Tuesday, May 31, 2011

REIT Buys UN Building in NYC for $114M

Government Properties Income Trust, an REIT owning properties throughout the United States that are majorly leased to the government, has acquired the New York City building leased to the United Nations for $114 million according to a Bloomberg report. The 16-story property at 305 E. 46th St. was sold by Extell Development Corp. and the transaction was brokered by Stan Johnson Company and Williamson, Picket, Gross Inc.

"This property fits well within our business strategy of owning buildings leased to the government," said David Blackman, president and chief operating officer of Government Properties Income Trust. "We like it because of its Manhattan location and we believe that the UN will stay in this building long term."

The property, also known as the Albano Building, contains 187,060 square feet that is 100% leased to the United Nations per a deal inked in 2007. The building was designed by Frank S. Parker and built in the early 1950s, undergoing extensive renovations in recent years.

For more news and information visit Blumberg Capital Partners.

Monday, May 30, 2011

Microsoft Moving to Moffett Towers

Moffett TowersMicrosoft Corporation announced this week that it has entered into a long-term lease agreement to take up 237,000 square feet at Moffett Towers in Sunnyvale, California according to a GlobeSt.com article. The company will be making the move from its current spaces in Palo Alto and Mountain View, a total of roughly 160,000 square feet of space, and expects to begin occupying 1020 Enterprise Way in January 2012. While the terms of the deal were undisclosed, it's been reported that asking rates for Moffett Towers are $2.95 per square foot per month.

Moffett Towers is a 1.8 million square foot office/R&D campus in the heart of Silicon Valley developed by San Francisco-based Jay Paul Company. Other tenants include HP, which leased 393,776 square feet in April, and Motorola Mobility, which leased 236,444 square feet in March.

"Microsoft's lease is another significant endorsement from a market leader of the unparalleled Moffett Towers office park experience," said Cornish & Carey Commercial Newmark Knight Frank Executive Vice President Phil Mahoney, which represents Jay Paul Company's Moffett Towers property in all leasing engagements. "Recent leasing activity at Moffett Towers alone has dropped the city of Sunnyvale's office vacancy rate nearly 10 percentage points. This state-of-the-art campus is changing the landscape of this real estate market."

For more news and information visit Blumberg Capital Partners.

Friday, May 27, 2011

Cassidy Turley to Acquire Carter Property Management Business

Cassidy Turley, the commercial real estate services provider, has entered into an agreement to buy the brokerage and property management business of Carter for an undisclosed amount according to a St. Louis Business Journal article. Carter, founded in 1958 in Atlanta, is a national leader in project development, commercial real estate services and investments with full-service offices in Atlanta and Tampa. Once the acquisition is completed, Carter's Brokerage Services and Property and Facility Management groups will operate as Cassidy Turley.

"Cassidy Turley is delighted to announce our commitment to acquire the brokerage and property management businesses from Carter," said Mark Burkhart, Cassidy Turley CEO. "Carter's thoughtful and client-driven approach is consistent with ours and will provide our clients across the country access to the best advice from an industry leading team in this region. The addition of Carter will allow us to offer our full spectrum of services in two significant markets—Atlanta and Central Florida."

"We are excited about moving forward in the process to join Cassidy Turley. This move will allow us to grow and strengthen our service business by leveraging Cassidy Turley's leading capital markets, leasing, property management and corporate services platforms" said Bob Peterson, Chairman and CEO of Carter. "With Cassidy Turley's national platform and service approach, we can better serve our clients with multi-market needs. In addition, Cassidy Turley's scale and reputation for workplace satisfaction will enable us to offer our professionals additional growth opportunities and a culture that complements Carter's."

For more news and information visit Blumberg Capital Partners.

Thursday, May 26, 2011

Philip Blumberg on CNBC Squawk Box 5/26/11

Investment in Real Estate is Investment in Commodities

Commodity pricing has a huge effect on commercial property prices and commodity prices help to drive up the price of office real estate, Philip Blumberg, founder and Chairman, Blumberg Capital Partners told CNBC. Western markets were also still oversupplied in terms of housing compared to emerging markets, he added.

Wednesday, May 25, 2011

$1B Midtown Office Tower to Resume Construction

After signing a new lease with the law firm of Morrison & Foerster LLP, Boston Properties announced this week that construction on its 39-story office tower in New York City would resume as early as this fall. Morrison & Foerster will lease roughly 180,000 square feet at the tower at 250 West 55th Street and expects to move into the completed building in the spring of 2014.

