October 6, 2015

Office Lease Up (Oct. 5) ConAgra Heading to Chicago; Biotech Firm bluebird Building Future Nest in Cambridge

bluebird bio Inc. entered into a lease for a total of 253,108 square feet of office and laboratory space in a new building currently under construction at 60 Binney St. in Cambridge, MA.

The building is part of the 541,000-square-foot Alexandria Center at Kendall Square being developed by Alexandria Real Estate Equities and scheduled for completion in late 2016. The CBRE New England leasing team representing the building includes Gregory Lucas, Adam Brinch and Curtis Cole.

The 10-lease lease encompasses the entire building at 60 Binney St. with the exception of a ground-floor retail suite and will serve as the clinical-stage biotechnology company’s headquarters, replacing the firm’s current office at 150 Second St. and 215 First St. in Cambridge.

Alexandria has approximately 5.2 million square feet of office/laboratory space in the greater Boston area, including development projects currently under construction. By Mark Heschmeyer

ConAgra Moving HQ from Omaha to Chicago

Omaha-based ConAgra Foods (NYSE: CAG) will relocate its headquarters from Omaha to Chicago where it signed a lease in one of the largest office buildings in the U.S.

The maker of Healthy Choice, Hunt’s, Slim Jim, Chef Boyardee and other packaged food products signed a 15-year lease for 168,000 square feet in theMart, a four million-square-foot complex formerly known as the Merchandise Mart owned by Vornado Realty Trust.

ConAgra will move approximately 700 employees to the River North location beginning in summer 2016. The company plans to keep roughly 1,200 employees, including those in research development and supply chain management, in Omaha.

“Locating our headquarters and our largest business segment in Chicago places us in the heart of one of the world’s business capitals and consumer packaged goods centers, enhancing our ability to attract and retain top talent with a focus on brand building and innovation,” said Sean Connolly, president and CEO of ConAgra Foods.

ConAgra will join Yelp, Motorola, Discovery Chicago, MSL Group and Razorfish as a tenant at the Vornado-owned theMart, which is so large that until 2008 had its own zip code. The relocation was spurred by Illinois Governor Bruce Rauner, who approved tax credit incentives for the company.

ConAgra recently disclosed restructuring plans including 1,500 job cuts. The company has maintained operations in the Chicago area, leasing 150,000 square feet of space within the Naperville Office Park in Naperville since 2004. The company plans to close that location and shift the majority of those 400 employees to its new downtown location.

“We are making difficult, but necessary, decisions to enhance productivity, drive standardization and enhance flexibility to deliver improved profitability,” added Connolly. Leasing at the Merchandise Mart is handled by Andrea Saewitz, Wendy Katz and Chris McKinney of Cushman Wakefield – J.F. McKinney Associates. By Bryce Meyers

Johnson Johnson Leases 103,000 SF in Tampa

Johnson Johnson, the health care companies responsible for the manufacture and retail of consumer products, medical devices, and prescription products, has leased 102,580 square feet at 8800 Grand Oak Circle in Tampa, FL.

The 135,174-square-foot Corporate Center One office building was constructed in 1997 on 9.7 acres in the Northeast Tampa submarket of Hillsborough County, within the Hidden River Corporate Park.

Clay Sovich and Ron Ruffner with Cushman Wakefield represented the landlord, a joint-venture between Oaktree Capital Management and Banyan Street Capital. By Jeffery Wilson

Cepheid Signs with The Irvine Co. in Santa Clara

Cepheid, a molecular diagnostics company, entered into a lease agreement with The Irvine Co. to take 83,000 square feet of space at 2550 Great America Way in Santa Clara, CA. The initial term of the lease is expected to begin around April 1, 2016, and will run for 10 years and five months.

Based in Sunnyvale, CA, Cepheid is developing and marketing molecular systems and tests designed to perform sophisticated genetic testing for organisms and genetic-based diseases. By Mark Heschmeyer

SNC-Lavalin To Extend Lease in Toronto

SNC-Lavalin’s nuclear sector, a long-term tenant in the Mississauga’s Sheridan Park, has committed to extend its lease on a long term basis in the newly refurbished facility. Slate Office REIT entered into a binding agreement with SNC-Lavalin for 215,000 square feet of research, development and office space in Sheridan Park for an initial term of 10 years.

Under the terms of the agreement, Slate will transform 2251 and 2285 Speakman Drive for SNC-Lavalin at a cost of $46 million, fully retrofitting the space to create functional, contemporary facilities with modern amenities.

The lease will have an initial term of 10 years and include an option to lease an additional 28,000 square feet increasing the total area to 243,000 square feet. By Mark Heschmeyer

Fonar Inks Lease Renewal Reaching Half Century with Rechler Equity

Fonar Corp., a developer and manufacturer of MRI scanners, signed an 11-year, 78,240-square-foot lease renewal at 110 Marcus Drive in Melville, NY.

