Scott Miller's Commercial Real Estate Update - September 2014


 

Calendar of Events
Building the Resilient City: Risks and Opportunities (2-Day)


ULI      


9/4/2014 Time TBD       


San Francisco, CA


 


RealShare:


Bay Area


9/4/2014 8:00AM-12:00PM        


San Francisco, CA


 


September Luncheon


CREW-Seattle  


9/11/2014 11:30AM       


Seattle, WA


 


Be ahead of CRE trends


Looking for market information and the latest news? We have a power-packed agenda at RealShare NEW JERSEY on September 11.


Town Hall: Economic Growth Update


Hear industry leaders exploring the future of the market. With incentives in play, what creates a balance between retention and growth?


New Development, Redevelopment and Repositioning: The Full Update


 


September Cocktail Connect


CREW-Seattle  


9/16/2014 5:00PM-8:00PM        


Seattle, WA


 


2014 September Breakfast Meeting


NAIOP-WA       


9/24/2014 7:00AM-9:00AM        


Seattle, WA


 


2014 Housing Summit (Master Builders Association of King & Snohomish Counties)


Master Builders


9/23/2014 7:30AM-11:30AM       


Bellevue, WA


 


Commercial & Multi-Family Chapter Meeting & Networking


REIA-Seattle    


9/25/2014 6:00PM-9:00PM


Seattle, WA


 


24th Annual Investor Real Estate Conference (3-Day Event)


PREA  


9/30/2014 TBD 


Los Angeles, CA


 


Western Division Conference


ICSC    


10/1/2014 TBD 


San Diego, CA


 


2014 October Community Enhancement Event


NAIOP-WA       


10/4/2014 7:30AM         


Seattle, WA


 


Development '13: The Annual Meeting for Commercial Real Estate (2-Day Event)


NAIOP 


10/7/2014 TBD 


San Diego, CA


 


Take the Opportunity to Get Howard Roth’s Perspective


As an industry veteran, look for sound advice and meaningful discussion when Howard speaks at RealShare NEW YORK on October 9 at the Roosevelt Hotel


 


RealShare APARTMENTS


DATE:


October 15-16, 2014


LOCATION:


Westin Bonaventure


404 S Figueroa St


Los Angeles, CA 90071


 


CCIM Thrive Fall Conference October 21-22, 2014 Los Angeles, CA


The CCIM Institute, the premier provider of commercial real estate education, has teamed up with GlobeSt.com for CCIM Thrive, Oct. 21–22 at the Westin Bonaventure in Los Angeles. Register to join our national audience of real estate professionals looking to implement best business practices in an effort to thrive in an ever competitive marketplace.


 


RealShare Industrial 2014


Nov 4-5, 2014


The Viceroy Miami


We are all busy gearing up for the fall, so let us make things easy for you. Register now for RealShare INDUSTRIAL and take advantage of RealShare’s room block at the Viceroy Miami. Stay with the attendees from across the country and spend more time networking with the sector’s elite.


 


Local



The Wolff Co., an active developer of apartment projects in the Puget Sound region, has acquired a controlling interest in a major downtown Bellevue project, with construction scheduled to start soon.

 


It was the buyers' first deal and it took them a year to find it. Now, four years after acquiring Waterfront Place on the shore of Lake Washington in Kirkland, Talon Private Capital is selling the six-year-old office building.

 


Three apartment complexes in the south Seattle area have been purchased by Kennedy-Wilson Holdings Inc. for $127 million.

 


Vulcan Real Estate is now contemplating building a mid-rise office building across the street from Lake Union Park, though a company official on Monday said that plan is very preliminary.

 


The Gatsby Apartments, a new complex on Seattle's Capitol Hill, sold Thursday for just over $35.5 million, according to public records.

 


The First Presbyterian Church on Tuesday sold a prime development site on the east side of Interstate 5 in downtown Seattle, public records show.

 


Washington Holdings will start building a large lab and office building on the east side of Seattle's Lake Union in October, Chief Operating Officer Ric Anderson said Tuesday.

 


A Minneapolis company called CSM is the latest real estate developer to jump on the "let's build a hotel in the Puget Sound region" bandwagon.

 


Lobsang Dargey, a former Buddhist monk from rural Tibet who also happens to be Andre Agassi's brother-in-law, is hitting his stride as a commercial real estate developer in Seattle, where he has two big apartment projects teed up.

 


Costco Warehouses Inc. is expanding in Issaquah, taking over one of the buildings at Sammamish Park Place that Microsoft had leased and said it was abandoning.

