Sacramento sees intl tourism boom

from today's Sacramento Bee (7/31):

Capital's in the money: Dollar's fall lures tourists

By Darrell Smith - dvsmith@sacbee.com
Published 12:00 am PDT Thursday, July 31, 2008

"International tourists are taking advantage of a slumping dollar and planning their summer stays in Sacramento.

Whether it's the euro, pound or yen, tourists are getting more bang for their buck in the United States and increasingly are choosing California as a destination, say those in the local tourism industry.

"The U.S. is effectively on sale to the world," said Mike Testa, a vice president at the Sacramento Convention and Visitors Bureau. "California is an international draw, and Sacramento is the capital of that international draw."

More than 17 percent of tourism spending in California last year – about $17 billion – was attributed to international visitors, reported the California Travel & Tourism Commission. Nearly 22 percent of all overseas visitors to the United States in 2007 chose California as their destination." ....

for the complete story

British Columbia green resort moving into residential development stage

from today's GlobeSt (7/31):

Last updated: July 29, 2008 10:47pm

Five-Star Resort To Get First Residential Units
By Connie Gore

"VICTORIA, BC-Looking to leverage its oceanfront views, the developer of Brentwood Bay Lodge & Spa will break ground in the coming months on the five-star resort's first residential phase. The six villas will deliver in late spring 2009, opening the door to a marketing blitz for a 24-condo phase two.

The resort's OceanVillas development is expected to be one of the first multi-unit projects to deliver in Canada with LEED for Home certification. The two three-story buildings will have two-bedroom units, with dens and great rooms, averaging 1,850 sf at prices ranging from nearly $1.4 million to $1.79 million. The amenity package includes a private 40-foot boat slip in the resort's full-service marina.

The two residential phases will add a combined $22 million of sales value to the $20-million resort, which opened in May 2004, says Dan Behune, managing director and developer of the two-acre Brentwood Bay Lodge & Spa. He tells GlobeSt.com that ground will break "as soon as we get our permits," estimating the milestone will be marked within 50 days. He confides the permit request will go into the city before this week ends." ...

for the complete story

Porsche to PA

from today's GlobeSt (7/31):

Last updated: July 31, 2008 07:27am

Porsche To Move to Chrin Commerce Centre
By Casey Freeman

"EASTON, PA-Porsche Cars North America Inc. plans to move into a 130,000-sf build-to-suit facility in the Chrin Commerce Centre. The building will be the new home of Porsche’s Northeast Regional Support Center which is made up of a Porsche Academy Training Center, Porsche’s Area East Office and new Northeast Parts Distribution center." ...

for the complete story

San Diego's University Towne Center to be redeveloped

from today's San Diego Business Journal (7/31):

Posted date: 7/30/2008

$900M Project Will Remake UTC Mall


"The San Diego City Council approved a $900 million mixed-use expansion project at Westfield UTC in University Towne Center July 29.

The project is estimated to bring the city more than $60 million in annual sales and property tax revenues, more than 2,500 new full- and part-time jobs and more than 6,000 construction jobs, according to Westfield, the Australian-based developer." ...

for the complete story

Disney up, then down

from today's Los Angeles Business Journal (7/31):

Disney Shares Decline on Slow Ad Spending

By ALLEN P. ROBERTS Jr.

"A day after posting strong second quarter earnings, shares in Walt Disney Co. lost nearly 5 percent after the entertainment company said ad sales have slowed in recent weeks." ...

for the complete story

Athens Olympics impact on hotel industry

from today's Hotels newsfeed (7/31):

Athens Hotel Industry After Athens Olympics
-- Hotels, 7/31/2008 8:13:00 AM
Contributed by Dr. Aris Ikkos, ISHC, MAE, Managing Partner; Stefan Merkenhof, Managing Consultant

"So, what was the impact of the Athens Olympics on the Athens Hotel Industry? Comparing the performance of the Athens Hotel Industry with 2 competitive sets of 27 European cities and 8 Mediterranean cities1 for the period of 2003 – 2007, one can conclude that Athens’ occupancy picked up substantially after the 2004 Olympics reaching the average European level and exceeding the average Mediterranean level in 2007. Furthermore, although Athens’ Average Room Rate (ARR) followed the European and Mediterranean trend, it still is at a much lower level. As a result Athens’ Revenue Per Available Room (RevPAR) remains below that of European and the Mediterranean but the gap is slowly closing." ....

for the complete story

PKF begins hotel financing program

from today's Hotels newsfeed (7/29):

PKF Capital Launches Hotel Financing Program
PKF Capital -- Hotels, 7/29/2008 10:18:00 AM

"Moving to address critical financial needs in funding today’s hotel transactions, PKF Capital announced the launch of a Hotel Finance Program designed to help hospitality investors and owners secure funds required to purchase, refinance or renovate properties.

