Bisnow Week In Review: The Most Consequential Stories In CRE
In a diverse spectrum of real estate news, an appraiser's testimony challenged the Trump Organization's claims in an ongoing financial investigation, and Choice Hotels made a $7.8B play at buying Wyndham. Meanwhile, a Related Cos. affiliate plans a $1B investment in cold storage facilities, highlighting the growing demand for these spaces. Here is Bisnow’s global real estate week in review.
EDITOR’S NOTE: Parts of this story were generated by AI and have been reviewed by our editorial team for accuracy.
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NATIONAL
Trump Attorney Accuses Appraiser Of Lying After He Denied Working On Valuations
An appraiser testified in court that he never conducted valuations for the Trump Organization, contradicting the company's previous claims. The testimony is part of an ongoing investigation into the company's financial dealings. Trump attorneys in turn accused the appraiser of perjury. Read more
'All Of A Sudden I Heard Explosions': Israel's Deadliest Day Hits Close To Home For U.S. CRE
Israel's recent Hamas terrorist attacks deeply affected the U.S. commercial real estate community with ties to the nation. Many expressed horror, grief and determination to support Israel's response while emphasizing the distinction between Hamas and Palestinian civilians. The attacks were the deadliest in Israel's history, with over 1,400 Israelis killed and more than 3,400 injured. Read more
Related Affiliate To Spend $1B On Developing Cold Storage Facilities
A Related Cos. affiliate plans to invest $B in the development of cold storage facilities across the U.S. Demand for cold storage, especially for pharmaceuticals and perishables, continues to rise. Read more
Jewelry, Watches, Art (And 2 Houses) ‘Best That Can Be Done’ To Pay Back Burned Nightingale Investors
Nightingale Properties CEO Elie Schwartz has revealed assets he plans to sell to repay investors the $50M he misappropriated. Assets include luxury properties, jewelry, art and stakes in commercial real estate. The repayment plan spans three years. Read more
Choice Hotels Offers $7.8B Takeover, Wyndham Rebuffs Proposal
Choice Hotels International proposed a $7.8B stock-and-cash takeover of Wyndham Hotels & Resorts, aiming to form a U.S. budget hotel giant. Wyndham declined the offer, citing concerns about undervaluation, regulatory issues and execution risks. Read more
Construction's Workforce Lacks Diversity, Especially In Leadership Roles
The construction industry is grappling with a lack of diversity, particularly in leadership positions. The number of women in leadership is on the decline. Efforts are being made to address this disparity and promote a more inclusive workforce, but a lack of data is holding back growth. Read more
Netflix Opening Permanent Retail, Dining Experience
Netflix plans to launch "Netflix House" in 2025, offering retail, dining and live experiences based on its shows. These locations, starting in the U.S., will serve as promotional venues for Netflix content. Read more
Prologis Sets Rent Growth Records, CEO Remains Optimistic Amid Geopolitical Turmoil
Prologis, a global leader in logistics real estate, reported record rents in Q3, highlighting the robust demand for industrial spaces. The CEO also highlighted the impact the latest war between Israel and Hamas could have on the industry. Read more
Pimco Surrenders 20-Hotel Portfolio
Global investment firm PIMCO has turned the keys of 20 hotel properties back to its lender. The hotels were valued at $326M in 2017 but dropped to $272.8M last year, and the CMBS loan was transferred to special servicing last summer. Read more
Prolific Bankruptcy Judge Resigns After Ethics Probe
David Jones, a judge who has ushered many retailers through bankruptcy and reimagining of their real estate, resigned after failing to disclose a romantic relationship with bankruptcy attorney Elizabeth Freeman. Read more
JLL Report Indicates Stabilizing Office Market
JL points to increased return-to-office mandates, rising tenant requirements and a decline in sublease additions as indications office improvement may be around the corner. Read more
WeWork President And COO Steps Down
Anthony Yazbeck, the president and chief operating officer of WeWork, has announced his decision to resign from the coworking company. The company will be seeking a replacement to fill the position. Read more
Proptech Company HqO Raises $50M To Focus On M&A
HqO, software firm for the real estate industry, has secured $50M in funding. The company plans to utilize the funds to prioritize mergers and acquisitions, expanding its reach in the property technology sector and becoming a full-service platform. Read more
U.S. Life Sciences Real Estate Investors Say The Market Will Improve. Few Are Willing To Bet On When
