Monday, April 30, 2012

Downtown Nashville's Oldest Building Sold to Local Investors

William Soileau and Aline Richardson sold a historic downtown Nashville building for $1.87 million to a group of local investors, including Rob Lowe with Cassidy Turley. According to a Nashville Business Journal article, the new owners plan to spend $350,000 renovating the building and hope to secure a restaurant tenant by the fall. The building is across the street from Bridgestone Arena, home of the Tennessee Titans. "It's absolutely an investment in location," Lowe said.

The brick two-story, 5,000 square foot building is considered the oldest residential building in downtown Nashville. The building at 104 Fifth Avenue South was used by the "underground railroad" prior to the Civil War to help runaway slaves escape to the North. A renovation on the property in the 1980s revealed an 18-inch layer of silt and sand in a sealed-off basement, evidence that the Cumberland River had flooded as far west as Fifth Avenue in the early 1800s.

For more news and information visit Blumberg Capital Partners.

Thursday, April 26, 2012

Cal-Bay Acquires $200M NorCal Commercial Development

Cal-Bay International, Inc. announced this week that it is acquiring 50% ownership in a joint venture agreement of land development with First Capital Real Estate Investors. The 200 acre commercial development project in Oroville Industrial Park in Northern California, an approved California "Enterprise Zone,", is expected to be valued in excess of $200 million when fully developed. The two companies will form a Cal-Bay Subsidiary LLC, equally jointly owned by Cal-Bay and First Capital, titled Cal-Bay First Capital LLC.

The current market value of the 200 acre fully entitled land in Oroville, as surveyed by Michael Dequine and Associates, Inc., is appraised at $17.4 million. Plans for the property have not yet been disclosed. Closing of the deal is anticipated to be on or before May 5 according to a Central Valley Business Times article.

For more news and information visit Blumberg Capital Partners.

Wednesday, April 25, 2012

SWBC Acquires Royalton Real Estate Capital

SWBC announced this week that it had acquired 100% interest in Royalton Real Estate Capital, forming a new company called SWBC Real Estate, LLC. According to a San Antonio Business Journal article, SWBC acquired a 59% stake in the real estate firm — a developer and investor of commercial real estate properties throughout Texas — in 2008 prior to this transaction, which secured the remaining 41% of the company. SWBC has said that all of Royalton's current employees will stay in the company.

"This has been a very successful venture since our original investment," said SWBC President Gary Dudley. "So, naturally we are excited about the acquisition."

"Our goal is to continue to see growth in this real estate operation," said SWBC Chairman Charlie Amato. "In 2008, SWBC entered into a relationship with Royalton. It has been such a great fit that we decided we wanted to expand our ownership in the company."

For more news and information visit Blumberg Capital Partners.

Tuesday, April 24, 2012

New $1B Manufacturing Plant Build in GA

Baxter International, a global leader in biologic medical therapies, announced this week that it will build a $1 billion manufacturing facility in Covington, Georgia to support growth of its plasma-based treatments. The new facility is expected to create more than 1,500 full-time employment positions in Georgia, and over 500 more across multiple U.S. locations. The new facility will support plasma fractionation, purification, fill-finish and include a testing lab.

"This investment demonstrates our long-term commitment to patients around the world who rely on our plasma-based therapies," said Robert L. Parkinson, Jr., Baxter's chairman and chief executive officer.

According to a report in the Atlanta Journal-Constitution state incentives totaling $78 million helped with the decision to locate in Georgia. Furthermore the company could qualify for an estimated $32 million in savings from a sales tax exemption on machinery and equipment plus construction materials included in a new tax law, according to the paper. Another $13.75 million grant comes from the OneGeorgia discretionary fund, as reported by IndustryWeek.

"Baxter's decision to come to Georgia marks a new era in the growth of our biosciences industry and will have far-reaching impact on our economy," said Georgia Governor Nathan Deal. "We are honored to welcome this flagship company to Georgia and proud that our state's vast resources for the biomedical field will assist the company with the groundbreaking medical advances it is renowned for. Baxter's commitment to Georgia moves us closer to making Georgia the No. 1 state in which to do

"We would like to thank Governor Nathan Deal and the many other officials involved in the site selection process, and we look forward to becoming part of the Georgia community," said Ludwig Hantson, Ph.D., president of Baxter's BioScience business.

