Urbanexus Update - Issue #38
I strive to understand what creates opportunities—and challenges—for real estate investment and sustainable community development. Learn more about me at http://www.urbanexus.com/about-h-pike-oliver/.
The economy in the USA
Great Recession hurt the middle class—twice Brad Hershbein writes how the middle class is still feeling the effects of the Great Recession, both geographically and from wage growth.
Significant real estate transactions
Ares Closes Real Estate Fund at $1 Bn
Los Angeles-based Ares Management Corp. closed the Ares U.S. Real Estate Fund IX at $1.04 billion. The fund looks at value-add opportunities in multifamily, industrial and office investment properties. The Ares Real Estate Group had $10.6 billion of assets under management in Q3 2018.
Harbor Group International sells three apartment portfolios for $700MM
HGI has sold three apartment portfolios in Florida, Connecticut and Texas for a total of $700 million. The portfolios included seven properties totaling 2,284 units in Central Florida; two properties totaling 568 units in Connecticut; and 12 properties in Dallas and Houston totaling 3,100 units
Stone Point Capital closes $340 MM buy of Rialto Investment from Lennar
Lennar Corporation (NYSE: LEN and LEN.B) reported that, on November 30, 2018, it completed the sale of its Rialto Investment and Asset Management business to investment funds managed by private equity firm Stone Point Capital for $340 million. Diane Bessette, CFO of Lennar, said, “We are very pleased to announce the successful execution of this transaction, which is a significant component of our strategy of reverting to our pure-play core homebuilding platform.”
Not an HQ2, but a big deal
Hines to develop Salesforce’s regional HQ in Chicago
A partnership led by Hines has released plans for Salesforce Tower Chicago, a 57-story office tower that will serve as the new regional headquarters for Salesforce (NYSE: CRM). The San Francisco-based software firm is expected to bring 1,000 jobs to Chicago in connection with the project. Salesforce Tower Chicago will be located in the city’s River North area at the site formerly known as Wolf Point South. Designed by Pelli Clarke Pelli, the project is slated for completion by 2023.
An HQ move
USA's sixth largest firm relocating from CA to TX
McKesson Corp. will move from San Francisco to the Dallas are. The company, which delivers prescription drugs and medical supplies, has more than 75,000 employees globally and had revenue of $208 billion last year. It ranks sixth on the Fortune 500 list, behind only Walmart, Exxon Mobil, Berkshire Hathaway, Apple and UnitedHealth Group.
Community design and development
Hollywood development plan — product.costar.com
The iconic Hollywood Hills, made famous for their open spaces surrounding the well-known Hollywood sign, would be preserved through the year 2040 while streets below become more heavily developed under a new plan for the Los Angeles neighborhood known for its movie studios.
New apartment building sameness
A wave of sameness has washed over new residential architecture. U.S. cities are filled with apartment buildings sporting boxy designs and somewhat bland facades, often made with colored panels and flat windows.
Retail real estate
JLL opens first retail store of its own
In an attempt to increase activity and sales at a Minneapolis-area mall, Jones Lang LaSalle (JLL) has opened a store of its own at the center. The store, Rose & Loon, offers a "flea-marketing shopping experience at Rosedale Center ,a regional mall in Roseville, MN.
Changing shopping habits make warehouses 'the new retail' — product.costar.com
Record annual leasing is driving strong rent growth and a heavy supply of new industrial space as online shopping boosts demand for warehouses and distribution centers.
Environment and resiliency
Five myths about climate change What’s happening isn’t natural — and almost all scientists agree.
Global carbon emissions reached a record high in 2018 — www.washingtonpost.com The figures suggested there is no clear end in sight to the growth of humanity's contribution to climate change.
China will not exit coal any time soon
Carbon-heavy fossil fuel to remain vital for the country’s energy independence.
What California’s deadly wildfires signal about our future — time.com The Camp Fire—which devastated Paradise, California—was exceptional. But scientists say fires like it are only a taste of what’s to come.
Strict building codes helped Anchorage
The magnitude 7.0 earthquake that rattled Alaska's largest city cracked roads and collapsed highway ramps, but there were no reports of widespread catastrophic damage or collapsed buildings.
Sustainable investing is moving into the main stream
Environmental, Social and Governance (ESG) concerns are at the forefront of investing as never before. An extraordinary confluence of factors and developments has helped catapult sustainable investing from a niche into the main stream.
Around the world
No-deal Brexit would reduce UK commercial real estate values by 5-9%
Forecasts by Capital Economics substantially more optimistic than Bank of England’s.
Philanthropy
Marcus & Millichap founder and wife give $25 Million to San Francisco State University — news.sfsu.edu
This gift, combined with a recent $1.8 million Athletics scholarship fund gift from the couple, represents the largest donation — $26.8 million — in the history of San Francisco State.