Liberty Property Trust Sells Portfolio for $368M

Liberty Property Trust, a Malvern, PA-based real estate investment trust, announced today that it had sold of 49 properties in three states for a total of $367.7 million. These transactions are all part of a previously announced strategy to dispose of a total of 97 properties in the company's portfolio; the sale of the remaining properties are scheduled for late next month for $329.6 million.

The properties included in this disposition include 1.9 million square feet of office properties, 1.8 million square feet of flex properties and 274,000 square feet of industrial properties. Liberty Property has successfully sold its Jacksonville, FL portfolio in its entirety, a portion of the Fort Washington, PA portfolio, and flex properties located in Minnesota.

In October, Liberty Property sealed the $1.475 billion buyout of Cabot Industrial Value Fund III that enhanced its industrial platform by 23 million square feet, according to a Zack's report. The company gained 177 properties in 24 new and existing Liberty industrial markets. Simultaneously, Liberty Property is making concerted efforts to lower its exposure to the suburban office properties market.

For more news and information visit Blumberg Capital Partners.

Prologis, Norges Form $1B Joint Venture

In its second venture with Norges Bank, Prologis, Inc. announced this week that it had signed a definitive agreement to form Prologis U.S. Logistics Venture with Norges Bank Investment Management, which is the manager of the Norwegian Government Pension Fund Global. Under the agreement, Norway's government pension fund purchased a 45% stake in a 12.8 million-square-foot industrial and logistics property portfolio in the U.S. from Prologis Inc. for $450 million. The portfolio includes 66 properties throughout eight states across nine markets, with the deal price valuing the portfolio at approximately $1 billion, according to a World Property Channel report.

"Following our joint venture in Europe earlier this year, we are pleased to extend our relationship with NBIM into the U.S.," said James Green, managing director, Global Client Relations, Prologis.

"The formation of this venture is consistent with our joint long-term focus of investing in high-quality assets in key global markets," said Eugene Reilly, chief executive officer, Prologis Americas. "U.S. Logistics Venture is expected to grow in the future, including through acquiring strategic portfolios and, where appropriate, properties that complement the existing asset base."

For more news and information visit Blumberg Capital Partners.

NorthStar Invests $340M in RXR Realty

NorthStar Realty Finance, a diversified commercial real estate investment and asset management company that is organized as a REIT, has closed a strategic $340 million investment in New York's RXR Realty. According to a NorthStar press release, the investment includes a combination of corporate debt, preferred equity and common stock in RXR which provides NorthStar with an approximately 30% ownership interest in RXR. NorthStar Asset Management will be entitled to 50% of the asset management fees from any capital raised through its distribution network and will be entitled to additional asset management fees through its proportionate ownership interest in RXR.

NorthStar's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased to partner with such a high caliber, successful and well-known organization like RXR. Given RXR management's track record in both the public and private markets, its high quality real estate portfolio and its growing asset management business, they are a perfect fit for NorthStar, both in terms of further diversifying NorthStar's asset base with trophy properties in New York City, and growing NorthStar's asset management business."

RXR's Chairman and Chief Executive Officer, Scott Rechler, commented, "We are extremely excited to partner with the dynamic and high quality team at NorthStar. We believe that NorthStar's strong balance sheet, deal flow and capital raising capabilities will enable us to more effectively execute our investment strategy in the New York Metropolitan area. NorthStar is the ideal strategic partner for RXR to continue executing on our expansion plans and, in turn, we believe our growth will substantially boost NorthStar's rapidly growing asset management business."

RXR was formed in 2007 by the former management team of Reckson Associates Realty Corp. after it sold Reckson to SL Green Realty in January 2007 for $6.5 billion, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

Terreno Acquires JFK Airgate Center Buildings for $53.1M

Terreno Realty Corporation, a Maryland corporation focused on acquiring industrial real estate, announced that it has purchased four buildings and an adjacent 0.2 acre land parcel in Queens, New York for $53.1 million, or roughly $232 per square foot. While terms of the deal were not disclosed, it is known that AMB Property Corporation, which merged with Prologis in 2011, previously purchased the properties for $34.4 million.

JFK Airgate Center includes three industrial warehouses and one office building with underground parking amenities and quick access to the JFK cargo area via a ramp two blocks from the property. The properties were approximately 98.6% leased at the time of sale to 18 tenants, including some of the largest international air cargo and logistics firms. The individual properties are:

Airgate I – front-load warehouse/distribution building containing approximately 65,000 square feet with 14 dock-high and 3 grade level loading positions and parking for 56 cars at 151-02 132nd Avenue;

Airgate II - front-load warehouse/distribution building containing approximately 66,000 square feet with 12 dock-high and 3 grade level loading positions and parking for 76 cars at 150-10 132nd Avenue;

Airgate III - front-load warehouse/distribution building containing approximately 73,000 square feet with 18 dock-high and 1 grade level loading positions and parking for 138 cars at 152-02 Baisley Boulevard; and

Airgate IV – office building containing approximately 25,000 square feet and parking for 58 cars at 152-01 133rd Avenue.

