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Google, LinkedIn swap space; Brexit woes hit commercial real estate service firms

Commercial real estate

* Federal RealtyInvestment Trust appointedDan Guglielmone CFO, executive vice president, and treasurer, effective Aug.15. He previously served at VornadoRealty Trust since 2003 as senior vice president, acquisitions andcapital markets.

* The Wall Street Journal reportedthat a deal slowdown brought on by Brexit-induced shocks will result in reducedcommissions for commercial real estate service firms, in what was analready-slowing global market. Shares of companies including , , ColliersInternational Group and Savills PLC have taken hits.

Thepaper also said Cushman & Wakefield will likely need to postpone itsanticipated IPO, and merger activity in the sector is expected to slow down,while U.S.-focused firms like Newmark Grubb Knight Frank could potentiallybenefit from investors' increased interest in American real estate.

*Kennedy-Wilson Holdings Inc.snapped up a 430-unit multifamily asset in the Seattle suburb of Auburn, Wash.,for $81 million. The company saidit secured a 10-year loan amounting to $62.6 million to finance the acquisition.

*American Hotel Income PropertiesREIT LP agreedto buy two Embassy Suites by Hilton hotels, in Dallas and Tempe, Ariz., forapproximately $57.6 million. The recentlyannounced acquisition of the two hotels, with a total of 529 rooms,is expected to close by early September, subject to customary conditions.

*AvalonBay Communities planning a 250-unit residential project on a 3.1-acre site in Boston'sBrighton neighborhood, the BostonBusiness Journal reported,citing a filing with the Boston Redevelopment Authority.

TheAvalon Brighton project, at 139-149 Washington St., adds to two otherresidential schemes on the street that will include 753 units between them,according to the report.

*City Office REIT Inc.said it closed the$49.8 million acquisition of the ResearchPark Collection in Orlando. The property comprises five officebuildings and a 10-acre land parcel. The buildings are 93% occupied.

*Internet and technology giants GoogleInc. and LinkedInCorp. agreed to exchange land and property in Silicon Valley andthe San Francisco Bay area "worth hundreds of millions of dollars,"with no money changing hands, Bloomberg News reported.

The Silicon Valley Business Journal also reportedon the news. Google will gain certain LinkedIn holdings in the North Bayshoredistrict of Mountain View, Calif., paving the way for its planned newheadquarters, while LinkedIn will acquire properties in Sunnyvale and elsewherein Mountain View.

Theswap includes 1 million square feet of existing buildings and 2.4 million squarefeet of future development capacity, the SiliconValley Business Journal report said, citing executives.

*Online retailer believed to have inked a deal to occupy a 397,800-square-foot industrialbuilding in southwest Charlotte, N.C., for a new receiving center, the Charlotte Business Journal reported.

* A480,000-square-foot office and light industrial development in Brooklyn, N.Y.,got the green light after two New York City Council committees approved azoning change, with the full council expected to follow suit, Bloomberg News reported.

TobyMoskovits' proposed scheme at 25 Kent Ave. near the Williamsburg waterfront issaid to be the first new office-led development in the borough in "morethan a generation," according to the report.

*Tishman Speyer's $700 million WeWork-anchored in the Long Island Cityneighborhood of Queens, N.Y., has found another anchor tenant in high-enddepartment store Bloomingdale's, Crain'sNew York Business reported.

TheMacy's Inc.-owned chain has agreed to take up around 550,000 square feet ofoffice space at the 1.1 million-square-foot, two-tower project, the reportsaid, citing unnamed sources.

*The Journal featured a reporton the "rapid" rise of co-working office space firms, in a marketthat has low barriers for new contenders, and the challenges this poses for thesector's giant, WeWork Cos.

*The student housing sector saw a record $2.6 billion worth of capitalinvestments in the first quarter, reaching a post-2006 quarterly record, National Real Estate Investor reported,citing JLL managing director, Lucy Fletcher. The sector's sales volume recordeda 66.2% year over year growth, the report said.

*Second-quarter net warehouse leasing in the Dallas-Fort Worth area totaled 6.6million square feet, marking one of the highest volumes in the last decade, The Dallas Morning News reported,citing CBRE. The publication noted that 6.2 million square feet of newwarehouse space was also delivered during the first quarter, with more thanhalf of the buildings already leased.

*Asking rents for industrial space in New Jersey were up 10% year over year in thesecond quarter, surpassing the record set in the previous quarter, reported,citing real estate services firm Transwestern.

After the bell

*Pure Multi-Family REIT LPplans to internalizeits management after completing a roughly C$33.9 million equity offering.

The day ahead

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

InAsia, the Hang Seng was up 0.46% to 21,322.37. The Nikkei 225 rose 0.84% to16,231.43.

InEurope as of midday, the FTSE 100 climbed 0.27% to 6,698.80, and the Euronext100 rose 0.28% to 863.68.

On the macro front

Mortgage applications increased 7.2% from one week earlier,according to data from the Mortgage Bankers Association's Weekly MortgageApplications Survey for the week ending July 8. On an unadjusted basis, themarket composite index dropped 14% compared to the previous week.

Theimport and export prices report, the Atlanta Fed's business inflationexpectations survey, the EIA petroleum status report, the Beige Book and theTreasury budget are due out today.

Now featured

: The company is likelyto hire an internal candidate to replace Lauralee Martin, and CFO Tom Herzogand Chief Investment Officer J. Justin Hutchens are viewed to be among theleaders, analysts say.

: TheJuly 12 North American property news roundup also features the latest leasingtransactions by Columbia Property Trust and Hartman Short Term IncomeProperties XX.

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