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Host Hotels moving HQ to JBG property; Google plans Sunnyvale, Calif., project

Commercial real estate

* Host Hotels & Resorts Inc. plans to relocate its corporate headquarters in Bethesda, Md., to a roughly 55,000-square-foot space at an under-construction building at 4747 Bethesda Ave., the company said. Occupancy is expected in late 2019. The company's present headquarters are on Rockledge Drive.

The 15-story, 281,000-square-foot property is being developed by JBG SMITH Properties, which will also move its headquarters to the location upon completion, the Washington Business Journal reported. Consulting firm Booz Allen Hamilton Inc. has also leased 65,000 square feet at the location, taking occupancy up to 71%, the report noted. JBG will occupy 80,000 square feet.

* Google Inc. submitted a plan to develop more than one million square feet of office space on roughly 40.5 acres in Sunnyvale, Calif.'s Moffet Park area, the Silicon Valley Business Journal reported. The plan comprises two new five-story office buildings with sloping green roofs and a four-story parking structure. The 200 Caribbean Drive building will span 505,078 square feet and the 100 Caribbean Drive building will cover 537,000 square feet.

The project would replace 13 existing buildings on the site, with many built in the 1970s, the report noted, citing public documents. The occupancy of of the existing buildings is unclear, according to the report. The planned campus on the site, dubbed Caribbean, would provide space for an estimated 4,500 employees.

Google has bought nearly 60 parcels in the area worth more than $1 billion in 2017, the report pointed out. In July, it bought 52 sites for $820 million, followed by two deals in September worth $318.7 million and $245.5 million.

* Building and Land Technology completed the sale of three office buildings that make up nearly half of the Concourse Corporate Center in suburban Atlanta to CBRE Global Investors, the Atlanta Business Chronicle reported. The famous King and Queen towers in the 2.2 million-square-foot, 63-acre complex were not part of the sale.

The sold properties comprise two eight-story buildings and one four-story building. The purchase price was not reported.

The Sandy Springs, Ga., asset was placed on the market in May seeking offers of up to $580 million for the entire property. Building and Land paid "just under" $500 million for it two years ago, the report noted.

* Costello Construction acquired the 142-room lakefront Sheraton hotel in Columbia, Md., from Brookfield Asset Management Inc. for an undisclosed price, the Baltimore Business Journal reported. Brookfield Asset Management had paid $34.4 million for the 197,194-square-foot property in 2007, the report noted, citing state property records.

The buyer plans to carry out $10 million worth of upgrades, and CEO David Costello said the Sheraton brand would be replaced with a higher-end Marriott International Inc. brand. The property is situated near other projects that Costello owns or is involved in, according to the report.

* CSM Corp. sold its Central Park Commons shopping center property in Eagan, Minn., for $126.3 million to an entity related to American Realty Advisors, the Minneapolis/St. Paul Business Journal reported, citing a public filing. The shopping center, which CSM built over several years, opened in October 2016. It is anchored by Hy-Vee Inc., Hobby Lobby, Total Wine & More and Sierra Trading Post.

The property totals 434,000 square feet of leasable space on 47 acres and is at almost full occupancy. The report also noted that there are opportunities to develop small shops or restaurants in the parking area.

* German real estate company Newport US RE, which has bought 47 buildings spanning one million square feet along with a parking deck, four acres of surface parking and vacant lots in south downtown Atlanta, plans to invest $500 million to redevelop the assets, the Atlanta Business Chronicle reported, citing Newport Executive Vice President Katharine Kelley.

The project, which commences in 2018, aims to deliver 1.8 million square feet. The roughly $300 million redevelopment of the existing properties is expected to complete by 2021. A market-driven development of the four acres of surface parking area is expected to cost roughly $200 million, the report noted, citing Newport President Jake Nawrocki.

* Architect and developer Cary Tamarkin and Chinese partner CL Investment Group are targeting a $161.3 million sellout for 13 condominium units at the 555 West End Ave. project on Manhattan, N.Y.'s Upper West Side, The Real Deal reported, citing filings with the New York State Attorney General's office.

The partners are converting a landmarked former Catholic school building at the site into a residential asset. Tamarkin paid $50 million for the property in 2014.

* Terra obtained more than $94 million in financing for its City Center development in Pembroke Pines, Fla., from three lenders, The Real Deal reported, citing property records. Florida Community Bank provided a $56.7 million loan, Oakland Finance & Investment LLC provided $24 million and SunTrust Bank appears to have provided $13.5 million, according to the report.

The first phase of the project is expected to complete by 2018-end. A 387-unit rental community project is part of the development's second phase, which also includes roughly 100,000 square feet of commercial space. The third phase will include a 350-room hotel on the site of the present city hall, according to the report.

* Heitman bought the 22-story tower at 1401 Lawrence St. in downtown Denver for an undisclosed price, the Denver Business Journal reported. The property spans 310,000 square feet and is anchored by law firm Polsinelli, which occupies 87,000 square feet and has its name displayed at the top of the tower, the report noted.

The developer and seller of the 98%-leased property is Toronto-based First Gulf Corp.

* The Securities and Exchange Commission is suing luxury real estate developer Robert Shapiro and his Woodbridge Group of Cos. for an alleged $1.2 billion Ponzi scheme that targeted thousands of investors, Reuters and The Wall Street Journal reported. A lawyer for Shapiro said the former Woodbridge CEO denies the SEC's allegations, the Journal noted.

Woodbridge and certain affiliates filed for chapter 11 bankruptcy protection Dec. 4, the publication noted. Shapiro resigned as CEO Dec. 1, Reuters noted.

* San Bernardino County Employees' Retirement Association plans to invest roughly $160 million in real estate in 2018, IPE Real Assets reported.


* Moody's Investors Service revised its outlook on Boyd Gaming Corp. to stable from positive following the company's agreement to buy five casino properties for roughly $856 million.

The day ahead

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

In Asia, the Hang Seng increased 0.72% to 29,578.01, and the Nikkei 225 increased 0.16% to 22,902.76.

In Europe, around midday, the FTSE 100 was up 0.01% at 7,605.01, while the Euronext 100 was down 0.25% at 1,041.17.

On the macro front

The durable goods orders report, the personal income and outlays report, the new home sales report, the consumer sentiment report, the Kansas City Fed Manufacturing Index, and the Baker-Hughes Rig Count report are due out today.

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.