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CapitaLand buys $835M multifamily assets; LaSalle hotel could sell for $500M


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CapitaLand buys $835M multifamily assets; LaSalle hotel could sell for $500M

Commercial real estate

* Singaporean real estate company CapitaLand Ltd. closed its $835 million acquisition of 16 freehold multifamily properties in the U.S.

The 3,787-unit portfolio comprises the Canterra at Fitzsimons, SilverBrook, Sienna at Cherry Creek, Parkfield and Dartmouth Woods in Denver; the Miramonte Lodge, The Bluffs and Stoneridge at Cornell in Portland, Ore.; Capitol City on the Course, Centrepointe Greens, Timberline Court, the Village at Union Mills and Heronfield in Seattle; and The Ashton, Deerwood Apartments and Marquessa Villas in Greater Los Angeles.

* Pebblebrook Hotel Trust is looking to sell two more LaSalle Hotel Properties hotels, including the 803-room Westin-Copley Place in Boston that is expected to fetch about $500 million, according to Real Estate Alert. The recently renovated hotel is subject to a management agreement with Marriott International Inc.

The REIT is also marketing the 335-room Hotel Palomar in Washington, D.C., according to the report. InterContinental Hotels Group PLC unit Kimpton Hotel & Restaurant Group LLC manages the property that traded for $143.8 million in 2012.

Pebblebrook will assume ownership of the hotels through its acquisition of fellow hotel real estate investment trust LaSalle, which is expected to close in late November or early December.

* Sterling Bay has plans to raise $500 million for its third property investment fund, which would give it the necessary financial flexibility as it prepares to clinch approval for the $6 billion Lincoln Yards project in Chicago, its largest real estate project to date, Crain's Chicago Business reported.

The 53-acre Lincoln Yards mixed-use campus between the Lincoln Park and Bucktown neighborhoods will feature 12 million square feet of space within up to 70-floor buildings, a 20,000-seat Soccer League stadium, 5,000 housing units and a minimum of 6,200 parking spaces. Citing a Sterling Bay spokeswoman, the paper added that the fund would focus on new and current projects.

* The Teachers Insurance & Annuity Association of America, or TIAA, has taken its 28-story headquarters at 730 Third Ave. in Midtown Manhattan, N.Y., off the market after placing the property on the block in January, Commercial Observer reported.

While the building could have been sold for up to $462.5 million, according to an investment broker's estimate, TIAA believes that keeping ownership of the building, leasing out some floors and refurbishing the space for its employees would give the company a more optimal financial outcome, said a TIAA spokesman.

* Tishman Speyer Properties LP rejected the request of its tenant Carlyle Group LP to assign its remaining over 100,000-square-foot lease at the 1 million-square-foot 520 Madison Ave. in New York to SL Green Realty Corp., on the grounds that Tishman cannot allow its direct competitor to sublease space at the building, The Real Deal reported.

In August, SL Green and Carlyle signed an estimated $100 million deal under which the office landlord agreed to take over Carlyle's existing lease, expiring in 2031, at the Tishman Speyer-owned property, in order to accommodate Carlyle as a tenant at its under-development $3 billion One Vanderbilt office tower.

Carlyle filed a lawsuit against Tishman Oct. 16, arguing that their lease agreement does not bar it from handing over the lease to a company affiliated with a competing landlord.

* Wharton Properties LLC and Thor Equities LLC landed a $305 million refinancing for their office and retail properties at 530-536 Broadway in Manhattan's Soho neighborhood, The Real Deal reported. Morgan Stanley issued the three-year floating-rate loan that replaced an existing first mortgage and $100 million of mezzanine debt purchased from SL Green, according to JLL, which arranged the deal.

In March, Wharton was looking to take over SL Green's $100 million investment in the asset in a deal, which closed with the latter retaining an ownership position in the property.

* During the third quarter, closings in Brooklyn, N.Y., slipped 20% year over year to 1,099, including 574 condos, 373 co-ops and 152 single-family homes, The Real Deal reported, citing a new report from Compass. The median sales price increased slightly to $898,000.

At the same time, the number of contracts signed in the borough dropped 17% on an annual basis to 676 from 814, with single-family homes registering the sharpest decline of 20%.

* CA Ventures and Keith Giles tapped CBRE to sell the 320-unit Eleven40 apartment building at 1140 S. Wabash Ave. in Chicago's South Loop neighborhood, Crain's Chicago Business reported. The 87.5%-let, 26-story asset that opened in May was financed using a $51.3 million construction loan.


* Across the U.S., housing starts declined in September owing to a decrease in the South after Hurricane Florence caused destruction in the Carolinas, Bloomberg News reported, citing government figures. Construction of residential homes fell 13.7% in the south region, which accounted for roughly half of the starts.

Residential starts decreased 5.3% nationwide, with multifamily and single-family construction declining 15.2% and 0.9%, respectively, the news agency added.

After the bell

* Office landlord SL Green Realty Corp.'s third-quarter funds from operations per share rose year over year to $1.66 from $1.49.

* Crown Castle International Corp. reported funds from operations for the third quarter of $515 million, a rise of 26.2% in the aggregate from $408 million in the 2017 third quarter.

The day ahead

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

In Asia, the Nikkei 225 was down 0.80% 22,658.16, while the Hang Seng fell 0.03% to 25,454.55.

In Europe, as of midday, the FTSE 100 fell 0.10% to 7,047.51, and Euronext 100 rose 0.33% to 1,004.38.

On the macro front

The jobless claims report, the Philadelphia Fed Business Outlook survey, the leading indicators report, the Energy Information Administration 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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Data Dispatch: Canadian real estate capital markets slow in Q3: Chart Watch: Canadian real estate companies raised C$777.8 million through six common equity offerings during the third quarter, a 64.6% drop from the C$2.20 billion raised in the year-ago period.

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