News Briefs
Transwestern Fund Inks Virginia Bank to 62,000-SF Office Lease
June 10, 2009
Aslan Realty Partners III L.L.C., a fund sponsored by Transwestern Investment Co., has inked a five-year, 62,200-square-foot lease with Branch Banking & Trust Company of Virginia Inc. The bank will house its regional headquarters at Falls Church Corporate Center, a two-building, 400,000-square-foot office complex in Falls Church, Va. An additional building containing 190,000 sqaure feet offfice and a 161-suite extended stay hotel is planned for the complex. Transwetern agents Bernie McKeever, Alan Asman and Bernie McKeever, Jr., represented the landlord in the negotiations.
Aslan Realty Partners III L.L.C., a fund sponsored by Transwestern Investment Co., has inked a five-year, 62,200-square-foot lease with Branch Banking & Trust Company of Virginia Inc. The bank will house its regional headquarters at Falls Church Corporate Center, a two-building, 400,000-square-foot office complex in Falls Church, Va. An additional building containing 190,000 sqaure feet offfice and a 161-suite extended stay hotel is planned for the complex. Transwetern agents Bernie McKeever, Alan Asman and Bernie McKeever, Jr., represented the landlord in the negotiations.
Colorado Seniors Housing Project Scores $41M Financing
June 10, 2009
The Denver regional office of NorthMarq Capital arranged a $41 million construction/permanent loan for The Carillon at Boulder Creek, a 117-unit senor living community located at 2525 Taft Drive in Boulder, Colo. The property consists of a nine-story building currently being renovated to contain 54 senior residential units, as well as construction of 63 new units on ground previously occupied by a one-story skilled nursing wing. The property will be operated by One Eighty/Leisure Care with amenities including a full service restaurant, outdoor garden and walking path, spa/salon, gym, and an indoor lap pool. Steve Koeneke, senior director; and Dave Link, vice president, arranged the financing through NorthMarq’s FHA subsidiary, AmeriSphere, on behalf of the borrower, MGL Partners. MGL acquired the property in 2007 and broke ground at the beginning of May.
The Denver regional office of NorthMarq Capital arranged a $41 million construction/permanent loan for The Carillon at Boulder Creek, a 117-unit senor living community located at 2525 Taft Drive in Boulder, Colo. The property consists of a nine-story building currently being renovated to contain 54 senior residential units, as well as construction of 63 new units on ground previously occupied by a one-story skilled nursing wing. The property will be operated by One Eighty/Leisure Care with amenities including a full service restaurant, outdoor garden and walking path, spa/salon, gym, and an indoor lap pool. Steve Koeneke, senior director; and Dave Link, vice president, arranged the financing through NorthMarq’s FHA subsidiary, AmeriSphere, on behalf of the borrower, MGL Partners. MGL acquired the property in 2007 and broke ground at the beginning of May.
ProLogis Announces Full Occupancy at 531,000-SF Houston Distrib Park
June 9, 2009
ProLogis announced today full occupancy at ProLogis NorthPark, a recently developed, four-building, 531,000- square-foot distribution park located in Houston. The park becomes fully leased with the recent signing of a new 101,000-square-foot lease agreement with Snider Tire, Inc. ProLogis NorthPark is located along Interstate 45, north of Beltway 8. ProLogis acquired one building at the park, developed three more, and has 40-acres of land available for future endeavors. Additional customers recently leasing space in the park include Ozborne-Hessey Logistics, Anna’s Linens, Proinlosa Energy, Coleman American Moving, Advanced Restoration Solutions and Labrada Bodybuilding Nutrition.
ProLogis announced today full occupancy at ProLogis NorthPark, a recently developed, four-building, 531,000- square-foot distribution park located in Houston. The park becomes fully leased with the recent signing of a new 101,000-square-foot lease agreement with Snider Tire, Inc. ProLogis NorthPark is located along Interstate 45, north of Beltway 8. ProLogis acquired one building at the park, developed three more, and has 40-acres of land available for future endeavors. Additional customers recently leasing space in the park include Ozborne-Hessey Logistics, Anna’s Linens, Proinlosa Energy, Coleman American Moving, Advanced Restoration Solutions and Labrada Bodybuilding Nutrition.
5-Building Tech Park Trades in Silicon Valley
June 9, 2009
The San Francisco office of Holliday Fenoglio Fowler, L.P. and Cornish & Carey Commercial have arranged the sale of Murphy Ranch Technology Park, a five-building, 363,200-square-foot office complex in Milpitas, Calif. The seller, Prudential Real Estate Investors, was represented by C&C in cooperation with HFF’s senior managing directors Michael Leggett and Gerry Rohm. Spear Street Capital purchased the property, which is fully leased as corporate headquarters for a trio of tenants; Avaya, Intersil and Phoenix Technologies. Financial details of the transaction were not disclosed.