Venture capital money spurred a boom in life sciences over the last few years, but as that money has dried up, so has demand for lab real estate. But that demand is expected to return, and the industry's resilience and growth potential make it an attractive avenue for property investors. Read more
Uniqlo Planning Big Expansion, Wants To Bring U.S. Store Count To 200
Japanese retail giant Uniqlo is gearing up for a major expansion in the U.S. market over the next three years. It will be looking beyond the major metros for new locations. Read more
CRE Loan Distress Hits 10-Year High As Office Debt Crisis Accelerates
The commercial real estate sector is facing a 10-year high in loan distress, particularly in the office segment. The amount of debt on the brink of distress could make things much worse. Read more
Vici Properties Strikes $433M Deal To Acquire 38 Bowling Centers
Vici Properties is acquiring 38 bowling centers for $433M in a sale-leaseback transaction. This move showcases the company's strategy to diversify its real estate portfolio by entering the family entertainment industry. Read more
Convenience Store Chain SQRL Doubles Its Footprint With 210 New Stores
SQRL, a growing convenience store chain, has added 210 new stores, effectively doubling its presence and expanding its market reach. Read more
INTERNATIONAL
Fortune Favours The Brave: Spec Development Could Soon Return To The Dublin Office Market
Despite the slowdown in Dublin's commercial real estate market, opportunities may arise for investors and developers willing to act during the downturn. A near halt in the development pipeline and potential distressed sales in 2024 could open up investment opportunities. Ballymore Ireland's Patrick Phelan suggests focusing on development cost per square foot rather than yield or rent. Read more
Nuveen And Apache Capital Team Up To Target National SFR Opportunities
Nuveen Real Estate and Apache Capital have launched a UK-wide single-family rental investment joint venture. Their first project is Present Made’s 373-home development in Eddington, Cambridge, in collaboration with the University of Cambridge. The development is part of the University’s North West Cambridge master plan, which includes homes, student beds, employment space and retail. Construction is set to begin in late October, with completion expected in late 2025. Read more
New Lending Is Down And Defaults Are Up As Rates Bite UK Debt Market
Lending to UK property saw a significant drop in the first half of the year. New lending amounted to £18.6B, a 22% decrease from the same period in 2022. A report from Bayes Business School indicates loan defaults are expected to rise in the coming months. Read more
Student Housing Veteran Nick Porter Expands His Empire With Operator Deal
The Dot Group has bought CRM Students, adding to its student accommodation portfolio. The Dot Group is owned by Nick Porter, and its acquisition of CRM brings 26,000 beds across seven countries under its control. Read more
ATLANTA
Atlanta's Drop In Industrial Absorption 'A Little Alarming'
Atlanta's industrial market saw a significant drop in absorption, raising concerns among experts about the sector's health. Despite the slowdown, the city remains a top logistics hub. Read more
Stack Infrastructure Planning $380M Data Center Campus Near Atlanta
Stack Infrastructure is planning a new data center campus in Lithia Springs, highlighting the region's growing importance as a tech and data hub.The campus will encompass two three-story buildings totaling 879K SF. Read more
In Bid To Boost Diversity In CRE, Prologis Donates $3M To Morehouse For New Real Estate Institute
Prologis donated $3M to Morehouse College to launch a real estate degree program, aiming to increase diversity in the commercial real estate industry. Read more
Foreclosure Ahead For Site Once Slated For Georgia's Tallest Residential Tower
Olympia Heights Management's ambitious plan for the Southeast's tallest residential tower in Midtown Atlanta will not come to pass, as the developer is being foreclosed on. The site, which has sat vacant for nearly a decade in one of Atlanta’s hottest development submarkets, is set for auction. Read more
Lender Foreclosing On Huge Swath Of Newport RE's South Downtown Holdings
Miami-based BridgeInvest is foreclosing on Newport RE’s 18-parcel South Downtown portfolio. The foreclosure includes key properties like Hotel Row and 222 Mitchell St., with an auction scheduled for November. Read more
BALTIMORE
Baltimore Developers Say City Should 'Think Boldly' To Spur Transit-Oriented Development Boom
Baltimore is receiving federal and state funds for major transportation projects. However, developers urge city and county governments to adopt pro-growth policies, update zoning and offer additional incentives for transit-oriented development. Read more
Slowing Pipeline Benefits Baltimore Office Market As Leasing Drops
A wave of office development is hitting the market amid slowing leasing volume, but executed pre-leases are acting as a cushion, according to market reports. Nearly 1M SF is delivering by the end of 2024, but 85% of it is spoken for, and the pipeline drops off sharply after next year. Read more
