Sysmex Corporate Center Sold in September to Cole

An affiliate of Cole Real Estate Investments purchased Sysmex Corporate Center, a 162,739-square-foot office property in Lincolnshire, for $49.7 million, free and clear of existing debt.. HFF represented the sellers, Bridge Development Co. and Globe Corp., in the transaction. The sales price breaks down to about $307 per square foot according to a GlobeSt.com article.

Completed in 2010, the Class A facility at 577 Aptakisic Rd. in Lincolnshire, IL, is fully occupied and triple-net leased to Sysmex American Inc., for its North and South American headquarters. The company develops and sells clinical laboratory equipment. The lease is guaranteed by Sysmex Corporation, a Japan-based company that is principally engaged in the health care business and is publicly traded on the Tokyo Stock Exchange.

For more news and information visit Blumberg Capital Partners.

American Realty and McShane to Build Cherry Logistics Center

McShane Construction Co. and Irvine, Calif.-based HPA Inc. were tapped to design and build the 29-acre Cherry Logistics Center according to a Chicago Business Journal article. American Realty Advisors and McShane Development Company have formed a joint venture for the acquisition and development of a premier industrial site located in Newark, California, the heart of the Bay Area's supply-constrained East Bay industrial submarket.

American's Chairman and CEO, Stanley L. Iezman, stated, "We believe the Cherry Logistics Center, when completed, will benefit from robust demand growth over the near- and long-term as the San Francisco Bay Area is the global leader in technology and innovation. Located at the center of the metro area's 7 million people, the property provides easy access to transportation infrastructure including major freeways, bridges, three international airports, and the Port of Oakland. As the existing warehouse inventory is older and inefficient, we expect this state-of-the-art logistics facility to fill the growing needs and requirements for increasingly sophisticated local and regional distributors."

Located at 38811 Cherry Street, the plot for the Cherry Logistics Center will be redeveloped into a state-of-the-art, Class A 575,000 SF cross-dock LEED distribution facility. Cherry Logistics Center is expected to be completed in the fourth quarter of 2013.

For more news and information visit Blumberg Capital Partners.

IIT Buys Chantilly Business Center II for $17.5M

Industrial Income Trust (IIT), a non-traded real estate investment trust (REIT) that acquires and operates high-quality distribution warehouses and other industrial properties, acquired Chantilly Business Center II this week for $17.55 million. Transwestern brokered the sale of the 160,000 square foot Class A warehouse on behalf of Principal Life Insurance Company.

"This was a rare opportunity to buy a trophy asset in the Chantilly Industrial market," said Mark Glagola, Transwestern broker. "There was significant investor interest and in the end, we were very pleased with the pricing results." The fully leased warehouse at 3920 Stonecroft Boulevard in Chantilly, VA was originally constructed in 1996 and is situated on 15 acres. According to Fairfax County records, the property previously sold in April 1999 for 8,600,000, and for $1,413,418 before that in 1996.

For ore news and information visit Blumberg Capital Partners.

Investcorp Grows US Office Portfolio by Over $140M

Investcorp, a leading global provider and manager of alternative investment products, announced today that it had acquired seven high-quality office properties worth $140 million across key markets in the US. Covering over 900,000 square feet, the deals include two real estate equity acquisitions and one debt financing investment. The properties, with occupancy rates in excess of 95 percent, are leased by longstanding tenants including; the National Institute of Health in the Keystone Office Park in Raleigh, North Carolina; Oracle, in in the Duke Bridges office park complex in Frisco, Texas and; the law firm BakerHostetler in the Denver, Colorado suburb of Lakewood. Investcorp currently manages more than $11.5 billion in assets.

"Our real estate team has a proven track record of finding high-quality assets in metropolitan communities with strong diversified employment and economic growth above national levels that provide stable and attractive cash flows," said Investcorp president of Gulf business Mohammed Al Shroogi in a Gulf Daily News article.

Christopher Hoeffel, a managing director in Investcorp's Real Estate group continued, "Office properties in growth markets with strong demand generators are on the rebound, and can be purchased at better valuations than similar properties in major gateway cities. Rooted in our value-oriented investment approach, we also see significant opportunities for high-quality, performing debt investments that can be acquired or originated at attractive yields."

For more news and information visit Blumberg Capital Partners.

Tishman Speyer Sells Two Alliance Center for $146.7M

Raleigh-based Highwoods Properties, Inc. announced that it had purchased Two Alliance Center in the Buckhead submarket of Atlanta for $146.7 million. According to an Atlanta Journal-Constitution article, real estate developer Tishman Speyer sold the iconic Buckhead office tower to Highwoods, which plans to spend about $800,000 in renovations to improve the building.