The San Francisco office of Holliday Fenoglio Fowler, L.P. and Cornish & Carey Commercial have arranged the sale of Murphy Ranch Technology Park, a five-building, 363,200-square-foot office complex in Milpitas, Calif. The seller, Prudential Real Estate Investors, was represented by C&C in cooperation with HFF’s senior managing directors Michael Leggett and Gerry Rohm. Spear Street Capital purchased the property, which is fully leased as corporate headquarters for a trio of tenants; Avaya, Intersil and Phoenix Technologies. Financial details of the transaction were not disclosed.
EastGroup Nabs 142,000-SF Las Vegas Distrib Complex
June 9, 2009
Industrial REIT ProLogis has sold a 142,000-square-foot Las Vegas distribution center to EastGroup Properties. The two-building complex is currently 77 percent occupied by a roster of eight tenants. The $11 million deal was brokered on behalf of ProLogis by Donna Alderson and Greg Tassie with CB Richard Ellis Inc.
Industrial REIT ProLogis has sold a 142,000-square-foot Las Vegas distribution center to EastGroup Properties. The two-building complex is currently 77 percent occupied by a roster of eight tenants. The $11 million deal was brokered on behalf of ProLogis by Donna Alderson and Greg Tassie with CB Richard Ellis Inc.
Hotel Construction Pipeline Sluggish Throughout EMEA Region
June 5, 2009
Not surprisingly, the global recession is negatively impacting hotel development throughout Europe, Middle East and Africa regions, according to Lodging Econometrics' Q1 2009 construction pipeline report for the region.
Europe's construction pipeline sits at 912 projects/153,189 rooms, down 11 percent from Q2 2008's cyclical peak, while the Middle East pipeline has plunged 14 percent to 477 projects/142,702 rooms. Africa's pipeline of 174 projects/35,253 rooms represents a 3 percent drop from the peak.
The three regions are also facing a backlog of stalled hotel projects. Construction starts in Europe hover at a low of 68 projects/10,839 rooms; LE projects that those figures will drop further. In the Middle East, construction starts have dropped 50 percent from their peak. Dubai's pipeline—124 projects/48,558 rooms—accounts for 34 percent of all hotel development in the region. New project announcements include 79 in Europe (36 of which are in the UK); 22 throughout Egypt, Saudi Arabia, and Abu Dhabi; and 18 in Africa, with four of those projects in Morocco.
Additionally, project cancellations and postponements have increased due to the global recession. "The availability of financing is so restrictive and lodging operation declines are impacting so significantly that, of the 116 cancellations/postponements reported, 51 or 44 percent were already under construction and abruptly halted," according to LE's report.
Q1 saw the debut of 68 new hotels representing 11,924 guestrooms throughout EMEA; 60 percent of those openings were in Europe, and 28 percent were in the Middle East. LE forecasts that total new openings for Europe this year will be down 10 percent from 2008 but will significantly bounce back in 2010. Growth in the Middle East and Africa is poised to accelerate each year into 2011.
SOURCE: Hospitality Design
Not surprisingly, the global recession is negatively impacting hotel development throughout Europe, Middle East and Africa regions, according to Lodging Econometrics' Q1 2009 construction pipeline report for the region.
Europe's construction pipeline sits at 912 projects/153,189 rooms, down 11 percent from Q2 2008's cyclical peak, while the Middle East pipeline has plunged 14 percent to 477 projects/142,702 rooms. Africa's pipeline of 174 projects/35,253 rooms represents a 3 percent drop from the peak.
The three regions are also facing a backlog of stalled hotel projects. Construction starts in Europe hover at a low of 68 projects/10,839 rooms; LE projects that those figures will drop further. In the Middle East, construction starts have dropped 50 percent from their peak. Dubai's pipeline—124 projects/48,558 rooms—accounts for 34 percent of all hotel development in the region. New project announcements include 79 in Europe (36 of which are in the UK); 22 throughout Egypt, Saudi Arabia, and Abu Dhabi; and 18 in Africa, with four of those projects in Morocco.
Additionally, project cancellations and postponements have increased due to the global recession. "The availability of financing is so restrictive and lodging operation declines are impacting so significantly that, of the 116 cancellations/postponements reported, 51 or 44 percent were already under construction and abruptly halted," according to LE's report.
Q1 saw the debut of 68 new hotels representing 11,924 guestrooms throughout EMEA; 60 percent of those openings were in Europe, and 28 percent were in the Middle East. LE forecasts that total new openings for Europe this year will be down 10 percent from 2008 but will significantly bounce back in 2010. Growth in the Middle East and Africa is poised to accelerate each year into 2011.
