Office, Industrial Sales Hold Steady Even as Overall CRE Sales Volume Continues to Drift Lower in First-Half 2017

Investors continued to buy less commercial real estate in both the second quarter and the first half of 2017 compared to the same periods a year ago, a trend that started in 2016 as steady fundamentals that have resulted in generally robust occupancies and rental rate gains have boosted valuations across most property types. However, CRE investment sales are still running about 10% above the historical sales volume average over the past 10 years…

CoStar’s People of Note (July 21) – Cushman Chooses Gorelick, Brixmor Brings on Brown, Avison Adds Kreider…

It’s time to update those contact managers with CoStar’s People of Note, reporting news on significant new CRE hires and promotions. This week’s issue includes the following markets: New York City, Raleigh / Durham, Atlanta, Charlotte and St. Louis. NEW YORK CITY Cushman & Wakefield Taps Gorelick as Executive Managing Director, Head of Retail for the Americas By Justin Sumner

Will Medical Office Continue to Support Rich Deals?

As foreign investors, REITs and other institutional buyers rush to scoop up medical office building (MOB) space and develop urgent care and other ambulatory care facilities, the growing pool of buyers competing for a limited number of available properties is driving capitalization rates lower. In an analysis of nearly 23,000 MOB sale transactions from 2008 to present, CoStar found that overall capitalization rates on sales of medical office properties…

Federal Banking Agencies Propose Exempting CRE Property Sales of $400,000 or Less from Appraisals

Responding to investor and lender concerns regarding the time and costs associated with completing smaller real estate transactions, the Federal Reserve Board, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency today proposed raising the sale price threshold for commercial real estate transactions requiring an appraisal to more than $400,000 from the current level of $250,000. The banking agencies proposed the…

As Popularity of PACE Clean-Energy Financing Increases, Lawmakers See Need for Reforms

Commercial real estate owners and developers who have discovered the flexibility and affordability of Property-Assessed Clean Energy (PACE) financing have boosted the program to its largest financing levels in the program’s eight-year history, increasing aggregate volume by 25% in the first six months of 2017 alone. The financing innovation that lets property owners borrow up to 100% of the cost of adding energy-efficiency features or renewable…

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

BGC Partners Inc. (NASDAQ: BGCP) has agreed 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 become part of Newmark Knight Frank, BGC’s real estate services segment. The move would immediately catapult Newmark, a New York-based global brokerage company…

Landlords Force Skilled Nursing Facility Operator Fortis Management Group into Receivership

Landlords have reached a consensual agreement to have a receiver appointed for Fortis Management Group, which defaulted on master leases this past spring covering 65 health care facilities in the upper Midwest, becominig the latest post-acute/skilled nursing operator hurt by a challenging operating environment. Milwaukee attorney Michael S. Polsky of Beck, Chaet, Bamberger & Polsky was named as receiver. Polsky has retained Focus Management Group…

New York Presbyterian Hospital Signs 500,000-SF Office Deal at Park Avenue Atrium

New York City’s largest hospital New York-Presbyterian Hospital has signed an office deal to occupy almost 500,000 square feet in the Park Avenue Atrium office building at 237 Park Ave. (466 Lexington Ave.) in New York, NY. In order to provide the hospital with certain tax benefits, the transaction was structured as a sale to the hospital of a 30-year leasehold condominium interest in a portion of the building totaling 471,016 square feet, instead…

Office Lease Up (July 17) JBG Shifting HQ to New Trophy Development in Downtown Bethesda

The JBG Cos. will shift its corporate headquarters to a new trophy building the firm is set to develop at the corner of Woodmont and Bethesda Avenues in downtown Bethesda, MD. The largest development company in the Washington, D.C. area had been looking to secure an anchor tenant for its new 300,000-square-foot, 14-story project at 4747 Bethesda Ave. before going vertical with the development. With the decision to relocate from 4445 Willard…

IvanhoƩ Cambridge Acquires Evergreen Industrial Properties from TPG Real Estate

Montreal-based IvanhoĆ© Cambridge made its first major move into the ‘last mile’ warehouse market this week, closing on its purchase of Evergreen Industrial Properties from private equity investment firm TPG Real Estate. The investment unit of Montreal pension fund advisor Caisse de Depot et Placement du Quebec announced it plans to buy more. Financial terms of the transaction were not disclosed, although media reports speculated the owner/operator…