Farbman Group Buys Chase Tower

An affiliate of Southfield, Michigan-based NAI Farbman Group, an investment group that operates commercial properties throughout the Midwest, has purchased the Chase Tower in downtown Milwaukee for $30.5 million. The office tower was sold by Breof Bank Midwest LLC, an affiliate of Toronto-based Brookfield Asset Management Inc.; "Breof" stands for Brookfield Real Estate Opportunity Fund. According to a Milwaukee Business Journal report, Farbman has been eying the property for several years now, which Brookfield placed on the market in October 2014.

The property was officially purchased by 111 W. Wisconsin Property Owner LLC, which is registered to NAI Farbman Group. Cushman & Wakefield's Chicago office marketed the building for Brookfield Asset Management, which bought the office tower in 2006 at the peak of the commercial real estate market for $45.8 million. The sale includes the connected parking structure at 543 N. Water St. Terms of the deal were not disclosed.

The new owners have plans to upgrade Chase Tower's first and second floor commons areas and adding amenities. "We're going to take its natural bones and make it better," said Andrew Farbman, chief executive officer of NAI Farbman Group. "There is a lot to draw from and the downtown location is fantastic. There is some access to public transportation now, and Milwaukee is growing in that area, plus the residential footprint in the Third and Fifth wards is something we're really fired up about."

Chase Tower, one of downtown Milwaukee's largest office buildings, was designed by Harrison & Abramovitz and completed in 1961. The 22-story office building was originally known as the Marine Plaza (which was the largest office building in Milwaukee until 1973 U.S. Bank Center build), and later as Bank One Plaza until their merger with Chase. The building was 86% leased at the time of sale, with major tenants including JPMorgan Chase, Infinity Healthcare, WUWM Public Radio and the law firm of O'Neil, Cannon, Hollman, DeJong & Laing.

For more news and information visit Blumberg Partners.

 

Meridian Picks Up International Place for $107M

Bethesda, MD-based Meridian Group has purchased International Place, a 12-story office building in Rosslyn, Virginia from Beacon Capital Partners, which paid $99 million for the property in 2007. According to a Commercial Real Estate direct report, Meridian purchased the building for $106.5 million, or $362.80 per square foot, in a sale that was brokered by Cushman & Wakefield. CBRE's Malcolm Schweiker and Erik McLaughlin handled leasing prior to the sale; Meridian did not disclose future leasing plans, but did indicate it would continue property improvements.

"International Place is in an ideal location at the base of Central Place, now under construction, so it's primed for positive growth," Gary Block, managing director and partner of The Meridian Group, said in a statement. "We are pleased that we were able to acquire an asset with such exceptional potential."

"International Place is strategically located in the heart of the dynamic Rosslyn market," said Bill Collins, Cushman & Wakefield Vice Chairman. "Rosslyn is quickly transforming itself into a world class city with the delivery of Central Place across the street and the coattails of additional retail and residential development that will follow."

"This area is quickly evolving into a vibrant downtown," added Bruce Lane, executive vice president and co-founder of The Meridian Group. "It's an incredible transformation, and we're excited to be a part of it. [...] We have plans for a number of other improvements, including upgrades to the building's lobby and other common areas."

The 12-story office building at 1735 Lynn Street underwent a $4.4 million round of improvements under Beacon, including the addition of a fitness center and conference center, and is LEED Gold and ENERGY STAR certified. Meridian said it plans to upgrade the building, which sits across the street from the Rosslyn Metro station, to improve the lobby and other common areas. Meridian's Gary Block said that the 90% occupied asset is an "older, Class B building" in an "A-plus location."

For more news and information visit Blumberg Partners.

GSA Picks Site for new FBI Complex in VA

The General Services Administration (GSA) Mid-Atlantic Region announced that it has selected and purchased approximately 60 acres of land for the site of the FBI's Central Records Complex (CRC) in Winchester/Frederick County, Virginia. The federal agency paid $4.75 million for a site in Frederick County, Virginia off U.S. 50 where it plans to build a $109 million facility where more than 440 employees would work, according to a Virginia Business report. The purchase and development plan is part of the agency's strategy to condense the bureau's vast records repositories into one site.

"The centralization of FBI records consolidates records from 265 current locations into a single facility," said Joanna Rosato, Regional Commissioner of GSA's Public Buildings Service in the Mid-Atlantic Region, in a press release. "The CRC will provide the infrastructure and technology for the FBI to continue to digitize records on demand."

