Counsel Corp Sells $140M Portfolio

Counsel Corporation, a private equity investor and alternative asset manager, completed the sale of a real estate portfolio to Retrocom Mid-Market Real Estate Investment Trust for $140 million according to a Canadian Business article. The portfolio includes 7 commercial retail properties with over 800,000 square feet in Ontario and New Brunswick. Retrocom, which has hired Counsel to manage the properties, assumed the $60.3 million of mortgage debt on the properties.

Allan Silber, Chairman & CEO of Counsel said, "The sale of the Portfolio is consistent with our mandate to acquire, redevelop and improve quality real estate product for the investor marketplace. Since 2006 we have been acquiring and adding value to a select set of real estate assets that meet our investment criteria, for our account and on behalf of our partners." Mr. Silber continued, "We believe we have created significant value in the Portfolio by executing on our proactive asset management strategy and that current market conditions provide an opportune time to realize on this value creation. Counsel will continue to seek out new and compelling opportunities to build on our successful real estate track record."

For more news and information visit Blumberg Capital Partners.

New Wishard Project Gets Developers

Duke Realty and Browning Investments have been selected by the Health and Hospital Corporation of Marion County to develop a new office building for the New Wishard Project in Indianapolis according to the Indianapolis Business Journal. The new faculty building will be constructed in a 200,000 square foot lot adjacent to the new Wishard Hospital which is currently under construction near the campus of IUPUI.

The $754 million New Wishard project includes a 327-bed inpatient hospital and is scheduled for completion at the end of 2013. Wishard project leaders registered the 1.2 million sq. ft. campus to achieve United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) Silver certification that will make it the first newly built hospital in Indiana and one of 10 in America certified LEED Silver or higher.

"To be selected to develop part of The New Wishard campus provides Duke Realty with yet another opportunity to demonstrate our support of this community and to provide a quality facility that will enhance the health of residents through our expertise in health care development," said Denny Oklak, Chief Executive Officer of Duke Realty. "We are proud to be involved in the development of The New Wishard campus," added Michael Browning, President, Browning Investments. "Our experience will aid us in ensuring that Wishard receives a facility that enables them to succeed in their mission."

For more news and information visit Blumberg Capital Partners.

FDIC Sells $1.22B in Portfolios

The Federal Deposit Insurance Corporation (FDIC) closed on the sale of a series of loan portfolios late this month from banks that failed over the past 20 months according to a CoStar report.

In one transaction, FDIC sold 40% equity interest in a newly formed LLC to hold assets with an unpaid principal balance of approximately $204 million to ColFin Milestone North Funding, LLC. A similar deal was finalized with Milestone Co-Investment Partners, L.P. for 40% equity in the FDIC Multibank CRE Venture Loan and REO Structured Transaction which holds assets with an unpaid principal balance of approximately $137 million. Additionally, the the Western Residential Acquisition and Development pool, with roughly $279 million in assets, saw 40% sold to Cache Valley Bank of Logan, Utah. In each deal FDIC will retain 60% equity interest in the LLCs and share in returns on the assets.

For more news and information visit Blumberg Capital Partners.

GE Capital Selling Mexico Assets to Grupo Santander

Last week the financial company Grupo Financiero Santander agreed to purchase GE Capital's $2 billion mortgage business in Mexico according to a BusinessWeek article. Santander will acquire the business for $162 million plus the assumption of debt in a deal that's expected to close next year. GE Capital Chief Executive Officer Mark Begor said the sale is in conformity with the company's plan to exit non-core businesses.

Santander had about 34 billion pesos in home loans at the end of October, putting it fifth in Mexico behind BBVA Bancomer SA, Grupo Financiero Banorte SAB, Citigroup Inc.’s Banamex unit and Bank of Nova Scotia, according to government data. "There's some well-known pieces of GE Capital that will be disposition candidates or run-off candidates," said Jeff Immelt, GE's Chairman and chief executive, at an investor meeting this month.

For more news and information visit Blumberg Capital Partners.

Credit Suisse Selling $2.8B Portfolio to Apollo

In one of the largest bank sales of distressed loans since the 2008 financial crisis Credit Suisse is selling a portfolio of distressed commercial real estate loans valued at $2.8 billion to Apollo Management for $1.2 billion according to the Wall Street Journal. Credit Suisse has agreed to provide Apollo with debt financing for the deal, a portfiolio that includes apartment buildings in Germany and hotels in Denmark, Sweden and France. Neither company has yet commented on the deal publicly.

The report said that signs of a stabilising real-estate market and demand for distressed assets from private-equity funds have pushed up prices that buyers are willing to pay. "We're starting to see loans in the marketplace at more realistic prices," said Paul Fuhrman, an executive at private-equity firm Colony Capital, which has been buying distressed-loan portfolios. "We are definitely seeing the banks loosen up."

In the beginning of October, Credit Suisse had said it was confident to meet Swiss Expert Commission's requirements and said it had been preparing for the tightening of regulation for the past two years by reducing its risk-weighted assets and strengthening its capital base according to Stock Markets Review.

For more news and information visit Blumberg Capital Partners.

MBA Report Shows CRE Market Strengthening With Economy

The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for Q3 this week showing some grown in the markets as the economy begins to rebound with sales up 122% in the year to date. While mortgage delinquencies were mixed, property sales and originations volumes picked up with marginal declines in vacancy rates and a firming of asking rents. An excerpt from the report:

"Conditions in the commercial real estate industry were mixed during the reporting period. Several Districts reported flat demand and high vacancy rates, which translated into limited nonresidential construction activity. The New York, Atlanta, and Kansas City Districts noted some weakening in nonresidential activity, while the Boston and Dallas Districts indicated some modest improvement in commercial real estate. Reports from Cleveland and Chicago noted that most new projects fell generally into the infrastructure category. Contacts in Boston, Richmond, Kansas City, and Dallas expressed some optimism about the near-term outlook in their Districts, but contacts in several other Districts expressed a more cautious outlook."

For more news and information visit Blumberg Capital Partners.

Miami Tower Sold for $106M

The Miami Tower, a landmark property of the Miami skyline, traded hands last Friday for $106 million as Blue Capital US East Coast Properties sold the building to I&G Miami, Inc. Designed by I.M. Pei and built in 1987, the 600,000 square foot building is currently 80% leased with tenants including Carlton Fields, UBS Financial Services, law firm Boies Schiller & Flexner, Vector Group, and law firm Buchanan Ingersoll & Rooney. The transaction ranks as the highest-valued real estate trade in the Miami market this year according to The Miami Herald.

"In the end, this is a classic example of a quality asset attracting a quality institutional owner," said Manny de Zarraga of Holliday Fenoglio Fowler, which represented the seller. "This trade is a big boost for the Miami real estate market and we expect a spark of momentum will stem from this sale heading into 2011."

"It's a good sign that somebody believes long-term in the Miami market," said Jay Caplin, managing principal of Steelbridge Capital in Miami, which sells and manages office properties. "The market has been largely stagnant."

For more news and information visit Blumberg Capital Partners.

Vandercar Plans $120M Oakley North Redevelopment

Rob Smyjunas of Vandercar Holdings met with City Council in Oakley, OH this week to propose the development of a new mixed-use development on a 74-acre site and expects to sign an agreement by the end of the year on the $120 million project according to a Business Courier article. The project, formerly known as Millworks Town Center, received approval last week to apply for $3 million in Clean Ohio Revitalization funds to demolish buildings and clean up the site.

