brands, said today it is closing its North Brunswick, N.J., facility and building a new 1.1 million-square-foot laundry detergent manufacturing plant and distribution center in York County, Penn. It will be the largest capital expenditure in the 165-year history of the company, said James Craigie, chairman & CEO. Construction and transition expenses are expected to cost $170 million, with $150 million of that being capital expenditures, company officials said during a morning conference call with investors. They said much of…
JV Acquires 7 Residential Properties in Turkey
In a joint venture between Taurus Investment Holdings L.L.C. and Apollo Real Estate Advisors, seven Turkish properties were acquired as part of a project to invest between 80 to €100 million in private equity and debt finance. Taurus Eurasia–a Taurus subsidiary led by Ertan Dal–closed on a series of acquisitions in Turkey through its Taurus of Galata Gayrimenkul Yatirim A.S. vehicle, which is the joint venture between Taurus and Apollo Real Estate Advisors. Its purpose is to acquire, develop and sell residential buildings in Istanbul’s city center and involves both restoration and new construction. The program plans to invest approximately…
Prudential Teams With Mexican Developer on Phase II of Baja Resort
Mexican developer Grupo Concord has formed a joint venture with Prudential Real Estate Investors to develop the second phase of the CostaBaja Resort & Marina project on the Sea of Cortez (the Gulf of California). PREI, the investment management arm of Prudential Financial Inc., is acting on behalf of institutional investors, and will invest up to $800 million in the project over several years. The project is located about five miles from Downtown La Paz, the state capital of Baja California Sur. Currently, the CostaBaja complex has a marina for 250 boats, a 120-room hotel, retail space and entertainment areas…
$1B Sustainable Mixed-Use Project Gets Voter Go-Ahead in Santa Paula
The road has been paved for builder and agribusiness concern Limoneira Co. to move forward with its planned $1 billion mixed-use project in Santa Paula, Calif., now that voters have signed off on Measure G, legislation that allows the incorporation of outlying land into the city. Plans to develop the site known as Santa Paula East Area I, located in the Heritage Valley Corridor about 40 miles from Santa Barbara, have been in the works for about five years. In February, Limoneira achieved a significant coup by gaining the unanimous approval of the Santa Paula City Council and Planning Commission…
Evaporation of $4B Crown Project Proves Vegas Not Immune to Credit Crunch
As a handful of multibillion-dollar mixed-use projects move forward in Las Vegas, one has fallen prey to the crippling lending markets. Joint venture LVTI L.L.C., in which Melbourne, Australia’s Crown Ltd. has a 37.5 percent stake, has decided to nix plans to develop a 27-acre site at the intersection of Las Vegas Blvd. and Sahara Ave. on the Strip. Crown announced that following a strategic review of the planned project, the company and joint venture partners investment management concern York Capital Management and real estate developer IDM Properties had decided to put the kibosh on the endeavor, citing “recent upheavals…
Harbor Point Receives Approvals for Redevelopment of Stamford’s South End
Stamford, Conn., Mayor Dannel Malloy has announced that Harbor Point Development L.L.C. received approval from Stamford’s Board of Representatives for financing of infrastructure improvements and approval from the Zoning Board for buildings and open space plans for Phase I of its transformation of Stamford’s South End. The development has received all necessary approvals to proceed. Harbor Point will file building permits with the city for phase one of this project, comprising approximately 1 million square feet of development, by July 1. The project will transform a long dormant section of Stamford’s industrial past into a mixed-use development consisting of a…
Lodging Executives Use Array of Strategies to Get New Brands Built
Locating hotels in high profile urban locations and exhibiting room models in highly trafficked locations are two methods hotel companies are using to gain market share for their new brands, according to hotel executives who spoke on Tuesday at the NYU Hospitality Investment Conference in New York. The executives appeared on a panel, providing a status report on these new brands, which have been launched in recent years to attract the large number of Gen X and Gen Y travelers who are spending an ever-increasing amount of the U.S. travel dollar. For one new brand that has many features that…
JV Snaps Up 1.1MSF Canadian Retail Portfolio for $156M
RioCan Real Estate Investment Trust and Kimco Realty Corp. have teamed up to acquire a 10-property portfolio of retail assets in central and eastern Canada. The joint venture, RioKim II, will shell out approximately $156 million for the shopping centers, which encompass a total of 1.1 million square feet. Seven of the properties–accounting for an aggregate 540,000 square feet–are located in Ontario and span the cities of Belleville, Chatham, Fergus, Hawkesbury, London and Ottawa. The remaining assets cover 535,000 square feet in Montreal and Gatineau, QC, and Halifax, NS. Six of the properties count Shoppers Drug Mart, Wal-Mart or Zellers…