The site at 2117 Millwood Pike, known as Arcadia, will support construction of approximately 256,000 Gross Square Feet facility, including a secure perimeter, visitor screening center and truck screening facility, guard booth, and surface parking lot. The new facility will be National Archives and Records Administration-compliant secured, with environmentally conditioned, fire-protected space that will provide records storage combined with material handling and operational support areas. The FBI said it digitizes at least 20 million pages per year to make them searchable and CRC will house both infrastructure and technology for the bureau to carry out the digitization effort.

For more news and information visit Blumberg Partners.

F4 Transbay Locks Down Last Super-Tall Building Site

F4 Transbay Partners LLC announced this week that it has closed on the acquisition of Transbay Parcel F from the Transbay Joint Powers Authority (TJPA), securing the last remaining site available for development of a super-tall building in downtown San Francisco. F4 Transbay Partners, a joint venture between Hines, Urban Pacific Development, Broad Street Principal Investments and Goldman Sachs, paid $175 million for the site on Howard Street, between First and Second streets, where it plans to build a 60-story, 750-foot-tall, mixed-use tower containing office space, a luxury hotel and residential units.

"With the sale of Parcel F, we will have sold more than $660 million worth of land to fund construction of the Transit Center," said Maria Ayerdi-Kaplan, executive director of the Transbay Joint Powers Authority. "The land sold for private development will also generate more than $1 billion in tax increment to fund the Transit Center." With the Parcel F sale, TJPA has the funding for Phase 1 of the Transbay project, having sold more than $660 million worth of land to fund construction of the Transit Center; according to a report from The Registry, private development will also generate more than $1 billion in property tax increment for the project.

F4 Transbay Partners also received an extra $15 million for the site because it was able to acquire a contiguous piece of privately owned land at 540 Howard Street, referred to as Block 4. "Our vision for Parcel F and Block 4 will create core located transit-oriented Class A office space, hotel rooms, and a substantial supply of affordable housing in the most dense and dynamic neighborhood in San Francisco. The success of our proposal would not have been possible without the combined efforts of F4, the TJPA, the OCII and the City,” Hines Senior Managing Director Cameron Falconer said in a press release.

"We are pleased to have this opportunity to develop one of the key buildings in the dynamic Transbay Project area,” added Mike Kriozere, Principal of Urban Pacific. "What we create will be an asset to this vibrant neighborhood, and we look forward to enhancing San Francisco and its skyline with our plans for a mixed-use tower on Parcel F."

F4 Transbay Partners has announced the project will be designed by Pelli Clarke Pelli Architects in partnership with the local office of HKS Architects, Inc., who will act as architect of record.

For more news and information visit Bluberg Partners.

Scottsdale Perimeter Center Portfolio Sold for $122M

Desert Troon Companies, a Scottsdale, Arizona-based real estate development firm, has sold a portfolio of five Class-A office buildings in Scottsdale's Perimeter Center for $122 million, or $191 per square foot. The portfolio was purchased by a joint venture between Phoenix-based Wentworth Property Co. and NY-based Northwood Investors with representation from Cushman & Wakefield in Phoenix, which will handle leasing for the properties. According to a press release, the acquisition was partially funded by an $80 million loan provided by Western Alliance Bank.

"As one of the premiere office portfolios in the state, it has been Desert Troon Companies' privilege to manage this standout portfolio with our partners," said Daniel Smith, CEO of Desert Troon Companies. "Desert Troon Companies used this strategic disposition of assets to continue its targeted value add acquisition strategy." The properties in the portfolio include:

Perimeter Gateway I, a 228,147-square-foot office compound at 8667 and 8701 E. Hartford Drive;
Perimeter Gateway II, an 80,040-square-foot office building at 8777 E. Hartford Drive;
Perimeter Gateway V, a 65,848-square-foot office at 8665 E. Hartford Drive;
Perimeter Gateway III, a 84,237-square-foot office at 8660 E. Hartford Drive; and
Terra Verde, a 180,445-square-foot office building at 16767 N. Perimeter Drive

The Wentworth/Northwood venture said it plans to make major improvements to the Perimeter Gateway portfolio, including the addition of two parking structures, remodeling lobbies and common areas, and adding cafés and a fitness center. The venture will also convert 162,000 square feet of existing office space in all five Perimeter Center buildings to spec suites, with the currently vacant space to be transformed into creative office space with open ceilings and modern finishes. A portion of the Western Alliance Bank loan will be used for some of the planned improvements. "This portfolio offered optimal location, so with our plans to remodel common areas, add amenities and build-out spec suites we are confident that the available space in the buildings will attract considerable interest from new tenants and successfully lease up," explained Jim Wentworth, Jr., principal with Wentworth Property Co.

