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Blackstone goes on Christmas shopping spree; CyrusOne to cross the Atlantic

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Blackstone goes on Christmas shopping spree; CyrusOne to cross the Atlantic

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

A rolling Blackstone

* Ahead of the Christmas holidays, Blackstone Group LP dominated headlines with multiple confirmed and alleged property transactions. Its Blackstone Real Estate Income Trust Inc. unit is poised to buy a portfolio of 146 industrial properties in various markets across the U.S. for roughly $1.8 billion, with the deal slated to close in March or April 2018. The unit also picked up the Signature at Kendall apartment property in Florida's southwest Miami-Dade County in a pair of deals worth about $138.9 million, according to the South Florida Business Journal.

Additionally, the Puget Sound Business Journal reported that the private equity giant paid a total of $325 million to acquire three apartment buildings in Seattle. Crain's Chicago Business also reported that a Blackstone venture purportedly recorded the largest suburban Chicago office transaction in 2017 with the sale of the Central Park of Lisle office complex for $129 million.

Transatlantic transaction

* CyrusOne Inc. is set to enter Europe with its planned acquisition of Zenium Data Centers in a $442 million transaction scheduled to close in the first quarter of 2018. The company agreed to acquire the European hyperscale data center provider, which has four properties in London and Frankfurt, Germany, from a group of sellers led by Quantum Strategic Partners Ltd.

On a call, CyrusOne executives said the company plans to broaden its European presence in the years ahead as it seeks to consolidate its position and become a "true wholesale first provider" in a fractured market.

Staking out

* Ventas Inc. increased its investment in Atria Senior Living Inc. to keep its ownership stake in the seniors housing operator and tenant at 34%, and brought in private equity firm Fremont Realty Capital as a co-investor. Fremont Realty acquired 33% of Atria's management business from Atria's management, with the proceeds reinvested primarily in Atria.

* Brookfield Property Partners LP is reportedly looking to invest up to $200 million in a joint venture with Airbnb Inc.'s multifamily development partner, Niido. The partners will acquire up to six apartment complexes in Florida and convert them into communities that tenants may rent out through Airbnb for almost half the year, according to Bloomberg News.

Penny for your thoughts

* Real estate investment trusts are expected to see a mix of opportunities and challenges surrounding the Republican tax reform bill, which headed to the White House for the president's signature this week, according to industry observers. Mizuho analysts viewed the bill as "a net positive" for REITs, as they expect the lower tax rate for REIT dividends to fuel incremental demand for the stocks, but they warned that investors might explore other income options amid the anticipated rise in corporate profits and Treasury yields.

* The Canadian commercial real estate market is on track to record its third-best year in the nation's history, with a projected investment volume of roughly C$31.94 billion in 2017. Investment activity is expected to be driven in large part by increased demand for commercial properties in Toronto and Vancouver, as these markets continue to bring in domestic and foreign capital, according to CBRE Ltd.'s latest report.

California dealin'

* Douglas Emmett Inc. spent $143.6 million to acquire the 146,300-square-foot office building at 9401 Wilshire Blvd. in Beverly Hills, Calif. The company funded the acquisition with $32.3 million in assumed term loan, cash, and the issuance of operating partnership units to the seller.

* Forest City Realty Trust Inc. divested its stake in the South Bay Galleria regional mall in Redondo Beach, Calif., to QIC, marking the second closing in the parties' 10-mall portfolio deal valued at about $3.18 billion.

* CIM Group purchased Uber Technologies Inc.'s Uptown Station building in Oakland, Calif., and will complete the property's ongoing redevelopment. The transaction was valued at $180 million, according to the San Francisco Business Times, citing property records.

What happens in New York

* New York REIT wrapped up its sale of the building at 1440 Broadway in New York City for $520.0 million, raising about $192.9 million in net proceeds after paying off a $305.0 million mortgage loan at closing. The company further advanced its liquidation process with a trio of deals to sell three other in-city assets.

* Acadia Realty Trust disposed of a class A office and retail building in New York City's Bronx borough to real estate investment and management company Jamestown. The transaction value came to roughly $115 million, according to Crain's New York Business.

* Crain's New York Business reported that Cushman & Wakefield leased about 15,000 square feet of additional space at Vornado Realty Trust's majority-owned office tower at 1290 Avenue of the Americas in New York City, expanding its headquarters space in the building to roughly 170,000 square feet.

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