Commercial real estate
* Manulife John Hancock is looking to sell the 40-story 1 S. Wacker Drive office tower in Chicago's Loop for roughly $370 million, Crain's Chicago Business reported, citing a source familiar with the offering. The company paid $344 million for the 1.2 million-square-foot tower in 2015 when it was 15% vacant.
Almost a quarter of the property is now vacant. Jones Lang LaSalle Inc. is marketing the asset, according to the report.
* A joint venture between a Brookfield Property Partners LP-sponsored private real estate fund and The Martin Group obtained a $107 million senior secured construction loan for its planned mixed-use residential project in downtown Oakland, Calif., the Commercial Observer reported, citing CIT Group Inc., the lender.
The Martin Group will develop and operate the seven-story scheme, dubbed Station on 12th, which will bring 333 apartment units and 23,570 square feet of ground-level retail space at 301 12th St.
* A consortium led by Horizon Realty Group Inc. is paying between $90 million and $100 million to buy the 344-unit Park Michigan in Chicago's South Loop, Crain's Chicago Business reported, citing people familiar with the transaction. Crescent Heights Inc. is divesting the 30-story apartment building at 1212 South Michigan Ave., which it acquired for $65.5 million in 2011. The property is 92.2% leased.
The Real Deal noted that Crescent Heights is also looking to sell the 332-unit Lex building at 2138 S. Indiana Ave. in Chicago for between $116 million and $120 million.
* Bloomberg News featured a report on Prologis Inc.'s 2015 sale of a 21-building campus in Menlo Park, Calif., to Facebook Inc. Prologis CEO Hamid Moghadam told the news outlet in an interview that his company had paid $110 million for the site roughly a decade ago, and ended up selling it to Facebook for roughly $400 million. The warehouses on the site are being torn down to develop housing and office space for Facebook.
The deal and the price it commanded reflect the dearth of space in fast-growing urban areas that are seeing residential and office demand wipe out manufacturing and warehouse space, the report noted. Such demand is paying off for industrial landlords such as Prologis that own well-located real estate.
* Target Corp. is in talks to lease roughly 35,000 square feet of retail space at the base of Macklowe Properties Inc.'s One Wall St. project in Manhattan, N.Y., The Real Deal reported, citing unnamed sources. Macklowe is transforming the former office building into a 566-unit condominium development with a retail base.
The sources said the lease talks present an interesting situation as grocer Whole Foods agreed to lease roughly 44,000 square feet of the building's 150,000-square-foot retail base in July 2016.
* Rockwood Capital was revealed to be Midtown Equities' majority equity partner on the latter's recent deal to buy the 1 Broadway office building in Manhattan for $140 million, The Real Deal reported, citing unnamed sources. The two firms are now seeking a $120 million loan to finance the acquisition and reposition the 12-story property into modern offices, taking the building's total capitalization to roughly $200 million, the sources told The Real Deal.
* DivcoWest Real Estate Investments is in advanced talks to acquire the office building at 331 N. Maple Drive in Beverly Hills, Calif., for $83 million from RREEF America, the asset management arm of Deutsche Bank AG, The Real Deal reported, citing unnamed sources. The 89,000-square-foot property was built in 2000 as the headquarters of Geffen Records.
* Carmel Partners Inc. sold the Pearl Apartments property in Denver's Technology Center to Goldman Sachs Group Inc. for about $121.8 million, the Denver Business Journal reported, citing Denver County public records.
The 270,814-square-foot luxury apartment community, located at 7571 E. Technology Way, also includes a pet spa and a billiards clubroom. Property manager Greystar confirmed the sale, according to the report.
* Chipotle Mexican Grill Inc. said it plans to relocate its headquarters to Newport Beach, Calif., from Denver. The company will transition its Denver and New York office functions to Newport Beach and Columbus, Ohio, during the next six months.
According to CoStar, the restaurant chain had signed a 126,000-square-foot lease at Hines' recently completed 1144 15th St. office tower in downtown Denver for its corporate headquarters in December 2017.
* The American arm of Australia's Goodman Group has fully leased its 989,809-square-foot industrial park in Santa Fe Springs, Calif., to Damco on a 10-year lease, The Real Deal reported, citing CoStar. The Goodman Gateway property comprises six buildings spanning 75 acres.
The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Nikkei 225 dropped 1.11% to 22,437.01, while the Hang Seng was up 0.31% to 30,760.41.
In Europe, around midday, the FTSE 100 slid 0.01% to 7,787.43, and the Euronext 100 rose 0.44% to 1,080.45.
On the macro front
The jobless claims report, the FHFA House Price index, the existing home sales report, the EIA natural gas report, the Kansas City Fed Manufacturing index, the Fed balance sheet and the money supply report are due out today.
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