For more news and information visit Blumberg Partners.

Cole Makes Largest Industrial Deal in Tampa Bay

Cole Office & Industrial REIT (CCIT II), Inc., a Phoenix-based public, non-listed REIT formed in 2013, has purchased a 1.1-million-square-foot fulfillment center in Florida for $103.6 million, marking the largest industrial property sale in Tampa Bay history in terms of both size and value, according to Cushman & Wakefield data. The massive fulfillment center at 3350 Laurel Ridge Avenue in Ruskin, Florida was sold by San Antonio-based USAA Real Estate Co., which bought the land in 2013 from Minneapolis-based Ryan Companies U.S. Inc. for $14.63 million to develop the warehouse. Terms of the sale were not disclosed.

"The property's state-of-the-art features, outstanding location and limited competition made this an exceptional investment opportunity," said Mike Davis of Cushman & Wakefield, which represented the seller, USAA Real Estate Co. "We believe that it truly is the highest-quality industrial building in Central Florida." in 2013, county commissioners voted to waive half of Amazon’s property tax bill for the first seven years, or about $6.4 million in total, Tampa Bay Times reported.

USAA Real Estate Co., which works with Amazon in developing its distribution centers, signed a long-term lease with the internet giant for the warehouse that's responsible for picking, packing and shipping items for most orders to Florida, and created 2,500 new jobs in Ruskin. Since the Ruskin Amazon facility opened on Sept. 17, 2014, it has more than doubled its workforce, from 1,000 full-time employees to more than 2,500, said Chris Monnot, the general manager. A renovation of the center, which is the size equivalent of more than 28 football fields, was completed in October 2015. That project added new levels of work space, more conveyors and workstations, and made it larger in terms of cubic square footage than Amazon's other Florida facility in Lakeland.

For more news and information visit Blumberg Partners.

JV Sells $190M Office Project In Denver to Invesco

Denver-based developer East West Partners and a controlled affiliate of Starwood Capital Group announced the sale of an office project in Denver's Union Station neighborhood to Invesco Real Estate. According to a Denver Post article, East West Partners will stay on in its role as developer of the $190 million project, and Invesco ultimately will own the completed office tower, which broke ground last week. Terms of the deal and representation were not disclosed, but records show that Invesco paid $18 million.

"This is a unique opportunity for all of the parties involved," said Chris Frampton, Managing Partner of East West Partners. "The building is 81% leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition. It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate."

"We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut," added Dan Schwaegler, Senior Vice President in the Asset Management Group at Starwood Capital Group. "Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area, and we look forward to watching the city's continued emergence as one of the most dynamic metropolitan areas in the United States."

16 Chestnut will be a 19 story building with above grade parking incorporated into the structure, anchoring the fourth and final corner of the Millennium Bridge. The architect for the project is Gensler, while BuildMark will provide construction management services and Saunders Construction will serve as general contractor.

For more news and information visit Blumberg Partners.

 

Align Buys Comcast Office Center for $59M

Holliday Fenoglio Fowler, L.P. (HFF) announced that it has brokered the sale of the Comcast Office Center campus in Livermore, California that serves as the regional headquarters for the cable company. HFF represented the seller in the transaction, Gramercy Property Trust, which originally acquired the property in June 2009 for $49 million. The three building portfolio was sold to San Francisco-based Align Real Estate for $59 million. The sale is part of Gramercy's previously announced plan to dispose of select single and multi-tenant office assets, which has so far disposed of approximately $722.5 million of single and multi-tenant office assets at a weighted average 6.1% exit cap rate.

The Comcast Office Center was 100% triple net leased to Comcast at the time of sale. Located at 3011, 3055 and 3077 Comcast Place in the Tri-Valley Technology Park, the Comcast Office Center is a 26-acre office campus that includes two single-story buildings and one two-story office building less than one mile north of the I-580 freeway, the primary transportation artery in the submarket. Comcast consolidated its operations from multiple facilities in the Tri-Valley area in the late 2000s so that the campus would serve as Comcast's regional headquarters, call center, and technical operations center. The campus is within 10 minutes of the Pleasanton BART station servicing San Francisco and the greater Bay Area and close to the future Livermore BART station and planned surrounding developments.

