Tag Archives: finishes

CRE Capital Markets RoundUp: VICI Properties Finishes $1.6 Billion Refi of Caesars Palace

News and Offers of Ashford Trust, CalPERS, CalSTRS, Canyon Partners, Donahue Schriber, Global Internet Lease, JPMorgan, NYSTRS, RCLCO, RXR, SLGreen, and more

Newly developed REIT VICI Properties Inc., formed out of the bankruptcy restructuring of Caesar’s Home entertainment, has actually finished a $1.6 billion refinancing of its flagship property – Caesars Palace in Las Vegas.

JPMorgan Chase, Morgan Stanley, Goldman Sachs & & Co. and Barclays Bank were the lending institutions. The loan carries a fixed interest of 4.36% and has actually been folded into a new CMBS offering (Caesars Palace Las Vegas Trust 2017-VICI.)

VICI gathers a yearly base rent of $165 million over the preliminary seven years of the Caesar’s lease term. Net cash flow for the home is estimated to $231.5 million, according to Kroll Bond Ranking Firm (KBRA), which ranked the CMBS offering.

MBA Projections Raised Commercial/Multifamily Originations from 2017 to Continue in 2018

The Home Mortgage Bankers Assn. (MBA) jobs industrial and multifamily mortgage originations will end the year at $515 billion, up 5% from the 2016 volumes, and it expects volumes to stay at roughly that level in 2018.

MBA forecasts mortgage originations of multifamily mortgages alone to be $235 billion in 2017, with overall multifamily financing at $271 billion. After strong development in 2017, multifamily loaning is expected to moderate somewhat in 2018, according to the MBA.

“Business and multifamily markets remain strong, even as lots of growth measures are showing a bit of a downshift,” stated Jamie Woodwell, MBA’s vice president of commercial real estate research. “Property worths are up 6% through the first 8 months of this year. Despite a decline in home sales transactions, commercial and multifamily home loan originations were 15% higher throughout the very first half of this year than a year previously. We expect stable residential or commercial property markets and strong capital accessibility to continue to support home loan borrowing and loaning in 2018.”

Commercial/multifamily home loan debt exceptional is anticipated to continue to grow in 2017, ending the year approximately 6% higher than at the end of 2016.

CMBS Financing Completed for SL Green, RXR’s Worldwide Plaza Purchase

Goldman Sachs Home Mortgage Co. and German American Capital Corp. completed a $705 million CMBS offering backing SL Green and RXR’s purchase of a combined 48.7% interest in One Worldwide Plaza at 825 Eighth Ave. in Midtown Manhattan. New York City REIT, the seller, kept controlling interest in the property.

Worldwide Plaza Trust 2017-WWP is backed by the customer’s interest in the 1.8 million-square-foot, 47-story Class An office building. The property is 98.4% rented and has actually functioned as the headquarters for the law practice Cravath Swaine & & Moore given that 1997 and as the North American head office for Nomura Holdings given that 2012, according to S&P Global Ratings, which rated the offering.

Its present base rent for workplace occupants is $65.60 per square foot as determined by S&P Global Scores. In comparison, its West Side office submarket has a Class A workplace vacancy rate of 7.7%, and gross asking rent was $82.28 per square foot since second-quarter 2017.

The home loan is steeply leveraged with a 91.5% loan-to-value (LTV) ratio, based on S&P’s appraisal. The LTV ratio based on the appraiser’s valuation is 54%. S&P’s estimate of long-term sustainable value is 41.1% lower than the appraiser’s evaluation. The mortgage is interest just for its entire 10-year term.

In addition to the first home loan debt, there is additional financial obligation through 3 mezzanine loans totaling $260 million.

Ashford Trust Finishes Refinancing of 17-Hotel Portfolio

Ashford Hospitality Trust Inc. (NYSE: AHT )re-financed a mortgage loan with an existing outstanding balance totaling $413 million that had came due in December 2021. The new loan totals $427 million and is anticipated to lead to annual interest cost savings of $9.8 million.

The loan is secured by seventeen hotels: Courtyard Alpharetta, Yard Bloomington, Courtyard Crystal City, Courtyard Foothill Cattle Ranch, Embassy Suites Austin, Embassy Suites Dallas, Embassy Suites Houston, Embassy Suites Las Vegas, Embassy Suites Palm Beach, Hampton Inn Evansville, Hilton Garden Inn Jacksonville, Hilton Nassau Bay, Hilton St. Petersburg, Home Inn Evansville, Home Inn Falls Church, House Inn San Diego and Sheraton Indianapolis.

