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Discovery eyes new HQ post-merger; Deutsche Bank provides $180M loan in NYC deal

Commercial real estate

* Recently merged companies Discovery Communications Inc. and Scripps Networks Interactive Inc. will consolidate their headquarters in Manhattan, N.Y., at 230 Park Ave. South at 19th St., taking up roughly 250,000 square feet of office space, the New York Post reported, citing unnamed sources.

Discovery reportedly plans to sell its 550,000-square-foot headquarters building in Silver Springs, Md., while Scripps will move out of its Manhattan space at 1180 Sixth Ave. and at the Chelsea Market building at 75 Ninth Ave, which Google Inc. is buying for more than $2 billion.

Discovery had previously narrowed its search to two other Manhattan buildings, but opted for the TF Cornerstone property instead. The source told the publication that no lease has been signed yet, but other tenants in the building have agreed to vacate early.

* Oxford Properties Group landed a $180 million loan from Deutsche Bank for its $278 million acquisition of the Aalto57 mixed-use property in Manhattan's Sutton Place neighborhood, Commercial Observer reported, citing unnamed sources. The company was reported to be seeking between $150 million and $180 million in funding in early February.

The 313,283-square-foot 1065 Second Ave. property comprises 169 luxury rental residences, a 32,000-square-foot commercial podium leased to Bank of America and a 34,000-square-foot condominium leased to Whole Foods, as well as residential condos.

* Jeff Sutton's Wharton Properties is taking over SL Green Realty Corp.'s $100 million interest in three interlinked properties in Manhattan's Soho district, The Real Deal reported, citing a filing on the Tel Aviv Stock Exchange. According to the filings, SL Green will retain its 20% stake. Wharton Properties holds a 50% stake and an unnamed partner owns the remaining 30% stake.

Wharton Properties is acquiring the $60 million in mezzanine loans and $40 million in preferred equity that SL Green had provided when the partners acquired the 11-story, 194,500-square-foot office and retail complex for $340 million in 2014. Wharton will finance the acquisition with proceeds from bonds raised in Tel Aviv in early 2017, the March 12 report noted.

* Norway's $1 trillion wealth fund poured 21.5% of its unlisted real estate investments into New York City in 2017, compared to 19.2% in 2016, Reuters reported, citing a fund report. New York was at the top spot in 2016 but lost out to London in 2017, according to the report.

* Real estate investment advisory company NW1 Partners announced the closing of its NW1 Washington DC Urban Retail Venture, which aims to create a portfolio of urban retail assets worth $175 million in aggregate.

The venture, established in partnership with urban retail specialist Martin-Diamond Properties, will invest in properties located in the "millennial-influenced" submarkets of Washington, D.C., NW1 Partners said in a release.

* Lightstone Group landed approval from the LA Planning Commission for its Fig + Pico mixed-use project in Los Angeles, The Real Deal reported, citing CoStar. The project comprises a 38-story tower with 775 hotel rooms and 11,000 square feet of retail space, and a second tower rising 27 stories with 378 rooms and 2,145 square feet of retail space.

The scheme, across from the Los Angeles Convention Center, still needs final approval from the City Council, the report noted. The developer intends to have three hotel brands in the two buildings.

* Price Brothers' roughly $100 million apartment project in Overland Park, Kan., received a rezoning approval recommendation from the Overland Park Planning Commission, the Kansas City Business Journal reported. The 12.7-acre Sorrento Place project will feature 500 market-rate apartments in two six-story buildings, along with 907 parking spaces.

Bart Lowen, Price Brothers vice president of development, said the company expects to commence work by spring 2019, the report noted. The site was previously zoned for office space, an assisted-living facility and a standalone parking garage.

* The Centrum tower in downtown Dallas' Oak Lawn neighborhood is on the market along with a neighboring building, with the properties expected to sell for up to $170 million, The Dallas Morning News reported. Quadrant Investment Properties LLC acquired the office and retail project in 2015 and has spent $25 million on renovations.

Quadrant and partner Angelo Gordon & Co. later acquired the 13-story Park Creek Place office building next door. The two assets span more than 500,000 square feet and are 80% leased. The residential units atop Centrum are not part of the sale, the report noted.

* A development team landed approval for a nine-story, 290,000-square-foot office project near Aventura, Fla., that is already more than 50% pre-sold, The Real Deal reported. The 188 Aventura Centre building will feature 53 office condos and 11,000 square feet of retail space.

The developers are BM2 Realty, MG3 Developer Group, Scheck Group and Solomon Capital Management.

After the bell

* Blackstone Real Estate Income Trust Inc. paid roughly $1.8 billion to buy a portfolio of 146 last-mile infill warehouses and distribution buildings across the U.S.

* HNA Group Co. Ltd. is considering a full or partial sale of its 25% stake in Hilton Worldwide Holdings Inc.'s timeshare spinoff Hilton Grand Vacations Inc., The Wall Street Journal reported, citing people with knowledge of the matter.

The day ahead

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

In Asia, the Hang Seng rose 0.02% to 31,601.45, while the Nikkei 225 climbed 0.66% to 21,968.10.

In Europe, around midday, the FTSE 100 dropped 0.02% to 7,213.59, and the Euronext 100 rose 0.21% to 1,034.61.

On the macro front

The NFIB Small Business Optimism Index, the Consumer Price Index and the Redbook are due out today.

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