For more news and information visit Blumberg Partners.

BKM Buys $58M AZ Warehouse/Office Portfolio

Irvine, CA-based real estate developer BKM Capital Partners announced this week that it had acquired a five-building property in Tempe, Arizona for $58 million. The Tempe Commerce Park portfolio was sold by Core Fund Tempe Property LLC, a company formed by the Ohio Police & Fire Pension Fund in Columbus, Ohio. BKM purchased the property through BKM Industrial Value Fund I L.P. with a $40 million loan from CIT Bank in Pasadena, California. The deal was brokered by the Phoenix office of JLL, with Invesco Realty Advisors representing the seller.

"The Tempe submarket continues to demonstrate strong economic drivers and is currently one of the most dynamic submarkets in the Phoenix metro," said Brian Malliet, CEO and Co-Founder of BKM Capital Partners, in a press release. "Job and housing growth are on the rise, providing a significant opportunity to create value for our investors. This submarket is also experiencing a significant demand for back office users, which is further driving up lease rates in the business parks throughout the region."

"The asset's prime central location and below-market rents will provide a tremendous opportunity for long-term growth," added BKM Capital Partners' Director of Acquisitions Brett Turner. "As the current tenant leases roll, we will be able to attract high quality tenants who are willing to pay a premium for the property's desirable location and the updated amenities that BKM is planning."

The 535,976 square-foot, five-building property was completed in phases between 1996 – 2001 and is currently 100% occupied. Minutes from Phoenix Sky Harbor Airport and Arizona State University, Tempe Commerce Park offers convenient access to I-10 & Loop-101 freeways in the heart of Tempe within the "Silicon Desert submarket."

For more news and information visit Blumberg Partners.

Onni Group To Buy LA Times Building, Planned Conversion

Vancouver-based developer Onni Group has entered into a preliminary agreement to buy the Los Angeles Times building at 202 W. 1st Street from Tribune Media, with plans to redevelop the art deco-era landmark into modern offices and retail. Tribune Media first noted the deal that was in the works in a previous earnings press release, without disclosing the sale price; the landmark is worth more than $100 million, according to real estate experts cited by the Times. In the same press release, Tribune noted that a 2015 arranged deal to sell the property already fell through earlier this year, and while the Onni deal could still fall apart, Onni has progressed further in the sales process than the previous potential buyer. Eastdil Secured is representing Tribune Media in the deal.

"They [Onni Group] are really big believers in the future of downtown," said Justin Weiss, a senior associate with Kennedy Wilson, who was not involved in the deal. The Canadian real estate company has already made moves in the Los Angeles market, where it owns a Beaux Arts loft building on 8th Street, a 1926 office tower on 9th Street and three more modern office buildings in the area. The person familiar with the Los Angeles Times deal said Onni is interested in redeveloping the property into a collection of modern offices, retail and possibly some residential units. The newspaper still has a lease on the property until 2018, with two consecutive five-year options.

For more news and information visit Blumberg Partners.

Equus Buys Mid America Plaza

Philadelphia-based Equus Capital Partners, formerly known as BPG Properties, Ltd, has agreed to purchase Mid America Plaza in Oakbrook Terrace, Illinois, a Class A office complex with two adjoining ten-story towers. Equus is believed to be paying $190 per square foot for the property, which puts the purchase price at around $80 million, making it the largest Chicago suburban office deal of 2016 to date. The complex is being sold by Illinois Teachers' Retirement System through a fund managed by Dallas-based Lincoln Property, which originally acquired the buildings in 2007 for $99.4 million. Full terms and representation were not disclosed, but CBRE had been marketing the property, and HFF noted that it was representing the Lincoln Property venture in the sale.

Built in 1985 and by Shaw & Associates, Mid America Plaza is positioned along the western edge of the Oakbrook Center mall, which Jim Postweiler, a JLL managing director who is not involved in the Mid America Plaza deal, said is a "huge amenity" for office workers. "It's a focal point of activity. It's like a mini central business district." The two buildings at 1 Mid America Plaza and 2 Mid America Plaza cover 414,442 rentable square feet, and each feature open terraces on odd floors with a six story atrium, underground parking, and 24-hour security. The property is currently 87% occupied, according to marketing materials on the property from HFF's Chicago office.