Ed Fritsch, president and chief executive officer of Highwoods, stated, "This investment garners us one of the best Class A office buildings in the southeast, a new building with a well-diversified rent roll that we acquired at a 10% discount to replacement cost. The building has an average remaining lease term of ten years and no lease expirations until 2017, when less than 24,000 square feet is scheduled to expire."

Completed in 2009, the 29-story, 492,000 square foot office tower at 3500 Lenox Road NE was designed by Smallwood, Reynolds, Stewart, Stewart & Associates, Inc. Two Alliance Center is within walking distance to both Phipps Plaza and Lenox Square Mall, two upscale malls, as well as a number of luxury hotels, including the Ritz-Carlton and the Mandarin Oriental. The property was roughly 90% leased at the time of sale with major tenants including Novelis Inc. and Marsh & McLennan Cos.

For more news and information visit Blumberg Capital Partners.

One Channel Center Gets $170M Construction Loan

HFF announced that it had arranged a $170 million construction loan for One Channel Center in Boston, a new development by AREA Property Partners and Commonwealth Ventures in Boston's Seaport District. The HFF team led by managing director Anthony Cutone and director Porter Terry worked on behalf of AREA and Commonwealth to secure the construction loan according to a Boston Herald article.

"One Channel Center is an exciting and appropriate culmination of its investors' vision and dedication to establishing Channel Center as a vibrant commercial and residential neighborhood," said Cutone. "Combining top-notch sponsorship, a central urban location and premier tenancy, the project epitomizes successful urban development."

The property will feature an 11-story, 500,000 square foot Class A office building leased in its entirety to State Street Corporation, and an adjacent 960-space parking garage. One Channel Center will also include two new open space areas: the New Park and Iron Street Park. The New park will be approximately 72,000 square feet and will include a multi-use turf grass lawn area and an area for more passive recreational uses. Iron Street park will be approximately 9,000 square feet. The project broke ground this past summer and is slated for delivery in early 2014.

For more news and information visit Blumberg Capital Partners.

American Realty Acquires Class A Industrial Space

American Realty Advisors announced this week that it had acquired 10825 Production Avenue in Fontana, CA, part of the Inland Empire. Terms of the deal were not disclosed, but Cushman Wakefield listed the property as one of its significant lease hilights in 3Q 2007. American's Chairman and CEO, Stanley L. Iezman, stated, "Continuing innovations in large-scale supply chain management have increased demand for the highly functional space offered by 10825 Production Avenue. With less than 2% vacancy in industrial properties greater than 500,000 SF in this market, the scarcity of core-quality assets like this will likely generate strong rent growth and tenant demand during the asset's anticipated holding period and is expected to generate superior returns for our clients. This acquisition reflects our commitment to enhancing our clients' portfolios with best-in-class assets in high-performing markets across the U.S."

Built in 2006, the 753,170 square foot low-rise building was designed by GAA Architects Inc. for $30 million according to an Emporis listing. 10825 Production Avenue is home to the California Distribution Center for Lifetime Brands which has leased 100% of the property. The building is situated on 29.8 acres in the Sierra Business Park, a 200+ acre master-planned industrial complex, and offers tenants enhanced amenities, extensive landscaping, and a campus-like environment.

For more news and information visit Blumberg Capital Partners.

Bay Plaza Gets $210M Refinance from MetLife

Manhattan-based Prestige Properties & Development has refinanced Bay Plaza Community Center with a a $210 million loan from MetLife’s real estate investments division according to a CoStar report. The loan comes with a fixed sub-4 percent interest rate, an interest-only portion and a five-year term.

Bay Plaza Community Center at 546 5th Avenue in the Bronx, NY is a section of the 1.3 million-square-foot Bay Plaza shopping complex. Pathmark, Cablevision and a movie theater anchor the 500,000 square foot Bay Plaza Community Center, which offers a mix of retail and office space. Owner Prestige Properties is planning to add a 780,000 square foot mall and residential towers to the site, according to a New York Citybizlist report.

For more news and information visit Blumberg Capital Partners.

Crystal City's Tallest Building Gets Approval

The Arlington County Board voted Saturday to approve 1900 Crystal Drive, Vornado's enormous office building that will be the tallest in Crystal City, according to a Washington Business Journal article. The new building, designed by New Haven-based Pickard Chilton, is the first in Crystal City to be considered under the Crystal City Sector Plan, which was adopted in 2010.