 


Holland Partner Group, known in Seattle as a developer of big apartment projects, has begun building its first-ever office building. The six-story project, 1101 Westlake, will rise along the southwest corner of Lake Union

 


Weyerhaeuser plans to sell its large headquarters campus in Federal Way, the company said in a Tuesday news release announcing Weyerhaeuser's move to Seattle's Pioneer Square.

 


When Seattle real estate developer Touchstone officials said the company was starting construction of their NorthEdge lab-office project, the question was what company would move into the building

 


A limited liability company led by a Seattle apartment developer on Wednesday paid $12.4 million for a 105-year-old brick office building by Pike Place Market.

 


The state Court of Appeals this week sided with the city of Kirkland against Bellevue real estate developer Lobsang Dargey's proposed high-end apartment project on Lake Washington.

 



In early May, David Hamamoto surprised analysts on a conference call with his declaration that his company, NorthStar Realty Finance Corp. NRF +3.68% , wasn't interested in acquiring a large real-estate company it had pursued for months.

 


A Chinese real-estate investor new to the U.S. is looking to make a splash in downtown Los Angeles, which has seen a flurry of new development and property sales lately.

 


In the latest sign that companies are allowing their executives to travel lavishly again, a new wave of luxury hotels is set to open in New York and other major cities as developers seek to cash in on the rejuvenated demand for high-end lodging.

 


PEARLAND, Texas—The medical-office sector is undergoing a broad transformation with the rise of master leases.

 


After a two-year buying spree, institutional real-estate investors have cooled off a bit, according to new figures from RealtyTrac.

 


When Wayne Ratkovich bought the 28-acre former headquarters of Hughes Aircraft Co. RTN -0.14% just north of Los Angeles International Airport with the intent of converting it to modern office buildings, he figured it would take a while to attract tenants.

 


Fairway America, LLC (“Fairway”), a Portland Oregon based small balance real estate fund advisory and investment firm, announced today that its newest fund, Fairway America Fund VII, LP (“Fund VII”) has invested in Stallion Texas Real Estate Fund (the “Fund”) of Austin Texas, a fund Fairway helped create and launch.

 


After several false starts, the economy is finally gaining ground, and stronger growth is boosting the outlook for all of the major commercial real estate sectors, according to the National Association of REALTORS®’ quarterly commercial real estate forecast.

 


TUSTIN, CA—As tenants with increased parking needs—like health clubs, medical office and restaurants—pick up slack in retail centers, issues over parking emerge, experts tell GlobeSt.com

 


TUSTIN, CA—Many retail landlords are dusting themselves off from the recession and are now ready to put money into design improvements at their centers, according to Matt Hammond, director of retail brokerage for Coreland Cos.

 


 


MUMBAI—Encouraged by India's strengthening economy and the pro-business agenda of Prime Minister Narendra Modi, foreign investors have begun to return to the India real-estate market after fleeing the country in the wake of the financial crisis

 


When Yash Gupta was preparing to head a new India office for Gerald Hines, the legendary real-estate developer told him, "I don't want any home runs yet," Mr. Gupta recalls. "If you swing for the fences you'll end up making mistakes."

 


MUMBAI— Narendra Modi has been the prime minister of India for less than three months, but already he has endeared himself to real-estate investors and developers by pressing to create a real-estate-investment-trust industry in the country.

 


Forest City Ratner Cos.' giant, 6,400-unit development near the new Barclays Center in Brooklyn has faced delays for over a decade.

 


SHANGHAI—A group of foreign investors suffered steep losses when it recently exited a Chinese property fund once valued at $1 billion, according to the fund's adviser, in a cautionary tale for those seeking to profit from China's real-estate market.

 


SHANGHAI—The glut of vacant homes across China owned by small investors has fueled a cottage industry: companies that help owners rent their homes for short-term stays

 


DUBAI—Next to the fishing dhows along the waterfront of this city's creek, a villa with six bedrooms and three pools is selling for $15 million—part of a $600 million Palazzo Versace hotel and condo development, with 215 hotel rooms and 169 condos and villas.

 


Aug 27 (Reuters) - Global private equity giant Carlyle Group is in advanced talks with China Vanke Co Ltd, the country's largest developer, to buy stakes in nine of its shopping malls, two sources with direct knowledge of the matter told Reuters.

 


A U.S. real-estate investor could become one of the largest hotel owners in Brazil if the firm succeeds in a tender offer that values Brazil Hospitality Group BHGR3.BR -0.40% at $1 billion.