Baxter, unlike some other health-care companies, has seen consistent sales and profit growth in recent quarters as the medical devices, pharmaceuticals and biotechnologies it makes treat serious medical problems that can't be ignored, such as cancer, immune disorders and trauma according to a Wall Street Journal report.

For more news and information visit Blumberg Capital Partners.

Monday, April 23, 2012

CBOT Building Sold for $151.5M

CME Group announced this week that it had sold two of the three buildings that comprise the Chicago Board of Trade (CBOT) complex for $151.5 million to a joint venture between GlenStar Properties LLC and USAA Real Estate Company. The sale price for the north and south towers, totaling roughly 1.3 million square feet of space, came in at the low end of an anticipated range of $150 million to $180 million reported by The Wall Street Journal in February. As part of the sale, CME Group will lease back the 150,000 square-feet of space it currently occupies in both buildings for a 15-year term, including the Agricultural Trading Floor as well as office and trading floor support space. According to the WSJ, the property initially had been expected to fetch as much as $210 million, but its value was seen affected by economic uncertainty stemming from the European debt crisis as well as the collapse of brokerage firm MF Global Holdings Ltd., a major tenant.

"CME Group, which has been headquartered in Chicago for more than a century, continues to be committed to this city and to maintaining our trading floors and office space in the 141 W. Jackson building," said CME Group Chief Financial Officer Jamie Parisi. "We are extremely pleased to be able to sell our landmark building to the GlenStar Properties and USAA Real Estate Company consortium who will be great landlords for us and the other tenants. It will also allow CME Group to continue to focus on what we do best - running our exchanges and providing risk management tools to the world."

The new owners of the property plan to use its infrastructure to attract "a wealth of new technology companies," according to a statement from Michael Klein, principal at GlenStar, as reported by Fox Business.

For more news and information visit Blumberg Capital Partners.

Friday, April 20, 2012

Russell Investments Center Sold for $480M

Northwestern Mutual announced Friday that it has sold the Russell Investments Center at 1301 Second Ave. in Seattle to CommonWealth Partners, a privately held real estate investment, development and management firm based in Los Angeles, for $480 million. According to the Northwestern Mutual press release, it is believed to be the largest single asset office sale in the Western United States since 2006. CBRE served as broker for the transaction through a team led by Vice Chairman Kevin Shannon.

"This transaction is an example of how we actively manage our $5.8 billion real estate equity portfolio to generate strong returns on behalf of our policyowners," said Paul Hanson, managing director - real estate, Northwestern Mutual. "The company's real estate strategy typically focuses on long-term holds; however, the Seattle market rebounded quickly, creating an excellent opportunity for the company to realize a gain for our policyowners."

"It speaks volumes about real-estate market cycles," said Ann Chamberlin, managing director with brokerage Jones Lang LaSalle, in a Seattle Times article. "That building was purchased [by Northwestern Mutual] at the absolute bottom of the market. Now we're bouncing back and they're getting a nice return."

Northwestern Mutual originally purchased the 42-story, 872,000 square foot office building in the fall of 2009. The sale is not expected to cause disruption for tenants with long-term leases, including Russell Investments, Boeing, Nordstrom, Dendreon, JP Morgan Chase and Zillow.

For more news and information visit Blumberg Capital Partners.

Thursday, April 19, 2012

American Realty Acquires 5 Assets, Including The Quadrangle

American Realty Advisors announced this week that it had acquired five institutional-grade core real estate properties in diversified markets across the United States. The acquisitions were completed on behalf of one of American’s commingled real estate funds. American Realty Chairman and CEO, Stanley L. Iezman, said of the purchases, "The acquisition of these five assets represents another opportunity for the firm to invest in high-quality, strategically-located core assets that we believe will likely generate solid gains for our investors over the long-term." The terms of the purchases were not disclosed.

The properties include:

18401 Von Karman, a Class A 114,295 SF multi-tenant office building located in Orange County, CA.

Rancho Cucamonga Distribution Center, comprised of two Class A industrial buildings totaling 434,871 square feet located on 22.1 acres of land in the heart of Inland Empire, a prime submarket in the Southern California industrial market.

