Five Mile Tees Up Offices, Parcel in Houston
After scooping up a Houston office complex early in the recovery, the team of Five Mile Capital and Crocker Partners is getting ready to cash out in what could be one of the city’s few blockbuster offerings this year.Read more.
Blackstone to Buy Hughes Center in Las Vegas
Continuing to unwind Crescent Real Estate’s once-massive office portfolio, a Barclays partnership has agreed to sell Hughes Center in Las Vegas to Blackstone for nearly $350 million and has put the two remaining Crescent buildings on the block.Read more.
Starwood-Portfolio Winner Shops for Equity
American Invsco, the top bidder for a massive apartment portfolio shopped by a Starwood Capital-FDIC partnership, is facing a June 3 deadline to come up with $90 million of initial equity to keep the acquisition moving along.Read more.
Dahlstrom’s Exit Complicates Colliers’ Push
Until last month, the main challenge that Colliers International faced in building a national capital-markets platform was coordinating regional offices that in the past were only loosely affiliated and rarely collaborated.Read more.
Hurricane Aftermath Disrupts NY-NJ Markets
Hurricane Sandy’s record storm surge and whipping winds left commercial real estate owners throughout the New York metropolitan area assessing damages and altering plans for marketing and buying properties.Read more.
BofA Maps Sale-Leaseback of Big NJ Campus
Continuing its disposition spree, Bank of America wants to sell and fully lease back a New Jersey corporate campus that could command $400 million in what would be the state’s biggest office trade ever.Read more.
Morgan Stanley, LPs Map Fund Compromise
Morgan Stanley’s decision to pull its roughly one-third share of the capital from a $3 billion open-end fund that it sponsors is likely to result in the spinoff of the vehicle’s management and the division of its assets.Read more.
JP Morgan Nabs San Francisco Office Complex
In the biggest sale of a California office property since the downturn, J.P. Morgan Asset Management has acquired the sprawling China Basin Landing complex in San Francisco from Calpers for $415 million.Read more.
Manhattan Office Listings Hit Speed Bump
Several large Manhattan office listings have languished in recent weeks as economic uncertainty and other factors have crimped prices, taking some of the sizzle out of what had been a strong sales market this year.Read more.
Turnover Seen as Early Sign Rebound on Way
The turnover of senior real estate executives who focus on strategy or research has been unusually heavy over the past few months, a trend some view as a harbinger of improving conditions for capital-raising and acquisitions.Read more.
Court Approves Big Rental Offering Near DC
A bankruptcy court has given the green light for the listing of a big suburban Washington apartment complex that could be a litmus test for whether soaring valuations in the area will be sustained.Read more.
Westbrook Takes Over St. Regis Hotel in DC
In its second recent high-profile hotel acquisition, Westbrook Partners last week bought defaulted debt on the St. Regis in Washington from Barclays for about $100 million in cash and immediately foreclosed on the luxury property.Read more.
Cap Rates Plummet on Chicago Warehouses
Two big industrial deals show how strong demand for stabilized properties is pushing down capitalization rates in the Chicago area, a trend that could spur investors to pursue value-added plays to capture higher yields.Read more.
Savills, Ex-Lehman Pros Form Joint Venture
Savills has teamed up with a company that includes former Lehman Brothers real estate chief Mark Walsh to form a joint venture that will manage debt and equity investments for third-party clients in North America.Read more.
Simon Offering 4 Malls in Florida, Tennessee
In one of the largest retail offerings since the market downturn, Simon Property is marketing four malls in Florida and Tennessee that are carried on its books at a combined value of about $350 million.Read more.
Westcore Seeks Big Profit on HP Warehouses
A Southern California industrial property, fully leased to Hewlett-Packard, is on the market with an expected price of $100 million — almost quadruple what a Westcore Properties partnership paid to acquire it vacant last year.Read more.
Lubert-Adler Exec Joins Private Equity Shop
A top executive has left fund shop Lubert-Adler to bring his real estate expertise to Versa Capital, a private equity firm that invests in distressed companies, many with substantial property holdings.Read more.
Invesco Buys DC Building for $220 Million
In one of the biggest deals in Washington this year, Invesco Real Estate last week acquired a fully leased office building near the White House from a Shorenstein Properties partnership for about $220 million.Read more.
After Sale Fades, Exeter Lists Bigger Pool
Exeter Property could attract bids of up to $225 million for 17 industrial properties, including seven that Welsh Cos. backed out of buying last month when its planned IPO failed to get off the ground.Read more.
