Mortgage Observer

HFF Secures $175M Refi from TIAA-CREF

Lion Industrial Trust Property, Flower Mound, TX.

A $175 million fixed rate loan was secured by HFF on behalf of Lion Industrial Trust, a fund managed by Clarion PartnersMortgage Observer has learned. The loan term is 10 years, according to HFF Senior Managing Director John Rose, who led the team representing the borrower.

The fund will use the loan, provided by retirement fund TIAA-CREF, to refinance a 4.99 million-square-foot industrial property portfolio, which is just over 94 percent leased, the statement said.  Read More

Lease Beat

Navigant Moving to TIAA-CREF’s 685 Third Avenue

685 Third Avenue. (CoStar)

Global professional services firm Navigant has signed a 10-year, 72,060-square-foot lease at TIAA-CREF’s 685 Third Avenue.

The tenant currently occupies 52,000 square feet at 90 Park Avenue on a sublease deal, according to The New York Post, which first reported the lease. Navigant also occupies a single floor at 119 West 40th Street, which the company picked up with its acquisition of Easton Associates in 2012. Read More

Lease Beat

Three Tenants Snap Up Full-Floor Leases at 475 Fifth Avenue [Updated]

475 Fifth Avenue.

Three tenants have nabbed full floors totaling 28,190 square feet at 475 Fifth Avenue between 40th and 41st Streets.

Torchlight Investors, an investment management firm has signed a deal for 16,029 square feet on the entire 10th floor of the building. Square 1 Bank signed for 7,842 square feet, spanning the entire 18th floor, and Daikin, a global air conditioning and refrigeration provider, has signed for 4,319 square feet over the entire 21st floor. All of the lease are for 10 years, according to JLL, which represented the building in the deals. Read More

Assignments

TIAA-CREF Taps JLL to Lease, Manage 685 Third Ave.

685 Third Avenue. (CoStar)

Asset manager TIAA-CREF has hired JLL as the exclusive office leasing agent and property manager at 685 Third Avenue. The real estate services firm replaces CBRE as the building’s leasing agent.

“The market is moving in the landlord’s favor and they want to accelerate leasing velocity,” Matt Astrachan, a vice chairman at JLL and a member of the leasing team, told Commercial Observer. “It’s a great asset that just needed to be better understood by the market and so far we’ve been successful.” Read More

Mortgage Observer

MBA Report Shows Increased Lending Across All Property Types in 2013

Money_Cash

Commercial mortgage origination exceeded expectations in 2013, with $358 billion in loans on commercial and multifamily properties closed, according to the annual origination summation report from the Mortgage Bankers Association.

The report, unveiled earlier this week, showed banks invested $100.5 billion last year–28 percent of the annual volume–while CMBS, CDO and ABS issuers invested $79.8 million, which accounted for 22 percent of the overall volume amount. Life insurance companies and pension funds did $60.2 billion in deals—17 percent of the year’s total. Read More

Return on Investment

Investments in Real Estate Return 11.8 Percent for Norway’s Wealth Fund

Times Square Tower

Real estate investments returned 11.8 percent for Norway’s $840 billion sovereign wealth fund in 2013, the fund’s manager announced today.

In the fund’s second-best year ever, the Government Pension Fund Global returned 15.9 percent, or $115 billion, overall, according to the Norges Bank Investment Management. The fund’s equity investments returned 26.3 percent, while fixed-income investments returned 0.1 percent. Read More

Sales Beat

Norway’s Wealth Fund Makes More U.S. Property Deals

425 Market Street

Norges Bank Investment Management, the manager of Norway’s sovereign wealth fund, is maintaining a steady flow of U.S. property deals in early 2014. Last week, NBIM announced it would invest two additional U.S. office properties as part of its joint venture with MetLife

The two properties, in Washington D.C. at 555 West 12th Street and San Francisco at 425 Market Street, are the second and third investments made by the joint venture since it formed in early December. The first deal was an investment in One Financial Center in Boston.

Read More

Sales Beat

Norway’s Wealth Fund and MetLife Form JV

One Financial Center, Boston

Norges Bank Investment Management, the manager of Norway’s $800 billion sovereign wealth fund, and MetLife have formed a joint venture to invest in Class A office properties in key U.S. office markets. It is the third such venture formed by NBIM in the past year as the wealth fund looks to boost its real property holdings.

The joint venture’s initial investment is in One Financial Center in Boston. NBIM has acquired a 47.5 percent share of the asset from Beacon Capital. Concurrently, MetLife increased its ownership share in the property to 52.5 percent.

Read More

Venture Capital

Real Estate Startup Gets $7M in Venture Funding

VTS Screenshot (Courtesy: View the Space)

View the Space, the real estate startup that collects leasing data and creates virtual space tours, has secured a $7 million round of venture funding.

The funding, provided primarily by Trinity Ventures of Menlo Park, Calif., will allow View the Space to expand into new markets and build the next generation of the service, according to a report by The Wall Street Journal.

“We believe that real estate has been, like some industries, underpenetrated by information technology,” said Noel Fenton, a general partner at Trinity, in an interview with the Journal. “There is an opportunity there to help owners and brokers execute their job more efficiently through online facilities.”

Read More

Lease Beat

Priceline Negotiates Deal at 470 Park Avenue South

470 Park Avenue South.

Priceline.com has signed a 10-year lease for the entire 9,936-square-foot 10th floor at TIAA-CREF’s 470 Park Avenue South, The Commercial Observer has learned.

The tenant will pay rent in the low-$50s per square foot, according to CompStak. Just last year, leases in the building were signed in the building with rents in the high-$30s per square foot, CompStak’s data shows. 

Read More

2013 Owners Magazine

Norway Takes Manhattan

NyObserver-Vikings-FINAL

Early last month, Norway’s sovereign wealth fund announced it would invest $684 million in a 45 percent stake of Boston Properties’s Times Square Tower.

No small achievement, the investment is the Norwegian Government Pension Fund’s second real estate play in the United States in a span of just eight months as it seeks to rev up its portfolio to as much as 5 percent of total assets under management.

The uptick in activity, prompted in part by the fund’s desire to reduce its exposure to the bond market, is a welcome development for real estate’s largest institutional players now seeking to realize gains on investments made during the past decade and to deploy capital in other sectors of the market. Read More

Lease Beat

ICR Signs On at 685 Third Avenue

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Integrated Corporate Relations, a financial communications consultancy, will relocate to 685 Third Avenue, The Commercial Observer has learned. The company has signed a 10-year lease for the entire 22,372-square-foot second floor at the East Midtown property.

Asking rent for the second floor space was $55 per square foot but ICR will pay starting rent of approximately $50 per square foot, according to data from CompStak. A listing on Agorafy indicates asking rent for the 22nd floor at the TIAA-CREF-owned building is $68 per square foot. Read More

Sales Beat

Norway’s Wealth Fund to Acquire Stake in Times Square Tower for $684M

Times Square Tower

Norway’s sovereign wealth fund, the Norwegian Government Pension Fund Global, has agreed to acquire a 45 percent interest in Times Square Tower from Boston Properties for $684 million in cash.

The acquisition agreement, signed on September 6, values the entire building at $1.52 billion. Following the close of the sale, Boston Properties will retain management and leasing responsibilities. Read More

Lease Beat

Crain Communications Moving Next Door on Third Avenue

685-third-ave_opt

Business media company Crain Communications, owner a wealth of trade publications and consumer brand names, announced on Monday that it is moving its headquarters to 685 Third Avenue after signing a 58,527-square-foot lease.

One of the firm’s publications, Crain’s New York Business, reported that the company plans to relocate from its current offices – next Read More