the Editors of Commercial Property Executive
JV Joins Crowd Looking at Distressed Asset Acquisition
Preparing for the recovery of the commercial real estate industry, a joint venture called Cofinance-RiverOak Realty Partners formed with a goal of gathering “opportunistic real estate acquisitions” in the Northeast corridor from Boston to Washington. The joint venture is the combination of Cofinance Inc. of Hackensack, a subsidiary of Cofinance Group of Luxembourg, and RiverOak Investment Corp. L.L.C. of Stamford, Conn. The new entity is well-funded, ready to make deals and currently exploring potential acquisitions of multifamily, office, retail, industrial and hotel projects, according to information released by the joint venture, with special emphasis placed on distressed situations requiring intense…
Moss & Associates Completes $106M Florida Tower
Moss & Associates finished construction of the CityPlace South Tower (pictured), a $106 million mixed-use development in West Palm Beach, Fla.The 20-story condominium tower, developed by The Related Group, offers 380 units and 40 private villas, as well as 9,300 square feet of street-level commercial and retail space. An adjoining 8-level parking structure with 685 spaces is topped by a 22,900-square-foot recreation deck that features resort-style pool and spa. The property is located in downtown West Palm Beach across from the CityPlace mixed-use center, the Kravis Performing Arts Center, and east of the Palm Beach County Convention Center. The project…
In Challenging Hotel Sector, Some See Opportunities for Growth
With the U.S. economy battered by the credit crisis and jobs continuing to evaporate, a somber mood permeates the Americas Lodging Investment Summit in San Diego. But while the recession will continue to suppress both leisure and business travel, some hotel companies see this down period as an excellent time to do business while their competitors sit on the sidelines. Concord Hospitality Enterprises is continuing to develop hotels, and recently secured a $13.4 million loan to build a 124-room Courtyard by Marriott in Pittsburgh, a market that is outperforming many cities in the U.S., in terms of occupancy. “Surprisingly, Pittsburgh…
Long Island Center Sells Despite Debt
Selling a retail property–or any property, for that matter–with a big debt attached is no simple feat in the current real estate climate, but Sperry Van Ness has managed to do just that. Acting on behalf of Stillwater Capital and partners, the real estate services firm closed the sale of the 131,900-square-foot Voice Road Plaza in Carle Place, N.Y., to a 1031 multi-family investor for just over $36.2 million, including the assumption of a $23 million mortgage. Occupying 8.3 acres on Long Island, Voice Road Plaza was developed in 1951 and renovated in 1996. In December 2006, Stillwater, along with…
Financial Market Update: M-F Sector Sees Rent Growth
As the financial markets and economy continue to struggle, the multi-family real estate sector remains relatively healthy. According to Marcus & Millichap Real Estate Investment Services, rental growth for multi-family properties nationwide grew 3 percent in 2008, and rental growth is expected to increase by about 1.5 percent this year. Occupancies nationwide stood at about 94 percent last month, and Marcus & Millichap is predicting a drop in that figure of only about 1 percent in 2009. None of that makes multi-family finance deals easy, however. “There’s no such thing as a routine deal any more, not in the current…
AT&T Renews 171,400-SF Lease in Chicago
AT&T signed a long-term renewal for 171,386 square feet at 350 North Orleans Street in Chicago. The firm is the largest tenant in the building.Jones Lang LaSalle represented the tenant. CB Richard Ellis Inc. represented the owner, Mart Properties, a subsidiary of Vornado Realty Trust.AT&T had other available choices to consider before renewing at 350 North Orleans St., also known as the Apparel Center. “Working closely with AT&T’s Transaction and Asset Management groups, we evaluated other space in AT&T’s existing leased/owned portfolio as well as additional opportunities in the market,” George Kotrogiannis, senior vice president with Jones Lang LaSalle, said…
PNC Stays Active in Turbulent Times, with Deals Like $214M for Jersey M-F
Despite the turbulent times, big real estate loans are still being made and Pittsburgh-based PNC is among those that are actively doling out financing. PNC Real Estate Finance has arranged a $214 million construction loan for The Monaco, a luxury apartment project in Jersey City, N.J., with PNC Capital Markets L.L.C. leading the syndication of the deal with six other banks. Monaco North Urban Renewal L.L.C.–a joint venture involving Roseland Property Co., Prudential Insurance Co. of America, Garden State Development Inc. and Hartz Mountain Industries Inc.–was the recipient of the three-year loan. Roseland is the developer for the joint venture…
ProLogis, OHL Extend Relationship with 11th Lease Agreement
Tennessee-based third-party logistics provider OHL has signed a deal to lease more than 147,000 square feet of recently completed distribution space in Houston from ProLogis for an undisclosed amount. OHL will occupy the space at ProLogis NorthPark, located along Interstate 45, north of Beltway 8. The lease agreement marks the 11th between the two companies; OHL now occupies approximately 2.8 million square feet of distribution space with ProLogis in various locations across the United States. Additional tenants at ProLogis NorthPark include Anna’s Linens, Proinlosa Energy Corp., Cyclone Enterprises and Labrada Bodybuilding Nutrition. The distribution park is made up of approximately…
Home Prices Continue to Slide
The latest S&P/Case-Shiller Home Price Index, which tracks housing prices in 20 major U.S. metro areas, fell 18.2 percent year-over-year in November, the largest drop since the creation of the index 21 years ago. Certain markets took the largest hits. In fact, it was a case of rounding up the usual suspects: Phoenix, Las Vegas and San Francisco have seen declines since this time last year of more than 30 percent. Miami and Los Angeles saw drops in the high 20s. All this is bad news for those who bought houses two or three years ago, especially upper-end dwellings acquired…
Existing Home Sales See Uptick in Places
The National Association of Realtors reported Monday that December existing home sales nationwide did not, in fact, decline as expected. The number of home sales was up 6.5 percent to a seasonally adjusted annual rate of 4.74 million. The reason why might lie in a combination of low mortgage rates, for those borrowers who can get mortgages, and geography. The Western states, which saw the most precipitous drop in prices since the housing bubble burst, saw existing-home sales rise 13.6 percent. The Northeast, by contrast, saw a drop in sales of 1.4 percent, which may hint that asking prices are…