Plans for the new development include the construction of 350,000 square feet of retail space, a 55,000-square-foot movie theater, 200 apartments and 250,000 square feet of office buildings. The project includes property that formerly held the operations of Cincinnati Milacron, Unova Industrial Automation, CECO Environmental and the Factory Power Company. Members of the Council saw the plan several weeks ago, said Peter Draugelis of Vandercar, and approved the development after making several requests according to a Cincinnati.com article. Requested modifications reportedly included the consideration for pedestrian-friendliness, green space, and that the project not have a large presence of big box stores.

For more news and information visit Blumberg Capital Partners.

JP Morgan Purchases Lehman HQ in London for £495M

J.P. Morgan announced today that it had acquired 25 Bank Street in Canary Wharf for £495M according to a Guardian article. The building, home of Lehman's European arm until 2008, will become the new European headquarters of J.P. Morgan's Investment Bank in 2012. In addition to this property, Morgan has also agreen to purchase 60 Victoria Embankment in London, a building that the firm has leased since 1991 and houses its Treasury and Security Services Division. The City minister, Mark Hoban, described JP Morgan's decision as "excellent news". Morgan purchased the Bank Street building from Canary Wharf Group and has said it will continue to work with the group to develop the Riverside South site at Canary Wharf for future use.

"These buildings ensure that our employees will have the necessary technology, infrastructure and amenities to take our businesses forward. Even during the recession, we have continued to invest and grow our businesses internationally," said Jamie Dimon, Chairman and CEO of J.P. Morgan. "These properties are long-term investments and represent our continued commitment to London as one of the world's most important financial centres."

For more news and information visit Blumberg Capital Partners.

Mesirow Financial Building in Chicago Finds Buyer

The 46-story Class A office tower at 353 N. Clark Street in Chicago known as the Mesirow Financial Building was purchased by New York-based Tishman Speyer according to a CoStar report. While no purchase price was disclosed, the seller, a subsidiary of te financial services firm Mesirow Financial Real Estate, was seeking $480-$495 million for the property when it was placed on the market in June as reported by CoStar. The 1.17 million square foot buildng was developed last year and is currently 81% leased with tenants including Jenner & Block, Mesirow, and Spencer Stuart.

"As the city's largest owner of Class A office buildings, Tishman Speyer is well positioned to take advantage of market demand for the highest-quality space in Chicago. This property is a great addition to our world-class office portfolio and the acquisition demonstrates our confidence in the Chicago market," said Casey Wold, a senior managing director at Tishman.

For more news and information visit Blumberg Capital Partners.

HCP Acquires $6.1B Portfolio

HCP entered into a definitive agreement this week to acquire the real estate assets of HCR ManorCare for $6.1 billion in what's become the largest deal involving a real estate investment trust in three years according to a New York Times article. HCR ManorCare, owned privately by management and equity funds managed by The Carlyle Group, is unloading 338 post-acute, skilled nursing and assisted living facilities in 30 states, with the highest concentrations in Ohio, Pennsylvania, Florida, Illinois and Michigan. The transaction is being made via $3.528 billion in cash, $1.72 billion reinvested from the payoff of HCP's existing debt investments in HCR ManorCare (original cash investment of $1.49 billion), and $852 million in HCP common stock issued directly to the shareholders of HCR ManorCare (a fixed 25.7 million shares).

HCP has obtained a commitment for a bridge loan in an amount up to $3.3 billion that will be available to complete the HCR ManorCare acquisition. HCP intends to issue debt and equity securities in lieu of any borrowings available under the bridge loan. "This transaction reinvests our substantial debt investment in a secure long-term, growing income stream that will be highly accretive to HCP's funds from operations and funds available for distribution," said Jay Flaherty, HCP's Chairman and Chief Executive Officer. "The acquisition is consistent with our '5x5' business model and an important milestone for our Company. Pro forma for this transaction, HCP will have $19 billion in assets comprised of a well-balanced portfolio of 1,000 properties." CSCA Capital Advisors, LLC acted as lead financial advisor with Citi, UBS and Wells Fargo also advising. Skadden, Arps, Slate, Meagher & Flom LLP acted as HCP's legal advisor. In connection with the transaction, J.P. Morgan Securities LLC is HCR ManorCare's exclusive financial advisor and Latham & Watkins LLP is their legal advisor.

For more news and information visit Blumberg Capital Partners.

EU Property Investment Expected to Rise in 2011

The new Global Market Perspective report out from Jones Lang LaSalle observes that a broad range of investors are targeting prime European real estate, and that volumes on investments are expected to rise in Europe to be around €130 billion in 2011, a 30% increase from 2010. An excerpt from the report:

The large, liquid and transparent markets in the UK, France and Germany will attract the majority of funds, with their focus being on London and Paris. Nonetheless, investors will widen their geographic search, and we will see increased trading in the Nordic markets, Central and Eastern Europe and Moscow.

Transaction volumes could be held back by a lack of lending and continued low levels of trading in secondary assets which, in most markets, are still considered too risky at current pricing levels. That said, we may see pricing expectations on secondary assets shifting to become more realistic, in large part driven by disposals from the banks (or from former bank stock held by NAMA). This will boost trading volumes.

For more news and information visit Blumberg Capital Partners.

World Bank Purchases DC Headquarters for $216M

The World Bank has bought the 8-story building at 1225 Connecticut Avenue in Washington, DC for $216 million according to a Bloomberg report. World Bank has leased the property since 2008 and used 100% of the rentable 240,000 square feet as its headquarters. World Bank acquired the office building from Brookfield Properties, which will be retained as the managing agent for the property. The sale represents a price of $900 per square foot, the highest price per square foot ever paid for an office building in D.C. according to the Washington Business Journal.

Brookfield said it sold the building after spending $32 million on updating it after buying it in 2006 as part of Trizec Properties Inc.'s portfolio according to Reuters. The building was among the first redeveloped buildings in the United States to achieve LEED CS (Core & Shell) Platinum certification. "In keeping with our capital recycling strategy, we will be proactive in seeking similar opportunities to create value within the D.C. market," Dennis Friedrich, chief executive officer of Brookfield's U.S. commercial operations, said in the statement.

For more news and information visit Blumberg Capital Partners.

Brookfield Acquires Heritage Plaza for $321.5M

Brookfield Properties Corporation has purchased the 53-story Heritage Plaza in Houston from Goddard Investment Group for $321.5 million (gross purchase price of $325 million net of $3.5 million of closing credits) according to a CoStar report. Goddard originally purchased the building in July 2005 for an undisclosed amount of cash, but The Houston Chronicle estimated the price at $125-$130,000,000.

Heritage Plaza, at 1111 Bagby Street, was completed in 1987 and designed by M. Nasr & Partners. The 1.2 million square foot trophy office building is convenient to major thoroughfares and provides direct passage to adjacent buildings and surrounding amenities via sky bridge. The property is roughly 84% leased with major tenants including Deloitte and EOG Resources.

For more news and information visit Blumberg Capital Partners.

DC Office Building Sold for $49.5M

Harbor Group International sold 1211 Connecticut Avenue in Washington, D.C. this week for $49.5 million to First Potomac Realty Trust according to Citybizlist. The eight-story 137,754 square-foot office building was originally constructed in 1967 and underwent renovations in 1998 and 2008; First Potomac indicated that it plans to renovate the property's facade and lobby. With 125,119 rentable square feet, the property is currently 100% leased to 25 tenants.

"The acquisition of 1211 Connecticut Avenue adds another strong, stabilized asset to our portfolio of DC-area properties," said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. "As our seventh office building acquisition this year, and the third acquisition in downtown Washington, D.C., this purchase is a reflection of our strategy to leverage our strong financial position and market expertise to execute deals that deliver long-term value to our shareholders."

