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Thursday, 09 September 2010 15:14 |
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September 9, 2010
By Barbra Murray, Contributing Editor
The famed Hotel Lutetia in Paris has changed hands after five years under Starwood Capital Group’s ownership. The global private equity firm sold the 231-room property to Israeli real estate company Alrov for approximately $171 million.
An Art Deco building developed exactly 100 years ago, Hotel Lutetia sits in the city’s tony Saint-Germain-des-Prés neighborhood. Starwood Capital came into possession of the asset in 2005 when it acquired Groupe Taittinger and Société du Louvre for $3.2 billion. Terms of the deal with Alrov allow Starwood Capital affiliate Groupe Concorde to stay on as manager of the hotel. As for proceeds from the transaction, Starwood Capital will pocket some of the funds for future acquisitions.
But Starwood Capital has far more than just the cash from the Hotel Lutetia sale to play with in today’s hotel market. In April, the firm closed its Starwood Capital Global Hospitality Fund II at $965 million.
While the company is certainly eying new investment opportunities, it is also interested in facilitating additional dispositions “We will continue to take an opportunistic approach toward selling assets when we can achieve the right combination of investor returns and market timing,” Richard Gomel, Managing Director at Starwood Capital Group, noted in a prepared statement. Read more: |
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Thursday, 09 September 2010 15:08 |
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September 9, 2010
By Barbra Murray, Contributing Writer
The federal government, one of the few entities to provide the construction industry with steady work throughout the recession, has taken another step forward in the development of the $800 million Denver VA Medical Center in Aurora, Colorado. The U.S. Department of Veterans Affairs recently selected joint venture Kiewit-Turner to serve as the 1.1 million-square-foot replacement hospital’s contractor.
The new Denver VAMC will occupy 31 acres on the former Fitzsimons Army Medical Center site, also home to the University of Colorado Hospital complex. Kiewit-Turner’s contract calls for the joint venture to commence pre-construction services at a cost of $1.3 million for the tertiary care medical center, as well as the remodeling of an existing 120,000-square-foot structure on the site. A partnership involving H+L Architecture, Skidmore, Owings & Merrill L.L.P. and others is behind the design of the project, which–as is the case with all new government buildings–will meet standards for LEED Silver certification, at minimum.
Development of the hospital is on track to reach completion in 2014.
A great many government agencies are in the midst of construction projects; the VA alone has quite a few on its plate. In June, ground broke on a 1.5 million-square-foot replacement hospital in New Orleans. Earlier this year, the agency awarded contracts for the construction of a 220,000-square-foot clinic in Cape Coral, Florida, and an 84,000-square-foot polytrauma center at the Audie L. Murphy VA Medical Center in San Antonio. These projects represent only a small percentage of the VA’s current development endeavors. Read more: |
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Thursday, 09 September 2010 10:07 |
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September 9, 2010
By Allison Landa, News Editor
Real estate development firm Portman Holdings L.L.C. has a new leader. Ambrish Baisiwala has been promoted to the position of CEO, which according to Portman chairman John Portman will utilize his global experience in the industry.
Portman added that Baisiwala’s background will help Portman continue its growth.
Baisiwala will oversee the firm’s management and profitability along with overseeing overall operations in real estate developments, investments, management and capital raising. He has nearly two decades of experience working on a worldwide scale, with stints in the United States, India, the Middle East, Southeast Asia and Australia. He was previously Portman’s executive vice president of development & capital markets.
As part of Portman’s restructuring, Richard Jones has also been named chief operating officer. With 20 years of hospitality and real estate operations experience, Jones will oversee the firm’s global asset management and property management functions as well as corporate operations in Atlanta, reporting directly to Baisiwala. Previously he served as Portman’s executive vice president of acquisitions & operations.