For more news and information visit Blumberg Capital Partners.

Fairfax Co. Purchases Office Building to Ease School Overcrowding

Fairfax County Public Schools (FCPS) announced last Friday that it had purchased of a five-story office building on Leesburg Pike for $9.4 million to serve the overflowing population at Bailey's Elementary School, which currently operates at 33% over capacity with more than 1,300 students being educated within the building and in 19 on-site trailers. The five-story office building was purchased with funds being utilized from the 2013 school bond referendum, and will be retrofitted and converted to a vertical design school. Estimates are that it will cost another $8 million to renovate the building, according to a report from The Washington Post last month. By the 2017-18 school year, it is projected that 1,593 students will be enrolled at Bailey's and having the second building will address the projected increase in population.

"I'm pleased that we have been able to purchase the building at 6245 Leesburg Pike through negotiations with the property owners without having to resort to other legal means," said School Board Chair Ilryong Moon. "It is our goal to open a new school at this site for Bailey's students by Fall of 2014. There is sufficient space within the building to support FCPS educational specifications and the architects chosen for the project have experience in this type of building conversion. I also want to commend Mason District School Board Representative Sandy Evans for her efforts and diligence in pursuing a feasible solution to the longstanding overcrowding problem at Bailey's."

The FCPS board voted 9 to 3 earlier this month to purchase the five-story building, which will be retrofitted over the summer. The school — the first multi-story, urban-style school in the county — likely will be split by grades into the two buildings when the academic year begins next fall.

For more news and information visit Blumberg Capital Partners.

3 WTC Signs On First Business Tenant with GroupM

Developer Larry Silverstein announced this week that GroupM, the parent of WPP Group media agencies including MEC, Maxus, MediaCom and Mindshare, has signed a 20-year lease for over a half-million square feet at 3 World Trade Center, taking 516,000 square feet in nine floors of the tower’s base. Silverstein Properties signed an agreement with advertising firm GroupM Inc. to be the anchor tenant at 3 World Trade Center, helping push forward development of the third skyscraper at the lower Manhattan site, according to a Bloomberg report.

"GroupM is looking forward to becoming part of one of the most vibrant and important neighborhoods in New York City," said Kelly Clark, CEO of GroupM North America. "I want to thank and congratulate everyone who helped us reach this exciting, historic agreement - especially Governor Cuomo, Mayor Bloomberg, and all of their associates at the state and city levels."

"Our agreement with GroupM to be the first tenant for 3 World Trade Center is another in a string of huge milestones at the World Trade Center," said Larry A. Silverstein, President & CEO of Silverstein Properties Inc. "Our firm recently opened 4 World Trade Center, the first tower to be completed at the 16-acre site. In addition, 2014 will see the completion of One World Trade Center and the 9/11 Museum. I congratulate GroupM and thank our government partners at the World Trade Center for helping ensure continued momentum in Lower Manhattan."

Designed by Richard Rogers of Rogers Stirk Harbour + Partners, the tower is under construction and expected to deliver by 2017. With the GroupM lease, a total of five million square feet of office space has now been leased at the new World Trade Center. Companies that have moved or committed to space include Condé Nast, BMI, Omnicom, Moody's, WilmerHale, Fast Company and Inc. magazines.

For more news and information visit Blumberg Capital Partners.

Blumberg Grain in the News

The Nigerian Federal Ministry of Agriculture and Rural Development announced this week that it has awarded Blumberg Grain its project to expand food security and storage in Nigeria. The project calls for the turn-key installation of Blumberg Grain warehousing systems and technology, specifically the Arctic Vault and Grain Vault product lines for perishable and dry storage, respectively.

This award represents the first phase of the initial order called for in a Letter of Intent executed between Nigerian Minister of Agriculture Akin Adesina and Philip Blumberg, CEO of Blumberg Grain's parent company, Blumberg Capital Partners. The agreement also confirms Blumberg Grain's intent to build a manufacturing plant and export Hub for West Africa in Nigeria, which will serve as a production facility for Blumberg Grain's food storage warehousing systems and create over 1000 new jobs in Nigeria.

To read the full article, click here. For more news and information visit Blumberg Capital Partners.

Benchmark Picks Up East Village MU Building for $57M

Benchmark Real Estate Group, a full service real estate company focused on properties in New York City, purchased 55 Third Avenue between 10th and 11th streets in the East Village for $57 million. 200 Eleventh Street Associates, the same firm that developed the building in 1986, sold the mixed use property; terms of the deal were not disclosed. Los Angeles-based Mesa West Capital, a private portfolio lender, provided the financing, according to a Wall Street Journal report.