BOSTON
Boston Real Estate Leaders React To Gov. Healey's $4B Housing Bill
Gov. Maura Healey introduced the Affordable Homes Act, a $4B initiative targeting the housing shortage in Massachusetts through funding and policy measures. While many in the commercial real estate sector support the bill, some expressed concerns regarding proposed real estate transfer tax hikes. The bill aims to produce over 40,000 new homes, including affordable options, and provides support for the state's housing portfolio. Read more
'2 Steps Back': Boston's Life Sciences Market Sees Rise In Sublease Listings, Vacancy
Boston's life sciences sector faces challenges as biotech layoffs increase and companies reduce their real estate footprints. The market recorded 445K SF of negative net absorption last quarter, with a surge in sublease space due to funding constraints. The vacancy rate in Boston rose to 17.6% and could reach 20% next quarter. Read more
Boston Launches Program To Incentivize Office-To-Residential Conversions
The Boston Planning & Development Agency is accepting applications for tax incentives to convert downtown office buildings into apartments. The Downtown Residential Conversion Incentive Pilot Program aims to increase housing stock and assist underutilized building owners. The program offers a tax reduction of up to 75% of the standard rate for up to 29 years. Read more
TA Realty Closes On $1.8B Value-Add Fund
TA Realty has closed its $1.8B Realty Associates Fund XI, focusing on value-add investments. The fund, oversubscribed with commitments from global institutional investors, will target industrial, office, retail and multifamily assets across major U.S. markets. Read more
CHICAGO
Google Approved To Demolish Thompson Center Exterior To Make Over Its New HQ
Google has received approval to conduct demolition work on the exterior and atrium of the Thompson Center as part of its plan to transform the building into its Chicago headquarters. The tech giant will remove the metal and glass skin of the 17-story building, with the project estimated to cost $6M. Read more
‘Nobody Knows Where The Bottom Is Yet:’ Investors Eager To Pounce On Maturing Class-B Office Loans
Investors are looking forward to opportunities to buy Class-B offices at a discount, but finding the right timing can be challenging. There have been few comparable sales in recent years, which makes determining pricing difficult. Read more
DENVER
Denver's Life Sciences Market Embracing The Mixed-Use Lab Campus Trend
Denver's life sciences sector is adopting mixed-use lab campuses, combining residential, retail and lab spaces. This approach addresses challenges like labor shortages and housing affordability. Such hubs, mirroring those in mature life sciences markets, aim to elevate Denver's biotech presence. Developments like the 428K SF Fitzsimons Innovation Campus in Aurora exemplify this trend. Read more
2 Denver Suburbs To Increase Development Fees In 2024
Littleton and Arvada are increasing fees on development beginning Jan. 1. The moves are part of municipalities’ attempts to defray costs amid stubborn inflation. Read more
DALLAS-FORT WORTH
Plano To Become Home To Texas’ Largest Indoor Pickleball Facility
A former Plano grocery store is being transformed into Texas' largest indoor pickleball facility, Pickleball Kingdom. Set to open in January, the 51K SF facility will feature 15 indoor courts, a café, an internet lounge and event spaces. Franchisee Dan Jenkins plans to open five North Texas locations, with a 45K SF ground-up location in Keller scheduled for next summer. Read more
Lenders Initiate Foreclosure On Uptown Dallas Office Tower
Houston-based Pillarstone Capital REIT has defaulted on the $16.5M loan for Uptown Tower in Dallas. With $14.4M outstanding on the loan, foreclosure proceedings have begun. The tower, built in 1982 and renovated in 1994, was 56% occupied as of March. Mortgage holders have appointed a trustee for the foreclosure, and the property is valued at $27.7M. Read more
Experiential Retail Remains In High Demand 3 Years After Onset Of Pandemic
Experiential retail continues to thrive in Dallas-Fort Worth, with concepts like "retailtainment" gaining traction. Despite economic challenges, the demand for unique out-of-home experiences remains strong, driven by millennials and Gen Z. Read more
HOUSTON
Morgan Group Founder, Holocaust Survivor Bill Morgan Dies At 98
William Morgan, a Holocaust survivor and founder of Houston-based multifamily developer Morgan Group, died at 98. Morgan founded Globe Construction and Management Co. in 1959, which later became Morgan Group. The company has developed or acquired assets worth $4.5B. Morgan played a pivotal role in the construction of the Holocaust Museum Houston and was a significant figure in the Houston real estate industry. Read more
Lender Foreclosing On Hotels In Houston, Dallas After $56M Loan Default