Weston Lakes Plaza, a 96,342 SF, Class A grocery-anchored shopping center located in Ft. Lauderdale, FL.

ALARA North Point, a 264-unit Class A luxury apartment complex in the suburb of the Atlanta, GA.

The Quadrangle, a Class A 194,221 square foot mixed-use office and a retail development located in the Uptown Dallas submarket.

For more news and information visit Blumberg Capital Partners.

Wednesday, April 18, 2012

Kessinger/Hunter Developing Giant Warehouse in KC

Kessinger/Hunter & Company announced this week that it would seen begin constructing the largest spec building ever constructed near the New Century Airport in Kansas City. The new 821,256 square foot warehouse dubbed "Building B" in the I-35 Logistics Park at 155th and Old 56 Highway in Olathe, Kansas, part of the Kansas City region. No price tag was attached to the Kessinger/Hunter project, but the Kansas City Star reported that the warehouse is expected to be completed in the first half of 2013.

"We are thrilled to have an 800,000-plus-square-foot warehouse coming to Olathe--built by such a quality developer and placed in such a prime location," said Olathe Mayor Michael Copeland. "It's a testament to their optimism about the economy and their confidence in Olathe and Kansas City that Kessinger/Hunter is investing so significantly in our community."

Kessinger/Hunter will exclusively market the new 800,000-sq.-ft. facility for lease. While no tenant has been lined up at this point, Dan Jensen a principal at Kessinger/Hunter, predicted the project will benefit from a sprawling intermodal rail and truck distribution facility being developed by Burlington Northern seven miles away in Edgerton.

For more news and information visit Blumberg Capital Partners.

Tuesday, April 17, 2012

BGC Finalizes Grubb & Ellis Purchase, Forms Newmark Grubb Knight Frank

BGC Partners, Inc. announced on Friday that it had closed the acquisition of Grubb & Ellis assets after receiving approval from the U.S. Bankruptcy Court for the Southern District of New York. At the same time, BGC is rapidly integrating Newmark Knight Frank, which it acquired in October 2011, with Grubb & Ellis, forming Newmark Grubb Knight Frank, its new full-service commercial real estate platform.

Michael Lehrman, Global Head of Real Estate at BGC, said, "With more than 100 offices in North America, 250 million square feet in Property and Facilities Management, and an outstanding national Appraisal business, the creation of Newmark Grubb Knight Frank is a game-changing moment in the real estate industry. Newmark Knight Frank and Grubb & Ellis each have consistently ranked among the leading companies in the real estate industry, and now these two great brands have come together as an even more impressive competitive presence in the real estate marketplace."

Barry Gosin, CEO of the combined Newmark Grubb Knight Frank, added, "Our value proposition embraces a portfolio of management services, capital markets, corporate services, investment sales, leasing, tenant and landlord representation, property and facilities management, industrial engineering, appraisal and valuation services. In short, it's a fresh and comprehensive way of identifying creative, fully integrated solutions to meet clients' complex real estate objectives by applying BGC's capital, management, and technology as we enlarge the scale of our real estate services platform and expand into new markets."

For more news and information visit Blumberg Capital Partners.

Monday, April 16, 2012

US Office Vacancy Rate 16% in Q1 2012

CBRE Econometric Advisors (CBRE-EA) released their latest analysis of the real estate sectors in America for Q1 2012, showing that the office vacancy rate remained at 16% after Q4 2011 and industrial availability dropped to 13.4%. "The most important economic news in Q1 2012 was the pick-up in hiring, but so far we have only seen strong improvement in the multi-family sector," said Jon Southard, Managing Director, CBRE-EA. "For property types with longer leases, the employment gains served mostly to fill in "shadow vacancy" -- space that was previously leased but not used. The delay between stronger employment and a pick-up in leasing demand is typical for the early stages of recovery in the office, industrial, and retail sectors."

"The job market will need to approach its pre-recession form before more rapid improvement in the office market can take hold," Mr. Southard said. "We continue to anticipate more robust hiring during the second half of 2012, which will move us closer to that goal."

