the Editors of Commercial Property Executive
Passport to Prosperity
The new hotels beyond United States borders range from a luxurious 300-room St. Regis property planned for an island in Bahrain to an extended-stay Homewood Suites by Hilton hotel that caters to executives working in business parks along India’s “IT Highway.” Whatever the size or the sector, lodging companies are racing to plant their flags in the booming economies of China, India, the United Arab Emirates and other growing countries around the world.While many of the big hotel companies have until now built significant presences in major foreign capitals and other cities through large, center-city hotels, they are now growing…
Suite Spot
In 1939, seven owners of southern motor court hotels created Quality Courts, an alliance of motels that shared standards for the quality of their facilities and operating procedures. They could not have imagined that their alliance would grow into one of the world’s largest hotel chains, operating 10 brands in the midscale, economy, upscale and extended-stay segments.By the end of 2007, Choice Hotels International Inc. was franchising 5,500 hotels representing 450,000 rooms in the United States and 37 other countries and territories. That included the newly introduced Cambria Suites, an upscale brand with Generation X-friendly features.The company plans continued expansion….
Which Way Is Green?
In real estate, as much as in any business, the early spoils tend to go to outfits that first recognize paradigm-shifting trends and then position themselves to capitalize as momentum builds. But the organizations also cannot forever rest on their laurels, for competitors are never far behind.Though competition is less cutthroat among non-profit trade associations, a parallel history appears to be playing out as varying interests vie to supply ratings systems for the industry-transforming green building movement.A powerful early leader has clearly emerged in the U.S. Green Building Council and its signature Leadership in Energy and Environmental Design certification programs,…
Allen & O’Hara Closes $73M Student Housing Bond Issue
Allen & O’Hara Development Co., the development subsidiary of Education Realty Trust Inc., has closed on a $73.4 million bond issue for the development of a student housing project at Indiana University of Pennsylvania. The funds will support the construction of the third phase of a $250 million, four-phase residence hall building program that will replace 3,600 beds with LEED-rated on-campus student housing. In Phase III, Allen & O’Hara will demolish four old dormitories to make way for two new buildings offering 1,084 beds. The new housing will open in August of 2009 in time for the school year. The…
Lagovent Buys Apartment Portfolio in Dallas Metroplex
Lagovent Real Estate Group has acquired two Class B Dallas-area apartment complexes totaling 952 units for a total consideration of $40.5 million. The seller was the Frankel Family Trust of Anaheim, Calif. “These are core assets with stable cash flow which will provide our investors with risk adjusted, double-digit first-year returns,” Lagovent managing partner Konstantin Glasmacher said in a prepared statement. “These types of multi-family assets fit nicely into our national real estate strategy, which focuses on very specific location and asset attributes.” The two properties are Camelot Village, a 512-unit complex in Mesquite, Texas, and Wimberly Park, a 440-unit…
CBRE Investors Closes $2.1B Real Estate Fund
CB Richard Ellis Investors has announced the closing of CB Richard Ellis Strategic Partners U.S. 5 to new investors. Strategic Partners U.S. 5 consists of two limited partnerships, with raised equity commitments of $2.1 billion from institutional investors in the United States, Europe and the Middle East. The funds are expected to have total purchasing power of $6.4 billion.Strategic Partners U.S. Value 5 plans to make value-added investments to reposition assets, stabilize moderate levels of vacancy, invest in “controlled risk” development and pursue a portfolio accumulation strategy in highly rated major metropolitan areas in the United States.The Partnership will also…
Busy Few Days for ProLogis with Development, Acquisition, Hiring News
The week is only half done and already ProLogis has announced plans for a 220,000-square-foot build-to-suit in Hungary, the purchase of 83 acres in Virginia, and the appointment of a new global executive.UTi (Hungary) Logistics L.L.C. has called on Denver-based ProLogis to develop a 220,000-square-foot facility in Budapest for use as a regional distribution center for a client. The build-to-suit structure will sit approximately 10 miles from Downtown Budapest within ProLogis Park Budapest-Sziget, which currently consists of 870,000 square feet but will reach 1.8 million square feet at full build-out. UTi, a leading supply chain solutions provider that already leases…
BNSF Railway Takes 198 Acres at Dallas Logistic Hub, May Buy 164 More
The Allen Group has announced the sale of 198 acres of land in the Dallas Logistics Hub to BNSF Railway Co., with the additional option agreement giving BNSF the right to purchase an additional 164 acres. The property is located in the cities of Lancaster and Dallas, and provides more than 9,000 feet of rail frontage, representing a portion of the 2.5 miles of BNSF track frontage within the project. No further details of the transaction were available. “There is definitely a lot of momentum with this deal, and it will be one of many we hope to announce over…
Joliet Green Lights Mixed-Use Project
The Joliet, Ill., City Council has approved a development agreement for the Bridge Street Town Centre, a 3.5-acre mixed-use development in that city southwest of Chicago.Plans call for the complex to include retail space, restaurants, a movie theater, office buildings, hotels and housing units.O&S Holdings L.L.C. of Santa Monica, Calif., and Strategic Retail Development of Hollywood, Fla., are the developers. Construction is slated to begin next year, with completion in 2010.The site is near the junction of I-55, which connects Chicago with St. Louis, and I-80, a major east-west artery across northern Illinois. The development plan calls for a new…
Markland Acquires 47 Citibank Branches in $100M Sale-Leaseback
An Irish investment group, which market sources have pegged as Markland Holdings Ltd., has acquired 47 Citibank branches in the New York City metropolitan area for $100 million. The portfolio includes a 156,300-square-foot combination of bank branches and offices, and is leased to Citigroup Global Markets Inc. for 15 years. The properties range in size from 2,000 to 8,000 square feet and are located in Manhattan, The Bronx, Brooklyn, Queens and Staten Island, as well as Westchester, Suffolk (pictured) and Nassau counties. “These were triple-net leases with annual increases, and investors want safety, security and good credit,” Ken Zakin, senior…