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Brookfield lands NYC tenant; Airbnb signs big San Francisco office lease


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Brookfield lands NYC tenant; Airbnb signs big San Francisco office lease

Commercial real estate

* Accenture is taking up 250,000 square feet at Brookfield Property Partners LP's One Manhattan West tower on Manhattan, N.Y.'s far West Side, The Wall Street Journal reported. The global professional-services company is consolidating its New York offices with the new lease. It was reportedly mulling a lease at the property back in April.

Citing an unnamed source, the publication noted that Amazon is also in talks to take up space at Brookfield's six-building Manhattan West project, and another professional-services firm, Ernst & Young LLP, has been in talks to potentially lease 600,000 square feet at One Manhattan West.

* Airbnb signed up for what is San Francisco's largest office lease so far in 2017 with a 287,000-square-foot deal at Zynga's headquarters building at 650 Townsend St., the San Francisco Business Times reported, citing confirmation from the home-rental company. Airbnb was reported to be in talks for the lease back in May.

* Madison Realty Capital provided its largest ever loan with $300 million in construction financing for Ceruzzi Properties and SMI USA's luxury condominium project in Manhattan's Midtown East, The Real Deal reported, citing unnamed sources. The 72-story development at 138 E. 50th St. will comprise 124 luxury condos and some 7,500 square feet of retail space.

* Brooks Brothers landed a $109 million refinancing from Morgan Stanley for its building at 346 Madison Avenue in Manhattan, The Real Deal reported, citing property records filed with the city. The clothing retailer owns and occupies the 122,600-square-foot property, which has been its flagship New York location for more than 100 years.

* Mutual insurance company Guardian Life Insurance is in discussions to sublease about 100,000 square feet at 10 Hudson Yards in Manhattan from Coach and is considering selling its headquarters at 7 Hanover Square in Manhattan's Financial District, The Real Deal reported, citing unnamed sources.

Guardian exercised an option to acquire its 846,000-square-foot headquarters earlier in 2017 for $147 million from the Milstein family and is looking to flip the property, the report noted, citing Real Estate Alert. The asset could fetch offers of up to $423 million, the report added.

* Citing people familiar with the matter, the Journal reported that Kushner Cos. has been subpoenaed by New York federal prosecutors concerning the use of the EB-5 investment visa program. The publication said it is unclear what potential violations the U.S. attorney is probing. Kushner Cos. is owned by the family of senior White House adviser Jared Kushner, who formerly headed the company and is the son-in-law of U.S. President Donald Trump.

* China's recent crackdown on capital outflows is expected to reduce overseas property investments by 84% in 2017, Bloomberg News noted, citing a Morgan Stanley report. The news outlet pointed out that about 30% of property transactions in Manhattan so far in 2017 have involved Chinese entities.

* Holliday Fenoglio Fowler LP arranged two loans totaling $171 million on behalf of Westwood Financial to fund a 1,050,350-square-foot multistate retail portfolio.

* An affiliate of Magnolia Capital splashed $88 million for the Park & Market apartment complex in Raleigh, N.C., from an affiliate of Crow Holdings, the Triangle Business Journal reported, citing Wake County records. The 409-unit property in Kane Realty's North Hills development previously changed hands for $82 million in 2012.

Kane Realty and its affiliates own, lease and manage the retail space in the recently sold property as well as throughout the development, the report noted.

* Exxon Mobil Corp. subsidiary XTO Energy Inc. has placed its 14-story office property in downtown Fort Worth, Texas, on the market, the Dallas Business Journal reported. The Petroleum Building has about 94,000 square feet of rentable space and has 534 parking spaces in an adjacent connected garage, along with 31,175 square feet of retail space. XTO plans to relocate 1,600 north Texas employees to Houston in the upcoming years, the report noted.

* The industrial vacancy rate in Greater Los Angeles remained at a low of 1.1% during the second quarter, while rents rose 8.2% year over year, The Real Deal reported, citing CBRE.

* Best Buy Co. Inc. is on the lookout for between 500,000 square feet and 600,000 square feet of industrial space in Houston, the Houston Business Journal reported, citing multiple sources close to the deal. The report said it is unclear what operations the facility is being sought for.

After the bell

* A Digital Realty Trust Inc. unit priced an underwritten public offering of $350 million of 2.750% notes due Feb. 1, 2023, and $1.0 billion of 3.700% notes due Aug. 15, 2027.

* Wyndham Worldwide Corp. reported net income for the second quarter of $78 million, or 75 cents per share, down from $156 million, or $1.39 per share, in the corresponding 2016 period.

* Wyndham Worldwide plans to split its hotel business into two separate, publicly traded companies and explore strategic options for its European rental brands.

* Equinix Inc. posted year-over-year gains in second-quarter funds from operations and adjusted funds from operations and offered approximate AFFO guidance for the 2017 full year.

* Equity Residential's operating partnership agreed to issue an aggregate $700.0 million worth of notes in a public offering.

* PGIM Real Estate raised $300 million in the first close of its recently launched U.S. real estate debt fund, PERE News reported.

The day ahead

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

In Asia, the Hang Seng decreased 0.28% to 27,531.01, and the Nikkei 225 declined 0.25% to 20,029.26.

In Europe, around midday, the FTSE 100 was up 0.19% to 7,425.78, and the Euronext 100 was up 0.18% to 998.75.

On the macro front

The chain store sales report, the Challenger job-cut report, the Gallup good jobs rate report, the Bloomberg Consumer Comfort Index, the ISM non-Mfg index, the factory orders report, the PMI services index, the EIA natural gas report, the Fed balance sheet and the money supply report are due out today.

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Data Dispatch: NAV monitor: US REITs trading at 2.5% median discount to NAV as of Aug. 1: Chart Watch: Of the top 10 companies trading at the greatest discounts to net asset value as of Aug. 1, eight were from the retail sector.

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