Scott Miller's Commercial Real Estate Update - December 2014


 

 

 

 

 

 

Calendar of Events


Eminent Domain 5th Annual


December 9 & 10, 2014 -- Seattle, WA


"This seminar is designed to assist seasoned practitioners looking for new insights as well as new lawyers unfamiliar with the eminent domain process. The program will cover eminent domain basics, as well as reviewing complex appraisal problems and emerging issues involving e-discovery."


 


CREW Seattle & Sound Luncheon


December 11, 2014


11:30am - 1:00pm


 


30th Annual Trends Conference & Trade Show


IREM


December 11, 2014


Seattle, WA


7:30am - 5:00pm


 


CREW Cocktail Connect


Tue Dec 16, 2014 5:00 PM
Location: Palomino


1420 Fifth Avenue


Seattle, WA 98101


 


2014 December Breakfast Meeting


NAIOP WA


Sheraton


1400 Sixth Avenue


Seattle, WA 98101


December 18, 2014


7:00am - 9:00am


 


Local


 


It's official: Construction starts on condo tower on Seattle's First Hill


A joint venture of Lowe Enterprises and Swedish pension fund adviser Alecta on Monday said they have begun construction of Luma, a 24-story condominium tower at 1321 Seneca St., on Seattle's First Hill.


 


Trouble for big office property in Issaquah


A loan on a large office property in Issaquah has been sent to a special servicer, meaning the property owner could face foreclosure, according to a report by Trepp, a company that tracks the commercial real estate and banking industries


 



Microsoft Corp. co-founder Paul Allen didn’t set out to be a real-estate tycoon, but he became one after turning a grim stretch of Seattle that fell into his lap into a thriving neighborhood that houses Amazon.com Inc. ’s headquarters.

 


Maybe there's something unlucky about a corner near Pike Place Market where where the Russell Investments Center rises 42 stories at Second Avenue and Union Street.

 


The private real estate development community will get a crack at developing a property where the city of Federal Way has been trying for years to create a downtown

 


Ivanhoe Cambridge, the real estate arm of a Canadian pension fund adviser, is buying two office properties in downtown Seattle, according to a report in the trade publication Real Estate Alert.

 


Seattle real estate development company Urban Visions on Wednesday unveiled plans to turn a seven-acre industrial property at the terminus of Interstate 90 into a 1-million-square-foot office and retail campus called Stadium East

 


This week a Unico vice president said that the Seattle real estate company is "actively evaluating" more investment opportunities in Pioneer Square. He apparently wasn't kidding.

 


Washington State Convention Center officials on Monday said that a team made up of LMN Architects, GGN and SHoP is the "apparent successful submitter" in the competition to design a major expansion of the center in downtown Seattle.

 


Initially 14 groups expressed interest in building housing and commercial space on top of and around Seattle's nearly completed Capitol Hill light-rail station. Now there are four that have submitted proposals.

 


Wright Runstad & Co. plans to take out the construction permits next year for the first two office buildings in the big Spring District project in Bellevue, company President Greg Johnson said.

 


Canadian real estate company Ivanhoé Cambridge is flexing its investment muscle again in the United States with a $280-million (US) deal for office space in Seattle, one of America’s strongest urban economies.

 


BELLEVUE, WA—Housing enthusiasm among real estate business leaders overall is still strong, but has definitely cooled down during the last two years, says a locally based source.

 


 


 


Private-equity firms are amassing a growing pile of money from investors looking to bet on rising commercial-property prices around the world.

 


Microhotels are hot in Manhattan, and operators hope they will play in the rest of America, too.

 


For the past 100 years, virtually all buildings over a few stories tall have been constructed out of concrete and steel. But some architects and builders are promoting an alternative they are positioning as environmentally friendlier: good old-fashioned wood.

 


Slowly but surely, U.S. office construction is on the rise.

For much of the six years since the economy tumbled in 2008, office developers haven’t been very busy. Save for the occasional city with a booming industry – led by Houston and Silicon Valley— new office construction has been sparse.

 


As Facebook Inc. moves this week to show off its Frank Gehry-designed offices in Midtown South, it is intent on becoming a force in the city’s tech scene.

 


The planned site of Astoria Cove, the first major development project to be shaped from early stages by Mayor Bill de Blasio , sits on a peninsula jutting into the East River, just out of reach of Gracie Mansion.

 


National home-builder Lennar Corp. has joined with mall-owner Macerich Corp. on plans to develop a luxury-outlet mall as the anchor of a redevelopment of San Francisco’s Candlestick Point.

 


Blackstone Group LP has reached a deal to sell a midtown Manhattan office tower for about $2.25 billion to a venture led by Canadian property investor Ivanhoé Cambridge, according to people familiar with the terms of the sale.

 


David Simon is looking to expand his mall empire by buying shares of competitor Macerich Co. in what investors are betting is the first step in a takeover bid.

 


A blue-chip roster of real-estate investors, financial firms, and even a Grammy-winning rap artist are among the groups angling to buy New York’s famed Plaza Hotel

 


IRVINE, CA—For the past decade the question about regional malls falling to the wayside has been a great concern for owners and retailers.