Portman focuses on development of mixed-use complexes as well as domestic and urban properties, including hotels, office buildings, retail spaces, residences and trade marts. Read more: |
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Thursday, 09 September 2010 08:46 |
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Companies Brace for Powerful Impact of Lease Accounting Changes Read more: |
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Thursday, 09 September 2010 04:58 |
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LIVINGSTON, NJ--CoreNet Global NJ (Corporate Real Estate Executives Network of New Jersey), the New Jersey State Chapter of CoreNet Global, has scheduled the fourth in the 2010 series of CoRE Curriculum educational workshops for Thursday, September 16, 2010, from 8:30 A.M. to 10:00 A. M. The session will be held at Wyndham Worldwide, 22 Sylvan Way, Parsippany, NJ. => Read more! Read more: |
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Thursday, 09 September 2010 04:30 |
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SANTA FE, NM--An alliance of green designers, architects, affordable housing specialists and sustainability advocates is teaming up with Native American communities in the southwest to develop green housing best practices for homes on tribal lands. => Read more! Read more: |
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Thursday, 09 September 2010 04:27 |
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HIGHLAND PARK--Pulte Homes has announced that homes at its newest community, Overlook at Highland Park, are now available. => Read more! Read more: |
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Thursday, 09 September 2010 04:19 |
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NEW YORK, NY--Green Education Services, a global green building education provider, is now offering the new EPA-mandated lead paint certification course for Certified Renovators. => Read more! Read more: |
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Thursday, 09 September 2010 04:14 |
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NEWARK--The Washington, D.C. and New Jersey offices of HFF (Holliday Fenoglio Fowler, L.P.) announced that they have arranged construction financing and joint venture equity for Jefferson at West Goshen, a to-be-built, 230-unit luxury multi-housing community in West Goshen, Pennsylvania. => Read more! Read more: |
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Thursday, 09 September 2010 04:04 |
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NEWARK--Mayor Cory A. Booker, Federal Housing and Urban Development Regional Administrator Adolfo Carrión, Department of Economic and Housing Development Housing and Real Estate Director Michael Meyer and other dignitaries announced a major funding initiative which seeks to reverse the effects of the foreclosure crisis at a press conference at 284 South 11th Street in Newark’s West Ward this morning. => Read more! Read more: |
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Thursday, 09 September 2010 02:40 |
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September 9, 2010
By Allison Landa, News Editor
The retail sector saw a little bit of thawing this week as the Dallas and Atlanta offices of Holliday Fenoglio Fowler L.P. announced that they have closed the sale of Cahaba Village, a grocery-anchored shopping center in Mountain Brook, Alabama. The 115,282-square-foot property is located at 2800-311 Cahaba Village Plaza about 5.5 miles from downtown Birmingham. It houses the only Whole Foods Market in the state of Alabama.
According to HFF senior managing director Barry Brown, who with managing director Ryan Shore and director Jim Hamilton led the investment sales team on behalf of seller Bayer Properties, Cahaba saw positive sales results in 2009 while most of the retail industry was experiencing woes.
Cahaba was bought by ING Clarion Partners on behalf of an institutional investor. The purchase price was not disclosed.
The shopping center was completed in 2007 and is currently 98 percent leased to tenants including FedEx Office, LensCrafters and Charles Schwab. Read more: |
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Thursday, 09 September 2010 02:29 |
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September 9, 2010
By Allison Landa, News Editor
Retail REIT Glimcher Realty Trust is terminating a joint venture and entering into agreements to acquire the land for all three phases of its Scottsdale Quarter retail and office development in Scottsdale, Arizona.
With a total purchase price of $120 million, Glimcher is gaining full control and ownership over all improvements on the property as well as the land itself. Scottsdale Quarter, a $250 million project that opened in 2009, has 600,000 square feet of retail and office space on 28 acres. Phase II is scheduled to debut in fall. Under the acquisition agreement, the third phase may be developed by Glimcher for retail, hotel, office, or residential use. The acquisition will be funded via $85 million in mortgage debt, with the balance funded through the company’s credit facility.
According to Glimcher chairman and CEO Michael Glimcher, gaining full control of the property enhances the firm’s overall investment.
Scottsdale Quarter includes tenants such as BRIO Tuscan Grille, Narcisse, Armani Exchange, the Apple Store and Williams-Sonoma Home. Contemporary restaurant Primebar also recently opened on the property. Read more: |
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Thursday, 09 September 2010 02:12 |
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September 9, 2010
By Allison Landa, News Editor
 Ryan Freedman There’s a new real estate and private equity firm in town. Corigin Holdings has formed in New York and is headed by chairman and CEO Ryan Freedman.
Freedman, the former chairman and CEO of Coalco New York and its affiliates, said he looks forward to leveraging additional growth opportunities as an independent firm. He added that Corigin will maintain a primary focus on the multi-family and luxury residential sectors.
Corigin is the spin-off of Coalco, which is the United States operation of international real estate firm Coalco Development. It has two distinct divisions: Corigin Real Estate Group and Corigin Private Equity Group. Its stated mission is to focus on real estate development and investment as well as private-equity ventures.
Current Corigin projects include the 60-story Villa Magna Residences Towers in downtown Miami, which total 2 million square feet; the redevelopment of the flagship American Can Co. manufacturing facility in Jersey City, New Jersey; and The Element, a luxury condominium development in New York City.