For more news and information visit Blumberg Capital Partners.

Healthcare Trust of America Picks Up $122.62M Portfolio

Healthcare Trust of America, Inc., a self-managed, publicly registered, non-traded real estate investment trust, has acquired a six-building medical office portfolio from Columbia Development Companies for $122.62 million, or $190.54 per square foot. The 643,555-square-foot portfolio includes buildings in Albany, NY and Tampa, FL and is roughly 95% leased with large, investment-grade regional healthcare systems and specialty medical practices as primary tenants. Healthcare Real Estate Capital oversaw the disposition.

The properties include:

711-713 Troy Schenectady Road, a 258,953-square-foot health park in Latham, NY;

400 Patroon Creek Blvd., a 166,075-square-foot medical office building in Albany, NY;

1365 Washington Avenue, an 80,546-square-foot medical arts building in Albany, NY;

1375 Washington Avenue, a 40,941-square-foot medical arts building in Albany, NY;

1092 Madison Avenue, a 14,800-square-foot medical office building in Albany, NY;

13020 N. Telecom Parkway, an 82,240-square-foot orthopedic medical building in Tampa, FL.

For more news and information visit Blumberg Capital Partners.

$471M JV With Inland American and Centro

A definitive joint venture has been announced this week between Inland American CP Investment, LLC, a wholly owned subsidiary of Inland American Real Estate Trust, Inc., and Centro NP Residual Holding LLC, a subsidiary of Super LLC, which is jointly owned by CER, Centro Properties Group and CMCS40, on 25 retail shopping centers with a total value of approximately $471 million according to a CoStar report.

Goldman Sachs and J.P. Morgan provided the joint venture 10-year CMBS financing of approximately $310 million secured by 24 properties within the joint venture. "We believed that these were quality properties when we purchased the original loan participation, and this new joint venture agreement reaffirms that we still believe in them," said Michael Podboy, Vice President, Inland American Business Manager & Advisor, Inc. "We are excited about our partnership with Centro and the resolution of our existing participation on a portion of the prior first mortgage loan as it provided an attractive business deal. These are high-traffic shopping centers with high occupancy rates, which demonstrates their strong mix of national and regional retail tenants, including Wal-Mart, Publix, Kroger, Best Buy, Kohl's, Staples, Bed Bath & Beyond and T.J. Maxx."

For more news and information visit Blumberg Capital Partners.

JV Acquires Interchange Business Center for $30M

A joint venture between Behringer Harvard and CT Realty Investors finalized the acquisition of the Interchange Business Center in San Bernardino, CA for $30 million according to National Real Estate Investor. The property is part of the Inland Empire industrial market in the easter portion of greater Los Angeles and was sold by IBS Industrial Properties LLC. Built in 2007, the four-building complex is currently 29% leased with major tenants including FTDI Supply Chain Management and Genco.

"Interchange Business Center provided us with an attractive opportunity to capitalize on current market stress by acquiring Class-A industrial space in a recovering market at a significant discount to replacement cost," said Samuel Gillespie, Chief Operating Officer of Behringer Harvard Opportunity REIT II, a non-traded real estate investment trust. Mr. Carter Ewing, Executive Vice President of CT Realty Investors, added, "This acquisition complements our growing portfolio of Inland Empire industrial properties and speaks to our ability to source compelling off-market opportunities."

For more news and information visit Blumberg Capital Partners.

Colliers Acquires Winbury Group

A controlling interest of commercial real estate agents with Grubb & Ellis/The Winbury Group has been acquired by Colliers International according to a Lawrence Journal-World article. The Winbury Group, a full-service commercial real estate firm founded in 1989, will immediately assume identity under the new Colliers umbrella and signage is expected to change within 30 days. The terms and price of the deal were not disclosed.

"With today's news, we are continuing our systematic strategy to seize additional market share in the U.S.," said Dylan Taylor, chief executive officer of Colliers International in the U.S. "Our U.S. continued expansion further solidifies our ability to provide the best service to our clients and the best career opportunities for our professionals. The Winbury Group is the clear market leader in greater Kansas City and we see very high alignment between the two firm's cultures."

Ted Murray, who serves as the CEO of The Winbury Group, adds: "After serving our clients for more than two decades throughout the Kansas City region and the country, we are thrilled to join Colliers International, a global industry leader. Our ongoing commitment to deliver the highest-quality commercial real estate services in the region will be significantly enhanced by this merger. Our clients will continue to rely on our local market knowledge and connections, but going forward they also will benefit from the national and international growth opportunities and resources of Colliers."

For more news and information visit Blumberg Capital Partners.

Google Purchasing Manhattan Office Building for Over $1.8B

In a deal that's reportedly valued at over $1.8 billion, Google now owns an entire New York City block with the latest acquisition of 111 Eighth Avenue. The deal for the 2.9 million square foot property is the biggest transaction for a single building in the U.S. this year according to a Wall Street Journal article. Google currently occupies roughly 500,000 square feet of space in the building, and won the bid for the purchase of the property due in part to its willingness to close the deal by the end of the year. The building, which once housed the headquarters of the Port Authority of New York and New Jersey, was being marketed by Douglas Harmon, a senior managing director at Eastdil Secured. The building last changed hands in 1998.

"You can't get a stronger vote of confidence for the strength of the New York office market," Dan Fasulo, managing director of Real Capital Analytics, told Bloomberg. "When one of the most prestigious modern corporations makes a bet on your marketplace, it's not just a bet on your real estate, but in New York as a place to retain and attract the best talent."

"They can afford to pay more for this building because they're already the occupant," said Ben Thypin, Real Capital senior market analyst. "A third party that wasn't already a tenant might not have been able, actually definitely wasn't able, to bid as high as they were."

For more news and information visit Blumberg Capital Partners.

Brookfield Buys Washington Television Center Building for $113M

Brookfield Properties has acquired a 20-year old DC office building for $113 million according to a CoStar report. The office building at 650 Massachusetts Avenue, NW in Washington, DC was sold by Washington Television Center. Brookfield used its available cash resources to complete the acquisition.

650 Massachusetts Avenue, NW is an eight-story office building containing 317,000 rentable square feet and a four-story parking garage. The building is currently 74% leased to tenants including the Department of Homeland Security, NPR and Atlantic Video, and serves as the global headquarters of Blackboard, an educational software company. "We are strong believers in the long-term viability of the DC office market, and this acquisition fits our strategy of owning assets in the best-located areas within our core markets," said Dennis Friedrich, president and chief executive officer of Brookfield Office Properties' U.S. Commercial Operations.

For more news and information visit Blumberg Capital Partners.

CalPERS Transfers $1.9B Portfolio

The California Public Employees' Retirement System (CalPERS) has transfered its CalEast Global Logistics industrial real estate portfolio, valued at $1.9 billion, to GI Partners and RREEF according to a CoStar report. "We have confidence in GI Partners and expect excellent performance from the CalEast portfolio going forward, given their strong returns since they joined our real estate program in 2001," said Ted Eliopoulos, CalPERS Senior Investment Officer, Real Estate. "RREEF's success with CalWest and their global breadth and expertise will be valuable in managing CalEast's European assets."

CalPERS made the transition as part of a strategy to restructure its real estate and shift assets to managers. CalEast was previously managed by LaSalle Investment Management while RREEF has managed CalWest Industrial Properties for CalPERS since 1998.

For more news and information visit Blumberg Capital Partners.