“Securing adequate capital is the primary issue today that determines whether a hotel deal succeeds or fails,” says PKF Capital Executive Managing Director Bob Eaton. “With our new program, we are moving aggressively to help our clients transact business. We are rounding out the suite of services that the PKF family of companies offers, from consulting, hospitality research, through brokerage.”" ...

"Bridge financing can also be made available through PKF Capital’s sources when owners are repositioning a property by reflagging it or by making property improvements and a period of improving cash flow is required in order stabilize the property’s permanent income.

Hotel refinancing is also a critical need today where properties’ current loans are maturing and borrowers need to find funds to refinance existing loans with permanent debt"......

for the complete story

Thank you Nathan and Emily

On behalf of all of ERA, we had a going away fete for Nathan (who you all know) and Emily (who you may not all know, but she was a wonderful research asset). You will be pleased to know that we sent them off happily and well appointed for their futures --

new items

Freshly arrived and available to you and yours.....

local and regional real estate/business news

Crain’s Chicago Business (7/14): Pullman neighborhood plans

CA Real Estate Journal (7/14): appraising green buildings

Los Angeles Business Journal (7/14): Bollywood and Hollywood; Union Pacific and the Port of L.A.

CA Real Estate Journal (7/21): office market update feature; property management of green buildings

Western Real Estate Business (July): green development by region

Los Angeles Business Journal (7/21): feature section on medical office market

San Diego Business Journal (7/14): Port of San Diego economic trends; downtown real estate markets

Los Angeles Business Journal (6/16): Hollywood real estate market

New Orleans City Business (6/30) 6 Flags redevelopment

Crain’s Chicago Business (6/30): Cubs revenue up

CA Real Estate Journal (6/10): Anaheim’s GardenWalk phase 1 opens

Crain’s Chicago Business Journal (6/16): Marina deal and Olympics bid; special feature on potential economic impact of the Games

CA Real Estate Journal (7/7): Chino Hills lifestyle center; affordable housing financing

Los Angeles Business Journal (6/23): list of top retail centers

Los Angeles Business Journal (6/9): mansion market still up

San Fernando Valley Business Journal (7/7): Warner Bros. Studio Museum opened; studios and city incentives; city focus on Burbank

Los Angeles Business Journal (7/7): MLS Galaxy attendance up; L.A. condo sales up, prices down

Crain’s Chicago Business Journal (6/23): Cubs' sale saga; IL tourism feature including Lincoln Museum, College Football Hall of Fame, lists of Chicago’s largest tourist attractions, largest conventions, and largest hotels

San Diego Business Journal (6/30): top tourist attractions; casino/gaming industry slumping

CA Real Estate Journal (6/30): OC mid-rise housing; Riverside downtown redevelopment project; green feature section

Crain’s Chicago Business (7/7): Chicago attractions seeing attendance dip; special demographics facts sections

Crain’s Chicago Business (6/9): Chicago Olympics bid

New Orleans City Business (6/9): Audubon Insectarium; City Park development

Orange County Business Journal (6/23): Dana Point Harbor redevelopment

New Orleans City Business (6/16): port plans; WTC plans

Indian Country Today (7/23): Cherokee Nation plans OK sportsplex; MI Grand Travese Casino going green; Red Lake Casino breaks ground (MN); Seminole compact reversed in court; Black Bear Casino (MN) opens after renovations; Ottawa Co., OK casino resort successful

CA Real Estate Journal (6/23): L.A. MTA seeking private funds for Westside expansion; OC office real estate market tough; Boyle Heights redevelopment ops

general business news

Forbes Life (Jun): Carolina golf resorts

Business Week (6/23): Abu Dhabi Investments

Economist (6/28): biofuels in Brazil; Las Vegas casino market

Business Week (7/7): Six Flags Mark Shapiro interview

Fortune (7/21): Georgia Aquarium

International travel to the U.S. up

from yesterday's press release of the USDoC International Trade Administration (7/14):

