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AllianceBernstein eyes Brookfield project; SL Green wins bid for NYC asset

Commercial real estate

* Citing unnamed sources, The Real Deal reported that AllianceBernstein Holding LP intends to maintain roughly 250,000 square feet in New York City and is considering Brookfield Property Partners LP's 2 Manhattan West on Manhattan, N.Y.'s Far West Side. The asset management giant, which leases roughly 1 million square feet at 1345 Sixth Ave. in Midtown, is planning a move to Nashville, Tenn., as part of cost-cutting measures and will reportedly spend roughly $70 million to build a new headquarters there.

If it chooses to anchor the Brookfield Property project for its remaining New York footprint, the 2 million-square-foot development would kick off construction, the report noted.

* SL Green Realty Corp. said it won the bid for the leasehold interest of the foreclosed 2 Herald Square property and has agreed to hold the property in a joint venture with an Israel-based institutional investor after closing the acquisition.

The Manhattan, N.Y., property spans 369,000 square feet of office and retail space. Tenants include WeWork, Amazon and Victoria's Secret.

SL Green also agreed to sell the fee interest of the 635 Madison Ave. property for $151 million. The fee interest was acquired for $145 million in 2014.

* HFZ Capital Group and Westbrook Partners secured a $300 million refinancing for the conversion of the Belnord rental apartment property at 2360 Broadway on Manhattan's Upper West Side into condominiums, The Real Deal reported. Wells Fargo provided the refinancing.

The 680,000-square-foot, 14-story asset was acquired from Extell Development for $575 million in 2015 and its 215 units are being converted to condos with a projected sellout of $1.35 billion.

* Joel Gluck's Spencer Equity is attempting to raise $118 million through bonds on the Israeli market to refinance the newly completed 28-story Azure rental tower in downtown Brooklyn, N.Y., The Real Deal reported, citing documents filed with the Tel Aviv Stock Exchange. The 150-unit property is owned by Gluck and Yoel Goldman's All Year Management in a 50-50 joint venture.

The proceeds from the bonds are marked for repayment of the $105 million of debt on the 436 Albee Square property that is due in July, the report noted, citing the documents.

* Jones Lang LaSalle Inc. is working on a proposal that would lead to the development of the first convention center in Long Island, N.Y., The Wall Street Journal reported. JLL is the lead developer on a $1 billion project in the town of Islip and, along with Suffolk County officials, is considering adding a convention center to the project.

The project includes a sports medicine center, a medical office and research center, and a sports arena, and the addition of a convention center would be determined by market conditions, the report noted, citing county officials.

* Goldman Sachs Asset Management Private Real Estate, or GSAM PRE, acquired the 341-unit Hanover Mill Avenue apartment complex at 101 W. Fifth St. in Tempe, Ariz., for $95.1 million, marking its first acquisition in the Phoenix area and 16th multifamily investment nationwide, the Phoenix Business Journal reported.

Citing the company's co-head Joseph Sumberg, the report noted that GSAM PRE plans to make $2 billion worth of real estate acquisitions in 2018, with Phoenix included in the list of target markets.

* The domination of downtown Los Angeles' office market by a small number of landlords is causing it to see simultaneous increases in both rents and vacancy rates, a "paradox" for office markets, The Real Deal reported, citing GlobeSt.com. NAI Capital Executive Managing Director Joe Faulkner told GlobeSt.com that landlords like Kilroy Realty Corp., Douglas Emmett Inc. and Brookfield can "ignore" rising vacancy rates, which would generally cause landlords to lower rents.

Citing Colliers, the report noted that rents increased to $3.29 per square foot in the fourth quarter of 2017, a 9.3% year over year increase, and the vacancy rate was 20.6%.

* Citing CBRE, the San Francisco Business Times reported that downtown Oakland, Calif.'s office market is the tightest in the U.S. with a vacancy rate of 5.3%, followed by San Francisco at 5.7%. The report noted that most of the markets with the lowest vacancies are benefiting from the tech industry, citing Colin Yasukochi, research director for CBRE in San Francisco.

* Cappella Living Solutions plans to develop a $150 million senior-living community in Lakewood, Colo., west of Denver, the Denver Business Journal reported. The Ridge Pinehurst will have 180 independent-living apartments, 96 assisted living units and 42 memory care homes in its first two phases, along with a number of amenities. Completion is expected in the fall of 2019.

After the bell

* Wyndham Worldwide Corp. said its board approved the hotelier's planned spinoff of its Wyndham Hotels & Resorts, Inc. unit into a standalone company.

Housing

* PulteGroup Inc.'s Pulte Homes of Minnesota plans to develop a new 393-home community for seniors aged 55 and older in Corcoran, Minn., the Minneapolis / St. Paul Business Journal reported. The development would mark the debut of PulteGroup's Del Webb brand in Minnesota.

* Citing the Houston Association of Realtors, the Houston Business Journal reported that the average and median prices for single-family home sale in Houston reached all-time records in April. The median price increased 5.3% year over year to $240,000 and the average price increased 5.2% to $305,092.

Single-family home sales in the city increased 6.9% year over year in April to 7,070.

The day ahead

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

In Asia, the Hang Seng rose 0.89% to 30,809.22, while the Nikkei 225 was up 0.39% to 22,497.18.

In Europe, around midday, the FTSE 100 fell 0.35% to 7,635.86, and the Euronext 100 was down 0.16% to 1,068.16.

On the macro front

The consumer price index, the jobless claims report, the EIA natural gas report, the treasury budget report, the Fed balance sheet and the money supply report are due out today.

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