NAR Says CRE Market Stabilizing, Vacancies Peaking

According to the National Association of Realtors® the commercial real estate markets are flattening out and appear to be stabilizing. The association expects modestly improving fundamentals in the coming year. "Property fundamentals are improving, investment capital is slowly flowing back into the sector, commercial mortgage originations are increasing, and demand for CMBS issuance is gaining traction," Standard & Poor's said in a Bloomberg report. An excerpt from NAR's office market findings:

Vacancy rates in the office sector, where a large volume of sublease space remains on the market, are forecast to decline from 16.7 percent in the current quarter to 16.4 percent in the fourth quarter of 2011, but with very little change during in the first half of the year.

The markets with the lowest office vacancy rates currently are New York City and Honolulu, with vacancies around 9 percent. All other monitored markets have double-digit vacancy rates.

Annual office rent is expected to decline 1.8 percent this year, and then slip another 1.6 percent in 2011. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, should be a negative 3.7 million square feet this year and then a positive 16.4 million in 2011.

For more news and information visit Blumberg Capital Partners.

SHPT Purchasing $470M in Medical Office Properties

CommonWealth REIT has announced that it entered into an agreement to sell 27 medical office properties to Senior Housing Properties Trust for $470 million according to Senior Housing News. The sale, expected to be completed between now and June 30, 2011, covers properties that include approximately 2.8 million square feet of space and are located in 12 states. According to CommonWealth, it expects to realize net capital gains of approximately $174 million; the historical cost of the properties being sold is approximately $378 million and its current net book value of these properties is approximately $296 million.

The portfolio currently shows an average occupancy of roughly 95% with the majority leased to medical service providers and other tenants in medical related businesses. Senior Housing Properties Trust was formerly a 100% owned subsidiary of CommonWealth until it was spun out in 1999. As a results of agreements, Senior Housing Properties has rights of first refusal on the properties being sold. Both entities are managed by by Reit Management & Research LLC.

For more news and information visit Blumberg Capital Partners.

2121 K St Sold for $82.4M

TF Cornerstone has acquired 2121 K St., NW in Washington, DC for $82.4 million according to a GlobeSt.com article. The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) brokered the deal on the 190,458-square-foot, Class A office building sold by ING Clarion Partners. The property was bought free and clear of debt.

The recently renovated 11-story property is 66% leased to tenants including the United Mine Workers of American Pension Trust (UMWA), Economists Incorporated, Intl Research & Exchange, George Washington University and a recently signed retail lease with celebrity chef Bobby Flay's, Bobby's Burger Palace. "Washington, D.C. continues to rank as the top city for commercial real estate investment in the world," said HFF's Jim Meisel. "We had tremendous interest in this core plus investment opportunity as the leasing market in the CBD continues to improve."

For more news and information visit Blumberg Capital Partners.

WSJ Examines New HK Property Duties

The Wall Street Journal published an article title "New Rules Hit Hong Kong Property" which takes a look at the current climate of and regulations on real estate and property development in Hong Kong. Irina Fan, senior economist at Hang Seng Bank, said "despite the recent measures to cool the property market by the Hong Kong government, the rises in the private rentals will likely continue until the middle of next year as rental movements are lagging property prices." An excerpt from the article:

On Friday, the Hong Kong government slapped additional stamp duties on properties that are resold within two years and raised down-payment requirements on high-end home purchases. On Monday, government inflation figures showed Hong Kong property prices were up 15% in the January-September period, after a 30% surge in 2009.

Unlike previous measures enacted by the Chinese territory to cool prices, the new ones are considered more likely to have an immediate effect. DBS Vickers said it expects transaction volume could shrink 30% to 50% in the next three months as short-term speculators are driven out of the market. Other prospective home buyers, including genuine home seekers, are likely to adopt wait-and-see approach in anticipation of lower home prices.

For more news and information visit Blumberg Capital Partners.

Scripps Announces New $2B Campus

Scripps Health announced plans to expand Scripps Memorial Hospital La Jolla into a regional medical campus. The $2 billiion project seeks to rebuild the 43-acre hospital over the next 25 years according to a CoStar report. The new campus will include three new hospital towers, medical offices, research and graduate medical education facilities and an outpatient pavilion. The groundbreaking for the first tower, the hub of the Scripps Cardiovascular Institute, is scheduled for June 2011. Following the completion of the first tower, construction will continue with two additional hospital towers, two new medical office buildings, research and graduate education facilities, and an outpatient care pavilion.

Funding for the hospital’s expansion will come from operating revenues, borrowing and community support. Thus far, $32 million of its $125 million fundraising goal for the first tower has been contributed in the form of philanthropic gifts. Hospital officials said the plan has been driven in part by a looming deadline to meet state earthquake safety standards according to a La Jolla Patch article. "We needed to do seismic retrofitting but took the opportunity to do more than that and build a medical campus that would meet the future needs of the community," Scripps La Jolla spokeswoman Lisa Ohmstede said.

For more news and information visit Blumberg Capital Partners.

Moody's Commercial Property Prices up 4.3% in September

Commercial commercial real estate prices saw a 4.3% rise in September according to Moody's Investors Service and Real Estate Analytics. The rebound marks the first increase since May and the largest gain in the history of the CPPI. Prices for office properties and industrial spaces decreased during the third quarter, down 3.8% and 4.3%, respectively. Compared to the year-ago third quarter, when office properties hit a recession low, prices are up 4.4%.

"Each of the summer months this year recorded declines in the 3%-4% range, followed by this month’s sizeable uptick," said Moody's Managing Director Nick Levidy. "The relatively large swings in the index in recent months are due, in part, to the uncertain macroeconomic environment and the low number of repeat-sale transactions."

For more news and information visit Blumberg Capital Partners.

Patricio Moving HQ to Quantico

The Quanitico Corporate Center in Stafford, Virginia will be the future headquarters for Patricio Enterprises, Inc. as the company announced its intent to relocate headquarters as early as next month. The Quantico Corporate Center is an 85-acre campus providing 1,000,000 square feet of office space capacity within 10 to 12 buildings. Patricio will begin construction of a 30,000 square foot office building on a 1.97 acre parcel of land in the complex late this year according to a Virginia Business article. The new building is being developed by the Silver Companies of Fredericksburg.

"This is a significant step for our business as we continue to grow and invest in the infrastructure required to support our global operations from our headquarters in the Northern Virginia area,” said Gabe Patricio, President of Patricio Enterprises, who expressed the importance of a continued commitment to the local area. Patricio Enterprises, Inc. is a service-disabled veteran-owned business and certified Small Business Administration 8(a) program participant that specializes in Total Life Cycle Systems Management support and consulting.

For more news and information visit Blumberg Capital Partners.

Blackstone Secures $514M Loan from Wells Fargo

Wells Fargo announced this week that it has funded a $514 million sindicated five-year loan to affiliates of Blackstone Real Estate Advisors accordinging to a BusinessWeek article. Blackstone will use the funds to acquire a portfolio of 182 industrial properties in 28 markets, totalling roughly 23.2 million square feet of space. According to the MBA's Commercial Real Estate / Multifamily Finance Firms Annual Origination Rankings for 2009, Wells Fargo originated more transactions involving industrial properties last year nationwide than any other firm in the U.S. Wells Fargo provides lending, servicing, advisory, intermediary, and structured solutions to a broad spectrum of investors, developers, and public companies in the commercial real estate sector.

"We're proud to be a part of a large transaction like this one," said Chip Fedalen, executive vice president and head of the Wells Fargo Real Estate Banking Group of the loan and ProLogis portfolio acquisition. "Wells Fargo has a long history in the commercial real estate sector and we continue to actively seek financing opportunities for attractive real estate assets with good quality sponsors."

For more news and information visit Blumberg Capital Partners.