SOURCE: Hospitality Design
HFF Lands $50M Financing for Pair of Houston M-F Properties
June 5, 2009
The Houston and Dallas offices of Holliday Fenoglio Fowler L.P. has secured nearly $50 million in financing on behalf of Trammell Crow Residential for Alexan Woods and Alexan Main Street, two Class A multi-family complexes in Houston. Working exclusively on behalf of the borrower, HFF executive managing director Jody Thornton and associate directors John Ahmed and Matt Kafka placed two, seven-year adjustable-rate loans with Freddie Mac. A $22.16 million loan was secured for Alexan Woods and a $27.63 million loan was arranged for Alexan Main Street. Proceeds will be used to retire the existing construction loans, while recapitalizing both assets with assumable, non-recourse financing and flexible prepayment structures. Alexan Woods is located in The Woodlands, approximately 25 miles north of Downtown Houston. Completed in 2007, the property has 280 units with 99 percent of the units currently occupied. Currently 98 percent occupied, Alexan Main Street was also completed in 2007 and has 286 one- and two-bedroom units, averaging 983 square feet each.
The Houston and Dallas offices of Holliday Fenoglio Fowler L.P. has secured nearly $50 million in financing on behalf of Trammell Crow Residential for Alexan Woods and Alexan Main Street, two Class A multi-family complexes in Houston. Working exclusively on behalf of the borrower, HFF executive managing director Jody Thornton and associate directors John Ahmed and Matt Kafka placed two, seven-year adjustable-rate loans with Freddie Mac. A $22.16 million loan was secured for Alexan Woods and a $27.63 million loan was arranged for Alexan Main Street. Proceeds will be used to retire the existing construction loans, while recapitalizing both assets with assumable, non-recourse financing and flexible prepayment structures. Alexan Woods is located in The Woodlands, approximately 25 miles north of Downtown Houston. Completed in 2007, the property has 280 units with 99 percent of the units currently occupied. Currently 98 percent occupied, Alexan Main Street was also completed in 2007 and has 286 one- and two-bedroom units, averaging 983 square feet each.
Nolen Joins Madison Partners as Director
June 4, 2009
Madison Partners has announced that Karly Nolen has joined Madison Partners as a director in the firm’s Century City office. With significant real estate experience in Los Angeles, Nolen specializes in landlord and tenant representation, as well as investor relations. She will be responsible for cultivating new business and managing the firm’ existing landlord portfolio. Prior to joining Madison Partners, Nolen was a leasing associate with Thomas Properties Group Inc.
Madison Partners has announced that Karly Nolen has joined Madison Partners as a director in the firm’s Century City office. With significant real estate experience in Los Angeles, Nolen specializes in landlord and tenant representation, as well as investor relations. She will be responsible for cultivating new business and managing the firm’ existing landlord portfolio. Prior to joining Madison Partners, Nolen was a leasing associate with Thomas Properties Group Inc.
Abbey Makes 460,000-SF Orange County Office Play
June 4, 2009
The Abbey Co. has acquired a three-building, 460,000-square-foot Orange County, Calif., office complex from Maguire Properties. The City Parkway Office Complex consists of twin 10-story glass office buildings and a four-story office building located within an office campus in Orange, California. The all-cash purchase brings Abbey's Orange County portfolio to eight properties. As part of the deal, Abbey also purchased the property's underlying mortgage loan from the original lender.
The Abbey Co. has acquired a three-building, 460,000-square-foot Orange County, Calif., office complex from Maguire Properties. The City Parkway Office Complex consists of twin 10-story glass office buildings and a four-story office building located within an office campus in Orange, California. The all-cash purchase brings Abbey's Orange County portfolio to eight properties. As part of the deal, Abbey also purchased the property's underlying mortgage loan from the original lender.
TMW Nabs Shopping Center in France
June 4, 2009
TMW Pramerica Property Investment GmbH has acquired LE 31, a shopping center located in Lille, France. The purchase was carried out by way of a joint venture of two TMW funds for approximately €160M. Foruminvest France, which developed the shopping centre, will continue to manage the property in the long term on behalf of the new owner. Since its opening in September 2007, the complex has been fully let to retailers Galeries Lafayette, Adidas, Darty, La Grande Récré, Grand Optical, Pull & Bear and Bershka. The purchaser was advised by Allez & Associes and Freshfields. The sale was structured by Cushman & Wakefield Inc.
