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Macerich, Simon plan Calif. project; San Francisco tower stake could fetch $550M


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Macerich, Simon plan Calif. project; San Francisco tower stake could fetch $550M

Commercial real estate

* Retail real estate investment trusts Macerich Co. and Simon Property Group Inc. established a 50/50 joint venture to develop a Premium Outlet center in Carson, Calif. The pair will jointly lease the new center, dubbed the Los Angeles Premium Outlets, which will open with an initial 400,000 square feet of space, followed by an additional 166,000 square feet in the second phase of the project.

Work on the development is expected to commence immediately, with an opening scheduled for the fall of 2021.

* A 49% stake in the Park Tower in San Francisco's Transbay district, where Facebook Inc. occupies all 755,900 square feet of office space, could be sold upward of $550 million, or over $1,500 per square foot, SFGate reported, citing five real estate professionals tracking the building.

The potential per-square-foot value would be the highest for a San Francisco office building without a retail component, according to the report. The Park Tower, which is 95% owned by MetLife Inc. and 5% owned by John Buck Co. and Golub & Co., will rise 605 feet upon completion, scheduled by 2018-end, the newswire added.

* Columbia Property Trust Inc. is acquiring a roughly 50% ownership interest in the 799 Broadway office project in Manhattan, N.Y., for upwards of $70 million from Ares Management LP, Crain's New York Business reported, citing an unnamed source.

The office-focused REIT and the project's co-owner, Normandy Real Estate Partners LLC, plan to convert the existing six-story property into a 182,187-square-foot boutique office asset, which is expected to cost at least $150 million to build. The deal is expected to close by 2018-end.

* Thor Equities is looking to sell a 21-property assemblage on Coney Island in Brooklyn, N.Y, for an undisclosed sum, The Real Deal reported. The company has hired HFF to market the properties that were previously intended to be developed into a shopping, entertainment and hotel complex, the news outlet added, citing the marketing agent.

* Los Angeles-based IMT Capital LLC acquired the 276-unit Broadstone Germantown apartment complex in Nashville, Tenn., for $73.2 million, the Nashville Business Journal reported, citing public records. On average, the real estate investor paid over $265,000 per unit, marking the third-largest deal for an apartment complex in Nashville, according to the publication.

PGIM Real Estate invested in the property alongside Alliance Residential Co., which developed it, the publication added, citing public records.

* The 342-room building of the InterContinental Hotels Group PLC-operated Holiday Inn Fisherman's Wharf in San Francisco is set to close at the end of October for refurbishments after property owner Westbrook Properties opted out of renewing the lease with landowner FelCor Hotel Asset Co. LLC, SFGate reported, citing a letter by InterContinental to the state.

The closure of the 1300 Columbus Ave. building will result in 186 layoffs, the newswire added, citing a state filing. The remaining portion of the hotel will continue to run as a 243-room Holiday Inn hotel, according to the report.

* Mountain Development Corp., owner of the 776,977-square-foot Eastfield Mall in Springfield, Mass., is looking to redevelop the 87-acre site into a mixed-use asset with retail, housing and office space, MassLive reported, citing broker Cushman and Wakefield. The plans come after a 254,446 square-foot Sears Holdings Corp. store shut down at the mall.

Mountain Development, which paid $3.5 million for the mall in January 2013, is looking to redevelop the asset in a joint venture with a developer or builder, according to the report.

* Pharmacy chain Duane Reade Inc. has filed a complaint in the New York Supreme Court requesting that its lease at the Unibail-Rodamco-Westfield SE-operated Westfield World Trade Center mall in New York City be voided, The Real Deal reported. Duane Reade is suing the landlord, claiming that it failed to hand over the space in "tenant ready condition," the news outlet said, citing the tenant, adding that the lease was signed in May 2014 and was meant to be ready by June 2015.

* Harridge Development Group is proposing to build a 1.4 million-square-foot complex on Sunset Boulevard and Highland Avenue in Hollywood, Los Angeles, The Real Deal reported, citing Urbanize. The four-block mixed-use development would include a 308-room hotel, 950 residential units and 190,000 square feet of commercial space. The city's planning commission will consider the project at its Sept. 13 meeting.

After the bell

* Pebblebrook Hotel Trust's ability to reap rewards from its cash-and-stock acquisition of LaSalle Hotel Properties hinges in part on planned asset sales and the combined company's ability to wring increased returns from the former LaSalle portfolio, observers say.

The day ahead

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

In Asia, Hang Seng dropped 0.72% to 26,422.55, while the Nikkei 225 rose 1.30% to 22,664.69.

In Europe, around midday, the FTSE 100 was down 0.63% to 7,233.61, and the Euronext 100 shed 0.27% to 1,030.63.

On the macro front

The Redbook Index for retail sales and the Labor Department's Job Openings and Labor Turnover Survey are due out today. The National Federation of Independent Business' index of small business optimism increased to 108.8 in August from 107.9 in July.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

Now featured on S&P Global Market Intelligence

* REIT Replay: REIT share prices, broader markets fall during week ended Sept. 7: All SNL REIT property sector indexes logged share-price declines alongside the S&P 500 during the week ended Sept. 7.

* Conference Chatter: Blockchain to bring legion of new retail investors to commercial property market: Real estate industry leaders and technologists at a conference in New York said distributed-ledger technology will make investing in commercial real estate a cheaper, more liquid enterprise, to the benefit of most traditional industry players.

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