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Cominar REIT agrees to C$1.14B portfolio sale; Penn National to acquire Pinnacle

Commercial real estate

* Cominar Real Estate Investment Trust agreed to sell its entire non-core-market property portfolio for total gross proceeds of C$1.14 billion to Slate Acquisitions Inc. The move is part of the company's plan to reduce debt and focus on its core markets in Québec and Ottawa.

The deal includes 97 properties spanning 6.2 million square feet located in the Greater Toronto Area, the Atlantic Provinces and in Western Canada.

* MVP REIT Inc. subsidiary MVP Merger Sub LLC completed its merger with MVP REIT II Inc. The combined entity, named The Parking REIT Inc., has an investment portfolio worth more than $280 million, comprising 44 parking facilities across 15 U.S. states.

* The city of Vallejo, Calif., is soliciting development proposals for 157 acres on the former Navy shipyard on Mare Island, north of Lennar Corp.'s 7.5 million-square-foot project, the San Francisco Business Journal reported.

Plans for car maker Faraday Future's 1 million-square-foot manufacturing center on the northern site were canceled in March, the report noted.

* Eagle Canyon Capital LLC is under contract to buy the two-building, 805-room Fairmont Hotel in San Jose, Calif., for around $250 million, the Silicon Valley Business Journal reported, citing property owner Maritz, Wolff & Co.

According to the report, Lew Wolff, the company's co-founder and chairman, said the deal is expected to close in January 2018, and would only include the hotel portion of the 170 S. Market St. property. The retailers on the ground floor of the 14-story, 264-room annex building are owned by separate entities and will be excluded from the sale, the report added.

* Stationside Partners, an affiliate of Ram Realty Services LLC and Pinnacle Housing Group LLC, sold the 336-unit arc Parc Station apartment complex at 1900 to 2300 N. 29th Ave. in Hollywood, Fla., to Parc Station Acquisition for roughly $90.3 million, the South Florida Business Journal reported. The property includes 17 three-story buildings covering 376,560 square feet on a 14.5-acre site.

* Isaac Kassirer's Emerald Equity Group paid $61.5 million to buy three rental buildings in Manhattan, N.Y.'s Harlem neighborhood from the Orbach Group, The Real Deal reported. The multifamily assets, located at 320 and 346-354 Manhattan Ave. and 312-314 W. 114th St., comprise 130 rental apartments across 113,000 square feet.

* James Development bought 72 condominium units at the 493-unit Manhattan House building at 200 E. 66th St. in Manhattan from O’Connor Capital Partners for $68.4 million, The Real Deal reported. The seller had listed 74 units at the property in August for $83.3 million, according to the report.

* New York REIT is selling the seven-story, 82,000-square-foot Interior Design Building office at 306 E. 61st St. in Manhattan to JMC Holdings for roughly $47 million as part of its continuing asset liquidation program, Crain's New York Business reported.

* New City LLC is planning a $750 million mixed-use project on the Atlanta's Beltline's Eastside Trail, the Atlanta Business Chronicle reported. The developer paid $34 million for the 10-acre former Georgia Power site in October and plans to develop it into a roughly 2 million-square-foot complex with two 12-story office buildings, a hotel with up to 75 rooms, 200,000 square feet of retail space and at least 700 residential units, according to the report.

* Boston Properties Inc. and Bernstein Cos. have secured approval from the Montgomery County Planning Board for the site plan of the proposed Marriott International Inc. headquarters in Bethesda, Md., after agreeing to cover part of the costs for additional road improvements proposed by the county transportation department. The additional costs that the developers had said could not be absorbed into the deal could have totaled more than $1 million, the report added.

The $600 million project will include an 825,000-square-foot office building to be developed by Boston Properties at 7750 Wisconsin Ave. and a 230-room, 12-story Marriott hotel to be developed by Bernstein at 7707 Woodmont Ave.

* Boston's planning and development agency greenlighted the $550 million, 1,054-room Omni hotel to be developed by Omni Resorts and Hotels and New Boston Hospitality LLC on Summer Street across from the Boston Convention and Exhibition Center in the Seaport District, the Boston Business Journal reported.

The project, expected to open in 2021, is slated to include two 21-story hotel towers, 120,000 square feet of convention, banquet, meeting and pre-function space, 35,000 square feet of restaurant space, along with retail and other features.

* Lincoln Property Co. secured a $74.8 million construction loan from Trez Forman Capital Group for its 26-story Church Street Plaza commercial complex in downtown Orlando, Fla., The Real Deal reported. The project will include 200,000 square meters of office space and a 180-room hotel, to be developed by Kolter Hospitality, the report added.

After the bell

* Occupancy in U.S. skilled nursing properties continued to fall in the third quarter with an unusually large year-over-year decline, the National Investment Center for Seniors Housing & Care, or NIC, said in a report.

* DDR Corp.'s planned spinoff surprised to the upside and substantially closed the company's perceived valuation gap, but analysts identified lingering risks and uncertainty in the DDR story.

* Modest leverage levels and generally strong real estate fundamentals will help produce stable conditions for U.S. real estate investment trusts and real estate operating companies in 2018, Moody's said in a note.

* U.S. home sales ticked up 1.1% year over year in November, despite prolonged trends of rising home prices and declining inventory, according to the December "RE/MAX National Housing Report."

* Harvard Management Co. Inc. is spinning out its real estate investment team to Bain Capital LP, effective Feb. 1, 2018, confirming an earlier report.

Housing

* PulteGroup Inc. is under contract to buy the 116-acre Cypress Creek Country Club golf course at 9400 South Military Trail in Palm Beach County, Fla., from True Shot LLC for an undisclosed sum, The Real Deal reported, citing Brent Baker, president of the company's southeast Florida division. The homebuilder plans to develop around 250 homes on the site that are expected to be worth "in the upper $400,000s" apiece, the report noted.

* Roughly $2.8 billion worth of residential properties are under threat from the Southern California fires, The Real Deal reported, citing Realtor.com Director of Economic Research Javier Vivas. The expanded evacuation area for the Thomas Fire spans about 17 miles by 5 miles, according to the report.

Gaming

* Penn National Gaming Inc. agreed to acquire Pinnacle Entertainment Inc. in a roughly $2.8 billion cash-and-stock deal. Pinnacle shareholders will receive a cash sum of $20.00 and 0.42 share of Penn National's common stock for each Pinnacle share, reflecting a total purchase price of $32.47 per Pinnacle share, based on Penn National's Dec. 15 closing price.

The day ahead

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

In Asia, the Hang Seng was up 0.70% at 29050.41. The Nikkei 225 gained 1.55% to 22,901.77.

In Europe as of midday, the FTSE 100 was up 0.45% at 7,524.25, and the Euronext 100 improved 1.11% to 1,049.76.

On the macro front

The National Association of Home Builders' housing market index is due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription. Articles and links are correct as of publication time.