TMW Pramerica Property Investment GmbH has acquired LE 31, a shopping center located in Lille, France. The purchase was carried out by way of a joint venture of two TMW funds for approximately €160M. Foruminvest France, which developed the shopping centre, will continue to manage the property in the long term on behalf of the new owner. Since its opening in September 2007, the complex has been fully let to retailers Galeries Lafayette, Adidas, Darty, La Grande Récré, Grand Optical, Pull & Bear and Bershka. The purchaser was advised by Allez & Associes and Freshfields. The sale was structured by Cushman & Wakefield Inc.
KABR Fund Takes 235,000-SF New Jersey Office
June 3, 2009
Newly-formed value-added real estate fund KABR Real Estate Investment Partners L.L.C. has purchased a 235,000-square-foot office building at 85 Challenger Road in Ridgefield Park, N.J., from AIG. The purchase was KARB's first investment. Terms of the Class A building purchase, brokered by Cushman & Wakefield Inc.'s Metropolitan Area Capital Markets Group, were not disclosed. The 85 Challenger building, part of the 60-acre Overpeck Centre which sits at the junction of Route 46, I-80 and the NJ Turnpike, has a historic occupancy rate of more than 90 percent. Cushman's Andrew Merin, Gary Gabriel, David Bernhaut and Jose Cruz orchestrated the sale.
Newly-formed value-added real estate fund KABR Real Estate Investment Partners L.L.C. has purchased a 235,000-square-foot office building at 85 Challenger Road in Ridgefield Park, N.J., from AIG. The purchase was KARB's first investment. Terms of the Class A building purchase, brokered by Cushman & Wakefield Inc.'s Metropolitan Area Capital Markets Group, were not disclosed. The 85 Challenger building, part of the 60-acre Overpeck Centre which sits at the junction of Route 46, I-80 and the NJ Turnpike, has a historic occupancy rate of more than 90 percent. Cushman's Andrew Merin, Gary Gabriel, David Bernhaut and Jose Cruz orchestrated the sale.
American Realty Plans $30M Houston Industrial Buy
June 3, 2009
American Realty Capital Trust Inc. plans to acquire a newly constructed freight facility entirely net leased to FedEx Freight in the coming weeks. The firm will buy up the 152,600-square-foot Houston-area facility by June 15 for some $30.9 million from seller PinPoint Commercial. FedEx currently occupies the space under an existing net lease with a primary lease term of 15 years, having commenced in October 2008. The agreement includes two successive five-year extensions. The base annual rent increases by 8 percent every five years. American Realty will finance the deal via a long-term, first mortgage loan from a major European bank, representing approximately 50 percent of the total purchase price; the remaining capital will be provided by the REIT.
American Realty Capital Trust Inc. plans to acquire a newly constructed freight facility entirely net leased to FedEx Freight in the coming weeks. The firm will buy up the 152,600-square-foot Houston-area facility by June 15 for some $30.9 million from seller PinPoint Commercial. FedEx currently occupies the space under an existing net lease with a primary lease term of 15 years, having commenced in October 2008. The agreement includes two successive five-year extensions. The base annual rent increases by 8 percent every five years. American Realty will finance the deal via a long-term, first mortgage loan from a major European bank, representing approximately 50 percent of the total purchase price; the remaining capital will be provided by the REIT.
Signs Of Stabilization Despite Deep Declines In European Hotel Performance
June 2, 2009
The European hotel industry in April saw double-digit percentage drops in occupancy, average daily rate and revenue per available room, although the numbers also could indicate that the industry is stabilizing, according to data by Smith Travel Research. For the continent overall, occupancy dropped year-over-year by 13.8 percent to the level of 59.4 percent. Average daily rate, measured in euros, was down 14.7 percent, and RevPAR was down 26.5 percent. On the country level, Russia reported the biggest drops, with occupancy down 20.8 percent, rates down 19.5 percent and RevPAR down 36.2 percent. Germany was close behind, with a 17.4 percent drop in occupancy, a 14.9 percent drop in average daily rate and a nearly 30 percent drop in RevPAR.
SOURCE: Business Travel News
The European hotel industry in April saw double-digit percentage drops in occupancy, average daily rate and revenue per available room, although the numbers also could indicate that the industry is stabilizing, according to data by Smith Travel Research. For the continent overall, occupancy dropped year-over-year by 13.8 percent to the level of 59.4 percent. Average daily rate, measured in euros, was down 14.7 percent, and RevPAR was down 26.5 percent. On the country level, Russia reported the biggest drops, with occupancy down 20.8 percent, rates down 19.5 percent and RevPAR down 36.2 percent. Germany was close behind, with a 17.4 percent drop in occupancy, a 14.9 percent drop in average daily rate and a nearly 30 percent drop in RevPAR.