Fonar introduced the world’s first commercial MRI scanner. The company had been considering a relocation out of state due to taxes but was able to remain at the Rechler Equity property after the Suffolk County Industrial Development Agency granted the company property tax incentives for the next decade.

As part of the 11-year lease renewal, landlord Rechler Equity Partners will oversee a series of capital improvements at 110 Marcus Drive. Rechler Equity director of acquisitions and leasing Ted Trias negotiated the lease renewal on behalf of the company, while Howard Nemshin, a partner at Atlantic Property Services LLC, represented the tenant. By Mark Heschmeyer

SIM Group Signs at Historic Eastman Kodak Property

The SIM Group, a leading supplier of services and technology to the film and television industry, signed a long-term lease for 65,000 square feet in a building constructed by Eastman Kodak in 1994 and recently renovated by Lincoln Property Co.

The retrofitted facility at 1017 N. Las Palmas Ave. features traditional editorial office space, post-production space, a DI theater and camera rental space. With SIM Group’s arrival, the two-building campus, which was built and occupied by Kodak for nearly a century, will become a media and technology hub. The three-story space will house three SIM Group companies.

Matthew Miller, managing principal of Cresa, represented SIM. By Mark Heschmeyer

Holder Construction Group Leases 55,964

Holder Construction Group leased 55,964 square feet in the Riverwood 200 building currently under construction at 3250 Riverwood Pky. in Atlanta. Construction began last month on the 299,125-square-foot, 12-story office building, which is slated to deliver in July 2017.

Cooper Carry Inc. is the architect for the building being developed by Highwoods Properties. Holder’s lease includes the entire 11th and 12 floors, and 4,506 square feet on the 10th floor. Other tenants will include Delta Community Credit Union and Bennett Thrasher LLP.

Mike Wells and Jim Bacchetta of Highland Properties brokered the deal on behalf of the landlord. By Jonell Finley

Nations Direct Mortgage Signs 7-Year Lease

Nations Direct Mortgage leased 49,940 square feet of office space spread across 5 and 6 Hutton Centre Dr. in Santa Ana, CA. The seven-year deal is valued at approximately $10 million, and includes building signage. The tenant is consolidating and expanding nearby offices.

The twin 14-story office buildings known as Griffin Towers total 547,230 square feet and were built in 1987. Jeff Tabor with Corporate Realty Advisors represented the tenant. Dean Chandler, Weston Chandler, John Weiner, and Justin Hill of CBRE represented the landlord. By Brian Kremer

Leukemia Lymphoma Society Takes 41,868 SF I Rye Brook

The Leukemia Lymphoma Society (LLS) signed a 41,868-square-foot lease to relocate its headquarters to 3 International Drive in Rye Brook, NY. The cancer research organization leased 9,868 square feet on the first floor and the entire second floor, 32,000 square feet, at the 94,000-rentable-square-foot, three-story building. It will relocate to the new space from 1311 Mamaroneck Avenue in White Plains.

The lease term is 15 years. LLS said the reduced space will save millions of dollars over the term of the lease and provide its employees with a collaborative work environment. CBRE executive vice president William V. Cuddy, Jr. and vice president Kevin McCarthy represented the tenant. The landlord, Reckson Operating Partnership, a division of SL Green, was represented in-house in the transaction by Robert Swierbut, vice president leasing.

This is the second lease LLS has signed with SL Green over the previous 12 months. The fundraising arm of the organization serving Connecticut, Westchester and the Hudson Valley previously leased approximately 7,000 RSF at Landmark Square in Stamford, CT. By Mark Heschmeyer

Redflex Relocates to Two Glendale Office Buildings

Redflex Traffic Systems signed two leases to relocate its Phoenix office operations to buildings at 5651 W. Talavi Blvd. within Talavi Corporate Center and 16680 N. 51st Ave. within the 51 Bells project in Glendale, AZ.

Redflex leased approximately 35,760 square feet of space at Talavi Corporate Center and is relocating from 23rd Avenue and Pinnacle Peak Road. Redflex also leased approximately 14,000 square feet at 51 Bells. The company will take occupancy of its new spaces in December.

Redflex Traffic Systems develops and manufactures a wide range of digital photo enforcement solutions including red light camera, speed camera, and school-bus-stop arm camera systems.

Senior directors Blaine Black, Sam Murik and Don Rodie and associate Robb Vallier with Cushman Wakefield represented Redflex. Ashley Brooks of CBRE represented Los Angeles-based Regent Properties, owner of Talavi Corporate Center. Mark Linsalata of Lee Associates Arizona represented Arizona-based 51 Bells Limited Partnership. By Mark Heschmeyer

Veracity Engineering Leases DC Office Space

Veracity Engineering signed an 11-year lease for 34,642 square feet at the L’Enfant Plaza North building at 955 L’Enfant Plaza SW in Washington, DC.

