Global Viewpoints

Creative Kingdom To Build Mixed-Use Film Production, Residential, Entertainment Development in Thailand

Edited: Jennifer Brenner Andrade
Source: Creative Kingdom

Creative Kingdom, a creator of themed design architecture and destinations, including Dubai’s Palm Island and World Island, today unveiled plans for Chiang Mai Wood (CNX-Wood), a 175-acre mixed-use movie studio and residential development in Chiang Mai, Thailand. Once completed, the sprawling complex will house the state-of-the-art CNX Movie World Studios, as well as an integrated network of self-sufficient residential neighborhoods, a wide variety of entertainment offerings, cultural venues, museums and world-class restaurants.

“CNX-Wood is sure to become one of the most advanced mixed-use destinations in the world, and we are extremely excited by its potential,” said Eduardo Robles, chief executive officer, Creative Kingdom, Inc. “The new CNX Movie World Studios will serve as the hub for Asia’s booming film industry and become one of the premier destinations for the world’s movie makers. In addition, the integrated nature of the facilities will be unrivaled in providing its residents, from those looking for a vacation or second home to those seeking an unmatched luxury lifestyle, with the perfect mix of entertainment, culture and life balance.”

The CNX Movie World Studios will feature a series of state-of-the-art film production studios, animation facilities and special effects laboratories. The facilities will provide film makers with the most advanced tools and technologies for developing and producing top quality domestic and international movies.

The development includes multiple residential neighborhoods, including villa and luxury housing, that will be connected to the film facilities via an integrated network of bike and walking paths. Each neighborhood will be fully independent, with its own infrastructure, stores, libraries, schools, medical facilities, water/electrical services, shopping, parks, entertainment and cultural venues.

In addition, a wide variety of entertainment offerings will be spread out over nine specially-themed areas in the complex. Movie theaters, a water park, theme parks, beach club, a man-made lagoon and a Japanese-themed amusement center are just some of the diverse features residents and visitors alike will discover.

For businesses, the complex will offer brand new corporate office buildings for international headquarters or regional bureaus. It will also be fully equipped to host corporate gatherings, conferences, events, product launches and other important functions.

The CNX-Wood development will be completed over five stages, beginning with the film studios.

Creative Kingdom’s global headquarters are based in Los Angeles, with offices on Dubai, UAE; Beijing, China; Chiang Mai, Thailand; and Pasig City, Philippines.

Phelps Portman Nashville, LLC Selected to Develop, Design and Build 1,000-room Convention Center Headquarters Hotel in Nashville, Tenn.

Edited: Jennifer Brenner Andrade
Source: Phelps Portman Nashville LLC

The Nashville Metropolitan Development and Housing Agency (MDHA) announced that it has selected Phelps Portman Nashville, LLC to develop, design and construct a 1,000-room hotel adjacent to the planned new Music City Center in downtown Nashville. Plans call for the hotel to feature approximately 100,000 square feet of meeting space and ballrooms, as well as retail outlets and restaurants.

During construction, the hotel will employ 750 - 800 workers at the height of construction and approximately 725 full-time employees when the hotel opens. The hotel is an integral part of the proposed downtown convention center project.

Phelps Portman is composed of Phelps Development, a subsidiary of Hensel Phelps Construction Company, a leading construction company, and Portman Holdings, a leading international developer of some of the world's most iconic real estate. They will be responsible for overseeing the project to completion, including design, construction, purchasing and installation of all furnishings and equipment and start up of the hotel in coordination with the hotel operator.

"We reviewed 10 proposals and examined qualifications in detail," said Phil Ryan, MDHA Executive Director. "A hotel of this scale requires special expertise to bring to fruition. The Phelps Portman group has been involved with the development of 10 hotels with 1,000 or more rooms, including the 1,190-room Hilton San Diego Bayfront Hotel, which recently opened on time and on budget to rave reviews. The Phelps Portman team has completed more than 30 LEED certified projects and this hotel also will be highly energy efficient."