SOURCE: Business Travel News
Starbucks Pushes for Lower Lease Rates
June 2, 2009
Taking advantage of a declining real estate market, Seattle-based Starbucks Corp. is reportedly pushing some of its U.S. landlords for as much as a 25 percent decrease in lease rates. According to Bloomberg.com. New York-based Prudential Douglas Elliman's retail leasing, marketing and sales division is advising about a dozen landlords to work with Starbucks after receiving letters seeking rent reductions of 20 percent to 25 percent. Starbucks began rent-reduction efforts in January as part of a plan to trim overall expenses, Starbucks spokeswoman Tara Darrow told Bloomberg. Around the same time, the company also said it would close about 300 stores this year and cut as many as 6,700 jobs. “We’re taking advantage of the opportunity in as many cases as we can,” Darrow said. “We feel like it’s a positive program for us. Most of the landlords we’ve worked with have felt it is a mutually beneficial situation.” The rent-reduction program covers the U.S. stores operated by Starbucks, a number that totaled 7,035 as of March 29. The effort doesn’t include the more than 4,400 U.S. stores in airports, supermarkets and other licensed locations, Darrow said. Starbucks had cut $195 million in labor, food and other costs through the first half of fiscal 2009, and in April, the company said it was on pace to lower total costs by $500 million in the fiscal year that ends in September.
SOURCE: DDi Magazine
Taking advantage of a declining real estate market, Seattle-based Starbucks Corp. is reportedly pushing some of its U.S. landlords for as much as a 25 percent decrease in lease rates. According to Bloomberg.com. New York-based Prudential Douglas Elliman's retail leasing, marketing and sales division is advising about a dozen landlords to work with Starbucks after receiving letters seeking rent reductions of 20 percent to 25 percent. Starbucks began rent-reduction efforts in January as part of a plan to trim overall expenses, Starbucks spokeswoman Tara Darrow told Bloomberg. Around the same time, the company also said it would close about 300 stores this year and cut as many as 6,700 jobs. “We’re taking advantage of the opportunity in as many cases as we can,” Darrow said. “We feel like it’s a positive program for us. Most of the landlords we’ve worked with have felt it is a mutually beneficial situation.” The rent-reduction program covers the U.S. stores operated by Starbucks, a number that totaled 7,035 as of March 29. The effort doesn’t include the more than 4,400 U.S. stores in airports, supermarkets and other licensed locations, Darrow said. Starbucks had cut $195 million in labor, food and other costs through the first half of fiscal 2009, and in April, the company said it was on pace to lower total costs by $500 million in the fiscal year that ends in September.
SOURCE: DDi Magazine
Highwoods Sells Kansas City Retail Portfolio for $62M
May 29, 2009
Highwoods Properties has completed the $62.1 million sale of a three-property retail portfolio located in the suburbs of Kansas City, Kan. The 416,000-square-foot portfolio, consisting of three grocery store-anchored community centers, was purchased by a partnership led by Lane 4, a Kansas City-based developer of lifestyle shopping centers, power centers and office properties. According to Highwoods, the properties currently generate net operating income of approximately $5.4 million. There was no assumable debt or seller financing available to the buyer. Real estate advisor Savills represented Highoods on the sale, with assistance from locally-based agent Kessinger Hunter.
Highwoods Properties has completed the $62.1 million sale of a three-property retail portfolio located in the suburbs of Kansas City, Kan. The 416,000-square-foot portfolio, consisting of three grocery store-anchored community centers, was purchased by a partnership led by Lane 4, a Kansas City-based developer of lifestyle shopping centers, power centers and office properties. According to Highwoods, the properties currently generate net operating income of approximately $5.4 million. There was no assumable debt or seller financing available to the buyer. Real estate advisor Savills represented Highoods on the sale, with assistance from locally-based agent Kessinger Hunter.
Global Hotel Slump Persists: Report
May 29, 2009
Hotel performance results for April, released this week by Smith Travel Research, illustrated the global nature of the economic downturn, with all four major regions--the Americas, Europe, Asia/Pacific and Middle East/Africa--showing double-digit percentage decreases in occupancy and RevPAR.
Occupancy in the Americas dropped 11.3 percent year-over-year to 56.5 percent, while average daily rate was down 10 percent and RevPAR down 20.1 percent, according to the data. The United States took the hardest hit in terms of average daily rate, which dropped 9.4 percent to $98.37.
New York was one of only two key markets--the other being Manitoba/Saskatchewan, Canada--to see an occupancy decrease of less than 5 percent, but New York also saw one of the sharpest rate drops: down 25.5 percent to $203.58. Three other cities--Toronto, Montreal and Mexico City--also saw rates drop by more than 20 percent. Nassau, Bahamas, was the only major market in the Americas to report an increase in rates.
Several markets in the Americas saw RevPAR fall more than 35 percent: Santiago, Toronto, Mexico City and Buenos Aires. With April the month when swine flu first began to surface, Mexico City saw its RevPAR decrease by more than half.