“The early execution of this refinancing offered us with an appealing opportunity to resolve a future maturity in addition to accomplish substantial savings in annual interest payments,” said Douglas A. Kessler, Ashford Trust’s president and CEO. “When integrated with our other refinancings and chosen redemptions finished this year, we anticipate to understand yearly savings of approximately $13.7 million.”

CalPERS Broadens Relationship with Canyon Partners Property

The California Public Worker’ Retirement System (CalPERS) has designated $350 million of new capital to Canyon Partners Real Estate’s Canyon Catalyst Fund (CCF) through its realty emerging supervisor program.

CCF presently invests in workplace, retail, commercial, multifamily and mixed-use jobs in city markets across California, with investments in 27 assets throughout the state. While remaining committed to purchasing California, CCF plans to expand its geographical focus to include the Phoenix, Seattle and Portland city locations, and also prepares to purchase the self-storage and student housing sectors.

CalPERS has partnered with five emerging supervisors consisting of Rubicon Point Partners, which, under the instructions of Ani Vartanian, has actually invested over $170 million in six office transactions in the San Francisco Bay location’s tech corridor. The other 4 financial investment supervisors dealing with CalPERS are Pacshore Partners, a Southern California-focused imaginative workplace owner-operator; Paragon Commercial Group, which specializes in neighborhood-serving retail; Sack Properties, a statewide multi-family manager; and most recently, BKM Capital Partners, which targets multi-tenant commercial financial investments.

CalSTRS Selects RCLCO as Investment Committee Real Estate Consultant

The California State Educators’ Retirement System Investment Committee has selected RCLCO as the committee’s new property expert. The existing agreement, held by the Townsend Group, ends in February 2018. The Townsend Group has served the financial investment committee for the previous 9 years.

“Keeping the services of specialized specialists, like RCLCO, is not only a board policy requirement, however is substantial to the efficiency of our fiduciary duties,” said investment committee chair Harry Keiley. “During the interview procedure, RCLCO satisfied upon us that they add perspectives from operators in the market, which will integrate fresh insights to future tactical and policy conversations.”

RCLCO will work for the Educators’ Retirement Board’s investment committee and with CalSTRS investment personnel to monitor and comment on the real estate portfolio efficiency and policy matters. However, they are particularly left out from recommending any private investment opportunity.

JPMorgan and NYSTRS Devote $200 Million to Donahue Schriber

Donahue Schriber Realty Group (DSRG), a privately-held REIT that owns grocery-anchored shopping centers, has actually gotten a $200 million equity investment from institutional financiers advised by J.P. Morgan Asset Management and from New York City State Educators’ Retirement System (NYSTRS). Each have offered $100 million in capital.

“We will be utilizing the additional $200 million equity investment to broaden our existing portfolio throughout Coastal California and the Pacific Northwest,” said Patrick S. Donahue, chairman and CEO.

Given that 2011, J.P. Morgan Possession Management-advised financiers and NYSTRS have actually invested an overall of $650 million of growth capital with Donahue Schriber. The privately-held REIT owns and operates over $3 billion in retail shopping center possessions.

Sabal Closes Little Balance Multifamily Financial Obligation Fund

Sabal Investment Advisors LLC held a last close of its very first private capital car, the SIA Financial Obligation Opportunities Fund with overall commitments of $200 million surpassing its preliminary target of $150 million.

Led by Pat Jackson, primary investment strategist, the fund is a medium period private capital car. A core component of the fund will be to buy securitizations created by the Freddie Mac Small Balance Financing program focused solely on multifamily residential or commercial properties that are totally stabilized, senior secured, low LTV, present money streaming loans in between $1 million and $7.5 million.

The fund secured commitments from a number of institutional investors including the University of Michigan’s endowment, AZ Public Safety Worker Retirement System pension, a major Midwest hospital strategy, a Japanese insurer, a RE professional advisor who brought a big southwest public pension plan, as well as a multi-employer ERISA strategy, a Midwest family office and a NY based household workplace and advisory company.

Global Net Lease Performs $187 Million CMBS

International Net Lease Inc. closed on a new commercial mortgage-backed center yielding gross profits of $187 million. The CMBS center carries a fixed interest rate of 4.37% and a 10-year maturity in November 2027, encumbering a pool of 12 U.S.-based possessions.