After breaking ground in late 2007, Boston Properties announced it would halt construction on the tower in early 2009 after the completion of excavation and foundations and construction of the building to grade level according to a CoStar report. The 1,000,000 square foot, LEED Gold pre-certified office building is expected to cost $1.05 billion once the project is complete. Morrison & Foerster LLP was represented by Paul Myers, John Maher and Tom Shirocky of CBRE, and Boston Properties was represented by John Powers and Peter Turchin, also of CBRE.

For more news and information visit Blumberg Capital Partners.

Tuesday, May 24, 2011

PNC Building New $400M Headquarters

Tower at PNC PlazaThe PNC Financial Services Group, Inc. announced this week that it would be constructing a new skyscraper in Pittsburgh, dubbed the Tower at PNC Plaza, that will serve as the company's new headquarters when complete in 2015. Located at the southeast corner of Fifth Avenue and Wood street, the approximately 40 story, 800,000 square foot building will be "the world's most environmentally friendly skyscraper" according to PNC.

"When the Tower is complete, we will have invested more than $700 million in green buildings at the heart of the city," said James E. Rohr, chairman and chief executive officer of PNC. The Tower will feature a double glass facade, state-of-the-art, high efficiency heating and cooling systems and will be oriented to take advantage of sunlight in workspaces, reducing the need for artificial light during the day. The designers in the Pittsburgh office of Gensler are also currently exploring fuel cells, solar panels, geothermal systems and other alternative power generation sources that will significantly reduce carbon emissions. The Tower will also feature green rooftops to collect rainwater and channel it for use in other parts of the structure.

"A headquarters facility is the cornerstone building of any company's portfolio, embodying company values and business ethics. PNC is making a strong statement by building their forthcoming headquarters to Leadership in Energy and Environmental Design standards," said S. Richard Fedrizzi, president, chief executive officer and founding chairman of the United States Green Building Council.

For more news and information visit Blumberg Capital Partners.

Monday, May 23, 2011

NAR Says CRE Markets Stabilizing

The National Association of Realtors (NAR) has released its latest Commercial Real Estate Outlook report with projections and observations for the commercial real estate sectors and analysis of quarterly data. The report indicates that the improving economy and job creation will lead to growing demand for commercial real estate and reflects an overall stabilization in the market. "Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year," said Lawrence Yun, NAR chief economist. "Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising."

An excerpt from the report regarding office market conditions:

Vacancy rates in the office sector are expected to fall from 16.3 percent in the second quarter of this year to 15.3 percent in the second quarter of 2012.

The markets with the lowest office vacancy rates currently are Honolulu and New York City, each with vacancies below 9 percent.

Office rents are projected to rise 0.3 percent this year and another 4.3 percent in 2012. 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, is likely to be 26.6 million square feet in 2011.

For more news and information visit Blumberg Capital Partners.

Friday, May 20, 2011

JW Marriott Denver Sold for $72.6 Million

The JW Marriott Denver Cherry Creek has been contracted for purchase by DiamondRock Hospitality, a a self-advised real estate investment trust (REIT) based in Bethesda, MD, for $72.6 million according to a Denver Post article. The 196-room hotel at 150 Clayton Lane was sold by Denver's Sage Hospitality, which bought the property in 2006. Sage has also managed the property since 2005 and will continue to do so under the new owner under contract.

"There's been a lot of activity in the commercial real estate side, this was a good and fair price and we just thought it was the right time," said Sage CEO Walter Isenberg.

"We are excited to acquire this high-quality, newly renovated hotel in Denver," said Mark Brugger, CEO of DiamondRock. "Denver has long been one of our target markets, in part because of its superior RevPAR growth rates over the past 25 years and excellent growth prospects. With luxury finishes and a 2011 RevPAR of $165, this acquisition enhances the overall quality of the DiamondRock portfolio."

For more news and information visit Blumberg Capital Partners.

Thursday, May 19, 2011

One Washingtonian Center Sold for $90M

One Washingtonian CenterCB Richard Ellis Investors successfully acquired One Washington Center in Gaithersburg, MD from LaSalle Investment Management Inc. this month for a purchase price of $90 million, or roughly $285 per square foot, according to a Washington Business Journal article. LaSalle originally purchased the property in 2000 for $59.25 million as reported in tax records. Cassidy Turley represented LaSalle in the transaction; the buyer's representation was undisclosed.

