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General Growth Properties will not undertake a large-scale asset disposition as the result of its filing this morning for Chapter 11 bankruptcy protection, according to Tom Nolan, General Growth’s president & COO. “Of our top 25 properties, as part of our restructuring, we may look at selling one or two,” Nolan said in a press conference this afternoon. But, overall, selling a “substantial amount” of the company’s assets is not being contemplated, he said. Nolan said that the REITs properties are performing well, with occupancy levels at 92.5 percent at the end of last year, which he said is the…

As the economy continues to show signs of weakness, a new report from CB Richard Ellis Inc. indicates that occupancy is down across all major sectors of commercial real estate. And should the economy continue to struggle, there isn’t likely to be a recovery anytime soon. “Commercial real estate evolves along with the economy,” Jon Southard, director of forecasting for Eonometric Advisors, a division within CBRE, told CPN. “As far as what it means for the rest of the year, I’m not so sure it means a continuation.” The rate of vacancy increase is notable, with the rates for the…

Given the sluggish property investment market, finding investors for any deal is a challenge these days, let alone for a massive portfolio of 52 properties valued at a total of $1.9 billion. Such is the task faced by the trio of Holliday Fenoglio Fowler L.P., Macquarie Capital Advisers Ltd. and UBS Securities L.L.C., which has been tapped to market the properties, which are owned by Macquarie DDR U.S. Trust, a joint venture involving Australia-based MDT and Developers Diversified Realty Corp. The team will also advise on a strategic review of the REIT’s assets in the U.S.MDT announced last month that…

Starwood Hotels and Resorts Worldwide Inc.’s plans to renovate Sheraton Hotels & Resorts, its most global and largest brand, are still going forward in spite of the difficult economic situation. The global, multi-year revitalization program includes an investment of more than $2 billion in new hotels, $1.3 billion in renovations and $400 million in signature brand initiatives.Arrangements and financing for the Sheraton brand’s revitalization were made long before the current economic crisis, with renovations and upgrades to properties beginning in 2007. The bulk of investments were made prior to the fall of 2008, allowing the worldwide work to carry on…

Having professionally grown up following the precepts of Pareto’s Principle, which essentially holds that 80 percent of profits derive from 20 percent of the customer base, I have stood fast in support of it oh these many years. But, it strikes me that today’s dire economic conditions might call for a fresh re-evaluation of how applicable the Italian economist’s heralded rule is today.The recession has reached its 16th month—having officially started in December 2007—more jobs vanish every day and an estimated one in eight American homeowners is either in foreclosure or behind on payments. Thus, the lasting effects of economy…

During the next few quarters, the increasing volume and value of delinquent retail loans will bring scores of lenders and retail property owners to a crossroads. In February alone, 46 retail CMBS loans valued at $277 million became newly delinquent, bringing the total value of delinquent securitized retail loans to $1.7 billion nationwide, according to Fitch Ratings. Though lenders will likely choose between foreclosure and workouts for the vast majority of distressed retail properties, a small but growing number of lenders are making a third choice: a court-appointed receiver.Specifically, the court appoints a receiver for a retail property or other…

The Hotel Palomar Dallas, a Kimpton hotel, demonstrates a conscious commitment to the environment, as well as a strong business case for sustainability. Like other properties owned by Behringer Harvard, including the Hotel Palomar Los Angeles Westwood, it employs energy and water conservation, recycling, green cleaning and the use of environmentally sensitive materials and finishes. Also among its best practices are paper conservation, including paperless checkin and checkout; washable mugs in the guest rooms; copy machines that default to double-sided printing; and washable napkins. Motion sensors and energy-efficient lighting reduce energy consumption. Non-toxic products are used for cleaning and maintenance…

In an unusual market in which traditional demand sources prove unpredictable, global hotel companies can seek business in unexpected places. Thus, Marriott International has entered a locale that most would rather avoid, signing on to manage a five-star, 228-room hotel in Afghanistan’s capital of Kabul. Scheduled for completion by the end of 2010, the property is rising next to the U.S. embassy within the security perimeter.Rick Jenney, partner in the law firm of Morrison & Foerster L.L.P., represented Overseas Private Investment Corp. in its $60 million financing for the project, which is rising in a 3 million-resident city that offers…

Grubb & Ellis Co.’s first-quarter office market statistics are ready in draft form, and the preliminary snapshot appears about as expected: not encouraging but not bad enough to set any new records.The vacancy rate ended the quarter at 15.5 percent, an increase of 70 basis points from the year-end rate of 14.8 percent. Net absorption plunged to negative 17 million square feet, on par with some of the worst quarters during the 2001 recession. The inventory of available sublease space ended the quarter at 110 million square feet, a gain of 10 million square feet since the beginning of the…

The New Jersey office market is seeing signs of increased tenant activity in the first quarter of 2009, according to two market watchers. The clouds have not all cleared, certainly, as FirstService Williams reported that the New Jersey office availability rate increased slightly to 21.4 percent from last year’s first-quarter figure of 20.5 percent and from 21.2 percent at the end of 2008. Year-over-year availability in Northern New Jersey increased from 18.8 percent to 19.7 percent, and in Central New Jersey it grew from 23 percent to 23.8 percent.But, upticks in office cycles usually begin with increased tenant activity, and…