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.