Commercial Real Estate Finance

Posts Tagged ‘Philadelphia’

Week in Review for May 11 – 17:

- CoStar Group releases a list of 25 REITs “Most Likely to Sell You a Property in 2013.” The list includes many well-known public REITs, and just about every major asset class is represented, including multifamily and healthcare properties.

- Post Brothers, an up-and-coming multifamily developer in Philadelphia, begins listing apartments for its latest development, a conversion of a former industrial property on the outskirts of Center City.

- In developing this property, Post Brothers had a tense stand-off with the city’s labor unions in response to their use of non-union workers.

- JW Pepper & Son acquires a 43,000 -SF office building in the Stone Ridge Corporate Center in Exton, PA, a suburb of Philadelphia. They acquired the property for $5.1 million ($118/SF), reports CoStar.

- In Los Angeles, Hines REIT sells the One Wilshire building, an office and retail property, to GI Partners for $437.5 million, as well as one other property for $112.5 million.  Read the rest of this entry »

Thanks in part to Hollywood, developers have a reputation as the “bad guys”–the greedy corporate bulldozers whose plans always run counter to the will of the community and woodland sprites. This certainly isn’t the case in many locales. Here in Philadelphia, long-abandoned row homes, overgrown lots, and industrial facilities are being converted to town homes and multifamily properties–and I’m yet to hear anyone complain (except maybe a few union members not hired for the project). Often, developers–whether it’s just a couple local guys or a major firm like Trammel Crow or Toll Brothers (NYSE: TOL)–receive resounding approval from community members who appreciate the economic growth that comes with new projects.

Sometimes, however, new residential and commercial projects, no matter how feasible from a market perspective, meet vocal resistance from members of the community. And the fear of losing green space and a nice view is only one of the many reasons residents will fight a proposed development or commercial tenant. Here are a few other businesses and commercial projects that have struggled with public opposition:     Read the rest of this entry »

Rina Cutler, Philadelphia’s Deputy Mayor of Transportation and Utilities, discusses the growth of the city’s real estate market, resurgent neighborhoods, and the latest innovations in urban planning. (This is Part I of Llenrock’s latest video interview.)

Read the rest of this entry »

Week in Review for May 4 – 10:

• As the Pennsylvania Gaming Control Board deliberates over which proposed casino will receive Philadelphia’s second casino license, community groups from South Philadelphia protest the three casinos planned for their neighborhood. Two other casinos have been proposed for Center City and one other for Philadelphia’s Fishtown neighborhood. Meanwhile, representatives of Sugar House, currently the only casino in the city, voice concern that a second casino would harm their business. 

• Last year, Pennsylvania overtook New Jersey as the state with the second-highest annual gaming revenue in the country (after Nevada).

• PERE News reports that private equity groups such as Blackstone (NYSE: BX), Carlyle Group (NASDAQ: CG), and KKR (NYSE: KKR) are becoming increasingly dominant CRE investors in Asia, overshadowing investment banks in the region.

• A joint venture begins renovation of a historic high-rise at 16th and Walnut Streets in Philadelphia. Federal Capital Partners, Cross Properties and Alterra Property Group have announced they will convert the building into a luxury residential property to be called “ICON,” reports CoStar Group. The building dates back to 1929. Developers anticipate occupancy will begin in early 2014.

• Also in Philadelphia, the Cradle of Liberty Council of Boy Scouts of America prepares to vacate its regional headquarters, which is located on city-owned land. The city has worked to evict the organization since 2008 because of the Boy Scouts’ anti-gay stance. The building is valued at $1.1 million, reports Curbed Philly. Read the rest of this entry »

Mensch 

Noun, informal. A decent, upright, mature and responsible person. 

Schlemiel 

Noun, slang. An awkward, clumsy, or unlucky person whose endeavors tend to fail; a loser.

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Mensch of the Week:

Marla Thalheimer, Director of Sustainability

Liberty Property Trust 

I’m a little late, as usual, but I want to tie this in with Earth Day. Even though this occasion has been around for decades, it’s agenda is becoming increasingly relevant, and increasingly viable, in the business world. Today, Earth Day isn’t simply about third-graders planting trees and elaborate Google Doodles. Today, both customers and businesses are more conscious of energy consumption, carbon output, and so on. Even Walgreens has gotten in on the act.