Completed in 1968, the I.M. Pei-designed office building measures 283,100 square feet over eight stories at the southeast corner of 9th and D Streets in D.C.’s L’Enfant Plaza. The property is located off I-395 and within walking distance of the L’Enfant Plaza metro station, and is anchored by the U.S. Department of Energy.

Andrea Murray and Jill Goubeaux of The JBG Cos. provided in-house representation for building owner JBG, while Geoffrey Kreiss of Cushman Wakefield represented Veracity Engineering. By Javier B. Jennings

Wells Fargo Leases 33,000 SF in Glen Mills

Wells Fargo signed a 33,321-square-foot lease on the first floor of the office building at 50 Applied Card Way in Glen Mills, PA. The five-story, 248,975 square foot, Applied Corporate Center was constructed in 2002 in the Delaware County submarket.

Blaise Fletcher and John Perkins with JLL brokered the deal on both sides of the table. By Tho Vu

Coyote Logistics Completes 30,000-SF Office Lease in Minneapolis

Coyote Logistics signed a new 30,000 square foot office lease at 401 1st Ave. N in Minneapolis. The UPS subsidiary and 3PL provider previously maintained offices in Brooklyn Park, Minnesota, a suburb of the Twin Cities.

Coyote Logistics will take occupancy of the new space in the first quarter of 2016, upon completion of a custom build-out to the new space. MB Real Estate represents Coyote Logistics in its real estate interests nationwide, and the firm’s David Burkards, senior vice president, assisted with its relocation. By Mark Heschmeyer

TowneBank Takes New Richmond HQ Space

TowneBank signed a lease for 26,047 square feet of office space for its regional headquarters at Gateway Plaza in downtown Richmond, VA.

The new building at 800 E. Canal St., occupies a block in the financial district. The 18-story, high-rise office building and parking garage were developed and are owned by an affiliate of St. Louis-based Clayco.

The bank will occupy 12,342 square feet, which comprises most of the ground floor and 13,705 square feet on the seventh floor. TowneBank’s downtown full-service banking center will be housed on the first floor.

Gerald S. Divaris, chairman and CEO, and Brett McNamee, senior vice president of Richmond office of Divaris Real Estate Inc. negotiated on behalf of the tenant with Clayco. By Mark Heschmeyer

SPS Commerce Relocates, Expands at Overlook Corporate Center

SPS Commerce signed a long-term, 25,000-square-foot lease at 150 Clove Road in Little Falls, N.J. The Minneapolis-based retail supply chain network and provider of cloud-based solutions and analytics will relocate its New Jersey operations from Parsippany to Overlook Corporate Center’s fourth floor in February 2016.

Richard Mirliss, executive managing director at Colliers International, along with colleagues executive managing director Richard J. Madison, and associates Jack Callahan and Alexander Vitro, represented the building’s ownership, Theta Holding Company, LP, as the building’s exclusive listing agent. By Mark Heschmeyer

AppFolio Leases Richardson Office Space

AppFolio, a property management software company, leased 24,479 square feet in Cardinal Park in Richardson, TX. The nine-building business park spans more than 10 acres between International Pky. and N. Plano Rd. AppFolio will occupy the second floor of Building Nine beginning in March 2016.

Joshua Barnes and James Engels at Holt Lunsford Commercial represented the landlord, Adler Kawa Real Estate Advisors in the direct deal with the tenant. By Tessia Knight

DPR Construction Leases 20,612 SF in Sunset Corporate Plaza

DPR Construction, a privately held, employee-owned national technical builder, signed an 11-year deal for 20,612 square feet at the Sunset Corporate Plaza in Reston, VA.

The company will be moving its Falls Church office to 11109 Sunset Hills Rd., a 41,212-square-foot, two-story office building also known as Sunset Corporate Plaza 2. Josh Masi, Matthew Bundy and Tom Walsh of Cushman Wakefield represented the landlord, Penzance Cos.; while Fielding Muir of Transwestern represented DPR Construction. By Walt Brown

Wing Lung Bank To Move U.S. HQs to Newport Beach’s Fashion Island

Wing Lung Bank signed a 10-year lease with The Irvine Co. at 520 Newport Center Drive in Newport Beach, CA. The bank, which has operated in Hong Kong for over 80 years, is a wholly owned subsidiary of China Merchants Bank, the sixth largest commercial bank by total assets in China. It is currently among the top 50 banks in the world.

