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Duke selling portfolio to Granite REIT; Westfield mall seeks medical tenants

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Duke selling portfolio to Granite REIT; Westfield mall seeks medical tenants

Commercial real estate

* Duke Realty Corp. is the seller in Canada-based Granite REIT's recent US$232.5 million deal to acquire four single-tenant warehouses near Columbus, Ohio, according to a report from Columbus Business First. Duke developed the assets, which together span more than 3.8 million square feet.

The publication added that Duke officials said they were not authorized to talk about the deal.

* MacKenzie Commercial Real Estate brokers are seeking medical tenants for the second level of the former Lord & Taylor department store at Westfield Corp.'s mall in Annapolis, Md., the Baltimore Business Journal reported. The Lord & Taylor store at the 1.49 million-square-foot Westfield Annapolis Mall closed in April as part of a corporate restructuring, the report noted.

Citing Adam Nachlas, senior vice president at MacKenzie, the report noted that the strategy is part of a trend of converting dead retail space to new uses. The brokers are seeking physician groups or medical operators for the space.

* Amazon.com Inc. plans to build a new 855,000-square-foot sorting facility in the Park 70 at West Jefferson development in West Jefferson, Ohio, and the facility would be developed by Duke Realty, Columbus Business First reported, citing documents submitted to the state. The facility is expected to open by late 2019.

The report added that Duke's sale of the four-asset portfolio to Granite REIT would free up capital to invest in the development.

* The Puget Sound Business Journal reported that Amazon has "grudgingly accepted" the Seattle City Council's newly passed head tax on large businesses. Having suspended development plans in Seattle until the council acted on the tax, the e-commerce giant resumed work on a 17-story tower at its headquarters after a watered down version of the tax was passed, the report noted.

Citing a statement from Amazon Vice President Drew Herdener, the report noted that company remains "very apprehensive" for its future growth in Seattle in light of the council's approach to large businesses.

* Global technology-engineering firm Syska Hennessy Group leased 55,000 square feet at SL Green Realty Corp.'s 1185 Sixth tower in Manhattan, N.Y., the New York Post reported. The property is undergoing major capital improvements, the report noted. Syska is moving to the location from 1515 Broadway.

* At The Real Deal's 11th Annual New York Showcase and Forum, developers insisted that Manhattan's office and residential development markets still have ample room to grow. Silverstein Properties CEO Marty Burger pointed out that London has rebuilt 50% of its stock with new office space in the past 20 years and Hong Kong has rebuilt 80%, while the figure in New York is 7%, according to the report.

* WeWork Cos. is lining up deals to lease a total of 408,000 square feet across five Seattle locations and 119,000 square feet at the Summit II tower in Bellevue, Wash., the Puget Sound Business Journal reported, citing NKF. The report noted that WeWork is also said to be planning two more locations in Bellevue that could more than double its space in the city. The co-working company occupies or leases roughly 902,000 square feet combined in Seattle and Bellevue, the report noted, citing NKF.

* A joint venture led by Lincoln Property Co. bought the 403-unit Meridian at Carlyle apartment building in Alexandria, Va., for an undisclosed price and renamed it Lincoln at Old Town, the Washington Business Journal reported. The asset, at 401 Holland Lane, has an assessed value of over $134 million, the report noted, citing Alexandria tax records.

The venture secured $95.5 million in acquisition financing for the deal, the report noted, citing a release from Holliday Fenoglio Fowler LP, which arranged the financing. The property was sold by an affiliate of Paradigm Cos.

* PCCP acquired the 31-story SunTrust International Center at 1 S.E. Third Ave. in downtown Miami from Crocker Partners for $127 million, The Real Deal reported. The buyer financed the transaction using a $101.8 million loan from Invesco.

The 440,000-square-foot office building has nearly 170,000 square feet of vacant space, and it includes a fully leased 33,500-square-foot retail portion with a 13,000-square-foot Walgreens. Crocker Partners paid $82.4 million for the asset in 2011 and carried out a $13.5 million refurbishment in 2015.

* The South Florida region is expected to see more than 2.8 million square feet of new retail space in 2018, with 1.8 million square feet slated to open in Miami-Dade County alone, The Real Deal reported, citing Marcus & Millichap. The report noted that demand for retail space is expected to remain strong in the region thanks to its low unemployment rate and status as a luxury shopping destination.

Marcus & Millichap expects Miami's retail rent to increase 4.9% year over year to $37.40 per square foot in 2018.

* The Arizona State Land Department is planning an auction of three parcels, totaling 228 acres and worth at least $52.1 million, in the next two months, the Phoenix Business Journal reported. The sale proceeds will be funneled toward state jails and the public school system.

After the bell

* Invitation Homes Inc. disclosed funds from operations for the first quarter of $120.6 million, or 23 cents per share, compared to $11.0 million, or 4 cents per share, in the comparable 2017 period.

* A partnership led by CatchMark Timber Trust Inc. agreed to buy 1.1 million acres of East Texas timberlands for roughly $1.39 billion, with the timber real estate investment trust's investment to total up to $227.5 million.

* H&R Real Estate Investment Trust agreed to sell the majority of its retail properties in the U.S. for US$633 million, subject to customary closing conditions.

The day ahead

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

In Asia, the Hang Seng fell 1.23% to 31,152.03, while the Nikkei 225 dropped 0.21% to 22,818.02.

In Europe, around midday, the FTSE 100 had climbed 0.28% to 7,732.60, and the Euronext 100 was down 0.04% at 1,070.77.

On the macro front

The retail sales report, the Empire State Manufacturing Survey, the Redbook, the business inventories report, the Housing Market Index and the Treasury International Capital report are due out today.

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