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Anbang's US properties face possible sale; Minneapolis asset sells for $255M

Commercial real estate

* The Wall Street Journal featured a report on the U.S. properties of Chinese conglomerate Anbang Insurance Group Co. Ltd. that could be sold. China's insurance regulator recently announced plans to take control of the insurance giant, and authorities are said to be "listening to offers" for the various luxury hotels that Anbang owns in the U.S., the publication noted, citing people close to the matter.

The Waldorf Astoria hotel in Manhattan, N.Y., that Anbang acquired for $1.95 billion in 2015 and is being partly converted into condominiums, would not be sold and the project would continue as regulators and Anbang plan to hold on to the asset, the report noted, citing people briefed on the matter.

Bloomberg News also featured a report on the possibility of Anbang properties being sold in the U.S. and Canada, noting that Blackstone Group LP had been a major seller to the Chinese group during its acquisition spree and could stand to benefit if Anbang's holdings are divested.

* On behalf of its Allegiance Fund, U.S. real estate investment management company ASB Real Estate Investments divested the Capella Tower skyscraper at 225 S. Sixth St. and the neighboring Star Tribune Building in Minneapolis for $255 million to Shorenstein Properties LLC.

The 58-story class A tower and the 20-story Star Tribune building together offer 1.4 million square feet of space. The asset was reported to be nearing a sale in December 2017.

* The New York Times featured a report on Extell Development's 68-story Brooklyn Point mixed-use condo tower under construction in downtown Brooklyn, N.Y. For its first project in the borough, Extell is aiming for a sellout of roughly $901 million, the report noted, citing paperwork filed with the state of New York.

The 458-unit tower is part of the roughly 1.8 million-square-foot City Point complex and is slated for completion in 2020. Extell received a 25-year tax abatement from the city for the project and helped create 200 affordable housing units nearby as part of the deal, the report noted, citing Anthony Hogrebe, a spokesman for the city's Economic Development Corp.

* Boardwalk Properties acquired the recently completed 191-unit Queue Apartments building in downtown Fort Lauderdale, Fla., for $53 million from a partnership between Urban Street Development and Fazio Properties, The Real Deal reported. The 817 South East Second Ave. property sold for roughly $277,500 per unit and is almost fully leased, according to the report.

* Self Storage Capital Partners teamed up with CSM Capital Corp. to create First Neck Self-Storage Group, which aims to spend $50 million to acquire self-storage properties in metropolitan areas across the U.S., the Philadelphia Business Journal reported. The companies plan to buy 20 to 30 properties in the next two years and also plan to raise $150 million for further acquisitions.

After the bell

* New Senior Investment Group shares gained more than 12% in trading Feb. 23 after the company disclosed in its earnings release that it is considering "a full range" of strategic alternatives to maximize shareholder value.

* Gendis Inc. CEO James Cohen's plan to potentially privatize the Canadian real estate company is moving forward after necessary acceptances were received for the C$5.25-per-share bid by his Canada Ltd. company.

The day ahead

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

In Asia, the Hang Seng was up 0.74% at 31498.6. The Nikkei 225 climbed 1.19% to 22,153.63.

In Europe as of midday, the FTSE 100 had risen 0.51% to 7,281.51, and the Euronext 100 was up 0.67% at 1,033.57.

On the macro front

The Chicago Fed national activity index, the Dallas Fed manufacturing survey and the new home sales 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.