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Columbia Property exits Baltimore market; Anbang bows out

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Columbia Property exits Baltimore market; Anbang bows out

Commercial real estate

*Columbia Property Trust Inc.said it sold its soleBaltimore property, 100 E. Pratt St., a class A office tower, for grossproceeds of $187 million. Vision Properties bought the 653,000-square-footasset that serves as the headquarters of T. Rowe Price. Other tenants includePricewaterhouseCoopers.

*The launch of the sales process at the 111 W. 57th St. skyscraper being builton Midtown Manhattan, N.Y.'s Billionaires' Row has been pushed back by about ayear because of the slowdown in the luxury home market, Bloomberg News reported.Property Markets Group and JDS Development Group are co-developing theskyscraper, which is expected to be delivered in 2018. The priciest unit at theproject will have an asking tag of $57 million.

Thebuilding will eventually surpass the One57 tower to rank among the tallestresidential skyscrapers in New York, according to the report.

* The Wall StreetJournal looksat the correlation between the growing wealth of New Yorkers and the upwardtrend in Manhattan's luxury real estate prices.

* A1.38-acre development site that has zoning in place for up to 730 residentialunits in Oakland, Calif., has hit the market and a sale could "lead to oneof the largest changes to the city's downtown core," the San Francisco Business Times reported.The site is part of the city's 2014 Lake Merritt Station Area Plan, under which4,900 new housing units and 1.23 million square feet of new offices could bebuilt in the next 25 years.

DeveloperCarmel Partners is believed to be the leading potential buyer for the parcel,which is expected to fetch more than $35 million. The site could alsoaccommodate up to 476,000 square feet of nonresidential use, according to thereport.

*The demand for commercial real estate is cooling off in leading tech-focusedoffice and apartment markets like San Francisco, Silicon Valley and Seattleafter an extended period of robust growth, CoStar Group reported.An analysis by Fitch Ratings Senior Director Stephen Boyd shows that techtenants in the office and multifamily sphere will likely require less spacethan they did in the past three to four years.

After the bell

*Anbang Insurance Group Co.and its partners said they will no longer pursue an earlier plan to take overStarwood Hotels & ResortsWorldwide Inc., confirming earlier . The Chinese insurer, J.C.Flowers & Co. LLC and Primavera Capital Ltd. cited "various marketconsiderations" as reasons for their decision to back out of theirproposed bid, according to a release.

Subsequently,Starwood reaffirmed its commitment to merge with , whichrecently upsized itsacquisition bid for Starwood to $13.6 billion, or $79.53 per share. Starwoodnoted that it has unanimous backing from its board for the company's pendingtie-up with Marriott, which it said will form the biggest hotel chain in the world.

Atransaction with Marriott, excluding Starwood's timeshare business, will valueStarwood at roughly $13.3 billion, or $77.94 per share.

*Gaming and Leisure PropertiesInc. pricedits underwritten offering of 25 million common shares at a price to the publicof $30.00 apiece. The size of the offering was increased from 19 millionshares. The offering is projected to yield net proceeds of about $718 million,or $826 million if the underwriters' additional-share option is fully exercised.

*Iron Mountain Inc.and Recall Holdings Ltd. will need to sell certain U.S. properties in order forIron Mountain's pending purchase of the Australian firm to be granted antitrustapproval in the country, accordingto a statement from the U.S. Department of Justice.

Housing

* A decline in homeownership among older people in theaftermath of the recession means that a growing number of seniors findthemselves particularly susceptible to rent increases in hot housing markets,especially in high-demand areas, the Journalreported.

Gaming

* InMassachusetts, MGM ResortsInternational is bidding to operate MassMutual Center, astate-owned arena and convention center located near the company's $950 millioncasino in downtownSpringfield, the Las Vegas Review-Journalreported.MGM Springfield is currently under construction and is to open in September 2018, aspreviously reported.

The day ahead

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

InAsia, the Hang Seng dropped 1.34% to 20,498.92, and the Nikkei 225 fell 3.55%to 16,164.16.

InEurope, as of midday, the FTSE 100 was down 1.23% to 6,098.76, and the Euronext100 had fallen 1.91% to 847.86.

On the macro front

Theconstruction spending report, the PMI and ISM manufacturing indexes, theconsumer sentiment report and the U.S. Labor Department's employment report aredue out today.

Now featured

: The upper end of theNew York City market has been flooded in recent years by a wave of luxurycondominium and apartment construction, even as prices continue to soar formore affordable dwellings.

:Panel discussions during the conference's first day touched on REIT earningsmetrics, open-carry laws and class-action lawsuit insurance.

: Statewide gamingrevenues in Nevada were also up, by 8.05%.

:The March 31 North American property news roundup also features Carter ValidusMission Critical REIT II's data center acquisitions in Georgia and Michigan.

: This feature presents a weeklyrundown of recent significant management and board changes and personnel movesin the North American real estate industry, including U.S. REITs and REOCs,homebuilders and gaming operators.

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