JP Morgan Deal Reflects Seattle-Area Interest
A J.P. Morgan fund has paid about $310 million for a coveted office tower and an apartment building in the Seattle area, a sale that underscores investors' hunger for high-quality real estate in that market.Read more.
Walton Street to Sell Mall Stake to Partners
Simon Property and a Calpers partnership will take full ownership of the Houston Galleria by acquiring Walton Street Capital's 37.5% stake in a deal that values the trophy mall at roughly $1.65 billion.Read more.
Bainbridge Eyes Multi-Family Buying Spree
Bainbridge Cos., which has been on the sidelines for more than two years, plans to buy about $1 billion of multi-family properties in Florida and the Washington, D.C., area over the next year.Read more.
Pension Portfolios Fell by 24% Last Year
Real Estate Alert's annual review of public pension
systems has documented just how big a toll the
economic downturn took last year: The 50 largest
plans saw their real estate portfolios plunge in value
by a whopping 24% on average.Read more.
Bank Markets Foreclosed Beverly Hills Parcel
(SEE CORRECTION BELOW) A foreclosed Beverly Hills parcel slated for the development of a luxury condominium and retail complex is expected to command less than one-quarter of the price that it traded for two years ago.Read more.
CB Wins Composite Ranking in Dismal Year
CB Richard Ellis last year retained its position as the nation's most-active brokerage across the five major property types, but a catastrophic drop in sales activity stole the luster from its crown.Read more.
Starwood-FDIC Team Pulls Condo Offering
A Starwood Capital-FDIC partnership has dropped its offering of a California condominium project inherited from the failed Corus Bank and will instead finish the complex itself and then seek to sell the units.Read more.
3 Brokerages Seek to Bolster NY Operations
Colliers Pinkard, Holliday Fenoglio Fowler and Jones Lang LaSalle are each aiming to bulk up their New York investment-sales teams, leading some to speculate that another round of musical chairs may be in the offing for top brokers.Read more.
Placement Agents Shift to Advisory Focus
With few funds in a capital-raising mode, placement agents have shifted their focus to advising fund operators and their limited partners on how to navigate the troubled real estate market.Read more.
Morgan Stanley Walks Away From Crescent
Morgan Stanley is preparing to turn the keys to Crescent Real Estate Equities over to a Barclays syndicate and walk away from its disastrously timed $6.5 billion takeover of the REIT.Read more.
SL Green Sells Mezz Loan at 33% Discount
A syndicate organized by Deutsche Bank has bought a $95 million mezzanine loan on a Midtown Manhattan office condominium from SL Green at a discount of about 33%, in the latest sign of how far values have dropped even for core properties.Read more.
Mezz Lenders Taking Over Cabi Portfolio
The senior lenders on a heavily overleveraged California office portfolio have agreed to let four investors convert their mezzanine debt into equity as part of a restructuring that will significantly dilute the $100 million investment of a Calpers-Hines joint venture.Read more.
Walsh in Line to Take Over Lehman Funds
Mark Walsh is leading a team of Lehman Brothers executives who are close to taking over management of the bankrupt company's property funds, a move that would mark the return of one of Wall Street's biggest real estate dealmakers.Read more.
Apartment Portfolio Seen as Under Pressure
A heavily leveraged mortgage on a 2,990-unit apartment portfolio has been transferred to special servicing, raising questions about whether the owner will be forced to sell or recapitalize the complexes.Read more.
Gloomy Outlook Dims CB Ranking Victory
CB Richard Ellis dethroned Eastdil Secured last year as the nation's most active brokerage across the five major property types, but the victory came amid plunging sales activity and an increasingly gloomy outlook for 2009.Read more.
Retail Properties Leading Race to Bottom
After watching the sales of large shopping centers and malls plunge last year, retail specialists can take solace only from the fact that their sector seems likely to hit bottom before other segments of the commercial real estate market.Read more.
Silver Linings Scarce in Office-Sales Market
Coming off a year that saw a sharp drop in office-property sales, market pros expect activity to decline further in 2009, with transactions mostly involving buildings with assumable financing, forced sales or recapitalizations of overleveraged properties.Read more.
CB's Contract as FDIC Advisor Not Exclusive
CB Richard Ellis disheartened its rivals two weeks ago by announcing it had landed a contract to market foreclosed properties for the FDIC, but now the agency has clarified that the arrangement is nonexclusive.Read more.
Property Funds Hammered by 1-Year Losses
Several high-yield property funds launched by well-known operators in 2006 or 2007 posted poor 1-year net returns through midyear, and the list of weak performers is expected to swell as the fallout continues from the financial meltdown.Read more.