In Mixed Period for Hotel Sector, Procaccianti Launching REIT

Rhode Island-based Procaccianti Cos., owner of TPG Hotels & Resorts, is forming a new nontraded REIT to expand its hotel investments. The move comes at a time when lodging REITs have fallen a bit out of favor with investors, even as hotels continue to grow occupancy and room rates. According to its initial filing, Procaccianti Hotel REIT will seek to acquire a diverse portfolio of existing select-service, extended-stay, and compact full-service…

CRE Industry’s Favored Tax Code Treatments Facing Uncertain Future in Congress

The commercial real estate industry’s chief lobbying group Tuesday urged lawmakers to take a measured approach in deciding on changes to how commercial property and other corporate assets are taxed, cautioning that the elimination of the deduction for interest on debt and reducing the tax rate for pass-through business income could cause severe damage to the U.S. economy. While supporting a broad acceleration of economic growth through tax reform…

Facebook Takes 436,000 SF in San Francisco’s Largest Office Lease Since 2014

Facebook, Inc. has leased all 436,000 square feet of office space at developer Jay Paul’s 181 Fremont St., a 70-story office tower under construction in downtown San Francisco across from the Transbay Transit Center. The social media giant leased the space for about $80 per square foot and will occupy the entire office portion of the 802-foot-tall building, located less than a block from Salesforce Tower, the city’s tallest skyscraper. The lease…

Detroit Billionaire Unveils $2.1B Plan for ‘Transformational’ Motor City Downtown Developments

Quicken Loans founder, Cleveland Cavaliers owner and real estate investor Dan Gilbert this week announced details of his plans for a quartet of projects in downtown Detroit aimed at rebuilding the CBD of the Midwest’s second-largest city after Chicago. Bedrock, one of the ventures under Gilbert’s Rock Ventures LLC holding company, unveiled the $2.1 billion in projects that include redevelopment of the former J.L. Hudson’s department store site…

Ally Financial to Combine Operations in New Charlotte Office Tower

Crescent Communities will start construction early next year on a long-planned, 26-story office tower at 601 S. Tryon St. in Charlotte after signing Ally Financial Inc. (NYSE: ALLY) to a lease covering approximately 400,000 square feet in the proposed building. The agreement will enable Ally to consolidate its Charlotte-area operations and approximately 1,700 area employees within the 742,000-square-foot office building set to deliver in early…

Washington Prime Group Cuts Deal to Sell 41 Restaurant Parcels to Four Corners Property Trust

At a time of tightened liquidity for mall owners, Washington Prime Group Inc. (NYSE: WPG) is raising money where it can, that includes selling undervalued assets. The Columbus, OH-based REIT agreed to sell 41 restaurant outparcels to Four Corners Property Trust Inc. (NYSE:FCPT) for $67.2 million. This pricing reflects a mid-6% capitalization rate on in-place net operating income. Lou Conforti, CEO and director of Washington Prime Group, said…

Ameriprise Financial Unit to Acquire Houston-Based Lionstone Investments

Looking to extend its real estate investment capabilities across the pond, London-based Columbia Threadneedle Investments today announced that its privately owned investment manager, Columbia Management Investment Advisers, LLC in Boston, has agreed to acquire investment firm Lionstone Partners, Ltd. Financial terms for the transaction were not disclosed. Columbia Threadneedle Investments, formed in 2015 through the combination of Threadneedle…

Storm Fallout: Rebuilding Likely to Drive Up Construction Costs, Delay Project Timetables Across US

Now comes the clean-up, and with it a new set of challenges. Most notably is access to construction labor after a sharp upturn in contractors reported that they are having difficulty finding skilled workers, a trend certain to continue or worsen due to labor shortages in the wake of Irma and Harvey, according to the latest USG Corp./U.S. Chamber of Commerce Commercial Construction Index released this week. Even before the devastation inflicted…

Walgreens Wins FTC Approval of Downsized Deal to Buy 1,932 Rite Aid Stores

After again cutting the number of stores and other properties to satisfy regulatory concerns, Walgreens Boots Alliance Inc. (Nasdaq: WBA) received federal regulatory approval to acquire 1,932 Rite Aid Corp. (NYSE: RAD) stores and related assets for $4.38 billion cash. Deerfield, IL-based Walgreens said early Tuesday it secured clearance for a revised deal under which it will buy 254 fewer Rite Aid stores than under a previous proposal in June…

Rockpoint Group Takes Pasadena Office Bldg for $162 Million

Boston-based private-equity firm Rockpoint Group acquired the 12-story AT&T Building at 177 E. Colorado Blvd. in Pasadena from Saunders Property Co. for $161.5 million, or about $538 per square foot. The 300,000-square-foot office building, completed in 1973 as the regional headquarters of Pacific Bell, sold for roughly twice the $81 million that Saunders paid AT&T in April 2014. The telecommunications giant leased back 40% of the property and…