INTERNATIONAL VISITATION UP IN APRIL 2008
SPENDING AT $11.6 BILLION FOR THE MONTH

"WASHINGTON - The U.S. Department of Commerce today announced that 4.1 million international visitors traveled to the United States in April, an increase of 2 percent over April 2007. For the first four months of 2008, visitation was up 12 percent compared to 2007. International visitors also spent a record $11.6 billion in April, a 21 percent increase from April 2007. Spending by international travelers while in the United States, including travel receipts and passenger fares, is defined as a U.S. export." ....

for the complete press release

for the monthly data archive

Historic Pullman District (Chicago) redevelopment plans

from this morning's Crain's Chicago Business Journal (7/14):

Big plans for Pullman
By: Thomas A. Corfman July 14, 2008

"Billionaire banker Michael Kelly is picking up where utopian visionary George Pullman left off.

The non-profit development arm of Mr. Kelly's flagship Park National Bank has acquired the former Ryerson Inc. steel plant on the Far South Side with plans for a retail-residential development that would revitalize an area the hardnosed industrialist founded as a workers' village in 1881.

The 170-acre Ryerson site at 720 E. 111th St. abuts Park National's 10-story office building along the Bishop Ford Freeway and the landmark Pullman District, where many of the buildings from Mr. Pullman's quixotic experiment still stand.

Crain's has learned that Mr. Kelly envisions a development with up to 1,000 single-family homes in keeping with the adjacent Pullman District's architecture, as well as big-box stores. Development on such a scale hasn't been seen on the South Side since the postwar era, and the project could transform a largely dormant industrial area into a new neighborhood.

About one-third of the site, which stretches north to about 103rd Street between the Bishop Ford and a railroad line just east of Langley Avenue, likely would be dedicated to a new community center or a park, with the rest split between residential and retail developments, a person familiar with the proposal says.

The price tag for such a development could exceed $100 million." ...

for the complete story

TX retail development trends

from this morning's GlobeSt (7/14):

Last updated: July 11, 2008 11:44pm

Houston's 5M-SF Retail Pipeline Leading State
By Connie Gore

"HOUSTON-Feeding "shop till you drop" lifestyles, developers in all four Texas metros are in the throes of a retail construction frenzy. The Greater Houston market, with its cache of top-ranked economic indicators, has 4.9 million sf in various stages of construction, putting it at the head of the state's Big Four.

Dallas/Fort Worth has 4.2 million sf in line to deliver by year's end. San Antonio developers are pushing four million sf out of the ground. And Austin, with its 92.5% occupancy leading the metro pack, is getting an additional 2.5 million sf.

"The best thing about the construction is it is demand-based," says Ian Pierce, who is in the marketing and research division of Dallas-based Weitzman Group and Cencor Realty Services. "Nothing is getting built without the retailers in place."

The snapshots for each metro are:

Houston--a 134.2-million-sf inventory that's 88% occupied. The construction wave, with 1.5 million sf delivering by midyear, is 0.5% lower than yearend 2007 due to construction. Rents are as high as $50 per sf inside Loop 610 while class A shop space is getting in the mid- to high $20 per sf range while endcaps and out-parcels are pushing toward the $40 per sf mark.

Dallas/Fort Worth--a 167.9-million-sf inventory with 89.4% occupancy, up a tenth of point since the year began. Rents were unavailable, but it's a safe bet they closely follow Houston.

San Antonio--a 34.5-million-sf inventory, with occupancy at 91% or two-tenths lower than it was at yearend 2007. Class A rents for inline shop space range from $24 per sf to $30 per sf on a triple net annual basis while some "key projects" have topped $50 per sf.

Austin--a 38-million-sf inventory, with the 92.5% occupancy up 0.5% in the past six months. Class A inline spaces in high-traffic, anchored suburban centers range from $24 per sf to the mid-$30 per sf on a triple net annual basis. According to the Weitzman-Cencor report, the capital city's rates are being impacted by concessions, both free rent and finish-out allowances.

Houston's development pipeline is the highest it's been in seven years when six million sf delivered. There were 15 major projects under way. "They were coming off that incredibly strong economy of 2000," Pierce says." ....

for the complete story

Baton Rouge condo-hotel announced

from this morning's Globe St (7/14):

Last updated: July 11, 2008 11:39pm

Lafayette Development Unveils $135M Project
By John McCloud

"BATON ROUGE, LA-The developer of a Downtown project, originally proposed as a residential condominium tower with a small amount of retail space, has unveiled a new plan that would place 49 to 75 condos atop a 330-room hotel. Locally based Lafayette Development Holdings Ltd. hopes to have the $135-million RiverPlace under construction by January.

