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WeWork yet to close $850M NYC deal; Singaporean company buys 33-asset portfolio

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WeWork yet to close $850M NYC deal; Singaporean company buys 33-asset portfolio

Commercial real estate

* WeWork Cos. is still seeking an equity partner to close its $850 million acquisition of the Lord & Taylor building in Midtown Manhattan, N.Y., that was agreed in October 2017, The Real Deal reported, citing sources familiar with the situation. WeWork-managed WeWork Property Advisors was supposed to close the deal for the 424 Fifth Ave. property in August, but the real estate investment vehicle paid an additional $25 million deposit and moved the deadline to Nov. 13, the news outlet reported, citing Hudson's Bay Co., the seller.

WeWork is seeking an equity partner to fund the deal and has recently been showing the property to potential investors. It is also said to be seeking $738 million in debt, the news outlet said, citing the unnamed sources and a Commercial Mortgage Alert report from June.

WeWork has the option to pay another $25 million to extend the deadline to Jan. 31, 2019, if it fails to meet the November deadline and could convert $125 million into equity in a joint venture with the seller, according to the report. It is expected that WeWork would have to spend more than $200 million on redevelopment works at the 663,000-square-foot building, the news outlet added.

* Singapore-based business space solutions provider Ascendas-Singbridge Pte. Ltd. carried out its maiden investment in the U.S. real estate market with the acquisition of a portfolio of 33 prime office properties across three cities.

The deal, financial details of which were not disclosed, covers a total net lettable area of approximately 3.3 million square feet across Portland, Ore.; Raleigh, N.C.; and San Diego, with tenants including Nike and Oracle. The buyer is also opening an office in San Francisco to support its U.S. expansion.

* Facebook Inc. is the Fortune 100 tenant that TIER REIT Inc. has secured for its Domain 12 office tower under construction in Austin, Texas, the Austin Business Journal reported, citing several unnamed sources. Facebook has neither confirmed nor denied its involvement, according to the report.

The 17-story, roughly 320,000-square-foot tower that TIER REIT is co-developing with Endeavor Real Estate Group is expected to be complete in the fourth quarter of 2019.

* Brookfield Property Partners LP completed its $165 million acquisition of a residential project in the Bronx, N.Y., from Somerset Partners and Chetrit Group, The Real Deal reported, citing representatives from Brookfield and Somerset. The acquired properties are 2401 Third Ave. and 101 Lincoln Ave., which span roughly 189,000 square feet of land in the borough's Mott Haven neighborhood.

Brookfield intends to develop roughly 1,300 units at the site across seven buildings, with 30% of the development intended to comprise affordable housing.

* Bridge Investment Group LLC is close to securing a roughly $113 million agreement to buy the 493,738-square-foot, 47-story office tower at 1 N. LaSalle St. in downtown Chicago, Crain's Chicago Business reported, citing a source familiar with the deal.

Hilco Real Estate LLC and MB Real Estate executives Kevin Purcell and Peter Westmeyer bought the tower for $82.5 million in March 2016, Cook County records cited in the report showed.

* Crown Equity is acquiring the 11,600-square-foot retail property at 457-459 N. Rodeo Drive in Beverly Hills, Calif., for about $100 million, The Real Deal reported, citing a source familiar with the deal. Lang & Lang Properties is selling the two storefronts, the news outlet added, citing deed records. The property is leased to fashion labels Alexander McQueen and Brioni.

* The Wall Street Journal featured a report on Kathleen McCarthy, Blackstone Group LP's co-head of real estate alongside Ken Caplan. Real estate has overtaken private equity as Blackstone's largest division and biggest source of profits, the publication said, adding that McCarthy's appointment to the role reflects efforts by Blackstone and its peers to attract more women to leadership roles.

* Nationwide Mutual Insurance Co. paid $83 million for 134 acres of state trust land in Scottsdale, Ariz., in an auction in which it was the only bidder, the Phoenix Business Journal reported. The buyer intends to develop its regional headquarters on the site, along with two hotels, office and other commercial space.

* Regent Partners LLC and The Loudermilk Cos plan to develop a roughly $80 million, 200-room boutique hotel in Atlanta's Buckhead Village, the Atlanta Business Chronicle reported. The project is planned at 371 E. Paces Ferry Road, the site of former headquarters of State Bank & Trust Co. Work is expected to commence in the second quarter of 2019, with completion slated for early 2021.

* Citing public records, the Nashville Business Journal reported that Stoltz Real Estate Partners acquired the 12-story Public Square Garage in downtown Nashville, Tenn., for $54 million. The property includes roughly 1,070 parking spaces and 37,000 square feet of retail space. The publication added that the property's price is double what it sold for three years ago.

After the bell

* CNL Healthcare Properties II Inc.'s board formed a special committee comprising its independent directors to review strategic alternatives for the company, including a potential merger.

Housing

* Citing ATTOM Data Solutions, The Real Deal reported that the return on investment on flipping a home averaged 44.3% in the second quarter, compared to 47.8% in the first quarter. The report added that the most recent figure is the lowest since the third quarter of 2014.

The day ahead

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

In Asia, the Hang Seng decreased 0.01% to 26,973.47, and the Nikkei 225 declined 0.80% to 22,307.06.

In Europe, around midday, the FTSE 100 was down 0.85% to 7,256.55, while the Euronext 100 was down 0.20% to 1,025.18.

On the macro front

The employment situation report, quarterly services survey, Treasury STRIPS report and Baker-Hughes Rig Count 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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