Westcore Secures $70M in Financing for California Properties

Westcore Properties, a San Diego-based owner and operator of institutional industrial and office properties, announced that it had secured $70 million in permanent financing for four recently purchased properties in California. According to a San Diego Business Journal article, terms of the deal were not disclosed, though a company statement said financing packages were arranged through Bank of America, Wells Fargo and U.S. Bank.

According to Don Ankeny, Westcore Properties' president and CEO, "The acquisition and immediate financing of these projects totaling almost 1 million square feet is a significant accomplishment for our company which is aggressively working to double in size over the next 12 months."

The financed projects, totaling nearly 1 million square feet, included Central Plaza, a three-building, 150,000-square-foot industrial project in Union City that was acquired for $13 million; Westlake Center, a 45,000-square-foot office building in Encinitas purchased for $6.8 million; Salt Lake Industrial Park, a 132,000-square-foot project in City of Industry purchased by Westcore in a short sale for $9.5 million; and Kato Industrial Park, a 625,000-square-foot, four-building industrial park in Fremont that was just purchased for $45.6 million.

For more news and information visit Blumberg Capital Partners.

New JV for DC Development as First Potomac Sells Share

Akridge, a DC-based full service real estate firm, announced this week that it had entered into a new joint venture with Mitsui Fudosan America as First Potomac Realty Trust sold its ownership share in a development project in the central business district of Washington, DC for $43.7 million. Mitsui Fudosan America acquired the First Potomac Realty Trust ownership interest in the project on 1200 17th Street, where a building (formerly occupied by the National Restaurant Association) is currently under demolition and will be redeveloped as a 168,000 square foot trophy-class building.

According to a Washington Business Journal article, First Potomac originally bought its 95% stake in the project in a joint venture with Akridge in late 2011 for $37.6 million. Akridge will continue to own its share of the project and will remain the developer.

"This sale allows us to achieve our previously stated goals of monetizing an investment after we have added value, significantly strengthening our balance sheet, and decreasing risk in our portfolio," said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. "While we know 1200 17th Street will be a very successful project, we could not pass up the opportunity to sell our position at a significant profit. We wish our friends at Akridge great success as they move forward with 1200 17th Street and we hope to have the opportunity to team up with them again in the future."

For more news and information visit Blumberg Capital Partners.

Internet Firms Expand Silicon Alley

A New York Times article titled Square Feet: Tech Firms in Manhattan Trade Trendy Lofts for Midtown Bargains takes a look at the current growth in popularity for business space in Manhattan's Silicon Alley. "Silicon Valley is on their fifth generation," said Kevin Ryan, chief executive of the Gilt Groupe. "We're on our second or third generation of New York entrepreneurs, combined with a bigger and better infrastructure to support it, so the scene is just mushrooming."

According to an article from The Economic Times, companies like 10gen and Firespotter Labs contribute to New York's growing role as an Internet hub, particularly for the new generation of online media and retail companies. Last year, 256 New York tech startups raised $2.2 billion in investment, up from 149 and $1.3 billion five years ago, according to the National Venture Capital Association.

An excerpt from the NYT article:

More than 100 Internet-based marketing firms, retailers and social networking companies are based in the area between the Flatiron Building and Central Park, out of about 1,400 similar businesses across the city, according to data compiled by NYC Digital, an initiative started last year by Mayor Michael R. Bloomberg to promote the city's technology industry.

"The boundaries of Silicon Alley are definitely pressing outward," said Jonathan Serko, a broker with Cushman and Wakefield who has worked to bring tech companies to Midtown. He added, "some of the companies are moving out of necessity."

In pockets of downtown Manhattan, commercial rents have spiked in recent years as increasingly fashionable neighborhoods like Chelsea, Greenwich Village and the financial district have welcomed a surge of new businesses. Residential conversions have also gobbled up the types of industrial buildings that tech companies once favored.

For more news and information visit Blumberg Capital Partners.

