Commercial real estate
* Kilroy Realty Corp. purchased five parcels between roughly Fifth and Seventh avenues and Stewart Street and Olive Way in downtown Seattle from The Vance Corp. The property, which is in proximity to Amazon's high-rise campus, sold for $133 million, the Puget Sound Business Journal reported. The office landlord also bought a circa-1925 parking garage at 600 Olive Way, a small surface parking lot at 1818 Sixth Ave., the circa-1926 Lloyd Building at 601 Stewart St. and a large surface parking lot at 1825 Seventh Ave.
* WeWork Cos. Inc. is looking to backtrack on leases it recently signed on as many as 100 buildings around the world, equivalent to 10% to 15% of its overall office footprint, people familiar with the matter told The Information. In New York, Chestnut Holdings is trying to evict The We Co. unit from a Midtown building, alleging a violation of its terms of lease agreement, according to Crain's New York Business. A judge granted a temporary injunction to allow WeWork to stay after it filed evidence.
Spacious Technologies Inc., a small office space firm acquired by WeWork in August, told its clients that it would shut down at the end of the year, The Real Deal reported. Spacious CEO Presten Pesek did not immediately respond to a request for comment by the publication.
* Food retailers including Albertsons Cos. LLC and Walmart Inc. are turning to small warehouses to meet increasing online orders faster, The Wall Street Journal reported. The micro-fulfillment centers typically range from 10,000 to 20,000 square feet and can fulfill roughly 4,000 orders a week, with a building timeline of three to six months, according to Jefferies Group LLC. The owner of the Safeway and Jewel-Osco chains is working with Takeoff Technologies Inc., which builds automated warehouses, to build more small fulfillment facilities at two stores in South San Francisco, Calif., and San Jose, Calif., the Journal noted.
* New York real estate developer Atlas Capital Group, LLC bought the Los Angeles Times printing plant in downtown Los Angeles from Harridge Development Group LLC for about $240 million, the publication reported, citing people who know about the deal.
* Vornado Realty Trust sold a New York penthouse for $100 million, The Wall Street Journal reported, citing people familiar with the matter.
* Taconic Investment Partners LLC and Nuveen Real Estate are looking to secure $408 million in financing to construct a 420,347-square-foot office tower at 2 Hudson Square, expected to be completed by March 2025, the Commercial Observer reported.
* The Miami City Commission is seeking $250 million in loans and grants to develop a 2,500-unit affordable home ownership program in all of the city's commission districts, The Real Deal reported.
* Real estate company Two Trees Management Co. LLC plans to build two new mixed-use towers with 1,000 housing units and six acres of public space on River Street in the North Brooklyn waterfront in New York, 6 Sqft reported. The company recently purchased three vacant sites for $150 million for the project between North First and North Third Streets in Williamsburg, which will also include 250 affordable units, the publication said.
* Median rental prices in Manhattan, N.Y., jumped 8.5% year over year, reaching $3,600 in November, The Real Deal reported, citing a Douglas Elliman rental report. It is the highest rental increase recorded in over a decade, and the second-highest on record, according to the report. Inventory in the borough jumped 3.6% year over year, and 6.5% over the month.
* The Blackstone Group Inc. sold a 1 million-square-foot Whirlpool Corp. distribution center at 500 S. Millers Ferry Road in Wilmer, southeast of Dallas, to LBA Logistics for an undisclosed price, the Dallas Business Journal reported. The property, the value of which was last assessed at $45.4 million by the Dallas Central Appraisal District, was owned by Blackstone-backed Gramercy Property Trust.
* Liberty Property Trust is closing its headquarters in Wayne, Pa., after its merger with Prologis Inc., which will result in a layoff of 94 employees, the Philadelphia Business Journal reported, citing a notice filed with the Pennsylvania Department of Labor.
* Food delivery company DoorDash Inc. is leasing the entire nine-story Grand 2 speculative office building developed by Lincoln Property Co. in Tempe, Ariz., the Phoenix Business Journal reported. The building spans 352,000 square feet and is part of the Papago Park Center, which will total 60 acres and 3.2 million square feet of office, apartments, hotel and retail on the north of Loop 202.
* Software development company Zendesk Inc. is in final stages of signing a lease for 300,000 square feet at the 640,000-square-foot first phase of 5M project of Brookfield Properties and Hearst Corp. in San Francisco, the San Francisco Business Times reported. The $1 billion project on four acres at Fifth and Mission streets will comprise 702 housing units and 853,000 square feet of office space.
* Schnitzer West LLC bought three contiguous lots totaling nearly 1.5 acres at 10635 NE Eighth St. in Bellevue, Wash., from Bosa Development for $65 million, the Puget Sound Business Journal reported, citing public records.
* The D.C. Housing Authority entered into a development agreement with MRP Realty, CSG Urban Partners and Taylor Adams Associates to redevelop its headquarters at 1133 North Capitol St. NE into a mixed-use property with over 1,000 apartments, the Washington Business Journal reported. The project will include two phases of mixed-use buildings, with between 200 to 228 affordable units. The agency first selected the development team in 2014, but the project never started, the publication noted.
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng inched up 2.57% to 27,687.76, and the Nikkei 225 rose 2.55% to 24,023.10.
In Europe, around midday, the FTSE 100 was up 1.84% to 7,406.99, and the Euronext 100 increased 1.11% to 1,138.63.
On the macro front
The retail sales report, the import and export prices, the business inventories report and the Baker-Hughes Rig Count are due out today.
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