Silver & Freedman Plans Move from Century City

Silver & Freedman, a California business law firm that's been in Century City for 35 years, made an announcement this week that it was exploring real estate options to move to a new neighborhood. According to the firm's managing partner, Barry Weisz, "Silver & Freedman has been on Century Park East for over 35 years and Century City has been an ideal location for business activity. However, we find that many of our clients might be better served at a more convenient location closer to the freeway. We value our clients' opinions and, given these and other factors, it's evident that we must consider a potential move." The firm said that they were seeking to sublease their current space on the 19th floor (26,000 square feet) while pursuing similar space closer to the 405 Freeway.

As the Los Angeles Times noted, businesses contemplating a move usually stay mum about their plans and let their real estate brokers work behind quietly behind the scenes. Silver & Freedman instead released a press release publicizing their plans to leave Century Plaza Towers. The Times goes on to point out that the area remains one of the region’s most expensive office markets with average asking rents of more than $3.87 per square foot a month, according to a report by brokerage Cushman & Wakefield.

For more news and information visit Blumberg Capital Partners.

Citi Property Investors Sold to Apollo

Apollo Global Real Estate Management, an affiliate of Apollo Global Management LLC, has finalized a deal to purchase Citi Property Investors (CPI), the real estate investment management group of Citigroup Inc. While the terms of the deal were not disclosed, CPI had assets under management of over $3 billion as of June 30 of this year according to a BusinessWeek article. As part of the transaction, a majority of CPI's employees will join Apollo Global Real Estate Management, which will take over the management of a number of CPI's funds, including its flagship funds, CPI Capital Partners Asia Pacific, L.P., CPI Capital Partners Europe, L.P., and CPI Capital Partners North America LP.

The Citigroup bank is on track to have less than $400 billion of unwanted assets, or 20 percent of total assets, by the end of 2010 as reported by Reuters, and is still 12% owned by the U.S. government, which originally planned to finish selling off the stake by mid-December.

For more news and information visit Blumberg Capital Partners.

Facebook Breaks Ground on $450M NC Facility

Facebook announced this month that it will be building a new $450 million data center in Forest City, North Carolina. Construction is already underway for Facebook's Rutherford Data Center, about 60 miles west of Charlotte, and is expected to continue over the next 18 months; when complete, the 300,000 square foot facility will house thousands of computer servers and employ a staff of 35 to 45 full-time and contract employees. The project will also create over 250 construction and mechanical jobs states InformationWeek.

"The Facebook brand represents constant innovation, expansion, and investment in new ideas. These are the core components of our country's job-creation engine," said Congressman Patrick McHenry. "We see the results of that here today, as Facebook's success has brought them to Forest City to make a great investment in this community. These are the jobs Western North Carolina needs to push forward in an economy increasingly dependent on new technologies."

"I think you will see it's a game changer for Rutherford County," said North Carolina Lt. Gov. Walter Dalton in a WYFF Greenville report. "Certainly it shows Rutherford County and North Carolina are ready for the 21st-century. We're competing in the 21st century economy and we're only going to move forward from here."

For more news and information visit Blumberg Capital Partners.

Fitch Report Shows US CRE Delinquencies Eased in October

According to Fitch Ratings the delinquencies on U.S. commercial real estate loans eased in October due to increased incidence of loan extensions. The exentions helped precipitate a slight drop in CREL CDO delinquencies and, as Fitch Director Stacey McGovern explained,"are short term remedies designed to allow added time for further negotiation of pending loan modifications."

CREL CDO delinquencies fell slightly to 12.8% last month (from 12.9% in September). Total loan extensions in October were reported at 58 in the month, which is significantly higher than the 2010 monthly average of 37 extensions. Asset managers reported $98 million in realized losses from the disposal of distressed assets last month. Total realized losses across such products rated by Fitch total more than $1.7 billion. "The risk still remains for realized losses to increase if real estate trends backpedal, though they have been in a relative holding pattern for the last few months," McGovern added.

For more news and information visit Blumberg Capital Partners.

OneWest Bank Buys $1.4B CMBS Portfolio

OneWest Bank, formerly IndyMac Bank, announced the purchase of a $1.4 billion multifamily and commercial real estate loan portfolio from Citibank. The deal, which includes approximately 600 loans as part of the portfolio, was closed immediately, the terms of which were undisclosed.

"We are pleased to be able to work with Citibank to complete this transaction. This portfolio purchase represents our ongoing commitment to Commercial Real Estate lending. We are excited to add quality earning assets to our balance sheet and look forward to providing all of the banking services that OneWest has to offer to our new customers," said OneWest Bank's President and CEO Joseph Otting.

For more news and information visit Blumberg Capital Partners.

Seda International Expands to US, Purchases Wisconsin Building

Seda International Packaging Group. based in Naples, Italy, has announced its plan for U.S. expansion and purchased the site of the first North American operation in Racine County, Wisconsin. Seda is buying a 323,610-square-foot warehouse and manufacturing facility in Park 94, at 12501 Globe Drive, according to Chicago-based developer HSA Commercial Inc. While a purchase price for the facility was not disclosed, Seda did say that it expects to make a $76 million investment in local operations.

Wisconsin will prove $5.7 million in tax credits to Seda and a $1.5 million Community Development Block Grant Forgivable Loan. Governor Jim Doyle spoke to an audience at the Center for Advanced Technology and Innovation (CATI) in Sturtevant and noted that the Seda expansion will create 189 new jobs.

For more news and information visit Blumberg Capital Partners.

Aviva Portfolio Sold for £36.5M

Aviva Investors has sold a portfolio of five offices to Knight Frank Investors for for £36.5 million according to a PropertyWeek.com article. The Pentagon Portfolio comprises 290,000 square feet of office space across five properties in Bracknell, Cegedim House in Chertsey, Pinnacle in Reading and Aquasulis in Slough.

Knight Frank Investors is an investment management business set up in April of this year and fully owned by Knight Frank LLP. Aviva Investors was represented by property consultants Strutt & Parker in the transaction while BNP Paribas Real Estate advised Knight Frank.

For more news and information visit Blumberg Capital Partners.

NAR Expects Steady Improvement in Commercial Market

The National Association of Realtors (NAR) held their 2010 Conference & Expo in New Orleans this month, coined "NARdiGras 2010: A Fountain of Inspiration" with 125 education sessions and insights from business leaders. NAR's Chief Economist Lawrence Yun and Hugh Kelly, clinical professor of real estate at New York University Schack Institute of Real Estate, shared their predictions surrounding the commercial market and indicated a slight improvement in commercial lending.

"Banks' profits have returned to healthy levels. As a result, it is inevitable they will return to the business they were created for, which is lending," said Yun. "Commercial real estate has experienced a sharp price correction, but there is still a shortage of buyers because of lack of adequate capital resources." Yun said with imports and exports in the U.S. rising, the demand for industrial space will improve. His commercial forecast shows steady improvement in the market with rents stabilizing and net absorption slowly improving. Yun also predicts a moderate GDP expansion of 2 percent to 2.5 percent in the next two years and an unemployment rate of eight percent in 2012 and six percent in 2015.

Kelly pointed out that most commercial mortgages have been random and idiosyncratic, stressing that the lending environment should not remain that way. "The banks are in the driver's seat, meaning they can cherry-pick deals and there is no stigma to turning away business," said Kelly. "The capital flow in the commercial real estate market has been very selective. To achieve full recovery, lending practices must improve."

For more news and information visit Blumberg Capital Partners.

Blumberg Capital Partners in the News

Blumberg Capital Partners was featured in an Arabian Business article titled "Gulf capital turns to US real estate, lured by distressed sales". An excerpt:

Arab investors that have historically favoured UK real estate are now looking to America, lured by tax cuts and low property prices, said Philip Blumberg, chairman of US-based investment management company Blumberg Capital Partners.

