trending Market Intelligence /marketintelligence/en/news-insights/trending/6nBtIIW7OVKZbunHj1jxVA2 content esgSubNav
In This List

Aetna HQ move to Vornado JV property uncertain; Chatham buys Va. hotel for $68M

Case Study

An Investment Bank Taps S&P's Real Estate Modeling Expertise


FIMA EUROPE 2023: Exploring the Intersection of Data, Governance, and Future Trends in Finance


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Infographic: The Big Picture 2024 – Energy Transition Outlook

Aetna HQ move to Vornado JV property uncertain; Chatham buys Va. hotel for $68M

Commercial real estate

* With Aetna Inc. amid its proposed $69 billion merger with CVS Health Corp., its headquarter move to Aurora Capital Associates and Vornado Realty Trust's 61 Ninth Ave. building in Manhattan, N.Y.'s Meatpacking District remains undetermined, The Real Deal reported, citing The Hour.

Hartford, Conn.-based Aetna planned to relocate 250 employees to the New York location, with the $84 million move including $34 million in incentives from city agencies, the report noted. Aetna signed a lease for the entire 145,000-square-foot office portion of the property earlier in 2017, the report noted.

* Chatham Lodging Trust said it acquired the 219-room Embassy Suites by Hilton in Springfield, Va., for $68 million, utilizing proceeds from its recent share offering. The property opened in August 2013. The company estimates a year one NOI cap rate of roughly 7.5% for the deal.

* Law firm WilmerHale agreed to anchor Boston Properties Inc.'s planned redevelopment project in Washington, D.C.'s Foggy Bottom neighborhood, the Washington Business Journal reported. The law firm, which was formerly known as Wilmer Cutler Pickering Hale and Dorr LLP, is leasing roughly 288,000 square feet at the planned 482,000-square-foot 2100 Pennsylvania Ave. NW building.

The 11-story project is being developed under a ground lease with George Washington University. The space is expected to be delivered in August 2022. The law firm was reported to be in talks for the lease in May.

* Boston Properties also leased 32,147 square feet to coworking space provider The Yard at the former Hancock Tower at 120 St. James Ave. in Boston's Back Bay neighborhood, Banker & Tradesman reported. Boston Properties has recently rebranded and renovated the bottom six floors of the property, the report noted.

* WeWork Cos. is doubling its space in the Minneapolis/St. Paul, Minn., twin cities after opening its first location there two months ago, the Minneapolis / St. Paul Business Journal reported. The co-working company is leasing 46,000 square feet at Ackerberg's eight-story MoZaic East office project at 2900 Fremont Ave. in Minneapolis' Uptown, the report noted, citing real estate data firm Xceligent Inc.

The 198,000-square-foot building is slated for a late 2018 opening. WeWork's first lease in the area was for 50,000 square feet at the Capella Tower in downtown Minneapolis, according to the report.

* The South Florida region saw roughly 200 multifamily sales between January and October with a total dollar volume of $3.6 billion, The Real Deal reported, citing Cushman & Wakefield. The full-year total for 2016 was $5.6 billion.

The report noted, citing Cushman, that 2017's per-unit and per-square-foot prices are already higher than the previous year, although the total sales volume is not expected to set a new record.

* The Wall Street Journal featured a report on the rise in condominium development in New Orleans. Citing listings website Trulia, the publication noted that roughly 1,933 condos have been listed in 2017 as of late October, reflecting a 51.7% jump compared to the listings during all of 2016.

The report also noted that the new developments come with a number of amenities and expect to attract high prices. The median listing price for 2017 is at $244,060, compared to $240,000 in 2016 and $169,250 in 2015.

* According to the Atlanta Business Chronicle, Atlanta and Raleigh, N.C., are competing to house the headquarters of Appian Corp., which may also be mulling a relocation from Reston, Va. The software maker is reportedly on the hunt for up to 200,000 square feet and may also seek signage rights on any building it occupies.

* True North Management Group acquired the Holiday Inn hotel at 1350 N. First St. in north San Jose, Calif., from South Korean conglomerate AJU Hotel San Jose for roughly $61.8 million, the Silicon Valley Business Journal reported. The South Korean entity acquired the asset for roughly $53.5 million almost three years ago, reflecting a per-room price of $151,000.

* The Fort Lauderdale City Commission approved the redevelopment plan for the Bahia Mar resort and marina in Fort Lauderdale, Fla., the South Florida Business Journal reported. Tate Capital affiliate Rahn Bahia Mar LLC plans to develop 651 residential units in seven towers of up to 11 stories tall, along with retail and restaurant space, among other things. It also recently renovated the 296-room hotel on the 38.65-acre site at 801 Seabreeze Blvd.

The developer also recently received a $135 million mortgage from Florida Community Bank, the report noted.

* Rio Real Properties Orlando LLC, an entity of Canada-based Condrain Group, filed an application to rezone 1,032 acres of grazing land in Orange County, Fla., situated east of Orlando International Airport, to allow the development of 3,000 single-family homes, 330,000 square feet of hotel and commercial space, a 20-acre park, and a 15-acre public school site, the Orlando Business Journal reported.


* Las Vegas is experiencing a shrinkage in the supply of available homes with the month of November seeing 4,538 single-family homes on the market without offers, down 33.1% year over year, the Las Vegas Review-Journal reported, citing the Greater Las Vegas Association of Realtors.

Median sales prices during the month climbed to $261,150, up 8.8% year over year, with 2,594 single-family homes sold. The number of sales reflects a 12.7% decline compared to October sales and remains unchanged from the year-ago period.

* Bloomberg News featured a report on the expected impact of the GOP Congress' proposed tax overhaul on the U.S. housing market. Citing the National Association of Realtors, the news outlet noted that the proposed changes in deductions for state and local taxes, property taxes, moving expenses and mortgage interest would lower home values.

A change in the capital-gains tax on sales would lead to homeowners delaying sales, which would keep houses off the market when there is already a historical shortage of inventory. The changes would "upend the housing market by curbing incentives to both buy and sell homes," Bloomberg noted.


* MGM Resorts International CEO James Murren is calling for an overhaul of a decades-old agreement that grants exclusive rights to the tribal operators of Foxwoods Resort Casino and Mohegan Sun to operate slot machines in Connecticut, following his company's proposal to build a $675 million waterfront casino in Bridgeport, the Las Vegas Sun reported.

Murren was speaking to the Bridgeport Regional Business Council to build support for the legislation change necessary for the MGM casino that counts 2,000 slot machines, 160 gaming tables, a 700-seat theater and a 300-room hotel in its plans, along with retail and restaurant space.

The day ahead

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

In Asia, the Hang Seng rose 0.28% to 28,303.19, and the Nikkei 225 was up 1.45% to 22,498.03.

In Europe, as of midday, the FTSE 100 climbed 0.12% to 7,356.88, and the Euronext 100 rose 0.04% to 1,040.58.

On the macro front

The jobless claims report, the EIA natural gas report, the Fed balance sheet and the money supply report are 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.

Ayesha Waqar contributed to this report.