the Editors of Commercial Property Executive
Developers Break Ground on $210M Residential, Retail Project in Jersey City
Construction has begun on a $210 million development in Jersey City, N.J., that will feature two 47-story towers with a total of 524 rental apartments and 11,000 square feet of ground-floor retail space. Monaco Towers, developed jointly by Roseland Properties of Short Hills, N.J., and Garden State Developers of Jersey City, had originally been planned as a condominium property but will now offer rental apartments. Monaco South will have 281 units and 223 parking spaces while Monaco North will have 243 units and 187 parking spaces. The towers are being built on Washington Boulevard near the waterfront on a former…
Loan-Extension Picture Could Be a Lot Worse
In the first decline since July in the delinquency rate among U.S. commercial real estate loan collateralized debt obligations, that rate fell from 3.13 percent in October to 2.80 percent in November, according to the latest information from Fitch Ratings.Fitch currently rates 35 CREL CDOs comprising about 1,100 loans and 370 rated securities/assets with a balance of $23.8 billion. “The continued lack of available capital is driving maturity defaults of CRE loans,” Fitch senior director Karen Trebach said in a prepared statement. “However, asset managers are continuing to extend many of these loans, with the extension of two large performing…
ProLogis Announces Leases in Japan, Nevada
ProLogis has pre-leased approximately 190,000 square feet near Tokyo to Arata Co., a wholesale distributor and third-party logistics provider.Construction on ProLogis Parc Zama I, a five-story distribution facility totaling more than 1.2 million square feet and located in the city of Zama, commenced in April 2008. Arata is expected to occupy the space upon completion in June of 2009.This is ProLogis’ second lease with the company. Arata currently occupies approximately 129,000 square feet at ProLogis Parc Funabashi in the city of Funabashi, near Tokyo.The city of Zama is a central logistics hub in Japan’s Kanagawa Prefecture, providing convenient access to…
Fed Cuts Interest Rate
Stocks advanced after the Fed cut a key short-term interest rate to the lowest level on record to a range between zero and 0.25 percent, but the excitement wavered this morning as U.S. stock futures appear to be returning to their dismal status quo today, according to CNNMoney.com. Wall Street firm Morgan Stanley is due to post quarterly results before the market opens with an expected report of big losses on the heels of the Goldman Sachs deeper-than-expected quarterly loss of $2.1 billion reported Tuesday, the report stated. The Washington Post reported that the loss was its first since going…
New Chicago Lease Further Evidence that ProLogis is Alive and Kicking
Even if the generals have a brilliant plan for victory, wheels still need to roll at the front line if it’s all going to mean anything. In the case of ProLogis, time might still have to tell regarding the warehouse/distribution giant’s recovery strategy, but the ground-level activity seems to be rolling forward much as usual. ProLogis today announced a lease of about 174,000 square feet of new distribution space near Chicago to Canon USA Inc., the maker of copiers, printers, scanners, fax machines and other office equipment. ProLogis noted in a prepared statement that Canon now occupies multiple ProLogis distribution…
Cole REIT Announces $2.5B Offering
Cole Credit Property Trust III has kicked off a public offering of up to 250 million shares of common stock valued at approximately $2.5 billion. Net proceeds from the offering will be primarily earmarked for the acquisition of net leased retail properties. The REIT is offering up to 230 million common-stock shares at $10.00 per share. It can also tender up to an additional 20 million common-stock shares with a price tag of $9.50 per share for issuance under its distribution reinvestment program. Cole Capital Corp., a segment of investment firm Cole Real Estate Investments, will manage the 250 million…
Morgan Stanley Posts $2.3B Loss
Yesterday, it was Goldman Sachs. Today it’s Morgan Stanley, posting a $2.36 billion loss in its fiscal fourth quarter, which ended Nov. 30. Much of the loss stemmed from older investments that are still losing money, and reduced revenues unable to balance out these continuing losses, as the company managed to do in previous quarters. The two former investment banks may have the distinction of not being voted off the Wall Street island, but that doesn’t mean they’re making the big bucks they used to. Neither is the hotel business, which proved so profitable in the years following the industry’s…
Hilton Garden Inns to Debut in Saudi Arabia
Hilton Hotels Corp. has unveiled plans to develop 13 Hilton Garden Inns, comprising a total of 2,500 rooms, in Saudi Arabia. The plan will mark the Garden Inn brand’s entry into the Saudi market. Hilton’s partner on the project is Abdulmohsen Al-Hokair Group for Tourism and Development. The first property is expected to open in 2009 in the city of Riyadh. Additional developments will take place over the next five years in cities across Saudi Arabia. Hilton Hotels already operates four properties in Saudi Arabia; three Hilton hotels in Jeddah, Makkah and Madinah, in addition to the 46-all suite The…
Lynd Breaks Ground on First Chicago Property
San Antonio, Texas-based developer Lynd Development Partners is making its first move into the Chicago market with a 300,000-square-foot, 249-unit apartment tower. Designed by Chicago architects Valerio Dewalt Train and located at 161 W. Kinzie St. in Chicago’s River North neighborhood, EnV will be one of the city’s first LEED certified rental buildings. Additionally, building amenities will include a rooftop deck and pool, dog run, fire pit, full kitchen and wine storage lockers. High-tech features will include an automated, 24-hour convenience store, virtual concierge and V-Connect, which allows residents to integrate security and other preferences via iPods or iPhones. The…
Rate Cut Expected Today
Investors await several economic indicators today including the consumer price index and housing starts data as well as news from the Fed regarding interest rates and the central bank, Reuters reported. The Fed is expected to lower interest rates closer to zero and point toward emergency tools it could deploy to end a year-long recession, the report stated. Goldman Sachs is expected to report a quarterly loss of as much as $2.5 billion, hit by the falling value of many of its investments, the report stated. Apart from Goldman Sachs, companies reporting earnings on today include Adobe Systems and Best…