Tag Archives: purchasing

Caesars purchasing Centaur Holdings, adding 2 Indiana gambling establishments

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L.E. Baskow One of the numerous sculptured angels about the outside of Caesars Palace on Wednesday, August 5, 2015.

Thursday, Nov. 16, 2017|4:14 p.m.

New York City– Gambling establishment giant Caesars Home entertainment says it is buying gambling establishment and gaming business Centaur Holdings, obtaining new properties in Indiana.

Las Vegas-based Caesars stated Thursday it’s paying $1.7 billion in money for Centaur.

With the acquisition, Caesars will add two Indiana properties: Hoosier Park Racing and Casino in Anderson and the Indiana Grand Racing and Casino in Shelbyville. The homes use slots and electronic table video games, in addition to live and simulcast horse racing.

Caesars called central Indiana an appealing area for investment due to the fact that of its solid economy and since it’s not filled with gambling establishments.

Centaur, based in Indianapolis, serves more than 6.5 million guests each year throughout its residential or commercial properties.

Caesars operates 47 gambling establishments in 13 U.S. states and five countries. Its operating system emerged last month from more than 2 years of personal bankruptcy.

BGC Partners Purchasing Berkeley Point Financial, Folding Multifamily Lender into Newmark Knight Frank

Cantor Fitzgerald Selling Affiliate to BGC Affiliate, Both Companies Headed by Dealmaker Lutnick; Firms Releasing New CRE Investment Fund

Howard W. Lutnick, chairman and CEO of BGC Partners.
Howard W. Lutnick, chairman and CEO of BGC Partners. BGC Partners Inc. (NASDAQ: BGCP) has actually consented to acquire Berkeley Point Financial LLC, a multifamily and healthcare real estate finance company, from an affiliate of Cantor Fitzgerald LP for$ 875 million.

After the proposed acquisition is completed, Bethesda, MD-based Berkeley Point will enter into Newmark Knight Frank, BGC’s property services sector.

The relocation would immediately catapult Newmark, a New York-based worldwide brokerage company, into the top ranks of multifamily loan producers in the U.S. Fannie Mae notes Berkeley Point amongst its Leading 10 manufacturers last year and its fifth-largest budget-friendly real estate loan producer.

” We believe that the addition of Berkeley Point will substantially increase the scale and scope of Newmark, along with substantially improve upon its already strong monetary performance,” stated Howard W. Lutnick, chairman and CEO of BGC Partners.

Lutnick is likewise chairman and CEO of Cantor Fitzgerald. A special committee including all four independent directors of BGC, assisted by independent advisors, authorized the acquisition of Berkeley Point.

Along with stemming multifamily and health care loans, Berkeley Point, also services and handles business property loans. It has actually assisted in workouts for loans totaling over $10.7 billion, inning accordance with Freddie Mac data. As of year-end 2016, Berkeley Point’s servicing portfolio was comprised of 3,743 loans with an aggregate outstanding primary balance of roughly $55.7 billion.

By way of comparison, CBRE Loan Services Inc. serviced a portfolio of 5,331 loans with a balance of $116.4 billion at year-end 2016, inning accordance with Freddie Mac.

Berkeley Point’s net property or book value was $509 million as of March 31, 2017. It created incomes and pre-tax income under GAAP of $314 million and $143 million, respectively, for the trailing 12 months ended March 31, 2017, according to BGC. The latter 2 results represented year-on-year boosts of 55% and 169%, respectively.

For the year to end Dec. 31, 2017, Berkeley Point’s revenues are anticipated to increase by at least 30% compared to $294 million in 2016, and forecasts its revenues will increase by a minimum of 20% year-over-year in 2018.

” This transaction will integrate [Berkeley Point’s] leading five Fannie Mae and Freddie Mac multifamily origination business with ARA, Newmark’s leading 3 multifamily investment sales company, in addition to our fast-growing industrial home loan brokerage company,” said Barry M. Gosin, CEO of Newmark. “Our company believe that this combination will be a catalyst for considerably greater income and earnings development for Newmark. Berkeley Point will drive our margins greater, as it is more rewarding than our publicly-traded commercial real estate services peers,” Gosin added.

This earnings growth will get a boost from expense savings to be realized between Berkeley Point’s and NKF’s national sales organizations, Gosin said.

Jeff Day, CEO of Berkeley Point, stated: “Being part of Newmark will provide us the capability to provide our customers a broad array of funding choices. The combined service will also offer renter and agency leasing, home and centers management, advisory and consulting, appraisal, job and advancement management, realty innovation options, and business loan maintenance.”

