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Brookfield, Airbnb team up for $200M project; Duke Realty sells Fla. asset

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Brookfield, Airbnb team up for $200M project; Duke Realty sells Fla. asset

Commercial real estate

* Brookfield Property Partners LP is looking to expand its U.S. apartments portfolio through an investment in a joint venture worth up to $200 million with Airbnb Inc.'s multifamily development partner, Niido, Bloomberg News reported, citing Jonathan Moore, managing director of Brookfield's apartment business.

The funds will be used for the acquisition of up to six Florida apartment complexes to be redeveloped into communities that may be rented out through Airbnb for nearly half the year, the report said, adding that Brookfield will take a 25% revenue cut from every apartment subleased on the home-sharing service, added.

Silverpeak Real Estate Partners LP will contribute $20 million to the venture, the report noted.

* Highgate partnered with GreenOak Real Estate to close its nearly $200 million deal to acquire the 249-room Gansevoort Park Avenue NYC hotel in New York City's NoMad neighborhood, The Real Deal reported, citing unnamed sources. Highgate will serve as manager of the property.

Gansevoort Hotel Group, Centurion Realty and Douglaston Development were reported back in October to have a struck a deal with Highgate for the 19-story property. The transaction leaves Gansevoort with only one hotel in New York City — the Gansevoort Meatpacking NYC.

* Duke Realty Corp. sold a four-story office building at 880 SW 145th Ave., in Pembroke Pines, Fla., for $42 million to Pembroke Pointe Office LLC, an affiliate of Midtown Capital Partners, the South Florida Business Journal reported. The 143,535-square-foot office building is 86% leased.

* Acadia Realty Trust sold its 260 East 161st St. class A office and retail property in the Bronx borough of New York City to Jamestown for an undisclosed sum. HFF, which represented Acadia in the deal, said it is arranging financing for the 10-story, 276,622-square-foot asset on behalf of the buyer.

* Invesco Ltd. secured a $102 million mortgage from AIG Investments for its 80 Broad St. office property in Manhattan, N.Y.'s Financial District, The Real Deal reported. Invesco bought a 95% stake in the 425,000-square-foot class B property in November for $235 million from Broad Street Development, which retained a 5% stake and continues to manage the asset, the report noted.

* China's HNA Group Co. Ltd. is aiming to sell up to $6 billion worth of overseas assets, including prime office properties in New York, San Francisco, London and other major cities, as it faces rising borrowing costs and investor concern about its ability to repay "tens of billions" in debt set to mature in 2018, The Wall Street Journal reported, citing people familiar with the matter.

The conglomerate will exclude its 245 Park Ave. property from the planned sale, according to the report. HNA bought the 1.7 million-square-foot tower, which houses some of its New York offices, for $2.21 billion in May from a joint venture of Brookfield Property Partners and the New York State Teachers' Retirement System.

* CIM Group LP's joint venture with Cabot Cabot & Forbes is planning to build a 380,000-square-foot complex with 400 residential units and ground-floor retail space at 60, 67-75, 70-80 Kilmarnock St. and 59-75 Queensberry St. in Boston's Fenway neighborhood, the Boston Business Journal reported, citing a letter of intent filed Dec. 13 to the city's planning and development agency. A Cabot Cabot & Forbes affiliate paid $51 million to secure the sites, the report added, citing deed records from Suffolk County.

* Nelson Management Group and L+M Development Partners obtained loans worth $148.9 million to refinance two rental towers, The Real Deal reported. Citibank Community Capital provided a $107.4 million mortgage for the 19-story, 256-unit 275 South St. complex on Manhattan's Lower East Side, while Santander Bank refinanced the 318-unit, 33-story Promenade Apartments at 150 W. 225th St. in the Bronx's Marble Hill with a $41.5 million loan.

* Commercial landlords in California could face an estimated $11 billion in annual property tax under a proposal to remove commercial buildings from the state's Proposition 13 law protections, the San Francisco Business Times reported. Under the proposal, office, industrial and retail buildings would be reassessed every three years based on their market value starting in 2020, the report said, adding that the move would primarily raise taxes for large office and retail buildings in hot markets like San Francisco.

* Bankrupt retailer Toys R Us is mulling the closure of at least 100 of its stores in the U.S. after holiday sales fell roughly 15% year over year, Bloomberg News reported, citing people with knowledge of the situation. The final decision about the company's real estate portfolio will be made only after "careful consideration about the best interests of our business," the news outlet cited spokeswoman Amy von Walter as saying.

The day ahead

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

In Asia, the Hang Seng increased 0.70% to 29,253.66, while the Nikkei 225 dropped 0.15% to 22,868.00.

In Europe, around midday, the FTSE 100 had risen 0.11% to 7,545.49, while the Euronext 100 inched up 0.01% to 1,051.09.

On the macro front

The housing starts report, the current account report and the Redbook 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.