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CIM Group nears $1B sale of Calif. assets; Ivanhoe office property fetches $194M


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CIM Group nears $1B sale of Calif. assets; Ivanhoe office property fetches $194M

Commercial real estate

* Office landlord CIM Group LP is close to selling five office towers in Oakland, Calif., that could yield almost $1 billion, the San Francisco Business Times reported, citing sources with knowledge of the matter. Private equity firm Starwood Capital Group is buying four of the buildings that span 1.2 million square feet, while healthcare provider Kaiser Permanente Inc. will purchase the 538,000-square-foot 1 Kaiser Plaza asset that is named the Ordway Building. The healthcare provider is the largest tenant in the building it is buying.

CIM originally bought the five office towers from Brandywine Realty Trust in 2008 for $412.5 million, and the sale would mark the largest ever office portfolio divestment in the city, the publication added.

* Real estate company Hines bought the U.S. Bank Tower building in Denver's Central Business District for more than $194 million from Ivanhoe Cambridge Inc. the Denver Business Journal reported. Spokespeople for both parties confirmed the deal that closed Dec. 21, the publication added, citing Denver County public records.

The 26-story property at 950 17th St. offers 500,000 square feet of space, an underground tower garage and one retail garage. Ivanhoe has owned the property since acquiring it for $139.7 million in 2007, according to the Dec. 26 report.

* Brookfield Property Partners LP pre-filed an application with New York City's Department of Buildings for one of the two additional rental towers that the company and joint venture partner Park Tower Group Ltd. proposed to build at Greenpoint Landing in Brooklyn, N.Y., The Real Deal reported. The One Bell Slip project will feature 408 units across 380,000 square feet.

The two additional buildings, including the 31-story One Bell, will take in a total investment of about $1 billion and become part of the 22-acre Greenpoint Landing project, which is collectively slated to offer 5,500 units, including 1,400 affordable housing units.

Brookfield Property acquired interests in the two development sites at Commercial Street and West and Eagle streets from Park Tower Group for $148 million in June. Brookfield Property originally joined the Greenpoint Landing in 2015, the report added.

* Millennium Management signed a long-term lease for more than 300,000 square feet at Boston Properties Inc.'s 399 Park Ave. property in Midtown New York City.

The office landlord said that with the Millennium lease, the approximately 1.6 million-square-foot building will be 93% leased. Boston Properties added that it is close to completing its renovation of the property.

* Fort Partners refinanced its Four Seasons Hotel and Residences at the Surf Club in Surfside, Fla., with a $56 million loan from Acore Capital, The Real Deal reported, citing property records. Completed in March 2017, the luxury condo-hotel development comprises a 72-room hotel, a Le Sirenuse restaurant and a Thomas Keller restaurant.

Fort Partners spent $116 million on the purchase of the nine-acre site at 9001 Collins Ave. in 2012.

* Stockbridge Capital Group LLC entered into two lease agreements for an aggregate of 202,750 square feet in Elgin, Ill., RE Journals reported, citing Lee & Associates Executive Vice President Steve Bass, who represented the landlord in both deals, along with John Sharpe, principal of Lee & Associates' Illinois office.

The asset manager signed a 180,302-square-foot lease at 2414 Galvin Drive with existing tenant Giant Bicycle Inc., which amended its contract to occupy an additional 50,000 square feet. Separately, Essentra Plastics agreed to take up 22,448 square feet at 2530 B. Vantage Drive for a long term.

The day ahead

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

In Asia, the Nikkei 225 increased 3.88% to 20,077.62, while the Hang Seng fell 0.67% to 25,478.88.

In Europe, as of midday, the FTSE 100 was down 0.92% to 6,624.73 and the Euronext 100 fell 0.15% to 896.32.

On the macro front

The jobless claims report, the Federal Housing Finance Agency House Price index, the consumer confidence report, the farm prices 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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