The bank will take the entire 16th floor totaling 17,630 square feet at the Irvine Co.’s newest office building to relocate its U.S. headquarters from Alhambra, CA. It will be the first Chinese run bank to enter the Newport Center area.

Senior vice president Tom Nguyen with NAI Capital and Nelson Chau, an independent broker, advised Wing Lung Bank Ltd. By Mark Heschmeyer

Article source: http://www.costar.com/News/Article/Office-Lease-Up-Oct-5-ConAgra-Heading-to-Chicago;-Biotech-Firm-bluebird-Building-Future-Nest-in-Cambridge/175976?ref=/News/Article/Office-Lease-Up-Oct-5-ConAgra-Heading-to-Chicago;-Biotech-Firm-bluebird-Building-Future-Nest-in-Cambridge/175976&src=rss

MBS RECAP: Running Out of Ways to Say "Post-NFP Knee-Jerk."

Here it is the end of Monday and markets are still stuck on the same old thoughts and strategies that existed last week even before the NFP release.  At the time, traders were feeling like the bond rally had already shown perplexing staying power and that there was a high bar for NFP to help extend the rally.  In other words, traders were leaning toward cashing in the recent gains or looking for an entry point to bet on rates moving higher.

Friday at 10am marked that moment and nothing else important or interesting has happened since (relatively). 

The fact that traders are tuned out from economic data and other calendar events is evident in the extent to which bonds and stocks are following each other.

2015-10-5 lever

If today’s ISM Non-Manufacturing data was able to come out as weak as it did without stocks or bonds even noticing, and when stocks and bonds are trading with this much correlation, something else is going on.  At the risk of using market cliches that I normally make fun of, stocks were oversold and bonds were overbought–even if only temporarily.  Today’s movement looks like a classic reaction to an overbought/oversold condition (that’s why I make fun of these terms because they really only work in hindsight–like most predictive analysis).

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/517084.aspx

Investor Pays $61.3M for Airport Spectrum Portfolio

Sunny Hills-Palladium acquired the Airport Spectrum office buildings at 5767-5767 W. Century Blvd. in Los Angeles, CA for $61.25 million, or about $121 per square foot.

The two-building office campus delivered in 1982. The two buildings total 505,000 square feet on 2.9 acres in close proximity to LAX. The campus was almost 32 percent vacant at the time of sale.

Manfred Schaub, Chris Sinfield, and Marc Renard of Cushman Wakefield, Inc. represented the seller. The buyer handled the sale in-house.

Please see CoStar COMPS #3397105 for more information on this transaction.

Article source: http://www.costar.com/News/Article/Investor-Pays-$613M-for-Airport-Spectrum-Portfolio/175731?ref=/News/Article/Investor-Pays-$613M-for-Airport-Spectrum-Portfolio/175731&src=rss

Mortgage Rates Remain Lower After Volatile Reaction to Jobs Data

Mortgage rates had a wild day today.  If you’ve spoken to a mortgage originator about rates any time in the past 24 hours, it’s important to understand just how immense the swings have been.  Let’s start with the good news.  The average conventional 30yr fixed rate quote thundered to its best levels in more than 5 months this morning, making it easily to 3.75% for almost any lender and even as low as 3.625% for quite a few lenders. This, after the big jobs report came in significantly weaker than expected.

The bad news is that the afternoon saw a fairly substantial reversal in the bond markets that underlie mortgage rates.  When those trading levels begin losing ground, mortgage lenders are increasingly at risk of recalling rate sheets and sending out new, higher rates (aka “mid day reprice”).  By the early afternoon, most lenders had pulled back their earlier, more aggressive offerings, leaving us with rates that are still better than yesterday’s, but not nearly as low as this morning’s.

The fact remains that the jobs report provided a compelling negative argument against a Fed rate hike and against general economic growth itself.  Without a strong growth outlook, it will be hard for longer term rates to move higher, no matter what the Fed does with short term rates.  There can still be plenty of volatility in the near-term though.  That makes today’s 5-month lows yet another good opportunity to lock for those that aren’t interested in wading through the volatility.  Doing so could prove beneficial, but only at the risk of being forced to accept a higher payment or fees if markets move against you.  In general, the less time you have and the less flexibility on payment/costs, the more it makes sense to lock.

