January 24, 2017

Office Lease Up (January 23) 21st Century Fox, News Corp to Maintain Corporate HQs in 1.2M SF at Rockefeller Center

Even as two fashion brands have expanded beyond New York City, two media companies have signed separate long-term lease renewals to remain in more than 1.2 million square feet at Rockefeller Center, located at 1211 Avenue of the Americas in Midtown Manhattan.

Ivanhoé Cambridge and Callahan Capital Properties have retained 21st Century Fox in a total of 777,000 square feet in the office tower, including a 649,000-square-foot extension effective December 2020 and a 128,000-square-foot expansion into three upper floors effective immediately to accommodate the consolidation of other Midtown employees. The terms of its lease extend its presence in the building through 2025.

News Corp signed a 444,000-square-foot lease transaction that becomes effective December 2020. News Corp will now remain in the building through 2027, with both tenants retaining extension options after the master term expires.

Josh Kuriloff, Mitch Arkin and Ethan Silverstein of Cushman Wakefield represented ownership in the transactions. Mary Ann Tighe, Tim Dempsey, Ken Rapp and Christopher Mansfield of CBRE represented both 21st Century Fox and News Corp. By Justin Sumner


FCC Signs 473,000-SF Lease at Sentinel Square Development in NoMa for Site of New HQ

After resolving a dispute with the agency’s current landlord over its selection for a new headquarters for the Federal Communications Commission (FCC), the U.S. General Services Administration has officially awarded the lease to Trammell Crow Co.’s (TCC) Sentinel Square development in NoMa.

The FCC finalized a long-term lease for nearly 473,000 square feet at the proposed Sentinel Square III development in Northeast Washington, D.C. where the independent government agency will establish its head offices, relocating from its current location at The Portals II building at 445 12th St. SW.

Henry Chapman, Sara Dunstan, Richard Downey and Sarah Maxwell of CBRE brokered the lease on behalf of the FCC. By Holden Brayboy


New York Life Leases 147,000 SF at Westchester One

New York Life, the nation’s largest mutual life insurance company, signed a 10-year lease for 146,870 square feet in the Westchester One office building at 44 S. Broadway in White Plains, NY.

The 21-story, 845,791-square-foot, 4-Star office tower was developed in 1976 by Bianco Pepe, Inc. on 1.5 acres in the White Plains CBD submarket of Westchester County. Other tenants include New York State Department of Law and Avon Products.

Matthew Lisk, Michael McCarthy, Stephen Baker and Josh Kuriloff of Cushman Wakefield represented the landlord, Beacon Capital Partners. Cushman Wakefield also represented New York Life. By Matthew Hamburger


NTT DATA Picks One Legacy West for New North American HQ

NTT DATA International, a top 10 global business and IT services provider headquartered in Tokyo, has signed a long-term lease to establish its North American headquarters at Gaedeke Group’s One Legacy West project slated to deliver later this month at 7950 Legacy Dr. in Plano, TX.

Currently located down the street at 5601 Granite Pky., NTT DATA will relocate its North American corporate office to five floors totaling 126,715 square feet at the 307,824-square-foot, 14-story One Legacy West development.

Stevie Jarvie and Damian Rivera, SIOR of E Smith Realty Partners brokered the lease on behalf of NTT Data and negotiated incentives from the state of Texas and the city of Plano. Belinda Dabliz provided in-house representation on behalf of Gaedeke Group. By Chaka Baker


Radial Renews 103,000-SF Office Lease in King of Prussia

Radial, Inc., an e-commerce company, signed a 15-year lease renewal for the 103,334-square-foot office building at 935 1st Ave. in King of Prussia, PA.

The four-story office building was built in 2001 on nine-tenths of an acre within the First Avenue Corporate Center.

Gladstone Commercial Corporation last month closed on its $26 million acquisition of the asset, with plans to complete a $4 million renovation of the building without disrupting Radial’s continued sole occupancy of the building.

The new triple-net lease was reportedly negotiated in-house. By Wesley House


Goodwin Procter Leases 100,000 SF at Redwood City Office Development

Boston-based law firm Goodwin Procter has signed a 100,000-square-foot lease to anchor Dostart Development Co.’s 133,100-square-foot office project currently in development at 601 Marshall St. in Redwood City, CA.

The firm will take the top four floors of the eight-story building, accounting for 75% of the property, with a move-in date tentatively set for the first quarter of 2018.

Steve Barker and Michael McCandless of Savills Studley represented Goodwin Procter in the lease negotiations, while Mike Connor and Ben Paul of Cushman Wakefield represented Dostart Development Co. By Eric Kies


Paul Hastings LLP Signs 97,000-SF Lease at Trophy Office Development on M St.