BGC prepares to fund the acquisition through a mix of a bond issuance, term loans or other debt financing plans, as well as from existing financing sources and money on hand, the business stated.

Closing is expected during 2017, based on receipt of certain regulatory approvals, consisting of from Fannie Mae, Freddie Mac and HUD, and other customary closing conditions.Launching New CRE Financing Company At the exact same time the acquisition of

Berkeley Point closes, BGC said it will invest$ 100 million in cash in a new commercial genuine estate-related finance and financial investment organisation that will likewise enter into Newmark Knight Frank. Cantor Fitzgerald will control the new financial investment car and contribute approximately$ 267 million of money and non-cash properties for the remaing 73% of the financial investment’s capital. The investment, which will be structured as a limited collaboration, is anticipated to team up with Cantor Fitzgerald’s existing commercial real estate financing company, and might conduct activities in its other genuine estate-related companies. Under the terms of the investment, Cantor Fitzgerald has consented to bear initial net losses of the partnership, if any, approximately an

aggregate quantity of $37 million annually. BGC will be entitled to a cumulative annual preferred return of 5%.

Federal government Characteristic REIT Purchasing First Potomac for $1.4 Billion

CEO Milkovich Engineers Sale of Company Following Strategy to Shed Assets, Increase Investor Value

Robert Milkovich, CEO and Chief Operating Officer of First Potomac Realty Trust.
Robert Milkovich, CEO and Chief Operating Officer of First Potomac Real estate Trust. Following an 18-month ‘crash course’in boosting investor worth under CEO Robert Milkovich, Bethesda, MD-based Very first Potomac Real estate Trust (NYSE: FPO )has accepted a buyout deal from Federal government Properties Income Trust(Nasdaq: GOV )for $1.4 billion in cash and financial obligation assumption. Federal government Residence Earnings Trust, which is managed by the operating subsidiary of alternative possession management company The RMR Group Inc. (Nasdaq: RMR)based outside Boston, accepted pay $11.15 per share in cash ($683 million in total). GOV likewise accepted choose up the tab for approximately $418 countless First Potomac’s financial obligation and assume roughly $232 million of exceptional mortgage financial obligation.

GOV mainly owns properties bulk leased to the United States federal government and other government occupants.

The money per share for the deal is less than First Potomac’s stock closing rate yesterday (June 27) of $11.35/ share, and lower than the closing rate of the last five trading days. First Potomac’s stock has actually traded as high as $11.44/ share over the last 12 months.

First Potomac likewise concurred not to pay any circulations to its investors before the transaction with GOV closes.

First Potomac preserves the list price represents a premium of 9.3% to its 30-trading day volume weighted average price ended April 24, 2017, the last trading day before market rumors concerning a possible sale started circulating. On April 24, FOP stock closed at $10.61/ share.

The deal undergoes the approval of at least a bulk of FPO’s typical investors.

First Potomac’s board tapped Milkovich to take over as the REIT’s CEO following the abrupt resignations of previous CEO Douglas Donatelli and Chief Investment Officer Nicholas Smith in 2015. He formerly worked as primary running officer. First Potomac’s market capitalization had taken a hit from investors concerned over the slow leasing activity in its portfolio of mostly rural office around Washington, DC, which experienced an uncommon slowdown in workplace leasing activity as an area coming out of the economic downturn.

First Potomac owns a portfolio of office and commercial properties mostly in the city Washington, DC, market. The portfolio includes 39 homes (74 structures) with 6.5 million square feet that was 92.2% leased as of March 31, 2017. The REIT reported that federal government and other investment-grade occupants represent 43.9% of its overall annualized rental income.

“Over the last 18 months we have worked vigilantly to refine the business’s portfolio, strengthen the balance sheet, and enhance First Potomac’s corporate governance,” stated Milkovich in a statement announcing the sale arrangement. “This deal and the appealing worth that investors will receive shows the effective execution of these efforts.”

“The acquisition of FPO allows GOV to broaden its company technique to consist of the acquisition, ownership and operation of office homes leased to both federal government and economic sector occupants in the metropolitan Washington, DC, market location,” said David Blackman, president and chief operating officer of Newton, MA-based GOV. “Outside of the urbane Washington, DC, GOV will continue to focus on obtaining, owning and operating office homes that are bulk rented to federal government renters.”

Government Characteristic Earnings Trust said it expects to realize $11 million of annual basic and administrative expenditure cost savings compared with FPO on a stand-alone basis.