Finesa Closes $70M for Investment Fund

Finesa Real Estate Group announced this week that it had raised $70 million for their Diversified International Partners fund, which will use foreign cash to invest in commercial real estate in the top U.S. markets, Citybizlist.com reports. This is the first closing of a $200 million equity fund, Diversified International Partners (DIP). DIP is a real estate private equity fund developed for Latin American institutional and qualified high net worth investors.

Finesa retained Transwestern Investment Management (TIM) as the exclusive investment manager. Together, Finesa and Transwestern developed a diversified strategy designed to mitigate downside risk while achieving institutional investor returns. The fund will continue raising capital through the second quarter of 2013 and is anticipated to be fully subscribed.

According to Laurie Dotter, President of Transwestern, "Our partnership with Finesa has helped us reach our goal of becoming an international investment management platform." Diversified International Partners marks the first time that Colombian Pension Funds have invested in real estate in the U.S. through this type of discretionary format. "We are excited about this historic milestone for TIM, Finesa, and our institutional investors. Our goal is to continue broadening the reach of TIM's best in class expertise."

For more news and information visit Blumberg Capital Partners.

KPMG CRE Outlook Survey Results

KPMG LLP, the audit, tax and advisory firm, completed the 2012 KPMG Commercial Real Estate Outlook Survey with reflections and responses of nearly 80 senior executives in the commercial real estate industry. The survey found that CRE executives remain focused on efficiency and cost cutting as the commercial real estate market continues to rebound in a lackluster economy.

"Commercial real estate executives are seeing their margins and profits being squeezed, so increasing operational efficiency and reducing costs is a key focus," said Greg Williams, national leader of KPMG LLP's Building, Construction and Real Estate practice. "At the same time, there is tempered optimism as industry fundamentals continue to slowly improve and bright spots emerge... Commercial real estate execs are finding it challenging to source sufficient product that will produce the necessary yields to meet investor expectations. The gap between ask and bid price can still be significant in certain markets," said Williams. "It's also taking a lot longer to raise capital needed to grow their portfolios, while increased regulatory reporting requirements are driving up costs."

58% of the respondents expect the U.S. economy to improve next year, but they remain guarded about an economic recovery. In fact, 63% do not expect the economy to recover as a whole until 2014 or later - as opposed to 77% who, in the 2011 KPMG survey, predicted the recovery would be complete by the end of 2013.

For more news and information visit Blumberg Capital Partners.

Townsend Farms Buys Warehouse in Vineland

Vineland Development Corporation sold a 215,508 sq. ft. manufacturing and cross-dock warehouse building in Vineland, New Jersey this month for $2,100,000 according to a National Real Estate Investor article. In a deal brokered by Binswanger, Townsend Farms bought the property at 3501 South East Boulevard. Townsend Farms, which grows, processes, and delivers premium berries, plans to use the facility for processing and freezing fresh berries from local growers.

The building was originally constructed for the Rennoc Corporation as a garment manufacturing facility. A multi-million dollar renovation of the property will include raising the ceiling height in a portion of the building, adding freezer space as well as processing equipment. General Mills leases a portion of the building and will remain as a tenant.

For more news and information visit Blumberg Capital Partners.

Tucson Spectrum Sold for $125M

The Tucson Spectrum Shopping Center traded hands this month as DDR Corp., a publicly-traded investment trust, purchased the property from an affiliate of Barclay Group along with Creswin Properties Inc., both private commercial real estate companies. DDR Corp. purchased the 709,811 SF and seven developable finished retail pads of the Phase II portion of the regional retail center located at Irvington Road and Interstate 19 for $125,375,000.

"This transaction is the culmination of over a decade of meticulous planning and development, said Scott T. Archer, Managing Director of Barclay Group. "Our partners, relationships, and company's dedication were essential in creating this institutional quality asset. With the stabilization of the center and the improvement in market conditions, it proved to be an opportune time to sell. With DDR's reputation and proven track record, they provide a natural fit to ensure the future success of Tucson Spectrum."

According to a Phoenix Business Journal article, the project is roughly 94% leased and also includes seven development-ready plats, one of which is already under construction for an Old Navy location. DDR is already in discussions with other retailers for the remaining sites, said Jan Fincham, a principal with Lee & Associates who helped broker the deal along with Patrick Dempsey.