"We are excited to make 55 Third Avenue the first acquisition of Benchmark Western Real Estate Fund I, an $80 million investment vehicle raised to target multi-family value-add opportunities in Manhattan," said Benchmark Real Estate Group's co-founder and managing member Jordan Vogel.

"Our financing allowed Benchmark to capitalize on an opportunity to buy a well located building with tremendous potential in a very tight East Village submarket," adds Mesa West's Russell Frahm, who led the New York-based origination team. "Little has been done to the building since it was built in 1986, and the planned improvements will allow Benchmark to achieve rents in line with the high end residential market of the East Village and Union Square. Benchmark has a demonstrated track record of rebranding and repositioning multifamily properties in New York and we believe they will do the same with this asset."

The 12-story building features 55 one-bedroom rental units, and 10,500 square feet of retail space, which is currently 100% occupied by three tenants, including the lower east side location of the Smith, a popular American Brasserie with three locations throughout Manhattan. Russell Frahm, head of Mesa West's New York origination team, said that Benchmark plans to invest money from its $45 million first mortgage to renovate and upgrade the apartment units and increase the retail space by 15% to 20%.

For more news and information visit Blumberg Capital Partners.

American Realty Acquires 100 View @ Mountain View Station

TA Associates disposed of a two-story office building in Downtown Mountain View, one of Silicon Valley's top submarkets, roughly 18 months after purchasing it as American Realty Advisors acquired the property this month. While the terms of the deal and pricing were not disclosed by either company, two separate sources said the property traded "in the mid-$700s," which would peg the sale at around $34 million, according to a Silicon Valley Business Journal article.

American's EVP/Executive Managing Director, Kirk Helgeson, stated, "As the economy continues to recover and exhibit signs of increasing stability, we are focusing on high-quality assets in innovation hub markets with strong demand from globally-competitive industries. As dynamic and high performing technology markets like Silicon Valley continue to grow in occupancy and rents, the acquisition of 100 View @ Mountain View Station represents the opportunity to acquire a quality asset in an outstanding location and create value for our clients over the long term."

The 45,000 square foot office building with direct access to the Mountain View Caltrain Station was built in 1985. Located approximately 12 miles northwest of San Jose and 37 miles southeast of San Francisco, the Property is in close proximity to the intersection of Highway 85 and Highway 237 in the South Peninsula office sub-market. The building is fully leased to multiple technology tenants.

For more news and information visit Blumberg Capital Partners.

Epic Enters DC Market with $52.7M Office Building

Clarion Partners disposed of a DC area property this week that marks the latest foreign investor movement in DC's commercial real estate market as Epic LLC, the U.S. affiliate of a London-based firm headed by Tom and Steven Elghanayan, cousins of Rockrose CEO Henry Elghanayan, purchased 919 18th Street for $52.75 million, or about $498 per square foot, free and clear of existing debt. HFF represented Clarion Partners in this transaction and procured the buyer. Epic paid about $13 million more for the building than Clarion did back in 2005, according to a Washington Business Journal article.

"The property's superb location and stellar occupancy history of approximately 95 percent over the last 10 years led to extremely competitive bidding," said Dek Potts of HFF.

919 18th Street is a 10-story, 105,965 square foot office building in the heart of the Central Business District, directly across from the Farragut West Metro. The building was awarded an Energy Star label in 2010 for its operating efficiency, and was most recently renovated in 2013. Originally built in 1981, the property was 94% leased at the time of sale to 20 tenants, including Devon & Blakely.

For more news and information visit Blumberg Capital Partners.

Essex Property Trust Buying BRE Properties in $4.3B Deal

Essex Property Trust, a fully integrated real estate investment trust (REIT), announced that it had entered into a definitive agreement to buy BRE Properties for about $4.3 billion, creating the largest publicly traded apartment owner on the West Coast. The combined company is expected to have a pro forma equity market capitalization of approximately $10.4 billion and a total market capitalization of approximately $15.4 billion. The transaction forms the only publicly traded real estate investment trust solely focused on West Coast apartments, and will provide a greater competitive advantage, said Michael Schall, president and chief executive officer of Essex in Palo Alto, in a San Francisco Chronicle article. Upon completion of the merger, the company will retain the Essex name and will continue to trade under the ticker symbol ESS (NYSE). The transaction is expected to close during the first quarter of 2014.

"The combination of Essex and BRE creates a stronger platform for sustainable growth and value creation going forward. The combined company will be the largest and only publicly traded pure play apartment REIT on the West Coast which we believe will provide a greater competitive advantage in our markets," said Schall. "In addition, by combining the strengths of the two platforms, which have a significant geographic overlap, we expect to realize operating efficiencies and further enhance our growth profile."

