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Irish developer eyes Chrysler Building; 2 Tishman Calif. assets may fetch $650M

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Irish developer eyes Chrysler Building; 2 Tishman Calif. assets may fetch $650M

Commercial real estate

* Johnny Ronan of Ronan Group Real Estate is mulling the purchase of the art-deco Chrysler Building in Manhattan, N.Y., from Mubadala Investment Co. and Tishman Speyer Properties LP, Irish Independent reported, citing an unnamed source close to the Irish property developer.

Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Council, paid $800 million in 2008 for a 90% stake in the 77-story tower. In 2018, the fund became part of Mubadala, another of Abu Dhabi's investment arms, the publication added.

* Tishman Speyer is preparing to sell the Brickyard and Collective office campuses in the Playa Vista neighborhood of Los Angeles, with bids expected to range between $600 million and $650 million for both properties, The Real Deal reported, citing unnamed sources.

Leased by Facebook and Yahoo, the properties will be put on the block as early as the week commencing Jan. 14. Combined, the properties measure 620,720 square feet.

* PMB Capital Investments is developing a $250 million mixed-use project dubbed The Station in Sachse, Texas, The Dallas Morning News reported, citing PMB Capital partner Taylor Baird. Located on Bush Turnpike between Miles and Merritt roads, the 119-acre development will offer 400,000 square feet of commercial and retail space, upward of 600 apartments and over 250 single-family homes. Ashton Woods and K. Hovnanian Homes will construct the houses.

The development is expected to open in early 2020.

* Hall Group was cleared by the planning commission of Frisco, Texas, to build more than 2,000 residential units at Hall Park, the city's oldest and largest office development, The Dallas Morning News reported, citing developer Craig Hall.

Hall Group purchased the asset 30 years ago and has been developing it since 1997, the publication added. Hall Park, which comprises 17 office buildings, is expected to have offices make up 70% to 75% of its space, with the reminder accommodating one or two hotels, as well as residential and service retail space. Pending final approval from Frisco City Council, the developer will be able to construct towers of over 25 floors on the eastern, highway edge of the project.

* Turkish investment company Polidev is seeking to sell two office buildings in San Francisco for an expected sum of approximately $200 million, the San Francisco Business Times reported. The company is planning to divest a building at 747 Front St. in Jackson Square and a 15-story tower at 351 California St. in the Financial District.

The properties previously changed hands for $25 million in 2012 and $35 million in 2010, respectively, the publication added.

* The Richman Group secured $188.5 million in public and private financing for the construction of its mixed-use development in the East Harlem neighborhood of Manhattan, Commercial Observer reported, citing property records. A collaboration between the New York City Housing Development Corp., the city's Department of Housing Preservation and Development and Citigroup Inc. provided the loans for the 19-story, 404-unit project on 201 E. 125th St., according to the report.

The transaction for the three-category loan closed Jan. 1.

* Facebook Inc. signed a lease with developer Overton Moore Properties Inc. for 225,679 square feet at the latter's 605,000-square-foot under-construction industrial park in Newark, Calif., marking the social media giant's entry into the city, the San Francisco Business Times reported, citing Facebook spokesperson Kyle Gerstenschlager.

Facebook intends to prepare food for its Menlo Park, Calif., headquarters at the planned four-building Morton Commerce Center, where it will occupy one building that is slated for completion in July. The three remaining buildings are expected to be completed in September. Overton Moore paid Morton Salt over $30 million for 29 acres in December 2017, the publication added.

* According to a report by The Wall Street Journal, industrial space availability dropped to 7% in the fourth quarter of 2018, reflecting the lowest point since 2000. Citing CBRE, the publication said demand outpaced supply by roughly 6 million square feet in the three-month period, or by 29 million square feet in the full year.

During the quarter ended Dec. 31, 2018, there was a 6% rise in new warehouse construction coming online to 57 million square feet, compared to the previous three-month period. The publication added, citing CBRE's global chief economist and head of research for the Americas, Richard Barkham, that the warehouse market will remain competitive in 2019. The publication also pointed toward a December 2018 report by real estate services firm JLL that noted a record-low industrial vacancy rate of 4.8% and projected that in 2019, the market for industrial space "is likely to hit the pause button."

The day ahead

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

In Asia, the Hang Seng was down 1.38% to 26,298.33, while the Nikkei 225 was closed today.

In Europe as of midday, the FTSE 100 slid 0.98% to 6,850.48, and the Euronext 100 declined 0.96% to 926.19.

On the macro front

There are no notable economic reports 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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Data Dispatch: 116 US and Canadian real estate companies increase dividends in 2018: During December 2018, 16 real estate investment trusts headquartered in the U.S. along with three based in Canada announced increases to their regular dividends.

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