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Moinian Group Nabs $118M Square Mile, Bank of the Ozarks Loan for Dallas Office Tower

Square Mile Capital Management has provided a $118 million loan to The Moinian Group and SMA Equities for Renaissance Tower—a 1.7-million-square-foot office building in Downtown Dallas.

Square Mile brought in Bank of the Ozarks to take a senior portion of the loan, which will be used to repay an existing CMBS loan on the property and bridge the asset through stabilization.

HFF’s Whitaker Johnson and Steve Heldenfels arranged the financing on the dazzling tower, outside shots of which depicted the fictional home of Ewing Oil in the 1980s television series Dallas.

SMA Equities and The Moinian Group have owned the building since 2006. The previous loan was securitized in the Wachovia Bank-sponsored WBCMT 2006-C29 CMBS deal and split into a $64.5 million A-note and a $64.5 million B-note.

One of the tallest buildings in Downtown Dallas, Renaissance Tower sits in Dallas’ Central Business District. Its tenants include Hilltop Securities, Neiman Marcus Group, Dallas County and EY.

The Environmental Protection Agency also recently signed a 20-year lease for 229,000 square feet at the property, and the tenant is scheduled to move in December 2018. 

“We are excited to establish a lending relationship with SMA Equities and The Moinian Group on this transaction,” Square Mile Principal Matthew Drummond said in prepared remarks. “As Downtown Dallas continues to benefit from additional redevelopment and as evidenced by the recent signing of the EPA lease, Renaissance Tower is well positioned as a cost-effective alternative to other high-quality office buildings located in submarkets such as Uptown and Plano.”

“We received extremely competitive financing packages from multiple sources but ultimately closed with Bank of the Ozarks and Square Mile,” a spokeswoman for The Moinian Group told CO. “The terms gave us the flexibility we required to complete lease up of our Class-A office tower.”

Source: commercial


Newmark Goes Public with Offering on Nasdaq

Global brokerage BGC Partners listed its subsidiary real estate brokerage and advisory firm Newmark Group as a publicly traded entity today with an initial public offering.

BGC Partners Chairman and Chief Executive Officer Howard Lutnick (who is also chairman of Newmark) and Newmark CEO Barry Gosin rang the opening bell at the Nasdaq in Times Square, where Newmark is listed under “NMRK.”

“This is a pivotal moment for us. I look forward to the future,” Gosin, who has been CEO of Newark since 1979, said at the IPO. “I couldn’t be more excited about where we are going. I certainly know where we came from, which we’ll never forget. But where we are going is incredibly exciting.” 

Newmark is offering 20 million shares with an offering price of $14 per share. The company filed public documents Thursday that showed it previously was expecting $19 to $22 per share. Also, it was expected to offer 30 million shares.

The IPO is expected to close on or about Dec. 19, according to a BCG Partners release. At closing, BGC anticipates it will own about 85.3 percent of the shares of Newmark’s Class A stocks. BGC will hold all Class B stocks, giving the company approximately 93.2 percent of the total voting power for Newmark.

Goldman Sachs & Co., Bank of America Merrill Lynch, Citigroup and Cantor Fitzgerald & Co. are bookrunners for the public offering.

Newmark includes Newmark Knight Frank and mortgage lender Berkeley Point Capital. (BGC Partners picked up Berkeley Point, a 30-year-old company, in September for $875 million.)

The family firm began as Newmark & Co. in 1929. In 2005, it formed a partnership with London-based Knight Frank, thereafter becoming Newmark Knight Frank.

BGC acquired Newmark Knight Frank for an undisclosed amount in 2011. The following year, the company acquired brokerage Grubb & Ellis, and merged to become Newmark Grubb Knight Frank. (Earlier this year, it dropped “Grubb” from its name in a run up to become a public company, and Jeff Gural stepped down as chairman.)

Currently, Newmark has more than 4,600 employees and independent contractors in more than 120 offices and 90 cities in the United States, according to its latest public filings. The company also disclosed it had revenues of $1.3 billion in 2016 and through the end of the first nine months of 2017 the company had $1.1 billion in revenue.