Global law firm Paul Hastings LLP has signed a 16-year prelease for 97,000 square feet at 2050 M St. NW, Tishman Speyer’s 364,000-square-foot, 12-story trophy office development scheduled to break ground next month in downtown Washington, DC.

Located between Washington and Dupont Circles in the city’s central business district, the new development will be constructed on an assemblage that includes the existing site of the Washington DC bureau for CBS. Construction is slated to wrap up in May 2020

Andrew Eichberg, Scott Franklin and Amy Brendler represented the landlord in-house. By Bill Johnston


Newport Office Center Nets Two Long Term Leases as NYC Fashion Brands Look Across the Hudson for More Office Space

Two long-term office leases were signed recently at the eight-building, 7 million-square-foot Newport Office Center located in Jersey City, NJ. The asset is developer LeFrak Organization’s largest waterfront community in the country.

In the larger transaction, fashion stalwart Tory Burch LLC leased two full floors comprising nearly 93,000 square feet of office space at Newport Office Center 3 at 499 Washington Blvd. The fashion company expects to relocate several of its Manhattan business units, including its finance, import/export and wholesale customer service divisions into the 14-story, 690,000-square-foot office building by the fourth quarter of this year.

Jeffrey Peck, Dan Horowitz and Matt Barlow of Savills Studley represented Tory Burch in the 15-year lease. Charles Borrok and Dan Johnsen of Cushman Wakefield, together with Marylou Berk, LeFrak’s senior vice president and head of commercial real estate, represented the landlord.

Cosmetics giant L’Oréal USA, which acquired IT Cosmetics last summer, leased 60,000 square feet comprising two full floors at Newport Office Center 1 at 111 Town Square Place for the prominent skincare products firm.
Ray Kawas and Marylou Berk of LeFrak represented the landlord in the 10-year office lease. By Justin Sumner


Netflix Leases New CUE Office Building

Netflix signed a lease for the 91,953-square-foot office building currently under construction at Sunset Bronson Studios. The five-story building called CUE is scheduled to deliver at 5808 W. Sunset Blvd. in Los Angeles this summer.

The company previously leased ICON, a new 323,273-square-foot office tower also part of Sunset Bronson Studios and will move in later this month. In addition, Netflix signed a deal for 99,250 square feet at this entertainment production complex back in September for existing stages and production offices.

Jeff Black and Clay Hammerstein of CBRE in Los Angeles represented Netflix. Blake Mirkin, Robert Waller, Patrick Amos and Daniel Rainer also with CBRE represented the landlord, Hudson Pacific Properties Inc. By Kate Retzinger


MAA Leases 84,700 SF in Germantown

MAA, a real estate investment trust that primarily focuses on the acquisition, development and management of multifamily homes signed a lease deal for about 84,716 square feet in the proposed office building at 6797 Poplar Ave in Germantown, TN.

The proposed five-story building is supposed to total more than 150,000 square feet. Thoda and Associates Pllc is the architect working on the project.

Patricia Bullock and Jennifer Stewart of Gill Properties Inc. were the landlord representatives. By Sam Katz


Serco Inks 83,308-SF Deal at Monument III at Worldgate

Serco Inc., a British outsourcing company that provides professional, technology, and management services to local, state and the federal government, has signed on for three full floors at Monument III at Worldgate in Herndon, VA.

The company will occupy 83,308 square feet of office space across the fifth through seventh floors at the 193,138-square-foot, seven-story office building located at 12930 Worldgate Dr. The estimated move-in date is currently December 2017.

Tom Cresce of JLL represented the owner, Boston-based TA Realty, while Steve Ranck, also of JLL, represented the tenant. By Walt Brown


Indigo Books Music Reaches Deal to Shift HQ to Allied/RioCan’s King Portland Centre Project in Downtown Toronto

Indigo Books Music (TSE: IDG) has signed a lease to relocate its headquarters to 78,810 square feet at Allied Properties REIT (TSX: AP.UN) and RioCan REIT’s (REI-UN.TO) King Portland Centre development at 602-620 King Street West in downtown Toronto.

Canada’s largest book, gift and specialty toy retailer, Indigo will relocate its longtime headquarters from nearby 468 King Street West to a portion of the second floor and the entire third through fifth floors at King Portland Centre.

At full build-out, the project will consist of 255,565 square feet of office space, 13,035 square of retail space and approximately 116 apartments fronting Adelaide West. It will also encompass a restored and fully leased heritage building, 602-606 King West, and an adjoining property that will be razed to make way for the new project.