In the commercial real estate industry, one company at the forefront of sustainable development is office/industrial REIT Liberty Property Trust (NYSE: LRY). Over the years, the Pennsylvania-based company has been recognized as a leader in green development by organizations such as the EPA (Energy Star), NAIOP, USGBC, and NAREIT. Marla Thalheimer, Liberty’s Director of Sustainability, is crucial to the REIT’s leadership in this area. Read the rest of this entry »

The writers of the Simpsons are running out of ideas. This famous family has visited New York, Brazil, China, San Francisco, alternate dimensions, and the future. Now, they’re running out of places to visit. On one episode, after the Simpsons have been kicked out of Florida, they struggle to find a U.S. state that hasn’t yet banned them. Their last resort?

Delaware.

“I want to visit Wilmington!” Lisa exclaims.

Thus, the great state of Delaware and one of its largest cities are reduced to a punchline on an episode of the Simpsons.

To be honest, being made fun of by the Simpsons has become something of an honor. Still, this highlights the “second-class city” image some metropolises face–especially when they’re close to a much larger city (just ask Newark).  Though they are smaller, and offer smaller-scale economic drivers, such small- to medium-sized cities deserve a closer look, both from CRE investors and businesses looking to expand.

Last month, I discussed Baltimore, Maryland in a similar context. Baltimore offers a great deal of potential, more affordable CRE, and a large workforce. Unfortunately, CRE developers often pass over Baltimore for other larger cities. The same holds true, to a great extent, for Wilmington (granted, it’s a fraction of Baltimore’s size). Read the rest of this entry »

As college students approach the end of their school year, let’s take a look at CRE’s role in higher education by exploring student housing.

Here, Jim Smith of Campus Apartments talks to Llenrock Group’s Andrew Benioff. They discuss growing competition and other conditions in this unique sector. (This is Part I of our interview. Check back next week for the conclusion!)

Read the rest of this entry »

 Week in Review for April 6 – 12:

- In Philadelphia, the Pennsylvania Gaming Control Board holds a hearing regarding a potential new casino for the city. The board hears testimony from developers, residents, architects, and union members. A number of different designs, brands, and locations have been proposed for the city’s second casino.

- Also in Philadelphia, co-developers PMC Property Group and Lubert Adler mull the sale of an in-progress multifamily development at 2040 Market Street, reports BizJournal’s Natalie Kostelni. The property, formerly an underperforming office building, is still under construction, but many suggest its prime location will fetch a record price even before its completion.

- CoStar group reports that some are concerned the CRE lending market is heating up too quickly. The article’s author, Mark Heschmeyer, describes a trend of relaxed lending standards that has emerged in the last couple of years. This discussion follows a recent Morgan Stanley (NYSE: MS)/Bank of America (NYSE: BAC) CMBS offering. The conduit’s loan-to-value (LTV) is rated as 98.8%, significantly higher than other recent offerings.

- In Flint and Genesee County, Michigan, RACER Trust struggles to repurpose and sell large plots of land formerly used by General Motors. RACER Trust was formed to divest some of GM’s industrial properties following the car maker’s bankruptcy.  Read the rest of this entry »

Following up on Wednesday’s Top 10 of Markets for New Retail Product, here’s a ranking of major retail markets according to their current recorded inventory. As before, this list is based on data from CoStar Group and Colliers’ 2013 Retail Outlook (click for the PDF). Here are the 10 Largest Retail Real Estate Markets in the U.S.:

10. Boston, MA (Reported inventory: 87,564,315 SF)

9. Tampa/St. Petersburg, FL (87,575,353)

8. New Jersey – Northern (92,198,983)

7. Phoenix, AZ (104,240,834)

6. Houston, TX (140,973,923) Read the rest of this entry »

Week in Review for March 23 – 29:

- CoStar Group reports increased optimism toward distressed CRE assets in 2013. As many bank-owned assets approach market value, some analysts advise caution and a focus on higher-quality assets with a significant number of tenants.

- The Commerce Department announces strong consumer spending growth in February, signalling rising incomes and a recovering job market. Home sales increased by 0.7% in this period and major retailers such as Macy’s (NYSE: M), Pottery Barn, and Williams-Sonoma (NYSE: WSM) also reported an uptick in sales.

- In Manhattan, SL Green Realty (NYSE SLG) obtains $925 million in financing for the Sony Building at 550 Madison Avenue. The building was recently acquired for $1.1 billion by a consortium of buyers led by the Chetrit Group.

- In Philadelphia, Stockton Real Estate Advisors takes over leasing duties for Penn Mutual Towers, an under-performing office complex overlooking the city’s famous Independence Mall. The property is currently in receivership, but Stockton plans to upgrade and lease up the three-building property in preparation for eventual sale.

- BioMed Realty Trust (NYSE: BMR), a REIT specializing in properties serving the life sciences industry, acquires a subsidiary of Wexford Equities for $640 million. The acquisition will add an 11-property, 1.6 million SF portfolio to the REIT’s holdings. Read the rest of this entry »