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Vornado's Skyline sold; Atlanta Financial Center changes hands


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Vornado's Skyline sold; Atlanta Financial Center changes hands

Commercial real estate

* With no competing bids, representatives of the note holders that launched an auction of Vornado Realty Trust's Skyline office park in Fairfax County, Va., acquired the 2.6 million-square-foot property for $200 million, the Washington Business Journal reported.

The struggling complex, which is more than 50% vacant, was put on the auction block after Vornado reportedly defaulted on the terms of its $678 million mortgage on the property. The company still owes roughly $140 million on the debt, the publication noted, citing Trepp LLP.

* Regency Centers Corp. and Equity One Inc. will put their proposed merger to a vote at their respective special shareholder meetings in 2017, according to a filing. At its meeting, Regency shareholders will also vote on the company's proposal to increase its authorized common shares and expand its board's size to 12 directors. The deal is set to create a shopping center REIT with a $15.6 billion total market cap.

* In other M&A updates, the respective shareholders of Farmland Partners Inc. and American Farmland Co. will vote on the companies' pending merger at separate special meetings Jan. 31, 2017.

* The Atlanta Financial Center has changed hands for $222.5 million more than a year after owners General Motors Asset Management and Hines were first reported to be considering selling the 914,774-square-foot property. The class A, three-building commercial office property was sold to Sumitomo Corp. of Americas and marks the latter's first such investment in Atlanta, the Atlanta Business Chronicle reported.

* The Real Deal reported that CIM Group, Kushner and LIVWRK paid $345 million to acquire a 135,000-square-foot development site at 85 Jay St. in the Dumbo neighborhood of Brooklyn, N.Y., where they plan to build a mixed-use building. The transaction, which provides as-of-right development rights for 1.1 million square feet, is the second part of the group's 2016 Watchtower acquisition from Jehovah's Witnesses. The New York Post also reported on the news.

* Developer Jon Cronin's proposed 22-story residential development along the Boston Waterfront on Seaport Boulevard received approval from Environmental Secretary Matthew Beaton, The Boston Globe reported. The $260 million luxury condominium tower project remains subject to other approvals.

Opponents say the project violates state laws regulating the size of buildings on the waterfront and public access to the water.

* AmeriCann, which earlier in 2016 unveiled plans to convert into a REIT, is looking to build the largest medical cannabis facility in the U.S. on a 53-acre site in Freetown, Mass. The medical marijuana facility developer tapped Campanelli Construction as the general contractor for the initial phase of the 1 million-square-foot project, to be called the Massachusetts Medical Cannabis Center, the Boston Business Journal reported.

* RFR Realty obtained $245 million in mortgage and construction loans for the office building at 285 Madison Ave. in Midtown Manhattan, N.Y., The Real Deal reported. Goldman Sachs and Aareal Capital Corp. provided the loan package, which replaced prior loans.

* The Ashforth Co. and an institutional investor sold the 30-story Pacwest Center in Portland, Ore., to LPC Realty Advisors I LP for $170 million, marking the biggest commercial office deal in the city in 2016, the Pittsburgh Business Times reported.

* Quadrum Global and Simon Baron Development told The Real Deal that they secured a $150 million loan from AIG for the construction of a 42-story, 467-unit rental tower at 29-26 Northern Blvd. in the Long Island City neighborhood of Queens, N.Y. The 500,300-square-foot project is expected to complete in early 2018.

* The Bergdorf Goodman building on Manhattan's Fifth Ave. was one of 10 new landmarks approved by the Landmarks Preservation Commission, according to The Wall Street Journal. Separately, the Journal reported that apartment buildings are increasingly offering automated parking systems in Manhattan and Brooklyn.

* Castle Lanterra Properties picked up the 369-unit Alexan Sloan's Lake apartment complex at 1550 Raleigh St. in Denver for close to $103 million, marking its first acquisition in the area, according to the Denver Business Journal. Trammell Crow Residential was the developer of the newly built property.

* Financial services company Charles Schwab Corp. agreed to a 10-year lease renewal for 417,266 square feet of headquarters space at 211 Main St. in San Francisco, the San Francisco Business Times reported. With its existing lease set to end in May 2018, Schwab had reportedly considered relocating elsewhere in the Bay Area.

After the bell

* President-elect Donald Trump tapped Peter Navarro, an economist and a professor, to lead the newly created White House National Trade Council.

* Trump's transition team also announced that billionaire investor Carl Icahn agreed to be a special adviser on regulatory reforms. Icahn will also play a key role in choosing the next chair of the SEC, according to The Wall Street Journal.

* Capital Senior Living Corp. President, COO and board member Keith Johannessen died from cancer Dec. 20.


* New York Gov. Andrew Cuomo and state legislators are considering releasing $1 billion in funding to support housing in Albany. The plan sparked criticism as the proposed amount would cut in half the $2 billion in housing money allocated in April's budget, Crain's New York Business reported.

* New York City Mayor Bill de Blasio's administration is looking for developers to build as many as 200 affordable apartment units in Brooklyn's East New York, according to Crain's New York Business. The apartments would be constructed on a more-than-half-acre site that underwent a controversial rezoning earlier in 2016.

The day ahead

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

In Asia, the Hang Seng fell 0.80% to 21,636.20, and the Nikkei 225 was down 0.09% to 19,427.67.

In Europe as of midday, the FTSE 100 was down 0.11% to 7,033.66, and the Euronext 100 had retreated 0.08% to 928.63.

On the macro front

The durable goods orders, the GDP report, the jobless claims report, the Chicago Fed national activity index, the FHFA house price index, the leading indicators, the EIA natural gas report, the Kansas City Fed Manufacturing Index, the Fed balance sheet and the money supply report are due out today.

Now featured on S&P Global Market Intelligence

The Property Ledger: Wheeler REIT pays $9M for NC asset; Trans World picks up German hotel: The Dec. 21 edition of the North American property ledger also includes Regency Centers' acquisition of a Florida shopping center.

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