GNL expects to utilize earnings to pay for $120 million exceptional under its credit facility, for general corporate purposes and preserves versatility to make future acquisitions. The CMBS center extends the business’s weighted typical financial obligation maturity from 3.1 years to 3.9 years, while likewise securing a set interest rate for the next 10 years.

UNLV Includes 2nd Location Engineering Win to Solar Decathlon Tally; Finishes Eighth Overall

UNLV’s Team Las Vegas won second place in the United States Department of Energy Solar Decathlon’s Engineering contest today for their Sinatra Living house, one of six juried contests happening during the 10-day competition. Earlier in the week, the team took top place in the Innovation contest and second location in the Architecture contest. Overall, UNLV put 8th out of an overall of 11 national and worldwide groups who competed.

The Solar Decathlon competitors challenges collegiate teams to design and build full-size, solar-powered houses that integrate market potential and design excellence with wise energy production and maximum efficiency. Groups begin the planning process two years ahead of time, build and check their styles in their own cities, and after that transportation and restore them at the competition website. This year the competition was kept in Denver, and included the first snow ever experienced during a Solar Decathlon Competition– earning this competition the nickname of Snowlar Decathalon.

Initially, 17 teams were chosen to compete in the biennial competitors. Due to the intense nature of the competitors and the time and resources needed, 6 teams dropped out prior to the public competitors began.

“The entire UNLV community is so happy with the devotion, determination, and successes of Group Las Vegas— they embody whatever our university, and our city, represent,” stated UNLV president Len Jessup. “This was really a collective effort and a life time experience that nobody involved will ever forget.”

Over the course of 24 months, more than 60 UNLV trainees from a variety of academic backgrounds including architecture, engineering, health sciences and hospitality, developed, planned and developed the 990-square-foot home. Initially assembled on the Paradise campus of UNLV, the house was then transported by truck to the competitors site in Colorado.

More than 100 individuals and companies made Sinatra Living possible consisting of money fans, in-kind material donors and the job sponsors, Switch and NV Energy Foundation.

In addition to their first and second location wins in Development, Engineering and Architecture, Group Las Vegas took sixth in Market Potential, 5th in Communications, and ninth in Water. Non-juried, determined contests consisted of Health and Comfort, Appliances, Home Life and Energy.

The Swiss Group, that included students and faculty from 4 various universities, took first place in general in the competitors with their house, NeighborHub.

For additional information on the 2017 Solar Decathlon Competitors go to the Website at www.solardecathlon.gov.

TPG-Backed DTZ Finishes $2 Billion Merger With Cushman & & Wakefield

Joe Stettinius, Team of 5 Regional Presidents to Lead Freshly Top quality C&W In Americas

THE NEW RED: Cushman & Wakefield rolled out a new logo following its combination with DTZ.
THE NEW RED: Cushman & & Wakefield presented a brand-new logo design following its mix with DTZ.

DTZ and Cushman & & Wakefield closed their merger early Wednesday, creating among the world’s largest commercial real estate services companies with a combined total of $5 billion in income and 43,000 staff members.

With the deal, Exor MEDSPA, the Agnelli family’s Italian holding business, sold its bulk stake in Cushman & & Wakefield acquired in March 2007 to a financier group led by Fort Worth, TX-private equity company TPG Capital, co-founded by billionaire investor David Bonderman, for $2.04 billion, according to Exor’s statement of the handle Might.

Cushman’s brand-new owners also include PAG, among the largest Asia-based alternative financial investment managers; and the Ontario Educators’ Pension Plan (OTTP), one of Canada’s biggest pension.

Running under the Cushman & & Wakefield brand with a brand-new logo, the combined business– with more than 4.3 billion square feet under management and $191 billion in transaction value– will be headed worldwide by Chairman and CEO Brett White and Global President Tod Lickerman.

The combined firm’s U.S. operations will be led by Joe Stettinius, president, Americas.

The next tier of Cushman management in the Americas, which has actually been the subject of much discussion and speculation in the united state, includes 4 region presidents that report straight to Stettinius. They are Ron Lo Russo, Tri-State Area president/NY City Area market lead; Shawn Mobley, East Area president/North Central and Southeast Region market lead and Chicago market lead; Celina Antunes, South America Region president; and Mike Smith, West Area president/Texas Region market lead.

Area Market Leads consist of Luis Alvarado, Northeast Area and Boston market; Dan Broderick, Southwest Region and San Diego market; Jim Fagan, Connecticut region, Stamford and Westchester markets; Mike Kamm, Northwest Area; Victor Lachica, Mexico Region; Roberta Liss, Mid-Atlantic Area and DC Metro Market and Dean Mueller, South Central Area.

