AIA Projects 13% Fall in Commercial Construction
January 6, 2010
The American Institute of Architects (AIA) is forecasting that office, retail and hotel development may fall 13% this year. In July, they were forecasting 12%. ndustrial construction spending is likely to slump the most this year, 24 percent, and an additional 7.8 percent in 2011, the institute said. The group expects hotel building to also fall about [...]
Read More >>HNN Compiling List of Funds Targeting Hotels
November 19, 2009
HNN has begun to compile a list of funds seeking to invest in hospitality assets. The list compiled so far indicates that there is about $38B out there chasing hotels, though some $20B of that comes out of of Blackstone and Lone Star. Click the link before to go to the list. Given that hotels [...]
Read More >>Luxury Hotels at Risk – Bloomberg Video
September 24, 2009
We’ve already seen numerous defaults in luxury hotels in San Francisco, some strategic defaults, others out of pure distress. Nonetheless, the pressure is mounting. We’ve been at a point now where RevPAR has been under immense pressure for quite some time, coupled with significant speculative acquisitions which took place over the past few years by [...]
Read More >>Sunstone Checking Out of Another Hotel
September 17, 2009
Sunstone Hotel Investors Inc. is giving back a second hotel to its lenders. Sunstone, a real-estate investment trust that owns 40 upscale hotels in the U.S., disclosed Wednesday that it intends to forfeit the 293-room Marriott Ontario Airport hotel in Ontario, Calif., to the servicer overseeing the hotel’s $26.6 million securitized mortgage. A few months [...]
Read More >>Hotel Owners Losing Their Grip
June 8, 2009
One real estate sector that is most susceptible to moves in the economy is the hospitality sector and this economic cycle has been brutal for hotels. Occupancy levels are around 55%, with the expectation that they will continue to decline through the end of the year. Additionally, very little growth is anticipated next year. As such, [...]
Read More >>Cupertino Approves Main Street Project
February 2, 2009
Sand Hill Property Company has secured city council approval for its Main Street project in Cupertino. Sand Hill went into contract on the vacant 17.4 acre property in 2007 for $65M ($85 psf) from Hewlett Packard, and closed the transaction in early 2008 through a debt and equity package provided by Principal Real Estate Investors. [...]
Read More >>RCA Data on Distressed and Troubled Assets
January 28, 2009
Found at RetailTraffic, the chart to the left (click for larger view) shows which sectors the distress is in commercial real estate. Development looks to be in the most distress, followed by office, retail, apartment, hotel, and industrial. The total dollar amount of this distress is $25.6B (across more than 1,000 assets). The chart also [...]
Read More >>Land Deal Approved by City Council; Earthquakes Stadium One Step Closer
May 22, 2008
The San Jose city council approved a plan by Oakland A’s and San Jose Earthquakes owner Lew Wolff to develop a mixed-use office, hotel, and retail project near the San Jose airport. The property which encompasses 66 acres will contain roughly 100K SF of retail, a 300-key hotel, and 1.5 million square feet of office [...]
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