For more news and information visit Blumberg Capital Partners.

JV Picks Up Houston Pavilions for $100M

Houston Pavilions, a mixed-use three-block project in the heart of downtown Houston, traded hands this month as Entertainment Development Group sold the property for $100 million, or $175 per square foot, according to a CoStar report. Houston's Midway Cos. and Los Angeles-based Canyon-Johnson Urban Funds, a national real estate fund affiliated with Earvin "Magic" Johnson, have taken ownership of the complex and said that they will invest additional funds to revitalize the property to accelerate leasing. The JV acquired the project from receiver Transwestern, which was assigned to manage, lease and market the property in 2011.

In a joint statement, Bobby Turner, Canyon-Johnson's Managing Partner, and Earvin "Magic" Johnson said, "We are both proud to be investing in Houston again, and to be partnering with Midway to maximize the potential of such an incredible mixed-use asset. The support we have received from the City of Houston's leadership makes projects like this a possibility."

"The Houston Pavilions is a well-positioned property that we believe has incredible potential. The project is strategically located in Downtown Houston and fits our investment criteria for high-quality, remarkable assets. We are very excited to be partnered with Canyon-Johnson to acquire the property," said Midway COO Jonathan Brinsden.

Built in 2008, the Class-A 556,000 square foot project at 1201 Fannin includes the fully occupied, 11-story regional headquarters for NRG Energy, one of the largest power generating companies in the country, along with restaurants, retailers and venues including the House of Blues, Forever XXI, McCormick & Schmick's and Lucky Strike.

For more news and information visit Blumberg Capital Partners.

Sabal Financial Buys $96M Portfolio from The Bank of the West

Sabal Financial Group, L.P., a diversified financial services company headquartered in Newport Beach, CA, announced this week that it had acquired a $96 million loan portfolio from The Bank of the West. Sabal, specializing in the acquisition of real estate loans with a focus on commercial real estate, has been acquiring portfolios since 2009, amassing nearly $4 billion in assets under management.

"The Bank of the West portfolio was appealing to us because of its land holdings. There are barriers to entry and a general lack of development space, resulting in a constrained land supply, which will have higher values as the real estate market continues to recover," said Pat Jackson, CEO of Sabal Financial Group. "We have the luxury of being patient in working out these assets."

Terms of the deal were not disclosed, but Sabal said that the portfolio is a combination of non-performing and performing loans and is secured by commercial real estate and land in California, Colorado, Arizona, Oklahoma, and Iowa.

For more news and information visit Blumberg Capital Partners.

HCP Acquires Scottsdale MOBs for $81M

HCP Inc., a publicly traded real estate investment trust (REIT) based in Long Beach, CA, have successfully acquired eight on-campus medical office buildings (MOBs) for $81 million from Scottsdale Healthcare. Terms of the deal have not yet been disclosed. Keith Jones, a spokesman for Scottsdale Healthcare, said the transaction was part of the nonprofit health system's ongoing strategy in a Phoenix Business Journal article. "Most hospitals do not own their own medical office buildings, and real estate management is not part of our core business," he said. The land is still owned by Scottsdale Healthcare and is being leased to HCP.

The eight on-campus MOBs located in Scottsdale, Arizona comprise approximately 398,000 rentable sq. ft. and have a current occupancy of 89% according to HCP's Q2 earnings call information. The properties are spread over three Scottsdale campuses: Scottsdale Healthcare Osborn Medical Center, 7400 E. Osborn Road; Scottsdale Healthcare Shea Medical Center, 9003 E. Shea Blvd., and Scottsdale Healthcare Thompson Peak Hospital, 7400 E. Thompson Peak Parkway.

For more news and information visit Blumberg Capital Partners.

Hartz Mountain Lands $48M in Financing

Hartz Mountain Industries Inc., privately held real estate owners / developers headquartered in Secaucus, N.J., secured $48 million in credit tenant lease financing for an industrial warehouse/bus maintenance complex in Newark this month. According to a GlobeSt.com article, a foreign CTL investor provided a fixed-rate, 24-year loan at 4.32 % interest for the the property at 601 Doremus, which is leased to New Jersey Transit Corporation through 2036.