Not listed as one of C&W’s worldwide or regional leaders in the statement is Edward C. Forst, who took over in December 2013 as president and CEO of Cushman and was extensively anticipated to step down when the merger was finished.

The closing comes quickly after the regulatory approval of the deal by the European Commission, which works as the governing body of the European Union, during its Aug. 28 meeting in Brussels, Belgium.

“We have the ideal platform and the right individuals sharing our client-centric culture and a strong desire to boldy grow our company in the Americas,” Stettinius stated in a statement.

“Both heritage companies had actually been aggressively growing their respective platforms and growing their reach into the market with new acquisitions and skill,” said previous CBRE chief executive White, who described the combination as “a game-changing occasion in business realty.”

The latest round of consolidation in the CRE services market began in 2013 when TPG consented to acquire U.S.-based Cassidy Turley and combine it with its formerly acquisition target, DTZ, in a bid to compete as a worldwide CRE services company.

With the merger, Cushman & & Wakefield operates in more than 60 countries all over the world and in every significant worldwide market and service line. C&W’s services include firm leasing, property services, capital markets, international occupier services, facility services, branded as C&W Solutions; financial investment management, branded as DTZ Investors; job and advancement services, occupant representation, and valuation & & advisory.

TPG-Backed DTZ Finishes Merger With Cushman & & Wakefield

Joe Stettinius, Team of Five Regional Presidents to Lead Freshly Top quality C&W In Americas

DTZ and Cushman & & Wakefield closed their merger early Wednesday, producing one of the world’s biggest commercial property services companies with a combined overall of $5 billion in income and 43,000 employees.

With the transaction, Exor HEALTH SPA, the Agnelli household’s Italian holding company, sells its 75 % stake in Cushman acquired in March 2007 to a financier group led by Fort Worth, TX-private equity firm TPG, co-founded by billionaire investor David Bonderman, for $2.04 billion, according to Exor’s statement of the deal in Might.

Cushman’s new owners likewise include PAG, among the largest Asia-based alternative financial investment supervisors; and the Ontario Educators’ Pension Plan (OTTP), among Canada’s largest pension.

Running under the Cushman & & Wakefield brand with a new logo, the combined company– with more than 4.3 billion square feet under management and $191 billion in deal value– will be led in the united state by Joe Stettinius, chief executive, Americas.

The next tier of Cushman leadership in the Americas, which has been the subject of much discussion and speculation in the united state, consists of four region presidents that report directly to Stettinius. They are Ron Lo Russo, Tri-State Region president/NY City Region market lead; Shawn Mobley, East Area president/North Central and Southeast Area market lead and Chicago market lead; Celina Antunes, South America Area president; and Mike Smith, West Region president/Texas Region market lead.

Region Market Leads consist of Luis Alvarado, Northeast Region and Boston market; Dan Broderick, Southwest Area and San Diego market; Jim Fagan, Connecticut region, Stamford and Westchester markets; Mike Kamm, Northwest Area; Victor Lachica, Mexico Region; Roberta Liss, Mid-Atlantic Region and DC Metro Market and Dean Mueller, South Central Region.

The closing comes soon after the regulatory approval of the deal by the European Commission, which serves as the governing body of the European Union, during its Aug. 28 meeting in Brussels, Belgium.

“We have the best platform and the best individuals sharing our client-centric culture and a strong desire to boldy grow our business in the Americas,” Stettinius stated in a statement.

As anticipated, Cushman will be headed globally by Chairman and CEO Brett White and Global President Tod Lickerman.

“Both legacy firms had actually been boldy growing their particular platforms and growing their reach into the marketplace with new acquisitions and skill,” stated former CBRE chief executive White, who explained the combination as “a game-changing event in commercial real estate.”

With the merger, Cushman & & Wakefield runs in more than 60 countries worldwide and in every significant global market and service line. C&W’s services consist of agency leasing, possession services, capital markets, global occupier services, facility services, branded as C&W Solutions; investment management, branded as DTZ Investors; task and advancement services, tenant representation, and valuation & & advisory.

Frisch’s Restaurants Sold, Purchaser Finishes $167 Million Sale/Leaseback

Frisch’s Restaurants Inc. completed a merger with an affiliate of NRD Partners I LP for $174.5 million.