"For over a year, BRE's board and management team have been evaluating alternatives to maximize shareholder value. We are pleased to have reached this agreement with Essex, which we believe will deliver significant value to all of our stakeholders," said Constance Moore, Chief Executive Officer of BRE Properties. "This transaction will create a must-own sharpshooter REIT focused on West Coast apartments, and we believe this is a great outcome for our Company. After careful consideration, we determined that combining with Essex is the best way to accelerate our strategic plans and create an organization with greater reach, capabilities and financial resources. We are especially pleased that BRE shareholders will realize compelling and immediate value as well as shares in one of the industry's most highly regarded companies, so they can participate in the upside potential inherent in this powerful combination. Our team is looking forward to working with Essex's management to create a platform with best-in-class associate talent and practices."

For more news and information visit Blumberg Capital Partners.

Shorenstein Properties Buys Denver City Center $286M

Shorenstein Properties entered the Denver market with its acquisition of the Denver City Center this month for $286 million, according to a person familiar with the price. Crescent Real Estate, doing business as MS Crescent Two SPV, bought the two-building Denver City Center, which includes Johns Manville Plaza, in 2007, when the Fort Worth, Texas-based company paid $155.3 million for 717 17th (Johns Manville Plaza) and $126.7 million for 707 17th, Denver Assessor records show.

"Denver City Center's rich amenities, access to public transit and excellent location make it an appealing corporate address for a broad range of tenants doing business in Denver and we only look to enhance its appeal through our management and operational expertise," said Douglas Shorenstein, Chairman and CEO, Shorenstein Properties, in a statement.

The purchase includes the office portion (floors 21 through 42) of 707 17th Street, a 42-story LEED Silver-certified Class A office building, and Johns Manville Plaza, an adjacent 29-story LEED Gold certified office building located at 717 17th Street; also included in the purchase is parking for 589 vehicles. The two adjacent office buildings encompass 1.3 million square feet located on 17th Street in the heart of downtown Denver. The buildings are currently home to 40 companies including the world headquarters of Johns Manville, a leading manufacturer of building products and part of the Berkshire Hathaway group of companies.

For more news and information visit Blumberg Capital Partners.

Wellesley Office Park Sold to Manulife for $237M

The Wellesley Office Park, a master-planned office park in suburban Boston, traded hands this month as HFF announced that it had closed the sale of the trophy office park for $237 million. The Blackstone Group's Equity Office Properties affiliate sold the 649,184-square-foot office park in Wellesley to John Hancock, of the wholly owned subsidiary of Manufacturers Life Insurance Co. (Manulife Financial), Toronto. Terms of the deal were not disclosed.

"Wellesley Office Park can easily be considered ‘best in class' and embodies all the long-term criteria standards of institutional investors: irreplaceable setting, convenient access, on-site amenities and marquee tenancy," said Coleman Benedict of HFF. "This distinction is overused in today's environment and only truly applies to those office properties that consistently outperform their peer group, regardless of market conditions."

"This property represents the type of high-quality asset we acquire in key markets as a priority for our strategic plan. The strong tenant roster and superb location make this an excellent addition to our investment portfolio," Ted Willcocks, Global Head of Asset Management for Manulife Real Estate told Commercial Property Executive.

The campus is comprised of eight buildings totaling nearly 650,000 square feet on William Street, off Route 9 and overlooking the Charles River. Blackstone tapped HFF to market the complex in September, according to a Boston Business Journal article. The complex was 90% leased at the time of sale to tenants including AXA Equitable Life Insurance, Northwestern Mutual Life, Bank of America Merrill Lynch, Newton-Wellesley Hospital, Wells Fargo, Morgan Stanley, Eagle Investment Systems, Stream Global Services, UBS, Benchmark Senior Living, REZ-1, Baystate Financial, and F-Squared Investments.

For more news and information visit Blumberg Capital Partners.

Miami Rivergate Buildings Sold for $104M

CWCapital Asset Management, a subsidiary of CW Financial Services, announced that it had completed the sale of two office towers at 444 Brickell Avenue in Miami to Related Group for $104 million, or about $344 per square foot. Related Group subsequently unveiled plans for three tall towers at 444 Brickell Avenue, including residential, hotel, office, and retail space. The new project, One Brickell, is expected to include three skyscrapers rising 80, 70, and 55 stories, and will encompass more than 4 million square feet, including 2 million sellable square feet, according to a Miami Herald report.

"This transaction underscores the depth of our experience in servicing distressed properties and our ability to execute and react quickly to changing market conditions," said David Iannarone, President of CW Financial Services, of the sale. "Our team identified and executed an asset level strategy that elevated the attractiveness and value of the property while conducting a marketing campaign that leveraged rising real estate prices in downtown Miami. We are confident that the timing is right and that we have maintained our principal goal, which has always been maximizing value on behalf of the bondholders."