Lafayette partner Richard Preis says the absence of an established high-rise condominium market prompted the change. "Baton Rouge really doesn't have a condo market," he explains. "With the general problems in the residential market, we decided the original scheme didn't make sense." RiverPlace, planned for 427 Lafayette St., would take 18 to 24 months to complete."

for the complete story

Chinese tourism about to blossom in U.S.

from Investor's Business Daily (7/9):

Chinese Tourism In The U.S. Set To Boom BY DOUG TSURUOKA

INVESTOR'S BUSINESS DAILY
Posted 7/9/2008

"British businessmen in the 19th century quipped that if every Chinese citizen bought a shirt, it would keep English textile mills humming for 100 years.

Imagine the impact on Chinese and U.S. travel firms in 2008 if just some of the 1.3 billion people in China started visiting the Statue of Liberty or Waikiki.

Get ready — signs point to a hefty increase in Chinese sightseers hitting U.S. tourist hot spots. Online travel companies such as Ctrip, (CTRP) Expedia (EXPE) and Priceline (PCLN) are poised to benefit in big ways.

The U.S. and China in December signed a pact that lets Chinese tourist groups travel to the U.S. for the first time. Only business execs and government officials had been allowed to travel here before." ...

"The first Chinese tour group of 200 visitors were greeted in Washington, D.C., on June 19 by Commerce Secretary Carlos Gutierrez." ...

"The number of Chinese citizens traveling overseas will hit 100 million a year by 2020 from 34 million in 2006, estimates the World Tourism Organization.

Chinese visitors to the U.S. have doubled over the last decade to 397,000 last year, Commerce says. The number is expected to reach a robust 755,000 by 2017, according to research firm Tourism Economics. The recent tour pact could push the number higher.

The China National Tourism Administration estimates that nearly 30 million Chinese traveled abroad in the first nine months of 2007, up 17% vs. the year-ago period. Hong Kong, Macau and Japan were top destinations. But many are expected to turn their sights to the U.S." ...

for the complete

story

St. Regis to open in Dubai

from today's Hotels newsline (7/10):

St. Regis makes the next stop on its global expedition with the debut of The St. Regis DubaiMiddle East Company News Wire, July 10, 2008 Thursday 9:16 AM GMT

"Starwood Hotels & Resorts Worldwide, Inc. today announced the introduction of its renowned St. Regis brand to the rapidly growing city of Dubai. Scheduled to open in 2012, The St. Regis Dubai and The Residences.

The St. Regis Dubai will feature 220 luxuriously appointed guest rooms, including 44 Suites, and 80 branded residences as well as three world-class restaurants, two bars, a fitness center, swimming pool, shops and more than 4,500 square feet of meeting and banquet space." ...

"Offering sweeping views of the Dubai Creek extension, the magnificent new property will be a featured component of the Starhill Towers & Gallery, a high-rise, mixed-use development owned and developed by ETA Star Property Developers. Featuring world-class retail, office, hospitality and residential components, the mixed-use project will occupy prime real estate in central Dubai within the multi-billion dollar Business Bay development, a nearly 21 million square-foot master plan by Dubai Properties." ...

for the complete
story

CONGRATULATIONS, Mike Wright and Midge McCauley

Our ERA folks contributed vital analyses to ULI's latest edition of the Development Handbook Series -- Retail Development.


If someone would take Midge's photo with her volume, we'd have a complete record of the happy event.

"Gateway at Southpoint" mixed use with hospital, hotel, etc, for Denison, TX

from this morning's GlobeSt (7/8):

Last updated: July 8, 2008 11:56am

$750M-Plus MXD Project Adding Hotel, Med Center
By Connie Gore

"DENISON, TX-After three years of laying the groundwork, TPJ Properties Ltd. and Brody Associates Inc. are digging into the second phase of the 500-acre Gateway at Southpoint. The mixed-use project will top $750 million of development at build-out.
Gateway at Southpoint's only space to date is Cigna Insurance Co.'s 150,000-sf service center, which was built early last year on 15 of the developer's 500 acres at the junction of US Hwy. 75 and FM 691. But, construction crews are now moving dirt for a 145-key Hilton Garden Inn and adjoining 17,000-sf event center on a 5.5-acre tract and 36-acre Texoma Medical Center, which will have 252 beds, 26-bed emergency room, 32-bed ICU and 120,000-sf medical office building.

