A new Life Time fitness center is scheduled to open in the Northshore Mall in Peabody, Mass., in 2020. The center is part of a larger makeover that will include the closing of a Sears store there.
Perry Ellis International co-founder George Feldenkreis will take the company private in a deal valued at $437 million or $27.50 per share. The apparel designer and retailer launched in 1967, and Feldenkreis, who led as CEO for many years and stepped down as chairman in September, will return in a management position.
W.P. Carey will acquire Corporate Property Associates 17 Global in a deal valued at $6 billion that could position W.P. Carey as the second-largest net-lease REIT by market value with a market cap of $11 billion. The combined company's pro forma enterprise value would be $17.3 billion.
A Brookfield Asset Management unit may invest as much as $700 million of new equity into 666 Fifth Ave. and $1 billion of floating-rate debt to retire the mortgage on the property due in February, according to a source. Brookfield has been negotiating with Kushner Cos. to take a 50% stake in the property, but it would likely wind up with a larger share with this capital infusion.
LaSalle Hotel Properties plans to move ahead with its sale to Blackstone after deciding to reject a competing offer from Pebblebrook Hotel Trust. Pebblebrook has doubled its stake in LaSalle to 9% of its outstanding common stock.
Manhattan office leasing volume rose 18% month over month in May to 4.17 million square feet, according to Colliers International, and the second quarter is performing very well. One looming challenge for landlords is that 7 million square feet of office space is coming online this year, with millions more in the pipeline.
A joint venture between KKR and Parkway Property Investments has acquired a 30-story, 522,000-square-foot Miami office tower from PGIM Real Estate. Sources say the JV has paid $250 million for the tower, called Sabadell Financial Center.
Condor Hospitality Trust has generated $170 million in sales from its disposition of 55 hotels over the past 12 months, according to President and CEO Bill Blackham. The REIT redeployed the proceeds into newer assets which helped it outperform the industry in terms of revenue-per-available-room growth and margin expansion.
Once passive places to buy goods, retail centers now must provide attractions to engage people in doing "stuff," writes Jon Bird. Examples include Cirque du Soleil entering a Toronto center with a circus-inspired playground and Westfield's "Destination 2028" vision, which transforms shopping centers into connected, interactive activity centers.
To improve consumer spending, Polish shopping center operator EPP is working to move into smaller cities and less affluent areas. Improved consumer spending, more disposable income and a higher minimum wage are helping make these nontraditional cities more desirable for retail.