With Indigo’s186-month lease in place, Allied and RioCan have now successfully leased 75% of the office component. By Aneeq Siddiqui


MT Bank to Relocate Regional HQ to 3 City Center in Downtown Rochester

MT Bank (NYSE: MTB) has signed a lease to relocate its Rochester regional headquarters to 60,000 square feet at 3 City Center in downtown Rochester, NY, according to a press release issued by the company.

The Buffalo, NY-based bank holding company will take occupancy in March in the 226,000-square-foot, six-story building located less than one mile from MT Bank’s current headquarters at the 225 East Ave.

MT Bank currently employs more than 215 professionals at its regional headquarters with plans to hire upwards of an additional 10 people to fill roles in various departments. By Bryce Meyers


Whole Foods Corporate Shelves Cambridge HQ for New 50,000-SF Space in Marlborough Hills

Whole Foods (NYSE: WFM) has agreed to a deal that will see the American supermarket chain relocate its New England corporate headquarters to 50,000 square feet within Marlborough Hills in Marlborough, MA.

Currently based in Cambridge, MA, Whole Foods will shift its regional offices to 200 Forest St., a 527,582-square-foot, three-story office building anchored by GE Healthcare and Athena Diagnostics.

Bob McGuire and Andy Majewski of CBRE/New England, alongside Scott Black of The Dartmouth Co., represented Whole Foods in negotiations, while CBRE/NE’s Rob Walles and Alison Powers represented Atlantic Management. By Lauren Cawley


AlphaSights Takes 3 Floors at 350 Madison

London-based AlphaSights, a professional services firm, signed a six-year lease for 46,142 square feet in the office building at 350 Madison Ave. in New York, NY.

The 25-story, 4-Star office building totals 369,913 square feet and was developed by Borden Company in 1924. RFR Realty owns and manages the property.

Gus Field, Jon Herman, Robert Lowe, Brooks Hauf, Gary Ceder and William Barrett of Cushman Wakefield represented AlphaSights. Daniel Turkewitz, Mitchell Konsker, Alexander Chudnoff and Diana Biasotti with JLL represented the landlord. By Nick Smith


Crédit Industriel et Commercial Renews 45,000-SF Midtown Lease

Crédit Industriel et Commercial (CIC), a financial services firm and affiliate of Crédit Imutuel of France, has renewed its lease for 44,800 square feet at 520 Madison Ave. in New York City.

The group will continue to occupy the entire 36th and 37th floors of the 43-story, 1.05 million-square-foot, 4-Star office tower. Built in 1982, the building occupies almost a full acre in Midtown Manhattan’s Plaza District submarket, between 53rd and 54th Streets.

Nick Howell, Sunny Choi, Ryan Kelleher and Stefanie Tannenbaum of Tishman Speyer represented the landlord in-house. The tenant was represented in the renewal by CBRE. By Kelly Faulk


Verizon Renews 42,000-SF Lease at Spear St. Tower

Verizon Wireless will maintain an “Innovation Center” in San Francisco’s south financial district after agreeing to a five-year renewal for its 42,033-square-foot space at 201 Spear St.

201 Spear St. is a 246,563-square-foot, 18-story office building completed in 1985 three blocks from I-80/Bay Bridge and four blocks from the BART-Embarcadero station.

Matt Hargrove and Mike Shellow of CBRE’s account team, along with local CBRE market experts Darin Bosch and Luke Ogelsby, represented Verizon in the renewal. Sam Wasserstein and Zach Siegel of Cushman Wakefield handled the deal for building owner KBS REIT III, which acquired the asset in 2013 for $121 million. By Anthony Edelstein


Abrams Publishing Leases 42,000 SF in Lower Manhattan

Abrams Publishing, which prints a variety of illustrated books, cookbooks, craft books, children’s books and gift and paper products, leased 41,982 square feet at 195 Broadway in New York City.

The publishing company signed a 15-year lease to occupy the entire ninth floor of the tower later this year when it relocates from its current space at 115 W. 18th St. in Chelsea. The 29-story, 1.05 million-square-foot, 4-Star office tower was originally built in 1913 on nine-tenths of an acre.

Mark Mandell and Dan D’Agnes with Cushman Wakefield represented the landlord. Andrew Wiener and David Young with LL Holding Company LLC represented the landlord in-house. By Kelly Faulk


GSA Leases 39,000 SF at Penn Center

The GSA signed a four-year lease for 38,644 square feet in the office building at 1601 Market St. in Philadelphia, PA.

The 36-story building totals 685,852 square feet in Penn Center. The building was constructed in 1968 and most recently renovated in 1988. The building is located in the Market Street West submarket of Philadelphia. GSA leased the entire 11th and 12th floors there.