The new building will sit on a parcel currently occupied by an empty 12 story Federal office building at 1851 S. Bell Street that will be torn down to make way for 1900 Crystal Drive. 1900 Crystal Drive will include 24 stories with 720,000 square feet of office space, a 5 story underground garage, and 32 bicycle parking spaces. The design employs a "ski jump architectural treatment" as part of its glass facade, and will be a major contributor to the upgrading of Crystal City's outdated architecture and infrastructure.

As part of the agreement with the county, the developer, Vornado, would provide curb, gutter and streetscape improvements around the perimeter of the property, according to an ARLnow.com article. The plan also involves the construction of an approximately 16,000 square foot interim park near the intersection of Crystal Drive and 18th Street South.

For more news and information visit Blumberg Capital Partners.

Ethan Conrad Properties Picks Up Plaza de Oro

Ethan Conrad Properties, Inc., a Sacramento-based a commercial real estate investment company led by Ethan Conrad, purchased Plaza de Oro in Rancho Cordova, CA from Core Commercial this month for $3.4 million. The foreclosed property has been up for sale since last October; according to a Sacramento Business Journal article, originally brokers Jon Gianulias, John DuBois and Mark Denholm, who represented Chase REO in the deal, had the center listed for $5.45 million.

Plaza de Oro consists of four buildings totaling 81,009 square feet with a mix of retail, office and/or industrial use, conveniently located off of Sunrise Boulevard and surrounded by busy commercial and residential areas. 2901-2951 Sunrise Boulevard boasts current tenants including Togo's, Aladdin Cafe, M. Shahrzad Restaurant and an Allstate agent office. Conrad plans to invest more than $100,000 into the property that is only 41% occupied. "We're getting good activity even though I've owned it only two weeks," he said Friday. He’s renewed one lease, has another lease renewal pending, and expects to sign a new lease in a few days.

For more news and information visit Blumberg Capital Partners.

Colliers International Adds 1M SF to Leasing Portfolio

Commercial brokerage Colliers International has added eight new properties to its leasing portfolio, vaulting its Dallas offerings by 1 million square feet of office space. According to a Dallas Business Journal article, Colliers International's Dallas office leasing team, led by David Quisenberry, and including Chris Lipscomb and Michael Carmichael, recently won the leasing assignment for Galleria Office Towers, a three-building, 1.4-million-square-foot property.

"This presence enables our brokers to have more submarket insight and a deeper pulse on Dallas industry trends," said David Quisenberry in a written statement. The eight buildings include:

LBJ Financial Center at 5520, 5550, and 5580 LBJ Freeway totaling 360,921 square feet
Toll Hill Office Park at 5310 and 5440 Harvest Hill totaling 239,049 square feet
A medical office building at 7515 Greenville Ave., totaling 121,440 square feet
One Hillcrest Green at 12700 Hillcrest Road totaling 105,000 square feet
An office building at 16980 North Dallas Parkway totaling 62,742 square feet
International Technology Center at 4240 International Pkwy. totaling 118,238 square feet

For more news and information visit Blumberg Capital Partners.

Kennedy Wilson Buys 3 Properties for $37.3M

International real estate investment and services firm Kennedy Wilson announced this week that it had acquired three properties in Utah, California and Idaho with its partners, including The LeFrak Organization and Kennedy Wilson Fund IV, for $37.3 million. Kennedy Wilson contributed $9.9 million of equity in the deals, with $23.1 million of debt outstanding and the balance from partner equity, and said that it plans to reposition all of the properties to capture further income potential. According to an L.A. Biz article, the company's multifamily portfolio in the U.S., Ireland and Japan totals 14,274 units.

"These retail investments provide the company with a predictable and steady income stream through credit tenants such as Burlington Coat Factory, In-N-Out Burger, Outback Steakhouse and Staples," John Prabhu, president of KW Commercial Investment Group, said in a statement.

The properties include: a 209,329 square foot multi-tenant retail center in Orem, Utah; 15,118 square feet of retail and office space in Malibu, California; and a 114,404 square foot retail center in Boise, Idaho.

For more news and information visit Blumberg Capital Partners.