"This was an extremely complex financing assignment for a very unique property that involved a modified industrial condominium," said Joe Garibaldi, managing director of Jones Lang LaSalle's Capital Markets team, which brokered the deal on behalf of Hartz. "The loan provides financing for a critical facility for New Jersey Transit, in which the entire city's buses are maintained."

For more news and information visit Blumberg Capital Partners.

ARCP Acquires French's Mustard Headquarters for $10M

American Realty Capital Properties, Inc. (ARCP), an externally managed real estate company, announced this month that it had completed the acquisition of the French's Mustard headquarters located in Chester, New Jersey. Terms of the deal were not disclosed, but New York Citybizlist reported that the seller was Prospect Square LLC.

The 32,000 square foot property is 100% leased to French's Mustard's parent company, Reckitt Benckiser Group, a British multinational consumer goods company headquartered in Slough, United Kingdom. ARCP disclosed that the original lease has a 10-year term with 5.7 years currently remaining.

"We are pleased to add this property to our portfolio, and will continue to seek accretive acquisitions such as this one which contributes yet another name brand to our stable of high quality tenants," said Nicholas S. Schorsch, Chairman and Chief Executive Officer of ARCP. "This purchase will further enhance our portfolio's tenant mix and geographic diversification. We continue to take advantage of plentiful buying opportunities in the market consistent with our guidance model and our investment strategy."

For more news and information visit Blumberg Capital Partners.

Cushman & Wakefield To Buy Cousins Properties Services Group Division

Cousins Properties, a fully integrated equity real estate investment trust (REIT), announced this week that it has reached an agreement to sell its Third Party Client Services Business, known as Client Services Group (CSG), to Cushman & Wakefield for an undisclosed sum. The deal is expected to formally close by year-end, according to a D Magazine report. Under the terms of the agreement, up to 128 professionals will transition from Cousins to Cushman & Wakefield; Cousins Properties will continue to own and operate its fee business that is not associated with the Client Services Group. According to a Sacramento Bee article, CSG's Property Management, Landlord Leasing and Management services will be integrated into Cushman & Wakefield's Investor Services division, which is part of the firm's Corporate Occupier and Investor Services (CIS) group and is a main priority of the firm's growth plan.

"We are very excited about this transaction - we really consider it a partnership - and view this as a win-win for Cousins, C&W, and most importantly, our clients," said Larry Gellerstedt, President and CEO of Cousins Properties. "This not only ensures that our clients will be part of a broad global platform and can leverage all of the benefits that come with it, but is also consistent with Cousins' strategic goal of simplification and a heightened focus on our core business."

Glenn Rufrano, President and CEO of Cushman & Wakefield said, "This move marks a key milestone as we begin the next phase of our strategic growth plan. Integrating such a quality group into our platform enables C&W to continue to balance our service mix across our global platform and provide consistent quality service to our clients."

For more news and information visit Blumberg Capital Partners.

Kennedy Wilson and Deutsche Bank Acquire $449M Irish Loan Portfolio

Kennedy Wilson, an international real estate investment and services company headquartered in Beverly Hills, in partnership with the European Commercial Real Estate Group of Deutsche Bank AG, acquired a loan portfolio with an unpaid principal balance of €361 million ($449 million). The partnership grabbed the portfolio of Irish property loans from Lloyds Banking Group at a huge discount, with Independent.ie reporting that the buyers are understood to have paid less than 20c in the euro for the loans. Gibson Dunn's London office as well as Dublin-based William Fry provided legal advice on the acquisition.

"We are seeing signs of recovery in the Irish property market," said Mary Ricks, president and CEO of Kennedy Wilson Europe. "Investor confidence is returning and there is a good macro-economic recovery story in Ireland that is starting to play out."

