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Real Estate Roundup 11.2.20

JLL’s NYC HQ (Credit: JNN)

Real Estate Roundup:

National Financing Roundup 

  • Investcorp International Realty + Brennan Investment Group have secured $55.8 million in acquisition debt from Canadian Imperial Bank of Commerce (CIBC) for its purchase of the Regent O’Hare Industrial Portfolio, an eight-property bundle of industrial assets located in Elk Grove Village, Ill. The duo had been seeking a five-year, floating-rate loan totaling just over $58 million to fund the purchase — at a 65 percent loan-to-cost. The portfolio comprises nearly 955,500 SF, and is 92 percent occupied by a collection of 57 tenants. (CO)

National Acquisitions Roundup

  • Shorenstein Company has sold 1301/1317 Connecticut Avenue, a three-story, 66,000-square-foot office and retail building in Washington, D.C.’s Central Business District to an undisclosed buyer for $32.5 million. (CO)
  • PGIM Real Estate’s U.S. core fund bought a 2.2 million-square-foot industrial portfolio for $275 million from Bridge Development Partners. The newly built properties are in the Phillipsburg and Lopatcong areas of New Jersey near the Interstate 78 highway to New York City. (Bloomberg)

Manhattan Luxury Real Estate Update 

  • Sixteen contracts were signed for the week of October 19-25 at $4 million and above, two more than the previous week and the week before that. (TRD+Olshan)

Retail leasing  

  • Cajun seafood chain Hook & Reel signed a 15-year lease for 5,656 SF on the ground floor of Feil Organization’s Concourse Plaza at 214 East 161st Street in the Bronx. (CO)

New to the market 

  • Boeing announced it is exploring its options for selling as much of 30% of its real estate around the country. The company’s 855,000-square-foot headquarters in Renton, Washington is among the properties that could end up on the market. The company listed some Southern California properties earlier this year. (PSBJ)

Earnings 

  • Columbia Property Trust reported that its portfolio is 96.3% leased, with total rent collections at 97.6% for the third quarter and deferral agreements executed on another 1.5%. Columbia operates 7.1 million rentable square feet, mostly in New York, San Francisco, and Washington D.C. (BusinessWire+TRD)

Co-working 

  • Knotel cut around 20 people in its North American office, or nearly 10 percent of its 250-employee workforce. In April, Knotel announced plans to walk away from about 20 percent of its 5 million-square-foot portfolio (BI+CO)

Brokerage news 

  • JLL and CBRE recently made layoffs and budget cuts to trim costs as revenues from business lines such as office leasing and property sales continue to dwindle. The exact number of affected positions at JLL was unclear, but one source told TRD it was about 10 percent of the workforce. Worldwide, JLL employed around 93,000 people in 2019… CBRE announced a round of late-September cutbacks on its third-quarter earnings call Thursday afternoon. The company incurred costs for lease terminations and employee severances. (TRD)

Other news 

  • Outdoor shopping centers, or strip malls, and outlets made up of individual manufacturer stores have been outpacing enclosed malls in their recovery. Morningstar noted, “In March and April, there was a major sell off across the board. Malls took a bigger hit to their share price, a decline of 60 to 70 percent, whereas shopping centers took a 40 to 50 percent hit.” RPT Realty, which owns and operates nearly 50 open air shopping centers across the country, had collected 86 percent of its rent from tenants, as of September, while deferrals made up just 7 percent of the total (TRD)
  • International real estate market shows signs of life: Singapore has established itself as a hub for real estate investment trusts over the past two decades. Now, following the initial blow from the Covid-19 outbreak, its REITs are slowly coming back to the market with a mission: resume their global expansion. Gordon Tang and his wife Celine, who have one of the biggest REIT stakes in Singapore, are among those leading the charge. Lippo Malls Indonesia Retail Trust and IREIT Global, in which Chinese tycoon Tong Jinquan owns stakes of more than 4.8%, are raising money to fund acquisitions in Indonesia and Spain. Keppel REIT and Ascendas REIT both bought office properties in Australia in September. Mapletree Logistics Trust is among those that have recently restarted their overseas push. It’s spending S$1.09 billion for real estate in China, Malaysia, and Vietnam. (Bloomberg)

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