 


SOUTHERN NEVADA—After five years of no speculative development, the Southern Nevada region now has more than 4.6 million square feet of planned industrial buildings, according to Colliers International.

 


 


SHANGHAI—Chinese conglomerate Fosun International Ltd. is looking to expand its real-estate holdings abroad, even as foreign competitors bridle at the high prices Chinese buyers have been paying for commercial property, homes and other assets.

 


Italian real estate company Sorgente Group has postponed a planned IPO until next year.

 


Brazilian self-storage operator GuardeAqui and Chicago-based investment firm Equity International have added Ranger Co-Investment Fund III as an investment partner. The fund acquired a stake in the companies’ joint venture established in February with Morgan Stanley Alternative Investment Partners (AIP). The investment will help GuardeAqui grow its operating portfolio, company officials said in a press release.

 

MultiFamily

 


During the Great Recession, the multifamily sector was the silver lining of the very large, dark cloud that was looming over the commercial real estate industry.

 


“We’re not in a boom market,” says Nick Ryan, CEO of The Marquette Companies, a Naperville, Ill.–based real estate firm with a portfolio of 11,000 apartment units. “We’re in a strong, healthy market that’s going to last for a long period of time.”

 


Unsurprisingly, the West/Mountain/Pacific region received the highest ratings from respondents. It had an average rating of 7.87 with 11.5 percent of respondents ranking it 10, 22.2 percent ranking it ninth and 22.6 percent ranking it eighth.

 


Nearly six out of 10 respondents anticipate that national apartment occupancies will increase over the next 12 months. Roughly 22 percent say they’ll decrease, and 20 percent expect no change.

 


COSTA MESA, CA—M.V. Partners has completed Azulón at Mesa Verde, a 215-unit age-qualified market-rate apartment community.

 


SAN FRANCISCO—Partners Oyster Development Corp. and Tricon Capital have secured a $143.5 million construction loan for the development of 1634-1690 Pine Street, which will be named Rockwell. National Real Estate Advisors provided the financing, with arrangements made by JLL.

 


LOS ANGELES—Capital One Multifamily Finance reviews poll results from 200 experts at the RealShare Apartments conference last month on what sort of financing would be most important to their business and whether they would be buyers or sellers in 2015

 


WASHINGTON, DC—Multifamily is the only asset class where underwriting probably will not get any looser. But all other asset classes will see stretching standards and greater risk-taking.

 


NEW YORK CITY—In a discussion covering the office, retail and multifamily sectors, a group of industry executives pointed up recent trends that have changed the market along with others that are on the horizon.

 


ATLANTA—Multi Housing Advisors' Tyler Averitt tells GlobeSt.com's Jennifer LeClaire demand for apartments in Atlanta is at an all-time high.

 

DISTRESSED

 


A loan on a large office property in Issaquah has been sent to a special servicer, meaning the property owner could face foreclosure, according to a report by Trepp, a company that tracks the commercial real estate and banking industries

 


The nationwide mortgage delinquency rate in October fell to its lowest level in seven years, according to Black Knight Financial Services' "First Look" at October 2014 Mortgage Data released on Friday.

 

 



 


S&P Dow Jones Indices, the publisher responsible for the S&P 500 index, is elevating real-estate companies to a new level of distinction in the investment world.FS

 


Sears Holdings (SHLD) has failed to impress investors as a growth stock in recent years, so now it's exploring a new income-producing corporate structure that could yield big dividends if it pans out. Shares of the parent company of Sears and Kmart soared 30 percent last week after it announced that it's considering forming a real estate investment trust -- or REITs

 


Fund manager Jonathan Litt is launching an activist campaign to replace the board of Associated Estates Realty Corp. , a real-estate investment trust based in Ohio that specializes in multifamily apartment buildings.

 


Caesars Entertainment Corp. has approached senior creditors about a plan to convert the casino company’s largest unit into a real-estate investment trust as it works to restructure $18.4 billion in debt, according to a regulatory filing.

 


Office-building landlord Paramount Group Inc. raised $2.29 billion in its initial public offering Tuesday, becoming the largest-ever IPO by a U.S. real-estate investment trust and helping breathe life into an anemic year for new property stocks

 


The last week saw a series of strategic moves by gambling companies in order to gain a competitive advantage over their peers.

 


 


Microhotels are hot in Manhattan, and operators hope they will play in the rest of America, too

 


MIAMI—For the past year, Swire Properties Inc. has touched the imagination of Floridians with talk of building America’s first “Climate Ribbon,” an environmental management system that uses nature to cool the outdoor air.

 


In the past year, the real-estate sector has seen a host of big commercial landlords like Hilton Worldwide Holdings Inc., Paramount Group Inc. and Store Capital Corp. turn to initial public offerings to raise money.

 


ATLANTA—Gary Saykaly is reading to make his mark on Franklin Street. The former Cushman & Wakefield retail investment sales executive hit the ground running when he joined the firm as senior director in October. Now, he’s looking into 2015.

 

 

RE Blogs Education

 

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