"This is the most important development in the urban core," Related Group's chairman and CEO, Jorge Pérez, said in a statement. He added: "One Brickell is the link that will unify the neighborhood by bringing pedestrian-friendly walkways from east Brickell all the way to Brickell CityCentre. Our vision will meet the robust demand for additional residential, hospitality, and entertainment facilities in the area."

For more news and information visit Blumberg Capital Partners.

Forum Office Park Closes $78.7M in Financing

Cassidy Turley announced this week that it had arranged financing totaling $78.7 million for The Forum office park in Raleigh, North Carolina. Cassidy Turley executive managing director John Campanella and vice president Paul Spellman arranged the financing on behalf of Highwoods, a Raleigh-based REIT. An unnamed commercial bank provided the financing, according to a GlobeSt.com article.

"Due to the institutional sponsorship and outstanding tenancy, the transaction priced aggressively making it one of the premier finance transactions in the Southeast in 2013," said Mr. Campanella in a statement.

The Forum, situated on Six Forks Road just south of I-540, enjoys a location at the core of one of the area's most desirable office markets. This prime location offers customers the ability to quickly access Raleigh and the entire Triangle. Totaling 635,380 square feet, all five buildings feature structured parking with covered direct building access. The complex is currently 96% leased.

For more news and information visit Blumberg Capital Partners.

CBRE Acquires CAC Group

CBRE Group, Inc. announced this week that it had acquired The CAC Group (CAC), one of San Francisco's most dominant real estate brokerage and property management firms. While terms of the deal were not disclosed, CBRE did announce that the acquisition makes CBRE the number one provider of commercial property management and leasing in one of the strongest and fastest growing office markets in the United States. CAC was founded in 1990, and employs 130 real estate professionals, serving as agent for approximately 18 million sq. ft. and manages approximately 11 million sq. ft. of office properties in downtown San Francisco, the greater Bay area and Seattle (including Bellevue).

"It's really no secret that we felt that CBRE was the ideal match to take our company to the next generation," said Bill Cumbelich, a co-founder and principal of CAC, in a San Francisco Business Times article. "When we had a client that, let's say, was based here in San Francisco and was growing nationally or globally, we were not able to help them. But with CBRE — that's exactly what they can do."

"This is a great day in the history of commercial real estate in San Francisco. CBRE was founded in San Francisco in 1906, and today we have created the premier real estate company in The City," said Steven Swerdlow, CBRE's Chief Operating Officer for the Americas, and President, Western Division. "CAC has been a recognized leader in commercial real estate in San Francisco for almost a quarter of a century. Most importantly, they share our values and commitment to being a world-class, client-focused real estate advisor."

For more news and information visit Blumberg Capital Partners.

100 Plaza Drive in Secaucus Sold for $47M

Hartz Mountain Industries, Inc. announced this week that it had sold 100 Plaza Drive in Secaucus, New Jersey for $47 million to Virginia-based Harbor Group International. CBRE's New York Institutional Group represented Hartz in the transaction and arranged the sale, which follows the June purchase of 200 Plaza Drive in Harmon Meadow by Gaia Real Estate for $56 million, according to a NorthJersey.com report.

"The 100 Plaza Drive acquisition provides Harbor Group International with a well located, recently renovated office building with excellent access to Midtown and an unmatched amenity base," said Jeffrey Dunne of CBRE. "Harbor Group International was attracted to the Property's strong credit tenancy and minimal near term rollover, and should fare well with the investment."

The property is located within the Harmon Meadow complex, a 4.4 million square foot mixed-use development, which includes numerous tenant amenities such as restaurants, parking, hotels and retail – all within walking distance of the property. Developed by Hartz in 1981, the 265,000-square-foot building at 100 Plaza Drive is primarily occupied by NBA Entertainment and Scholastic Corp., the company said in a news release. Hartz renovated 100 Plaza Drive between 2008 and 2011, with improvements including a new facade, roof and air-conditioning-heating system, an upgraded four-story atrium and entryways along with a newly constructed adjacent parking deck.

For more news and information visit Blumberg Capital Partners.

KBS Sells Millennium Tower in Dallas

KBS Realty has sold the 351,683 square-foot Millennium Tower, one of the most prestigious and recognizable office properties in Far North Dallas, to Gaedeke Group, a Dallas-based real estate firm. KBS Realty, which was represented in the sale by the CBRE team of Gary Carr, John Alvarado, Erick Mackey, and Robert Hill, acquired the building in 2008 from RREEF. The sale price and terms of the deal were not disclosed.