Lender Access Point Financial is foreclosing on a former Crowne Plaza Suites in Houston linked to a $56M loan. The borrower, tied to Florida-based Lockwood Development Partners, defaulted on the loan. The loan was issued in 2021 for three properties, all former Crowne Plaza hotels, in Houston, Austin and Addison. Access Point has already foreclosed on the Addison property, and the Houston property is set for auction next month. Read more
‘Fighting For Survival’: Houston Multifamily Market Expects More Pain Before It Gets Better
Houston's multifamily market has seen a significant decrease in deal volume over the past 18 months. Panelists at the Houston Bisnow Multifamily Annual Conference highlighted challenges like rising rates and reduced loan-to-value ratios from banks. Creative financing and diversified concepts, such as build-to-rent houses, are some strategies being employed to navigate the tough market conditions. Read more
New California Transplant Adds Fuel To Slow-Burning Texas Life Sciences Fire
Texas is witnessing a surge in life sciences real estate, with lab space demand outpacing supply. The state's business-friendly environment, coupled with its growing population, makes it an attractive hub for life sciences companies and is drawing relocations from California in particular. Limited venture capital funding to the industry is holding Texas back from being a top-tier market yet. Read more
LOS ANGELES
Buchanan Street Partners Buys Buena Park Industrial Campus For $71M
Buchanan Street Partners acquired a five-building industrial property in Buena Park for $71M. The property, previously owned by TA Realty, spans approximately 300K SF. The sale price marks a 73% increase from its last sale in 2016. Buchanan Street's acquisition strategy focuses on properties with "optionality," such as raising rents or selling buildings individually. Read more
Behavioral Health Real Estate In SoCal Set To Grow With Public Funding
California's investment in behavioral health is expected to boost the related real estate sector. Over $1B in grants have been announced for behavioral health, with a significant portion aimed at housing and treatment for the unhoused. A proposed $6.8B bond measure could further support the creation of over 11,000 beds for those with mental health and substance use disorders. Private sector involvement and innovation are deemed essential to meet the growing demand. Read more
NEW YORK CITY
First Landlord Lawsuits Lobbed Against Airbnb, Tenants In New Legal Landscape
New York City renters who list their apartments on Airbnb could face severe consequences as the city has begun enforcement of its new short-term rental laws. The city's crackdown on illegal short-term rentals is intensifying, with potential fines and evictions for violators, and the first lawsuits by landlords against tenants have been filed. Read more
Former Simon Property, Westfield Execs Land At Boutique NYC Retail Brokerage
Capricorn Retail Advisors has hired executives from Simon Property Group and Unibail-Rodamco-Westfield. The local boutique firm is looking to expand, with goals to double its staff and book of business in the next year. Read more
NYCFC Inches Closer To Queens Stadium As It Kicks Off Rezoning Process
New York City Football Club is one step closer to realizing its dream of a stadium in Queens. The club has submitted a rezoning request, marking significant progress in its pursuit of a 25,000-seat stadium. Read more
Sharif El-Gamal Loses Margaritaville Resort To Lender In Foreclosure
Sharif El-Gamal, a prominent NYC developer, has lost the Margaritaville Resort to foreclosure. El-Gamal fought hard to keep the property, located in Times Square, but defaulted on the debt earlier this year. Read more
NYC Construction Spending On The Rise Even As Housing Production Plummets
New York's housing sector has witnessed a 62% plunge in starts, even as construction spending in the city sees an uptick. The expiration of the 421-a tax break and soaring interest rates led to fewer residential groundbreakings, but construction in other sectors compensated and is pushing spending above pre-pandemic levels. Read more
CIM Group, Australian Fund To Hand 1440 Broadway Back To Lender
CIM Group and QSuper appear on the verge of handing back the deed for 1440 Broadway to their lender. Their $399M CMBS loan has gone into special servicing. Read more
SL Green's Sluggish Leasing Sends Stock Tumbling As REIT Readies For Turnaround
The Q3 earnings report for office REIT SL Green indicates its tumultuous journey throughout 2023 is set to continue. Executives said the company won’t meet its occupancy goals but that leasing is on the rise, leading to the stabilization of its portfolio. Read more
Floodgates Are Open For Dispensary Applications, But Headaches Persist For NYC Cannabis Retail
