the Editors of Commercial Property Executive
Prime Retail to Debut $300M Expansion of Orlando Shopping Center
The former Prime Outlets Orlando will emerge from its $300 million makeover as the 778,000-square-foot Prime Outlets International Orlando next week. Owner Prime Retail upgraded and expanded the property, which now holds the distinction of being the largest outlet center in the southern region and the biggest in the nation.Prime Outlets International Orlando sits in a coveted and well-traveled spot surrounded by the major tourist attractions such as Walt Disney World and Universal Studios. Prime Retail came into possession of the property in 2006 when it acquired the 700,000-square-foot Belz Factory Outlet World and the 200,000-square-foot Belz Designer Outlet Centre…
Pair of SoCal Hotels Trade for $80M
R.D. Olson Development has sold two hotels in Southern California to Apple REIT 8 for a combined $80 million. R.D. Olson purchased the hotel sites, Marriott Residence Inns located in Burbank and Oceanside, in 2005 and 2006, respectively, and completed development last year. Since their opening, they have experience consistently high occupancy rates. The five-story Burbank property has 166 suites, while the Oceanside property has 150 suites. R.D. Olson currently is developing seven other projects, mainly in Southern California, an area considered a very attractive market for hotel development because of its myriad tourism interests.The $2.5 billion JW Marriott Hotel…
Uncertain Times for the Net Lease Market
The first quarter 2008 Net Lease Market Report by Northbrook, Ill.-based Boulder Net Lease Funds L.L.C. characterizes the current state of the market in the following unusual terms: “The market,” it asserts in the first paragraph, “is difficult to make sense of at the moment.” On one hand, the economy is either in a recession or about to go there; oil prices are setting record highs seemingly every week; demand for real estate is flat or down; and debt financing is hard to get. On the other hand, “asking cap rates appear to be shifting towards a level where deals…
$145M Construction Loan Set for Denver Tower
The Dallas office of Holliday Fenoglio Fowler L.P. has announced that it arranged a $140 million construction loan for 1800 Larimer (pictured). The building is a 496,000-square-foot Class A, Platinum LEED pre-certified office development in Denver, Colo. The 22-story office tower is slated for completion in 2010. It is approximately 70 percent pre-leased to tenants including Xcel Energy, Frederick Ross Company and Citywide Bank. HFF senior managing director Trey Morsbach and associate director Clint Corn worked exclusively on behalf of Westfield Development Partners to secure the 42-month, adjustable-rate loan through Wachovia Bank. Westfield Development Partners is the development arm of…
Tenet Healthcare Plans Sale of 34 Properties Nationwide
After losing $31 million in the first quarter of the year–compared to a net income of $75 million in the first quarter of 2007–Dallas-based Tenet Healthcare Corp. today released details of its plan to sell 34 medical office buildings across the country. The portfolio totals 2.4 million square feet of rental space throughout properties located throughout the Southeast, as well as Texas, Florida and California. Tenet retained Jones Lang LaSalle to assist in the promotion, marketing and sale of the portfolio. The buildings are being offered as a single portfolio or as separate, regional sub-portfolios to qualified institutional real estate…
Simon to Sell $1.5B in Senior Notes
In a time when borrowing can be a daunting task, even for entities with sterling credit histories, companies are turning to other means to raise the capital they need, according to industry experts. Pursuing just such a financing strategy, retail property giant Simon Property Group unveiled plans today to sell $1.5 billion of senior notes of its majority-owned partnership subsidiary, Simon Property Group L.P. Indianapolis-based Simon isn’t alone, even among major real estate companies. Late last month, for example, industrial property specialist ProLogis announced its intention to sell a total of $700 million worth of convertible senior notes and fixed-rate…
Westcore Expands in Europe, Plans to Spend $100M
Nearly two years after entering the European market, California-based Westcore Properties said this week it is allocating $100 million of capital there to acquire, develop and operate regional airports and other commercial real estate projects associated with airports. The privately-held company has opened Airport Development Partners SA, an affiliate that will be headed by Thomas Frankl, who has 20 years of airport industry experience and lobbying at an international level, according to a Westcore release. ADP will have its main office in Lausanne, Switzerland, where Westcore has its European headquarters, and a project office in Poland. Zbig Labaj, an airport…
Treeline Sells Nassau County Office Building for $65M
An entity controlled by The Treeline Cos. has sold One Old Country Road in Carle Place, N.Y., a five-story, 315,000-square-foot office building, for $65 million. The seller was Treeline 1 OCR L.L.C., the buyer was CLK/HP One Old Country L.L.C. and a team composed of Jeffrey Dunne, Steven Bardsley and Rikki Lawrence of CB Richard Ellis Inc.’s New York institutional group and Bruce Nelson of CBRE’s Long Island office represented the seller and procured the buyer. “We divested ourselves of this property because it no longer was part of our strategic plan,” Frances Schor, president of the Treeline Cos., said…
$2B Fund to Capitalize on Transitioning RE Market
A new private equity fund, CDC Real Estate Opportunity Fund I, has been established to capitalize on certain advantageous circumstances that may arise in the market as a result of the credit crunch. Formed by the head of Vienna, Va.-based Clemente Development Co. and Clemente L.L.C., the fund has commitments totaling $200 million with the potential to leverage as much as $2 billion. Timing was behind the creation of the office property-focused CDC Fund I, according to C. Daniel Clemente, chairman & CEO of Clemente Development. He predicts that underwriting requirements will further tighten and real estate asset values will…
$100M Business Park Planned for Suburban Chicago
A 50-acre site in St. Charles, Ill., has been designated for the development of what will ultimately be a mixed-use business complex less than an hour outside of Chicago. JCF Real Estate is behind the the Corporate Reserve of St. Charles, and expects to invest $100 million to realize the project, which has been designed to offer an aggregate 600,000 square feet of Class A office space. JCF recently wrapped up the acquisition of the land that will become home to the Corporate Reserve, having paid seller Cardinal Industries just under $12 million for the property, which sits in a…