Frisch’s Dining establishments, a 121-unit Cincinnati-based brand that runs 121 Huge Kid restaurants across Ohio, Kentucky and Indiana.

The buyer is an affiliate of NRD Capital Management in Atlanta.

NRD Capital Partners is the first franchisee-sponsored and handled investment fund concentrated on investing in – and accelerating the development of brands.

“This is the ideal transaction for the business,” stated retiring Frisch’s CEO Craig Maier. “Frisch’s has been a family operated company since my grandfather opened our first drive-in in 1939.”

With its very first acquisition full, NRD’s creator and handling partner Aziz Hashim said his team’s focus is now turning towards development of Frisch’s by placing the brand for additional operators to join and speed up new development.

“Throughout the last year, our team extensively examined many possible acquisitions, trying to find an effective brand that had incredible capacity and which could gain from our competence,” Hashim said. “We settled on Frisch’s, because our company believe it is completely placed for development and because its company model is friendly to multi-unit franchisee expansion.”

“Our team is extremely excited about the Frisch’s acquisition. We already have a 2nd acquisition in procedure now, and I have actually been really happy with the reception NRD has had in the M&A market,” Hashim said.

NRD moneyed the merger through a $15 million equity dedication and $167 million in profits from the sale leaseback agreement. The buildings were not recognized.

Frisch’s owned 80 of its restaurants. All the Big Boy dining establishments are freestanding. Older restaurants are usually located in metropolitan or populous suburban areas that deal with regional trade rather than highway travel. A few of these restaurant centers are now more than 40 years old.

A normal dining establishment constructed prior to 2001 includes on 5,600 square feet with seating ability for 156 visitors.

The prototype that was introduced in 2001 has typically included 5,700 square feet with seating for 172 guests.

An adaptation of the 2001 prototype was introduced in 2010 for use in smaller sized trade locations. Its footprint estimates 5,000 square feet and has 148 dining-room seats.

Following the closing of the merger, Frisch’s shares will no longer trade on the NYSE MKT and will be officially delisted next month.

Verizon Finishes $650M Sale Leaseback Offer

Mesirow Real estate Sale-Leaseback, Inc., a department of Chicago-based Mesirow Financial, has acquired the workplace building at 295 N. Maple Ave. in Basking Ridge, NJ for $650.3 million, or about $465 per square foot, from Verizon Communications, Inc.

. Pursuant to the sale, Verizon has rented back the whole structure from the purchaser on a 20-year term. The facility, the home of roughly 3,900 full-time employees, residences a wide range of companies within Verizon Communications and functions as head office for its Wireless system.

Verizon acquired the structure in 2005 for $99.55 million, according to CoStar information, and made considerable investments to complete substantial upgrades at the home and develop a world-class head office there. See CoStar COMPS # 1029131.

Initially constructed in 1975, the four-story, 1.4 million-square-foot, 4-Star workplace structure sits on a 140-acre campus in the Path 78 East submarket of Somerset County, in Bernards Twp. The LEED Silver-certified and Energy Star-rated asset showcases a seven-acre pond, covered parking, plentiful conferencing centers, full-service cafeteria, and a fitness center.

This most recent sale represents the largest price spent for a single-asset workplace building in the Northern New Jersey market. In addition, the sale represents the biggest sale-leaseback ever completed in suburban New Jersey and the greatest price per square foot of any suburban sale-leaseback deal in the U.S., according to Cushman & & Wakefield, which brokered the offer for Verizon.

“We delivered an execution that optimized funding terms for the purchaser through a thoroughly crafted, credit renter lease,” said Michael Rotchford, executive vice president, head of business finance and investment banking for Cushman & & Wakefield.”This structure successfully provides current and long-term value for both Verizon and Mesirow.”

Gary Cohen and Doug Barker with Mesirow Real estate Sale-Leaseback Capital represented the purchaser in-house, with legal representation by Goldberg Kohn.

Cushman & & Wakefield’s investment banking group, in addition to its New York brokerage and New Jersey investment sales teams, functioned as financial consultant and exclusive positioning agent for Verizon in the offer. The Cushman & & Wakefield team consisted of Michael Rotchford, David Wenk, Robert Elms, Mark Todrys, Josh Kuriloff, and David Bernhaut, working carefully with Verizon’s John Vazquez, James Tousignant, and Robert Haines. Verizon internal counsel Steven Cohen dealt with law firm DLA Piper’s group led by Mark Hurel in recommending Verizon on the deal.

Please see CoStar COMPS # 3301967 for added info on this transaction.