the Editors of Commercial Property Executive
Report Sees Gloomy 2009 for SoCal CRE
Business closures and slowing trade will negatively affect the office and industrial sectors well into 2009 in Southern California, according to a report released today by the Casden Forecast at the University of Southern California Lusk Center for Real Estate. The report found that the pendulum has swung from landlords to tenants for the first time since 2003. The combination of an abundance of office space and slackened demand has put downward pressure on rents throughout the region, and the report sees high vacancy rates and reduced demand through the end of next year. In Los Angeles County, the large…
UrbanAmerica Closes on $485M GSA-Anchored Portfolio
In its largest-ever single transaction, UrbanAmerica L.P. has acquired a 3.1 million-square-foot portfolio of 13 office buildings and one strategic distribution center for $485 million. Although the seller was not officially disclosed, press reports from last July, when the deal was initially announced, indicate that the seller was Rubicon Capital America L.L.C., of Syndey. The portfolio is 98.2 percent leased overall and is 93 percent leased to the federal General Services Administration. The properties’ locations are primarily in larger urban markets: Washington, D.C.; Philadelphia; Boston; Sacramento; San Diego; Houston; Denver; Kansas City, Kan.; Providence, R.I.; Burlington, N.J.; Norfolk, Va.; Suffolk,…
ProLogis Leases 118,500 SF near Columbus
ProLogis has leased approximately 118,500 square feet near Columbus, Ohio to Health Care Logistics, a distributor of unique and hard-to-find healthcare products.Capital Park South Distribution Park is located near the intersection of Interstate 270 and Highway 62 in Grove City. Current ProLogis customers at the distribution park include FedEx, Office Depot, Nippon Express and Workflow One.This is Health Care Logistics’ second lease with ProLogis in Ohio. The company currently occupies a 108,470-square-foot facility in a neighboring distribution center. a “Columbus’ location in the heart of the Midwest remains one of the most attractive attributes of the industrial market here,” Brian…
Automakers’ Bailout Hopes Fizzle, World Index Falls in Response
The Senate’s refusal to bail out General Motors and Chrysler led to consequences felt worldwide as stocks tumbled around the world and the dollar slumped threatening to deepen the global recession, Bloomberg reported. Treasuries rallied and yields fell to record lows. The MSCI World Index lost 1.3 percent to 880.41 as of 9:43 a.m. in London after senators voted down the bill to provide $14 billion of emergency funds for General Motors Corp. and Chrysler L.L.C., according to Bloomberg. GM plunged 28 percent in Germany, while Honda Motor Co. and Daimler AG sank more than 6 percent. The dollar fell…
General Growth Refinances $900M in Debt, Still Endures Finance Hurdle
Struggling mall operator General Growth Properties Inc. had refinanced nearly $900 million in mortgage loans, but was still unsure if it could get an extension from lenders for another $900 million in debt on two Las Vegas properties due the same day.General Growth completed approximately $896 million of mortgage loans with maturity rates ranging from five to seven years. The company said proceeds were used to retire a $58 million bond issued by The Rouse Co. L.P., maturing Thursday, Dec. 11. Proceeds were also used to refinance about $814 million of mortgage debt scheduled to mature in 2009. General Growth…
Silverstein Wins Arbiter’s Nod in WTC Construction Dispute
Settling a dispute over construction conditions at Manhattan’s World Trade Center, an arbitration panel has ruled that the public agency that owns the site has not finished preparatory work necessary for construction of two office towers. The decision will require the Port Authority of New York and New Jersey to pay developer Silverstein Properties Inc. millions of dollars in additional penalties because progress on the towers is being hampered. But both the agency and the developer also won high marks from the panel for their willingness to work together. The Port Authority of New York and New Jersey declared on…
A&B Buys Industrial Portfolio in Central California
A four-building, 790,000-square-foot warehouse/distribution portfolio in Visalia, Calif., has been acquired by A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc.The properties are all in Midstate 99 Distribution Center, a 480-acre masterplanned logistics park southeast of Fresno in the California Hwy. 99 corridor. The park was developed by The Allen Group, and the four buildings were all built between 2001 and 2008. The properties are 94 percent leased to a mix of retail and wholesale tenants. The buildings are of concrete tilt-up construction, with ESFR (Early Suppression Fast Response) fire sprinklers, 30-foot clear heights and deep truck courts….
Except for Auto Dealers, Retail Sales Rise Slightly
Retail sales were down in November, according to the U.S. Department of Commerce, but not as much as in October. The November drop was 1.8 percent, compared with an October drop of 2.9 percent, the worst drop on record. Still, there was a meager bright spot for retailers, except for auto dealers: take out cars and car parts, sales of which fell 1.6 percent in November, and retail sales actually rose in November by 0.3 percent. Electronics stores and sporting goods stores led the way with a 2.8 percent increase each in sales last month.Curiously, in the face of all…
Serota Properties Proposes $300M Mixed-Use Project
Serota Properties has submitted a proposal to develop a $300 million mixed-use community on 136 acres at the corner of Sunrise Highway and Veterans Memorial Highway in New York’s Islip, Long Island.Coined Islip Pines, the proposed development includes plans for more than 200 residential units, a Class A office complex, a cluster of retail stores, an upscale hotel and a movie theater. Moreover, the company has requested that half of the proposed space be allocated toward industrial purposes in an attempt to draw corporations to the area and spur an upsurge in employment opportunities in Islip.”Our objective is to create…
Intercontinental Buys Tucson Industrial Portfolio for $46M
Intercontinental Real Estate Corp. purchased a 606,027-square-foot industrial/R&D portfolio located in Tucson, Ariz., from a joint venture of the Muller Co. and GE Real Estate for $46 million. The transaction is the largest investment sale completed in Tucson so far this year. Ryan Gallagher, senior vice president, and Kelly Rohfeld, vice president, with Grubb & Ellis’ Institutional Investment Group represented the buyer and the seller in the transaction along with local market brokers Russ Hall and Steve Cohen of Picor Commercial. The six-building portfolio consists of Tucson Technology and Commerce Center I, II, III, IV and Medina Business Center I & II…