One Washingtonian Center,built in 1989, is a 315,929 square foot Class A office building located at 9801 Washingtonian Boulevard just off of Interstate 270 in Gaithersburg. In July 2010, the building received LEED Platinum certification by the U.S. Green Building Council under the Leadership in Energy and Environmental Design for Existing Buildings: Operations & Maintenance Green Building Rating System. The building was reportedly 88% leased at the time of sale with Sodexo, Inc. as its anchor tenant occupying over half of the property as its North American headquarters.

"Our commitment to sustainability, coupled with our interest in amenity-rich, pedestrian-friendly, mixed-use properties, make this an ideal fit for the Strategic Partners U.S Value 5 portfolio," Vance Maddocks, president of CBRE Strategic Partners U.S., said in a press release. "We are thrilled to acquire such a high-quality, well-located building in this market and believe that our capital campaign, coupled with our strength of ownership, will give One Washingtonian Center a distinct competitive advantage in the market."

For more news and information visit Blumberg Capital Partners.

Wednesday, May 18, 2011

Real Estate Delinquencies in US Top 10%

According to a new report from Morgan Stanley, delinquencies on commercial loans packaged and sold off as bonds topped the 10% mark last month for the first time in the United States. Morgan Stanley analysts said that payments that were more than 30 days late jumped 26 basis points to 10.15% in April. Delinquency rates for loans bundled into securities during the bubble years, when property values peaked amid lax underwriting, have reached 10.37% for 2006 deals and 13.26% for those in 2007.

"The bottom line is that loan performance is not yet exhibiting significant improvement," according to the analysts led by Richard Parkus in New York. "Many market participants have come to believe that credit deterioration is more or less over, and were caught off guard by April’s rise."

"Loans originated after 2005 had weaker loan characteristics," Parkus said in a telephone interview with Bloomberg. "On top of that, they were done at the peak of the cycle so they didn't benefit from any price appreciation prior to the crisis."

For more news and information visit Blumberg Capital Partners.

Tuesday, May 17, 2011

Dixie-Lobo Portfolio Sold to Grubb & Ellis REIT

Grubb & Ellis Healthcare REIT II announced this week that it had successfully acquired the Dixie-Lobo Medical Office Building Portfolio from eight individual selling entities, all of which were directly or inderectly controlled by Seavest, Inc. The REIT financed the acquisition with a a $23.24 million loan assumption and cash proceeds received from its offering according to a Citybizlist Dallas article.

"The Dixie-Lobo Medical Office Building Portfolio epitomizes what Grubb & Ellis Healthcare REIT II values in medical office acquisitions," said Danny Prosky, president and chief operating officer. "They are all located on thriving hospital campuses with long-term stabilized tenancy, are immediately accretive to our bottom line and supportive of our investor distribution. We are very pleased to add these properties to our high quality portfolio of clinical medical buildings."

The portfolio covers 10 medical office buildings in Arkansas, Louisiana, New Mexico and Texas totaling more than 156,000 square feet. The properties include:

- 302 Bill Clinton Drive, Hope, Ark. A single-story, 9,000-square-foot property on the campus of Medical Park Hospital.

- 1920 W. Sale Road, Lake Charles, La. A single-story, 15,000-square-foot building on the campus of Women & Children's Hospital.

- 2420 W. Pierce St., Carlsbad, N.M. A two-story, 24,000-square-foot building on the campus of Carlsbad Medical Center.

- 5419 N. Lovington Highway, Hobbs, N.M. A single-story, 15,000-square-foot building on the campus of Lea Regional Medical Center.

- 2510 & 2420 E. Main St., Alice, Texas. Two single-story buildings totaling 25,000 square feet on the campus of Christus Spohn Hospital Alice.

- 302 Medical Park Drive, Lufkin, Texas. A single-story, 15,000-square-foot building on the campus of Woodland Heights Medical Center.

- 110 Medical Drive, Victoria, Texas. A single-story, 33,000-square-foot building on the campus of De Tar Hospital North.

- 2112 Regional Medical Drive, Wharton, Texas. Two single-story buildings totaling 20,000 square feet on the campus of Gulf Coast Medical Center.

For more news and information visit Blumberg Capital Partners.

