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Disney to lease Fox's LA lot; Tishman Speyer scouting $1.5B loan

Commercial real estate

* Walt Disney Co. will lease 21st Century Fox Inc.'s studio lot in the Century City neighborhood of Los Angeles for seven years as part of its roughly $52.4 billion deal to acquire most of the latter's assets, Variety reported, citing insiders who attended a Dec. 14 meeting with 21st Century Fox President Peter Rice.

The all-stock deal includes the target company's film and television studios.

* Tishman Speyer is seeking a $1.5 billion construction loan for its planned $3.2 billion Spiral tower in Manhattan, N.Y.'s Hudson Yards, The Real Deal reported, citing unnamed sources. The publication noted that there appears to be no imminent deal, but cited a source as saying that the developer hopes to secure a mortgage in the first quarter of 2018.

In October, the company paid $157 million to secure 669,000 square feet of air rights from the Hudson Yards Infrastructure Corp. and the Metropolitan Transportation Authority for the 65-story, 1,005-foot-tall office tower that would span over 2.8 million square feet at 509 W. 34th St.

* Google Inc. secured approval from Mountain View, Calif.'s city council for its plans for a campus comprising 10,000 new homes and apartments, roughly 3.6 million square feet of office space, parks and retail and business space, the Miami Herald reported.

According to Vice Mayor Lenny Siegel, the full development could take a decade to complete, the report added.

* DivcoWest and Rockpoint Group LLC are close to wrapping up a more than $285 million purchase of the Riverpark Towers in San Jose, Calif., from Steelwave, the Silicon Valley Business Journal reported, citing sources familiar with the potential deal.

* A Starwood Capital Group affiliate shelled out $188 million to buy the 40-story Wells Fargo Center office tower and an adjacent five-story building in downtown Portland, Ore., in November, the Portland Business Journal reported. The properties span over 725,000 square feet of class A and creative office space.

* Hawaii Housing and Finance Development Corp. agreed to sell six state-owned low-income rental housing projects, comprising 1,221 units, for $170 million to Nou ka Hale Venture, a 50/50 joint venture between Los Angeles-based Standard Communities and Honolulu-based Stanford Carr Development LLC, the Pacific Business News reported. Under the agreement, rental subsidies will be increased and extended for existing tenants in four of the buildings for 10 years, the report said, adding that Nou ka Hale plans to spend $53.9 million in capital improvements.

The state will receive almost $81.3 million in net proceeds from the sale, which is expected to close in April 2018.

* Beazer Homes USA Inc. bought 235 acres of land near Port Houston in La Porte in Texas' Harris County from Avera Companies LLC, the Houston Business Journal reported. Beazer Homes is planning a masterplanned community, including a multifamily complex and a senior living facility, on the land, the report added, citing the city of La Porte.

* SWBC Real Estate LLC sold the 358-unit River Walk Village and the 304-unit Timberview Ranch multifamily properties in Dallas to Weinstein Properties as part of a $100 million deal, the San Antonio Business Journal reported. The buyer rebranded River Walk in Flower Mound and Timberview in Grand Prairie to Bexley River Walk and Bexley Mansfield, respectively, the report added.

* HDA Architects is proposing to build a $100 million, 33-story, 254-unit high-rise apartment tower to replace St. Louis Community College's Joseph P. Cosand Community College Center across the street from the Busch Stadium in St. Louis, the St. Louis Business Journal reported.

After the bell

* Unibail's takeover of prime mall owner Westfield is a good deal for all parties, and it should firmly establish the subsequently combined company as the global leader in retail property in its markets, industry observers said.

* Next week, Congress is set to take a final vote on tax reform and, if the legislation is left substantially unchanged from the most recent versions, commercial real estate players will breathe a collective sigh of relief.

* Several major commercial real estate players have thrown their weight behind a common set of environmental sustainability metrics, raising hopes of consensus even as a handful of prominent pension funds push companies for even deeper disclosures.

The day ahead

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

In Asia, the Hang Seng slipped 1.09% to 28,848.11, and the Nikkei 225 dropped 0.62% to 22,553.22.

In Europe, around midday, the FTSE 100 was up 0.03% at 7,450.49, while the Euronext 100 slid 0.41% to 1,034.23.

On the macro front

The 3-year note settlement report, the 10-year note settlement report, the 30-year bond settlement report, the Empire State Mfg Survey, the Industrial Production report, the Atlanta Fed Business Inflation Expectations report, the Baker-Hughes Rig Count and the Treasury International Capital report are due out today.

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* Real Estate Rundown: Medical office portfolios still trade, but prices have cooled: Recent transactions in the property type, including a portfolio sale by Investors Real Estate Trust, have tested an earlier $2.75 billion property deal's value as a precedent.

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