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Gramercy Property buys $115.2M multi-state portfolio; General Growth JV finds new buyer for NYC office space

Commercial real estate

* GeneralGrowth Properties Inc. and Thor Equities are under contract todivest the 90,000-square-foot office component at 685 Fifth Ave. in MidtownManhattan, N.Y., to a Turkish jewelry firm's New York Property development arm,The Real Deal reported,citing sources.

Michael Shvo has backed out of his to acquire the nonretailcomponent of the asset.

* GramercyProperty Trust Inc. saidit completed the $115.2 million purchase of a portfolio of 12 buildings acrossNew Jersey, Los Angeles, Chicago, Baltimore and Toronto.

* KilroyRealty Corp. saidit delivered two office developments totaling 641,000 square feet of space andsigned letters of intent for an additional 83,000 square feet at its ColumbiaSquare mixed-use project in Hollywood, Calif. The committed portion of theproject's office space now stands at 80%.

* Bloomberg News reportedon Equity ResidentialCOO David Santee saying during the company's first-quarter earnings that the veryhigh end of its original guidancerange for 2016 is "unattainable" as the company's New Yorkperformance is slightly below expectations for the year.

The news agency noted that the company had to offerincreased concessions to tenants in February and March due to increased supply.

* The price paidby Hyatt Hotels Corp.for the Thompson Hotel in Miami Beach, Fla., comes to $229.4 million, the South Florida Business Journal reported,citing newly filed documents.

In March, Hyatt said it inked a deal to acquire the 380-roomhotel from an affiliate of Geolo Group for an undisclosed price.

* The 2.7-acre Pier55 park in Manhattan's Meatpacking District received the finalregulatory go-ahead from the U.S. Army Corps of Engineers, Crain's New York Business reported.Construction is expected to begin in the summer.

* Houston-based Transwestern Investment Group is on theverge of buying State Farm Insurance's corporate campus in Richardson, Texas,for almost $825 million in what will be one of the largest deals in history ofnorth Texas, The Dallas Morning News'Biz Beat Blog reported.

The 2.3 million-square-foot high-rise office projectcomprises four buildings and forms part of the $1.5 billion Citylinedevelopment.

After the bell

* MarriottInternational Inc. sawa 19% jump in its first-quarter adjusted EPS, which rose to 87 cents from 73cents in the first quarter of 2015.

Including $7 million, or 2 cents per share, of costs relatedto Marriott's pending acquisitionof Starwood Hotels & ResortsWorldwide Inc., net income totaled $219 million, or 85 cents pershare, compared to $207 million, or 73 cents per share, in 2015.

* AvalonBayCommunities Inc. reporteda year-over-year FFO gain in the first quarter, released second-quarterguidance and detailed plans for a $550 million New York City developmentproject.

For the first quarter, FFO attributable to commonstockholders totaled $284.6 million, or $2.07 per share, compared to $250.6million, or $1.88 per share, in the year-ago quarter. On a per-share basis, FFOincreased by 10.1% year over year.

* Snow Park Capital has amassed a 4.6% stake in and is encouraging the company to pursue stock buybacks, Jeffrey Pierce, arepresentative of the firm, saidin an emailed statement.

* WashingtonReal Estate Investment Trust has found an institutional buyer forits six-building suburban office portfolio in Maryland more than three monthssince rumors about the planned sale emerged.

The company, in reportingits first-quarter results, said it will sell the portfolio in two separatetransactions for $240 million.


* The overall sales volume in New York City topped $10.8billion during the first quarter, marking a 7% year-over-over increase, The Real Deal reported,citing REBNY's first-quarter residential sales report. Also, sales activity inthe Bronx and Staten Island boroughs surged 35% as buyers looked for cheaperoptions amid high prices in Manhattan and Brooklyn, according to the report.


* reportedon the progress of the second hotel that is under construction at Mohegan Sun'scasino in Connecticut. The $130 million, 400-room Earth Tower hotel is expectedto open in the fall, according to the report.

* A 200-room hotel is part of an expansion underway at theGraton Resort & Casinoin Sonoma, Calif., the San FranciscoBusiness Times reported.The publication noted that $800 million has already been invested into theasset, which ranks among the five largest casinos in the state, and theexpansion will take the figure to nearly $1 billion.

The day ahead

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

In Asia, the Hang Seng rose 0.12% to 21,388.03, while theNikkei 225 fell 3.61% to 16,666.05.

In Europe, as of midday, the FTSE 100 was down 1.14% to6,247.99, and the Euronext 100 had fallen 1.25% to 881.01.

On the macro front

The GDP report, the jobless claims report, the EIA naturalgas report, the Fed balance sheet and the money supply report are due out today.

Now featured

Self-storageproperty markets are unappealing, but Public Storage has found deals anyway,CEO says: In an earnings conference call, Chairman, President andCEO Ronald Havner Jr. said that despite more product, lower quality and higherprices in the market for storage properties than in 2015, Public Storage hasfound assets to buy.

Realty IncomeCEO addresses tenant watch list: On an earnings call, CEO John Casebriefly addressed the expected impact of Sports Authority's planned liquidation.

Despiterevenue pullback and choppy NYC, Equity Residential expects strong 2016:Even if 2016 does not turn out to be as "spectacular" as 2015 was, itis still on track to be a "great" year, an executive said in anearnings conference call.

Brixmor exectalks Sports Authority liquidation, new C-suite hires: On anearnings call, Interim President and CEO Daniel Hurwitz doffed his hat toFederal Realty's Donald Wood for the way he handled Brixmor's hiring of his CFO.

Hilton CEOpredicts more M&A, outlines 2016 optimism: On an earningsconference call, President and CEO Christopher Nassetta also weighed in on theplanned combination of Marriott International and Starwood Hotels and ResortsWorldwide.

Hilton CEOlauds REIT spinoff's exec team, but details remain sparse: In anearnings conference call, Hilton President and CEO Christopher Nassettacomplimented Thomas Baltimore Jr., the intended CEO of the company's plannedspinoff, and said more information on the spinoff will come soon.

Data Dispatch:April state of the housing market: Data released in April showed agenerally positive picture of conditions in the U.S. housing market.

Data Dispatch:US equity REITs' capital raising activity down 27.8% YOY:Year-to-date through April 15, publicly traded U.S. equity REITs have favoredsenior debt offerings, raising around $12.30 billion through such issuances.

ResearchRoundup: Wednesday, North American real estate edition: A handfulof reiterations are featured in this roundup of recent research reports.

ResearchRoundup: Wednesday, North American real estate edition: Aninitiation, a downgrade and an upgrade are featured in this roundup of recentresearch reports.

The GuidanceReport: SNL rounds up real estate company guidance from the pastseveral days.

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