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Hudson Pacific, Macerich team up for LA project; RioCan entering resi market

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Hudson Pacific, Macerich team up for LA project; RioCan entering resi market

Commercial real estate

* Hudson Pacific Properties Inc. and Macerich Co. formed a joint venture to redevelop 500,000 square feet of the 600,000-square-foot Westside Pavilion in Los Angeles into creative office space in a project that is estimated to cost between $425 million and $475 million. Roughly 100,000 square feet of the property's existing entertainment retail space will be retained.

Hudson Pacific will own a 75% stake in the joint venture and mall landlord Macerich will own the remaining 25%. Hudson Pacific will be the managing member of the partnership as well as the day-to-day operator and developer. Each company will contribute its pro rata share of the project's estimated costs.

* RioCan Real Estate Investment Trust is officially entering the residential market with the launch of its new brand, RioCan Living. The company has identified 43 projects in its portfolio as mixed-use opportunities that could deliver more than 20,000 residential units in Canada's six major markets.

The company noted that it has eight projects comprising roughly 2,800 units that are undergoing or expected to commence construction soon, with the first deliveries expected in the first quarter of 2019.

* Publix Super Markets plans to spend $1.53 billion in 2018 to develop new stores and acquire shopping centers that it anchors, while also remodeling stores and upgrading technology, the Palm Beach Post reported. The company owned 371 of its 1,167 stores as at December 31, 2017, or 31.8% of its locations. In 2007, it owned 11% of its locations, the report noted, citing an analysis of the company's financial filings.

* According to Colliers International, office leasing in Manhattan, N.Y., was down 18.3% year over year in February, totaling 2.57 million square feet in new leases and renewals, The Real Deal reported. In January and February, leasing activity totaled 5.54 million square feet, reflecting a 21.6% decrease from the year-ago period.

The availability rate in Manhattan came in at 10.4% in February, the highest level since November 2016, the report noted.

* Canada-based Scotiabank is subleasing roughly 50,000 square feet in the Brookfield Place office complex at 250 Vesey St. in downtown Manhattan from Hudson's Bay Cos., The Real Deal reported, citing unnamed sources. Hudson's Bay is looking to cut down excess space and is offering four floors for sublease at the property, the report noted, citing the sources.

* The Jack Parker Corp. is placing a 2,082-unit residential portfolio in New York City on the market, with the properties to be sold separately or as a single package, The Real Deal reported, citing unnamed sources. The portfolio includes the three-building, 1,327-unit Parker Towers complex in the Forest Hills neighborhood of Queens, N.Y.

The other properties in the portfolio are the 291-unit Truffles Tribeca high-end rental building in Manhattan's Tribeca neighborhood and the 464-unit Biltmore rental tower in Midtown Manhattan.

* The value of Rabsky Group's development site in Brooklyn, N.Y.'s Williamsburg neighborhood increased to $186.3 million from $92.1 million after the City Planning Commission approved a rezoning of the site, The Real Deal reported, citing a report by Spencer Equity on the Tel Aviv Stock Exchange. Spencer is partnering with Rabsky to develop an eight-building, 1.1 million-square-foot housing complex.

The project will comprise 1,146 residential units, with 287 slated to be affordable, along with 65,000 square feet of retail space.

* OA Development bought five office buildings at The Park-Huntersville complex near Charlotte, N.C., for $62.5 million, the Charlotte Business Journal reported, citing Mecklenburg County records. The acquired properties, totaling 395,796 square feet, are the Kemp Building, the Reed Building, the Latta Building, the Storrs Building and the Alexander Building.

The buildings are 91.4% occupied, the report noted.

* Old Port Cove Holdings Inc. sold three marinas in North Palm Beach and Riviera Beach, Fla., to an affiliate of Safe Harbor Marinas for roughly $61 million, The Real Deal reported.

* The University of Michigan Endowment approved two new real estate commitments totaling $60 million, to be split between Penzance's DC Real Estate Fund and Fortus Partners' Detroit Renaissance Real Estate Fund, IPE Real Assets reported. The Penzance fund will invest in office and multifamily assets in greater Washington, D.C., while the Fortus Partners fund will target single-family and multifamily homes in the Detroit metropolitan area that require renovation.

After the bell

* Private equity and venture capital firm Starwood Capital Group pulled in $7.6 billion for its latest global opportunistic real estate fund, beating its target of as much as $6 billion, PERE News reported.

Housing

* Citing housing-research firm ATTOM Data Solutions, The Wall Street Journal reported that bank repossessions of homes reached an 11-year high in New Jersey in 2017, while foreclosures across the U.S. fell to an 11-year low during the year. New Jersey follows the lengthier judicial foreclosure process which can take years.

The publication noted that the increase in distressed homes for sale comes at a time when the area's market is low on inventory, adding that it is attracting investors who plan to convert the homes to rental properties.

The day ahead

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

In Asia, the Hang Seng declined 2.28% to 29,886.39. The Nikkei 225 slid 0.66% to 21,042.09.

In Europe as of midday, the FTSE 100 had risen 0.20% to 7,083.92, and the Euronext 100 gained 0.44% to 1,002.59.

On the macro front

The US Services Purchasing Managers' Index, the Institute For Supply Management non-manufacturing index, and the TD Ameritrade Investor Movement Index are due out today.

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