Property acquired by Middle East and African investors increased 140 percent between 2008/09 and 2009/10 from $1.1bn to $2.64bn, data from the National Association of Realtors showed.

"US tax policies are about tax cuts not tax increases so the US is emerging as a safe standard compared to Western Europe," Blumberg told Arabian Business.

To read the full article, click here.

16-Hotel Portfolio Sold for $291M

Apple Real Estate Investment Trust Companies (Apple REIT) has closed a deal to purchase 16 Marriott and Hilton affiliated hotels in seven states for $291.5 million according to a CoStar report. The seller, White Lodging Services Corporation, will continue to oversee the properties under long-term management agreements. The hotels included in the Apple REIT/White Lodging transaction are the SpringHill Suites in Fishers, Indiana and Salt Lake City, Utah as well as the Residence Inns in Mishawaka, Indiana; Phoenix, Arizona; and Mettawa, Illinois. The Courtyard by Marriott properties that are included are located in Phoenix and Chandler, Arizona and in Austin, Texas. Also part of the transaction are Hilton Garden Inn hotels in Mettawa, Warrenville and Schaumburg, Illinois; Austin, Texas; and Novi, Michigan. Apple REIT will also acquire Fairfield Inn and Suites in Austin, Texas and Chandler, Arizona and one Embassy Suites hotel in Tampa/Brandon, Florida.

"The transaction with Apple REIT, one of our industry's most professional and prolific owners of premium branded hotels, provides White Lodging with additional capital to continue executing our strategic growth plan at a time when many of our competitors are merely trying to stay afloat," said Deno Yiankes, president and CEO of investments and development at White Lodging.

For more news and information visit Blumberg Capital Partners.

First Potomac, AEW Acquire DC Office Building for $65M

First Potomac Realty Trust and AEW Capital Management entered into a 50/50 joint venture to acquire 1750 H Street, NW, in Washington, D.C. for $65 million. National Treasury Employee's Union sold the mult-story Class A office building in a deal that was contingent on the buyers assuming a $31.4 million loan from the seller.

"It fits well into our long-term business plan to grow our presence in the downtown D.C. market, increase the number of office buildings we own, and continue our focus on high-quality properties," said Douglas Donatelli, chairman and CEO of First Potomac in a Washington Business Journal article. 1750 H Street, NW is a 10-story 111,000-square-foot office building located approximately three blocks from the White House in Washington, D.C.'s central business district. The building is 100 percent leased to six tenants, including 46,900 square feet on the top four floors that is leased back to the seller, the National Treasury Employee's Union (NTEU) for a ten-year term.

For more news and information visit Blumberg Capital Partners.

Colony Closes $74M Deal in Falls Church

Colony Realty Partners' subsidiary, Colony Capital LLC, finalized the purchase of an office building in Falls Church, Virginia for $74.23 million according to a CoStar report. PacTrust sold the 10-story, 231,928 square foot office building for roughly $320 per square foot; according to CoStar Group information, the average asking rent per year is approximately $36 per square foot.

The building at 3190 Fairview Park was originally delivered in 1990 and renovated between 2006 and 2008 with current major tenants including General Dynamics, JPMorgan Chase and DynCorp International. "The sale of this trophy office property is further evidence that investors are actively seeking quality, well-located and stable assets in one of the strongest markets in the country," said Collins Ege of Jones Lang LaSalle, which led the sales effort on behalf of PacTrust.

For more news and information visit Blumberg Capital Partners.

AOL Selling Part of VA Campus to CBRE for $144.5M

AOL Inc. has agreed to sell part of its large office complex known as Pacific Corporate Park in Northern Virginia for $144.5 million according to a Washington Post article. CB Richard Ellis will take ownership of four office buildings no longer utilized by aol and two undeveloped parcels of land on the Dulles campus. The combined total office space is approximately 700,000 rentable square feet in the four buildings; AOL vacated the building by early 2010 and the space is currently 100% leased with most of the space leased defense contractor Raytheon for a 10-year term.

"While the Dulles campus is an important part of AOL's future, we simply had no need to continue owning the additional space -- having already moved all of our talent in Dulles to one side of the campus," said Artie Minson, Executive Vice President and Chief Financial and Administrative Officer at AOL. "With a long-term lease in place it made sense for us to pursue a sale to realize maximum value of these assets and add significant cash to our balance sheet."

"We find this is an excellent location and very attractive set of resources with respect to the Northern Virginia market," said Phil Kianka, executive vice president and chief operating officer at CB Richard Ellis Realty Trust. The trust's parent company, CB Richard Ellis Group, represented AOL in the deal.

For more news and information visit Blumberg Capital Partners.

Philip Blumberg on CNBC Asia Squawk Box 10/28/10

The Necessity of Investing In Commodities

The commodities market is one that investors need to be involved in, says Philip Blumberg, CEO of Blumberg Capital Partners. He told CNBC's Martin Soong & Adam Bakhtiar that he is concerned about China's growth trajectory.

Investing In Japan

Philip Blumberg, CEO of Blumberg Capital Partners tells CNBC's Martin Soong & Bernard Lo what he needs to see before he would start investing in Japan's real estate market.

Re-investing in US Real Estate

Philip Blumberg, CEO of Blumberg Capital Partners says he is looking to invest in "emerging markets" in U.S. He shares some of the top spots on his radar with CNBC's Martin Soong, Bernard Lo & Adam Bakhtiar.

Optimism About Japan

While investors are piling into "overheated " markets like China and Singapore, Philip Blumberg, CEO of Blumberg Capital Partners tells CNBC's Martin Soong, Adam Bakhtiar he sees reason to be more optimistic about Japan.

Google Considering $2B NYC Office Buy

A new article from the New York Post reports that Google is considering an incredibly large buy-in to the Chelsea neighborhood of New York City at a$2 billion price tag, a transaction that would value the property at $690 per square foot. The trophy building at 111 Eighth Avenue is only 18 stories tall but boasts 2,950,000 square feet of office space making it the second largest building in New York City. Google already leases over 550,000 square feet of the property with other tenants includig Nike, Sprint, WebMD, CCH Legal, Deutsch Advertising and Armani Exchange.

Taconic Investment Partners originally acquired 111 Eighth Avenue in January 1998 as part of a portfolio of assets that also included 95 and 99 Wall Street and 100 William Street. The company has since deployed a $50 million capital improvement program that overhauled vertical transportation, lobbies, common corridors, power plants and fuel delivery systems.

For more news and information visit Blumberg Capital Partners.

US Commercial Prices Fell 3.3% in August

The latest report from Moody's Investors Services has been released showing that commercial prices in the U.S. dropped 3.3% from July to August of this year, a continued decline in the market that's seen prices down some 45.31% since the peak set in October 2007. Moody's commercial real estate prices are now 19% lower than the consumer price index but analysts expect the index to "revert to a long term trend line close to that of the CPI".

"The commercial real estate market in the US has become trifurcated with prices rising for performing trophy assets located in major markets, falling sharply for distressed assets, and remaining essentially flat for smaller healthy properties," said Nick Levidy, Moody's managing director in a Property Wire article. The Moody's/REAL CPPI report is produced by the MIT/CRE and is a complimentary report to their alternative transaction based index (TBI) as it is published monthly and is formulated from a completely different dataset supplied by Real Capital Analytics, Inc. and Real Estate Analytics LLC.

For more news and information visit Blumberg Capital Partners.

