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Vornado property to be auctioned; VEREIT selling MOB to Thor for $67M

Commercial real estate

* Vornado Realty Trust's Skyline business campus, the eight-building complex Baileys Crossroads in Fairfax County, Va., is slated to go on the auction block Dec. 21, the Washington Business Journal reported. The company defaulted on the terms of its $678 million mortgage for the 2.6 million-square-foot complex, according to the report.

Interested developers are expected to redevelop or reposition the struggling asset, which was withheld from Vornado's contribution to the JBG SMITH Properties portfolio, which is a pending spinoff and merger of Vornado's Washington, D.C.-area business with The JBG Cos.

The campus has a taxable assessment of almost $325 million, and Vornado still owes about $140 million in debt service, the report said, citing commercial real estate debt tracker Trepp LLC.

* Meanwhile in Manhattan, N.Y., Vornado and Related Cos. landed a $396 million loan from Deutsche Bank to refinance the 85 10th Ave. office building in the Chelsea district, The Real Deal reported, citing property records filed with the city. Vornado is said to own a 50% stake in the 540,299-square-foot building, according to the report.

* VEREIT Inc. has agreed to sell a two-story medical office building in Cupertino, Calif., to Thor Equities for $67 million, the Silicon Valley Business Journal reported, citing industry sources. The deal for the 100,325-square-foot property at 19000 Homestead Rd. marks Thor's first acquisition in the Silicon Valley market, while VEREIT will have no office properties in the Bay Area left after the transaction, the report said. The property, leased by Kaiser Permanente until February 2023, is situated across the road from the under-construction Apple Campus 2.

* W. P. Carey Inc. COO and head of asset management Thomas Zacharias plans to retire from the company, effective March 31, 2017.

The company will promote Brooks Gordon to head of asset management upon Zacharias' retirement.

* Northwind Group, Harrison Street Real Estate Capital LLC and the Engel Burman Group jointly acquired a luxury senior housing facility on Manhattan's Upper West Side for almost $150 million, The Real Deal reported, citing unnamed sources. The 14-story property at 305 West End Ave. spans 185,000 square feet and was sold by Esplanade Venture Partnership.

The buyers, who also obtained a $110 million acquisition loan from Key Bank, plan to upgrade the building with new amenities but will keep it as senior housing, the report said, citing the sources.

* A&E Real Estate Holdings and Benedict Realty Group snapped up a portfolio of 10 rent-stabilized buildings in Queens, N.Y., for around $130 million from Ares Management, unnamed sources told The Real Deal. The 403,800-square-foot portfolio comprises 531 apartments.

* Federal Capital Partners said it closed a $328 million sale of five apartment communities to mark the largest multifamily transaction in the Washington, D.C., area in 2016. The suburban properties comprise a total of 2,490 units.

* After The Wall Street Journal recently reported on Amazon.com Inc.'s plans to open more than 2,000 brick-and-mortar grocery stores, the e-commerce giant said it has "no plans to open 2,000 of anything," according to a new Journal report.

But commenting on Amazon's statement, the people familiar with the matter cited in the publication's initial report maintained that the company "envisions potentially opening" the stores, depending on the outcome of the related trials.

After the bell

* CoreCivic Inc.'s board declared a quarterly cash dividend of 42 cents per share, down from a previous payout of 54 cents per share.

Housing

* Home sales in the North Texas area saw a 26% year-over-year jump in November, The Dallas Morning News reported, citing data from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems. The median price of pre-owned homes in the region increased 15% year over year in November.

The Real Estate Center's chief economist James Gaines attributed the boost in sales to a nervousness about an expected increase in interest rates, according to the publication.

* Homes sales in the Charlotte region jumped 19.7% year over year in November, according to the Charlotte Regional Realtor Association. The median sale price increased 7.7% from the year-ago period.

Association president Maren Brisson-Kuester said the jump in sales was partially due to a rise in mortgage rates and a seasonal "last minute push," according to a report from the Charlotte Business Journal.

Gaming

* China UnionPay said in a statement emailed to Reuters that it has not changed its overseas ATM withdrawal limits. The statement comes in the wake of a South China Morning Post report that said Chinese authorities are imposing a 50% cut on UnionPay ATM withdrawal limits in Macau.

Bloomberg News reported on the resulting slide in casino stocks in the U.S. and Australia after the SCMP report. The news outlet also reported separately that Las Vegas Sands Corp. fell 12.8% Dec. 8, while Chairman Sheldon Adelson's fortune fell $3.3 billion.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market. In Asia, the Hang Seng slipped 0.44% to 22,760.98, while the Nikkei 225 increased 1.23% to 18,996.37. In Europe, around midday, the FTSE 100 was up 0.21% to 6,946.08, and the Euronext 100 was up 0.51% to 911.86.

On the macro front

The consumer sentiment report and the wholesale trade report are due out today.

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Target Market: Risk-retention rules, maturity wave could spur CMBS defaults in 2017: While the market for commercial mortgage-backed securities is functioning smoothly, new regulations could combine with maturities in 2007-vintage loans to sow confusion in the coming months, market participants say.

Data Dispatch: 130 North American real estate companies increase dividends through Dec. 1: Between Nov. 16 and Dec. 1, six SNL-covered North American REITs announced dividend increases.

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.