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$3.5B project proposed in Bronx, NY; Tishman JV eyes $540M sale of Chrysler East

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$3.5B project proposed in Bronx, NY; Tishman JV eyes $540M sale of Chrysler East

Commercial real estate

* Developer Dynamic Star is in talks with the Department of City Planning to bring a $3.5 billion mixed-use project to the Bronx, N.Y., on industrial wasteland between the Harlem River and the Major Deegan Expressway, the New York Post reported.

If land use approvals are granted, Fordham Landing will offer about 2,800 residential units, a roughly 700,000-square-foot life science center, offices, retail, a hotel, conference center and community spaces across 5 million square feet.

* A joint venture between Tishman Speyer Properties LP and a pair of sovereign wealth funds is considering a sale of the 32-story Chrysler East office building in Manhattan, N.Y., The Real Deal reported, citing sources familiar with the deal. The Cushman & Wakefield team marketing the property expects bids of roughly $540 million, according to the report.

Tishman spent a total of $225 million to acquire the 767,000-square-foot tower and the adjacent Chrysler Building in 1997. The latter was sold for $151 million in partnership with Abu Dhabi Investment Council.

* Real estate services company CBRE Group Inc. has looked at Silverstein Properties Inc.'s 3 World Trade Center tower as well as other locations in Manhattan to lease space for its coworking brand Hana, Crain's New York Business reported, citing sources familiar with the effort. For 3 World Trade Center, CBRE held preliminary talks to occupy two floors encompassing about 100,000 square feet, according to the sources.

So far, Hana has plans to open a 67,000-square-foot space in Dallas and a 60,000-square-foot facility in Irvine, Calif., by the end of 2019.

* Angelo Gordon & Co. LP and Hines Interests LP tapped HFF to market the Citadel Center office tower at 131 S. Dearborn St. in Chicago for between $700 million and $750 million, Crain's Chicago Business reported, citing Real Estate Alert.

The two partners made a $50 million equity commitment for a controlling interest in the 37-story, 1.5 million-square-foot office building in 2016 when its owners, Robert Gans and Dearborn Capital, faced an imminent default on a $472 million loan they secured against the property a decade earlier.

* Invesque Inc. signed a deal to buy 20 private pay senior living communities totaling 1,440 units with 1,716 beds and Commonwealth Senior Living LLC for $340.4 million. The portfolio is across Virginia and Pennsylvania, and the deal is expected to close in the third quarter, subject to customary conditions.

* Real estate investment firms McCarthy Cook & Co. LLC and Northwood Investors LLC secured entitlements to add about 115,000 square feet of rentable office and retail space at the Trident Center as part of an over $300 million renovation of the office complex in Los Angeles' Sawtelle neighborhood, Urbanize LA reported, citing McCarthy Vice President Mike Coppin.

Comprising 300,000 square feet of offices across two 10-story buildings, Trident Center will be renamed Lumen West LA and feature roughly 555,000 square feet of office space and 15,000 square feet of retail upon completion in 2022.

* The Wall Street Journal reported a 0.9% rise in shares of real estate investment trusts in trading May 10 and May 13, fueled by the U.S.-China trade dispute. At the same time, shares of big manufacturing companies like Caterpillar Inc. and Boeing Co. each slipped about 4.5% as investors deem them to be less stable in the face of tariffs imposed by Washington and Beijing on each other's economies.

Additionally, the FTSE Nareit All Equity REITs index recorded a total return of 16.6% year to date through May 20, while the S&P 500 had a 14.2% return during the same period. To top it off, REIT shares are becoming more popular with investors since the Federal Reserve indicated it will not change interest rates, a big vulnerability of real estate stocks, the newspaper added.

* A unit of Black Creek Industrial REIT IV Inc. agreed to buy a 100% fee interest in a portfolio of five industrial buildings in Dallas from Pioneer Industrial LLC, Pioneer Parking Lot LLC and Cava Northgate Industrial LLC for $115.0 million, exclusive of transfer taxes, due diligence expenses and other closing costs.

The portfolio encompasses approximately 1.4 million square feet on about 71.1 acres. It is expected that BCI IV Acquisitions LLC will settle the acquisition, subject to certain conditions, during the third quarter of 2019.

Housing

* Sales of existing homes dropped 4.4% year over year in April, marking the 14th straight month of annual declines, and decreased 0.4% from March to a seasonally adjusted annual rate of 5.19 million, the Journal reported, citing the National Association of Realtors. The median sale price rose 3.6% on an annual basis to $267,300 during the reporting month.

According to the report, the results for April reveal that the market is shifting in favor of buyers, with home-price appreciation slowing significantly from April 2018, when price growth was over 5%.

The day ahead

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

In Asia, Hang Seng gained 0.18% to 27,705.94, while the Nikkei 225 ticked 0.05% higher to 21,283.37.

In Europe, around midday, the FTSE 100 rose 0.43% to 7,359.80, and the Euronext 100 increased 0.10% to 1,050.06.

On the macro front

The U.S. Energy Information Administration Petroleum Status Report and the Federal Open Market Committee minutes are due out today.

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