£340M Leadenhall Building Deal Signed

The British Land Company and Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS) Worldwide Group of Companies, have signed a deal to develop the Leadenhall Building in London on a 50:50 joint venture basis. According to CBC News, the total development cost for the project is expected to be £340 million. The project will become one of the tallest and most iconic buildings in London offering 610,000 square feet of ofice space in the heart of Square Mile and will include a four storey landscaping public space at the base of the building.

“We are delighted to be announcing the development of the Leadenhall Building,” Chris Grigg, British Land's CEO, said Monday. “With its unique and iconic architecture, it is a building which will provide an unbeatable combination of style, presence, location and office floor space in the heart of the City of London.” Practical completion to shell and core is expected in Q2 2014.

For more news and information visit Blumberg Capital Partners.

Real Estate Investment World Japan - Keynote Address

Keynote Address: Insights into the growth potential and limitations of high-yield investing within the cyclical Japanese property market.

Thank you.

It’s very good to be back here in Tokyo after so many years.
The city is vibrant.
And complexes like this one, Mid Town, contribute to its staying at the top of world cities.

Our company invests in Class A and Class S properties primarily in the United States, and I anticipate as the deflationary environment abates over the next few years we will look to invest in Tokyo and Japan as well.

What's the reason for my optimism about Japan:

Its resilience and determination.

Japan stands to benefit as its collective strengths including a highly developed industrial base, innovative manufacturing and consumer sectors, its transport sector and its intellectual base become a resurgent force.

While Japan's overall economic and real estate have experienced decades of slow growth, and even sometimes deflationary periods, this will end as inflationary pressures grow globally.  A key investment assumption.

Capital flows will ultimately seek out opportunity here in Japan.

As investors, we plan to invest in your economy and in your real estate as well.

We believe in the fundamental economic and societal strength of Japan, Japanese companies and
the Japanese market.

So Japan is, and will continue to be, one of the world's major economic forces, in spite of intense
competition on all fronts.

Polarization of the world increasingly around:

• China and Chinese economic interests.
• Emerging markets and resource rich nations.
• And the developed world –
  the West and free Asia.

Commodities, real estate, infrastructure will be among the leading focus of economic investment.

In this environment I anticipate closer ties and partnerships with the US.

Conflicts are very widespread:

• Currency, economic and trade.
• Cultural and religious.
• Terrorism and rogue nations.
• Territorial conflict.

In Europe general and industry strikes abound - remarkably in the middle of a deep recession.

Responsible calls for austerity bring protest, strikes and violence. 

Violence threatens where there is political and nation conflict.

I don't say this to be pessimistic, just realistic.
Let's hope sanity prevails.

Investment capital and investors in this environment are understandably worried and much capital remains on the sideline.

However it’s missing opportunities in today's market while waiting for re-assurance of safety in tomorrow’s.

Fear is their enemy.

Looking to the future the world is much more dynamic and will be different in ways I know and ways I don't know.

Let me show you the real estate world I think we face together (with the caveat that world political conflict can overtake any market).

Japan's market and the rest of the world's intersect after this economic crisis. 

So the key to high yields will be much more like we have seen in the US.

And the risks will be too.

Inflation and commodities and core inflation impact will lift,

and sometimes threaten,

commercial Real Estate markets globally.

Inflation

Inflation will be due to:

• Fiscal inflation
• Consumption increase
• Scarce resource will drive commodity prices up.

Commercial Real Estate and office buildings in particular are really like a barge of commodities assembled in a way that generates strong inflation adjusted yields.

• Globally, indexed rents will prevail.
  
• As will rent inflation and replacement cost inflation
  
• Inflation and debt costs will rise globally.
  
• Hedging those risks will be important.
  

Risk mitigation in general will be more and more important in all cyclical industries.

High yields will require more discipline, and attention to risk.

Market Timing,

awareness of capital flows not just RE market conditions, operational competitiveness of tenant and tenant stability and what unusual for our
Industry - customer focus

And a stable tenant base - which means much more attention to basics and awareness of competition and repositioning opportunities.

In this environment new Fund products need to focus on current yield and upside with preservation of capital foremost.

We are the top duration investment manager in the US over the last 16 years.

Our new Funds, Real Estate, Commodities, Health Care and Media & Entertainment in this environment are focused on annual cash distribution, and risk adjusted returns.

Risk mitigation is key though.

As an example I will cite my company's experience in our cyclical markets which I believe will be much like what Japan will face.

Let's look closer at these issues.....

High yields will require more discipline, market timing, awareness of capital flows not just real estate market flows, operational competitiveness of tenant and tenant stability and what unusual for our industry – customer focus And a stable tenant base – which means much more attention to basics and awareness of competition and repositioning opportunities.

Buy low, Sale high, managed well in between, indexed to inflation equal high yield.

For those who believe they are smarter than the market, only more 2008’s lie ahead.

However in a world full of risk and volatility opportunities abound.
But only for those who act prudently, understand risk and timing and respect the market.

CPPIB Invests $91M in DC Market

The Canada Pension Plan Investment Board (CPPIB) announced a joint venture with Vornado Realty Trust wherein CPPIB acquired a 45% ownership interest in two Washington, DC properties for $91 million according to a CoStar report. CPPIB made an equity investment to assume 45% of the existing mortgage indebtedness for 1299 Pennsylvania Avenue (the Warner Building) and 1101 17th Street NW, two prime office properties in Washington D.C. owned by Vornado. Vornado Realty Trust said, "We are pleased to have CPPIB, one of the world’s most prominent institutional real estate investors, as a new partner in these two buildings. Like us, they primarily focus on top quality properties in major U.S. cities."

The Warner Building, is a 13-story class A office building with over 600,000 square feet of space located some three blocks east of the White House. The building also includes the historic Warner Theatre, a 1,850-seat theatre that has been restored to its original grandeur. 1101 17th Street NW is a 13-story office building containing over 200,000 square feet on the North East corner of L Street and 17th Street NW in Washington’s commercial/business district.

For more news and information visit Blumberg Capital Partners.

Phoenix VA Building Sold for $20.3M

Marcus & Millichap Real Estate Investment Services brokered the sale of a 95,558-square foot single-tenant office building in Phoenix, Arizon for $20.3 million, or $212 per square foot, a property currently leased to the U.S. Department of Veteran's Affairs. Located at 3333 North Central Ave. in Phoenix, the three-story office building sits on 4.9 acres within blocks of the VA Medical Center and St. Joseph's Hospital and Medical Center.

The buyer was an overseas investor based in the Netherlands which purchased the property in partnership with a private investor based in Oregon. Marcus & Millichap arranged acquisition financing in the amount of $15.1 million for the buyer; New York City-based CTL Capital originated the loan, which was then sold off to bond investors according to a GlobeSt.com article. "The facility was built-to-suit for the VA in 2003," said Travis Trautvetter, a senior associate with Marcus & Millichap. "The VA occupies the building on an original 20-year lease term. In addition to the strong credit of the tenant, the primary location of this property within Phoenix was a key driver of buyer interest. We received multiple offers on the property, reflecting the strong demand that exists in today's market for investment-grade assets."

For more news and information visit Blumberg Capital Partners.

ProLogis Sells $1.02B in Properties to Blackstone Group

ProLogis, a global provider of distribution facilities, has entered into an agreement to sell a North American industrial portfolio, its minority interest in a hotel property and interests in three of its property funds to Blackstone Real Estate Advisors for $1.02 billion according to a Reuters report. The portfolio covers 23 million square feet over 180 properties in North America, the sum of which is currently 95.6% leased with an average lease term of nearly thre years. The transaction is expected to bring ProLogis' year-to-date dispositions to more than $1.6 billion, exceeding its forecast for the year.

