Commercial real estate
* Kushner Cos. is in negotiations with LNR Partners LLC, the special servicer of the debt on the 666 Fifth Ave. building in Manhattan, N.Y., over a debt totaling more than $1.4 billion that is set to mature in February 2019, The Wall Street Journal reported, citing people familiar with the matter.
Kushner maintains that only $1.1 billion of the total debt needs to be repaid, and it needs to reach a deal with LNR before it can bring in Brookfield Property Partners LP as a partner in the troubled office tower as Vornado Realty Trust exits its stake.
* A two-building, fully leased office complex totaling 540,566 square feet is up for sale in northwest Baltimore, the Baltimore Business Journal reported. The 11-acre asset at 6100 Wabash Ave. was developed by JBG Cos. before its merger with Vornado's Washington, D.C., business and is owned by a JBG affiliate in a privately held fund separate from JBG SMITH Properties, the report noted.
The build-to-suit property, opened in 2014, is fully leased by the Social Security Administration in a lease running until January 2034 with a high chance of lease renewal due to the property's security standards and government-specific features, the report noted, citing Marc Rampulla, an executive vice president at JLL in Washington, D.C., who is listing the asset with colleague Brian Saal. Rampulla expects the property to generate interest from national and international investors, the report noted.
* CyrusOne Inc. chief commercial officer Tesh Durvasula told the San Antonio Business Journal that the company expects to build a fifth data center in San Antonio, Texas, when "the time is right." The company is more focused on its international data center footprint.
CEO Gary Wojtaszek had told investors in May 2017 that the company expected to commence construction on another facility in San Antonio in 2018, the report noted.
* Starwood Capital received a $162.5 million loan from Singapore-based United Overseas Bank for the 1 Hotel Central Park in Manhattan, The Real Deal reported, citing property records. The 18-story hotel, opened in 2015 after a transformation by Starwood, comprises 229 rooms. Starwood received $125 million in refinancing from United Overseas Bank in 2015.
* The Upper East Side Rehabilitation and Nursing Center at 211 E. 79th St. in Manhattan received a $127 million loan from KeyBank, The Real Deal reported. The financing will replace a previous acquisition bridge loan from KeyBank and finance more than $7 million in improvements at the property, the report noted, citing KeyBank.
* Vantage Property Investors paid $67.5 million for the three-building Sawtelle Olympic campus in west Los Angeles that was marketed as a redevelopment opportunity, The Real Deal reported, noting that sources familiar with the deal said it has not closed yet. Oakwood Worldwide is the seller.
After the bell
* American Finance Trust Inc. tapped BMO Capital Markets Corp. as its strategic adviser for potentially positioning the single-tenant net-lease real estate investment trust in the public markets.
* FRP Holdings Inc. wrapped up its $347.2 million sale of 40 industrial warehouses and three additional land parcels to a Blackstone Real Estate Partners VIII LP affiliate.
Housing
* The Journal reported that Open Door Labs Inc., a startup that buys homes for cash and flips them, is signing business deals with homebuilders for deals where homebuyers can use a trade-in feature to buy a new home without having to worry about selling their old one. The startup does business as Opendoor.
The business has facilitated $40 million of home sales in April through its partnerships with Lennar Corp. and Meritage Homes Corp., among other homebuilders. Open Door offers cash to homeowners for their existing homes based on a market analysis and then sells the homes after modest improvements, while also providing an option for home-buyers to stay put until the new home is ready.
Lennar is also an investor in Open Door, having poured $100 million in January.
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Nikkei 225 dropped 1.18% to 22,689.74.
In Europe, around midday, the FTSE 100 slid 0.73% to 7,819.62, and the Euronext 100 shed 1.01% to 1,076.46.
On the macro front
Reports due out today are bank reserve settlement, MBA mortgage applications, PMI composite flash, new home sales and EIA petroleum status.
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