 


Slate Retail REIT ("Slate Retail" the "REIT") (TSX: SRT.U / SRT.UN) today announced that it has successfully completed the previously announced acquisition of a grocery-anchored shopping center located in Waterbury, Connecticut.

 

 

MultiFamily

 


Slowly but surely, lenders are regaining their appetite for risk in South Florida's red-hot new-condominium market.

 


The battle over the stalled Chicago Spire project, one of the most high-profile real-estate developments clobbered by the downturn, has taken another step toward being resolved.

 


Developers are building apartment units at breakneck speed to fill Houston’s housing shortage and demand for resort-style living.

 


MCLEAN, VA--(Marketwired - Aug 6, 2014) - Freddie Mac (OTCQB: FMCC) today priced a new offering of Structured Pass-Through Certificates ("K Certificates"), backed exclusively by LIBOR-based, floating rate multifamily mortgages with five- and seven-year terms.

 


If you're looking for income but don't want to take on much risk, consider small apartment REITs.

 


By now, analysts had expected sales of multifamily properties to cool as a large number of newly built projects opened to renters, but that is not happening.

 


The Houghtons, the family that founded glassmaker Corning eight generations ago, run their multifamily office like a co-op. That's not a gimmick. Market Street Trust, as the multifamily office is called, manages $1.3 billion for 40 families.

 


Bob Aumiller, president of MacKenzie Commercial Real Estate Services LLC, is the latest real estate expert to voice concern about the multifamily housing market in the Baltimore area.

 


After plunging in June, housing starts and housing permits recovered in July, printing at 1,093,000 and 1,052,000, respectively.

 


MCLEAN, VA--(Marketwired - Jul 31, 2014) - Freddie Mac (OTCQB: FMCC) released today its mid-year multifamily outlook, showing a strong market with vacancy rates at a 13-year low, a large cohort of young adult renters and potential renters, and a continued demand for apartments that is expected to meet the new supply of units being constructed.

 


 



WASHINGTON, DC—US REITs outperformed the broader equity markets for the first six months of 2014, according to NAREIT, driven by strong fundamentals in the sector and a favorable economic environment.

 


MUMBAI— Narendra Modi has been the prime minister of India for less than three months, but already he has endeared himself to real-estate investors and developers by pressing to create a real-estate-investment-trust industry in the country.

 


It's been a while since I wrote on Kimco Realty (NYSE:KIM), the New York-based REIT and the nation's largest landlord of shopping centers. If you recall, I wrote an article on Kimco with the title, "Nobody Does It Better" (over two years ago)

 


We prefer the yield, stability, and growth prospects of the triple-net structure over RIDEA.

 


American Realty Capital Properties, Inc is a REIT which operates in two segments, Real Estate Investment ("REI") and Cole Capital, the company's private capital management segment.

 


With over 25 years of experience investing in shopping centers I have learned the difference between a good, a bad, and an ugly retail center.

 


American Realty Capital Properties (NASDAQ:ARCP) is the leading net-lease retail real estate investment trust, or REIT, domiciled in the United States.

 


However, within my short-list of best CEOs there is one that stands out above the rest. This favored REIT executive has not only demonstrated an extraordinary track record of dividend performance,

 


State securities regulators are pushing for restrictions on a popular type of property investment trust, saying added protections are needed for small investors who may not fully understand the risks.

 


A new Nashville-based company formed to invest in health care properties has raised nearly $164 million and made its first five acquisitions.

 


If you're looking for income but don't want to take on much risk, consider small apartment REITs.

 


Slate Retail REIT ("Slate Retail" the "REIT") (TSX: SRT.U / SRT.UN) today announced that it has successfully completed the previously announced acquisition of a grocery-anchored shopping center located in Waterbury, Connecticut.

 


 


Total spending on private construction projects declined 1% in June 2014 to a seasonally adjusted annual rate of $685.5 billion, compared with $692.0 billion the previous month.

 


Farmland values in the U.S. Midwest remained mostly stagnant in the second quarter, the latest sign of a slowdown in the market after a multiyear boom, according to Federal Reserve reports on Thursday.

 


TUSTIN, CA—As tenants with increased parking needs—like health clubs, medical office and restaurants—pick up slack in retail centers, issues over parking emerge, experts tell GlobeSt.com.

 


A new hotel brand thinks it can win a devoted following by offering guests a chance to relive the college experience.

 


The economy expanded even more rapidly than previously estimated in the second quarter, the government said Thursday

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