“Our numbers will be clear. Our profits will be crystal clear. The comparisons will be clear. And no longer will Newmark ever be part of the small scrappy crowd fighting to get up to the top,” Lutnick said. “It will be crystal clear to everybody starting today and for every quarter going forward that Newmark is not only amongst the best, but is the fastest growing, is the most capable, has the most interesting things to say at every pitch. And they will know why you win.”

Source: commercial


“Broad City” star Abbi Jacobson picks up $1.6M LA pad

From TRD LA:  Yas, Queen! “Broad City” star and co-creator Abbi Jacobson has shelled out $1.59 million for a restored mid-century home in Silver Lake. The two-story hillside abode includes just over 2,000 square feet and features three bedrooms, two bathrooms, an office and a three-car garage atop a steep driveway, Variety reported. The interior is decked out with modern furnishings, a living room fireplace and a modernized kitchen.Wall-to-wall windows in the living room and […]

Source: realdeal


Meridian Arranges $68M Bridge Financing for LA Office Building

Southern California-based J.H. Snyder Company has sealed a $68 million bridge loan from refinance its debt on a recently built North Hollywood, Calif. office building, Commercial Observer can exclusively report.

Minnetonka, Minn.-based Pine River Capital Management provided the three-year, interest-only loan, sources close to the transaction told CO. Officials at the alternative investment firm did not immediately respond to a request for comment.

Meridian Capital Group negotiated the financing on behalf of the owner. The brokerage declined to name or confirm the lender on the deal.

The nine-story, 179,000-square-foot building, at 5250 Lankershim Blvd., went up in 2011 and is fully occupied, according to J.H. Snyder. Tenants include a Kaiser Permanente medical clinic, a co-working space managed by Regus and the Art Institute of California, a non-profit university that offers degrees in design and media production.

“This property has maintained 100 percent occupancy for years, despite coming to market during the peak of the recession,” Mike Wise, a senior partner at J.H. Snyder, said in a statement. “In addition to our long-standing tenant and leasing relationships, that performance also highlights the strength and improvement of the [North Hollywood] submarket over the last decade.”

The Los Angeles basin’s decentralized geography spreads the region’s office tenants over a wide breadth of neighborhoods, from Downtown Los Angeles in the north-center of the basin to Beverly Hills and Santa Monica to the west. The refinanced office building, north of the Hollywood Hills in the San Fernando Valley, has performed well because of its transportation access, according to its owner.

“The building is in a good location on a main thoroughfare,” Jerome Snyder, the founder of J.H. Snyder, told CO. “It’s right next to the subway that goes downtown.”

The Los Angeles Metro’s Red Line stops a block and a half north of the Lankershim building, making it a popular transit option for the Art Institute’s students especially, Snyder said.

Los Angeles being Los Angeles, the building also features a 6-story parking garage with more than 700 spaces.

Even given the building’s strong occupancy numbers, leasing considerations presented a challenge in the refinancing, according to Meridian officials.”Although there is no current vacancy, the majority of the tenants roll over [in] the next several years,” Seth Grossman, a Meridian managing director, said in prepared remarks. “It was critical to tailor a loan with ample structure to prepare for that role, while simultaneously maintaining maximum flexibility to allow our client to operate the property on their terms.”

Source: commercial


ACORE Provides $132M Construction Loan for Cali Student Housing Property

ACORE Capital has closed a $131.7 first mortgage for the ground-up construction of The Graduate—a 19-story student housing building in San Jose, Calif., Commercial Observer can first report.

The loan, which has a 60-month term and closed on Dec. 8, was made to AMCAL Swenson, a joint venture of San Jose-based development firm Swenson and Los Angeles-based residential developer AMCAL Equities. The financing was arranged by Alison Company.

The Class-A, L-shaped property at 90 East San Carlos Street will sit on a 1.45-acre site located one block from the main entrance to San Jose State University. In addition to housing 1,039 students across 260 furnished apartments in its top 17 floors, the building will include 14,750 square feet of retail space, a four-level parking garage, an amenity deck and a pool.

The Graduate is located between the San Jose State University campus and San Jose’s SoFA District—the principal arts and entertainment area, stretching along South First Street between San Carlos and Reed Streets.