Monday, May 16, 2011

Amy's Kitchen Invests $63M in Greenville Location

Amy’s Kitchen will establish a new production facility in Greenville County, SC investing $63 million and generating more than 700 new jobs in the area over the next six years according to a WSPA News Channel 7 piece. Governor Nikki Haley made the announcement this week saying the move is "a major economic development win not just for the Upstate, but South Carolina as a whole. Amy’s Kitchen’s commitment to invest $63 million and create 700 new jobs will have an impact for years to come. Our administration continues to work daily on making sure South Carolina has the competitive business climate that attracts investments like this one. We thank Amy’s Kitchen for deciding to invest in the Palmetto State and look forward to a long relationship with them."

Amy's will be purchasing the former Sara Lee building and updating the facility with new machinery and equipment, expecting to begin their local operations in January 2012. The family-owned firm was founded 23 years ago by Rachel and Andy Berliner and is named after their daughter, Amy, according to the company’s website.

Andy Berliner, the CEO of the family-owned natural foods producer based in Sonoma County, said the move allows the firm to open its first East Coast plant.

"Greenville County provided us with an excellent site and an existing structure suiting our needs," Berliner said in a statement. "The state of South Carolina offered us a positive business environment as well as exceptional market access."

For more news and information visit Blumberg Capital Partners.

Friday, May 13, 2011

Porsche Building New $100M HQ in Aerotropolis

Porsche Cars North America Inc. has plans to build a new $100 million headquarters at Aerotropolis, a 130-acre mixed-use development in Atlanta, according to CoStar report. Groundbreaking on the new project is expected for this fall with the first phase of move-in scheduled for 2013. The "Aerotropolis Atlanta" development site is near the new International Terminal at Hartsfield-Jackson Atlanta International Airport. The new Porsche center will include office space for 400 employees and a Customer Experience Center that will feature a handling road course to demonstrate the capabilities of Porsche's vehicles.

"The unparalleled nature of the Porsche ownership experience absolutely deserves an equally unique home. That is what we'll create with our new headquarters – a concept completely new to the U.S. automotive industry, and one that delivers our brand and product experience to our employees, dealers and customers alike," said Detlev von Platen, President and CEO of Porsche Cars North America.

"We welcome the entire Porsche team to Atlanta's newest corporate center, the innovative Aerotropolis complex," said Kasim Reed, the mayor of Atlanta. "Porsche's decision to reinforce its roots and grow its next-generation U.S. headquarters here is a testament to the vitality and vibrancy of our city and an exciting addition to the many iconic brands that also call Atlanta home. The Porsche crest will be a perfect welcome sign to greet the hundreds of thousands of visitors and guests that land each day at the world's busiest airport in Atlanta."

For more news and information visit Blumberg Capital Partners.

Thursday, May 12, 2011

Ventas Acquires $3.1B in Real Estate Assets from Atria

Ventas, Inc. announced this week that it had completed the acquisition of $3.1 billion in 118 properties with the aide of Red Mortgage Capital, Berkadia Commercial Mortgage and PNC Bank according to a National Real Estate Investor article. Ventas acquired the 118 community portfolio through mergers of Atria Senior Living Group, Inc., and certain other companies that owned communities previously managed by the group, with Ventas subsidiaries. The lenders originated more than 120 commercial mortgage loans made to subsidiaries of Atria noted Thomas Hauser, partner at Ballard Spahr, which led the legal team that advised the lenders in the transactions.

"We are gratified to acquire this exceptional portfolio of seniors housing communities located in affluent coastal markets managed by Atria Senior Living, an industry leading manager," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. "This transaction demonstrates Ventas's strength at structuring and completing complex, multi-party transactions collaboratively. We are excited to join forces with Lazard Real Estate Partners and Atria's management team."

"We have been working closely with Ventas to finalize this transaction, and we are so pleased that today we can announce its completion," said John A. Moore, Atria's Chief Executive Officer. "This has been a complicated process, especially the structure of the transaction and the portfolio location in high barrier-to-entry real estate markets that havecomplex regulatory frameworks, but I believe that our ability to work together with the Ventas team to ensure a smooth transition is a great sign of things to come. We couldn't be more excited about what the future holds."

For more news and information visit Blumberg Capital Partners.

Wednesday, May 11, 2011

GM Investing $2B in US Facilities

General Motors Co. announced this week that it will be investing roughly $2 billion in 17 facilities across the U.S., preserving more than 4,000 jobs according to a Los Angeles Times article. The announcement comes after the company announced its fifth straight quarterly profit since emerging from bankruptcy.