Tom Weitzel and Mitchell Marcus of JLL represented the landlord, APF Properties LLC. By Kristina Gardner


Burns McDonnell Renews, Expands at 200 W. Adams

Burns McDonnell, an international engineering, architecture, and consulting firm, has renewed its 16th floor office space and expanded into additional space on the 26th floor for a total of 36,409 square feet at 200 W. Adams St. in Chicago.

Built in 1985, the 30-story building totals 683,129 square feet in the city’s West Loop. It last sold in 2015 to Gerding Edlen, according to CoStar information.

Jack McKinney and Matthew Lerner of Cushman Wakefield represented the landlord in negotiations. By Alexander Fairlie


Hearst Connecticut Media Group Leases 30,000 SF in Norwalk

Hearst Connecticut Media Group, which owns several newspapers nationally, signed a lease for 30,251 square feet at 301 Merritt 7 in Norwalk, CT.

The seven-story building totals 205,000 square feet in the Merritt 7 Corporate Park. Albert D. Phelps, Inc. developed the property in 1985, and renovations were completed there in 2013.

Thomas Pajolek, Robert Caruso, Steven Greenbush and Ned Burns of CBRE represented the landlord along with JoAnn McGrath at Marcus Partners CT Mgmt LLC. Thomas O’Leary and William Montague with Cushman Wakefield represented the tenant. By Dixon Ferrell


Miller Thomson Latest to Sign Deal at KPMG Tower in Vaughan

Miller Thomson is moving to the recently completed KPMG Tower after closing on a 10-year deal for 22,000 square feet of office space within the Vaughan Metropolitan Centre (VMC) building in Vaughan, Ontario.

One of the largest national full-service law firms in Canada, Miller Thomson will occupy a full floor in the 15-story, 365,000-square-foot, Class A high-rise completed last March at the corner of Apple Mill Rd. and Millway Ave.

KPMG Tower is part of Smart Real Estate Investment Trust (TSX:SRU.UN) and Mitchell Goldhar’s SmartCentres Place, a 100-acre, 17 million square foot master planned development within the VMC that currently includes the KPMG Tower and will soon incorporate the 220,000-square-foot PWC tower.

Ken Karulas, Michael Hagerty, Eric Shaw and Garret Noiles from Cushman Wakefield represented the landlord, Smart Real Estate Investment Trust (TSX:SRU.UN) in this transaction. By Nadia Mohamed


Russell Reynolds Associates Leases 15,000 SF at 609 Main at Texas

Russell Reynolds Associates, a global search and leadership advisory firm, will establish an office at Hines’ 609 Main at Texas high-rise set to deliver this quarter in downtown Houston after agreeing to a 10-year lease for 15,000 square feet.

The firm will occupy space on the 35th floor of the 48-story, 1,056,658-square-foot tower scheduled to deliver in March at the corner of Texas and Main Streets in Houston’s central business district. The company will join Kirkland Ellis LLP, Orrick, Hogan Lovells and United Airlines in the Pickard Chilton-designed tower, which is more than 50% leased.

John Burke of JLL represented Russell Reynolds Associates, while Colvill Office Properties team of Damon Thames and Michael Anderson represented Hines. By Scott Layton


Virgin Mobile Signs Lease in One Kansas City Place for New Company Headquarters

After disclosing plans in July to relocate its corporate headquarters from Warren, NJ to downtown Kansas City as part of the re-launch of its new brand under Sprint (NYSE: S), Virgin Mobile has finalized a deal to lease 11,000 square feet of office space on the 32nd floor of One Kansas City Place at 1200 Main St.

Virgin Mobile is currently operating a temporary office on the eighth floor of the 42-story, 818,408-square-foot, Class A One Kansas City Place tower. The company expects to hire up to 100 people at its new office with plans to add 33 new employees in the first half of 2017.

Patrick Meraz, Jeffery Kembel and Matt Kiehne of JLL represented the landlord, GAW Capital Partners, in negotiations, while representatives with CBRE brokered the deal for Virgin Mobile. By Dana Gibson

Article source: http://www.costar.com/News/Article/Office-Lease-Up-January-23-21st-Century-Fox-News-Corp-to-Maintain-Corporate-HQs-in-12M-SF-at-Rockefeller-Center/188224?ref=/News/Article/Office-Lease-Up-January-23-21st-Century-Fox-News-Corp-to-Maintain-Corporate-HQs-in-12M-SF-at-Rockefeller-Center/188224&src=rss

Investment Firm Taking Space in N.Y. College

Investment firms have long tapped mathematicians and scientists to boost their trading operations.

Now one firm is taking office space inside a New York college to see if it can get a leg up on the process.

