the Editors of Commercial Property Executive
In Wake of CityCenter Suit, Another Vegas Project Looks to Move Forward
As one Las Vegas mega-project hits a snag, the site for a possible new development is set to go up for auction. Just a day after the announcement of a lawsuit brought by a co-developer of the massive CityCenter project against its partner comes word that a 22-acre parcel for a proposed Asia-themed casino resort will be sold at a bankruptcy auction in May.The Dragon City Hotel and Resort site is located in Las Vegas’ Chinatown, three blocks off the city’s famed Strip. The land is being sold at auction by Spring Mountain Wynn Investments L.L.C., with Chartwell Group L.L.C….
ProLogis Pockets $845M, Continues to Make Strides in Debt-Reduction Effort
Action in Asia is proving to be fruitful for ProLogis. The Denver-based industrial REIT has just walked away with $845 million in cash on a $1.3 billion transaction involving the disposition of its operations in China and property fund interests in Japan to GIC Real Estate, the real estate investment company of the Government of Singapore Investment Corp. The sale is just one of many recent steps ProLogis, which saw its stock go as high as $66.58 and dip down as low as $2.20 within the last 12 months, has taken as part of a plan to bolster its balance…
Ernst & Young Report: RE Investors Should Go ‘Back to Basics’
In the midst of economic uncertainty, falling markets and a stimulus package that may or may not help business grow, a new Ernst & Young report on real estate business risk advises property firms to go back to the basics. The 2009 Ernst & Young real estate business risk report, produced in conjunction with strategy consultancy Oxford Analytica, itemized the 10 business risks faced by the industry as ranked by leading sector analysts. Given the risks outlined by analysts in the report, it is time for owners, investors and users of real estate to use the time afforded by this…
Economic Update – Home Prices See First Uptick in a Year
After the surprising announcement earlier this week that existing home sales jumped in February, the housing market got another bit of unexpected news on Tuesday, when the Federal Housing Finance Agency said that housing prices actually moved up a little in January 2009 compared with December 2008. The agency’s House Price Index increased 1.7 percent, representing the first time in fully a year that the index has not moved downward. This is good news, conceivably, but may or may not be a sign of an approaching bottom in the housing market. In a statement Tuesday, the FHFA said as much:…
Still Active Fannie, Freddie Dole Out $53M for M-F Deals
With the finance industry suffering, securing a loan of any size is not as easy as it used to be. But despite the current economy, Fannie Mae and Freddie Mac remain active sources of financing. In one of the agencies’ latest deals, Arbor Commercial Funding L.L.C. announced the funding of three loans totaling $53 million under the Fannie Mae DUS product line. Financing for the three multi-family properties was arranged by Carolina Mortgage Co. in Fayetteville, N.C. The loans included a 288-unit Battleground North Apartments, located in Greensboro, N.C., in the amount of $16.2 million; Eagle Point Village, a 300,000-unit…
Economic Update – Stocks, Housing See Unexpected Jump
After U.S. Treasury Secretary Timothy Geithner detailed plans to haul off about $1 trillion worth of the banking industry’s toxic assets on Monday–euphemistically called “legacy assets” by the government–the equity markets seemed happy about it. And about the fact that bond-fund giant Pimco, as well as BlackRock Inc., Colony Capital and others, have all said they would participate in the plan. Or maybe investors were buying stocks because everyone else is buying. In any case, the Dow Jones Industrial Averages shot upward to the tune of 497.48 points, or 6.84 percent, while the S&P 500 was up 7.08 percent and…
Despite Debt Extension, Many Hurdles Remain for General Growth
Embattled retail REIT General Growth Properties Inc.’s extension on $2.25 billion in debt might buy the company some time, but General Growth is far from out of the woods yet. Still, the good news must have been a welcome change for the firm, which last week missed a payment on $395 million in bonds and had a shopping mall in Louisiana foreclosed upon.
Vegas Woes Continue as MGM Mirage Sued By CityCenter Partner
The credit crunch has caused more than a few hiccups for hotel and casino projects across the country, and Las Vegas has been especially hard-hit. The latest snag in Vegas is the lawsuit against MGM Mirage, developer of the behemoth $8.8 billion CityCenter mixed-use project, which was sued by its joint venture partner, Dubai-headquartered Infinity World, due to financial worries over both the development and MGM Mirage itself. As per a press release from Infinity, the initiation of the lawsuit in Delaware Chancery Court constitutes the company’s effort to protect its rights and the best interests of the CityCenter project…
Green Development Continues to Make Local, Global Strides
The devastating effects of economic turmoil are making the rounds across the world, but the commitment to sustainable development continues to evolve on both a global and local level. Despite funding challenges, investment in eco-friendly building today for financial savings and environmental protection tomorrow is not being brushed aside. Many are tackling the problem from the ground up, like Basking Ridge, N.J.-based Axion International Holdings Inc. and New York City’s Ecological Development L.L.C., who have just entered into an agreement to work together. Axion designs and develops eco-friendly structural building products from 100 percent recycled plastics, while ecological engages in…
Economic Update – Geithner to Unveil PIC Bank Plan
No details until later on Monday, but the latest federal government effort to apply Drano to the credit markets will be called the Public Investment Corp. (to be commonly known as PIC?). PIC will be funded by part of the original $700 billion bailout passed by Congress, along with Federal Reserve and Federal Deposit Insurance Corp. resources, with the aim of sucking up toxic assets from the banking system. If that sounds familiar, it is. It’s like the original intention of the bailout bill as passed, but later abandoned. The government will also try to encourage private investors, especially through…