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Lane Partners JV plans $1B Calif. project; Brookfield buys stake in NY complex

Commercial real estate

* Lane Partners LLC and Goldman Sachs Group Inc. plan to develop a $1 billion project in South San Francisco, the San Francisco Business Times reported. Lane Partners is close to filing plans for the project that will comprise 2 million square feet of office or lab space on a 25-acre site across the street from the San Bruno BART Station and the Shops at Tanforan mall.

The project is expected to take roughly four to five years to complete, subject to securing construction approval.

* Brookfield Property Partners LP completed a stake purchase in the $650 million four-building Waterside Plaza complex from property owner Richard Ravitch in Manhattan, N.Y., The Real Deal reported, citing sources familiar with the deal. Brookfield was earlier reported to be in talks to buy the interest in the property, comprising about 50,000 square feet of commercial space, for roughly $600 million.

The publication did not receive a comment from Brookfield or Ravitch regarding the matter, with the size of Brookfield's stake remaining unclear as well.

* Sears Holdings Corp.'s bankruptcy could create more than 100 million square feet of space, which could impact market rents, Bloomberg News reported, citing a note to clients from SunTrust Robinson Humphrey Inc. analyst Ki Bin Kim. The report added that many Sears stores are too big to replace with a single tenant and may have to be subdivided into smaller spaces, which could take years.

Regional mall owners Simon Property Group Inc. and CBL & Associates Properties Inc., which had Sears stores at 46 and 40 properties, respectively, will be looking to manage dozens of new vacancies at once after Sears filed for bankruptcy protection, the news agency added, citing a note from Wells Fargo and a spokesman for Simon.

* SL Green Realty Corp. leased the entire 139,000-square-foot, 11-floor office portion of its 609 Fifth Ave. building in Manhattan to WeWork Cos., with occupancy slated for November, the New York Post reported.

Citing SL Green Executive Vice President and Leasing Director Steven Durels, the publication reported that the building became fully vacant after lease buyouts and relocations for office tenants, leading to a repositioning of the property.

* Vornado Realty Trust is considering the redevelopment of 350 Park Ave. office building in the Midtown East neighborhood of Manhattan, thanks to new zoning in the area, the New York Post reported, citing brokers. Tishman Speyer is looking to rebuild 300 Park, while 250 Park could also be revamped owing to the rezoning, the report added.

JPMorgan Chase & Co. has said it will redevelop its headquarters at 270 Park, between 47th and 48th streets, after the rezoning allowed it to build a larger and higher building at the site.

* City National Bank of Florida agreed to occupy 105,000 square feet, while UBS renewed its 37,000-square-foot lease at the Miami Tower in downtown Miami in a deal worth $75.1 million, The Real Deal reported.

City National Bank of Florida will also move its headquarters to the 47-story building, offering 619,093 square feet of class A office space, with plans to take over signage rights. The lender's lease involves a long-term lease renewal and a 57,000-square-foot expansion at the more than 94%-occupied property.

* Howard Hughes Corp. is in talks with WeWork for a lease at its 66-acre mixed-use development Hughes Landing in The Woodlands community in Texas, the Houston Business Journal reported, citing president of the central region for Howard Hughes, Paul Layne.

If an agreement is reached, WeWork could open its first location in The Woodlands in about four or five months.

* Stream Realty Partners LP obtained refinancing worth $59.2 million for its roughly 359,000-square-foot, class A office building at 300 S. Brevard St. in uptown Charlotte, N.C., Commercial Property Executive reported, citing public records. HFF secured the four-year, floating-rate loan through PCCP on behalf of the borrower.

* Toll Brothers Inc.'s Toll Brothers Apartment Living division brought in Balfour Beatty as construction manager for its 325,000-square-foot, mixed-use Osprey project, slated to offer 319 residential units in West Midtown Atlanta, according to a release.

Construction on the class A development, featuring a 13-story Prescient tower, two five-story wood frame buildings and a seven-story, 540-car parking garage is underway, with completion expected in the first quarter of 2019.

After the bell

* U.S. office markets logged strong performance in the third quarter, with stable leasing volumes and absorption, rising asking rents and increased new construction, according to global commercial real estate services provider Cushman & Wakefield PLC.

* Piedmont Office Realty Trust Inc. agreed to sell the 21-story office building at 800 N. Brand Blvd. in Glendale, Calif., for approximately $160.0 million under a binding contract entered into with an unnamed third party during the third quarter.

The day ahead

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

In Asia, the Hang Seng gained 0.07% to 25,462.26, while the Nikkei 225 rose 1.25% to 22,549.24.

In Europe, around midday, the FTSE 100 shed 0.30% to 7,008.24, and the Euronext 100 rose 0.44% to 992.65.

On the macro front

The Redbook index for retail sales, the industrial production report, the housing market index, the Labor Department's Job Openings and Labor Turnover Survey and the Treasury International Capital 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.

Now featured on S&P Global Market Intelligence

REIT Replay: REIT prices, broader markets fall during week ended Oct. 12: The SNL U.S. REIT Equity index recorded a 3.03% drop during the past week, compared to a 4.10% decline in the S&P 500 and a 4.19% fall for the Dow Jones Industrial Average.

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