This past week CBRE Group Inc. also held its quarterly press event in Houston, noting that there may not enough available office space in the city to go around according to a Houston Business Journal article. Jon Lee, a first vice president with brokerage services at CBRE, noted that, in the Houston-specific submarket, the climate has shifted in such a way that where he previously had several options to choose from, he's now finding it difficult to find space at all.

"There are bidding wars that are occurring," said Lee, referring to west Houston. "We're seeing bidding wars on Class B space. It doesn't take a rocket scientist to see that in a couple of years, we're going to have a problem."

For more news and information visit Blumberg Capital Partners.

Friday, April 13, 2012

AEW Acquires $340M Flagler Station Industrial Portfolio

AEW Capital Management, on behalf of AEW Core Property Trust, the firm's core real estate fund, has completed the purchase of Flagler's 4.2 million-square-foot Flagler Station for $340 million, or $81 a square foot, according to the Miami Herald. Flagler Station is South Florida's largest business park, located in Miami-Dade County's prolific industrial Airport West submarket and totaling 33 buildings. The complex is home to tenants including Ryder Systems, Lagasse, FedEx and Brightstar. Under the terms of the deal, Flagler, which is owned by Fortress Investment Group, will retain management and leasing duties on the property for three more years.

"Given the performance of Miami's industrial market over the last 12 months, we were certain that a Class-A portfolio with such critical mass would garner serious interest from institutional investors," said Vincent Signorello, President of Flagler.

"AEW has a long history of investing in Southeast Florida, and this latest acquisition illustrates our belief in the strength of the Miami/Medley market, which services the Port of Miami, Miami International Airport and Port Everglades," said Dan Bradley, Senior Portfolio Manager for the AEW Core Property Trust.

For more news and information visit Blumberg Capital Partners.

Thursday, April 12, 2012

Job Report Shows Soft Office Space Absorption

The latest Bureau of Labor Statistics Employment Situation report for March 2012 with numbers that will do little to increase demand for office space. From August 2011 through February 2012 the monthly gains in payroll employment averaged slightly more than 200,000, with March numbers reflecting an increase of only 120,000 jobs according to a CoStar report.

"Employers spent a great deal of time and attention reducing costs over the past few years and apparently do not yet see enough solid evidence to sharply reverse course on hiring," said Ken Goldstein, economist at The Conference Board. "This could presage more disappointing job counts later this spring."

Kevin J. Thorpe, chief economist at Cassidy Turley, told CoStar that the numbers are "far from terrible" from an economic standpoint. "The job creation figures for both January and February were revised upwards by a total of 55,000," Thorpe said. "From December to March, employers have added 858,000 jobs. That is the best 4-month period of job creation since March of 2006. Remember that the single most important factor in determining the direction of the property markets is employment. All the key metrics - net absorption, vacancy, rents, cap rates, spreads - are statistically linked to fluctuations in jobs. In reality, even the strong employment reports prior to March had little impact in generating demand for office space."

"Both consumer products and transportation saw fewer job cuts in March after experiencing heavy cuts in February. These are key indicators of the economy's health, so they will be closely monitored in the coming months for more signs of distress. The hope is that the February surge in these sectors was not indicative of a trend," said John A. Challenger, CEO of Challenger, Gray & Christmas.

For more news and information visit Blumberg Capital Partners.

Wednesday, April 11, 2012

Grubb & Ellis Economist is "Pretty Optimistic" on CRE

Robert Bach, senior vice president and chief economist at Grubb & Ellis in Indianapolis, addressed the Wichita Independent Business Association's annual meeting at the DoubleTree by Hilton Wichita Airport this week to discuss the current state and outlook of commercial real estate. "Overall, I'm pretty optimistic about commercial real estate markets," he told roughly 200 people gathered for the meeting.

The Wichita Business Journal reports that according to Bach, commercial real estate struggled during the recession, with average prices falling by 44 percent between October 2007 and October 2009. However, the market has significantly improved since then, he said, and returns for commercial real estate investors are fairly attractive in the current low-interest-rate environment.

Bach predicted that cap rates will drop this year which, along with slowly increasing rents across sectors, would have properties throwing off more income. He noted that lower prices have enticed tenants to take advantage of the opportunity to upgrade at lower prices, and that industrial space has performed well in the face of manufacturing growth and years of improved efficiencies.