Frank Gehry's New Facebook HQ Design

In a new Facebook post on Friday, Everett Katigbak, Facebook's Environmental Design Manager, revealed the plans for Facebook's new campus expansion, designed by the world-renowned architect, Frank Gehry. The Los Angeles Times reports that plans for the Silicon Valley site, which will be submitted Monday, will include a 420,000-square-foot, single-story warehouse topped with a garden that will span the entire roof. An excerpt from the post:

At every step of planning the new building, Frank has taken into account our engineering culture. It will be a large, one room building that somewhat resembles a warehouse. Just like we do now, everyone will sit out in the open with desks that can be quickly shuffled around as teams form and break apart around projects. There will be cafes and lots of micro-kitchens with snacks so that you never have to go hungry. And we'll fill the building with break-away spaces with couches and whiteboards to make getting away from your desk easy.

We've paid just as much attention to the outside as well. The exterior takes into account the local architecture so that it fits in well with its surroundings. We're planting a ton of trees on the grounds and more on the rooftop garden that spans the entire building. The raw, unfinished look of our buildings means we can construct them quickly and with a big emphasis on being eco-friendly. Of course, we'll maintain our current campus and use an underground tunnel to connect the two.

We plan to break ground on the new building in early 2013 and hope for a quick construction. When it's completed, we hope it will provide a paradise workspace for the 2,800 engineers who will one day fill it.

In May, Facebook was granted permission by city officials to hire up to 6,600 workers on the California campus according to PC Magazine. Facebook will pay the city of Menlo Park an average of $850,000 a year for 10 years, to cover the impact of additional workers on city infrastructure.

For more news and information visit Blumberg Capital Partners.

Apple Picks Up More Than 1 Million SF in Sunnyvale

Technology giant Apple has made moves in Sunnyvale, CA, picking up more than 1 million square feet of new office space that could accommodate as many as 5,000 employees. As the company continues to outgrow its space in Cupertino, Apple continues to lease new space and has, so far, agreed to lease a total of 1.2 million square feet in Sunnyvale according to city records and real estate brokers involved in the deals.

"It's a remarkable growth spurt for Apple," said Jim Beeger, senior vice president with Colliers International, a commercial realty brokerage, in a San Jose Mercury News article. "This is a 30-year-old company undergoing the type of explosive expansion that you see with a three-year-old startup."

"Cupertino is pretty much filled up because of Apple's growth, much like Mountain View is pretty much filled up because of Google," said Phil Mahoney, an executive vice president with realty firm Cornish & Carey Newmark Knight Frank. "Both Google and Apple need more room. Both of them decided to find space in Sunnyvale."

"As I look at my iPad and check my iPhone, it really strikes me how much Apple has been able to achieve and how they have remade themselves," said Reed Payne, an executive vice president with Kidder Mathews, a commercial realty firm. "The future is not only bright for Apple, but the future bodes well for all of Silicon Valley."

For more news and information visit Blumberg Capital Partners.

Avidan Sells NJ Industrial and Office Portfolio

Cohen Asset Management, Inc., a private commercial and industrial real estate investment firm, announced that an affiliate had acquired a nine building portfolio of industrial and office properties in northern New Jersey from Avidan Management. According to a CoStar report, the pricepoint of the deal was not disclosed, but that the HFF investment sales team represented Avidan in the transaction.

The portfolio, comprised of approximately 2.6 million square feet of warehouse and office space primarily in port-centric locations, represents one of the largest acquisitions of industrial properties in Northern New Jersey in many years. The purchase is part of a series of transactions that Cohen has completed on both the east and west coast over the past year and is reflective of Cohen's ability to source transactions through its longstanding operator model.

"As previously outlined, one of our top priorities is to grow our East Coast presence," commented Bradley Cohen, Cohen's President and CEO. This transaction highlights Cohen Asset Management's commitment to our target markets and our ability to establish a concentrated ownership position by assembling a critical mass of high quality, functional industrial real estate. Cohen went on to continue saying, "With this acquisition, we are making significant progress towards achieving our strategic objectives."

For more news and information visit Blumberg Capital Partners.

American Realty Capital Trust Sold to Realty Income for $3B

Realty Income announced an agreement this week to acquire all of the outstanding shares of American Realty Capital Trust in a transaction valued at approximately $3.0 billion. The Board of Directors of both companies have unanimously approved the agreement and the transaction is expected to close during the fourth quarter of 2012 or early in the first quarter of 2013. The acquisition will be financed by Realty Income directly issuing $1.9 billion of its common stock to American Realty Capital Trust shareholders, the assumption of roughly $526 million in debt, and the repayment of approximately $574 million in outstanding debt and expenses.

