the Editors of Commercial Property Executive
Trump Entertainment Lost $198M in 2007
Trump Entertainment Resorts Inc. today announced a net loss of $198.2 million ($6.38 per share) for all of 2007 on revenues of $988.2 million. By comparison, the company recorded a net loss of $18.5 million on revenues of $1 billion for 2006. For the fourth quarter of 2007, the company lost $183.2 million on revenues of $228.6 million. The 2006 fourth quarter numbers show a loss of $9.7 million on $244.2 million in revenues. Attributed to the recent introduction of gaming in Pennsylvania, a partial smoking ban in Atlantic City, and weakness in both the economy and credit markets, Trump…
Health Care REIT Offers $124M in Common Stock
Health Care REIT Inc. has offered 3 million shares of common stock at $41.44 per share, for an estimated total gross proceeds of $124.3 million. A 30-day option to the underwriters to purchase up to an additional 450,000 shares to cover over-allotments, if any, has the potential to bring total gross proceeds to $143 million. The company has announced that it will use the net proceeds from the offering “to invest in additional health care and senior housing properties,” according to a prepared statement, and pending that use, to repay borrowings under its unsecured line of credit. “We are targeting…
Work Gets Underway on $850M Mixed-Use Project in Suburban Los Angeles
Development of Avalon at South Bay, a mixed-use retail and residential project in Carson, Calif., moves closer toward realization as LNR Commercial Property Group and Hopkins Real Estate Group embark on construction of the $850 million project at a former landfill site.With a location about 20 miles from Downtown Los Angeles in the South Bay area, Avalon will occupy 168 acres off of one of Southern California’s most vital thoroughfares, the 405 freeway. The property will feature in excess of 1 million square feet of retail space, over 1,300 residential units and 300 hotel rooms. Tetra Tech Inc. has been…
Maguire Still Looking for Way Out of Money Troubles
Southern California office landlord Maguire Properties has decided to extend its “review [of] strategic alternatives,” according to a statement it issued this morning.In December, the Los Angeles-based REIT had formed a special committee of independent directors to explore what to do in light of its difficulties, up to and including selling the entire company, and it seems that the committee will now continue its review.A number of bids were expected early this month from parties interesting in taking the REIT private, include a group led by company founder and long-time CEO Robert Maguire. It isn’t clear from the statement whether…
Coalition Urges Senate to Extend Energy Incentives
A collation of more than 100 retailers, manufacturers, trade and groups and advocacy organization called on the U.S. Senate yesterday to pass bipartisan legislation that extends renewable energy and efficiency tax credits that have already expired or will expire at the end of the year, in hopes that the incentives would strengthen the renewable energy industry and expand the market for energy-efficient products. Historically, Congress has extended clean energy tax incentives in only two-year increments, creating a boom-bust cycle that impedes industry development, the collation said, noting that an ideal Senate tax incentive package would extend incentives for wind, solar…
NPR to Build 400,000SF Headquarters in D.C.’s NoMa Submarket
In a boon to Washington, D.C.’s emerging NoMa submarket, National Public Radio has decided to stay in the city and build a new 400,000-square-foot headquarters at 1111 North Capitol St. NE. The broadcast and digital media company will renovate the 165,000-square-foot historic C&P telephone warehouse it acquired from J Street Development into a 10-story office building in excess of 400,000 square feet. The building is currently being used as warehouse space by the Smithsonian Institution. Economic development officials in the surrounding jurisdictions with lower land values have been aggressively courting the organization; to help level the playing field, the District…
New Partnership Kicks Off with 1.8MSF Mixed-Use Project in Scottsdale
Macerich Partnership L.P. and DMB Associates Inc. have just formed a regional alliance for the development of commercial real estate projects and are initiating the partnership with One Scottsdale, an upscale retail and lifestyle project in Scottsdale, Ariz. that DMB originally commenced as a solo endeavor. One Scottsdale, which will cost upwards of $1 billion at full build-out, will encompass 120 acres in the Scottsdale Road corridor. Macerich-DMB is focusing its efforts on the multi-phase development’s 1.8 million-square-foot retail segment that will occupy 55 acres of the site. Ultimately, 1,100 residences–including urban estates and condominiums–and as many as 400 boutique…
Panel Sees Investment Opportunities in CMBS
A panel of CMBS investors convened by the Commercial Mortgage Securities Association–CMSA–Tuesday in New York said investment opportunities still exist in commercial mortgage-backed securities due to positive sector fundamentals. It concluded that there is a great difference between the commercial and single-family residential sectors, which continues to be rocked by the subprime meltdown. Indeed, widening spreads on CMBS has provided a major investment opportunity, said Kent Born, senior managing director of PPM America. PPM America has been a big buyer of Super Senior AAA bonds, particularly in the last half of 2007 and into this year, and the widening spreads…
NetLease Q & A: JLL’s Rudy Talks Sale-Leaseback
Among many other kinds of real estate deals, Jones Lang LaSalle Inc.’s Capital Markets Group is an active player nationwide in sale-leaseback transactions. Last week, for example, JLL managing director Kenneth Rudy, along with managing director Michel Seifer, wrapped up a deal in which energy giant ConocoPhillips bought Sun Microsystems Inc.’s StorageTek 432-acre campus in Louisville, Colo., for about $58.5 million, with JLL representing Sun, who is leasing the campus back.As sale-leasebacks go, the deal is fairly short-term – Sun will be moving out of the campus steadily throughout 2008 – but the deal nevertheless excited a lot of interest…
500,000SF Retail Outlet Center Planned for Dallas Suburb
Despite consumer spending concerns, Prime Retail plans to start construction later this year on an almost 500,000-square-foot outlet center in the Dallas suburb of Grand Prairie, Texas, which was ranked sixth nationwide in population growth rate for cities of 100,000 or more by the U.S. Census. In October, Grand Prairie city officials approved a contract with Prime Retail. Recently, the development agreement, which also includes off-site improvements such as roadway reconfiguration and revamped traffic patterns for the new 64-acre site, was signed into effect. Financials for the project were not disclosed. Prime Outlets-Grand Prairie will feature 485,000 square feet of…