Two Sigma Investments LP plans to open what it calls its Collision Lab at Cornell University’s technology campus now rising on…

Article source: http://www.wsj.com/articles/investment-firm-taking-space-in-n-y-college-to-connect-with-academia-1485093600?mod=residential_real_estate

Mortgage Rates Remain at Recent Highs Despite Afternoon Bounce

Mortgage rates rose slightly today, on average, but performances varied by lender and depending on the time of day.  Rates were higher across the board this morning as global bond markets added to yesterday’s weakness (weaker bond markets = higher rates, in general).  Investors were on edge ahead of Trump’s inauguration address as there was speculation that he’d offer more details on specific stimulus plans.  When those details never came, markets reacted accordingly.  Stocks moved lower and bond markets improved.  Several lenders were thus able to offer mid-day rate improvements.  This took the average to “just slightly higher” from “decidedly higher” earlier this morning.

4.25% remains the most prevalently-quoted conventional 30yr fixed rate on top tier scenarios.  Some lenders are up to 4.375% after this week’s somewhat abrupt spike and a scant few remain down at 4.125%.  

For some borrowers, this week’s biggest impact on housing expenses comes not from rates, but from the FHA mortgage insurance news.  As feared, just over an hour after the inauguration, the Trump administration revoked the mortgage insurance cut announced earlier this month.  For those affected, the change in monthly payment would have been roughly equivalent to a 0.375% change in rate. 

Loan Originator Perspective

I am not a fan of locking on Friday and today is no different.   Starting around 2pm today, bonds have started to move into positive territory, so I am hopeful that 2.50 on the 10 year will serve as a ceiling to prevent a move higher.  With the recent weakness from yesterday and the late day rally, lenders will be very slow to pass along any improvements.   So I favor floating over the weekend and evaluate pricing on Monday.  –Victor Burek, Churchill Mortgage

Today’s Best-Execution Rates

  • 30YR FIXED – 4.25%
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.375%
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender


Ongoing Lock/Float Considerations

  • Rates had been trending higher since hitting all-time lows in early July, and exploded higher following the presidential election
  • Some investors are increasingly worried/convinced that the decades-long trend toward lower rates has been permanently reversed, but such a conclusion would require YEARS to truly confirm

  • With the incoming administration’s policies driving a large portion of upward rate momentum, mortgage rates will be hard-pressed to return to pre-election levels until well after Trump takes office.  Rates can move for other reasons, but it would take something big and unexpected for rates to get back to pre-election levels. 
     
  • We’d need to see a sustained push back toward lower rates (something that lasts more than 3 days) before anything less than a cautious, lock-biased approach makes sense for all but the most risk-tolerant borrowers. 
     
  • As always, please keep in mind that the rates discussed generally refer to what we’ve termedbest-execution(that is, the most frequently quoted, conforming, conventional 30yr fixed rate for top tier borrowers, based not only on the outright price, but also ‘bang-for-the-buck.’  Generally speaking, our best-execution rate tends to connote no origination or discount points–though this can vary–and tends to predict Freddie Mac’s weekly survey with high accuracy.  It’s safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie’s once-a-week polling method).

Article source: http://www.mortgagenewsdaily.com/consumer_rates/699428.aspx

Avison Young Launches US Hotel Service Line with Acquisition of Atlanta-Based Brokerage Boutique

Keith Thompson, left; and  Brad Sinclair, founded Hotel Assets Group LLC in 2007, are now moving to Avison Young.
Keith Thompson, left; and Brad Sinclair, founded Hotel Assets Group LLC in 2007, are now moving to Avison Young.Toronto-based Avison Young acquired Atlanta-based brokerage Hotel Assets Group LLC (Hotel AG) to kick off its newly launched U.S. hospitality practice.

The acquisition of 25-person Hotel AG, including 20 brokers, will form the basis of the firm’s new hospitality group branded under Avison Young. Five of the new executives, including Hotel AG founder Keith Thompson; co-presidents Brad Sinclair and Andrew Broad, and partners Michael Bernath, Chris Stark and Eric Gunderson will join Avison Young as principals.

Thompson, Sinclair and Bernath will operate out of Atlanta. Broad will be based in New York City, while Stark and Gunderson will operate out of Portland, OR, and Los Angeles, respectively.

Thompson and Sinclair founded Hotel AG in 2007, building a practice that today is marketing 182 hotel properties totaling $3 billion in market value, with $600 million in properties under contract.

Avison Young Chairman and CEO Mark E. Rose called the addition an important milestone in adding a fifth service line to complement its existing office, industrial, retail and multifamily brokerage practices.

“Increasingly, our U.S. and global investor clients either own or want to explore investments in hospitality assets,” Rose added. The Hotel AG acquisition provides AY with lodging real estate personnel in Atlanta, Washington, D.C., New York, Chicago, Los Angeles, San Francisco, Tampa, Orlando, Portland and Dallas.