"We are doing this because we are confident about demand for our vehicles and the economy," GM Chairman and CEO Dan Akerson said during an event at the 54-year-old Toledo Transmission Plant. "This new investment is on top of $3.4 billion and more than 9,000 jobs that GM has added or saved since mid-2009."

Over the next few months, GM will make specific facility investment announcements dependent on successful completion of state and local incentives in some communities. According to the nonprofit Center for Automotive Research, the ripple effect of the planned investments would add almost $2.9 billion to the U.S. Gross Domestic Product and create or retain more than 28,000 jobs.

GM spokeswoman Kimberly Carpenter said the company has about 1,300 laid off workers waiting to be recalled in the U.S. GM expects to recall all of them by the end of the year and already is adding workers at factories in Flint, Mich., Orion Township, Mich., and Delta Township, Mich., near Lansing.

For more news and information visit Blumberg Capital Partners.

Tuesday, May 10, 2011

Children's Hospital Renews, Expands Lease in Philadelphia

Wanamaker BuildingBehringer Harvard announced this month that The Children's Hospital of Philadelphia has renewed its current lease at the Wanamaker Building through June 2027 and expanded their leased space to exceed 250,000 square feet in the historic building. Children's Hospital first moved in to the space in 2005. In 2007, Behringer Harvard REIT I, Inc. acquired a majority interest in the building; Amerimar Enterprises, Inc. is one of the ownership partners and also serves as the managing agent for the property.

"The Children's Hospital of Philadelphia has had a distinguished presence in The Wanamaker Building since 2005, and we're pleased they will be with us for many years to come," said Ms. Deidre Hardister, Vice President of Asset Management for Behringer Harvard. "We will continue to provide them with the exceptional service that is a hallmark of the Wanamaker experience."

Completed in stages from 1902-1910, the Wanamaker Building at 13th Street and Market Street in Philadelphia served as the flagship of the John Wanamaker department store empire for decades and was later converted to offices in the 1980s as the need for urban department stores declined. The Wanamaker Building is home to the world's largest operational pipe organ, which is still played daily. Major tenants include U.S. General Services Administration, U.S. Army Corps of Engineers, U.S. Department of Housing and Urban Development, Hay Group, The Weightman Group and McGettigan Corporate Planning.

For more news and information visit Blumberg Capital Partners.

Monday, May 9, 2011

Hilfiger Buys MetLife Clock Tower for $170M

Clock Tower BuildingTommy Hilfiger has purchased 5 Madison Avenue, also known as the Clock Tower building, for $170 million with designs to turn the property into a hotel according to a New York Times article. The clothing designer purchased the property from Africa Israel USA (AFI), the American branch of Africa Israel Investments, an international holdings and investments group. Hilfiger sold his company last year for $4 billion has reportedly been shopping for a places to open his new hotel for some time.

"It's certainly a landmark in a neighborhood that's become more hotel-friendly in recent years," John Fox, a hotel industry specialist at PKF Consulting, said. "On the other hand, I'm not sure what a Hilfiger brand hotel is. I assume it's something with a preppy look to the design."

The famous 42-story Clock Tower building, once home to the Metropolitan Life Insurance Company is a preeminent icon of the Manhattan skyline. The 700-foot building was built in 1909 and remained the tallest building in the world until the Woolworth building beat it out in 1913. Overlooking Madison Square Park, AFI previously had plans to convert the tower into super high-end condominium apartments. AFI sold the property for $30 million less than the developer bought it for in 2007.

For more news and information visit Blumberg Capital Partners.

Friday, May 6, 2011

Google To Build New Green Office in Mountain View

Google has plans to build a new office space for the ever-growing company with a new complex being developed on Shoreline Boulevard, bordering the existing Googleplex, in Mountain View, CA. The internet giant has agreed to pay the city of Mountain View $30 million to lease 9.4 acres near Shoreline Boulevard for 53 years, one of the highest prices ever for land in that section of the city according to a San Jose Mercury News article. The new complex will add 600,000 square feet to Google's Mountain View footprint as the company continues to plan for their "biggest hiring year in company history".

Google has hired Ingenhoven Architects, a German company known for its green, sustainable projects in Sydney, Singapore, Osaka and more. A Google spokesperson told the Mercury News that they are looking to build "the most green, sustainable building possible," with construction set to begin as soon as 2012.

