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Hudson Pacific in talks to buy Macerich mall; Liberty Property expands in Calif.

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Hudson Pacific in talks to buy Macerich mall; Liberty Property expands in Calif.

Commercial real estate

* Hudson Pacific Properties Inc. is in advanced discussions with Macerich Co. to buy its 755,000-square-foot Westside Pavilion shopping center in West Los Angeles, The Real Deal reported, citing sources with knowledge of the matter.

Art Coppola, the CEO of retail real estate investment trust Macerich, first revealed plans to sell the mall at 10800 W. Pico Blvd. during an earnings call in November 2017, saying that several potential buyers had expressed interest to rezone and redevelop the site.

Macerich plans to remain a partner in the property following the sale, the sources told the publication. Hudson Pacific, Macerich and GPI did not respond to requests for comments, the report noted.

* Liberty Property Trust acquired a fully leased class A industrial building at 5959 Randolph St. in Commerce, Calif., for $92.7 million from an undisclosed seller. The purchase of the 400,169-square-foot asset increases the company's Southern California presence to 3.7 million square feet.

* The flagship residential arm of Brookfield Asset Management Inc. is in discussions to purchase San Diego real estate developer OliverMcMillan LLC, the Atlanta Business Chronicle reported, citing a statement that the developer gave to the publication.

OliverMcMillan led the redevelopment of the former Streets of Buckhead in Atlanta into the mixed-use The Shops Buckhead Atlanta. The boutique real estate company, however, said the project, which is still under construction though largely built out, is not involved in the talks with Brookfield.

* Time-share operator Diamond Resorts International is poised to buy The Modern Honolulu hotel in Waikiki, Hawaii, for an undisclosed amount, the Pacific Business News reported, citing Douglas Rucker, managing director of the hotel. Owner M Waikiki LLC paid $80 million to buy the 353-room property in 2006 from developer Brian Anderson.

Diamond Resorts is also developing a new resort in Kailua-Kona, Hawaii, the report added.

* New York City Mayor Bill de Blasio reached an agreement with Related Cos. and the owners of the New York Mets for a revised plan to redevelop Willets Point in Queens, N.Y., signaling a revival for the project that stalled in 2015, The New York Times reported. The new plan from the original developers calls for 1,100 apartments, a school, an open space and retail development on six acres at Willets Point Boulevard and Roosevelt Avenue.

The developers had originally planned to build a shopping mall and garage. The mall has been removed from the plan and a task force will be convened to create a development framework for the remaining 17 acres at the site that is also known as the Iron Triangle, the report added.

* Sentinel Real Estate Corp. paid $135.3 million to acquire three office buildings in Research Triangle Park, N.C., from a Global Securitization Services-managed entity dubbed Longleaf Pine Funding Co., the Triangle Business Journal reported, citing Wake County deed records.

The buildings, covering 485,500 square feet, sit on 67 acres on Development Drive and house Lenovo, according to the report.

* Washington Squared Owner secured a roughly $90.0 million construction loan for a seven-story, 138,797-square-foot hotel in South Beach, Fla., the South Florida Business Journal reported, citing a development application. Bank of the Ozarks assumed a $45 million mortgage from another lender in 2015 and increased the loan to nearly $90.0 million.

The hotel, which is planned for a 1.6-acre site at 601 to 685 Washington Ave., will feature 312 rooms, 25,189 square feet of amenities, 46,849 square feet of retail and 258 parking spaces.

* The University of Texas at Austin is seeking proposals from companies for the development of a new on-campus basketball arena in Austin, Texas, according to a release.

The university is seeking a partner that has developed and operated multipurpose basketball arenas and training facilities costing roughly $350 to $450 million. Applicants must also be able to contribute all or a substantial portion of the cost to develop, build and operate the new arena.

After the bell

* Following a recent management shakeup, Wheeler Real Estate Investment Trust Inc. plans to hire a third-party adviser to help it conduct a strategic review to maximize shareholder value.

Housing

* A proposal by PulteGroup Inc.'s Pulte Homes to redevelop the unused Oak Tree Golf Club in Oakland Park, Fla., into 646 single-family homes will be up for review before the city's Development Review Committee Feb. 8, the South Florida Business Journal reported, citing the company. The plan also includes 40 acres of land for open space and recreation. The company has the 139-acre site, located at 2400 Oak Tree Road, under contract from Blackwood Partners, the report noted.

Owing to the planned change of land use, the project will also need approval from the Broward County Commission.

The day ahead

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

In Asia, the Hang Seng fell 5.12% to 30,595.42, while the Nikkei 225 shed 4.73% to 21,610.24.

In Europe, around midday, the FTSE 100 was down 2.38% at 7,160.28 and the Euronext 100 had fallen 2.32% to 1,003.85.

On the macro front

The international trade report, the Redbook and the JOLTS report are due out today.

Now featured on S&P Global Market Intelligence

* Real Estate Rundown: Amazon HQ could stretch housing markets, boost apartment rents: The company's decision on the site of its second headquarters will likely benefit apartment landlords, including real estate investment trusts, to a potentially dramatic degree, observers said.

* Data Dispatch: US real estate ETFs log net outflows of $1.1B in January: Chart Watch: As of Jan. 31, the S&P 500 outperformed U.S. real estate exchange-traded funds, with 5.73% and 26.41% one-month and one-year total returns, respectively.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription. Articles and links are correct as of publication time.

Ayesha Waqar contributed to this report.