For more news and information visit Blumberg Partners.

Goodman Buys CA Distribution Centers

Goodman Birtcher, the wholly owned North American subsidiary of Australia-based Goodman Group, announced the purchase of two distribution centers spanning 130 acres in Los Angeles, California. CoStar estimates that Goodman paid approximately $240 million, or roughly $115 per square foot, making the deal one of the biggest in Southern California in recent history. The logistics portfolio spans two infill sites in Santa Fe Springs and El Monte, CA. The properties were sold by Albertsons Cos. Inc., with Louis Tomaselli, Zach Niles and Mark Detmer of JLL advising on the transaction.

"This acquisition further demonstrates our selective approach to expanding our presence in core US industrial markets, focusing on targeted development and value add investment opportunities in land constrained markets with high barriers to entry," said Brandon Birtcher, CEO of Goodman Birtcher. Goodman Birtcher — one of the most active developers of large-scale industrial facilities in the U.S. in the past few years — said it plans to redevelop the two sites, with the potential to add 1.2 million square feet of new Class A logistics space to its growing development pipeline in the region.

The Santa Fe Springs site includes a six building logistics campus, totaling approximately one million square feet over 75 acres, with 18 acres of trailer parking, ambient, refrigerated and freezer facilities suitable for food users, last mile logistics and ecommerce companies. The 55 acre site in El Monte will be developed into a 1.2 million square feet Class A logistics facility, following approvals from the City of El Monte. The site will be constructed with a flexible and sustainable design, catering to a range of potential uses well suited for logistics and ecommerce customers, according to Goodman.

For more news and information visit Blumberg Partners.

Ivanhoé/Callahan Buy Out Beacon at 1211 Avenue of the Americas

Ivanhoé Cambridge and its partner, Callahan Capital Properties, announced this week that it has acquired the 49% interest in 1211 Avenue of the Americas in Midtown New York City that it didn't already own from Beacon Capital Partners in a deal that valued the property at roughly $1.8 billion. Ivanhoé Cambridge and Callahan Capital Properties originally acquired a 51% stake in the office tower in October 2013 for $580 million. The deal was brokered by Eastdil Secured; terms were not disclosed.

"We are very pleased with the completion of our phased investment strategy for 1211 Avenue of the America," said Arthur Lloyd, Executive Vice President at Ivanhoé Cambridge. "This is a truly iconic property with exceptional locational and physical characteristics that offer tremendous value enhancement opportunities."

"1211 Avenue of the Americas is a significant asset in our 5.6-million-square-foot New York office portfolio and exemplifies our long-term approach towards owning quality assets in Midtown Manhattan," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "With unparalleled transportation options and the largest concentration of retail, dining and cultural amenities Manhattan has to offer, Midtown continues to be among the most dynamic markets in which to live, work and play."

Built in 1973 and also known as the News Corp. Building, 1211 Avenue of the Americas is a 44-story, two-million-square-foot office tower that prominently stands among a row of skyscrapers known as "Corporate Row." The 45 story, Class A trophy building is centrally located on Avenue of the Americas between 47th and 48th streets, with direct access to the Rockefeller Center Concourse amenities and subway. The building is certified LEED® Silver and is also winner of the renowned BOMA 2008/2009 Operating Office Building of the Year Award and the BOMA 2010 Middle Atlantic regional Building of the Year Award. The property was 92% leased at the time of sale, with major tenants including Fox News, News Corp, Wells Fargo Advisors, and the headquarters of Dow Jones.

For more news and information visit Blumberg Partners.

MetLife Loans $300M On West 34th Office Property

New York-based Vornado Realty Trust announced that it completed a $300 million recourse financing of 7 West 34th Street with a loan provided by Metropolitan Life Insurance Co. Vornado also announced that it has sold a 47% interest in the property to Korea Post, a sovereign wealth fund under the national postal service of South Korea, at a value of $561 million or $1,176 per square foot. Vornado originally purchased the 12-story office building in October 2000 for approximately $128 million from HRPT Properties Trust, which purchased it from Devon Properties in October 1997 for $110 million.