The company owns property in New York, New Jersey and Florida and is a significant provider of university student housing in New York City. Read more: |
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Thursday, 09 September 2010 01:57 |
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September 9, 2010
By Dees Stribling, Contributing Editor
 Courtesy Flickr Creative Commons user jpmueller99 The Federal Reserve’s latest Beige Book, widely expected to reflect a more sluggish U.S. economy, did not disappoint on Wednesday, reporting exactly that. But not a double dip, just less of a recovery.
“Reports from the twelve Federal Reserve Districts suggested continued growth in national economic activity during the reporting period of mid-July through the end of August, but with widespread signs of a deceleration compared with preceding periods,” said the Summary of Commentary on Current Economic Conditions, by Federal Reserve District, to use the publication’s full name. The conventional wisdom is thus confirmed: still growing, but only meekly. Robustness is off the table.
For real estate and construction, things are still lousy, to use a word only between the lines in the report. “Activity in residential real estate markets declined further,” the Beige Book reported. “Most district reports highlighted evidence of very low or declining home sales, which many attributed to a sustained lull following the expiration of the homebuyer tax credit at the end of June… Residential construction activity declined in most areas in response to weak demand.”
Opportunity in Asset Management?
Weakness in real estate doesn’t mean the business is completely without opportunities, however. Just ask Chicago-based Aries Capital, which is taking this moment in time to create a new division of the firm, Aries Asset Management Services. Its function will be to offer distressed property–mostly condo developments–services to qualified lenders and borrowers.
“Institutions are re-valuing their assets lower and don’t have the expertise to work the assets to create value,” Neil Freeman, chairman and CEO of Aries Capital, told CPE on Wednesday. “As a result, this is the best time in several decades to be in asset management business.”
Aries Capital has generally specialized in mezzanine loans on commercial real estate, not distressed properties. But its recent experience with turning around a North Side condo development on behalf of a lender that had taken possession of the unfinished property persuaded the company that asset management has its rewards in the current market.
Owners of Pittsburgh’s Largest Hotel File for Chapter 11
As an industry, it’s safe to say that hotels aren’t out of the recessionary woods just yet. Case in point: on Wednesday, the owners of the former Hilton Pittsburgh, Shubh Hotels Pittsburgh L.L.C., filed for Chapter 11 bankruptcy restructuring. It’s a strategic maneuver that prevents, for the time being, lender BlackRock Financial Management Inc. from foreclosing on the 700-room property, which is Pittsburgh’s largest.
The move came shortly after Hilton Hotels & Resorts announced that Shubh had lost its franchise license; among other creditors, the owners owe Hilton $4.2 million. So the hotel can’t be called a Hilton any more (the “Shubh Pittsburgh” probably isn’t under consideration as a replacement name). The hotel is, however, open for business, and the owners say that won’t change.
Wall Street had another up day on Wednesday, though a fairly mild one. The Dow Jones Industrial Average gained 46.32 points, or 0.45 percent, while the S&P 500 was up 0.64 percent and the Nasdaq advanced 0.9 percent. Read more: |
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Thursday, 09 September 2010 00:05 |
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The JBG Cos. sold the 228-room Hampton Inn in Washington, DC’s East End to Hersha Hospitality Trust for $73 million or $320,000 per room.
The five-year-old, 13-story, 161,193-square-foot hospitality property is on 1.6 acres on the corner of Sixth... Read more: |
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Wednesday, 08 September 2010 21:15 |
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It appears that commercial real estate adversity at U.S. banks has reached the high-water mark and is abating. According to the Federal Deposit Insurance Corp. (FDIC), second quarter numbers show 90-plus day delinquencies leveling and eventually set to... Read more: |
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Wednesday, 08 September 2010 21:14 |
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Companies and funds reported raising $8.55 billion in August for real estate-related acquisitions or debt repayment -- more than double the amount raised in July. That brings the total real estate-related funds raised through August to $63.9 billion from... Read more: |
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Wednesday, 08 September 2010 20:00 |
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Edwin Stern, the Appellate Division's ranking judge, has been named to fill Justice John Wallace Jr.'s vacant Supreme Court seat during the political standoff over his replacement. Read more: |
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Wednesday, 08 September 2010 20:00 |
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New Jersey's spousal testimonial privilege prevents a man's wife from testifying against him in a criminal trial, although she was not his wife at the time of the charged crime and allegedly tampered with the evidence against him, a state appeals court says. Read more: |
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Wednesday, 08 September 2010 20:00 |
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A state appeals court overturns a conviction for attempted murder of a policeman, in part because the prosecutor's persistent denigration of defense counsel could have swayed jurors. Read more: |
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