Carr, CBRE vice chairman, said the property was highly sought-after by institutional and private investors nationwide. "Millennium Tower is one of the highest quality suburban assets in the city," he said. "We are pleased to see Gaedeke buy it because of the quality of the ownership. This building has always been owned by quality investors."

"We have looked at many buildings through the years, but this one stood out as a premier class office building," says Glenn Lickstein, president of Dallas-based Gaedeke Group. "This is an excellent addition to our existing portfolio of class A office properties."

The 14-story, 351,683-square-foot office building at 15455 N. Dallas Parkway has been institutionally owned since its completion in 2000 by Dallas developer Wynn Jackson. As of January 2014, the property will be 97.8% occupied, with major tenants including Dresser Inc., a subsidiary of General Electric Co. Going forward, leasing will be handled by Belinda Dabliz, vice president at Gaedeke, according to a D Real Estate Daily report. On-site property management will be led by Debra Spears, who previously oversaw Banner Place.

For more news and information visit Blumberg Capital Partners.

Wells Fargo Breaking Ground on $125M Expansion

Wells Fargo is breaking ground on a 410,000 square foot expansion of its Chandler campus along the Price corridor in Arizona, a $125 million expansion project that will double the size of its footprint in the area. The Chandler expansion will provide space at 2600 S. Price Road for approximately 2,500 employees, adding two four-story buildings, a four-story parking garage, event center plus a café. Future phases of campus development could add another 920,000 square feet of office space and additional parking.

"The buildings will provide room for 2,500 additional team members, giving us the ability to relocate team members and the flexibility for growth," Lori Brown, a local Wells Fargo spokeswoman, said in an email to the Phoenix Business Journal. Wells Fargo employs about 13,000 people in the Valley, about 2,500 of whom work at the Ocotillo Corporate Campus on Price Road, Brown said. The bank is the fourth-largest employer in Chandler, according to the city's website.

Wells Fargo has had a corporate office on the Price Corridor since 2004, but did not want to build until it had sufficient staff, so most of the employees that would move to the new section are working in temporary locations elsewhere, Leo Bauman, vice president and manager at Wells Fargo, said in a Maguire Co. study conducted earlier this year.

For more news and information visit Blumberg Capital Partners.

WRIT Disposes of $307M in Medical Properties

Washington Real Estate Investment Trust (WRIT), a metro-DC-based equity real estate investment trust founded in 1960, announced that it had completed two separate sale transactions to complete the first phase of the disposition of the company's medical office portfolio. During an earnings call last month, company officials said the medical building selloff was a move to raise capital rather than borrowing to expand. WRIT reported two deals totaling $307.2 million covering about 877,000 square feet of medical office space, plus another 216,000 square feet of office space, much of it filled with medical tenants.

"As planned, the structure of this large transaction has provided WRIT the flexibility to redeploy the sales proceeds into assets that are aligned with our current strategy. We look forward to executing the two remaining medical office sales transactions in the next few months," said Paul T. McDermott, President and Chief Executive Officer of WRIT.

The first sale transaction included 2440 M Street, Alexandria Professional Center, Woodholme Medical Office Building, 9850 Key West Avenue, 15001 Shady Grove Road, 15005 Shady Grove Road, 6565 Arlington Boulevard, 19500 at Riverside Office Park, 9707 Medical Center Drive, Woodholme Center, CentreMed I & II, Ashburn Farm I, II and III, 8301 Arlington Boulevard and Sterling Medical Office Building. The second transaction included 4661 Kenmore Avenue, a land parcel that is being utilized as off-site/overflow parking for one of the medical office buildings, Alexandria Professional Center, located in Alexandria, Virginia. The sole buyer in these transactions was Harrison Street Real Estate Capital. WRIT’s remaining medical office properties are also under two additional contracts with Harrison Street Real Estate Capital and are projected to close as follows: Woodburn I & II on or about January 31, 2014 for approximately $79 million, and Prosperity I, II and III on or about January 31, 2014 for approximately $114.6 million.

"The sale of their MOBs, like the sale of their industrial portfolio two years ago, was excellent from a strategic, pricing and timing perspective," John Guinee III, managing director with brokerage and investment banking firm Stifel Nicolaus & Co. Inc., told Commercial Property Executive. But having half-a-billion-dollar to play with in pursuit of a new investment strategy may not be as simple as it seems. "The WRIT challenge is what to do with the proceeds, as the DC-area real estate investment sales market remains hot with a disconnect between pricing and fundamentals–high versus uninspiring," Guinee added.

For more news and information visit Blumberg Capital Partners.

