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Knotel clinches $1.3B valuation; CIM seeks up to $400M for office property

Commercial real estate

* Flexible workspace startup Knotel Inc. raised $400 million during a fundraising round that closed this week, reaching a valuation of $1.3 billion, Bloomberg News reported. Investors included Kuwait's Wafra Inc. and Japan's Mori Trust, Itochu Corp. and Mercuria Investment Co. The coworking company pitches itself as more stable than its larger competitor WeWork Cos. Inc. as it only counts large companies such as Starbucks Corp., Oracle Corp., Microsoft Corp. as clients.

* CIM Group LLC is looking to sell the former 380,000-square-foot Sears department store turned office building at 1955 Broadway in Oakland, Calif., for between $300 million and $400 million, the San Francisco Business Times reported, citing sources familiar with the offering. CIM purchased The Uptown Station building, leased entirely to mobile payments company Square Inc., for $180 million from Uber Technologies Inc. in 2017.

* Private equity giant Blackstone Group Inc. purchased an industrial portfolio comprising three warehouses totaling 367,848 square feet next to Miami International Airport for $56 million, The Real Deal reported, citing records. The properties, located at 3208 NW 72nd Ave. and 3108 NW 72nd Ave., were sold by Airport Trade Center.

* New York-based Bromley Cos. plans to develop a 140,000-square-foot office tower in Tampa, Fla., with Highwoods Properties Inc. and Atlanta developer Jim Meyer as partners, the Tampa Bay Business Journal reported. Construction on the 22-acre Midtown One project, which will include apartments, retail and restaurants, is expected to begin in the fourth quarter and complete in the first quarter of 2021.

* Highwoods Properties also signed a lease for 98,000 square feet with an unnamed tenant at its Inveresk property at 11000 Weston Parkway in Cary, N.C., bringing its occupancy to over 80%.

* Florida-based Melo Group plans to build two 60-story waterfront residential towers totaling 782 units and 9,000 square feet of ground floor retail and commercial space in Edgewater, Fla., The Real Deal reported, citing The Next Miami. The project, dubbed Island Bay, will be built at 700 NE 24th St.

After the bell

* Paramount Group Inc. agreed to acquire Market Center, a two-building class A office complex in San Francisco's South Financial District, for approximately $722.0 million.

* Highwoods Properties will enter Charlotte, N.C., and exit Greensboro, N.C., and Memphis, Tenn., as part of a comprehensive new investment strategy focusing on so-called Best Business District office markets detailed Aug. 21.

Housing

* Home sellers in New York City offered fewer discounts than they did earlier in the summer, despite a surplus of homes on the market for sale, according to a July StreetEasy Market report. In Manhattan, the number of discounts offered by sellers declined by 4% from two months earlier, when 15.6% of homes had a discount — the highest share in 2019 so far.

Queens and Brooklyn also saw price cuts down by 1.5% and 2.8% from earlier this summer. Total sales inventory increased 10.9% year over year in Manhattan, 16.9% in Brooklyn, and 17.8% in Queens.

The day ahead

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

In Asia, Hang Seng dropped 0.84% to 26,048.72, while the Nikkei 225 gained 0.05% to 20,628.01.

In Europe, around midday, the FTSE 100 fell 0.59% to 7,161.28, and the Euronext 100 was down 0.39% to 1,050.52.

On the macro front

The jobless claims report, the PMI composite FLASH report, the leading indicators report, the EIA natural gas report, the Kansas City Fed Manufacturing index, the Fed balance sheet and the money supply report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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