the Editors of Commercial Property Executive
Fed ‘Vigorous Recession Fighter,’ Says CBRE’s New Chief Economist
Raymond Torto, former principal & managing director of CB Richard Ellis Inc. subsidiary Torto Wheaton Research, has been named CBRE’s global chief economist. In this newly created position, he will direct the company’s worldwide team of commercial real estate market analysts and will speak on macro economic issues in the commercial real estate market. And with the announcement coming only a day after the Federal Reserve dropped the federal funds rate from 4.25 percent to 3.5 percent, Torto certainly has plenty of economic issues on his plate already. Torto (pictured) told CPN that yesterday’s events will only have a minimal…
Starwood Hotels to Pocket $229M in Sale of 3 Assets in Italy
Starwood Hotels & Resorts Worldwide Inc. has just struck a deal with EST Capital to sell three of its hotels in the Italian markets of Venice Lido and Asolo for $229 million. Among the three properties involved in the transaction are Westin Excelsior and the Hotel Des Bains on the island of Venice Lido, as well as the Villa Cipriani in Asolo. Additionally the binding agreement encompasses an unspecified amount of office, retail, and storage space also in Asolo. “This transaction is part of a strategy already announced to operate an asset right portfolio of hotels with the right balance…
JV Takes Second Houston Office Property
In the hot Houston market, Chase Merritt and joint venture partner Pacific Coast Capital Partners L.L.C. have taken its second asset in the region with the 424,000-square-foot mixed-use Four Corners in Houston for an undisclosed price. In November, the joint venture acquired West Loop I and II, two Class A office buildings totaling 314,000-square-feet, located in Houston’s Bellaire submarket. “Historically, Houston has been a strongly cyclical market, because of its ties to the energy industry,” Chad Horning, president & CEO of Chase Merritt, told CPN in November. “But more recently, that’s been mitigated by economic diversification, and the internationalization of…
Fed’s Emergency Rate Cut is Biggest in 23 Years
The Federal Reserve slashed the federal funds rate by three quarters of a percentage point this morning, the largest single rate cut since October of 1984. The move by the Fed to drop the rate from 4.25 percent to 3.5 percent came at an unscheduled meeting Tuesday, just over a week before the next scheduled meeting on Jan. 30. The Fed also lowered the discount rate, or the rate at which banks can borrow from the central bank, by three quarters of a point, to 4.0 percent. Gary Gabriel, managing director of the capital markets group at Cushman & Wakefield…
W. P. Carey Acquires Plastic Maker’s Facilities in $87M Sale-Leaseback
Investment firm W. P. Carey & Co., through its non-traded REIT affiliate, has acquired three facilities totaling 1.4 million square feet from Berry Plastics Corp. for about $87 million. All the facilities are being leased back to Berry Plastics on a long-term basis.The deal includes Berry Plastics’ headquarters and its largest production facility in Evansville, Ind., a factory in Baltimore, Md., and another facility in Lawrence, Kan. New York-based W. P. Carey and Berry Plastics inked a similar sale-leaseback transaction in 2003, though not as large, totaling $33 million.Berry Plastics makes a diversity of plastic packaging products, including containers, closures,…
Crescent Hotels to Go on $600M Shopping Spree in 2008
Having purchased $400 million worth of properties last year, Crescent Hotels & Resorts is upping the ante for 2008 with plans to make $600 million in acquisitions. The Fairfax, Va.-based company will finance the purchases by raising equity through a new fund. In 2007, Crescent acquired 19 hotels, and this year the firm has wasted precious little time in snatching up additional properties. During the first week of 2008, the company bought the legendary 307-room Georgian Terrace Hotel in Atlanta; the 117-room Hotel Carteret, located just minutes from Manhattan in Carteret, N.J.; and the Baymont Inn & Suites International Drive/Orlando,…
Report: Commercial Real Estate Still Attractive Despite Credit, Single-Family Woes
Maybe old dogs can indeed learn new tricks. A report released today by Deloitte L.L.P. suggests that the commercial real estate industry has learned from past booms, and that the lack of overbuilding compared with previous cycles is a factor in keeping commercial properties attractive as an asset class. The Deloitte report, 2008 Real Estate Capital Markets Industry Outlook: Top Ten Issues, notes that although commercial returns are cooling and will probably be noticeably lower this year than last, “when compared to other investment categories (stocks, bonds, etc.), commercial real estate remains an attractive investment vehicle due to its stability…
Canadian REIT Wraps Up $121M in Apartment Purchases
Toronto-based Canadian Apartment Properties Real Estate Investment Trust has closed the disposition of a group of 10 apartment communities in metropolitan Toronto and Montreal, and Niagara. TransGlobe Property Management acquired the assets, which account for an aggregate 1,478 units, for just over $121 million. CAP REIT had identified the properties as non-core assets, having maximized their value. The proceeds from the sale will be applied toward the reduction of the company’s Acquisition and Operating Facilities–through which it will continue to purchase properties in Western Canada and other thriving markets across the country–and will also be used to fund its Normal…
Parkway Properties Takes Orlando’s Gateway Center for $55M, Nears Completion of $500M Fund
Parkway Properties Inc. has acquired the Gateway Center, a 16-story, 228,000-square-foot, Class A office tower in Downtown Orlando for $55 million through its Parkway Properties Office Fund L.P.Parkway president & CEO Steven Rogers said two more acquisitions are expected this quarter to complete the $500 million investment fund. He said only that the purchases would involve two other office properties for a total combined purchase price of over $180 million. The closings are expected to occur in the first quarter. “We are pleased with our investment in this high-quality asset in the Orlando CBD near our Citrus Center building,” Rogers…
Management Matters with Mike Myatt: 6 Tips to a Better Employment Contract
I recently received an e-mail from a CEO who was unceremoniously “asked” to resign by his board of directors. He asked me to author a piece on the value of employment agreements in hope of preventing other CEOs from unnecessarily subjecting themselves to a forced resignation scenario. So, in this week’s column I’ll outline a few items meant to help you protect your career longevity. At the senior executive level jobs are both harder to come by and harder to keep. There is simply more at risk by the time you reach the C-suite than at any other point in…