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Lampert may bid $1.8B for Sears real estate; Welltower to buy $1.3B CNL assets

Commercial real estate

* Sears Holdings Corp. Chairman Eddie Lampert's ESL Investments Inc. will make a bid of approximately $1.8 billion for some of Sears' real estate assets, in the event that its $4.4 billion buyout offer for the struggling department store chain fails. The $4.4 billion bid, which covers 425 Sears stores, was submitted through Transform Holdco LLC, a newly formed affiliate of ESL.

* Welltower Inc. agreed to purchase 55 class-A medical office and outpatient facilities from fellow healthcare real estate investment trust CNL Healthcare Properties Inc. for $1.25 billion.

The 3.3 million-square-foot portfolio is part of a 63-property portfolio that CNL Healthcare identified for sale in 2018, after it decided to pursue strategic alternatives. Ninety-two percent of the properties are affiliated with major health systems, including Novant, Memorial Hermann and Cleveland Clinic.

After the sale closes, CNL Healthcare will continue to own and manage a private-pay seniors housing portfolio of 87 communities. The transaction is expected to close during the first half, subject to customary closing conditions and governmental and other third-party approvals.

* Canadian real estate developer Onni Group of Cos. Ltd. signed a preliminary agreement with Tishman Speyer to purchase the two-building Wilshire Courtyard business campus in Los Angeles for $630 million, The Real Deal reported, citing sources familiar with the deal.

However, the parties have not entered into a formal contract for the 8.7-acre property at 5700 and 5750 Wilshire Blvd., the publication noted. The asset also has a three-story parking garage, a fitness center spanning 16,000 square feet and a coffee shop.

* Brookfield Asset Management Inc. ended 2018 by closing the purchase of the PGA National Resort & Spa in Palm Beach Gardens, Fla., from Walton Street Capital LLC affiliates for almost $218 million, The Real Deal reported, citing property records. The Canadian company's BSREP III PBG Golf LLC affiliate bought the asset for less than the original reported acquisition amount of $255 million. The deal, which marked the largest hotel sale in South Florida in 2018, was partially funded using a $105.6 million loan from the Royal Bank of Canada.

The property features a 339-room hotel, a 40,000-square-foot spa, 42,000 square feet of meeting spaces and five 18-hole golf courses. The resort previously changed hands for $170 million in 2016 when developer E. Llwyd Ecclestone Jr. sold it to Walton Street Capital, the report added.

* The Melo Group LLC filed a building permit for a 55-story rental tower that will offer 1,042 units at 501 North Miami Ave. in downtown Miami, The Real Deal reported, citing a spokesperson for the local developer. The company expects to start construction on the apartment project by 2020.

For the development, Melo purchased more than half of a block for $28.3 million through separate deals in 2017 and 2018, the report added, citing property records.

* Vacancy rate across offices in the U.S. increased to 16.7% in the fourth quarter of 2018 from 16.4% in the year-ago term, Reuters reported, citing real estate research firm Reis Inc.

During the last quarter of 2018, 7.4 million square feet of net office space was absorbed, as measured by the available office space sold, down from 7.6 million square feet of space sold in the comparable period in 2017. New construction of office spaces dropped to 10.4 million square feet from 12.0 million square feet, while both asking and effective rents rose about 3%.

* Tradepoint Atlantic LLC obtained two loans totaling $135 million for its two new class A industrial buildings within the Tradepoint Atlantic industrial project in Sparrows Point, Md., leased respectively to Inc. and Under Armour Inc., according to HFF, which worked on behalf of the borrower.

Of the total, a $71.8 million, 18-year loan was secured for the roughly 1.4-million-square foot Under Armour facility, while a $63.2 million, 17-year loan was obtained for the Amazon building, spanning 857,514 square feet.

* The Sapir Organization LLC landed a $115 million loan package from Goldman Sachs Group Inc. to refinance a loan it received in 2015 to acquire the NoMo SoHo hotel in New York City, The Real Deal reported, citing property records. The loan includes a $3 million gap mortgage from Goldman Sachs and $73.3 million from a Sapir entity, the publication added.

* Delshah Capital landed $102.5 million in construction financing for a 20-story luxury rental tower that it is developing at 22 Chapel St. in downtown Brooklyn, N.Y., alongside OTL Enterprises LLC, Commercial Observer reported, citing Delshah founder Michael Shah.

The deal, which closed Dec. 31, 2018, included a $62 million senior loan from Bank OZK and a $40.5 million mezzanine loan from EverWest Real Estate Partners. The project will offer 180 luxury apartments, 25% of which will be affordable, as well as 2,000 square feet of ground-floor retail space, 15,000 square feet of community space and a rooftop pool.

The day ahead

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

In Asia, the Hang Seng fell 0.26% to 25,064.36.

In Europe, around midday, the FTSE 100 fell 0.61% to 6,693.36, and the Euronext 100 was down 1.03% to 900.95.

On the macro front

The motor vehicle sales report, the MBA mortgage applications report, the ADP employment report, the jobless claims report, the ISM manufacturing index, the construction spending report, the Fed balance sheet and the money supply report are due out today.

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.

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Data Dispatch: US REITs end 2018 at 18% discount to NAV: Chart Watch: The healthcare and self-storage sectors ended the year trading at a premium to their consensus net asset value estimates, while the regional mall, timber and office sectors traded at the steepest discounts to NAV.

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