 |
 |
 | | | |
|  Tuesday, May 6, 2008 |
|
Duke, CBRE form $800M joint venture
Duke Realty Corp. and CB Richard Ellis Realty Trust have formed a joint venture that will buy from Duke up to $800 million of developed industrial buildings over the next three years.
The agreement calls for the joint venture to buy six properties this year. The properties span 5.2 million square feet and are valued at $250 million. The locations of the projects could not immediately be identified.
Properties will be acquired by the venture once leasing begins on the completed buildings. Duke will be paid fees related to construction, management and leasing of the properties.
"This venture will allow Duke to retain an interest in key bulk industrial build-to-suit projects, recycle a significant amount of capital, and strengthen its private capital track record with the ultimate goal of launching additional funds," said Duke CEO Denny Oklak in a statement.
|  | | | |
|  |
High-priced homes on market longer, but still selling
Homes for sale in central Indiana priced above $500,000 are staying on the market twice as long as those priced under $200,000, but not all residential agents who specialize in selling high-end homes are worried. According to The Landrigan Quarterly, at the end of March there was an 8-month supply of homes priced under $200,000 and a 16-month supply of homes priced between $500,000 and $900,000. Homes above the $900,000 price were at a 56-month inventory level. "You have to look at the residential market as two separate markets," said Laura Musall, an agent with F.C. Tucker Co. "The real divider amount is $400,000. Above that, it's a very different market. It is more challenging. They do tend to be on the market longer." 
Sales/acquisitions
Colorado-based Continental Realty Advisors bought Riverchase Apartments, a 216-unit complex near Interstate 74 and Crawfordsville Road. Financial terms were not disclosed. Steve LaMotte and Amy Burmeister of CB Richard Ellis represented the seller, Carmel-based The J.C. Hart Co. It is the first acquisition in the Indianapolis market for the buyer, which represented itself in the deal.
Leases/leasing contracts
- Verizon leased 14,277 square feet at 9755 Crosspoint Boulevard in Fishers. John Robinson of Meridian Real Estate represented the tenant. Rick Trimpe of CB Richard Ellis represented the landlord, Young Realty Crosspoint Six LLC.
- Agency One Security Group LLC leased 2,250 square feet at 14060 Britton Park Drive in Fishers. Brian Dell of Mann Properties represented the landlord, Fishers Trade Flex LLC. The tenant, which provides locksmith services, represented itself.
- Collision on Wheels of Indy North leased 2,100 square feet at 8501 Bash St. near Castleton. Brian Dell of Mann Properties represented the landlord, Bash Business LLC. The tenant, a mobile collision repair company, represented itself.
Investments/financials/stock sales
Simon Property Group Inc. posted first-quarter funds from operations of $420.1 million, up 7.1 percent from the year-ago period. Occupancy at Simon's regional and lifestyle malls held mostly steady at 91.7 percent and 93.3 percent, respectively. Occupancy fell to 97.9 percent, from 99.1 percent, at Simon's outlet malls. Among Simon's ongoing projects are Hamilton Town Center, a 950,000-square-foot lifestyle retail center in Noblesville and the addition of a Nordstrom at The Fashion Mall at Keystone. The mall developer also has eight projects in development outside the United States.
| | | |
|
- Duke Realty Corp. reported $89.2 million in funds from operations in the first quarter. This compares with $92.5 million in the year-ago quarter. Duke's 673 properties were 92.9-percent occupied at the end of the quarter, down from 94.9 percent at the end of 2007. The company had $1.8 billion of projects in development during the quarter; more than $1 billion of which it will sell upon completion. The real estate developer sold $44.1 million of properties and spent $28 million on acquisitions in the quarter.
- The NAREIT composite index gained 6.10 percent in April, the second consecutive monthly gain after four months of decline. The NAREIT index is made up of about 200 publicly traded real estate investment trusts in such sectors as industrial, retail, mortgage, self-storage and residential. In comparison, the NASDAQ gained 5.87 percent last month and the Dow Jones industrials gained 4.54 percent. Indiana's REIT stocks performed as follows in April: Duke Realty Corp. gained 1.8 percent, Simon Property Group Inc. gained 0.2 percent and Kite Realty Group Trust fell 5.7 percent.
|  | | | |
| Housing
- One of every 116 Indianapolis-area homeowners was in foreclosure during the first quarter, ranking the metropolitan area 24th in the country, according to RealtyTrac. Indianapolis' 6,330 foreclosures in the three months included filings, default notices, auction sale notices and bank repossessions. The number is up 35.5 percent from a year ago and up 17 percent from the fourth quarter 2007. Statewide, Indiana ranked 11th for foreclosure activity in the quarter with one foreclosure for every 198 homeowners, an 85-percent increase over the year-ago period.
- The number of home sold in central Indiana fell 15 percent, to 5,442 units, in the first three months of the year compared with the same period in 2007, according to the Metropolitan Indianapolis Board of Realtors. The number of homes sold for the 12 months ended March 30, 2008, is down 10 percent from the prior 12-month period. Pended sales in the first three months fell 10 percent, to 6,706 units, from a year ago. New listings also fell, declining 7 percent, to 14,295 homes. Both the average and median sale price are down 3 percent, to $139,032 and $112,000, respectively.
- Mortgage interest rates remained mostly steady last week from the week before, according to Freddie Mac. Rates on 30-year mortgages averaged 6.06 percent, compared with 6.03 percent the week before. Rates on 15-year loans averaged 5.59 percent, down slightly from 5.62 percent a week earlier.
Other news
The National Association of Industrial and Office Properties has launched an Indiana chapter online at www.naiop.org/Indiana. NAIOP is a trade group for developers, property owners, investors, asset managers and others in commercial real estate. Doug Swain, with First Industrial Realty Trust, is president of the local chapter.
 People
Jeffrey Merritt has joined Summit Realty Group as director of site acquisition and office advisory services.
 A new Cosmopolitan view
Go to Property Lines to check out a new rendering of the $33 million Cosmopolitan on the Canal project. Locally based Flaherty & Collins Properties is building on a site bordered by the canal, Senate Avenue, Michigan Street and North Street. Plans call for 218 apartments, 18,000 square feet of retail space and a 338-space parking garage. A restaurant, dry cleaner and coffee shop are among the tenants the developer seeks.
Correction: Chimera Property Management is based in Indianapolis. An item in last week's Real Estate Weekly named the wrong city.
Compiled by Tracy Donhardt, tdonhardt@ibj.com
Edited by Tom Harton
| | | |
| | |
| | |
| | |
No comments:
Post a Comment