While both Deutsche and Kennedy Wilson declined to comment further to GlobeSt.com about the deal, Kennedy Wilson said in a statement that the properties are predominately commercial real estate assets across a mixture of asset classes, with the majority located in Dublin.

For more news and information visit Blumberg Capital Partners.

Sabal Financial Buys $121.5M Loan Portfolio

Sabal Financial Group, LP, a CA-based financial services management firm, announced this week that it had acquired a $121.5 million portfolio from a southeast-based regional bank. The portfolio of 44 performing and non-performing commercial real estate loans incorporate commercial real estate properties and land in Texas, Florida, North Carolina, South Carolina, Georgia, Virginia and Missouri. Sabal will provide loan servicing and asset management for the portfolio.

"There continues to be a significant need for banks to clear their balance sheets of problematic loans," said Pat Jackson, CEO of Sabal Financial Group. "This particular acquisition strengthens our already robust presence in the southeast region."

In June of this year, Sabal established a builder lending program to fill the void left by community banks exiting for-sale residential financing. Sabal Financial Group offers non-recourse acquisition and development (A&D) and construction loans for homebuilders in California, Seattle, and Portland.

For more news and information visit Blumberg Capital Partners.

Occidental Breaks Ground on First New Wichita Office Space in 4 Years

Occidental Management, a Wichita-based real estate development firm, broke ground this month on The Offices at Cranbrook, the first new Class A office space in northeast Wichita in four years according to a Wichita Business Journal article. "There are business owners out there who want to expand, want to grow," said Occidental president Chad Stafford at a groundbreaking ceremony for the Offices at Cranbrook, at East 21st Street and Cranbrook, east of Webb Road. Occidental also said during the ceremony that more than 50% of the first phase of the project pre-leased.

The Offices at Cranbrook will total over 60,000 square feet of space in four buildings once complete, with offices that include patios that look out over a lake. This site is also in close proximity to K-96 Expressway offering easy access from anywhere in Wichita. The roughly 24,000-square-foot first phase should be ready for move-in by December or January, according to Stafford. The contractor for the offices is Sauerwein Construction Co. Inc. The architect is Spangenberg Phillips Tice Architecture. Rose Hill Bank is the lead lender with Union State Bank also participating in the loan.

For more news and information visit Blumberg Capital Partners.

BH Properties Sells Sunset Corridor Office Buildings for $6.9M

Los Angeles-based BH Properties, a real estate investment firm, has sold two Hillsboro, Oregon office and technology buildings known as Technology Center One and Two, totaling 95,000 square feet, for $6.9 million. According to an OregonLive.com article, BH Properties purchased the buildings in 2007 for $8 million. Hawaii-based Watumull Properties Corp. bought the properties, though terms of the deal were not disclosed. Keith Young, senior vice president at Kidder Mathews, represented both the buyer and the seller in the transaction.

Near the Intel Corp. campus, Tech Center One and Two are located at 7431 & 7451 NW Evergreen in Hillsboro. The property, constructed in 1985 with an addition in 1993, is occupied by a single tenant, Bank of America. "This is an impeccably constructed and maintained property, positioned in an economically diverse community, in proximity to a major metropolitan market, meeting Watumull's criteria for investment-grade properties," said Cliff Finnell of Kidder Mathews. "This building is highly desired by a wide variety of tenants, and will only increase in value over the next few years."

For more news and information visit Blumberg Capital Partners.

Harbor Group Acquires Nashville Portfolio for $130.5M

Harbor Group International (HGI) announced this week that it had acquired a four-property multifamily portfolio in Nashville, TN for $130.5 million. According to the Nashville Business Journal, affiliates of Norfolk, Va.-based Harbor Group International purchased the four apartment communities from a Lehman Brothers subsidiary in a deal brokered for the seller by Jones Lang LaSalle. The portfolio includes:

Cherry Creek, 627 units
Arbors of Brentwood, 346 units
Cambridge at Hickory Hollow, 360 units
Preakness, 260 units

"The acquisition of the Portfolio continues HGI's proven strategy of acquiring well-located apartment portfolios with value add and operational upside in improving markets," said T. Richard Litton, Jr., President of HGI. "All four properties have occupancy levels above 90% and are poised to realize increased revenues as we implement our capital program and the Nashville market continues to improve," he further commented.