While all of the largest global full-service CRE firms maintain well-established hospitality practices, few mid-market and independent brokerage companies have acquired national hotel sales practices in the current cycle. Avison Young, created in 1996 by the union of two Canadian firms, grew throughout the country over the next decade and opened its first U.S. office, in Chicago, in early 2009.

The company, headed by former Grubb Ellis executive Mark Rose, now comprises 2,400 real estate professionals in 79 offices in North America, the United Kingdom and Europe.

Avison Young is one of 10 active portfolio companies managed by Parallel49 Equity, a private-equity firm that investors in middle-market companies in the U.S. and Canada. Parallel49 Equity’s predecessor, Tricor Pacific Capital, was founded in Vancouver, Canada in 1996.

Since inception, Tricor Pacific Capital, and now Parallel49 have managed over C$1.2 billion ($901 million US) of total investor capital and is currently investing its fifth fund with C$400 million in committed capital.

Also joining Avison Young from Hotel AG in Atlanta are Rex Cagle, Matt Wilkins, Tracy Helton, Elaine Thompson, Darrell Skidmore, Jeremy Cabe, Scott Foster, Joe Jones, Justin Monsewicz, Victor Kalyanji, Wendy Blissett and Bill Bowen. Rick George and Mike George will be based in Chicago; Terry Sanders, Dallas; Chelsea Wang, San Francisco; Collin Foran, Orlando; Niven Patel, Tampa Bay; and Thierry Roch, Washington, D.C.

Avison Young plans to add 10 to 15 additional hotel brokers to the practice group during 2017, the company said.

Article source: http://www.costar.com/News/Article/Avison-Young-Launches-US-Hotel-Service-Line-with-Acquisition-of-Atlanta-Based-Brokerage-Boutique/188104?ref=/News/Article/Avison-Young-Launches-US-Hotel-Service-Line-with-Acquisition-of-Atlanta-Based-Brokerage-Boutique/188104&src=rss

MBS RECAP: Bonds Bounce Back After Inauguration

To be fair to today’s presidential inauguration, it was never destined to be an exceptionally big market mover.  Traders nonetheless had to prepare to move in either direction in the event Trump’s speech contained something revelatory.  

It didn’t… at least not when it comes to actionable developments for bond traders.  That, in itself, was a moderate motivation for bond buying and stock selling.  Reason being: more than a few market participants have been waiting for more details on stimulus specifics, both today and at Trump’s most recent press conference, and those details have yet to come.  In other words, fiscal stimulus is generally good for stocks and bad for bonds, so an absence of fiscal stimulus details has a mild, opposite effect.

After touching the highest yields of the year, 10yr Treasuries fell back to ‘unchanged’ by the close.  Fannie 3.5s gained an eighth of a point and Ginnie 3.5s gained almost a quarter point thanks to reduced refi threat after the repeal of the FHA MIP cut (MBS are worth more when they’re less likely to be eroded by refinancing).

2.52% continues to be the new ceiling, and the thought of breaking technical ceilings continues to be terrifying, according to 2013’s precedent.

2017-1-20 close

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/699434.aspx

CoStar’s People of Note (Jan. 20)


It’s time to update those contact managers with CoStar’s People of Note, reporting news on significant new CRE hires and promotions. This week’s issue includes the following markets: Greater Toronto Area, South Florida, San Francisco, Chicago, Orange County, Charlotte, Dallas / Ft. Worth, Atlanta, Detroit / Grand Rapids and Westchester / Connecticut.


GREATER TORONTO AREA

Hi-Rise Capital Hires Kraft as CEO

By Alexandrea Barogianis

Hi-Rise Capital, a Toronto-based mortgage broker and mortgage administrator focused on funding high quality real estate development projects in the Greater Toronto Area, has appointed Michael Kraft to CEO.

Kraft brings capital markets and mergers and acquisitions expertise to Hi-Rise from his career in investment banking. He has held senior roles at such leading financial institutions as National Bank Financial, Citigroup and most recently Dundee Capital Markets, where he led the firm’s real estate group.


CoStar’s People of Note is published each Friday covering the latest commercial real estate executive level promotions and new hires.
Click on the headline of each article to jump to full coverage.
Follow the news on Twitter @TheCoStarGroup and @JSumner2.

Send new executive hires and promotion announcements to news@costar.com.


SOUTH FLORIDA

Karson to Drive South Florida Operations for CBRE

By Christine Dorr

Arden Karson has joined CBRE as a senior managing director in the firm’s Miami, FL office. In her new role, Karson will oversee all aspects of CBRE’s South Florida business operations for its three area offices that employ approximately 200 professionals.

