the Editors of Commercial Property Executive
Lending Grew During Q4, Says Mortgage Bankers Association
A dearth of financing for acquisition and development has plagued commercial real estate and the general economy for the better part of two years. But a study by the Mortgage Bankers Association published late last week suggests that commercial real estate lending actually started increasing at the end of 2008. “Counter to what many expected, investors increased their holdings of commercial and multi-family mortgages during the fourth quarter,” said Jamie Woodwell, MBA’s vice president of research, in a statement accompanying the report. “Banks, thrifts, Fannie Mae, Freddie Mac, life insurance companies and other lenders extended additional credit to the market…
Amid Big Shifts, California Markets Top ’09 Marcus & Millichap Retail Index
Limited supply in historically tight locations is the most attractive short-term combination for retail investment markets, according to the annual ranking compiled by Marcus & Millichap Real Estate Investment Services Inc. In a striking finding, the East and West coasts landed all but one of the index’s top 10 spots. Despite a slew of major changes on the index, all but two of the top 10 markets are making a repeat appearance from 2008.To arrive at its rankings, which indicate relative supply and demand for 43 major markets during the next year, Marcus & Millichap considers a battery of retail…
Experts Mull Sale Possibilities for AIG Headquarters
Beleaguered insurance giant American International Group Inc., which announced this week that it would put its Downtown Manhattan headquarters up for sale, will likely receive significantly less in sales proceeds than if it made this move two years earlier. The 66-story, 775,000-square-foot building at 70 Pine Street is an “architectural icon,” said Richard Baxter, executive vice president of Cushman & Wakefield Inc. AIG is also selling its 16-story, 279,000-square-foot building at 72 Wall Street. Icon or not, however, the 775,000-square-foot building is unlikely to command the price it would have fetched in 2006 or 2007. Whereas the building will likely…
Plagued by Loss, Greenbrier Files for Chapter 11, Pursues $130M Sale to Marriott
Ghastly economic conditions have claimed another victim in the hospitality industry. The Greenbrier Hotel Corp., owner of the historic Greenbrier resort in White Sulphur Springs, Va., has just filed for Chapter 11 bankruptcy protection and entered into an asset purchase agreement for Marriott Hotel Services Inc. to acquire the luxury property for $60 million to $130 million, to be paid within a seven-year period. In an effort to secure funds to continue The Greenbrier’s operation for the time being, GHC included in the filing a request for approval of financing from railroad concern CSX Corp., GHC’s parent company. CSX may be…
On Heels of Sears Tower Deal, Chicago Leases Continue
A week after Chicago’s most famous office property got a new tenant and a new name, the city’s office market continues to make headlines this week, as Tishman Speyer inks a pair of tenants to large leases totaling more than 240,000 square feet. Despite the spate of leases, though, uncertainty pervades in the market. In the first Tishman lease, Hinshaw & Culbertson L.L.P. extended its lease for 153,000 square feet at 222 North LaSalle St. through May 2018. The firm has been headquartered at the property since 1987. Meanwhile, FTI Consulting Inc. signed a lease for approximately 91,200 square feet…
Economic Update – Citigroup Renovations Inspire Grumbles
It’s a mark of the times that a corporate real estate property management story is headline news, namely the report that Citigroup Inc. plans to spent about $10 million for executive office renovations. In ordinary times, that would be as newsworthy as the paving of a side street in lower Manhattan, but the backlash over corporate excess has put such expenditures by bailout beneficiaries under a high-powered microscope.Citigroup was quick to issue a statement about the renovations: “Senior executives in our corporate headquarters are moving from two floors to smaller, simpler offices on a single floor,” it said. “Based on…
Originating Two $64M Loans, Capmark Keeps Freddie Mac Financing Coming
Beleaguered Freddie Mac is still making loans and Capmark Finance Inc., closing deal after deal, is actively paving the way for its clients to be on the receiving end of the funds. In separate transactions, the real estate loan servicer recently originated a total of approximately $63.9 million in permanent debt for two multi-family properties located in Philadelphia and Pembroke Pines, Fla. Acting on behalf of BR Penn Realty Owner L.P., Capmark secured $33 million for the refinancing of the 265-unit apartment community at 640 N. Broad St. (pictured) in Philadelphia. The ownership acquired the property, originally erected in 1913 as…
Economic Update – Long-Term Optimists Making Real Estate Plans
The Federal Reserve Bank of Chicago reported on Wednesday that manufacturing activity in the Midwest dropped to its lowest level since 1994, largely reflecting the sickly condition of the automotive industry. Compared to a year ago, the output of the Midwest region–which includes Michigan, Illinois, Indiana, Iowa and Wisconsin–was down 42.2 percent, compared with a 24.3 percent manufacturing decline nationwide. The slowdown is bound to further weaken demand for warehouse/distribution space, both in the Midwest itself and in other major industrial markets.On the whole, owners of industrial and other commercial property may indeed be in “survival mode,” a term the…
Hampton Hotels Latest in Hospitality Sector to Grow
The hospitality sector continues to move forward, with Hampton Hotels the latest to tout its progress. For Hampton, it is the opening of 152 new properties in 2008–the second largest number of hotel openings within a single year during Hampton’s 25-year history. The firm is not stopping there, with plans to add another 150 hotels to its portfolio in the coming year. And Hampton is far from only chain with expansion plans despite the struggling economy.On March 11, CPN reported that InterContinental Hotels Group (IHG) partnered with Crocus Group to build the world’s biggest Holiday Inn in Moscow as well…
AMB Lures in Tenants as Canadian Leasing Market Sees Activity
The gloomy economy has not prevented AMB Property Corp. from luring in tenants, despite widespread downsizing among companies. On Wednesday, the firm announced it has leased approximately 250,000 square feet of space at its AMB Millcreek Distribution Centre in Toronto to a leading global transportation services and logistics management company. This lease, in conjunction with the previously announced 225,000-square-foot lease to Hershey Canada Inc., brings the project to full occupancy.”This new lease at AMB Millcreek Distribution Centre is our fifth lease with this customer in North America and speaks to the quality of our portfolio and the strength of our…