Chinese Developer Buys Office Tower Parcels Near Seaport

Beijing-based investment company China Oceanwide Holdings, founded in 1985 by Mr. Zhiqiang Lu, announced this week that it had purchased two lots adjacent to the South Street Seaport development in New York for $390 million (or HK$3B). The two parcels at 80 South Street and a neighboring site at 163 Front Street were sold by Howard Hughes Corp., the developer behind the new Seaport. Howard Hughes acquired the two sites over the past year, and combined they could be the site of an 820,000-square-foot tower with 440,000 square feet of residential space and 380,000 square feet of commercial space. CBRE brokers Darcy Stacom, Bill Shanahan and Paul Leibowitz handled the sale on behalf of the Howard Hughes.

The site at 80 South St. has long been envisioned as a location for a soaring structure, according to a Crain's report. Construction manager and developer Frank Sciame planned a unique-looking tower there designed by architect Santiago Calatrava, but eventually abandoned the complex project.

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Laurus Buys Hughes Center for $111M

Real estate investment and development firm Laurus Corporation announced this week that it had purchased the Promenade at Howard Hughes Center, an approximately 250,000 square-foot retail center positioned along the 405 Freeway at Sepulveda Boulevard. According to an OC Register article, Laurus Corp. paid $111 million for the property with plans to spend $30 million to renovate the property. Irvine investment firm Passco Cos. sold the property; full terms of the deal and representation were not disclosed.

The renovation marks the first major investment in the property since it was constructed in 2001. "Our decision to acquire the Promenade at Howard Hughes Center and invest at this level demonstrates our confidence in an important, growing community, and the purchasing power of the residents and employees who live and work in such close proximity – both in the Howard Hughes Center and in Playa Vista," said Jean Paul Szita, President and co-founder of Laurus Corporation. "Our significant investment aligns well with our core strategy of adding value to compelling assets in prime locations, and will help set a solid foundation for the long-term vision for the property."

Positioned along the west side of the 405 Freeway, the Promenade at Howard Hughes Center is viewed by nearly 725,000 people traveling on the main traffic artery each day. The center is also in close range of the Silicon Beach movement in Playa Vista, which has attracted companies including Google, Yahoo!, IMAX and Electronic Arts, among many of the most progressive technology companies in the country. This marks the second big deal of the year for Laurus, according to a Los Angeles Business Journal article. In February, the firm spent a submarket-high $52.5 million for a 163,000 square-foot, eight-story building in Pasadena from Heitman.

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Howard Hughes Corp. Invests $70M in New Orleans Riverwalk

The Howard Hughes Corporation announced this week that it would be investing approximately $70 million in the redevelopment of Riverwalk Marketplace in New Orleans to create a new upscale outlet center in the heart of the city called The Outlet Collection at Riverwalk. Howard Hughes Corp. originally acquired the center in 2011 and these new plans will create the nation's first outlet location in an urban setting. The mall has seen its share of change in recent years, with fewer national retailers and more small shops. Store occupancy at the mall dipped as low as 30% after Hurricane Katrina, but rebounded in recent years to as high as 90% according to a WWLTV news item. Artist renderings show upgrades in the facility's design, and plans call for an expansion of about 50,000 square feet.

"Our redevelopment and repositioning of this storied riverfront property will bring well-known, popular retail and entertainment establishments, many which will be new to New Orleans," said Grant Herlitz, President of The Howard Hughes Corporation. "Beyond the impact of these compelling options for locals and tourists, we are pleased to be part of the continued revitalization of New Orleans given the many benefits this development will represent to the city."

The Outlet Collection at Riverwalk will showcase top national retailers with established outlet stores as well as some local retail, dining and entertainment options. Many of the retail establishments will be the first location in Louisiana, New Orleans and the Gulf region for their respective brands. Construction should begin by mid to late fall and should be complete in time for the holiday season next year.

Rod Miller, President and CEO of the New Orleans Business Alliance said, "This investment by the Howard Hughes Corporation further underscores the opportunity and viability of the New Orleans market. The New Orleans Business Alliance is passionate about improving the city’s retail landscape and believes this project has potential to be catalytic in anchoring the Canal shopping district. We will continue to work with Howard Hughes and the City to see this project and others like it to completion."

"This planned redevelopment proposes a new tenant mix that will restore Riverwalk as a favorite place to shop for tourists and locals alike and is another step in making New Orleans a regional shopping destination," said New Orleans Mayor Mitch Landrieu in a Times-Picayune article.

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