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Pennsylvania REIT/Macerich close to commencing $325M Philly revamp project; Weyerhaeuser agrees to unload printing paper biz


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Pennsylvania REIT/Macerich close to commencing $325M Philly revamp project; Weyerhaeuser agrees to unload printing paper biz

Commercial real estate

* PennsylvaniaReal Estate Investment Trust and Macerich Co.'s $325 million redevelopment of the Galleryat Market East shopping mall in Philadelphia is expected to commence Oct. 7,according to a reportfrom The Philadelphia Inquirer.

The redeveloped project will be called , andwill contain 730,000 square feet of retail space. Completion is slated for2018, and no tenants have been announced so far, the report said.

* WeyerhaeuserCo. entered into an agreement to sell its printing papers business to OneRock Capital Partners LLC, marking the end of its strategic review of thecellulose fibers business.

* The New York Times'Square Feet column featured a reporton a "smart-growth" development push along a 1.7-mile stretch ofMaryland's Rockville Pike thoroughfare, which connects Bethesda and Rockville.Federal Realty InvestmentTrust is close to completing a nearly $270 million first phase ofits Pike & Rosemixed-use project in the area. A second $205 million phase is also underway.

A number of other developers are also lining up projectsthat could add around 5,000 residential units, 1.2 million square feet ofoffice space and 1.6 million square feet of retail space in the area, thereport noted.

* PrologisInc. is set to commence work on its first ground-up project as partof the $1.2 billion Oakland Global Trade and Logistics Center project, which isa redevelopment of aformer army base in Oakland, accordingto the San Francisco Business Times.

* VornadoRealty Trust in part filled up a large vacancy in its One PennPlaza tower near the Penn Station in Manhattan, N.Y., Crain's New York Business reported.Cable television network Fuse Media has signed a 27,000-square-foot lease atthe 57-story building where around 150,000 square feet were vacated by U.S.Customs and Border Protection, the report said.

* New York City overtook London to become the topdestination for cross-border real estate investment, The Wall Street Journal reported,citing Cushman & Wakefield. The foreign investment volume in the Big Applefor the year ended in June outpaced London's nearly $25 billion "by aslither," the report said.

Bloomberg News also reportedon the ranking.

* Starwood Capital acquired the One Atlantic Center landmarkbuilding in Atlanta for an undisclosed price, the Atlanta Business Chronicle reported.The 50-story property at 1201 West Peachtree St. spans 1.1 million square feet.Sources familiar with the deal had told the news outlet in July that Starwoodwas expected to pay around $330 million for the asset.

* Miami's Wynwood neighborhood saw its highest-eversingle-property sale with a $53.5 million deal for buildings and land at2600-2630 NW Second Ave. Citing Tony Arellano — an executive at Metro 1Commercial, which co-brokered the sale — MiamiHerald reportedthat the property contains buildings with a total of 41,616 square feet on a42,000-square-foot lot.

The buyer is an affiliate of ASG Equities, and plans toredevelop the property into a retail project and just under one acre of openpark space, according to the report.

* Developer ZOM Holdings filed permits for a 40-storyresidential tower with retail and restaurant space in downtown Dallas' ArtsDistrict, The Dallas Morning News reported.The tower will contain 416 apartment units, and the permit is valued at $132million, the report said.

* The North Texas office market is expected to witness arecord year for leases, with the third-quarter net leasing volume reaching 1.7million square feet, The Dallas MorningNews reported,citing CBRE. The total figure for the first three quarters of 2016 has reachedabout 4.5 million square feet, which is close to the total figure for all of2015, the report pointed out.

* In a reportciting figures from MPF Research and Axiometrics Inc., the Journal said apartment rents declined in some of the priciest U.S.cities during the third quarter. The publication said the "dramaticreversal" could herald the end of a six-year boom in the country's rentalmarket.

Rental growth has slowed down in four consecutive quartersand turned negative in certain regions, the report noted.

After the bell

* Realty IncomeCorp.'s notes offering priced at 98.671% of the principal amount for aneffective yield to maturity of 3.153%. The offering of $600 million of 3.00% senior unsecured notesdue 2027 is anticipated to close Oct. 12.

* MedEquitiesRealty Trust Inc. wrapped up its IPO of 19,925,333 common shares, including 19.0 millionshares sold by the company and 925,333 shares by the selling stockholders.


* LennarCorp.'s LMC unit received an additional $250 million commitment for theLennar Multifamily Venture development vehicle, bringing the total commitmentto $2.2 billion.

The latest commitment marks the completion of fundraisingfor long-term multifamily development investment vehicle, Lennar said.


* Efforts to allow casino gambling in Georgia appear to beheating up, with Wynn ResortsLtd. hiring a law firm as its lobbying team for the 2017legislative session, The AtlantaJournal-Constitution reported.The news comes a day after MGMResorts International Chairman and CEO James Murren made his latestpitch for a more than$1 billion gambling resort in Atlanta.

The day ahead

Early morning futures indicators pointed to a lower openingfor the U.S. market.

In Asia, the Hang Seng was up 0.42% to 23,788.31. The Nikkei225 climbed 0.50% to 16,819.24.

In Europe as of midday, the FTSE 100 had dropped 0.63% to7,029.75, and the Euronext 100 had declined 0.77% to 884.16.

On the macro front

Mortgage applications increased 2.9% from a week ago on aseasonally adjusted basis for the week ended Sept. 30, according to theMortgage Bankers Association's weekly survey. The market composite index, which measuresmortgage application volume, increased 3% on an unadjusted basis, compared tothe previous week.

The ADP employment report, the international trade report,the Gallup U.S. job creation index, the PMI services index, the factory ordersreport and the ISM non-manufacturing index are also due out today.

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