New York's cannabis retail sector is experiencing fatigue as new guidelines introduce more turbulence. More than 2.5 years since recreational marijuana was legalized in New York, only 27 licensed dispensaries are open across the state. Projections called for 20 dispensaries opening per month this year, but an August injunction halted the industry’s growth. A reopening for applications under new guidelines has sent deal-makers into overdrive. Read more
Korean Investor Takes Over Land Beneath 20 Times Square, Tries To Push Natixis Into Default
Hana Financial Group purchased the land under Marriott’s Times Square Edition out of foreclosure and is preparing to declare Natixis, the leasehold owner of the hotel, in default. Hana said it is giving Natixis 30 days to clear $39M in mechanical liens, but Natixis has filed an injunction to prevent the move, saying the previous owner is responsible for those liens. Natixis acquired the property by foreclosing on Maefield Development in 2022. Read more
PHILADELPHIA
'They Don't Have The Funding': Philly Life Sciences Leaders Explain Why All That Demand Didn't Translate To Leasing
Despite the rising supply and shrinking demand in Philadelphia's life sciences sector, there's a silver lining. The city's strategic positioning and infrastructure make it a potential hub for life sciences, attracting investors and developers. Read more
Hilco Breaks Ground On First Building Of $4B Bellwether District At Former Southwest Philly Refinery
Hilco Redevelopment Partners and HRP marked the groundbreaking of a 326K SF industrial building in the Bellwether District. This project signifies a transformative step in repurposing and revitalizing the former refinery site for future use. Bellwether District is slated to reach 14M SF at full build-out. Read more
SAN FRANCISCO BAY AREA
UC Berkeley, SKS Partners To Bring $2B R&D Center To NASA's Silicon Valley Campus
UC Berkeley, NASA and SKS Partners are collaborating on a $2B, 1.4M SF R&D center at NASA's Mountain View research park. The Berkeley Space Center will foster public-private partnerships in space exploration. Read more
NBA Star Andre Iguodala Retiring To Focus On Fund Behind Modular Multifamily Developer
Golden State Warriors' Andre Iguodala is retiring from the NBA, shifting focus to startup investing. His venture capital fund, Mosaic, invests in modular multifamily home builder Vessel. Read more
Brookfield Gets 30-Day Reprieve On $130M Stonestown Mall Loan
Brookfield was granted a 30-day extension to repay the $180M it owes on San Francisco's Stonestown Galleria mall. It is looking to refinance the loan. Foot traffic at the mall has surpassed 2019 levels, positioning the property better than many other malls in the area. Read more
SOUTH FLORIDA
Another One: Developer Announces Plans For 750K SF Brickell Office Tower
Key International unveiled plans for a 750K SF office tower in Brickell, adding to a series of recent office development proposals in the area. The project aims to cater to the growing demand for office spaces in Brickell. Read more
High Miami Rents Spur Army To Tap Lendlease To Build First New Private Housing In 13 Years
Lendlease has been selected by the Army to build 75 houses and 60 two-bedroom apartments in Doral, the Army’s first new private housing since 2010. This move aims to provide affordable housing options for military personnel amid soaring rents in the Miami area. It will add to Lendlease’s portfolio of more than 40,000 military housing units. Read more
Sony Music Consolidating Offices In 45K SF In Wynwood
Sony Music has secured a 45K SF lease at 545 Wyn in Wynwood. The deal showcases Wynwood's appeal as a hub for creative and entertainment industries. Read more
WASHINGTON, D.C.
For Architects, Distressed Office Market Is Opportunity To Rethink The Building Of The Future
Architects are reimagining building designs for flexibility in response to high office vacancies. The challenge of converting offices to residences has highlighted the need for adaptable designs. Future buildings might be planned for easy transformation between uses, such as from office to hotel or residential. Read more
Rent Control Debate Fuels Uncertainty In Prince George’s County’s Multifamily Market
Prince George’s County's temporary rent control policy, capping rent growth at 3%, is set to expire in March 2024. The ongoing uncertainty about a permanent policy is making investors cautious. The county is also considering residential development limits. Read more
Upscale Mini-Golf Bar Closes 7 Months After Opening In Navy Yard
Swingers, an adults-only mini-golf venue near Nationals Park, closed its Navy Yard location just seven months after its opening. The brand pointed to location-specific challenges as the reason for the closure and will continue its operations in other locations. Read more
Canadian Firm Enters D.C. Market With $69M Apartment Deal
Canadian company Starlight U.S. Multi-Family acquired a 290-unit affordable housing property in Alexandria for $69M. This is the firm's first acquisition in the D.C. area, expanding its U.S. portfolio. Read more
