Sunday Summary: Real Estate Really Lets Itself Go
A week after Thanksgiving, we all feel a little bigger. The waistline expands, and, unless it is nipped in the bud, it stays that way and our appetite simply grows on the next feeding.
We don’t know what was in that Thanksgiving turkey, but certain property owners have apparently given up on ever slimming down. (We’re talking about deal size!)
Not to be outdone, Blackstone (BX) plunked down what for everyone else in the world would be a pretty hefty chunk of change ($2.8 billion) for 124 logistics properties spanning the U.S. and Europe in a purchase from Cabot Properties.
But even at a slightly lower level the appetite for real estate has reached tapeworm dimensions.
Maybe it was Art Basel in the air, but it cannot be denied that Miami had a hell of an active week.
Hospitality giant Major Food Group is apparently getting into the development business. They’re teaming up with JDS Development to build a new 259-unit condominium at 888 Brickell Avenue.
Jay Shidler acquired The Sealofts at Boynton Village, a Boynton Beach rental located at 600 Sea Lofts Drive, for $153 million.
And Key International and Wexford Real Estate Investors slammed down $54 million to purchase the Fort Lauderdale Marriott Pompano Beach Resort & Spa, a 219-room, 4.2-acre oceanfront hotel at 1400 North Ocean Boulevard.
There were serious financings and refinancings too. Lennar Multifamily Communities scored $130 million in financing for Vesada Apartments in Doral. Gables Residential, the Atlanta-based company, got $115 million from Wells Fargo (WFC) for the development of its planned 295-unit oceanfront property at 333 North New River Drive East in Fort Lauderdale. And Bank OZK (OZK) provided a $121.5 million construction loan to Two Roads Development and Alpha Blue Ventures for their 24-story luxury condo Forté at 1309 South Flagler Drive, in West Palm Beach.
And one shouldn’t forget about leases! Echelon Fitness announced a new 10,035-square-foot studio at The Boulevard, the Goldman Sachs-backed luxury rental at 5700 Biscayne Boulevard (Hey, owners! That’s a way to reduce that appetite!) Eight leases were signed at Centrepark, Colonnade Properties’ West Palm Beach office complex, totaling 57,072 square feet. And the coup de grace (at least as far as square footage is concerned): King Ocean Services announced a 157,528-square-foot relocation and expansion to Prologis (PLD) Beacon Lakes industrial park at 13155 NW 19th Lane in the Airport West submarket.
Ooh la LA!
Beyond the billion-dollar CBS deal, there were big things happening in L.A. too.
Onni Group picked up Marina Shores, a 6.17-acre shopping center in Long Beach, for $67.9 million, which they’re planning on knocking down and turning into multifamily.
Pacshore Partners plunked down $90.5 million for the 152,834-square-foot, 97-percent leased 2600 West Olive Avenue from Granite Properties.
What about NYC?
In a hospitality industry that is still reeling, we were pleased to see that Jeff Sutton’s Wharton Properties nailed a 15-year, roughly $300 million lease with Sonder for his planned 363-room hotel at 25 West 34th Street.
Gotham also had its share of leases: Kohn Pedersen Fox expanding by 38,000 feet at Tishman Speyer’s 11 West 42nd Street; Shen Milsom & Wilke, the consulting firm, taking a full 12,526-square-foot floor at 275 Madison Avenue; private equity firm Incline Equity Partners relocating from 100 Park Avenue to 505 Fifth Avenue; and a whole mess of leases at Fisher Bros.’ 1345 Avenue of the Americas.
But the thing that excites us most would have to be something just outside the city borders: a new Toys “R” Us landing at the American Dream Mall! (Thank goodness we won’t have to rely on Amazon this Christmas. Well, not fully rely on them, anyway.)
No, we’re not going to workout, thank you very much.
We’re going to stay in and have a nice, long read. About, say, the lawsuits on Billionaires’ Row, and how sales are going for luxury Manhattan condos in general.
Or one can get the inside look at what’s happening at Brookfield’s 660 Fifth Avenue.
Finally, one can ponder why some tenants are buying rather than renting their real estate.
See you next week!