Commercial real estate
* Kushner Cos., RFR Realty and LIVWRK are buying out their partner Invesco's majority equity stake in a five-building Dumbo Heights office and retail development in Brooklyn, N.Y., The Real Deal reported, citing sources familiar with the deal. The trio are paying $600 million to buy a majority of the complex, which was recently appraised at $700 million, the report said.
Meanwhile, Normandy Real Estate Partners is acquiring a majority stake in the complex's remaining piece, an eight-story, 204,000-square-foot vacant building at 175 Pearl St., for $100 million, The Real Deal reported separately. Normandy, which landed a $91 million loan from Blackstone Group LP for the deal, will lead the redevelopment and leasing of the property, while Kushner, RFR and LIVWRK will hold a "single-digit" minority stake, sources told The Real Deal.
The buyout is being financed via proceeds from the sale of the three companies' majority stake in 175 Pearl St., along with a more than $400 million Citibank-led loan, according to the report.
* The Carlyle Group is paying about $218 million to snap up the remaining office condominiums at 866 United Nations Plaza in Manhattan, N.Y., from Meadow Partners, The Real Deal reported, citing unnamed sources. Carlyle is acquiring about 70 unsold office condos, spanning roughly 340,000 square feet. Deutsche Bank is financing the acquisition, the report said, citing the sources.
* The real estate investment and management arm of Chinese conglomerate HNA Group is looking to sell its stake in the fully leased 1180 Avenue of the Americas class A office building in Manhattan, according to a release. The fully occupied 398,208-square-foot property also features street-level retail.
According to The Real Deal, which also reported on the news, HNA acquired a 90% stake in the asset for $259 million in 2011 from the Carlyle Group, and Murray Hill Properties is the partner in the property. It was recently reported that HNA and an unnamed partner are acquiring the 1.8 million-square-foot 245 Park Ave. office skyscraper in Manhattan for $2.21 billion.
* Mizuho Americas, the U.S. arm of Japanese investment firm Mizuho Financial Group, is close to leasing up to 350,000 square feet of office space at 1271 Sixth Ave. in Manhattan, Crain's New York Business reported. The Rockefeller Group is the landlord for the 48-story tower. Mizuho also maintains a roughly 250,000-square-foot office at 1251 Sixth Ave., the report noted.
* The Chetrit Group and Somerset Partners are seeking a construction loan of up to $500 million for a seven-building rental complex in the Mott Haven neighborhood of New York City's Bronx borough, The Real Deal reported, citing unnamed sources. The financing for the 1,300-unit project, which has an estimated cost of more than $600 million, would be among the largest yet for private residential development in the borough, the report said.
The project comprises three 24-story buildings, two 25-story buildings and two further buildings, rising 16 stories and 22 stories respectively. Completion is slated for late 2019, according to the report.
* Apartment rents in 28 of the 79 metropolitan areas covered by Reis Inc. were flat or lower during the first quarter, compared to 14 markets with flat or declining rents in the previous quarter, The Wall Street Journal reported. The publication said the slowdown backs analysts' prediction that the rental market would see a "significant slowdown" in 2017.
* JPMorgan Chase & Co. is looking to develop a new 67-acre campus in Tempe, Ariz., at the Discovery Business Campus, the Phoenix Business Journal reported. The bank plans to partially relocate jobs from its downtown Phoenix location to the new campus. Design and construction planning is expected to commence later in 2017, the report said.
* The South Florida Business Journal reported that Ocean Land Investments is developing a 42-story senior living tower in Fort Lauderdale, Fla. The Riverwalk Residences project at 333 N. River Drive East will have 192 independent living units, 152 assisted living units and 57 memory care units, along with eight hotel rooms and retail, among other things.
Plans for the 587,641-square-foot project are pending city approval, and commencement is expected in summer 2018, according to the report.
* Over in Canada, a court approved the sale of the Trump International Hotel & Tower in Toronto's financial district to its main debt holder JCF Capital ULC after a court-run sale received no bids aside from JCF Capital's stalking horse offer of C$298 million, Reuters reported.
After the bell
* American Tower Corp. priced a public offering of €500.0 million of senior unsecured notes due 2025, at 98.642% of their face value.
* Landmark Infrastructure Partners LP rolled out a program through which it may sell up to $50.0 million of its 7.90% series B cumulative redeemable perpetual preferred units in at-the-market offerings from time to time.
* CubeSmart's operating partnership priced an underwritten public offering of $100.0 million of senior unsecured notes.
* CalAtlantic Group Inc. priced an upsized offering of $225 million of senior notes.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng dipped 0.78% to 24,111.59, and the Nikkei 225 declined 0.81% to 18,909.26.
In Europe, around midday, the FTSE 100 was down 0.55% at 7,328.85, while the Euronext 100 had fallen 0.27% to 978.67.
On the macro front
The consumer sentiment report, the Chicago PMI, the Baker-Hughes Rig Count and the personal income and outlays report due out today.
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Skyscraper debt hints at future investment strategy for Blackstone's REIT: Blackstone Real Estate Income Trust bought more than 11% of the debt offered in a commercial mortgage-backed securities transaction linked to the Willis Tower in Chicago. The borrowers were other Blackstone affiliates.
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