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Microsoft, Citadel and Elliott Management are all in talks to lease office space in South Florida, adding fuel to the trend of major tech and finance firms expanding in the region.

Seattle-based Microsoft is reportedly in talks to lease 30,000 square feet at 830 Brickell, a 57-story office tower being developed by Vlad Doronin and his joint venture partner Cain International, according to Business Insider.

Billionaire Ken Griffin’s Chicago-based hedge fund Citadel is also eyeing 830 Brickell, and is on the hunt for up to 80,000 square feet in Miami. Griffin has been acquiring land on Miami Beach’s Star Island, and his Citadel Securities has been operating a temporary trading room in Palm Beach since the pandemic began.

Baker McKenzie is also in talks for space at 830 Brickell, according to Business Insider.

MSD Partners, the private investment firm of Dell Technologies billionaire Michael Dell, provided a $300 million loan to construct 830 Brickell in 2019. WeWork was announced as an anchor tenant, though it’s unclear whether the co-working operator will still be a tenant. When it is completed in 2022, the building will mark the first new large Class A office tower in the downtown Miami market in the last decade.

Elliott Management, the hedge fund founded by Paul Singer, is expected to sign a 40,000-square-foot lease at Related Companies’ 360 Rosemary office tower in downtown West Palm Beach. (Related is expected to close on the nearby Phillips Point office towers for $282 million.) Elliott Management has been looking in the market for months, the Palm Beach Post reported.

New Day USA, a mortgage company based in Maryland, is also reportedly finalizing a lease for about 50,000 square feet in the same building as Elliott Management.

Blackstone Group announced earlier this year that it is taking 41,000 square feet at 2MiamiCentral, an office building at the mixed-use MiamiCentral development, anchored by Brightline.

Virtu Financial plans to sign a 10-year lease in Palm Beach Gardens to relocate about 30 people from New York, Bloomberg previously reported.

 

Source: The Real Deal

The ink isn’t dry on Blackstone Group’s $18 billion buy of a U.S. warehouse portfolio, and it’s already negotiating to sell part of it.

The company, which finished its transition into a corporation this month, is drumming up interest from potential buyers for pieces of the GLP Pte portfolio, Bloomberg reported. Prologis is in private discussions to buy one such portfolio, valued at $1 billion.

Blackstone’s $18.7 billion deal for the Singaporean company’s 179 million-square-foot warehouse portfolio is one of the largest industrial real estate deals ever.

Selling non-core or non-strategic pieces of a recently required purchase isn’t uncommon. Blackstone applied the same strategy in 2007 when it sold off parts of its $40 billion acquisition of Equity Office Properties Trust.

On the whole, the warehouse sector has seen little supply, high demand and high prices, with available industrial and logistics real estate rising slightly for the first time in 34 quarters, according to a CBRE report. Demand for warehouse and distribution reached an 18-year high in 2018.

Large owners are optimistic that there will continue to be institutional investment in industrial real estate. As Prologis negotiates for a piece of Blackstone’s new holdings, it’s also in advanced talks to buy another $4 billion portfolio from Black Creek Group which spans 37.6 million square feet.

Colony Capital is weighing the sale of its $5 billion industrial in holdings on the heels of selling another warehouse portfolio for $104.6 million.

 

Source: The Real Deal

Prologis just sold a portfolio of properties in Broward and Palm Beach counties to Chicago-based Equity Office for more than $110 million, property records show.

The portfolio includes industrial buildings in Delray Beach, Mangonia Park, Hollywood, Dania Beach, Fort Lauderdale, Pompano Beach and Coconut Creek. The deal was financed with an $83.5 million loan from Wells Fargo.

Equity Office, which is owned by the Blackstone Group, also bought properties in Seminole and Miami-Dade counties, as well as Illinois and Wisconsin. The sales in Miami-Dade County have not yet cleared records. Prologis and Equity Office were not immediately available to comment.

Records show the Blackstone affiliate picked up an industrial complex at 430 South Congress Avenue for $9.5 million and an industrial site at 1335 West 53rd Street for $4.6 million.

In Broward, industrial complexes at 3601 and 3613 North 29th Avenue in Hollywood sold for $23.5 million; properties at 3700 North 29th Avenue, 3401 North 29th Avenue and 5555 Angler Avenue in Dania Beach sold for $14.6 million; buildings at 3600 Northwest 35th Avenue, and 5535 and 5545 Northwest 35th Avenue in Fort Lauderdale closed for $12.1 million; and the warehouse complexes at 2800 North Andrew Avenue in Pompano Beach and 4801 Johnson Road in Coconut Creek sold for a combined $39.7 million.

The properties were originally owned by KTR Capital Partners, which was acquired by Prologis and Norway’s sovereign wealth fund in 2015 for $5.9 billion.

Equity Office owns a portfolio of more than 50 million square feet of office space across the country, according to its website. Blackstone acquired its assets in a $39 billion leveraged buyout in 2007.

 

Source: The Real Deal