Chinatown Office Portfolio Sold for $95.5M

Dadourian Management, a wholly owned subsidiary of Dadourian Export Corporation, sold three office buildings in Manhattan's Chinatown neighborhood in two all-cash transactions with an aggregate value of $95,500,000. George Comfort & Sons, Inc., with ASB Real Estate Investments, purchased 164-168 Canal Street in an all-cash transaction valued at $61,900,000, or roughly $1,239 per square foot. The Oved Group purchased 40-42 Elizabeth St. and 159-165 Canal St. for $33.6 million, equating to approximately $1,142 per square foot, according to a CoStar Group report.

"These three excellent properties are situated on busy corners of a street and in a neighborhood that is really taking off. Having three buildings available at the same intersection generated a ton of initial interest, with investors and developers looking both at buying the properties individually and as a package," said Massey Knakal CEO Paul Massey, Jr., who exclusively handled these transactions with Robert Burton and Nick Petkoff. "Ultimately, we wound up in competitive bidding situations and sold 159-165 Canal Street and 40-42 Elizabeth Street as a package, and 164-168 Canal Street separately. The family that sold the buildings had the security of knowing that they had reached out to the entire market and that they were getting the highest prices and best terms available," Paul added.

164-168 Canal Street is a six-story building that contains approximately 49,950 square feet and is currently 70% leased by credit tenants Citibank and NY Life & Co. 40-42 Elizabeth Street is a five-story renovated office building containing approximately 24,425 square feet, with two ground floor retail stores with 16 office units above, and the basement is used for storage and mechanicals for the building. 159-165 Canal Street is a two-story building containing approximately 5,000 square feet on a 100.17' x 25' lot. It consists of six ground floor retail tenants anchored by First Republic Bank, with office tenants above.

For more news and information visit Blumberg Capital Partners.

CCIT Acquires $202M of Net Lease Office Properties

Cole Capital, the private capital management business of Cole Real Estate Investments, Inc., announced that it had acquired five single-tenant corporate properties by Cole Corporate Income Trust, Inc. (CCIT) for a combined price of approximately $202.1 million. The properties include facilities in San Jose, Colorado Springs, St. Louis and Houston and are now part of Cole's office portfolio, which consists of 63 wholly owned properties located in 25 states, totaling approximately 11.6 million square feet with an aggregate purchase price of approximately $1.7 billion.

"These latest acquisitions are consistent with CCIT's strategy of securing mission-critical properties nationwide that are essential for corporate operations," says Thomas W. Roberts, EVP and head of real estate investments at Cole Real Estate Investments, Inc. in a GlobeSt.com article. "These 'necessity' properties boast credit-quality tenants, long-term leases, valuable rent increases and varied industries, while providing geographic diversification to the expanding CCIT portfolio."

The new acquisitions include:

LATTICE SEMICONDUCTOR CORPORATION – San Jose, CA MSA
CCIT acquired a 98,874-square-foot two-story, Class A office building leased to Lattice Semiconductor Corporation. The facility serves as a development center and product design facility for Lattice, and activities at the property include research and development, as well as prototype product manufacturing and testing. There are approximately 12.9 years remaining on the initial lease term, plus a renewal option.

FEDEX CORPORATE SERVICES – Colorado Springs, CO MSA
CCIT acquired a 155,508-square-foot three-story, Class A office building leased to FedEx Corporate Services, Inc., with a guaranty from FedEx Corporation. The property is the primary facility used by FedEx for the development and programming of various technologies that the company uses to route and track its delivery services. The lease has approximately 11.0 years remaining, plus renewal options.

SERVICENOW – San Jose, CA MSA
CCIT acquired a 148,866-square-foot three-building office complex leased to ServiceNow, Inc., a leading provider of cloud-based services that automate enterprise IT operations. The property serves as an operations facility for ServiceNow with an emphasis on research and development, as well as corporate functions. There are approximately 10.4 years remaining on the initial lease term, plus renewal options.

MAGELLAN HEALTH SERVICES – St. Louis, MO MSA
CCIT acquired a 232,521-square-foot three-story, Class A office building leased to Magellan Health Services, Inc. Magellan uses the property as a national technology, administrative and customer care center, and it is the main corporate location for the entire company's marketing, printing, production and mail operations. There are approximately 11.2 years remaining on the initial lease term, plus a renewal option.

TGS-NOPEC GEOPHYSICAL COMPANY – Houston, TX MSA
CCIT acquired a 97,295-square-foot three-story, Class A office building leased to TGS-NOPEC Geophysical Company. TGS-NOPEC Geophysical Company is a geophysical mapping company serving the oil and gas exploration and production industries. The property serves as TGS-NOPEC's headquarters for U.S. operations, as well as the home office for the global CEO. The lease has approximately 11.9 years remaining, plus renewal options.

For more news and information visit Blumberg Capital Partners.

