trending Market Intelligence /marketintelligence/en/news-insights/trending/utaipmatl-rxmjyftmafcg2 content esgSubNav
In This List

Palo Alto, Calif., office asset sells for $117.5M; Facebook expands in Bay Area


Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage


Insight Weekly: PE firms shift strategies; bank earnings kick off; bankruptcies plummet


Insight Weekly: Stocks limp into 2023; GCC banks set for rebound; deep-sea mining faces pushback


Infographic: The Big Picture 2023 Issuer & Investor Relations Outlook

Palo Alto, Calif., office asset sells for $117.5M; Facebook expands in Bay Area

Commercial real estate

* CM Capital Corp. acquired a three-story office building in Palo Alto, Calif., for $117.5 million, the Silicon Valley Business Journal reported, citing property records. The roughly 2,156-per-square-foot sale of the newly renovated 54,500-square-foot building is one of the highest prices per square foot in the city so far in 2018, the publication added.

A limited liability company led by Law & Associates and Blox Ventures paid roughly $52.9 million for the 1974-built, Bank of America-anchored building roughly three years ago.

The publication added that after its latest acquisition, CM Capital, the real estate arm of the Hong Kong-based Cha family, now owns the entire block, where it already owned the 525 University Ave. building and the underground parking.

* Facebook Inc. is on track to more than double its office footprint in the San Francisco Bay Area by 2020, the San Francisco Business Times reported, citing research from brokerage firm Transwestern. The research indicates that Facebook is set to grow to 9 million square feet by 2020 from less than 4 million square feet in 2017.

* Columbia Property Trust Inc. and Normandy Real Estate Partners formed a joint venture to pursue a $300 million office development that will rise at 799 Broadway in Manhattan, N.Y., The Real Deal reported, citing unnamed sources. The partnership also secured a $187 million construction loan from Apollo Commercial Real Estate Finance Inc. to back the project.

The partners have not yet secured an anchor tenant for the 12-story, 182,000-square-foot project. Ares Management LP recently sold a roughly 50% stake in the project to Columbia Property for more than $70 million.

* Essex Property Trust Inc. acquired a 218-unit apartment complex in San Jose, Calif., from the property's developer, Republic Urban Properties, for $104 million, The Mercury News reported, citing Santa Clara County property records. Essex also agreed to take over $70.1 million of mortgage debt on the Meridian at Midtown apartments from the seller.

The complex, located at 1432 W. San Carlos St., is more than 90% occupied.

* Bridge Investment Group paid $93 million for the 561-unit Esprit at Cherry Creek apartment property in Glendale, Colo., the Denver Business Journal reported. The 5001 E Mississippi Ave. property was sold by a joint venture between TruAmerica Multifamily and Investcorp.

The 1974-built, nine-building complex also offers amenities including a dog park, a private lake and a pool. The property, which previously changed hands for $71 million in 2015, has undergone capital improvements in the last three years, the publication added.

* The office market of Chicago's Financial District could see significant vacancies as three banks plan to leave for newer downtown buildings by 2022, The Real Deal reported, citing a market study by MBRE. The relocations by Bank of America Corp., BMO Harris and Northern Trust Corp. would result in a combined 1.85 million square feet of vacancies in an area where older buildings have been competing with newer towers offering a range of amenities.

* Priderock Capital Partners acquired two apartment complexes in Florida from Fairfield Residential for $98 million, The Real Deal reported. The properties are the 316-unit Waters Edge Apartments rental community at 10901 Northwest 40th St. in Sunrise and the 230-unit Arbor Walk at 4121 E. Busch Blvd. in Tampa.

* Reuters featured a report on the budding movement to convert church properties to social and affordable housing in the Washington, D.C., area. City housing departments across the U.S., including New York City, Chicago, Los Angeles and Miami, have also started taking notice of the rising trend, the newswire added, citing David Bowers of housing-focused nonprofit Enterprise Community Partners.

After the bell

* AvalonBay Communities Inc. agreed to sell an 80% stake in five apartment communities, totaling 1,301 homes and encompassing 58,000 square feet of retail space in Manhattan, for estimated net proceeds of approximately $460 million.

The day ahead

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

In Asia, the Hang Seng slipped 0.19% to 26,572.57, and the Nikkei 225 declined 0.80% to 23,783.72.

In Europe, around midday, the FTSE 100 was down 0.49% to 7,382.69, and the Euronext 100 was down 0.31% to 1,044.33.

On the macro front

The employment situation report, international trade report, consumer credit report and Baker-Hughes Rig Count report 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.

The Daily Dose has an editorial deadline of 7 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.