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Tribune sells 3 properties including namesake tower in Chicago; Federal Realty, partners seek to 'de-mall' Fla. asset


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Tribune sells 3 properties including namesake tower in Chicago; Federal Realty, partners seek to 'de-mall' Fla. asset

Commercial real estate

* CIM GroupLP and Golub & Co. completed the acquisition of the historic35-story Tribune Tower in Chicago and a 36,000-square-foot development siteadjacent to the tower, according to a release.The deal withTribune Media Co. wasannounced in late August.

Meanwhile, Tribune also closed the sales of the north blockof the Los Angeles Times Square property and the Olympic Plant in Los Angeles,the company said in a release.It received gross cash proceeds of $430 million for all three sales and said itcould also receive contingent payments of up to an additional $45 million. Thesales are part of the company's goal to offload at least $1 billion in realestate holdings, Tribune President and CEO Peter Liguori said.

* The owners of the landmark Shops at Sunset Place in SouthMiami, Fla., are proposing to "drastically de-mall" the mixed-useproperty with a revamp and partial redevelopment, Miami Herald reported.The asset was boughtby Federal Realty InvestmentTrust with partners Grass River Property and The Comras Co. foraround $110 million in 2015. Federal Realty owns an 85% stake.

The plans include the development of two apartment towersand a high-rise hotel, subject to zoning and planning approval from the city,the report said.

* HowardHughes Corp. said it completed a $238 million refinancing of the debtfor its Ward Villagemasterplanned community in Honolulu, Hawaii. The new nonrecourse loan bearsinterest at one-month LIBOR plus 2.50%, and the initial maturity date is Sept.12, 2021, along with two one-year extension options.

The financing is secured against existing commercialproperties in Ward Village, excluding condo towers presently under development.

* BlackRockInc.'s search for a new global headquarters is now down to two sites in the HudsonYards development in Manhattan, N.Y.'s West Side, Crain's New York Business reported,citing sources familiar with the firm.

BlackRock is eyeing Related Cos. and Oxford PropertiesGroup's planned 50 Hudson Yards tower and Tishman Speyer's planned tower oneblock away from 50 Hudson Yards. The report said BlackRock is seeking close to1 million square feet. Sources added that the company is also"seriously weighing" a lease renewal at its present space at 40 and55 E. 52nd St., near Park Avenue.

* The Republic of Turkey yesterday filed plans for a35-story tower in Manhattan's Midtown East that will serve as the ConsulateGeneral of Turkey's headquarters, TheReal Deal reported.

The 217,500-square-foot Turkevi Center will be located at821 United Nations Plaza. The building will offer 101,869 square feet of officespace and 40,915 square feet of residential space, among other things, thereport said, citing a permit application filed with the city's Department ofBuildings.

* Office leasing activity in Manhattan between July 1 andAug. 24 was down 23% compared to the same period in 2015, The Real Deal reported,citing an analysis of CoStar Group data. The leasing volume during the periodwas 3.4 million square feet, compared to 5 million square feet in thecorresponding period in 2015, according to the report.

* A softening real estate market in New York is believed tobe largely responsible for an $800 million year-over-year decline in theestimated net worth of Republican presidential nominee Donald Trump, Reuters reported,citing Forbes magazine. Trump's estimated net worth was pegged at $3.7 billion.

* SunCal is planning a mixed-use development called 6AM indowntown Los Angeles' Arts District that will include residential, office,hotel and retail elements along with public space, L.A. Biz reported.The complex is planned on a 14.5-acre site at 6th and Alameda St., and willfeature the neighborhood's first skyscrapers, the report said.

* Downtown Phoenix has more than 3,600 new apartments thatare under construction or in the planning stage, the Phoenix Business Journal reported,citing real estate firm ABI Multifamily.

* National Real EstateInvestor carried a reporthighlighting the steady rise in small to medium tier commercial real estatedeals by foreign investors in the U.S. property market.

* Moody's saidthe impact of oil price trends on office REITs with exposure to Houston ismoderately credit negative. The rating agency noted that new construction isexpected to negatively affect the city's office market dynamics.

After the bell

* MedEquitiesRealty Trust Inc. priced its IPO of 19,925,333 common shares at $12.00 apiece, thelow end of its projectedrange, for expected net proceeds of roughly $210.2 million.

* Artis RealEstate Investment Trust is considering off-loading roughly C$300million of its retail and industrial properties in Alberta, Reuters , citing two sourceswith knowledge of the matter.

* AmericanTower Corp. priced its two-series senior notes , expecting it to generateroughly $990.6 million in net proceeds.


* According to ATTOM Data Solutions' Home AffordabilityIndex for the third quarter, 24% of U.S. county housing markets were lessaffordable than their historic average affordability averages in the thirdquarter, compared to 22% of markets in the previous quarter and 19% in theyear-ago quarter.

The day ahead

Early morning futures indicators pointed to a lower openingfor the U.S. market.

In Asia, the Hang Seng rose 0.51% to 23,739.47, and theNikkei 225 was up 1.39% to 16,693.71.

In Europe as of midday, the FTSE 100 was up 1.59% to6,915.83, and the Euronext 100 had fallen 0.36% to 887.29.

On the macro front

The GDP report, the international trade in goods report, thejobless claims report, the pending home sales index, the EIA natural gasreport, the Fed balance sheet and the money supply report are due out today.

Now featured onS&P Global Market Intelligence

Data Dispatch:REIT capital-raising activity up 14.2% YOY through mid-September:U.S. REITs have raised the most capital via senior debt offerings year-to-datethrough Sept. 15.

Data Dispatch:September state of the housing market: Recent data showed the U.S.housing market remained on generally solid ground in August, albeit with new-and existing-home sales and housing starts declining from their July readings.

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