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WeWork parent acquiring Spacious; RMR Group unit sells San Antonio office asset

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WeWork parent acquiring Spacious; RMR Group unit sells San Antonio office asset

Commercial real estate

* WeWork Cos. Inc.'s parent company The We Co. said it is acquiring on-demand workspace provider Spacious Technologies Inc. Spacious partners with landlords to create a network of drop-in workplaces at the landlords' street-level real estate, with offerings ranging from day-passes to annual memberships, according to a release from The We Co. The consolidation comes as WeWork readies for an IPO.

* Observers have raised concerns over potential conflicts of interest between private equity executive Steven Langman and The We Co., The Wall Street Journal reported. Langman, the co-founder of Rhone Group and one of We's early and key backers, also runs a fund that leases buildings to the workspace giant. Langman also oversees executive pay, succession and other critical issues and is also considered to have played a major role in We's foray into property acquisitions.

The company declined to comment on the matter, the publication noted, adding that a recent We filing said its audit committee will set guidelines for deals between the company and the real estate investment vehicle and ensure "such transactions remain appropriate."

* RMR Group Inc. unit The RMR Group LLC sold the former Andeavor headquarters in San Antonio, for which it received offers of close to $200 million, to U.S. Realty Advisors LLC, the San Antonio Business Journal reported, citing industry sources. The 15-acre property sits at 19100 Ridgewood Parkway and comprises a 618,017-square-foot building, which includes a 14-story tower connected to a six-story office building.

U.S. Realty Advisors took out a $140 million loan from Goldman Sachs Bank USA for the purchase, the publication noted.

* Blackstone Group Inc. is keeping between 20 and 50 rent-regulated units vacant at the Stuyvesant Town and Peter Cooper Village apartment complexes in Manhattan, N.Y., following rent reforms that affected the landlord's ability to gain profits, The Real Deal reported. A source familiar with Blackstone's thinking said the landlord is evaluating capital investments and no final decisions have been made, the publication added.

The private equity giant halted renovations and other planned work at the properties in July, Crain's New York Business reported at the time.

* A company affiliated with the Arison family is looking to sell the 28-story, 271-unit Hamilton on the Bay waterfront residential building and surrounding land in Edgewater, Miami, which is expected to trade for over $100 million, The Real Deal reported, citing listing broker Hussami Rockson Group. The property sits on 4.4 acres at 555 NE 34th St. and includes the vacant lot at 640 NE 34th St. and an adjacent four-unit apartment building at 630 NE 34th St.

* Transwestern Development Co. purchased a 22-acre site in Eastvale, Calif., with plans to construct two buildings totaling 338,000 square feet, The Real Deal reported. The project is expected to be completed in the summer of 2020.

* Regent Properties Inc. purchased Park Towers, the two 18-story office towers totaling 545,242 square feet at 1233 and 1333 W. Loop S. in Houston for $89.5 million, The Real Deal reported. About 270,000 square feet of office space is available for lease, according to the report.

* Microsoft Corp. is close to finalizing a deal to expand its office and fully occupy Progress Court, a one-time Heinz warehouse facility at 910 River Road in Pittsburgh, for its cloud storage company Avere Systems, the Pittsburgh Business Times reported, citing sources familiar with the deal. The building totals over 73,000 square feet. Microsoft declined to comment, the publication noted.

* Plymouth Industrial REIT Inc. signed a three-year, 257,962 square-foot lease with third-party logistics company Spartan Logistics at 3100 Creekside Parkway in Columbus, Ohio. The new lease brings the occupancy at the 340,000-square-foot property to 76%.

After the bell

* BSR Real Estate Investment Trust closed its acquisition of two class A garden-style apartment communities in Austin, Texas, for US$104.4 million.

* Washington Real Estate Investment Trust closed the sales of its three power center assets encompassing approximately 850,000 square feet in Maryland for total gross proceeds of approximately $77 million.

The day ahead

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

In Asia, the Hang Seng fell 0.19% to 25,615.48, and the Nikkei 225 rose 0.11% to 20,479.42.

In Europe, around midday, the FTSE 100 was up 0.23% % to 7,105.45, and the Euronext 100 lost 0.54% to 1,039.34.

On the macro front

The state street investor confidence index, the Energy Information Administration petroleum status report and the survey of business uncertainty are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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