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Bigwigs circle NY's $3B Penn Station redevelopment; NYC office asset may fetch $600M

Commercial real estate

* Some of New York City's biggest developers are eying a $3billion plan to redevelop PennStation in Manhattan, N.Y., Crain'sNew York Business reported.

According to a document provided by the Empire StateDevelopment Corp., industry heavyweights, including , , Brookfield,Related Cos., Silverstein Properties and Tishman Speyer, took part in a site tourof the transit hub in February. The state agency will accept bids until April22, according to the report.

* Acadia RealtyTrust said it priced its public offering of 3.6 million sharesof beneficial interest on a forward basis in connection with a forward saleagreement. The company said gross proceeds are estimated to be $124.9 million,based on the $34.70 per share offer price, before any underwriting compensationand offering expenses.

* ArmadaHoffler Properties Inc., along with the Beatty Development Groupand The Henson Development Co., is set to kick off work on the first at in Baltimore, the Baltimore Sun reported.1405 Point will be a primarily residential building, and theconstruction cost is estimated to be $93 million, the publication noted.

* Jamestown Properties is seeking buyers for a 39-storyoffice tower at 1250 Broadway in Manhattan, and the property is expected tofetch about $600 million, The Real Dealreported,citing marketing materials and sources. The price will equate to more $800 persquare foot.

The class A tower has 721,000 square feet of office space.Jamestown and Murray Hill Properties bought the asset from SL Green Realty Corp. for $310 million in 2008,according to the report.

* Houston-based Hines is in discussions to divest one of thetallest skyscrapers in downtown Dallas to Fortis Property Group, for more than$300 million, the Dallas Morning News'Biz Beat Blog reported,citing real estate brokers. Chase Tower spans 1.3 million square feet and is 55stories tall.

The Dallas BusinessJournal also reportedon the potential sale.

* The Boston Globe looksat New York developer Midwood's plans for a 683-foot tower in Boston's DowntownCrossing that are slated to be presented before the Boston Civic DesignCommission on Tuesday.

The 59-story skyscraper is likely to be "slightly"taller than the MillenniumTower, and become the tallest building in downtown Boston,according to the newspaper. The predominantly residential tower will offer 300rental units, 119 condominiums on the upper floors, and 54 affordable units.

* The recently leaked confidential files from inside asecretive Panamanian law firm, Mossack Fonseca, reveal that people linked towrongdoing abroad are investing in high-end condominium towers on SouthFlorida's waterfront, which is putting home prices beyond the reach of localbuyers, the Miami Herald reported,citing an analysis of the files it has obtained in association with theInternational Consortium of Investigative Journalists.

* Apartment vacancy rates in the U.S. rose 4.5% in the firstquarter from 4.4% in the previous quarter and 4.2% in the year-ago period,Bloomberg News reported,citing Reis Inc. As a result, effective rents witnessed a slow growth of 4.5%from the previous year.

After the bell

* PulteGroupInc. founder Bill Pulte again expressed his disappointment over CEORichard Dugas Jr.'s leadership and the company's "inadequate"performance under his oversight.

Citing Dugas' "lack of performance and repeated baddecision-making," the former PulteGroup chairman and CEO in a letter that thecompany needs new leadership and argued that Dugas' decision to retire at theMay 2017 annual shareholder meeting "falls far short of the short-termleadership change" needed for the company and its shareholders.

* Essex PropertyTrust Inc.'s operating partnership priced its senior unsecurednotes issuance in the aggregate principal amount of $450 million.

The company said that the notes were offered at a price to investorsof 99.386% of par value, with a 3.448% yield to maturity. They will bear a3.375% annual interest rate.


* PulteGroup Inc.'s shares on Monday dropped nearly 7% to$17.21 following the news of Chairman and CEO Richard Dugas Jr.'s theretirement in 2017, The Wall Street Journal reported.

While PulteGroup founder Bill Pulte has urged the board toexpedite the succession plan, the company's board defended Dugas' record andthe company's value-creation strategy, the publication added.


* MGM ResortsInternational and Anschutz Entertainment Group's $375 millionT-Mobile Arena in LasVegas is expected to rake in more than $900 million annually for the localeconomy, despite the lack of an anchor tenant, the Journal reported.The arena is opening on Wednesday.

MGM Resorts is also investing $100 million on adesert-landscape park and two-acre commercial zone around the arena, the Journal added.

* Asian American, a former business partner of , hasreceived a Macau court's approval to proceed with a against the company, Reuters reported.

The former partner is accusing Las Vegas Sands of misusingtrade secrets and breaking the terms of their former partnership agreement.Asian American is demanding "just over" 70% of the casino operator'sprofits from 2004 to 2022. According to Reuters' calculations, Asian Americanis seeking more than $8 billion in damages.

* Wynn ResortsLtd.'s WynnPalace in Macau may miss its June 25 opening deadline due topotential construction delays, Asia Gaming Brief reported,citing a filing on the Hong Kong Stock Exchange. The originalopening date was March 25.

The day ahead

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

In Asia, the Hang Seng rose 1.57% to 20,177.00, and theNikkei 225 fell 2.42% to 15,732.82.

In Europe as of midday, the FTSE 100 had dropped 1.35% to 6,081.33,and the Euronext 100 was down 2.12% to 838.68.

On the macro front

The international trade report, Redbook, PMI services indexand the ISM non-manufacturing index are due out today.

Now featured

Data Dispatch:US REITs swing to NAV premium in Q1: The office sector traded atthe largest discount to NAV at quarter-end, at 13.4%, while the self-storagesector traded at the largest premium to NAV, at 39.4%.

The Daily Dose isupdated as of 7:30 a.m. ET. Some external links may require a subscription.Articles and links are correct as of publication time.