General Growth Properties Inc. has agreed to sell a 25 percent stake in the Ala Moana Center in Honolulu to AustralianSuper for $1.4 billion, valuing the property, which includes retail and office space, at a whopping $5.5 billion, or $2,500/sf. That valuation compares with the $2.7 billion value pegged just three years ago on the property, which is undergoing a substantial expansion.
Forest City Enterprises Inc. is looking to sell a number of properties as it continues to re-focus its portfolio. The properties that the Cleveland company would be offering include the Illinois Science and Technology Park, a life-sciences project in Skokie, Ill. It's also considering selling a portfolio of 33 apartment properties and four office properties.
David Werner has struck a deal to pay roughly $160 million, or $248.06/sf, for Charlotte Plaza, a 645,000-square-foot office building at 201 South College St. in downtown Charlotte, N.C. The New York investor is buying the property from Hines Sumisei U.S. Core Office Fund.
LNR Partners has put on the sales market a $94.2 million nonperforming loan against a portfolio of 38 office properties leased primarily to government agencies. The Miami special servicer has hired Eastdil Secured to market the loan, which is among the largest in the collateral pool of LB-UBS Commercial Mortgage Trust, 2006-C7.
Blackstone Group is in the market to raise up to $15 billion for what would be the largest ever real estate investment fund, topping its $13.3 billion predecessor. So far, it's lined up equity commitments from the Ohio Police & Fire Pension Fund and the Maine Public Employees' Retirement System, among others.
Landesbank Baden-Wurttemberg has provided $278 million of fixed-rate financing against America's Square, a 461,484-square-foot office property in the Capitol Hill submarket of Washington, D.C., that was recently purchased by Jamestown Properties for $496.9 million, or $1,077/sf.
Metropolitan Life Insurance Co. has provided a $220 million loan against 662,127 square feet of the 909,127-sf Beachwood Place Mall in the Cleveland suburb of Beachwood, Ohio. The loan was used by the property's owner, General Growth Properties Inc., to replace $213.4 million of debt, some of which was securitized.
LNR Partners has put up for sale three office buildings in Beverly Hills, Calif., that it took by foreclosing on a $47 million CMBS loan in 2012. The three buildings, commonly referred to as the Beverly Hills Office Pool, have a total of 208,872 square feet and collectively could sell for as much as $80 million, or $383/sf.
Columbia Property Trust, the former Wells REIT II Inc., has identified 14 suburban and single-tenant properties with 3.8 million square feet that it aims to sell this year. It expects that the properties will sell for up to $600 million, which would translate to an average capitalization rate of 7 percent to 8 percent. The proposed sales are part of the REIT's ongoing plan to reposition its portfolio.
Dean Jernigan, the former chief executive of self-storage REIT CubeSmart, has formed Jernigan Capital Inc., through which he plans to provide financing against self-storage properties. He's looking to raise public capital for his venture, which would write loans against development and stabilized properties.
West Coast Port Slowdown and Industrial REITs After nine months of labor negotiations and worsening cargo congestion at West Coast Ports, U.S. Labor Secretary Thomas Perez stepped in this week to help broker a deal between the union and shippers. The work slowdown is affecting the nation’s supply chain. Honda has reported a production slowdown because of parts....
New REITs Increase Investor Choices in 2015 Three REIT IPOs in as many weeks could indicate a strong year ahead for new REIT formation. Robust REIT returns during 2014 created momentum for IPO activity. In addition, the market’s favorable reception of the widely-watched Paramount REIT (PGRE) and STORE Capital (STOR) IPOs in late 2014 has encouraged companies to....
REITs Start 2015 Strong One month in to 2015, REITs continue to outperform the broader markets. During January, the FTSE NAREIT All REIT Index total return measured 5.59 percent, compared to -3.00 percent for the S&P 500, -3.69 percent for the DJIA, and -2.13 percent for the NASDAQ. REITs are attractive to investors for a...