In Europe, occupancy was down even more, by 13.8 percent to the level of 59.4 percent. Average daily rate in euros was down 14.7 percent, and RevPAR was down 26.5 percent.
SOURCE: BTNonline
Hotel performance results for April, released this week by Smith Travel Research, illustrated the global nature of the economic downturn, with all four major regions--the Americas, Europe, Asia/Pacific and Middle East/Africa--showing double-digit percentage decreases in occupancy and RevPAR.
Occupancy in the Americas dropped 11.3 percent year-over-year to 56.5 percent, while average daily rate was down 10 percent and RevPAR down 20.1 percent, according to the data. The United States took the hardest hit in terms of average daily rate, which dropped 9.4 percent to $98.37.
New York was one of only two key markets--the other being Manitoba/Saskatchewan, Canada--to see an occupancy decrease of less than 5 percent, but New York also saw one of the sharpest rate drops: down 25.5 percent to $203.58. Three other cities--Toronto, Montreal and Mexico City--also saw rates drop by more than 20 percent. Nassau, Bahamas, was the only major market in the Americas to report an increase in rates.
Several markets in the Americas saw RevPAR fall more than 35 percent: Santiago, Toronto, Mexico City and Buenos Aires. With April the month when swine flu first began to surface, Mexico City saw its RevPAR decrease by more than half.
In Europe, occupancy was down even more, by 13.8 percent to the level of 59.4 percent. Average daily rate in euros was down 14.7 percent, and RevPAR was down 26.5 percent.
SOURCE: BTNonline
Syms, Men's Wearhouse Compete for Filene's Basement Stores
May 28, 2009
Discount clothing rivals Syms and Men's Wearhouse have entered the bidding war to buy the bulk of bankrupt discount retailer Filene's Basement stores. Earlier this month, Filene's, after filing for Chapter 11 bankruptcy protection, said it would sell 17 of its 25 stores to stalking horse bidder Crown Acquisitions, in partnership with Chetrit Group. But now two more players have entered the ring. According to the New York Post, Syms has teamed up with real estate firm Vornado to help finance its bid, and has its eye on the company's flagship store in Downtown Boston. Each of the bidders reportedly intend to buy at least 15 Filene's locations.
SOURCE: DDi Magazine
Discount clothing rivals Syms and Men's Wearhouse have entered the bidding war to buy the bulk of bankrupt discount retailer Filene's Basement stores. Earlier this month, Filene's, after filing for Chapter 11 bankruptcy protection, said it would sell 17 of its 25 stores to stalking horse bidder Crown Acquisitions, in partnership with Chetrit Group. But now two more players have entered the ring. According to the New York Post, Syms has teamed up with real estate firm Vornado to help finance its bid, and has its eye on the company's flagship store in Downtown Boston. Each of the bidders reportedly intend to buy at least 15 Filene's locations.
SOURCE: DDi Magazine
Capmark Lands California M-F Refi via Freddie Mac
May 28, 2009
Capmark Finance Inc. has originated $17.9 million in debt through its Freddie Mac program for the refinance of Terraces at Highland Reserve, a multi-family property in Roseville, Calif. The floating-rate loan features a seven-year term. The Terraces at Highland Reserve is comprised of 273 units. Senior vice president Tom Bracken of Capmark’s San Francisco office originated the transaction for a fund advised by KBS Realty Advisors.
Capmark Finance Inc. has originated $17.9 million in debt through its Freddie Mac program for the refinance of Terraces at Highland Reserve, a multi-family property in Roseville, Calif. The floating-rate loan features a seven-year term. The Terraces at Highland Reserve is comprised of 273 units. Senior vice president Tom Bracken of Capmark’s San Francisco office originated the transaction for a fund advised by KBS Realty Advisors.
New Venture Eyes Coming Wave of Bank Closures
May 28, 2009
A new joint venture aims to assist the Federal Deposit Insurance Corp. with real estate issues associated with the agency's expected take over and liquidation of hundreds of banks over the next several years. The new entity,Next Wave Advisors Inc. is a partnership between Third Wave Partners, Portfolio Property Advisors L.L.C. and The Moote Group. Next Wave, a certified FDIC contractor will provide services including bank workouts, asset valuation and repositioning, construction services, disposition and environmental due diligence. Next Wave will also act as principal to acquire or recapitalize FDIC assets. While Next Wave will look at individual opportunities on a case-by-case basis, the firm is focused primarily to take on assignments related to FDIC problem and failed banks.