Karson brings more than 25 years of real estate experience, most recently serving as a senior vice president of acquisitions and development with The Related Group. Before that she worked at Berwood Investors, Advenir Real Estate, LNR, Barrow Street Capital, CREC, Lennar and PricewaterhouseCoopers.


SAN FRANCISCO

HFF Appoints Two Senior Managing Directors

By Eric Kies

HFF has selected senior managing directors Charles Halladay and Scott Pertel (pictured, right) as co-heads of the firm’s San Francisco, CA office.

Halladay will relocate from HFF’s Orange County office to lead the San Francisco office’s debt placement platform. Pertel will oversee the office’s investment sales platform. The two have almost 25 years of commercial real estate experience between them.


CHICAGO

MB Real Estate Elects Four to Executive Committee

By Rita Iseghohi

MB Real Estate recently elected (pictured, clockwise from top left) Krysta Bavlsik, Eileen Flynn, Karoline Eigel and Suzanne Hendricks to its executive committee.

Bavlsik is the executive vice president of MBRE Healthcare. Flynn is the senior vice president, managing director and corporate controller of the firm’s accounting services division. Eigel is the senior vice president and chief marketing officer. Suzanne Hendricks is the senior vice president and director of asset management.


ORANGE COUNTY

NGKF Hires Industry Leaders

By Brian Kremer

Newmark Grubb Knight Frank (NGKF) recruited five landlord and tenant representation brokers to its Orange County, CA office.

Jay Nugent, George Thomson, Greg Puccinelli and James Estrada have all joined the NGKF team as managing directors. Also in the move, Naomi Rizkowsky joins the firm as an associate. Prior to joining NGKF, all five were most recently with JLL.


CHICAGO

Transwestern Boosts Midwest Platforms

By Bryce Meyers

Transwestern boosted its Midwest capabilities with the hiring of June Simonian and Michael Cello (pictured, center) as senior vice presidents in the firm’s tenant advisory services division in Chicago, IL.

Michael Bacik (pictured, right) has joined the firm’s industrial team in Rosemont, IL as a senior vice president. Joining his team are Paul Boccellari and Brian Pomorski as associates.


CHARLOTTE

Foundry Commercial Hires Swart as SVP

By Tho Vu

Chris Swart has joined Foundry Commercial as a senior vice president, tasked with landlord representation and corporate services.

Swart was most recently with Savills Studley, focusing on tenant representation and corporate services as a managing director following Savills Studley’s acquisition of Cresa Charlotte, where he was a senior vice president. Before that he was with Lincoln Harris and Bank of America’s corporate workplace transactions and investments group.


DALLAS / FT. WORTH

Mill Creek Residential Appoints New CFO

By Jeanine Kaminski

Mill Creek Residential has selected David L. Reynolds as its new CFO, tasked with improving the multifamily owner and developer’s finance, accounting and reporting infrastructure.

Bringing roughly 28 years of experience in public accounting and debt and equity capital markets, Reynolds joins Mill Creek Residential after spending 14 years in the real estate private equity sector, most recently as a managing director with Five Mile Capital Partners. Before that he was with UBS Warburg and its predecessor companies, Kidder Peabody and PaineWebber.


Avison Young Launches US Hotel Service Line with Acquisition of Atlanta-Based Brokerage Boutique

By Randyl Drummer


DETROIT / GRAND RAPIDS

Colliers International Expands Retail Team

By Aderonmu Zainab

Colliers International expanded its retail division in Detroit with the hiring of Ben Hubert and Ben Rosenzweig as vice presidents.

Hubert, who transitioned into brokerage in 2014, is a certified general licensed appraiser. Rosenzweig comes to Colliers with more than seven years of experience in retail, sales and leases. The duo previously worked together for several years at Indigo Centers.


DALLAS / FT. WORTH

Weitzman Adds New VP

By Tessia Knight

Weitzman has hired Byron Howard to serve as a vice president. He will primarily focus on project leasing, with an emphasis on its development arm, Cencor Realty Properties.

Howard previously served as a leasing representative at InvenTrust Properties Corp. where he handled internal leasing activity. Before that he was a vice president at JLL, where he focused on shopping centers along with new tenant representation and project leasing opportunities.


CHICAGO

Pine Tree Bolsters Property Management Platform

By Enid Guerrero

Pine Tree made two appointments within the firm’s property management division, promoting Jennifer Costa to vice president and director, and hiring Brian Page (pictured, right) as assistant property manager.

Costa will oversee the property management department and lead a team that handles operations of the company’s national portfolio. Costa joined Pine Tree in 2005. Page was most recently with Stack Real Estate.


