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Blackstone sells Glendale, Calif., property; Brookfield files NYC tower plans

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Blackstone sells Glendale, Calif., property; Brookfield files NYC tower plans

Commercial real estate

* Blackstone Group LP sold an office building in Glendale, Calif., for roughly $55.3 million to Canadian developer Onni Group, The Real Deal reported, citing unnamed sources. The buyer obtained roughly $52 million in financing from BMO Financial Group, the report noted, citing the unnamed sources.

The 14-story Glendale Gateway building at 700 North Brand Blvd., which spans 212,200 square feet, was acquired by Blackstone in 2007 for $60.2 million and is one of the final properties being sold from the Equity Office portfolio, the report noted. The buyer also owns the Glendale Center property nearby, having paid $83 million in March, according to the report.

* Brookfield Property Partners LP officially filed plans for Two Manhattan West, a 59-story office tower at 401 W. 31st St. in Manhattan, N.Y.'s Hudson Yards, Curbed (New York) reported. The plans for the roughly 1.75 million-square-foot project were filed with the city's Department of Buildings, the report noted.

The tower, expected to be completed in 2022, will be among the last in the company's Manhattan West development, according to the report.

* RioCan Real Estate Investment Trust agreed to sell seven retail properties to CT Real Estate Investment Trust for C$200 million. The properties span a total of roughly 1.3 million square feet of gross leasable area.

The deal reflects a weighted average going-in cap rate of 6.3% for the buyer.

Five of the properties are in the Ontario cities of Collingwood, Hamilton, Orillia, St. Catharines and Sudbury, while the remaining two are in Yorkton, Saskatchewan, and Oliver, British Columbia.

* Prologis Inc. sold a 12-building industrial portfolio in Fremont, Calif., for roughly $72 million to a partnership between BKM Capital Partners and Canyon Partners Real Estate, the Silicon Valley Business Journal reported, citing public county documents. Bayside Business Park spans 293,505 square feet and is 94% leased to multiple tenants, according to the report.

* Extell Development acquired $202 million worth of air rights at its 36-40 W. 66th St. project on Manhattan's Upper West Side, The Real Deal reported, citing records filed with the city. The company and partner Megalith Capital had previously filed plans for a 25-story, 262-foot tall building at the site, and the new air rights acquisition would pave the way for a 775-foot tall project, nearly tripling its original height.

The partners now plan a 127-unit condominium project that will be the tallest building on the Upper West Side, the report noted, citing Wallpaper magazine. Extell acquired $147 million worth of air rights from the Jewish Guild for the Blind and $55 million of air rights from Disney, according to the report.

Hong Kong-based Meridian Capital Ltd. acquired a stake in the project for $127.4 million in September, according to an earlier report.

* Related Cos. is expected to provide a $180 million construction loan for a revived hotel project in Manhattan's Times Square, The Real Deal reported, citing sources familiar with the negotiations. Sharif El-Gamal's Soho Properties and partners MHP Real Estate Services and Flintlock Construction Services previously planned a Dream Hotel at 560 Seventh Ave. and are now planning a Margaritaville hotel and restaurant, which would be the first of its kind in New York City.

Citing the sources, the report noted that the hotel would be similar in size to the scrapped Dream Hotel project with 29 stories and 243 rooms.

* An affiliate of Bridge Investment Group paid $58.5 million for the three-building Harris Corners Corporate Park in north Charlotte, N.C., the Charlotte Business Journal reported, citing Mecklenburg County real estate records. The 84% occupied properties total 357,654 square feet across 75 acres and have more than 40 tenants, the report noted, citing Trinity Partners, which represented the seller, New Boston Fund. The property previously changed hands for roughly $50 million in 2011, according to the report.

* National Real Estate Investor featured a report on the increasing pace of self-storage development and the resulting expectation of slower rent increases. The report noted, citing SkyView Advisors investment sales director Ryan Clark, that the self-storage industry does not yet produce enough reliable data regarding how much new space is coming online in 2017 and 2018.

* Another report from National Real Estate Investor, citing JLL, noted the continuing low vacancies in the life sciences industry. The vacancy rate for top life sciences clusters was just above 8% in the third quarter, while in the Cambridge, Mass., market, it was virtually zero percent, the report noted, citing Lisa Strope, vice president and director of research at JLL.

The day ahead

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

In Asia, the Hang Seng slid 0.02% to 29,680.85. The Nikkei 225 lost 0.04% to 22,486.24.

In Europe, as of midday, the FTSE 100 added 0.62% to 7,429.76, and the Euronext 100 was up 0.71% to 1,044.21.

On the macro front

The International Trade in Good, Redbook, the Federal Housing Finance Agency's House Price Index, the S&P Corelogic Case-Shiller home price index, the consumer confidence report, the Richmond Fed Manufacturing Index, the State Street Investor Confidence Index and Gallup's Economic Confidence Index are due out today.

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Data Dispatch: US REIT capital offerings up 22% YOY as of Nov. 15: Chart Watch: Publicly traded U.S. real estate investment trusts completed 15 capital offerings during the first half of November to raise $2.79 billion.

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