For more news and information visit Blumberg Capital Partners.

Tuesday, April 10, 2012

Potential MLS Stadium Build in Manhattan

Officials from Major League Soccer (MLS) met with Hudson River Park Trust this month to discuss building a soccer stadium on Pier 40 on the West Side of Manhattan. According to people who attended the meeting, which was closed to the press, the presentation was not highly detailed, but general, and community members extensively questioned the soccer group. Mark Abbot, MLS President, fielded questions from a group of about 30 politicians, park officials and other representatives about the full scope of the proposal, from the size of the stadium to programs, services and amenities. MLS has several designs for a new stadium, which would take up roughly 9 acres of space and seat 20-25,000 fans.

"As you may know, Major League Soccer is looking at a variety of sites across the five boroughs to build a stadium and youth soccer facility," wrote David Garber, the soccer league's commissioner, to Madelyn Wils, President and CEO of the Hudson River Park Trust. "We know how important soccer use is to the communities surrounding Pier 40 as well as the issue of immediate stabilization of the pier and long-term financial support for the park's operation. We'd like to explore with you whether M.L.S. could meet the needs of the pier through developing this facility and ask the task force for consideration as a potential use for the pier."

Wils delivered a response statement saying, "We haven't seen a specific proposal from M.L.S. and therefore cannot comment on it. Our job is to balance the community's clear-cut desire to maintain open space for neighborhood use with the Trust's need to fix the infrastructure and generate enough revenue from Pier 40 toward sustaining and enhancing all five miles of Hudson River Park. We are near completion of a study that will indicate what uses can achieve that delicate balance of keeping our open space while generating necessary revenues."

For more news and information visit Blumberg Capital Partners.

Monday, April 9, 2012

Construction Begins on $100M Rockwood Exchange

A groundbreaking ceremony was held this week in Norwood near Cincinnati as developer Jeffrey R. Anderson Real Estate Inc. began construction on its Rockwood Exchange development. The project is being financed by US Bank with Schumacher Dugan overseeing the construction. According to a Business Courier article, the 12-acre project has been in the works since 2003, when Anderson bought up almost all of the properties on the three-block area needed for the Exchange. Five property owners held out, prompting five years of legal battles, which ended just as the recession began.

The $100 million mixed-use project will include 15,000 square feet of single story retail, 230,000 square feet of retail, entertainment, and office space, plus two food restaurants and a parking garage. Anderson and Brandicorp have also partnered together on a 123-key Courtyard by Marriot within the development that's expected to open Spring 2013.

"When you get first-class projects like this in your community, it's going to have a ripple effect," said Mayor Tom Williams of the project in a Cincinnati Enquirer article last October. "This shows we're starting to move."

For more news and information visit Blumberg Capital Partners.

Thursday, April 5, 2012

Comanche Business Center Sold for $7.1M

The Comanche Business Center went up for auction on March 28 with Roger Cox as the sole bidder on the 131,760-square foot complex. Roger Cox & Associates picked up the development for $7.1 million according to a New Mexico Business Weekly article. "We've been tracking this project for the last year and a half, and then things just came together and Roger ran with the opportunity. It's an excellent Class A facility, and our job now is to fill up the vacant space. Roger is always looking at opportunities," said Brian Anderson of Roger Cox & Associates.

Located at 2420 Comanche Road NE in Albuquerque, the complex was developed by G.I.D., constructed in phases and completed in 2006. REA Advisors' Tom Jenkins represented Contrarian Capital who had acquired the note on the project. G.I.D. had acquired the property at the height of the market in 2007 but the debt on the project, nearly $10 million, was more than the property's valuation and was forced to give the property back to the lender according to the article.

For more news and information visit Blumberg Capital Partners.

Wednesday, April 4, 2012

Tishman Speyer Forms New JV for Office Portfolio

Tishman Speyer Australia Limited, in its capacity as responsible entity of Tishman Speyer Office Fund (TSOF), announced that it has entered into an agreement to be acquired by a new joint venture between Tishman Speyer and a large pension fund. Tishman completed the transaction on April 3 with the new JV taking majority ownership interests in a portfolio of 16 U.S. office properties.

