Commercial real estate
* Agellan Commercial REIT closed the roughly C$256.3 million sale of Parkway Place in Toronto to an unidentified third-party buyer. Parkway Place features an office property that spans roughly 824,000 square feet, about 42,000 square feet of retail space and a parking garage on Consumers Road.
Proceeds from the sale will be used to repay outstanding debt of the real estate investment trust, acquire U.S. industrial assets, fund the cash portion of a special distribution to unit holders and for general business and working-capital purposes.
* Moinian Group, Chetrit Group and Minskoff Equities received $375 million in refinancing for the 500-512 Seventh Ave. office complex in Manhattan, N.Y.'s Garment District, The Real Deal reported. The loan, which replaces financing from 2006, was provided by American International Group Inc. and arranged by Iron Hound Management, the report noted, citing Debtwire.
The report noted that according to property records, the ground lease for the complex, along with 228 W. 38th St., was acquired by the three partners for $140 million in 1999. Tenants include WeWork Cos., which leased 250,000 square feet in December 2017.
* Arker Cos. landed $137 million in financing for part of its affordable housing complex at the Fountains multibuilding development in East New York, The Real Deal reported, citing documents filed with the city's Department of Finance. The financing package includes tax-exempt bonds issued by the New York State Housing Finance Agency, and Bank of America is providing a line of credit for the mortgages.
A 422-unit, nine-story apartment building is planned at 894 Fountain Ave., the news outlet said, adding that the overall project is expected to have more than 1,500 affordable apartments and commercial space.
* Billionaire Eyal Ofer's Global Holdings Group made a $100 million preferred equity investment in the 25 Kent project in Brooklyn, N.Y.'s Williamsburg neighborhood that is being developed by Rubenstein Partners and Heritage Equity Partners, Commercial Observer reported. The eight-story, 500,000-square-foot commercial and industrial property is expected to be completed by the end of 2018.
* CBRE Group Inc.'s asset management arm won the bid to become the manager of the Bloc mixed-use development in downtown Los Angeles, beating JLL and Lincoln Property Co., The Real Deal reported. National Real Estate Advisors is the majority owner of the asset following Ratkovich Co.'s stake sale in April.
National Real Estate, Ratkovich and Blue Vista Management had acquired the property for $241 million in 2013 and developed it into a 1.8 million-square-foot retail and commercial complex.
* Artisan Realty Advisors acquired the 40,000-square-foot Space 15 Twenty complex in Los Angeles' Hollywood neighborhood for $61 million, The Real Deal reported. The outdoor retail complex was sold by Cahuenga Lofts and Ivar Group. The sellers had paid $13.3 million for the 1520 N. Cahuenga Blvd. property in 2006, the report noted, citing property records.
* Campus Advantage Inc. made $94.8 million of student housing acquisitions in Seattle's University District over the past week, buying the two-building Identity project and the Liv Seattle project from limited liability companies related to CA Student Living and Principal Financial Group Inc., the Puget Sound Business Journal reported. The report noted that the district was recently upzoned to allow taller buildings, which is attracting interest to the area with a number of projects being planned.
The acquired properties total roughly 400 units.
* TPMC Realty Corp. plans to sell the Park Towers office complex in Houston, along with the Edwards Greenway Grand Palace 24 movie theater, in a foreclosure auction, unless it can meet new financing terms, the Houston Business Journal reported, citing CoStar. The company had carried out a $16 million renovation of the two-building complex that completed in February 2017. Each of the buildings totals roughly 270,000 square feet.
The Park Towers North at 1233 West Loop South is 61.5% vacant and the Park Towers South building at 1333 West Loop South is 64.2% vacant. Park Towers North was appraised at $48.2 million as of Jan. 1, while Park Towers South was appraised at $48 million, the report noted, citing the Harris County Appraisal District.
The Edwards Greenway property includes a two-story, 120,000-square-foot theater and 31,693 square feet of retail and restaurant space. The auction is slated for June 10 at Cleary Gottlieb Steen & Hamilton's offices in One Liberty Plaza in New York City.
* Sephora is in talks to lease all 228,000 square feet of office space in the renovated 2150 Webster St. building in Oakland, Calif., the San Francisco Business Times reported, citing three unnamed sources. The report added, citing CoStar, that Sephora occupies 167,153 square feet at its U.S. headquarters at 525 Market St. in San Francisco, where its lease expires in May 2021.
The 2150 Webster St. property is owned by Lane Partners and Walton Street Capital.
According to the report, a number of San Francisco companies have been moving to Oakland due to lower rents. Citing CBRE, the publication added that the downtown Oakland office market had the lowest vacancy rate in the country in the first quarter at 5.3%.
* TruAmerica Multifamily and funds managed by Oaktree Capital Management LP acquired the 424-unit Galleria Palms apartment complex at 1600 W. La Jolla Drive in Tempe, Ariz., for $75.1 million from an institutional investor, which sold the property on behalf of a separate fund client, the Phoenix Business Journal reported.
* Marquette Cos. obtained a $56.5 million acquisition loan for the 579-unit Willow Crossing rental complex in Elk Grove Village, Ill., which it had acquired for $80 million in partnership with JPMorgan Investment Management in April, The Real Deal reported. The five-year loan for the 1030 Charlela Lane property was provided by Wells Fargo.
* Fitch Ratings expects U.S. equity REIT property-level fundamentals to remain solid across most asset classes in 2018 but expects results to decelerate from 2017, according to the rating agency's U.S. Equity REITs Handbook. Fitch Ratings Managing Director Steven Marks noted that industrial REITs are best positioned due to strong underlying demand and a growth in e-commerce.
After the bell
* The U.S. commercial real estate market saw slight growth in cross-border investment in the first quarter, with Canada leading the pack, followed by China, Singapore, Germany and the Netherlands, according to Real Capital Analytics' latest "U.S. Cross-Border Investment Compendium" report.
Housing
* Fischer Homes Inc. plans to develop a 535-unit residential project with 415 single-family homes and 120 row houses on roughly 210 acres near Grove City, Ohio, the Columbus Business First reported, citing plans submitted to the city. The development is planned through Fischer's Grand Communities Ltd. subsidiary.
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng increased 0.08% to 30,492.91, while the Nikkei 225 decreased 0.14% to 22,171.35.
In Europe, around midday, the FTSE 100 was up 0.71% to 7,732.26, and the Euronext 100 was up 1.14% to 1,060.98.
On the macro front
The motor vehicles sales report, the employment situation report, the PMI Manufacturing Index, the ISM Manufacturing Index, the construction spending report and the Baker-Hughes Rig Count report are due out today.
Now featured on S&P Global Market Intelligence
Data Dispatch: US REITs underperforming broader market in current rising-rate environment: REITs outperformed the S&P 500 in four of the six previous rising interest rate periods since 2000 but have failed to do so in the current one, according to an analysis by S&P Global Market Intelligence.
Data Dispatch: May state of the US housing market: Chart Watch: Data released in May showed monthly decreases in new- and existing-home sales in April, while single-unit housing starts remained mostly flat.
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