“The Graduate will serve as a significant bridge between campus and the SoFA District as well as the surrounding urban amenities of downtown,” Case Swenson, the president of Swenson, said in an announcement at the time of the project’s groundbreaking in October. Its construction is expected to be completed in 2020.

It’s been a busy year for ACORE Capital with the nonbank lender closing deals from coast to coast. In September, it closed a $63 million loan to Dr. Kiran Patel for the acquisition and renovation of Cheyenne Mountain Resort in Colorado Springs, Colo., as well as a $73.4 million financing for the redevelopment of 163 Varick Street in New York City. A month earlier, it provided a $121 million loan—which included a senior loan and a mezzanine portion—to developer Sterling Bay for its purchase of a vacant building in Chicago’s West Loop area.

AMCAL and ACORE officials weren’t available for comment by press time.

Source: commercial


The 7 biggest retail bankruptcies of 2017

In 2017, more than 30 name-brand retailers have filed for bankruptcy, some for good, some in an effort to save themselves, including Payless Shoe Source, RadioShack and Toys “R” Us. Many others avoided bankruptcy but closed hundreds of stores nationwide. Three big department stores, Sears, Macy’s and JCPenney, closed over 500 locations in total, affecting the malls and retail corridors across the country. When retailers go down, they leave billions in CMBS debt exposed. In […]

Source: realdeal


TRD South Florida’s winter issue is live!

No one’s saying things are looking 100 percent dire in South Florida, but with a continued slowdown in several sectors, the industry is dealing with a few less-than-promising conditions in today’s market. And that’s having a trickle-down effect. Our cover story investigates just how much bacon real estate pros are bringing home across a dozen different job categories. TRD found that while some are doing just fine amid the slump, there is a large segment — brokers in […]

Source: realdeal


Clothing manufacturer inks 11-year lease at 1407 Broadway

Clothing manufacturer ES Sutton is moving across the street from its current digs in the Garment District to Shorenstein Properties’ 1407 Broadway. The company inked an 11-year lease for part of the sixth floor of the 43-story building, the Commercial Observer reported. The asking rent was $60 per square foot, according to CBRE, which represented the landlord. ES Sutton, which currently occupies 40,000 square feet at 1400 Broadway, makes clothing under the brands Liz Lange […]

Source: realdeal


Disney/Fox deal could lead to real estate shakeup in NYC

The Walt Disney Company’s $52.4 billion deal to buy most of 21st Century Fox could have big implications for the companies’ real estate in New York City, sources said. The Los Angeles-based Disney owns ABC, which is headquartered on an Upper West Side campus centered around West 66th Street that the company moved into in the 1980s. When Disney acquired ABC in 1995 for $19 billion, rumors started to circulate that the West Coast company […]

Source: realdeal


Complex Expands With a Move to Part of Yahoo’s Office in Times Square

Complex Networks, the umbrella company that includes Complex and its sub-brands like First We Feast and Pigeons and Planes, is moving to the old New York Times Building.

The hip-hop-influenced media company subleased 80,000 square feet from Yahoo at Columbia Property Trust’s 229 West 43rd Street between Seventh and Eighth Avenues, Crain’s New York Business reported. Complex plans to leave its longtime, 64,000-square-foot office space at 1271 Avenue of the Americas between West 50th and West 51st Streets and take over the Yahoo space next week. Yahoo occupies 193,000 square feet in the historic, 482,000-square-foot property.

Rich Antoniello, Complex’s chief executive officer, told Crain’s that Yahoo’s offices appeal to the company because the space features four video production studios. Complex, like many media outlets, is focusing heavily on expanding its short-form videos, and it recently partnered with cable music channel Fuse. Over the past year, it has grown its slate of programs to 33 daily and weekly shows, focused largely on talk shows and reality shows.

Not surprisingly, Yahoo and Complex are both owned by Verizon. The telecom giant acquired Yahoo over the summer and purchased Complex a year ago in a joint venture with Hearst Communications.

Spokespeople for Yahoo and Complex didn’t respond to requests for comment, and the terms of the deal were not disclosed.

Source: commercial