GOV anticipates to fund the offer by offering shares and extra financial obligation, including senior unsecured notes, home mortgage funding and/or bank financial obligation, as well as earnings from the sale of some homes.

Citigroup is serving as special financial advisor to GOV and Sullivan & & Worcester LLP is serving as legal counsel to GOV. Wells Fargo Securities/ Eastdil Guaranteed is functioning as special monetary consultant to First Potomac, and Hogan Lovells United States LLP is functioning as legal advisor.

Monday Characteristic Rotates Back to Purchasing Mode, Trading for Five-Bldg Northern VA Office Portfolio

New york city City Realty Firm, Fresh With West Coast Aspirations, Utilizes CMBS to Recapitalize Its Rosslyn Portfolio to Raise Money for Re-Entry Into Office Investment Market

It’s clear that Monday Properties has been getting ready to obtain back into the hunt for investment workplace properties, and the New York City based real estate investment firm shot on its very first purchase in several years this, purchasing the Beauregard Workplace Park, a five-building office park in Alexandria, VA.

. Monday Characteristic, which last month completed an $888 million CMBS recapitalization of its nine-property portfolio in Rosslyn, VA, closed the purchase of the 300,000-square-foot portfolio of Class B homes on North Beauregard Street, formerly known as Mark Center Office Park, on terms that were disclosed.

The late last month revealed the recapitalization of the 2.6 million-square-foot Rosslyn portfolio, which the company said would supply the necessary funding to protect extra long-lasting tactical financial investments and upgrade its leasing efforts in the Washington, D.C. market.

The recapitalization through a CMBS loan sponsored by a joint-venture between United States Realty Opportunities I, L.P., a $1.3 billion fund formed by Goldman Sachs and an affiliate of Monday Characteristic, is protected by 7 office homes in the Rosslyn portfolio managed by Monday given that 2005.

The portfolio is a potential jewel in a Rosslyn submarket hard-hit by Department of Defense downsizing and federal spending plan sequestration. Those elements caused office need to plummet and job rates to spike to 26.5% in recent quarters. The security homes, however, “are considered to be a few of the very best in the market and offer unobstructed views of nationwide monuments and landmarks,” DBRS stated in a pre-sale report. “The properties are quickly available from downtown DC and the suburbs in Northern Virginia as they are within close distance to the Rosslyn Metrorail Station.”

While occupancy of the portfolio was just 67.5% since May 1, Monday Residence has actually produced considerable leasing momentum by performing 39 brand-new leases and renewals, DBRS said. Furthermore, 18.5% of the over 100 tenants are investment-grade, while only 8.5% are inhabited by federal government occupants.

Monday Properties signified its impending re-entry into the acquisitions market previously this year, revealing plans to open a Los Angeles workplace and start targeting financial investments on the West Coast for the very first time. Nevertheless, its first acquisition out of the gate, Beauregard Office Park, is best in the business’s home turf in Northern Virginia.

The homes are located at 500, 1600, 1800 1900 and 2000 North Beauregard Street north of I-395. The transaction “will further enhance Monday’s strategic thesis in finding unparalleled investments for our investors,” stated founding handling partner Anthony Westreich in a declaration.

Please see CoStar COMPs # 3934164 to find out more on the Alexandria transaction.

CBRE Purchasing Majority Stake in Caledon Capital to Broaden Infrastructure Business

Agreement to Acquire Toronto-Based Unit to be Run by CBRE Global Investors Shows Rising Investor Interest in Infrastructure and Other Alt Investments

CBRE Group, Inc. has actually participated in a conclusive agreement to buy a majority interest in Toronto-based Caledon Capital Management Inc., a financial investment management company specializing in personal facilities and private equity financial investments.

Caledon and its group of 30 individuals will be relabelled CBRE Caledon Capital Management Inc. when the transaction closes later on this year subject to regulatory approval and other closing conditions and will operate as a separate service unit under CBRE Worldwide Investors, the company’s individually run financial investment management subsidiary.

Most of the Caledon’s management team previously worked for Canadian pension that are leaders in facilities and private equity investing, and the group will continue to handle the business and will “preserve crucial long-lasting ownership” in the company, inning accordance with the CBRE statement.

CBRE Global Investors CEO Ritson Ferguson noted the development of financier interest in facilities and other alternative investments, as noted in a story by CoStar last week.

“Financiers are increasing their allocations to alternative financial investments, consisting of genuine properties. Caledon’s market-leading investment services are a sensible extension to our existing suite of property and facilities investment services, boosting our position as an industry leader,” Ferguson stated.

