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UDR weighs merger with Mack-Cali; Google in talks for huge San Francisco lease

Commercial real estate

* UDR Inc. is considering a merger with Mack-Cali Realty Corp., Reuters reported, citing people familiar with the matter.

UDR is believed to be in discussions with Rizk Ventures CEO Thomas Rizk regarding a possible team-up for the potential transaction, the unnamed sources noted, adding that the U.S. multifamily real estate investment trust with a market capitalization of roughly $14 billion already informed Mack-Cali of its interest.

* Google LLC is in talks to lease up to about 1.8 million square feet spanning the entire office component of Brookfield Properties' $3.5 billion Pier 70 mega project in the Dogpatch neighborhood of San Francisco, the San Francisco Business Times reported, citing sources familiar with the discussions. The project will include a total of 2,150 homes and 2.3 million square feet of commercial space on 28 acres of former industrial land.

* The owners of the Industry City mega-project in Brooklyn, N.Y.'s Sunset Park received a $720 million refinancing package from a group led by The Blackstone Group Inc., Commercial Observer reported, citing unnamed sources. The lender group also includes SL Green Realty Corp., Bank of China and Deutsche Bank.

The 16-building waterfront project spans 6 million square feet over 35 acres. Plans are also underway for a $1 billion expansion of the project via rezoning, and a council vote is expected in the spring, the report added.

* A joint venture between The Fallon Co. and Barings sold the One Marina Park Drive office tower in Boston to an affiliate of Clarion Partners LLC for $482 million.

Completed in 2010, the 18-story office property in the Seaport district spans 491,573 square feet with street-level retail space. The LEED gold-certified building is fully let to tenants such as Fish & Richardson, Enel X, Intarcia Therapeutics, Gunderson Dettmer, Battery Ventures and Polaris Ventures.

* Kennedy-Wilson Holdings Inc., through various investment vehicles it manages, acquired five multifamily properties totaling 1,008 units in Washington, Oregon, Colorado, Nevada and New Mexico in an off-market transaction for $342 million. The company and its equity partners invested $122 million of equity in the portfolio, in which it has an average ownership of 38%.

* Spanish hotel company RIU Hotels & Resorts purchased the 531-room former Sheraton Fisherman's Wharf hotel at 2500 Mason St. in San Francisco from Acron U.S. Management Inc. for $270.3 million, the San Francisco Business Times reported. The property, now known as Riu Plaza, last traded for $200 million in 2016.

* The City Council of New York passed a bill that will require developers of certain residential projects to set aside 15% of their apartments for homeless people, The Real Deal reported. The bill will apply to new residential developments of 41 or more apartments if those projects receive financial assistance from the city, such as loans or tax breaks.

* Hong Kong developer Hopson Development Holdings Ltd. paid $115 million for a stalled development site in Midtown Manhattan, N.Y., The Real Deal reported, citing records filed with the city. The company aims to build a 34-story tower on the site that will total approximately 183,310 square feet and cost $225.0 million, including the purchase price. New Empire Real Estate Development was the seller of the site at 131-141 E. 47th St.

* Park Hotels & Resorts Inc. sold the 182-room Ace Hotel Downtown Los Angeles for $117.0 million, or $643,000 per key, before customary closing costs. The price, when adjusted for Park's anticipated capital expenditures, reflects a 5.4% capitalization rate on the hotel's projected NOI for 2019. The company will use the proceeds from the sale to repay a portion of its unsecured debt.

* Ryan Cos. US Inc. paid Ford Motor Co. $61 million for a 122-acre parcel in the Highland Park neighborhood of St. Paul, Minn. Ryan will develop 3,800 housing units, 265,000 square feet of office space, 150,000 square feet of retail space and 50,000 square feet of civic or institutional space on the site.

* WeWork Cos. Inc. backed out of a four-floor lease in a 31-story office building at 1660 Lincoln St. in downtown Denver, according to a joint statement given by WeWork and building owner Westport Capital Partners to Denver Business Journal. The coworking giant first negotiated for a lease of up to 100,000 square feet, which later came down to 55,000 square feet, the publication added. The move was part of WeWork's plan to "optimize the company's real estate portfolio," according to the statement.

Other real estate

* Real estate services company Newmark Group Inc. acquired Harper Dennis Hobbs Ltd., a London-based retail-focused advisory firm.

After the bell

* Morguard Corp. struck a definitive deal to buy out Temple Hotels Inc. for C$2.10 per common share in an all-cash transaction.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng was up 0.25% to 27,871.35, and the Nikkei 225 slid 0.20% to 23,816.63.

In Europe, around midday, the FTSE 100 inched up 0.19% to 7,588.55, and the Euronext 100 gained 0.61%% to 1,149.96.

On the macro front

The GDP report, the corporate profits report, the personal income and outlays report, the consumer sentiment report, the Kansas City Fed manufacturing index and the Baker-Hughes Rig Count are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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