Built in 1910 and once home to Ohrbach's Department Store, the 477,000 square foot Manhattan office building in the Penn Plaza District sits across the street from the Empire State Building and is fully leased to Amazon in a 17-year contract signed in November 2014, with three five-year lease options that could stretch the lease until 2047. Vornado made significant capital improvements to the property in recent years, enlisted the architecture firm MdeAS — best known for its redesign of the GM Building's public plaza — to transform the lobby, and included upgraded elevators, new restrooms and a large outdoor terrace. Vornado will continue to own a 53% interest and continue to manage and lease the property.

For more news and information visit Blumberg Partners.

Zurich North America Buys Coral Gables Office Building for $58M

Zurich North America, an affiliate of the Swiss insurance company Zurich Insurance Group Ltd., has purchased an office tower in Coral Gables, Florida for $57.5 million, or $349 per square foot. The property was sold by a joint venture between Greenstreet Partners and CREC - Continental Real Estate Companies, which originally purchased the office building in 2005 for $27.1 million. The deal was brokered by CREC and Zurich Alternative Asset Management, Zurich's alternative investment adviser, worked with the buyer on the deal. Terms were not disclosed.

"Our experience at 2121 Ponce is an example of how a building's value can be maximized by bringing a clear vision to life through creative leasing, construction, marketing and property management strategies," said CREC Chairman & Principal Warren Weiser. "The investments we've made over the past decade have transformed the building into a core institutional-grade asset, leading to this sale. We expect similar acquisition activity in the coming months given high barriers to new development across South Florida."

Located at 2121 Ponce de Leon Boulevard, the 13-story office building, also known as the Bank Atlantic Building, was originally completed in 1971 and renovated by the joint venture in 2007. The 164,848 square foot property sits one block north of Alhambra Circle and features a 1st United Bank of Florida (with ATM), 24/7 security, coffee/sandwich shop in the lobby, and POC American Fusion Buffett & Sushi restaurant. The building was 95% leased at the time of sale, with major tenants including Goldstein Schechter Koch, Fox Latin America, Valley National Bank, the Consulate of Barbados and CREC. Coral Gables has a relatively low office vacancy rate of 9.5%, according to research by commercial real-estate brokerage CBRE; Coral Gables is the second-largest suburban office market in Miami-Dade County after the Airport/Doral area.

For more news and information visit Blumberg Partners.

Stanford Place 1 Sold for $43M

Florida-based Accesso Partners, a real estate investment firm formerly known as Beacon Investment Properties, has purchased Stanford Place 1, a 14-story office tower in the Denver Technology Center, for $43 million, according to Denver County public records. The Class A office building was sold by Broadreach Capital Partners, which originally acquired the property in March of 2007 for $42 million from Maier Siebel Baber. Broadreach Capital Partners appointed CBRE's Denver office to broker the sale; terms of the deal were not disclosed.

"We've been tracking opportunities in the Denver Technology Center submarket for the last two years since purchasing 6455 S. Yosemite, also a Class A office tower that has been a strong performer for us," said Ariel Bentata, Accesso's managing partner for investments. "Stanford Place is larger and has the same coveted northeast Tech Center location. It's a quarter-mile from the convergence of I-25 and I-225 with a nearby light-rail system and offers sweeping views of the mountains. This acquisition should provide Accesso additional economies of scale as the firm expands its holdings in Denver."

The 273,485 square foot office building at 8055 E. Tufts Avenue in Denver sits on 6 acres of land with access to both I-25 and I-225. Originally constructed in 1982, the building has undergone several redevelopments and improvements, like elevator retrofitting in 2003, replacing the cooling towers in 2007, and upgrading the lighting system in 2008, earning the property a higher Energy Star label. The building was 88% leased at the time of sale, with tenants including Moody Insurance Agency, Transwestern, Lincoln National Life, Smith Seckman Reid, Chicago Title, Nike, Sumitomo Corp. and Providigm. Cushman and Wakefield's Denver office has been appointed leasing manager for Stanford Place I.

For more news and information visit Blumberg Partners.

Herndon Metro Plaza Sold for $44.5M

Radnor, PA-based Brandywine Realty Trust has sold Herndon Metro Plaza I and II in Herndon, Virginia for $44.5 million. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property and procured the institutional investor, Irving, Texas-based Archon Group, a Goldman Sachs affiliate; the complex was sold free and clear of existing debt. According to a BisNow report, Brandywine originally bought the property in 2005 for $51.5 million.