The joint venture holds a 100% stake in four properties - three Class A properties in Beverly Hills, California and a three-building suburban complex in Northern Virginia according to a Citybizlist New York article.

• Lakeside Complex (Loudon County, VA)
• Maple Plaza (Beverly Hills)
• 407 North Maple Dr (Beverly Hills)
• Beverly Mercedes Place (Beverly Hills)

The JV also holds a majority stake in a portfolio including the 12 properties listed below (the minority interest in this group of assets will continue to be held by an affiliate of the Government of Singapore Investment Corporation).

• 300 Park Avenue (NYC)
• CitySpire (NYC)
• Greenwich American Centre (Greenwich, CT)
• Bala Plaza (Bala Cynwyd -- suburban Philadelphia)
• Franklin Center - 227 W Monroe (Chicago)
• Franklin Center - 222 West Adams (Chicago)
• Plaza East I & II (Milwaukee)
• 520 Pike Tower (Seattle)
• One Bush Street (San Francisco)
• 595 Market Street (San Fran)
• Bayside Towers (Foster City, CA)
• 400 Castro St (Mountain View, CA)
• Lakeside Complex (Loudon County, VA)
• Maple Plaza (Beverly Hills)
• 407 North Maple Dr (Beverly Hills)
• Beverly Mercedes Place (Beverly Hills)

"This transaction marks the disposition by TSOF of its assets on terms that represent a successful outcome for all stakeholders," Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said in a joint statement. "Looking forward, we are very excited about the formation of this joint venture and we’re pleased that our partner recognizes the value of this portfolio of premium properties and has joined us in making this significant investment."

For more news and information visit Blumberg Capital Partners.

Tuesday, April 3, 2012

Qwest Plaza Building in Seattle Sold for $137M

Qwest PlazaClarion Partners acquired the Qwest Plaza building at 1600 Seventh Avenue in downtown Seattle, Washington for $137 million from CenturyLink, formerly known as Qwest Communications. The purchase was made on behalf of a separate account client of the firm in an offmarket transaction. CenturyLink was represented by Newmark Knight Frank Frederick Ross in the transaction and a new lease negotiation which has the company still occupying 260,000 square feet of the tower.

Additionally, Nordstrom is leasing more than 300,000 square feet in the building for a term of 20 years, with an option to take more space, said Nordstrom spokesman Colin Johnson. Nordstrom has been on the hunt for more downtown Seattle office space, and the Qwest Plaza building is near the Seattle retailer's headquarters and flagship building, according to a Puget Sound Business Journal article. "This new location is to accommodate our continuing growth," Nordstrom spokesman Colin Johnson said. "It's a long-term solution." Nordstrom recently said it planned to hire 400 tech workers to round out the retail company's fast-growing ecommerce division.

"We are thrilled to have been able to secure such high quality companies as Nordstrom and CenturyLink as tenants," said Stephen P. Latimer, Managing Director at Clarion Partners. "We look forward to rejuvenating the building with New York, April 3, 2012 the renovation and bringing in additional retail uses in this key location in the city."

Designed by John Graham & Company and completed in 1976, the building was originally known as the Pacific Northwest Bell Building, and has also been called 1600 Bell Plaza, and US West Communications. The 598,000-square-foot tower was reportedly 88% leased at the time of sale.

For more news and information visit Blumberg Capital Partners.

Monday, April 2, 2012

GID Sells 321 East 22nd for $31M

Benedict Realty Group (BRG) closed on the sale of 321 East 22nd Street in Gramercy Park this week as GID Investment Advisors purchased the property for $31 million. HFF marketed the property on behalf of the seller and announced the sale today.

The 117-unit, six-story multi-housing property in Manhattan was 96% leased at the time of sale. The property also includes 6,000 square feet of commercial space, currently occupied by Synergy Fitness. Under the deal, a source from the Great Neck, NY-based firm says in an e-mail that the company plans to renovate the lobby and common hallways of the 117-unit, mixed-use apartment building as part of the acquisition according to a GlobeSt.com article. Rents in the building range from $2,750 to $4,500, according to StreetEasy.com.

For more news and information visit Blumberg Capital Partners.