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Hotel planned near Simon mall; Brandywine partners with flexible rental platform


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Hotel planned near Simon mall; Brandywine partners with flexible rental platform

Commercial real estate

* An Atlas Cos. affiliate plans to develop a 250-room hotel at 3630 Peachtree Road in Atlanta's Buckhead neighborhood, a block away from Simon Property Group Inc.'s Phipps Plaza mall, the Atlanta Business Chronicle reported. The report noted that Simon Property is also planning a 150-room hotel addition to Phipps Plaza development.

The Atlas affiliate has the site for the more than $130 million hotel project under contract and construction is expected to commence later in 2018. The hotel would rise next to the 34-story Ritz-Carlton tower, according to the report.

* Simon Property has filed a pre-application with Miami-Dade County officials to expand the Regal Cinemas theater at the Falls open-air shopping mall to 58,020 square feet with 16 screens from 39,786 square feet with 12 screens, the South Florida Business Journal reported.

The expansion would remove an equivalent amount of retail space from the roughly 1.3 million-square-foot mall amid a trend of mall landlords adding more entertainment space, the report noted.

* Brandywine Realty Trust is partnering with LiquidSpace Inc. to help market vacant office space in its buildings for short-term, flexible leases, the Philadelphia Business Journal reported. Existing tenants may also sign up to such leases, the publication added.

According to the report, Brandywine has an initial 113,356 square feet available across 14 buildings in Philadelphia's Center City and suburbs through LiquidSpace and is considering a similar arrangement in its other office markets.

* Howard Hughes Corp. is teaming up with the city of Allen, Texas, to build a 270-acre mixed-use development, the Dallas Business Journal reported, citing the company's senior vice president of development, Mark Bulmash. The master-planned Monarch City project is slated to include 4,000 multifamily residential units, two hotels, about 4.25 million square feet of office space and 300,000 square feet of retail space.

The development will span 8.7 million square feet of office, retail, residential and green space, and construction is expected to last seven to 10 years.

* Inc. plans to develop a multistory fulfillment center in metro Atlanta in a $75 million to $100 million project, the Atlanta Business Chronicle reported, citing sources familiar with the plans. According to the report, it was not confirmed where exactly the project would be located or whether Amazon has chosen a developer.

The report noted that engineering firm Eberly & Associates filed plans in April on behalf of an unidentified user for a four-story, 640,000-square-foot distribution center spanning roughly 92 acres along West Park Place Boulevard in Gwinnett County, Ga.

* Starwood Capital Group plans to build a new headquarters in Miami Beach, Fla., The Real Deal reported, citing a memo sent out to employees, adding that the investment firm plans to move into the undisclosed location by 2021.

* Hines formed a joint venture with Kay Partners LTD to develop a 150-acre parcel in Kay, Texas, into a business park called Pintail Crossing. The master-planned development, spanning up to 2.2 million square feet, will be located between Amazon and Igloo's distribution centers.

* McDermott International Inc. expects to relocate to a new headquarters in Houston, Texas, after a $6 billion merger with Chicago Bridge and Iron Co. NV and the expiry of its present lease in two years, the Houston Business Journal reported, citing McDermott CEO David Dickson. The CEO of the Houston-based company said the headquarters may be in the Energy Corridor area, adding that he is not considering any other cities for the headquarters and that office plans will be finalized in upcoming months, according to the report.

* The proportion of new apartment leases signed with concessions in Manhattan, N.Y., jumped to 44.3% in April, compared to a 28.6% share in April 2017, The Real Deal reported, citing Douglas Elliman. The share of new leases with concessions in March was 41.7%. Median rents in the borough slipped 1.8% year over year to $3,355, while listing inventory dropped 13.7%.

* The New York City boroughs of Brooklyn and Queens saw record levels of concessions in new rental deals in April, The Real Deal reported, citing Douglas Elliman.

The share of concessions for new rental transactions in Brooklyn jumped to 51% from 14.7% in April 2017, marking the fifth consecutive months of record concession levels in Brooklyn. The net effective median rent in Brooklyn dipped 2.9% year over year to $2,686, marking the 11th monthly decline over the past year.

Northwest Queens saw a 65.1% share of concessions in new April deals, up from 45.4% in April 2017, marking the fifth time in the past seven months that a record was set in the borough, the report noted. The net effective median rent in Queens dropped 11.7% year over year to $2,646, representing the eighth decline in the last nine months.

* Citing JLL, The Real Deal reported that for industrial buildings larger than 10,000 square feet in the Los Angeles market, the sale price jumped 17.3% year over year to an average of $157 per square foot in the first quarter, with some properties commanding more than $300 per square foot.

The report added that the average sale price has increased roughly 70% from $93 per square foot in 2013. The rise was attributed to increased demand from a variety of tenants as well as a lack of supply.

* A joint venture between Wilkinson Corp. and Torchlight Investors paid $72.5 million for the 431-unit 32Hundred Lenox multifamily community in Atlanta's Buckhead neighborhood from Elite Street Capital, the Atlanta Business Chronicle reported. The buyers plan to complete a renovation of the 14-acre complex that commenced in 2015. The complex, built in 1961, spans six buildings with a number of amenities.


* The median home price in California's San Mateo County surpassed that of San Francisco to become the most expensive Bay Area housing market in April, marking the first time in a decade that San Mateo prices were higher than in San Francisco, the San Francisco Business Times reported, citing Pacific Union's chief economist Selma Hepp.

The median home price in San Mateo County came to $1.47 million in April, while San Francisco's median home price was $1.39 million. The overall Bay Area saw a 15% year-over-year increase in median home prices to $980,000 and a 5% rise in sales activity.

The day ahead

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

In Asia, the Hang Seng rose 1.02% to 31,122.06, and the Nikkei 225 climbed 1.16% to 22,758.48.

In Europe, around midday, the FTSE 100 was down 0.09% at 7,693.397, and the Euronext 100 was down 0.19% at 1,068.34.

On the macro front

The import and export prices report, the consumer sentiment report and the Baker-Hughes Rig Count report are due out today.

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