"The arrival of the Silver Line has been transformational for the Dulles Corridor, as tenants migrate to office properties surrounding existing and future Silver Line stations, driving strong positive absorption, decreasing vacancy rates and providing impressive rent growth," said Andrew Weir, senior managing director at HFF, in a press release. "Herndon Metro Plaza I and II are uniquely positioned to capitalize on this, with the asset's rollover profile ideally concentrated in the time period surrounding the planned opening of Phase II of the Silver Line. The asset will also be one of only 15 properties on the Toll Road with immediate walkability to a Silver Line Metrorail station."

Located at 196 and 198 Van Buren St., Herndon Metro Plaza I and II overlook the Dulles Toll Road, with regional connectivity by way of the Fairfax County Parkway, Routes 28 and 7, and the Washington Beltway (I-495). The four-story two building, 201,272 square foot Class A office complex is also immediately adjacent to the future Herndon Metrorail Silver Line Station. HFF said that the property was 91% leased at the time of sale.

For more news and information visit Blumberg Partners.

Novelly's $68.5M Clayton Office Project Moves Forward

Apogee Associates, LLC and Jared Novelly, head of Crest Management and son of Apex Oil Chairman Tony Novelly, have a public hearing set for June 14th with the city of Clayton, Missouri for their proposed $68.5 million office tower. Plans for the new 14-story office tower were first revealed last November, which would remove an existing unoccupied two-story retail building that has sat vacant for years after tenants left ahead of previous development plans. After the public hearing, the project will go before Clayton's Board of Aldermen on June 16, with plans to begin construction this year.

Dubbed the Apogee Office Tower, the Class A structure at 8125 Forsyth Boulevard in downtown Clayton would be the first major office building in Clayton since the 17-story Centene Plaza building opened in June 2010. Designed by ACI Boland Architects, the tower tops out at 230 feet and offers 233,226 square feet of space. Apogee's proposed 14 floors is the most Clayton zoning regulations allow for the site, said Richard Clawson, an ACI Boland architect. Apogee's design application to the city said that the building would complement the adjacent office building and "present a unified presence to the western entrance to downtown Clayton." The building will be connected to the existing parking garage situated behind adjacent buildings occupying the block of towers, and has a proposed drive through on the first floor for a future bank tenant.

For more news and information visit Blumberg Partners.

RPW Group Buys 275 Madison Avenue

Rye Brook, NY-based RPW Group, founded by Robert Weisz, is under contract to purchase 275 Madison Avenue in Midtown from Aby Rosen and Michael Fuchs' RFR Holding. The 43-story office tower is trading hands for more than $270 million, or upwards of $800 per square foot, according to a report from The Real Deal. RFR Holding put the landmark office tower on the market in April, enlisting JLL to market the property and broker the deal, which is expected to close in August. RPW is said to be looking to line up some $160 million of mortgage financing to fund its purchase.

275 Madison Avenue, with alternate addresses of 22-26 East 40th Street and 273-277 Madison Avenue, is a 329,000-square-foot landmark skyscraper located at the southeast corner of Madison Avenue and East 40th Street. The 43-story office building was designed by Kenneth Franzheim, completed in 1931, and designated as a New York City landmark in 2009 in recognition of its classic art deco design. RFR acquired the leasehold and fee interests for the property in separate transactions in 1998 and 2004, and added value by implementing a capital improvement program that included a restoration of the original lobby, elevator modernization, a pre-built suite program and HVAC system upgrades.

The property is currently 91% leased, with major tenants including Cushman & Wakefield, formerly Massey Knakal Realty Services, 7Park Data, law firm Rosen Livingston & Cholst LLP, law firm Romer Debbas LLP, and R&S Associates. RPW Group is reportedly planning a long-term hold and renovation of the lobby and common areas, hiring Newmark Grubb Knight Frank to market vacant office space and the vacant 4,000 square foot ground floor retail space previously occupied by Food Merchants Café.

For more news and information visit Blumberg Partners.

ING Finances 550 Madison Buy with $570M Loan

ING Capital, a part of ING Group, a global financial institution of Dutch origin, announced that it had originated a $570 million loan for the purchase of 550 Madison Avenue in New York City. In a deal that was first reported in April, investor Joseph Chetrit and his partners at Clipper Capital were in contract with Saudi Arabia's Olayan Group to sell the tower at 550 Madison Ave. for between $1.4 billion and $1.5 billion. The Olayan Group closed on its $1.4 billion acquisition of the property this month with the $570 million bridge loan from ING. Chetrit originally bought the building in 2013 for $1.1 billion with the intention of turning its upper-floor office space into luxury condos, but the plan never took shape. Morrison & Foerster's real estate group provided legal counsel to ING on the financing, while Shearman & Sterling represented Olayan America.