Loan Originator Perspective

“Today’s disappointing pay rolls report has helped bonds to continue to rally.   We are at the best levels now since about April.   The rate sheets I have seen have not passed along all the gains, which is pretty much standard operating procedure when we have a big rally.   As always, if you are happy with current pricing, nothing wrong with locking.  I however, favor floating all loans until Monday.  This gives secondary departments time to see if the gains hold and gives rates time to allow Asian markets to respond to today’s report when they open on Sunday night.” –Victor Burek, Churchill Mortgage

“A dismal September jobs report boosted bonds today, as we neared levels we haven’t seen since last spring.  I’ve been mentioning markets needed some defining motivation to break the range, and we now have it.  Pricing improved significantly enough to actually lower rates, not just improve pricing.  We’ll see how much carries over into next week, this report paints a dour economic picture for the US, it’s tempting to float, but sure could do worse than locking.” –Ted Rood, Senior Loan Originator

“The jobs report today was not a good one, a big miss some would say, yet rates only improved modestly.  Part of the reason may be that we were at the best levels in some months prior to the report so there wasn’t much room to run.  The lack of a strong rally today suggests there may not be much interest in lower rates from market participants.  I think mortgage shoppers should seriously consider taking advantage of the best rates we’ve seen in the past few months and lock at this point.” –Jason B. Anker, Vice President- Loan Officer at Salem Five

“Mortgage Rates improved, again, today and more importantly we have broken through the bottom of a long term range.  Sure, it could only be a small test and next week we rise back into the range, but I certainly believe that floating is worth the gamble at this point.  Float, but as always, do so cautiously.” –Brent Borcherding, brentborcherding.com

Today’s Best-Execution Rates

  • 30YR FIXED – 3.75%
  • FHA/VA – 3.5%
  • 15 YEAR FIXED – 3.125%
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender

Ongoing Lock/Float Considerations

  • 2015 began with a strong move to the lowest rates seen since May 2013.  The catalyst was Europe and the introduction of European quantitative easing.  Investors bet heavily the move lower in European rates and domestic rates benefited as well.  But with those bets finally drying up in April and with the Fed seemingly intent on hiking rates in the US, May and June saw a sharp move back toward higher rates.  The implicit fear is that global interest rates set a long term low in April, and have now begun a major move higher.

  • July said “not so fast” to that potential “big bounce.”  Some of the data began to suggest the Fed is still a bit too early in talking about raising rates in 2015–particularly, a lack of wage growth or any promising signs of inflation.  But Fed proponents maintain that low inflation is a byproduct of temporary trends in the value of the dollar and the price of oil, and that once these factors  level-off, inflation will ultimately return.  That side of the argument suggests that inflation could increase too quickly if the Fed hasn’t already begun normalizing interest rates.
    • With all of the above in mind, locking made far more sense for the entirety of May and June, and we were not shy about saying so.  The second half of July saw that conversation shift toward one where multiple outcomes could once again be entertained.  In other words, we went from “duck and cover!” to “let’s see where this is going…”   Even the Fed took a similar stance when it held off raising rates when it had an excellent opportunity to do so in September’s meeting.

    • 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/516509.aspx

    Shopping Center Owners Challenge Haggen’s Plan to Close 100 Grocery Stores

    A committee representing landlords, employees and other unsecured creditors is objecting to a plan submitted in bankruptcy court by Haggen to close at least 100 stores, including all of the properties in the grocer’s ill-fated expansion into California, Arizona and Nevada.

    Bellingham, WA-based Haggen, which at this time last year was a regional grocer with 18 stores in the Pacific Northwest, last December agreed to pay more than $300 million for 146 Vons and Albertsons stores shed by Albertsons as a condition of Federal Trade Commission approval of its merger with Safeway.

    Over a two- or three-month period earlier this year, Haggen, backed by Florida private equity firm Comvest, rocketed to 164 stores employing 10,000 people across California, Arizona and Nevada, in addition to its stronghold in Washington and Oregon.

    The new stores, many located within the same trade areas as remaining Vons or Albertsons stores, ran into trouble as soon as they opened under the Haggen name — especially in highly competitive grocery markets in Southern California and other areas where the brand was unknown. Customers complained about price gouging and poor selection and inventory.

    After filing a $1 billion lawsuit alleging that Albertsons sabotaged its ability to compete in the acquired stores during the ownership transition, Haggen earlier this month filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware.

    Haggen, as part of its effort to reorganize around its 37 core profitable stores in Washington and Oregon, last week asked for bankruptcy court permission to conduct store-closing sales at all 67 California stores as part of a larger exit of all Southwest holdings. That followed the closure of 27 stores in California, Arizona and Nevada during August.

    The chain’s request drew opposition from the committee of employees, suppliers and landlords, which include publicly traded REITs such as Spirit Realty Capital Inc. and Regency Centers, Inc. along with other privately held owners of the grocery-anchored shopping centers in which the Haggen stores were located.

    Spirit Realty and other unsecured creditors contend that conditions of the $215 million in debtor-in-possession financing offered to Haggen by its lenders PNC Bank and others are at odds with protections built into their leases.

