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|  Tuesday, October 30, 2007 |
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Dispositions boost Simon's profit in quarter
Simon Property Group Inc. sold four U.S. malls and five in Poland in the third quarter, netting the company $82.2 million and boosting its overall profit for the period to $164.9 million, 74.3 percent higher than the third quarter last year. Funds from operations for the three months were $418.7 million, a 13.3-percent increase over the year-ago period. The retail mall developer said it expects funds from operations for the year to hit the high end of its previously announced expectation of $5.83 to $5.88 a share.
Occupancy at the end of September in Simon's regional malls was 92.7 percent and 99.6 percent at its outlet malls; both slightly up from a year ago. Simon's lifestyle centers were 92.8 percent occupied, up just over 2 percent.
During the three months, Simon opened malls in Japan and Italy. Development of projects in Pennsylvania, New Jersey, Texas, Florida and Hamilton Town Center in Noblesville continued in the period. Simon has other retail mall projects underway in China and Italy.
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|  | Simon last week named CEO David Simon chairman of the board. He also will continue as CEO, a position he has held since 1995. Melvin Simon and Herbert Simon, who had been serving as co-chairmen, will continue serving on the board. The pair, who founded the real estate development company more than 45 years ago, will primarily focus on the company's international expansion.
Sales/acquisitions
- Desmond Ford Johnson, of California, bought a 12,000-square-foot office building at 3850 S. Emerson Ave. in Beech Grove. The purchase price was $1.2 million, according to paperwork filed with the Marion County Assessor's office. The seller of the multi-tenant building, which is 82-percent occupied, was Providence Partners 10 LLC of Fishers. Jason Speckman and Janice Paine of NAI Olympia Partners represented the seller.
- Indianapolis-based S&C Financial LLC bought a 6,700-square-foot office building at 1236-1238 N. Pennsylvania St. for $450,000. The purchase price was disclosed in paperwork filed with the Marion County Assessor's office. The seller of the building, which was owner occupied, was Inhabit Property Group LLC, also of Indianapolis. Rich Forslund and Matt Langfeldt of NAI Olympia Partners represented the buyer; Forslund represented the seller.
- Inhabit Property Group LLC bought a 20,000-square-foot office building at 211 S. Ritter Ave. from Fridlund Realty Corp. of Indianapolis. The purchase price was $320,000, according to paperwork filed with the Marion County Assessor's office. Inhabit Property Group will move into the building, which had been vacant. Rich Forslund and Matt Langfeldt of NAI Olympia Partners represented the buyer. Bill McLane of Indianapolis-based McLane Realty Inc. represented the seller.
Leases/leasing contracts
- Volt Information Sciences Inc. has leased 7,936 square feet in Capital Center at 251 N. Illinois St. Rich Forslund with NAI Olympia Partners represented the tenant. Dan Richardson of CB Richard Ellis represented the landlord, USA City LP.
- The State of Indiana Department of Child Services leased 5,203 square feet at 8606 Allisonville Road. Gus Sevastianos of the Indianapolis office of New Boston Citimark represented the landlord, New Boston Castle Creek II Ltd. Partnership. Caroline Karanja of Venture Real Estate Services LLC represented the tenant.
- Compendium Software LLC leased 2,021 square feet at 55 Monument Circle. Chris Carmen of Carmen Commercial Real Estate Services represented the tenant. The landlord, Circle Tower LLC, represented itself.
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| - Prospect Mortgage Group LLC leased 1,780 square feet at 2629 Waterfront Parkway E. Drive. Gus Sevastianos of the Indianapolis office of New Boston Citimark represented the landlord, New Boston Jacaranda Ltd. Partnership. The tenant represented itself.
Investments/financings/stock sales
Duke Realty Corp. said Oct. 25 that it began $487.5 million of new development in the third quarter. Included in the development mix that spans cities in Georgia, Texas, Ohio and Indiana, among other states, are two 120,000-square-foot office projects in Fishers and Indianapolis that will be held for rental. Among projects slated for sale is a 280,000-square-foot industrial building in Duke's AllPoints at Anson business park that was developed in partnership with Browning Investments Inc. Duke also reported $110.5 million in property sales, which included properties in Chicago and St. Louis.
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| Housing
- Countrywide Financial Corp. last week said it would offer to refinance up to $16 billion of adjustable-rate mortgages as a way to help borrowers facing imminent rate adjustments. Mortgage holders must be current on their loans to receive the help. The lender also will contact borrowers of another $2 billion in loans who are late on their loans and having trouble paying because of a recent rate reset and attempt to find a way to help them as well. California-based Countrywide is the largest mortgage lender in the country.
- The number of applications to refinance homes increased 4 percent last week, as mortgage rates declined, according to the Mortgage Bankers Association. Overall, mortgage loan activity gained slightly from the previous week. Rates on 30-year loans fell to 6.21 percent, from 6.4 percent. Interest rates on 15-year mortgages decreased to 5.86 percent, from 6.09 percent.
 People
- Dan Breault has joined ReMax of Indiana as regional director.
- Dennis Erwin has joined The Paragon Cos. as chief financial officer.
Whole Foods and a retractable roof
 Premier Properties, the developer of Venu at the southwest corner of 86th Street and Keystone Avenue, has acquired a 13-acre property across the street, where another developer had planned to build a Whole Foods grocery store and condominiums. Premier plans to develop the site with housing only. Whole Foods might locate in Venu if the natural foods store and Premier can strike a deal. New plans filed with the city this month show a pedestrian bridge crossing 86th Street and other project details, including plans for a retractable roof and wall sections that could make Venu an all-weather destination.
Read the item above and more real estate conversation starters at Property Lines, IBJ's real estate blog. You can link to the blog, which is hosted by real estate beat reporter Cory Schouten, at www.ibj.com.
Clarification
Tikijian Associates represented the seller of Sand Creek Woods, a 252-unit apartment complex in Fishers. The broker's role in the transaction, which included 13.1 acres of undeveloped land, was inadvertently omitted from last week's Real Estate Weekly.
Edited by Tracy Donhardt
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