The 37-story building in the Plaza District of Manhattan, formerly known as the Sony Building (before the electronics giant vacated earlier this year) and originally the AT&T Building, has 852,830 square feet of rentable mixed-use space, including about 776,000 square feet of office space. With one restaurant tenant holding 5,000 square feet, the property was virtually vacant at the time of sale, which allows the new ownership an opportunity to rebrand and reconfigure the existing space. "The property has been maintained to a high standard and has never previously been available to the open market for office leasing," said Tony Fusco, head of Real Estate at Olayan America.

550 Madison Avenue was designed by architect Philip Johnson and partner John Burgee and was completed in 1984. The building stood in stark contrast to the boxy glass-and-metal towers that had sprung up in Midtown Manhattan since the 1950s featuring a number of ornamental flourishes, from its granite cladding and "Chippendale" roof line to its brass and marble finishes on the interior.

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Invesco Sells Pompano Industrial Center to Clarion Partners

New York-based Clarion Partners has purchased the Pompano Industrial Center, a four-building industrial park in Pompano Beach, Florida, for $77.25 million, or $124 per square foot. The property was sold by Pompano Industrial Center LLC, an affiliate of Invesco Advisors, an investment manager headquartered in Texas. Terms of the deal and representation were not disclosed, The Real Deal reports that Invesco pieced together the property through separate deals in 2001 and 2004 that created a combined price of $51 million. Invesco paid $36.2 million to buy three of the industrial park buildings from IDI Gazeley, the original developer, which is now part of Brookfield Logistic Properties. The largest building was bought three years later for $14.8 million. CBRE had been the leasing agent for the properties.

Pompano Industrial Center is located at 901, 2001 and 2004 N.W. 25th Ave. and 2510 W. Copans Road in Pompano Beach and totals 623,256 square feet of space on 37.4 acres. The portfolio of buildings is part of the larger Pompano Business Center, where TIAA owns a FedEx building and the Arizona Beverage Co. owns a nearby warehouse its distribution center occupies in the business park. The portfolio's occupancy rate at the time of sale was not disclosed, but two months ago OC Communications leased a full building.

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CapRidge Buys Lakewood on the Park

Equity Commonwealth, a Chicago-based REIT, has sold Lakewood on the Park, a set of office buildings located along the North 360 Loop on Austin, to CapRidge Partners. Austin-based CapRidge Partners acquired the 180,588-square foot suburban office campus with $32.1 million in financing provided by Los Angeles-based Mesa West Capital, a private debt fund manager and portfolio lender with offices in Los Angeles, New York and Chicago. HFF arranged the financing and represented the seller in the transaction; the total purchase price that CapRidge Partners paid was not disclosed. According to the Travis Central Appraisal District, the property most recently valued at almost $40 million.

"CapRidge Partners is a local owner with a proven track record executing similar business plans throughout the country," said Mesa West Vice President Jason Bressler. "When it completes the renovation, CapRidge will be able to leverage the strong market fundamentals and leasing in the Northwest submarket by re-positioning Lakewood on the Park as a well located value alternative to the higher priced space in competitive buildings."

Located at 700 Capital of Texas Highway, the property features two three-story Class A office buildings on a nearly ten-acre site overlooking Bull Creek. Originally built in 1998, Lakewood on the Park, Buildings B and C, was 77% leased at the time of sale, with major tenants including Centaur Technology Inc., Bulldog Solutions, and USA Southwest Inc. The property was developed by HPI, and received the 2012-13 TOBY Award from the Building Owners and Managers Association for the best low-rise suburban office park in the city. Mesa West's loan includes funding for an extensive capital improvement program to support CapRidge’s renovation plans, which call for the complete redesign of all common areas including lobbies, corridors and restrooms; new fitness center, tenant lounge, coffee bar and shared conference center; and upgrades to the MEP systems. Exterior improvements will include new landscaping, signage and lighting. The property benefits from nearby executive housing and popular shopping and entertainment destinations The Arboretum and Barton Creek Square.

For more news and information visit Blumberg Partners.