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CyrusOne reviewing strategic options; Alibaba's Tsai to pay $3.5B for NBA assets

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week.

One for the taking

* CyrusOne Inc. is working with an undisclosed adviser to review strategic options after the data center real estate investment trust was approached by at least one potential suitor, Bloomberg News reported, citing people familiar with the matter. The news outlet reported that a bidder consortium including KKR & Co., Stonepeak Infrastructure Partners and I Squared Capital was in the early stages of contemplating a bid for the company, with other potential bidders also interested.

Property prowling

* Executive vice chairman of Alibaba Group Holding Ltd., Joe Tsai, is paying about $3.5 billion, including debt, for the remaining 51% stake he does not already own in NBA's Brooklyn Nets and the Barclays Center arena, Bloomberg News reported, citing a person familiar with the transaction. The deal is scheduled to close by September-end.

* Office landlord Paramount Group Inc. agreed to buy a two-building class A office complex in San Francisco's South Financial District for about $722.0 million in a deal set to close in the fourth quarter. The Market Center comprises a property at 555 Market St., which spans 280,000 square feet, and another property at 575 Market St., which comprises 473,000 square feet. According to an earlier report, the seller is private equity giant Blackstone Group Inc.

Paramount also completed its acquisition of a 44% joint venture interest in an office property at 55 Second St. in San Francisco in a transaction that valued the asset at about $402.0 million.

* Highwoods Properties Inc. agreed to buy the 841,000-square-foot, 90%-leased Bank of America Tower at Legacy Union, now under construction in Charlotte, N.C.'s Uptown central business district, for $436 million. The move is part of the office REIT's plan to foray into Charlotte and exit Greensboro, N.C., and Memphis, Tenn.

* Metro Loft Management LLC agreed to purchase the 684,000-square-foot headquarters of American International Group Inc. at 175 Water St. in Manhattan, N.Y.'s Financial District for $270 million, The Real Deal reported, citing unnamed sources. According to the report, Vanbarton Group LLC is taking an up to $75 million preferred equity stake in the deal, while Blackstone is providing a $175 million senior mortgage.

* Silverstein Properties Inc. sold a portion of the ABC Inc. campus in New York City for approximately $220 million to Taconic Investment Partners LLC, the Commercial Observer reported, citing sources familiar with the transaction. The West End Campus is part of the nine-building campus Silverstein acquired in 2018 for $1.15 billion.

Funds funneled

* Harrison Street held the final close of its seventh U.S. opportunistic real estate fund at its $1.3 billion hard cap, exceeding its original $950 million fundraising target.

The alternative real asset investment firm said it raised an additional $302.5 million in co-investment vehicles to invest alongside Harrison Street Real Estate Partners VII LP, for a total of $1.6 billion of equity raised and total buying capacity of about $4 billion.

* Knotel Inc. raised $400 million in its latest fundraising round, putting its valuation at least $1.3 billion, Bloomberg News reported, citing co-founder and CEO Amol Sarva. The flexible workspace startup plans to use the funds to expand its footprint in New York, San Francisco and Los Angeles.

WeWork risk

* Several landlords, including Boston Properties Inc., TIAA-CREF, Beacon Capital Partners and Moinian Group, are exposed to coworking giant WeWork Cos. Inc. via US$47.2 billion of rental commitments, London's Financial Times reported, citing real estate data firm CoStar. WeWork establishes special-purpose vehicles for its leases, meaning landlords do not have direct recourse to the parent company should it fail to pay rent, the report said.

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