CAPRE’s Commercial Real Estate Headlines for November 4, 2019

Check out the latest deals and developments in commercial real estate for November 4, 2019:

  • Kennedy Wilson Acquires 406,000 Square-Foot San Francisco Bay Area Office Campus for $115 Million USD: Global real estate investment company Kennedy Wilson has acquired Hamilton Landing, an institutional quality, wholly owned office campus with seven buildings across 20 acres in Marin County, California for $115 Million USD. The Company invested $55 Million USD of equity and assumed a $60 Million USD interest-only loan at a fixed rate of 4.34% maturing in 2025. Hamilton Landing was built in the 1930’s as an Air Force base, decommissioned in the 1970’s and then converted into Class A creative office space in phases between 2000 and 2008. Kennedy Wilson acquired Hamilton Landing through a 1031 exchange with proceeds generated from the recent sale of two multifamily properties: ShorePark, a 393-unit apartment community in Sacramento, California, and Indigo Springs, an apartment community with 302 units in Kent, Washington. The Company had a 50% interest in these two assets, which were sold for $176 Million USD and generated cash to Kennedy Wilson of $63 Million USD.
  • UNIQLO becomes first tenant for Philipsburg Industrial Property: Trendy Japanese retailer UNIQLO has signed a major industrial lease deal at Bridge Development Partners’ Bridge Point 78 development. While Bridge Development did not divulge the exact size of the lease transaction at the former Ingersoll Rand site, in Lopatcong Township and Phillipsburg, the Chicago-based firm states that UNIQLO, a Japanese clothing designer and manufacturer, has signed a lease at Bridge Point 78 and will be one of the largest tenants in its six-warehouse, 3.85 million-square-foot complex. It also describes the deal as largest lease to date nationally across Bridge Development Partners’ five-market portfolio. UNIQLO’s new warehouse will occupy significant space in the park’s second largest building, the largest in the initial phase of the project that multiple reports state totals approximately 975,761 square feet. The Class-A, state-of-the-art warehouse building will feature 40-foot clear ceiling heights and ample trailer and truck parking, and will enable cross-docking.
  • Citymark Capital, InterCapital Group Acquire Atlanta Multifamily Portfolio for $69.4 Million USD: National real estate private equity fund manager Citymark Capital, in partnership with InterCapital Group, has acquired a two-property, 554-unit Evergreen apartment portfolio in the Atlanta suburb of Fairburn, GA for $69.4 million. The acquisition of the Evergreen portfolio represents Citymark’s 12th transaction since its inception in 2015, bringing total units acquired to 3,345 and approximately $513 million of gross asset value. The 310-unit Evergreen Park and 244-unit Evergreen Terrace are gated, garden-style communities, located approximately five miles apart in Fairburn, a bedroom community 17-miles south of downtown Atlanta. Evergreen Park and Evergreen Terrace, built in 2002 and 2008 respectively, include a mix of one,- two- and three-bedroom apartment homes. Evergreen Terrace also offers a four-bedroom floor plan.
  • AirBnb Restrictions Eased, Rent Hikes Softened in Los Angeles: November 1 was a big day for Los Angeles renters and landlords alike. The Los Angeles Times is reporting that, under a new program approved last week, “LA will cushion the blow of rent hikes for some tenants facing big increases. The Emergency Renters Relief program is meant to help tenants who are facing “exorbitant” hikes before California implements a new law capping rent increases. Under the program, L.A. will provide payments for up to three months to help eligible tenants who are facing rent increases exceeding 8%, according to housing officials.” Meanwhile, LA is also loosening one of the key restrictions in its new rules clamping down on Airbnb-type rentals, allowing people to host travelers in some units covered by the Rent Stabilization Ordinance. The legislation applies chiefly to older apartments in L.A. and limits rent hikes annually for tenants. “The City Council voted last year to ban such units from being offered up for short stays, part of a broader set of restrictions on short-term rentals. The rules formally went into effect in July, but the city said it would hold off on enforcing them until November,” writes the Times.
  • Report Finds NYC Housing Not Keeping Up with Jobs: The City of New York has released a digital report titled The Geography of Jobs,which finds that New York isn’t building enough housing to keep up with job growth. In fact, the city’s housing production declined an average of 25 percent from the pre- to post- Great Recession eras. “Though NYC produced relatively consistent numbers of new housing units pre- and post-Great Recession, job growth significantly outpaced housing production in the last decade—by a rate of 3.6 net new jobs for every unit permitted,” the report reads.

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