the Editors of Commercial Property Executive
Economy Watch: Blackstone Takes Amusement Parks
It seemed like an announcement from the good old days (2006, say): Blackstone Group L.P. is buying a sizable chunk of real estate. But it was in fact on Wednesday when the buyout giant told the world that it was going to spent some $2.7 billion to buy Anheuser-Busch InBev NV’s amusement parks.
Economy Watch: MGM Cuts Condo Prices
In an effort to keep buyers from wriggling out of their deals, and as a simple acknowledgment that the luxury condo market just isn’t what it used to be, MGM Mirage and its partner Dubai World are slashing prices for condos at their City Center development in Las Vegas by 30 percent.
Northstar Makes 370,000SF Distressed Play Near Houston
Northstar Commercial Partners has acquired a 370,000-square-foot distribution center in Sugar Land, Texas, near Houston.
Russian Equity Partner Comes Aboard on $4B Atlantic Yards Project
The $4 billion Atlantic Yards mixed-use development–the centerpiece of which will be the Barclays Center sports and entertainment arena, future home base of the NBA’s Nets team–has new financial backing. Developer Forest City Ratner Cos. Inc. and Nets Sports and Entertainment have just signed a letter of intent to form a strategic partnership with an affiliate of Moscow-based international private investment fund Onexim Group for the development of the 22-acre project. The multi-faceted deal calls for Onexim to invest $200 million.
ProLogis Signs ITS to 176,000SF Reno Lease Renewal
Global industrial property REIT ProLogis has signed a lease renewal for 176,000 square feet of distribution space in Reno, Nev., with ITS Logistics, a third-party logistics provider.
Anticipating Demand for Mixed-Use, DC Selects Team for 510,000SF School Redevelopment Project
The real estate sector in Washington, D.C., has suffered blows from the economic downturn and credit crunch just as other major cities have, but that is not preventing District officials from making plans to capitalize on widely anticipated demand down the road. The city has just chosen a team involving Stanton Development Corp. and EastBanc Inc. to spearhead the redevelopment of the former Hine Junior High School in the Capitol Hill Historic District into a 510,000-square-foot mixed-use destination.
Ventas Wins Lawsuit Against HCP; Awarded $101M in Damages
Healthcare REIT Ventas Inc. has prevailed in its lawsuit brought against healthcare REIT HCP Inc. regarding Ventas’ $2 billion acquisition of Toronto, Ont.-based Sunrise Senior Living REIT in April 2007.
While Hotel Investment Activity Languishes in the U.S., Market Remains Viable in Brazil
Plagued by the global recession that has slashed both business and pleasure travel, the hotel market is suffering on an international level and investors have backed away from buying or building in most locations, with a few exceptions–like Brazil. According to a new report by real estate services firm Jones Lang LaSalle Hotels, the positive long-term growth forecast for Brazil is popping up on the radar of those who are in the position to invest. Brazil’s hotel market hasn’t gone unscathed in the widespread economic downturn, however, it continues to have comparatively good numbers and desirable fundamentals. Devaluation of the…
Economic Update – CRE Defaults Head for High Ground
A new report by Real Estate Econometrics, based on FDIC data, puts the commercial real estate loan default rate at its highest level in more than a decade and a half, at least those loans held by regulated deposit-taking institutions—banks and thrifts, for the most part. The default rate soared from 1.62 percent in the last quarter of 2008 to 2.25 percent in the first quarter of 2009. That rate doesn’t include defaults on loans associated with multi-family rental properties, which Real Estate Econometrics put at 2.45 percent in the first quarter of 2009, up 68 basis points from the…
AIG Headquarters Sale Makes Splash in Quiet Manhattan Investment Market
With rumors circulating of a sale price around $100 per square foot, the sale of the 66-story American International Group headquarters in Lower Manhattan likely set the bar for the biggest sale in the area market thus far in 2009.Youngwoo & Associates (YWA), a New York-based investment and development firm, together with Kumho Investment Bank (Kumho), entered into an agreement to acquire the AIG building, 70 Pine Street (pictured), and an adjacent office building, 72 Wall Street. The two buildings will total 1.4 million rentable square feet in the heart of Manhattan’s Financial District. YWA and a Kumho consortium went…