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WeWork mulling sale of unit at huge discount; Calif. apartment sells for $114M

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WeWork mulling sale of unit at huge discount; Calif. apartment sells for $114M

Commercial real estate

* WeWork Cos. Inc. is in discussions to sell Managed by Q Inc. for less than $55 million, less than a quarter of the reported $220 million The We Co. unit paid eight months ago, Bloomberg News reported, citing people familiar with the talks.

Meanwhile, Adam Neumann, co-founder and former CEO of the coworking company, is in talks to sell his stake in six sites in San Jose, Calif., the news outlet reported separately, citing people familiar with the matter. The stake in the properties could fetch more than $150 million, according to Bloomberg.

* Culver City, Calif.-based multifamily developer and investor Cityview sold the 240-unit Baker Block apartment complex at 125 E. Baker St. in Costa Mesa, Calif., to Baker Block Associates for $113.5 million, The Real Deal reported.

The company also sold its 65% interest in the 346-unit Pearl on Wilshire apartments at 687 S. Hobart Blvd. in Los Angeles' Koreatown neighborhood to Hankey Investment, the publication added. Hankey Investment, the original owner of the land, had held a 35% stake in the complex.

* IWG PLC's coworking brand Spaces is looking for the site of its first location in Orlando, Fla., the Orlando Business Journal reported, citing real estate sources. Representatives of Spaces were not available for comment, the publication noted.

* Pebblebrook Hotel Trust will open the 191-room Hotel Zena in Washington, D.C., in spring 2020. The hotel on 14th St. in Logan Circle was acquired as Donovan Hotel in 2018, and will now be part of Pebblebrook's The Viceroy Urban Retreats portfolio.

* Praedium Group LLC purchased the recently developed 300-unit Legacy on the Promenade apartment complex in Westminster, Colo., from Legacy Partners for $93.5 million, the Denver Business Journal reported, citing Jefferson County public records. The property also includes a six-level parking garage and amenities such as an outdoor lounge, pool and spa, and a fitness center, among others.

* Urban Renaissance Group LLC sold the 20-story Plaza 600 tower in Seattle to BentallGreenOak for $97 million, the Puget Sound Business Journal reported, citing King County records. The property, which is close to Amazon.com Inc.'s headquarters, is 91%-leased and includes about 209,250 square feet of office space with a small retail space.

* Developers Wexford Developments and Argosy Real Estate Partners purchased the five-building Centerpoint on Mill mixed-use project in Tempe, Ariz., for $60 million, the Phoenix Business Journal reported, citing real estate database Vizzda. The seller is YAM Properties, which is owned by GoDaddy Inc. founder Bob Parsons. The fully leased complex comprises 126,000 square feet in total, with 37,000 square feet for an AMC movie theater, 68,000 square feet for retail and restaurants, and 21,000 square feet for office space.

* Advanced Pain Medical Group, acting through its affiliates J & J Properties and J & L Properties, purchased Edenvale Industrial Park in South San Jose, Calif., from an affiliate of DivcoWest for about $55.3 million, the Silicon Valley Business Journal reported, citing CBRE, which arranged the sale, and Santa Clara County deed documents. The park includes two advanced manufacturing buildings at 5325 Hellyer Ave. and 875 Embedded Way, and 10 acres of developable land.

* A joint venture led by developer SHVO, Bilgili Group and Deutsche Finance secured a $120 million construction loan from CIM Group for the restoration and redevelopment of the historic Beaux Arts tower at 685 Fifth Ave. in Manhattan, N.Y. The project will see the conversion of the property into 69 Mandarin Oriental residences, which is expected to be completed in 2021.

* Newton, Mass.,-based National Development is planning to build a mixed-use development with a 21-story residential and commercial building at 323-345 Dorchester Ave. in South Boston, the Boston Business Journal reported. The project will include 265 residential units and 47,000 square feet of commercial space, including 14,500 square feet of ground-floor retail.

Other real estate news

* Hyatt Hotels Corp., through an affiliate, sold the 615-room Grand Hyatt-Seoul hotel for roughly $481 million.

The day ahead

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

In Asia, the Hang Seng decreased 0.30% to 27,800.49, while the Nikkei 225 was down 0.29% to 23,864.85.

In Europe, around midday, the FTSE 100 increased 0.21% to 7,558.69, and the Euronext 100 increased 0.01% to 1,140.42.

On the macro front

The jobless claims report, the Philadelphia Fed business outlook survey report, the current account report, the existing homes sales report, the leading indicators report, EIA natural gas report, the Fed balance sheet and the money supply report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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