Selection of the development, design and construction team represents the latest major step in moving the convention center complex project forward. "Design and development currently are underway for the convention center building, and the selection of this team will now get the hotel under way," Ryan said. "This headquarters hotel is integral to the success of the convention center. Our goal is to open the hotel in the fall of 2012."

Key participants in the project include:

Developers

• Phelps Development -- A subsidiary of Hensel Phelps Construction Company, Phelps Development has more than 30 years of experience in developing major real estate projects, with a focus on public private partnerships. Its projects include sophisticated hotels, urban developments, amusement parks and office complexes.
  
  
• Portman Holdings -- a full-service real estate development company with more than five decades of experience. The company has extensive expertise in developing hotels, retail space and convention space. The firm has raised more than $1.7 billion of capital in the public and public/private sectors to underwrite projects in the past decade.
  
  Architects
  
  
• John Portman & Associates, Inc. (JPA) -- Headquartered in Atlanta with offices in Shanghai, China, JPA is an internationally recognized architectural and engineering firm. Established in 1953, the firm has designed some of the world's most highly recognized developments, including hotels, university buildings, offices, trade marts and mixed-use urban complexes.
  
  
• Earl Swensson Associates (ESa) -- Founded in 1961, ESa is headquartered in Nashville and is the city's most experienced architect in the field of hospitality design. The firm has designed more than 8,500 projects in the U.S. and abroad.
  
  General Contractor/Construction
  
  
• Hensel Phelps Construction Co. -- Established in 1935 and headquartered in Greeley, Colo., Hensel Phelps is ranked as one of the largest general contractors in the United States, with annual volume in excess of $3 billion.
  
  
• R.C. Mathews Contractor -- Headquartered in Nashville, R.C. Mathews Contractor has served the Middle Tennessee market for nearly 70 years. Their work includes a number of landmark projects, including renovations to the Ryman Auditorium, the first Center for the Visual Arts, The Hermitage Hotel and the Montgomery County Courthouse.
  
  
• Morgan & Morgan -- The Nashville-based firm has nearly 20 years experience in a wide range of project management services, including program management and quality control services.
  
  Financial Advisor
  
  
• Urban America -- Based in New York, Urban America is an integrated financial advisor that specializes in placing the financing for major public private projects. Urban America will lead the effort to develop a favorable public private financing structure for the project.

The Phelps Portman team will commence conceptual design of the hotel working in close cooperation with MDHA. Steps to follow include financing, construction and outfitting and start-up of the hotel.

Sunstone Hotel Investors Sells the Marriott Riverside, California for Gross Proceeds of $19.3 Million

Edited: Jennifer Brenner Andrade
Source: Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. has completed the sale of the 292-room Marriott located in Riverside, California for gross sale proceeds of $19.3 million, which equates to 10.1x 2009 forecasted EBITDA.

Art Buser, President and Chief Executive Officer, stated, "The sale of the Marriott Riverside demonstrates our ability to monetize non-core assets at an attractive valuation in a very challenging transaction environment. This transaction will improve our already strong liquidity position, and we are confident that over time the net proceeds will deliver higher returns to our stockholders if deployed towards value enhancing capital investments elsewhere within our core portfolio of hotels."

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 42 hotels comprised of 14,463 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood.

AvalonBay Opens Sustainable Living Project

Edited: Jennifer Brenner Andrade
Source: AvalonBay

AvalonBay Communities, a Real Estate Investment Trust (REIT) with multi-family apartment communities in high barrier-to-entry markets of the United States, recently opened Avalon at Mission Bay III, located in San Francisco, CA.

Avalon at Mission Bay III, which consists of 260 units, represents the third phase of the company's Mission Bay development and will be managed together with Avalon at Mission Bay North. It was built and will be maintained in an energy efficient and environmentally friendly manner, underscoring the company's commitment to sustainable development. Avalon at Mission Bay III is conveniently located near public transportation, and includes on-site recycling, easy access to Zipcars and top-performing Energy Star rated appliances. It is also one of the first green apartment buildings in San Francisco and the company has submitted for LEED certification, an independent third-party verification that a building project is environmentally responsible and a healthy place to live and work.

