Swank Condo-Hotel Comes to Atlanta
Atlanta-based Tivoli Properties is building a 53-story, 198-room hotel and 71-unit condo development under the Mandarin Oriental flag on Atlanta’s Midtown Mile, says Scott Leventhal, Tivoli’s CEO and president. The $285 million Mandarin Oriental is a resort-style glass skyscraper that should open in the first half of 2011, Leventhal says. The development offers one-, two-, three-, and four-bedroom residences from 1,700 sf to 12,000 sf priced from $1.8 million to $15 million.
Oklahoma City’s 1Q09 Office Asking Rents
Asking Rent ($/psf)
Source: Grubb & Ellis Levy Beffort
New Orleans Adds Affordable-Housing Stock
The $172 million, 555,000-sf C.J. Peete HOPE VI housing redevelopment project is a joint venture of New Orleans Neighborhood Development Collaborative, St. Louis-based McCormack Baron Salazar, KAI Design & Build, and Urban Strategies, reports Multi-Housing News. Originally built in 1941, the property was partially demolished in 1997 with the remaining buildings destroyed in 2008. The current redevelopment of the 30-acre site includes 115 buildings comprised of 460 affordable and market-rate garden apartments and townhomes. Build-out is slated for early 2011.
Seattle Industrial Highlights
1Q09 (%)vacancy rate
1Q08 (%)current net absorption (sf)
Source: Colliers International
Markets to Watch
Dallas-Fort Worth — Posting 516,205 sf of positive net absorption, the office leasing market remained stable during 1Q09, according to Grubb & Ellis. With positive absorption of 294,209 sf and 269,300 sf respectively, class A and B properties showed the majority of the 1Q09 growth with class C posting -47,304 sf absorption. Despite this, the Dallas-Fort Worth office market was one of few to report positive absorption in light of the current economy.
Las Vegas — There continues to be some upside to Las Vegas’ down retail market, as bargains abound due to increased vacancies, giving tenants more locale choices and negotiating power, reports CB Richard Ellis. Vacancy rates for 1Q09 were up to 12.41 percent while asking lease rates were down 13 cents from 4Q08 to $2.01.
Minneapolis-St. Paul — Because of a lack of pipeline supply, the Minneapolis-St. Paul multifamily market outpaced the nation in rental rate stability and occupancy in 1Q09, according to Colliers Turley Martin Tucker. And despite a halt on new projects through 2010, the acquisition of the 344-unit Riverview at Upper Landings in St. Paul made local headlines. Intercontinental Real Estate Corp. purchased the four-year-old building from Prudential Real Estate Investors for $126,453 per unit.
Oregon Gets Ready for World’s Greenest Building
Independence Station, a $15 million, 57,000-sf development in Independence, Ore., is slated to become the world’s greenest building. Upon opening in 2010, the property primarily will obtain its energy from the sun and vegetable oil with leftover energy going to the local utility providers. The building will feature real and virtual offices, an Internet café, a green-data storage facility, research facilities, and classroom space. Other sustainable features include radiant floor heating and cooling, displacement ventilation, solar water heating, an ice-based cooling system, and the use of LED lighting. Condos range from $300,000 to $600,000; residents’ energy and water usage will be tracked for benchmark studies on responsible consumption.
Major Manhattan Deal
Last February, Los Angeles-based Gehr Development purchased the 33-story Fairfield Inn in Times Square for $99.5 million, according to ny.therealdeal.com. The newly constructed, 244-room hotel is the first Fairfield Inn in Manhattan.
Boston Office Overview
Responding to the current economic crisis, Boston’s CBD recorded negative absorption of more than 1.2 million sf with new leasing only at 305,179 sf for 1Q09, the lowest record quarter in a century, according to Cushman & Wakefield. As a result, average asking rents dropped 6.3 percent to $44.21 psf between 4Q08 and 1Q09 with achieved rents falling between 15 percent and 30 percent. But despite the current numbers, the long-term fundamentals of the CBD remain strong. Altogether, 1.2 million sf will come on line through 2011 with several large tenants requiring more than 100,000 sf of space. Overall, with a more favorable rental rate environment, tenant activity should increase by year-end.
New Target in Cincinnati
A 137,575-sf Target recently opened at the Western Hills Plaza in Cincinnati, reports REJournals.com. Owned by Centro Properties Group, this store marks the completion of its $6.4 million redevelopment of the shopping center. Centro purchased the plaza for $45.8 million in November 2005.
Big Deal Strengthens L.A. Market
Glo, a class A mixed-use community in Los Angeles, was recently acquired by Boston-based Berkshire Property Advisors for $47.5 million. Located on Wilshire Blvd., the development is two blocks west of L.A.’s CBD, consists of two five-story buildings connected by a sky bridge, and 353 parking spaces. The units range from studios to three bedrooms, with an average size of 1,010 sf. The property also has 8,453 sf of ground-floor retail space.
Washington, D.C., Office Market, 1Q09
Current inventory (sf)
Vacancy rate (%)
Net absorption (sf)
Source: CB Richard Ellis
2008 Hotel Snapshot, Secondary Markets
Average daily rate ($)
Revenue per available room ($)
Source: Marcus & Millichap, Smith Travel Research
$31 Million MOB Portfolio Closes
In March, Lillibridge, a private healthcare real estate firm based in Chicago, completed the $31 million purchase of a 13-building, 255,000-sf medical office portfolio in Decatur, Ill., from Decatur Memorial Hospital. Ten buildings are located on the hospital’s campus while three are off campus. Currently, five are fully occupied by the hospital with one leased to the Southern Illinois Family Practice residency program. Lillibridge plans to offer ownership options to physician tenants as well as a remodeling program for some of the properties. Currently, all facilities are 95 percent occupied.