    U.S. Bankruptcy Judge Kevin Gross granted the committee’s request to delay the hearing on bankruptcy financing until Oct. 13. The committee argues that ultimately, the stores should be sold to another grocer or user that will keep them open rather than shut them down. Any sale requires bankruptcy court approval.

    Haggen said Sept. 24 that as part of its previously announced plan to right-size the company, Sagent Advisors, LLC has been “actively working to explore market interest for its store locations in California, Arizona, Oregon, Washington and Nevada.” All employees of the non-core stores and the Pacific Southwest support office will receive 60-day notice of the pending store and office closures, during which time all stores will remain open.

    In a Sept 15 regulatory filing with the SEC, Spirit Realty disclosed that it acquired 20 stores from Haggen in a sale-leaseback transaction for $224 million in a series of closings during the first half of 2015. Under a 20-year triple-net master lease of the stores, Haggen became one of Spirit Realty’s top tenants by mid-year.

    Spirit Realty indicated in its filing that it believes the Haggen locations are among the best in its portfolio, and that there is strong interest in the space from backfill tenants, many of which are investment grade, willing to pay essentially the same rents.

    A number of groccery chain tenants have been active in the market, including Winco, Grocery Outlet and Aldi, a Germany based chain expanding in the U.S., retail brokerage insiders tell CoStar.

    “Due to the interest we have received from other operators, we do not anticipate extended, if any, vacancy of these assets,” Spirit said in its filing. “If Haggen rejects the [master] lease, we believe we would be able to relet the properties for the aggregate rents equal to or above the contractual rent under the master lease.”

    Article source: http://www.costar.com/News/Article/Shopping-Center-Owners-Challenge-Haggens-Plan-to-Close-100-Grocery-Stores/175881?ref=/News/Article/Shopping-Center-Owners-Challenge-Haggens-Plan-to-Close-100-Grocery-Stores/175881&src=rss

    CoStar’s People of Note (Oct. 2)

    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: Chicago, New York City, Cincinnati, Orange County, Raleigh-Durham, Tampa / St. Petersburg, Boston, Washington DC, Phoenix, Minneapolis, Charlotte, and more!


    CBRE Promotes Connelly to President of Midwest Region

    By Sean Strausman

    CBRE promoted Chris Connelly from executive managing director of its Chicago region to president of the firm’s entire Midwest division.

    Reporting to Cal Frese, CEO for the Americas, Connelly will oversee all CBRE service lines in Illinois, Indiana, Michigan, Minnesota, Ohio, Missouri, Kentucky, and Wisconsin.

    Prior to joining CBRE, Connelly served as senior vice president and regional leasing director at JLL. During that time, he was responsibility for suburban Chicago office business and local market tenant representation. He began his career at LaSalle Partners specializing in industrial brokerage.


    Shay Joins CBRE in NYC

    By Brittany Cantwell

    CBRE Group, Inc. hired Tricia Shay as a managing director of occupier services. Based in the firm’s New York City office, Shay will be responsible for transaction management account business.

    Shay was formerly the vice president of real estate North America and field operations for the Eastern U.S. at Weight Watcher, and before that was with Johnson Controls’ global workplace solutions group in Long Island, NY, amassing more than 20 years of industry experience.

    Shay holds a bachelor’s degree in business management from Dowling College.

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


    CBRE Taps Owens to Lead Debt Finance for Hotels Sector

    By Justin Sumner

    Mark Owens has joined CBRE Capital Markets as an executive vice president, tasked with leading the debt and structured finance team in the hospitality sector.

    Based in the firm’s New York City office, Owens will secure debt and financial products and lead institutional asset sales for hotel clients across North America.

    Owens has completed more than $6 billion in financing transactions in the hotel sector throughout his career. Most recently at Ackmann-Ziff, Owens led the firm’s hospitality practice including the origination and placement of hospitality-related debt, equity, joint-venture, and sales transactions. Before that he served as vice president at Sonnenblick Goldman and was a senior associate at HVS International.


    Fessler to Join Al. Neyer as EVP of Business Development

    By Charles Webb

    CBRE director Robert Fessler will join commercial real estate development firm Al. Neyer as its new executive vice president of business development.

    Fessler served as the managing director at CBRE for slightly over one year. Before that he worked for GID Investment Advisors and Duke Realty Corp.

    At Al. Neyer, Fessler will be in charge of expanding client relationships as well as expanding the firm’s business operations in the Cincinnati, Pittsburgh, and Nashville markets.

    GTIS Partners Taps Former PREI Exec Team for US Expansion

    By Mark Heschmeyer


    Hogberg Joins NAI

    By Justin Sumner

    Steven Hogberg has joined NAI Capital as a senior vice president. Based in the firm’s Encino, CA office, Hogberg will focus on the office market, serving institutional and private owners throughout the Southern California region.

