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Blackstone buying NYC tower stake from Brookfield; Toll Bros. reports results

Commercial real estate

* Blackstone Group LP is under contract to buy a 49% stake in Brookfield Property Partners LP's One Liberty Plaza office tower in lower Manhattan, N.Y., the New York Post reported, citing industry sources. The deal, which is expected to close by the end of 2017, values the 2.3 million-square-foot property at over $1.5 billion, or about $660 per square foot, the report said, citing the sources.

Brookfield Property was recently reported to have enlisted Cushman & Wakefield to market the 54-story, 94%-leased asset.

* Brookfield Property Partners completed its acquisition of the four-building, mixed-use Houston Center from institutional investors advised by JPMorgan Asset Management Ltd., the Houston Business Journal reported. An $875 million deal for the property was struck in September.

The 4.2 million-square-foot property is 72% occupied, according to the report.

* Seritage Growth Properties and KDC plan to jointly develop up to one million square feet as part of a mixed-use project in the Dallas Midtown district, The Dallas Morning News reported. The 23-acre project will comprise two office towers, retail space and a cinema, among other features. The development is on the site of a closed Sears store at the former Valley View mall, according to the publication.

The developers, who expect to open the first phase of the project in four years, are slated to file initial proposals with the city soon, the report noted.

* National Real Estate Investor featured a report on student housing real estate investment trusts' increasing interest in public-private partnerships, with executives of American Campus Communities Inc. and Education Realty Trust Inc. mentioning a strong interest in such partnerships during their respective third-quarter earnings calls.

Citing CBRE National Director of Student Housing Jaclyn Fitts, the report noted that the two companies are at the forefront of public-private partnerships for on-campus student housing projects at a time when educational institutions are striving to replace their older on-campus housing with new and expanded projects as well as handing off at least partial management responsibility to third parties.

* CIM Group, which reportedly has a deal to buy a 380,000-square-foot office building on Telegraph Ave. in Oakland, Calif., from Uber Technologies Inc. for roughly $220 million, is in talks with an unnamed major tenant to lease the entire building, the San Francisco Business Times reported, citing three sources familiar with the property.

Citing real estate industry speculation and six other sources, the report noted that Amazon.com Inc. could possibly expand into Oakland and choose CIM's Uptown Station property.

The Uptown Station property reflects one of the city's largest office vacancies. Citing unnamed sources, the report noted that the property's sale could close by the end of 2017, while ongoing construction is expected to finish in a year. Another source with knowledge of the building told the news outlet that Uber is in talks to lease back a top floor of the property after the sale.

* SL Green Realty Corp. revealed plans at its annual investor conference for a mixed-use residential rental tower development in Manhattan with 30% of the units designated affordable, The Real Deal reported. The project at 183-187 Broadway would be one of the first to be built under the Affordable New York program that succeeded 421-a, the report pointed out.

The report noted that the company had considered an office tower or a hotel and dormitory for the site before settling on mixed-income rental apartments because the Affordable New York program allows a 35-year tax abatement.

* The Wall Street Journal reported, citing Related Cos., that Engineers Gate Manager LP, Arosa Capital Management LP and HealthCor Management LP have leased a combined roughly 56,000 square feet at 55 Hudson Yards on Manhattan's far West Side. Related is developing the 1.3 million-square-foot tower along with Oxford Properties Group and Mitsui Fudosan America, with the property now 90% leased.

The publication pointed out that the Hudson Yards area has been increasingly attracting financial firms, and the Related joint venture has also had success leasing its 1 million-square-foot retail building, which is roughly 70% leased.

* The partnership of Related Cos. Inc. and Ruben Cos. is planning an additional roughly 300 units adjacent to the recently completed 383-unit One Hill South luxury apartment building at 909 Half St. SE in Washington, D.C.'s Capitol Riverfront Business Improvement District, the Washington Business Journal reported.

The second phase at 950 South Capitol St. SE would be connected to the first building, resulting in a single, 13-story, 708,801-square-foot development, the report noted. The first project also has 22,000 square feet of retail space, and the second phase could also include retail if there is demand, according to the report.

* The 1.23 million-square-foot Orlando Fashion Square shopping center, which is central Florida's second-largest, is expected to be sold in the first quarter of 2018, the Orlando Business Journal reported, citing Cushman and Wakefield Executive Managing Director Mark Gilbert, who is involved in the mall's marketing, and Raymer Maguire III, one-ninth owner of the property under MMM Lakewood Ltd. LLLP.

A buyer has signed a letter of intent for the 50-acre property after making an undisclosed offer, the report noted, citing Gilbert and Maguire. The property, which contains 838,865 square feet of gross leasable area, is 90% leased, the report noted, citing Cushman & Wakefield's marketing packet. It is anchored by Dillard's Clearance Center, JCPenney, Macy's and Premiere Cinemas.

Bancorp Inc.-related TBB Orlando LLC became the master lessee of the mall in February, according to the report.

* Yardi Systems Inc. forecasts the San Francisco Bay Area to be the top suburban market with the most office space construction in 2018, with the Dallas-Fort Worth and Austin areas ranking second and third, respectively, The Dallas Morning News reported.

The San Francisco Bay Area is expected to see roughly 5.9 million square feet of suburban office development while the Dallas-Fort Worth area is expected to have slightly more than five million square feet of suburban office space. Austin is expected to see over two million square feet of suburban office development in 2018.

* The 818-room Hale Koa Hotel in Honolulu is set to undergo a roughly $100 million renovation over the next two years, Pacific Business News reported, citing Richard LeBrun, the general manager of the hotel. The hotel, which is an Armed Forces Recreation Center property, is completely funding the project, according to the report.

After the bell

* Equinix Inc. intends to launch a €1.0 billion public offering of its senior notes due 2028.

Housing

* Toll Brothers Inc.'s net income for the fourth fiscal quarter amounted to $191.9 million, or $1.17 per share, up from $114.4 million, or 67 cents per share, in the year-ago period.

The day ahead

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

In Asia, the Hang Seng dropped 1.01% to 28,842.80, while the Nikkei 225 slid 0.37% to 22,622.38.

In Europe, around midday, the FTSE 100 gained 0.16% to 7,350.74 and the Euronext 100 fell 0.39% to 1,038.59.

On the macro front

The international trade report, the Redbook, the PMI Services Index and the ISM Non-Mfg Index are due out today.

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