Caledon manages about US $7 billion in assets for institutional investors through a mix of direct financial investments, co-investments, secondaries and primary funds. Caledon will match investment services provided by CBRE Global Investors and CBRE Clarion Securities, its Radnor, PA-based listed equity management arm.

Private Equity Investors Slow Real Estate Purchasing in First Quarter

CRE Purchases Down 60% Year over Year; Fundraising Slows as Financial investment Funds Already Packed with ‘Dry Powder’

The personal equity realty market, which saw exceptionally strong fundraising and dealmaking activity in 2016, seemed to stop briefly and take some profits in early 2017.

CRE-focused equity funds finished 136 major home investments in the very first quarter of 2017 totaling $6.1 billion, according to CoStar Group COMPs data. That total is well off the nearly $15 billion in purchases the exact same set of financiers made in the very first quarter of 2016.

Equity funds were net sellers of CRE home in the first quarter of this year, completing 171 personalities amounting to $7.9 billion – about in line with the very same quarter a year ago.

PE buyers revealed a preference for office property investments finishing 26 buys totaling $2.167 billion. Multifamily was the 2nd biggest property type category with 47 deals totaling $1.607 billion. Retail was third with 29 deals totaling $1.547 billion, and industrial was 4th with 28 offers totaling $811 million.

While PE financiers were hectic stockpiling on workplace offers, they were offering multifamily and commercial homes. PE sellers unloaded $3.6 billion of multifamily homes in 49 transactions, and $2.3 billion of industrial properties in 22 deals. PE funds also sold $1.4 billion in retail residential or commercial property in 32 offers, and $1.5 billion in workplace residential or commercial properties in 35 deals.First Quarter Fundraising Likewise Slowed PE realty funds internationally raised about$ 16 billion in the very first quarter, inning accordance with Preqin, an alternative possessions industry information supplier. This represents a decrease from fundraising overalls seen in the very first quarter of in 2015 ($ 26 billion ), and is well short of the$ 32 billion raised by realty funds in the fourth quarter of last year. The number of CRE investment funds reaching a final close likewise declined dramatically throughout the very first quarter, falling from 72 in the last quarter of 2016 to simply 38 in the first quarter this year. More of that cash and a great deal of the formerly raised loan has yet to be used. Dry powder available to personal property fund managers rose a little in the quarter, from$ 237 billion at the end of 2016 to a new record of$ 245 billion at the end of Q1, Preqin reported. While it appears financial investment and fundraising momentum might be

slowing, Andrew Moylan, head of real estate items at Preqin, said we are simply in the early innings of the game. “Of specific note are the multibillion-dollar funds currently in market. A number of have already held interim closes, and may well be on course to reach a last close prior to the end of the year, “Moylan stated.” If this does take place, we might see 2017 rise to match 2016 as another landmark year for the industry.” More than half( 58%) of the funds presently in fundraising mode stated they plan to mainly purchase The United States and Canada and are looking for to raise $107 billion from institutional financiers. This is more than the combined capital targeted( $82 billion) by funds concentrated on realty investment in other global regions.

Las Vegas business purchasing Cripple Creek casino in Colorado

Sunday, Oct. 4, 2015|5:52 p.m.

CRIPPLE CREEK, Colo.– A $30 million offer is in the works to purchase among the most popular gambling establishments in Cripple Creek. Las Vegas-based Full House Resorts is planning to purchase Bronco Billy’s Casino and Hotel, which is the last of the original gambling establishments in Cripple Creek still locally possessed.

Owner and General Manager Marc Murphy said he’s remaining on as basic manager after the purchase, along with the management personnel and staff members. Murphy said investors have been thinking about offering the casino and hotel for several years.

Capacity Resort president Daniel Lee said he does not anticipate any major changes.

Lois Woods opened up the Rocky Mountain Canary General Store in 1972 with her other half, and they existed when pc gaming was authorized in Cripple Creek in 1991.

Woods stated the gambling establishments brought in more individuals and profits, made Cripple Creek a year-round location and developed jobs in the mountain town.

Numerous small regional casinos closed down or were purchased out by larger companies as they struggled to adhere to video gaming regulations and fines.

“It’s probably excellent to have larger, experienced operators as far as making it economically,” stated Woods.

Some homeowners stated they would such as the casino to stay under local ownership, KOAA-TV reported (http://tinyurl.com/pabczja).

Capacity is expected to finish the purchase in the next 4 to 6 months.