For more news and information visit Blumberg Capital Partners.

Thursday, May 5, 2011

Tishman Picks up VA Office Tower for $205M

Beacon Capital Partners sold a Class A office tower in Arlington, Virginia this week to Tishman Speyer for $205 million, or $523 per square foot, according to a CoStar report. While no brokers were disclosed for Tishman, Beacon Capital was represented by Cassidy Turley Commercial Real Estate in the deal. Tishman said that they plan to launch improvements on the property including renovations to the lobby and elevators along with adding a fitness center.

The 19-story property at 1300 N. 17th Street was built in 1980 in the Rosslyn-Ballston corridor outside of DC and features a full service cafe and five levels of underground parking. "We're very pleased with this opportunity to increase our presence by acquiring this attractive property in one of the nation's strongest office submarkets," said Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer. "With the availability of convenient, Class A space in short supply, Tishman Speyer is well positioned to take advantage of the emerging local marketplace opportunities."

For more news and information visit Blumberg Capital Partners.

Wednesday, May 4, 2011

RER Q2 Survey Shows "Slow and Uneven Recovery" in CRE Market

The Real Estate Roundtable has released its findings from the latest quarterly “Sentiment Survey” of senior commercial real estate executives which suggests that absent strong improvement in U.S. job markets and demand for business space, the nation’s commercial real estate sector will likely continue its slow, “bifurcated” recovery over the coming year. The survey collected market opinions from over 110 senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners & asset managers, financial services providers, and operators & related service providers. The full report can be read here.

"It's all about jobs," said Roundtable President and CEO Jeffrey DeBoer. "Individual segments of the market may be recovering, but until private sector job creation picks up, we will not be out of the economic danger zone. The huge pipeline of maturing commercial mortgages and large fiscal issues facing state and local governments are additional 'headwinds' that could impact recovery in the broader economy and commercial real estate. The flatter trajectory we're seeing in the Q2 Sentiment Index is a reflection of these ongoing economic risks and uncertainty."

"Congress needs to help bridge the massive 'equity gap' between today's diminished property values — particularly in second-tier markets — and the high levels of debt that must be refinanced and paid off," said DeBoer. "Policy action is also needed to make the nation more competitive on a global level. Until that is achieved, industry optimism will remain dampened due to economic weaknesses that remain far from resolved."

For more news and information visit Blumberg Capital Partners.

Tuesday, May 3, 2011

Brookfield Takes Majority Interest in Manhattan Tower

The Wall Street Journal reported today that Brookfield Office Properties is taking a majority interest in 450 W. 33rd Street, a 1.6 million square foot Class A office building ,in a joint venture with Broadway Partners. The terms of the deal have not been disclosed, it is known that Broadway purchased the property in 2007 for $664 million. The Carlton Group acted as financial advisor to Broadway.

An excerpt from the article:

Control of the property will be shared. Brookfield isn't investing a significant amount of money up front for a majority stake in the building. But it will be on the hook when the 1.6-million-square-foot property's $517 million in debt comes due in the middle of next year, the people say. Broadway Partners, an active buyer during the boom years, has been struggling to hold on to a slew of top-of-the-market skyscraper purchases. Teaming up with publicly traded Brookfield gives Broadway a deep-pocketed partner that will allow Broadway Partners to retain a stake in the building rather than to lose it outright in a foreclosure.

For more news and information visit Blumberg Capital Partners.

Monday, May 2, 2011

Valad Acquired by Blackstone for $227M

Valad Property Group, an Australian real estate investment group, has entered into an agreement to be sold off to the Blackstone Group for about $227 million, with Blackstone assuming Valad’s $655 million in debt, according to a New York Times article. Valad said in a statement on Friday that its directors had unanimously recommended the takeover scheme implementation deed in the absence of a superior proposal. "The Valad Board has been considering a range of strategic options to maximise securityholder value, including maintaining the status quo, a recapitalisation via an equity raising, a series of select asset sales and an orderly wind-up," Valad chairman Trevor Gerber said.

Blackstone will pay A$1.80 a share, a 56 percent premium to Valad's closing price on April 27 as reported by the San Francisco Chronicle. "In the absence of another bid, this is the lesser of the two evils," said Winston Sammut, managing director of Sydney- based Maxim Asset Management Ltd. "If there was a wind down of the company, it’s doubtful whether shareholders would be able to get that price."

For more news and information visit Blumberg Capital Partners.