Commercial real estate
* Data center developer H5 Capital plans to sell a site next to Amazon.com Inc.'s headquarters in Seattle that has full consent in place for a 41-story residential project, the Puget Sound Business Journal reported. The 121 Boren Ave. N. site is one of the last available ones for high-rises in the South Lake Union neighborhood, the report noted, citing Dave Speers, one of the brokers H5 hired to market the asset.
A tower with 433 residential units is approved for the property, which houses the 13 Coins restaurant that is set to close Dec. 31 and relocate to a new space. The units could be apartments or condominiums, and the buyer could include a hotel in the project, the report noted, citing the brokers.
* CIM Group LP is under contract to buy the Union Bank of California building at 9460 Wilshire Blvd. in Beverly Hills, Calif., for about $130 million, or $1,340 per square foot, The Real Deal reported, citing unnamed sources. CIM reportedly outbid 30 contenders for the property, which hit the market in October.
The deal for the six-story, 97,000-square-foot building is expected to close in January 2018. The seller, Beverly Union Co., has owned the property since 1978, according to the report. The property, which has just under 25,000 square feet of retail space at its base, is 91% occupied by tenants including Union Bank, 3 Arts Entertainment and Universal Properties, the report added, citing CoStar Group data.
* The Wall Street Journal featured a report on investors' increasing interest in suburban rental housing as a supply glut in high-end urban rental units is driving down their rents. Citing TH Real Estate, the publication pointed out that the return for low-rise, garden-style suburban apartments has averaged 8% in the four quarters ended in June, compared to 5.1% for high-rise apartment buildings.
The class B apartment sector has also been seeing higher occupancy rates, as well as constant and high demand from renters. Citing Marcus & Millichap Research Services and MPF Research, the report noted that the vacancy rate for higher-tier class A apartments was 5.8% in the third quarter, versus 4.3% for class B apartments.
* Retail developers are increasingly teaming up with residential builders to design cheaper suburban housing projects with pedestrian-centered urban elements such as restaurants, offices and shops, the Journal noted in a report. Such combinations are notably in the works in Florida, Massachusetts and Arizona, according to the report.
* Trinity Place Holdings received $189.5 million in construction financing for its planned 90-unit condo tower in Manhattan, N.Y.'s Financial District from the Massachusetts Mutual Life Insurance Co., The Real Deal reported, citing regulatory filings. The 40-story tower at 77 Greenwich St. will also include a 476-seat elementary school at its base, as well as 7,500 square feet of ground-floor retail space.
Completion is expected in 2020, the report noted.
* Moin Development landed a $126.7 million refinancing for its new 20-story luxury Mondrian Park Avenue hotel in Manhattan's NoMad neighborhood from JPMorgan Chase, The Real Deal reported, citing broker HFF. The 190-room hotel at 444 Park Ave. opened in October after a $150 million conversion from a 15-story office building, the report noted.
* CenterCal Properties is building the $100 million Pacific Coast Highway mall in place of the run-down Seaport Marina Hotel in Long Beach, Calif., according to the Los Angeles Times. Roughly 35% of the outdoor mall project's space will feature food elements. The 220,000-square-foot mall on the 11-acre site is slated for a spring 2019 opening.
The 200-room Seaport Marina Hotel, which opened in 1962, is being demolished.
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng was up 0.07% at 29,597.66. The Nikkei 225 rose 0.08% to 22,911.21.
In Europe as of midday, the FTSE 100 was up 0.14% at 7,603.56, while the Euronext 100 was down 0.13% at 1,039.67.
On the macro front
The Redbook, the Pending Home Sales Index and the Consumer Confidence Index are due out today.
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Data Dispatch: US REIT capital raising up 35.3% YOY through Dec. 15: Chart Watch: Publicly traded U.S. real estate investment trusts completed 15 capital offerings during the first half of December to raise $5.77 billion.
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