WESTCHESTER / CONNECTICUT

Owen Joins Greiner-Maltz Realty Advisors

By Braedon Koerwitz

Lisa Owen moved to Greiner-Maltz Realty Advisors as an associate broker. In her new role, Owen will be in charge of investment sales for Greiner-Maltz.

Previously, she was with Houlihan Lawrence, where she dealt in the sale and leasing of commercial properties in both New York and Connecticut. Owen has worked across the commercial real estate industry for the last 25 years and has been involved in more than $2 billion worth of transactions throughout her career.


Follow the news on Twitter @TheCoStarGroup and @JSumner2.
Check out last week’s edition of People of Note.


Article source: http://www.costar.com/News/Article/CoStars-People-of-Note-Jan-20-CBRE-HFF-Name-Senior-Managing-Directors/188190?ref=/News/Article/CoStars-People-of-Note-Jan-20-CBRE-HFF-Name-Senior-Managing-Directors/188190&src=rss

Whole Foods to Open a Lower-Priced ‘365’ Store in Brooklyn

Whole Foods Market Inc. plans to bring its lower-priced store chain, 365 by Whole Foods Market, to Brooklyn’s Fort Greene neighborhood.

The first 365 store in the tri-state area will sit at the base of 300 Ashland Place, a new 35-story tower next to the Brooklyn Academy of Music and not far from the Barclays Center, the company said.

The upscale residential building, developed by Two Trees Management Co., offered a spot close…

Article source: http://www.wsj.com/articles/whole-foods-to-open-a-lower-priced-365-store-in-brooklyn-1484874002?mod=residential_real_estate

Deccan Villas Sells for $15.6M


A local investor acquired the 39-unit Deccan Villas at 1533 N. Martel Ave. in Los Angeles, CA from a private investor for $15.6 million, or $400,000 per unit.

The 42,300-square-foot multifamily building delivered in 1974 in the Hollywood multifamily submarket, north of Sunset Blvd. between Fairfax and La Brea Avenues. It is comprised of a mix of singles, one- and three-bedroom apartments.

Adi Mizrahi, Tony Azzi and Jordan Asheghian of Marcus Millichap represented both parties in the sale.

Please see CoStar COMPS #3791788 for more information on this transaction.

Article source: http://www.costar.com/News/Article/Deccan-Villas-Sells-for-$156M/188081?ref=/News/Article/Deccan-Villas-Sells-for-$156M/188081&src=rss

MBS RECAP: Bond Markets Continue Slide

Pain continued for bond markets today as 10yr yields broke above the upper range boundaries that had been intact since the beginning of the year.  Admittedly, at roughly 2.32 to 2.44 (closing levels), the range in question isn’t huge, but a break is a break.  It adds to the sense of negative momentum in the short term, all things being equal.

Bonds began the day only slightly weaker.  Indeed, for much of the overnight session it looked like yields were trying to hold under the 2.44% range boundary.  Economic data was part of the problem at 8:30am–especially the balmy 23.6 vs 15.8 forecast in the Philly Fed Index.  

On a broader note, markets weren’t quite done fretting over the change in tone underway at the Fed.  Yellen’s speech from yesterday was mentioned around more than a few campfires today as a reason to remain defensive.  The 1pm auction of 10yr TIPS (Treasury Inflation-Protected Securities) added to that bias, as did uncertainty regarding Treasury Secretary Mnuchin’s confirmation hearing.  

When the auction and the hearing passed, bonds recovered somewhat, but we were nonetheless left with the sense that our supportive range ceiling was broken.  Tomorrow’s inauguration brings additional volatility potential.  It could accelerate recent weakness or reinstate the range.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/699144.aspx

Essex Acquires Two Valley Village Apartment Communities


Essex Property Trust, Inc., a San Mateo, CA-based public REIT, acquired the Ashton Sherman Village and the Emerson Valley Village apartment communities located in Valley Village, CA from IMT Capital for $185 million, or about $453,000 per unit.

The 264-unit Ashton Sherman Village delivered in 2013 at 12729 Riverside Dr. and totals 310,358 square feet. The two-building, 183,000-square-foot Emerson Valley Village community delivered in 2010 at 12021 Kling St. and consists of 144 units.

The two assets were roughly 97 percent leased, and both are encumbered by prohibitions against condominium conversions signed by both parties in the sale.

Mark Petersen, Sean Deasy and Blake Rogers of HFF represented both side of the all-cash sale.

Please see CoStar COMPS #3784263 for more information on this transaction.

Article source: http://www.costar.com/News/Article/Essex-Acquires-Two-Valley-Village-Apartment-Communities/188117?ref=/News/Article/Essex-Acquires-Two-Valley-Village-Apartment-Communities/188117&src=rss