A new joint venture aims to assist the Federal Deposit Insurance Corp. with real estate issues associated with the agency's expected take over and liquidation of hundreds of banks over the next several years. The new entity,Next Wave Advisors Inc. is a partnership between Third Wave Partners, Portfolio Property Advisors L.L.C. and The Moote Group. Next Wave, a certified FDIC contractor will provide services including bank workouts, asset valuation and repositioning, construction services, disposition and environmental due diligence. Next Wave will also act as principal to acquire or recapitalize FDIC assets. While Next Wave will look at individual opportunities on a case-by-case basis, the firm is focused primarily to take on assignments related to FDIC problem and failed banks.
ProLogis Leases 75,000 SF in United Kingdom
May 27, 2009
ProLogis has leased 75,000 square feet of recently completed distribution space near Heathrow International Airport in the United Kingdom to City Link, the UK's parcel delivery service and subsidiary of Rentokil Initial. City Link's lease is for 100 percent of the space in a new facility at ProLogis Park Heathrow, a 294,000-square-foot distribution park located less than two miles from the airport. The company is consolidating and expanding from two other non-ProLogis facilities nearby, and will use the new building as its primary distribution center in West London.
ProLogis has leased 75,000 square feet of recently completed distribution space near Heathrow International Airport in the United Kingdom to City Link, the UK's parcel delivery service and subsidiary of Rentokil Initial. City Link's lease is for 100 percent of the space in a new facility at ProLogis Park Heathrow, a 294,000-square-foot distribution park located less than two miles from the airport. The company is consolidating and expanding from two other non-ProLogis facilities nearby, and will use the new building as its primary distribution center in West London.
Hartz Mountain Leases Out 116,000 SF in New Jersey
May 27, 2009
Hartz Mountain Industries has agreed to a lease deal with Breeze-Eastern Corp., a publicly-traded designer of lifting devices for military and civilian aircraft. Under terms of the deal, Breeze-Eastern will move its corporate offices and manufacturing facility to the 234,000-square-foot 35 Melanie Lane in Whippany, N.J. Breeze-Eastern will occupy 116,000 square feet at the facility, 45,000 of which will be office space, with the remainder comprised of manufacturing and warehouse space. Breeze-Eastern will spend approximately $5 million to build out its new offices. The move to the Whippany facility is expected to be complete in the third quarter of 2010. FirstService Williams represented Breeze-Eastern in the lease deal. In the past quarter, Hartz Mountain has completed lease agreements with Eisai Medical Research for a newly renovated, 118,000-square-foot office building in Woodcliff Lake, and Children’s Place, which will establish new headquarters in 120,000 square feet at 500 Plaza Drive in Secaucus.
Hartz Mountain Industries has agreed to a lease deal with Breeze-Eastern Corp., a publicly-traded designer of lifting devices for military and civilian aircraft. Under terms of the deal, Breeze-Eastern will move its corporate offices and manufacturing facility to the 234,000-square-foot 35 Melanie Lane in Whippany, N.J. Breeze-Eastern will occupy 116,000 square feet at the facility, 45,000 of which will be office space, with the remainder comprised of manufacturing and warehouse space. Breeze-Eastern will spend approximately $5 million to build out its new offices. The move to the Whippany facility is expected to be complete in the third quarter of 2010. FirstService Williams represented Breeze-Eastern in the lease deal. In the past quarter, Hartz Mountain has completed lease agreements with Eisai Medical Research for a newly renovated, 118,000-square-foot office building in Woodcliff Lake, and Children’s Place, which will establish new headquarters in 120,000 square feet at 500 Plaza Drive in Secaucus.
Sonic Franchisee Retains Calkain to Aid in Sale-Leasebacks
May 26, 2009
Calkain Cos. has been engaged by a multi-unit Sonic restaurant franchisee to consult on the development and exit strategy of the new locations under development in Virginia and Maryland. The franchisee committed to the D.C. metro area and has plans to build 20 locations within the next 12 to 18 months. Site selection has already begun and Calkain is assisting on valuing the properties after development. Calkain president & CEO Jonathan Hipp and assistant vice president Rick Fernandez were engaged to help with potential sale-leasebacks for each of the sites. “The franchisee understands that he needs to build his own locations, but the outflow of cash to do as many projects as he has slated will diminish his overall return... therefore, he may sell and subsequently leaseback some of the locations in order to produce cash for future sites.” Manassas, Va., Gainesville, Va., or Frederick, Md., will most likely be the location of the first Sonic, however a definitive site has yet to be determined.
