the Editors of Commercial Property Executive
CBRE Executives: Soft Landing May Follow Bumpy Flight
New York City–and also national–real estate markets will face challenges into next year, but strong fundamentals will help ease the blow, according to two top CB Richard Ellis Inc. executives. “We really don’t see any wholesale drop in the leasing market,” said John Powers, chairman of CB Richard Ellis’ New York tri-state region. During a briefing Wednesday afternoon at the firm’s Midtown Manhattan office, Powers predicted that the Manhattan office market would avoid the high availability levels that followed the Sept. 11, 2001, terrorist attacks. First-quarter availability in Midtown Manhattan, New York City’s largest submarket, stood at 8.2 percent. By…
Economic Dominoes: is U.K. Next?
Maybe. The Bank of England’s Monetary Policy Committee has just reduced the Bank Rate to 5 percent, marking a .25 decrease from the previous lowered ate of 5.25 percent, which was set in February. However, even in an environment where the credit market is tightening, the commercial real estate industry in the United Kingdom is expected to go relatively unscathed.A 2.5 percent increase in inflation and its anticipated continued increase spurred the change in the rate paid on commercial bank reserves; inflation has been on the rise in the U.K. due to such factors as mounting energy and food prices….
California Wins 4 LEED Gold Ratings
Four California State buildings have earned LEED Gold ratings, the state has announced. The four are in Sacramento ’s 1.6 million-square-foot Capitol Area East End Complex. They house the California Department of Health Care Services and the Department of Public Health.The green push comes as a result of the Governor Arnold Schwarzenegger-initiated Global Warming Solutions Act and the Green Building Initiative. These require state agencies to cut energy use by 20 percent at state-owned buildings before 2015. The initiative also mandates that all new and existing state buildings must fulfill at least the minimum of the LEED Silver requirements to…
AMB Property Pre-Leases 309,000SF Development to 3M in Toronto
AMB Property Corp. has fully pre-leased a 309,000-square-foot distribution facility in the Greater Toronto area in Canada to 3M Canada, a wholly-owned subsidiary of 3M, the company said today.The construction on the AMB Milton 401 Business Park-Building C is scheduled to begin in the second quarter of 2008, with delivery in advance of 3M Canada’s lease commencement in the second quarter of 2010. The property provides access to the nearby Trans Canada Highway and Toronto Pearson International Airport.“3M Canada will consolidate operations into AMB Milton 401 Business Park-Building C because it is strategically located, highly efficient in its design and…
Midland-Odessa Portfolio Gets $130M Funding
Arbor Commercial Funding L.L.C.has announced the $130 million funding through Fannie Mae to acquire 21 properties. The buy totals 3,128 units known as the Midland-Odessa Portfolio in Midland, Odessa, and Longview, Texas. The entity is a wholly-owned subsidiary of Arbor Commercial Mortgage L.L.C. This is the latest in a number of deals for Argus, which just closed three other deals, as reported yesterday by CPN. This latest funding is a 10-year loan amortizing over a 30-year schedule. It carries a note rate of 5.67 percent. Director Jay Porterfield, in Arbor’s full-service Plano, Texas lending office originated the loan. According to…
GE Provides $44M in Loans for Manufactured Homes
GE Real Estate has provided a combination of $44.6 million in loans for the refinancing and acquisition of manufactured home communities by two real estate owners. The first deal was an $18.1 million loan to KDM Development, which the firm used to refinance loans of a trio of existing communities and raise capital for future investments.The communities—Lake Haven in Berlin, Md., Royal Palms in Wilmington, N.C., and Northland Park in Watertown, N.Y.– include a total of 535 homesites. The second transaction was a $26.5 million facility to Global Texas to increase existing GE Real Estate loans on two communities and…
ProLogis Forms $575M JV with India’s K Raheja
ProLogis has entered the distribution market in India through a 50/50 development joint venture agreement with K Raheja Corp, one of the largest real estate developers in India. The venture plans to invest $575 million, approximately 60 percent of which will be leveraged. The move is the latest in ProLogis’ international strategy of geographic diversification–the company currently conducts business in 118 markets across North America, Europe and Asia. “By establishing a presence in the world’s top logistics markets, we have effectively mitigated the impact of any single economy on our overall results,” Abhijit Malkani, head of operations for ProLogis in…
San Diego County Green Lights 900,000SF Redevelopment Project
Lowe Enterprises takes a big step forward with its planned redevelopment of San Diego’s County Operations Center and Annex in Kearny Mesa, Calif., as the San Diego County Board of Supervisors gives the project the thumbs up. Lowe will reinvent the county’s 37-acre complex with the development of a new 900,000-square-foot green office campus. The Board of Supervisors signed off on the project’s Environmental Impact Report and Lowe’s Disposition and Development Agreement. With approvals in hand, Lowe will soon be able to commence work on the Operations Center project, which will be developed in two phases. Once demolition of all but…
Ashkenazy, Carlyle JV Closes on $680M 650 Madison
Ashkenazy Acquisition Corp. and The Carlyle Group have completed the acquisition of Manhattan’s 650 Madison Ave., which at $680 million is the largest single real estate deal of 2008 thus far. The 600,000 square-foot tower was purchased from Hiro Real Estate Co. The building (pictured) is located on the block spanning 59th and 60th Streets, across from the GM building in the heart of the city’s Plaza District. It includes approximately 90,000 square feet of prime retail space including flagship stores of Crate and Barrel and Tod’s. Office tenants include Polo Ralph Lauren’s corporate headquarters, Columbia Presbyterian and several investment…
Letterstone, Starr International Form Eastern Europe JV
Real estate investment fund manager The Letterstone Group and private investment company Starr International Co. have announced a JV to invest in Eastern European real estate, with an initial funding of $157 million and plans to acquire approximately $795 million in assets over the next 15 months.The venture, named LS Real Estate Ventures B.V., plans to invest initially in Hungary, Slovakia and Romania, and later in Ukraine. The properties will consist of a mix of multi-sector investments in existing property, properties with alternative use potential and new-build developments.Letterstone had already been investing in the countries for five years, working with…