Second Century Investments of Plano, TX, holding an option for a second project, will open the Hilton Garden Inn in fourth quarter 2009. King of Prussia, PA-based Universal Health Services Inc. is planning to bring the medical center on line in first quarter 2010." ...

"... the first phase of support retail will break ground in first quarter 2009 and a 750,000-sf town center will begin to rise in 2011." ...

"Meanwhile, talks are under way with developers for a 30-acre seniors' housing project and 250 multifamily apartments. The master plan includes up to 250,000 sf of additional medical office and 100 acres for townhouses and single-family dwellings. The project's first retail out-parcel has been snapped up by Landmark Bank." ...

for the complete story

Hainan Island to get Morgan Stanley backed resort

from this morning's GlobeSt (7/8):

Last updated: July 8, 2008 01:52am

Morgan Stanley in $774M Resort Deal
By Ian Ritter

"HAINAN ISLAND, CHINA-Morgan Stanley is paying $774 million to gain a 30% interest in China-based Agile Property Holding Limited’s development here of a vacation resort. Called the Hainan Qingshuiwan Project, the development is reported by local media to have an area of 9.7-million sm.

Both firms are partnering on the development of the resort. It has been reported that the project will include two 18-hole golf courses and six five-star hotels, two of which will begin construction by the end of the year." ...

for the complete story

MS Children's Museum under construction

from this morning's GlobeSt (7/8):

Last updated: July 7, 2008 08:21pm

$25M Children's Museum Ready to Break Ground
By John McCloud

"JACKSON, MS-Ground will break Aug. 8 on the long-awaited Mississippi Children's Museum. First conceived in the 1990s and originally scheduled to go into construction last fall, the $24.5-million project was delayed as backers sought additional funds.
Only a bit more than $18.5 million had been committed to the museum's capital campaign by the end of June, but museum board member Bill Bynum, CEO of Jackson-based Enterprise Corp. of the Delta and Hope Community Credit Union, says the organization has enough money to start work on the 43,000-sf project at 2140 Riverside Dr. in LeFleur's Bluff State Park. Completion is planned for early 2010." ...

"The museum's executive director, Susan Garrard, says she believes the project will be one of the best children's museums in the world. According to the Association of Children's Museums in Washington, DC, there are 341 children's museums in 23 countries. The organization says about one quarter of them are still in startup." ...

"The Jackson project will include 20,000 sf of exhibit space and 23,000 sf of administrative and support space. The 500-acre state park also is home to the Mississippi Museum of Natural Science, a 73,000-sf building at 2148 Riverside. The location of the two museums side by side is expected to boost the city's tourist potential by attracting families throughout the region," ....

for the complete story

China, industry, and The Games

from today's Business Week Asia Insider (7/8):

China: An Olympic Loss for Industry
Strict limits on production during the Games will be felt across the Mainland—and by consumers abroad
by Dexter Roberts and Chi-Chu Tschang

"Beijing - Hebei Taihang Cement has been on a roll lately. Its three Beijing plants have been running around the clock, churning out thousands of tons of cement needed to build venues such as the "Bird's Nest" stadium, where opening ceremonies for the Beijing Olympic Games will be held on Aug. 8.

But the good times may be about to end. The government has ordered Taihang to shut down its Beijing operations for two months starting on July 20, until both the Olympics and the Paralympics (for handicapped athletes), slated to run from Sept. 6-17, are over. Its 400-plus employees will busy themselves with training courses and equipment repairs, and Taihang will see its cement output fall this year by 500,000 tons, or 9% of its annual capacity. If neighboring Hebei Province also orders cutbacks, as many expect, the damage could be even worse for Taihang—its headquarters and another big plant are located there.

Taihang isn't alone. In an effort to clear Beijing's murky skies for the 10,000 athletes and half-million foreign visitors expected for the Olympics, China is ordering broad restrictions on much of the capital's industry. Another measure will impose strict limits on the number of cars on the roads during the Games. And the industrial shutdown is likely to extend to a broad swath of northern China and other Olympics venues such as the industrial city of Shenyang, where some soccer matches will be played, and the port of Qingdao, home to sailing events." ...

for the complete story