"We are pleased to announce this transaction and to have exceeded the top end of our expected range of dispositions," Walter C. Rakowich, ProLogis Chief Executive Officer said. "This transaction with Blackstone supports our strategy of redeploying our investment in non-strategic, direct owned North American assets into further de-leveraging and future development activity to enhance the geographic diversification and overall quality of our portfolio." The Hotel Property, which is being separately acquired by Blackstone affiliate Hilton Worldwide, Inc., includes ProLogis' approximately 25 percent minority interest in the Hilton New Orleans Riverside and an indirect interest in adjacent land and related affiliates.

For more news and information visit Blumberg Capital Partners.

Granite Tower in Denver is Up for Sale

Granite Properties Inc. has placed the Granite Tower in Denver up for sale for an undisclosed asking price according to the Denver Business Journal. Granite originally purchased the landmark property for $88.5 million in 2005, or roughly $160 per square foot, from Amerimar Enterprises Inc. of Philadelphia. Mike Winn and Tim Richey of Cushman & Wakefield of Colorado Inc. are marketing the building for Granite. Stephanie Lawrence, the managing director for Granite, said in the article that the company decided to place the skyscraper on the market now due to the improving national commercial real estate investment market, and the attractiveness of downtown Denver office buildings to investors.

The 561,000 square foot 31-story Granite Tower, located at 1099 18th Street, was originally built in 1983 and previously known as Plaza Tower as part of the two-square-block Denver Place complex. The building is currently 95% leased with major tenants including Anadarko Petroleum, Robinson Waters & O'Dorisio PC and Jackson Kelly PLLC.

For more news and information visit Blumberg Capital Partners.

Office Market Recovery Advancing Says CoStar Report

CoStar Group's 2010 Third Quarter Office Review and Outlook was released this week, confirming that the office market recovery is underway. CoStar's research shows that the recovery is still in its early stages and may not be abundantly evident in all US markets, but confirms that the 3rd quarter results in the office market posted positive net absorption for the second consecutive quarter.

"Leasing activity in the quarter was healthy and robust,"said Andrew Florance, CEO of CoStar Group in the company's webinar presentation. "We're now seeing the strongest leasing activity numbers we have seen since the peak of the market [in 2005 and 2006]." Hilights from some major markets follow:

New York: "What I am seeing in the office leasing market is smaller tenants getting lower renewal rents (dollars per square foot), taking less square feet be it renewed or tenants consolidating, and landlords doing more tenant improvements," said Adelaide Polsinelli, associate vice president investments for Marcus & Millichap. "Larger tenants are doing the same as smaller tenants except they are taking advantage of the lower rents and taking on more space in buildings where they want to stay for a longer time."

Boston: "The lifeblood of the Boston market is its knowledge-based sectors, and those innovative companies which by definition start small, then grow," said Mary Sullivan Kelly, senior vice president and chief research officer for Colliers Meredith & Grew. "I can tell you that anecdotally, we are seeing growth from a number of firms -- particularly small and mid-sized tech and life science firms, some increasing their space requirements marginally, some by 50% or more, and this is an encouraging sign."

Atlanta: "Today, while money may be cheap, credit (along with collateral) is nearly nonexistent. This leaves the tenant to face either paying for tenant improvements themselves or adjusting their business practices to fit an existing layout,"said Rob Hill, commercial brokerage sales and leasing with Hill Corporate Partners. "Paying for tenant improvements, from a practical standpoint, requires a longer term to justify (and depreciate) the expense. Unfortunately, in today's world, five years can easily see a company's whole business strategy change."

For more news and information visit Blumberg Capital Partners.

CA Selects Buyer for State Buildings at $2.3B

According to an Associated Press article the Department of General Services in California has selected California First LLC, a partnership led by Hines and Antarctica Capital Real Estate, as the buyer for 11 state office properties that went up for bid earlier this year with a winning offer of $2.33 billion. The sale will result in more than $1.2 billion for California's state general fund and $1.09 billion to pay off bonds on the properties. Over the next 20 years, the state will reportedly lease the offices back from the new owner at predetermined rates, and will no longer maintain, operate, or repair the buildings. All the leases with California First allow the state to buy back any or all of the buildings at anytime during the 20-year term. The offices included in the portfolio are:
  • Attorney General Building, Sacramento
  • California Emergency Management Agency Building, Sacramento
  • Capitol Area East End Complex, Sacramento
  • Elihu M. Harris Building, Oakland
  • Franchise Tax Board Complex, Sacramento
  • San Francisco Civic Center, San Francisco
  • Junipero Serra State Building, Los Angeles
  • Department of Justice Building, Sacramento
  • Public Utilities Commission Building, San Francisco
  • Judge Joseph A. Rattigan Building, Santa Rosa
  • Ronald Reagan State Building, Los Angeles

"Far from a fire sale, this was a stiff, multiple-offer competition that generated favorable pricing for the state," Kevin Shannon, vice chairman of CB Richard Ellis, which brokered the sale, said in a written statement. Rich Mayo, one of the chief investors, said California, despite its financial problems, is a reliable investment. The state is not a tenant prone to "run out on leases or anything," he said in a Sacramento Bee article.

For more news and information visit Blumberg Capital Partners.

South Florida Medical Office Buildings Bought for $47.1M

Tenet Healthcare Corporation, a health care services company, has sold nine of their South Florida medical office buildings to AW Property Company in a $47.1 million cash deal according to The Palm Beach Post. AW Property completed the deal through its joint venture with Behringer Harvard, a purchase that totaled 630,000 square feet. “This medical office portfolio provides an attractive value-added investment opportunity,” AW Property Managing Director Brian Waxman said in a news release.

The buildings sold in the portfolio include:

The Victor Farris Building, at 1411 N. Flagler Drive in West Palm Beach. The 148,000-square-foot medical office, next to Good Samaritan Medical Center, will get extensive upgrades.

The eight-story Palmetto Medical Plaza, a 130,000-square-foot building at 7100 W. 20th Ave., in Hialeah near Palmetto General Hospital.

Hialeah Medical Plaza, a 72,000-square-foot office building at 777 E. 25th St., near Hialeah Hospital.

The 56,000-square-foot North Shore Medical Arts building, at 1190 N.W. 95th St. in Miami, near North Shore Medical Center.

Four medical office buildings for a combined 207,000 square feet near Florida Medical Center in Fort Lauderdale.

The 20,000-square-foot St. Mary’s Professional Center, at 5035 Greenwood Ave. in West Palm Beach, near St. Mary’s Medical Center.

For more news and information visit Blumberg Capital Partners.

Philip Blumberg on CNBC Europe - Time to Invest in Dubai?

"I think places like Dubai still have a few years to go before they can wash out enough inventories so it makes sense from an investor perspective," Philip Blumberg, chairman and CEO at Blumberg Capital Partners told CNBC on real-estate prices in the Middle East.

A&B Sells Distribution Center for $43M

A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc.,has announced the sale of the Ontario Distribution Center for $43 million according to a BusinessWeek article. The 898,400 square-foot, three-building industrial park sits on a 38 acre plot in Ontanrio, California and was originally purchased by A&B for $27 million in 2000. Major tenants include Home Depot, Best Furniture, Quill Corp., and Crothall Laundry Service.

Norbert Buelsing, president of A&B Properties said, "We achieved an exceptional 97 percent average occupancy during our 10-year ownership and realized favorable pricing for the property. Consistent with our real estate investment strategy, we anticipate reinvesting the proceeds from this sale, through a tax-advantaged 1031 transaction, into other commercial real estate investments with good growth prospects."

For more news and information visit Blumberg Capital Partners.