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Howard Hughes JV adds tenant in Chicago; $150M opportunity zone fund rolls out


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Howard Hughes JV adds tenant in Chicago; $150M opportunity zone fund rolls out

Commercial real estate

* Developers Howard Hughes Corp. and Riverside Investment & Development leased 100,000 square feet at their 110 N. Wacker Drive office development in Chicago's West Loop district to law firm Perkins Coie LLP, Crain's Chicago Business reported, citing a statement from the three companies.

The Seattle-based firm will take up floors 34 through 37 at the 55-story new building in late 2021.

* Catalyst Investors LLC rolled out its first real estate opportunity zone fund with a goal of raising $150 million.

The double bottom-line private equity firm said Fund I will target investments in small and middle-market communities in the U.S., with a focus on mixed-use developments. The firm has identified and is conducting due diligence on more than 50 investment opportunities across 18 states with total project value of about $2.15 billion.

* Commercial real estate investor Tower 16 Capital Partners bought The District at Grand Terrace in Colton, Calif., in an off-market deal worth approximately $63.1 million. The 352-unit apartment complex was sold by an affiliate of real estate investor FPA Multifamily LLC.

* A Fortress Investment Group LLC affiliate bought the Brentwood Gateway office tower at 11611 San Vicente Blvd. in Brentwood, Calif., for $58 million from Brentwood Gateway LLC, an affiliate of private equity group Vintage Capital Group LLC, The Real Deal reported.

The New York-based buyer was originally set to acquire the 10-story, 104,700-square-foot building for the same price in July 2018, but the deal fell through after it tried to negotiate for a better rate.

* The multifamily housing market in Los Angeles County saw the addition of about 3,300 units in the first quarter of 2019, which led to an increase in the vacancy rate to 3.8%, The Real Deal reported, citing NAI Capital. The average asking price jumped 15.1% from the fourth quarter of 2018 to $258,033.

Citing Yardi Rent Café, the paper added that the asking rent was $1,861 per unit on average, representing a rise of 0.6% from the previous quarter and 2.7% year over year. According to NAI, the Los Angeles multifamily housing market will remain strong as the demand for housing exceeds supply in full-year 2019.

* Real estate developer Klingbeil Capital Management Ltd. lodged site plans for the construction of a four-story apartment building totaling 253 units across 217,000 square feet in Denver, the Denver Business Journal reported, citing Klingbeil Vice President Mark Mullen.

The building will be inside the planned smart-city neighborhood called Peña Station Next. Klingbeil still needs to secure the land as well as approval from the city.

* The vacancy rate in the downtown Miami office market rose four points in the first quarter of 2019 to 27.2% after a negative absorption of about 18,000 square feet, according to The Real Deal, which cited a JLL report prepared for the Commercial Industrial Association of South Florida. Asking rents inched up 0.3% year over year to $41.52 per square foot in the three-month term.

JLL noted the growing presence of coworking firms in the Miami office market, highlighted by WeWork Cos. Inc.'s 146,000-square-foot lease and Regus' 35,800-square-foot expansion in Miami's Brickell neighborhood.

* Coworking giant Spaces agreed to occupy 40,000 square feet at Concourse Building 1 in Sandy Springs, Ga., which CBRE Global Investors Inc. bought as part of an about $145 million purchase of three buildings at the Concourse Corporate Center in 2017, the Atlanta Business Chronicle reported.

Spaces will take up the eighth floor of the building, with the location expected to reach full build-out in November.

After the bell

* Toll Brothers Inc. acquired Atlanta-based private home building company Sharp Residential LLC in cash for an undisclosed sum.

The day ahead

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

In Asia, the Hang Seng fell 0.47% at 27,657.24, while the Nikkei 225 shed 0.14% to 21,272.45.

In Europe, around midday, the FTSE 100 gained 0.76% to 7,366.61, and the Euronext 100 lifted 0.59% to 1,050.67.

On the macro front

The Redbook Index for retail sales and the existing home sales report are due out today.

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Data Dispatch: Office deals in Manhattan slow YOY, deal volume picks up in NYC's outer boroughs: Chart Watch: During the 12 months ended March 31, the Manhattan, N.Y., office market recorded 101 deals totaling $15.27 billion in deal volume, a 15.7% decline year over year. Office deal volume in New York City's outer boroughs was up nearly 169%.

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