For more news and information visit Blumberg Capital Partners.

Merrifield Medical Office Building Sold for $43M

3023 Hamaker Court in Merrifield, VA traded hands this month as Grosvenor Americas acquired the property for $43 million. The Long Cos., which developed the building in 2009, sold the property to Grosvenor; terms were not disclosed, but the building was being marketed by CBRE for sale. Anchored by Children's National Medical Center, the building was 75% leased at the time of sale.

According to a Virginia Business article, the property includes a three-story parking structure and adjacent land that could be developed into a second 120,000-square-foot building. "This is an excellent acquisition for Grosvenor Americas due to the building's exceptional quality and access, including substantial parking, as well as its prestigious tenants and proximity to INOVA Fairfax," Scott Brody, vice president, investments and general manager of Grosvenor Americas' Washington, D.C., office, said in a statement.

For more news and information visit Blumberg Capital Partners.

Construction Dipped in Arlington Q2

A new article from the Washington Business Journal examines the slowdown in construction activity in Arlington, VA during the second quarter of 2012. Even though there is over 4 million square feet of office space planned and approved by the county, none of the projects are yet under construction, making the second quarter the first quarter in the past decade without any new commercial construction started. An excerpt from the article:

But Arlington doesn't consider a project as "started" until it's above ground, so work at The Penzance Cos.' office building in Clarendon or Virginia Square Towers, both of which were in the dig or demolition phase during the second quarter, wasn't counted.

Robert Ruiz, who leads Arlington's urban planning research team, said the slow quarter was "definitely an anomaly," though it may be the result of several factors: the recession, the lag between county approval and construction, or a delay-spurred rethinking of projects.

Projects under construction during the second quarter will eventually total 962,282 square feet of office space, 147,660 square feet of retail, 1,404 residential units, 183 hotel rooms and 929,828 square feet of "other" space (public facilities, school, health care, etc). Much of the work now underway is found in Rosslyn, at Monday Properties' 1812 N. Moore St., The JBG Cos.' Sedona and Slate residential project and Abdo Development LLC's Gaslight Square.

For more news and information visit Blumberg Capital Partners.

Fort Worth Buildings Sold, To Be Repurposed As Offices

The former Packard Motor Co. dealership in Fort Worth, Texas along with another building used by Fort Worth Bolt & Tool, were sold this month to two separate entities, both of which plan to renovate the buildings for offices. Moore Acquisition Partners in Southlake bought the Packard building at 1204 W. Seventh Street from Texas Land and Investment for an undisclosed sum. A partnership of TLC Urban and Fort Worth's Kostohryz family bought the Fort Worth Bolt & Tool property at 2800 Bledsoe St. Three red brick buildings total about 25,000 square feet and will be renovated into modern office space, said Tony Landrum, a TLC Urban principal, according to a Dallas Business Journal article.

Moore Acquisition is a new real estate investment company and principal and managing partner Ryan Moore, who has a history in the oil and gas business, said of the deal that "we've been looking for some real estate in downtown Fort Worth. The building was very appealing." Moore is working with Joe Conk, of Conk Architecture, and Todd Davenport with HGC Commercial to restore the exterior to its original appearance and transform the interior into high-end loft-style offices.

For more news and information visit Blumberg Capital Partners.

DEKA Sells The Westory in DC for $159M

DEKA Immobilien Investment GmbH, a German real estate asset manager, announced that it had sold The Westory for $159.36 million to New York Life Insurance Co. According to a CoStar report, Savills LLC advised the open-ended property fund managed by Deka Immobilien of Germany in the sale.

The 12-floor, 270,158 square foot property is managed and leased by Cassidy Turley. The Westory became DC’s first multi-tenant office building to receive LEED® for Existing Buildings in May of this year. On the corner of 14th and F Streets, The Westory was built in 1990 and designed by Shalom Baranes Associates.

For more news and information visit Blumberg Capital Partners.