    Hogberg brings more than 25 years of experience in office and retail property sales and leasing, having completed more than 25 million square feet in transactions and listings. He was most recently a senior vice president at Coreland Companies.

    Hogberg graduated from the University of Southern California with a bachelor’s degree in finance with a real estate concentration. He is active in ICSC.


    Cushman Wakefield Makes Two Executive Appointments

    By Jakari Turner

    Cushman Wakefield hired former Thalhimer brokers Kent Honeycutt and Jeff Stephens (pictured, right) as senior vice president and vice president, respectively, in the firm’s Raleigh-Durham office.

    Honeycutt is a 27-year industry veteran who specializes in tenant and landlord representation.
    Stephens started at Lee Associates Orange County before transitioning to Thalhimer in 2011.


    Colliers Names Eggimann New VP of Finance

    By Lisa Scott

    Robert Eggimann has been appointed to the role of vice president of finance at Colliers International Tampa Bay Florida.

    In his new role, the former CFO of Grady Pridgens will be responsible for directing the firm’s financial policies in its Tampa Bay, Central Florida and Southwest Florida offices. He will also be responsible for other financial and administrative functions that support the growth and profitability of the company.

    Eggimann is a certified public accountant, certified tax resolution specialist, and spent more than 11 years at Grady Pridgens where he oversaw the company’s financial performance.


    SVN Parsons Appoints McNamara to VP – Retail Brokerage

    By Jeannie Reamer

    SVN Parsons Commercial expanded its retail services division with the hiring of Ria K. McNamara as its new vice president of retail brokerage.

    Based in the Boston office, McNamara will look to improve the tenant mix in existing shopping centers and identify retail development opportunities for the firm.

    Prior to joining SVN Parsons Commercial, McNamara owned her own brokerage company for 18 years. She broke into the industry with Flatley Co., where she worked as the leasing representative for the Garden City shopping center in Cranston, RI. She also worked on the retail team at Hunneman Commercial and later Dartmouth Co. in Boston.


    UIP Taps New VP, Director of Development

    By Bryce Meyers

    UIP Asset Management (UIPAM) made several appointments in its Washington, D.C. office, bringing in Brook Katzen (pictured, left) as vice president of development and Daniel Perdomo as director of development, and promoting Jason Lifton to development associate.

    Katzen served in the same capacity for local developer SB-Urban prior to joining UIPAM. In his new role, he will oversee UIP’s development and redevelopment portfolio.

    Perdomo joins the firm from AECOM, where he served as assistant project manager. He also spent time as a project engineer with Clark Construction Group.

    Bilfinger GVA Appoints New UK Advisory Board Chairman

    By Chris Borland


    GPE Adds Brown as AVP in PHX

    By Justin Sumner

    Gail Brown, JD has joined GPE Commercial Advisors as an associate vice president.

    Based in the firm’s Phoenix, AZ office, Brown will continue to specialize in office, flex and industrial sales and leasing, land acquisition, investment sales, and tenant representation.

    Brown brings more than 30 years of real estate investment experience, including roles as a commercial real estate salesperson with KW Commercial, practicing law, and owning a commercial contracting company.


    Hornaday Joins Knutson Construction Svcs

    By Samantha Henry

    Lance Hornaday has joined Knutson Construction as the general manager for the firm’s Minneapolis, MN division.

    Hornaday will handle all the components of the Minneapolis office, including operations and client relationships.

    Hornaday was previously the project executive for Chicago’s W.E. O’Neill Construction Company, and has more than 25 years of experience working within the construction industry. He has a special interest in historic preservation, and recently served as chairman on the Chicago Old Town Historic District.


    Peadon Joins Divaris Real Estate

    By Darrel Crawford

    Divaris Real Estate has recruited Jessica Peadon as a broker in its Charlotte, NC office. In her new role, Peadon will serve as both a landlord and tenant representative for Divaris while handling some site selection work across the state.

    The commercial real estate veteran brings 16 years of industry experience as she relocates from the NC Triad region.

    Peadon was most recently Linville Team Partners in Winston Salem. She began her career handling leasing and property management responsibilities for Collett Associates before filling similar roles at Glimcher, Glenwood Development, Kimco Realty Corp., and Developers Diversified Realty.

    Send your new executive hires and promotion announcements to news@costar.com. 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-Oct-2/175930?ref=/News/Article/CoStars-People-of-Note-Oct-2/175930&src=rss

    MBS RECAP: Volatile Bond Markets Following NFP’s "Big Miss"

    Bond markets experienced a quintessentially volatile reaction to a classic example of a “big miss” in the NFP data.  As we’ve discussed several times already today, there was nothing positive about the data.  In fact, my initial assessment this morning was that “The normal silver linings that econo-bulls normally rely upon to make their counterarguments on TV are all completely absent.”