Approximately 75% of the rental revenue Realty Income will add in this transaction will be generated by investment-grade tenants including: FedEx, Walgreens, CVS, the GSA, Dollar General, Express Scripts, PNC Bank, and Whirlpool, reported CoStar. The addition of these tenants to Realty lncome's existing portfolio increases the company's revenue generated by investment-grade tenants from approximately 19% to 34% of pro forma total revenue.

Tom Lewis, CEO of Realty Income, said, "This acquisition comprehensively advances Realty Income's strategic objectives of increasing its revenue generated by investment grade tenants and further diversifying its portfolio outside of the retail industry." Nicholas Schorsch, Chairman of American Realty Capital Trust, said, "We are very pleased to announce this transaction between ARCT and Realty Income. Realty Income has an extraordinary record of continuous dividend payments and dividend growth together with very strong overall performance."

According to a Washington Post article, the buyout will give Realty Income 501 additional properties, giving it more than 3,250 properties owned under long-term leases to major commercial and retail tenants. Realty Income says that none of New York-based American Realty’s employees will remain with it after the transaction is complete.

For more news and information visit Blumberg Capital Partners.

Seaton Benkowski & Partners Sells Carroll Square Leasehold for $121M

Holliday Fenoglio Fowler (HFF) announced this week that it had closed the leasehold sale of Carroll Square in DC on behalf of the seller, Seaton Benkowski & Partners, for $121.4 million. GLL Partners purchased the 178,000 square foot office property and assumed an existing loan. Akridge oversees leasing and management of Carroll Square, where the tenant roster includes law firms Seyfarth Shaw, Holland & Hart, and Fitzpatrick, Cella, Harper & Scinto.

Jones Lang LaSalle research director Scott Homa told GlobeSt,com that at $121.4 million, the building's trade shows that prices are not softening here even though sales volume has fallen year-over-year. "Pricing for core, class A buildings averaged $645 per square foot during the first half of 2012, and cap rates remained well under 6% for long-term stabilized assets. Overall, with the federal election looming and little progress being made in establishing a clear fiscal policy, we expect investors to adopt a ‘wait-and-see' posture heading into November."

Carroll Square is a 10-story building at 975 F St., NW and was recognized as the "Best Urban Office Building" of the year by the Maryland/DC Chapter of the National Association of Industrial and Office Properties (NAIOP) upon its completion. Designed by SmithGroup and developed by Akridge in 2007, the trophy-class property incorporates four renovated late 19th century commercial townhouses and the facades of two others, as well as a defining architectural cupola and a distinguished new structure accented with brick and stone.

For more news and information visit Blumberg Capital Partners.

Amazon's Global HQ for Sale

Microsoft co-founder Paul Allen's Vulcan Real Estate announced last Thursday that it would be putting Amazon.com Inc.'s 11-building Seattle headquarters on the market with plans to use the proceeds for other real estate projects in the area. "We have been deeply involved in the redevelopment and revitalization of South Lake Union for over a decade, and the sale of the Amazon campus will allow us to continue to invest in the neighborhood and the community," Ada M. Healey, vice president of Vulcan's real estate unit, said in the statement.

"Vulcan's portfolio is heavily weighted in office and we need to rebalance that distribution," Lori Mason Curran, Investment Strategy Director of Real Estate at Vulcan said in a statement. "With the current low interest rate environment and high values for core assets this feels like a good time to capitalize on market conditions."

Built in the former warehouse district north of downtown, the 1.8 million square foot campus is being listed for sale through CBRE Group Inc. While no asking price was listed, industry experts expect the property to sell for more than $1 billion. According to a Reuters report, Amazon, which only recently moved into its new headquarters, declined comment on whether it would be a bidder to buy the 11 buildings on 1.8 million square feet of land which make up its headquarters. Amazon already has plans to build new offices nearby to house its growing staff.

"If they're going to take the cash and use it to do more development in South Lake Union, I see it only as a good thing," commented Jerry Dinndorf, president of the South Lake Union Community Council.

"The Amazon corporate headquarters buildings represent exactly what core capital wants today: new product featuring durable, credit income streams in great CBD locations. Markets like South Lake Union in Seattle, South of Market in San Francisco and Silicon Beach in Santa Monica, command premium rents because of huge tenant demand," said Kevin Shannon of CBRE in a CoStar Group report. "Technology and corporate tenants love state of the art campuses in amenity rich, transit oriented environments like Amazon's because these locations allow them to attract and retain the best talent in the workforce."

For more news and information visit Blumberg Capital Partners.