Calkain Cos. has been engaged by a multi-unit Sonic restaurant franchisee to consult on the development and exit strategy of the new locations under development in Virginia and Maryland. The franchisee committed to the D.C. metro area and has plans to build 20 locations within the next 12 to 18 months. Site selection has already begun and Calkain is assisting on valuing the properties after development. Calkain president & CEO Jonathan Hipp and assistant vice president Rick Fernandez were engaged to help with potential sale-leasebacks for each of the sites. “The franchisee understands that he needs to build his own locations, but the outflow of cash to do as many projects as he has slated will diminish his overall return... therefore, he may sell and subsequently leaseback some of the locations in order to produce cash for future sites.” Manassas, Va., Gainesville, Va., or Frederick, Md., will most likely be the location of the first Sonic, however a definitive site has yet to be determined.
Duke Inks HMO to 104,700-SF St. Louis Office Lease
May 22, 2009
Duke Realty Corp. has agreed to a 104,700-square-foot office lease with HMO Essence Healthcare in the St. Louis, Mo., area. The lease, one of the market's largest of 2009 so far, has a 10-year term and a total value of $20 million. Essence will consolidate two nearby offices and establish its company headquarters at the property, known as Riverpoint Business Park, which is located in Maryland Heights. Mo. Essence was represented by David Kelpe and Art Kerchhoff of Colliers Turley Martin Tucker in the lease negotiations.
Duke Realty Corp. has agreed to a 104,700-square-foot office lease with HMO Essence Healthcare in the St. Louis, Mo., area. The lease, one of the market's largest of 2009 so far, has a 10-year term and a total value of $20 million. Essence will consolidate two nearby offices and establish its company headquarters at the property, known as Riverpoint Business Park, which is located in Maryland Heights. Mo. Essence was represented by David Kelpe and Art Kerchhoff of Colliers Turley Martin Tucker in the lease negotiations.
ProLogis Leases 127,000 SF in Northern Germany
May 21, 2009
Industrial property REIT ProLogis has signed two new lease agreements for more than 127,000 square feet of recently developed space at distribution parks in northern Germany. In the first lease, Volkswagen Original Spare Parts Logistics inked a 78,000-square-foot lease at a new facility within ProLogis Park Cologne Eifeltor, just outside of Cologne. In the second deal, KfH Logistics, the distribution arm of dialysis and kidney transplant services provider KfH, signed a lease for more than 49,000 square feet at ProLogis Park Alzenau, which is now fully leased. KfH is relocating to Alzenau from a nearby warehouse facility. ProLogis is the largest provider of industrial space in Germany with approximately 15.7 million square feet of holdings.
Industrial property REIT ProLogis has signed two new lease agreements for more than 127,000 square feet of recently developed space at distribution parks in northern Germany. In the first lease, Volkswagen Original Spare Parts Logistics inked a 78,000-square-foot lease at a new facility within ProLogis Park Cologne Eifeltor, just outside of Cologne. In the second deal, KfH Logistics, the distribution arm of dialysis and kidney transplant services provider KfH, signed a lease for more than 49,000 square feet at ProLogis Park Alzenau, which is now fully leased. KfH is relocating to Alzenau from a nearby warehouse facility. ProLogis is the largest provider of industrial space in Germany with approximately 15.7 million square feet of holdings.
Mack-Cali Inks 104,000 SF of New Leases
May 21, 2009
Mack-Cali Realty Corp.has signed tenants to new leases totaling 104,200 square feet at two of its properties. Herzfeld & Rubin P.C., a full-service global law firm, is relocating its corporate headquarters to 125 Broad Street in Downtown Manhattan. The firm signed a 56,300-square-foot lease with a 20-year term. Mack-Cali owns condominium interests totaling 40 percent of the Class A office tower. The tenant was represented by Marc Shapses, Joseph. Messina and Jason Schwartzenberg of Studley in the lease. In addition, Mack-Cali signed a new 12-year lease for a full floor consisting of 47,900 square feet at One Sylvan Way, Mack-Cali Business Campus in Parsippany, N.J., with Global Aerospace Inc., to serve as the U.S. headquarters for the aerospace insurer. The tenant was represented by Kenneth Flynn of Jones Lang LaSalle.
Mack-Cali Realty Corp.has signed tenants to new leases totaling 104,200 square feet at two of its properties. Herzfeld & Rubin P.C., a full-service global law firm, is relocating its corporate headquarters to 125 Broad Street in Downtown Manhattan. The firm signed a 56,300-square-foot lease with a 20-year term. Mack-Cali owns condominium interests totaling 40 percent of the Class A office tower. The tenant was represented by Marc Shapses, Joseph. Messina and Jason Schwartzenberg of Studley in the lease. In addition, Mack-Cali signed a new 12-year lease for a full floor consisting of 47,900 square feet at One Sylvan Way, Mack-Cali Business Campus in Parsippany, N.J., with Global Aerospace Inc., to serve as the U.S. headquarters for the aerospace insurer. The tenant was represented by Kenneth Flynn of Jones Lang LaSalle.
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