    The reasons for this were simple.  The normal “yeah buts” are as follows.

    • The headline NFP was weak… yeah but the unemployment rate dropped! (it didn’t drop)
    • The unemployment rate didn’t drop… yeah but labor force participation increased! (it actually decreased)
    • Unemployment didn’t drop, the participation rate increased, payrolls shrank… yeah but at least people are working more hours and making more money!  (nope, no they aren’t… Hours and Wages both fell and both missed expectations).
    • Ok ok ok.. NFP was weak… yeah but Private Payrolls were stronger!  (No, no they weren’t.  They actually fell more than NFP).

    ​For all these reasons, the first move of the day was a no-brainer.  Bonds surged to their best levels in more than 5 months.  But then–as bond markets are reasonably fond of doing on NFP Friday afternoons–the paradoxical knee jerk ensued.  More than half the gains evaporated by 2pm.  

    All I can say is this…

    ​Look at the day as a whole, and in the bigger picture.  Keep in mind that we’ve BEEN rallying into this NFP release and several of those rally days looked to be losing steam recently.  If you weren’t aware of this morning’s rally levels, the end-of-day levels not only don’t look so bad, they’re arguably very much in line with where we should be.  We’ll really have to wait and see how this plays out next week before freaking out too much.  I will say that the double bounce at 1.905 is a bit ominous.  ​We’ll discuss the technical implications next week.

    Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/516570.aspx

    Manhattan Apartment Prices Slip

    Manhattan apartment prices drifted slightly lower in the third quarter from peak levels set earlier in the year amid signs of a slowdown in deal-making over the summer.

    Brokers and analysts attribute the decline in part to uncertainty about the world economy, especially after a volatile August in U.S. and Chinese financial markets.


    Article source: http://www.wsj.com/articles/manhattan-apartment-prices-slip-1443487820?mod=residential_real_estate

    Macerich Sells Stake In Eight U.S. Shopping Centers to GIC, Heitman

    The Macerich Co. agreed to sell minority stakes in eight U.S. shopping centers to Singapore-based sovereign wealth fund GIC Real Estate and investment firm Heitman for a total of $2.3 billion.

    Analysts and investors continue to demand increased value and Macerich continues to raise cash six months after it spurned a $17 billion takeover offer by Simon Property Group. In the joint venture transactions expected to close in phases starting in October and concluding in the first quarter of 2016, GIC will obtain a 40% interest in five retail properties while Heitman will have a 49% interest in three assets.

    The properties in which GIC will receive in interest in include Arrowhead Towne Center, Glendale, AZ; Lakewood Center, Lakewood, CA; Los Cerritos Center, Cerritos, CA; South Plains Mall, Lubbock, TX and Washington Square, Portland, OR. Heitman will receive an interest in Deptford Mall, Deptford, NJ; FlatIron Crossing, Broomfield, CO; Twenty Ninth Street, Boulder, CO.

    Macerich will receive an estimated $1.14 billion in proceeds on new financing and refinanced debt on several of the properties. The Santa Monica, CA-based mall operator will use the total proceeds to fund share repurchases under the company’s just announced $1.2 billion share repurchase program, pay down its line of credit balance and pay a special dividend in the range of $3.50 to $4.50 per share.

    “These transactions highlight the significant differential between the private and public markets valuation of our assets,” said Arthur Coppola, chairman and chief executive officer of Macerich, which owns 55 million square feet of interests in 51 regional shopping centers, in a release. “Liquidity from these transactions will be used to bridge that gap.”

    Lee Kok Sun, regional head for Americas of GIC Real Estate, said, the high-quality assets are expected to continue generating steady income streams and are confident of their growth moving forward.

    Eastdil Secured/Wells Fargo acted as exclusive advisor to Macerich.

    Article source: http://www.costar.com/News/Article/Macerich-Sells-Stake-In-Eight-US-Shopping-Centers-to-GIC-Heitman/175886?ref=/News/Article/Macerich-Sells-Stake-In-Eight-US-Shopping-Centers-to-GIC-Heitman/175886&src=rss

    Activist Pressure Prompts Lone Star to Boost Offer for Developer

    Private-equity firm Lone Star Funds has bowed to pressure from an activist hedge fund and raised the price it is paying for Quintain Estates Development PLC, which plans to develop an 85-acre site around London’s Wembley Stadium.

    The new offer of 141 pence a share, worth about £745 million ($1.16 billion), is 10 pence more than the previous bid in July. Shares on Friday were up 7% at 141 pence.

    On Friday, Lone Star…

    Article source: http://www.wsj.com/articles/activist-pressure-makes-lonestar-hike-price-for-quintain-estates-1443193450?mod=residential_real_estate