In an effort to reach out to the community and support local causes, Avalon at Mission Bay III has also teamed-up with Creativity Explored by commissioning artwork from the non-profit organization. Creativity Explored enables adults with developmental disabilities to express themselves artistically in a way that is personally rewarding and appreciated by others, and works to enrich the community by increasing awareness of the value and diversity of artistic expression. Avalon at Mission Bay III has been collaborating with Creativity Explored for the past year on the artwork and will be displaying it in public areas around the community. A number of the pieces are centered around the theme of sustainable transportation which was one of the key objectives in the planning of the community.

To celebrate the grand opening, AvalonBay will host a ceremony at Avalon at Mission Bay III this evening with over 100 guests including executives from the company, representatives from Creativity Explored and local community members and leaders. Guests will be given tours of the new development and have the opportunity to view the artwork from Creativity Explored first-hand.

Commenting on the grand opening, Meg Spriggs, Senior Development Director, Avalon Bay Communities said, "This is an exciting day for both AvalonBay and for the community. Avalon at Mission Bay III responsibly expands our presence in San Francisco, complementing our existing communities, and advances the company's green initiatives. Most importantly, it provides residents with a high quality, sustainable living experience. We are also proud to partner with Creativity Explored, an organization that is making a positive impact on the community. By showcasing the tremendous artwork we commissioned from their artists, we are taking advantage of local resources, creating an aesthetically-pleasing community and heightening awareness of this great cause."

"Partnering with Avalon at Mission Bay III was an excellent opportunity for Creativity Explored to fulfill its mission to increase the public's awareness of the talents of artists with developmental disabilities, as well as showcase our Art Services Program to the greater Bay Area residential and business communities," said Amy Taub, Executive Director of Creativity Explored.

"We are very proud of this project and the artwork that was specially created for Avalon at Mission Bay III. It is a thrill to see Creativity Explored studio artists' work installed in a space designed to display art. Many of the artworks were commissioned to highlight the talent, diversity of styles, and creative achievements of our artists, while other pieces were selected to complement the building's unique architecture and interiors."

Avalon at Mission Bay III includes studio, one-bedroom, and two-bedroom apartment options and superior amenities such as designer kitchens and baths, full-size washer and dryer and walk-in closets. It also features a 24-hour concierge, private fitness center, community areas, garage and storage.

Grubb & Ellis Company Forms Joint Venture With Meridian Companies

Edited: Jennifer Brenner Andrade
Source: Grubb & Ellis

Grubb & Ellis Company, a leading real estate services and investment firm, has formed an Energy & Infrastructure Advisors LLC, a joint venture between Grubb & Ellis and the Meridian Companies that intends to sponsor retail and institutional investment products focused on pursuing opportunities in the energy and infrastructure sector.

"This is a strategic partnership between a major national real estate investment firm and a leading provider of financial services to the energy industry that will deliver unique investment opportunities to individual and institutional investors in a compelling emerging sector," said Jeff Hanson, president and chief investment officer of Grubb & Ellis' investment and asset management subsidiary.

Since its founding in 1981, various Meridian affiliates have completed equity transactions totaling in excess of $15 billion with more than 150 institutional clients, including approximately $5 billion of alternative energy projects in the biomass, coal bed methane gas, coal-based synthetic fuel, solar, geothermal and wind sectors. Meridian's client base includes major money center banks, national insurance companies, global financial services firms and both investor-owned as well as cooperative utilities.

Grubb & Ellis, through its investment and asset management subsidiaries, has raised approximately $4.2 billion in investor equity since 1998, and currently manages a real estate portfolio valued in excess of $6.8 billion across 32 states. Through its managing broker-dealer subsidiary, the company has agreements with an extensive network of broker-dealers with approximately 219 selling relationships providing access to more than 38,000 licensed registered representatives as of December 31, 2008. One of the leading sponsors of publicly registered, non-traded real estate investment trusts (REITs), Grubb & Ellis and its subsidiaries raised $197.8 million in equity in the first quarter of 2009, representing a 167 percent increase over the same period in 2008.