Parmenter Realty Partners Buys The Tower at Cityplace

Miami-based Parmenter Realty Partners announced this week that it had purchased The Tower at Cityplace in Dallas, Texas, marking the company's tenth investment in Parmenter Realty Fund IV. While the final purchase price was not disclosed, HFF, which sold the building on behalf of the owner, Dallas-based CPT Fee Owner LP, announced that it has arranged $100 million in financing for the property through GE Capital Real Estate, the proceeds of which were used to acquire the asset with a future funding component for leasing and capital expenditures. According to a Dallas Morning News report, real estate brokers speculate that the building went for more than $135 million.

"We are pleased to add The Tower at Cityplace to our Parmenter Realty Fund IV portfolio," said Darryl Parmenter, Chairman and CEO of Parmenter Realty Partners. "This iconic building was built with the highest design quality and standards and is the perfect asset to round up Fund IV before we launch our Parmenter Realty Fund V in January 2014."

The 1.3 million-square-foot office tower was originally built in 1988 less than a mile north of downtown Dallas and the Arts District. As part of the purchase, Parmenter Realty Partners plans to develop 600,000 square feet of restaurants, shops and residential space surrounding the 42-story office and retail tower at 2711 N. Haskell Avenue. Parmenter said it also plans to implement a comprehensive capital improvement program consisting of the renovation of the building's common areas as well as completing other capital projects to enhance the property's trophy stature.

"Uptown's vacancy rate currently stands at 11 percent and is projected to be single digit by the end of the year," said Spence Sowa, Senior Vice President of Acquisitions at Parmenter Realty Partners. "With limited new construction in the surrounding submarkets and an increasing demand for a live-work-play environment, The Tower at Cityplace is strategically positioned to take advantage of the growing market trend."

For more news and information visit Blumberg Capital Partners.

Credit Suisse Group Buys Adam Grant Building for $105M

Jones Lang LaSalle Capital Markets announced this week that it had facilitated the sale of the Adam Grant Building in San Francisco on behalf of Seagate Properties. Credit Suisse Group shelled out about $105 million for the Adam Grant building at 114 Sansome Street, a transaction that valued the historic property for more than $560 a square foot, according to real estate sources, reported the San Francisco Business Times. Terms of the deal were not disclosed, but public records show that Seagate Properties paid $67 million for the property in 2007.

"The Adam Grant Building is a one of San Francisco's premier landmark office buildings, and it offers the desirable combination of strong income stream security and significant upside potential," said Michel Seifer, Managing Director at Jones Lang LaSalle.

Originally built in 1908 and expanded in 1926, the Adam Grant Building is a 180,000 square-foot office building located in the center of the San Francisco financial district. It is recognized by San Francisco's Historic Preservation Commission as a Category I historically significant building, which is defined as a structure with great individual importance and excellent architectural design. The property has also received an "A" rating from the Foundation for San Francisco's Architectural Heritage, recognizing it as one of the most important buildings in the city.

For more news and information visit Blumberg Capital Partners.

Discovery Corporate Center Building Sold for $36.5M

Drawbridge Realty Trust, a San Francisco-based real estate investment and development company, announced that it had acquired the Discovery Corporate Center Building A in San Diego, California for $36.5 million. Menlo Equities sold the property, originally developed by Bernardo Technology Partners, which was formed in June 2004 to develop, own and operate a 242,526‑square‑foot office technology campus built in two phases. Terms of the deal were not disclosed.

"Building A is the third building we've acquired in the Discovery Corporate Center campus," said Mark Whiting, CEO of Drawbridge Realty Trust. "It's the flagship property on the campus, and serves as Broadcom's regional headquarters."

Adjacent to Rancho Bernardo Road and the I-15 freeway, Building A at 16340 West Bernardo Drive is a three-story Class A office building with 90,610 square feet of space on just over four acres. The property was 100% leased at the time of sale to Broadcom Corporation.

For more news and information visit Blumberg Capital Partners.

Square Mile Sells Spring Garden Tower for $184.5M

Square Mile Capital Management, a New York-based diversified real estate investment firm, completed the sale this week of the office tower at 1500 Spring Garden St. in Philadelphia, PA for $184.5 million, or about $171 per square foot. According to a CoStar report, a joint venture of The Nightingale Group LLC and Carlton Associates, Inc. purchased the building, which was put up for sale this summer. Jones Lang LaSalle arranged the transaction with the buyers handling the sale in-house, the terms of which were not disclosed.

1500 Spring Garden Street, also known as the SmithKline Beecham Headquarters Building, was originally built in 1947 and underwent renovations in 2002 to accommodate offices, operations centers and a major television studio with master planning from Bruce E. Brooks & Associates. The 12-story, 1.08 million-square-foot, 4-Star office tower was reportedly 90% leased at the time of sale with major tenants including Sungard Availability Services, Thomson Reuters, Independence Blue Cross, Day & Zimmermann, and CBS Broadcasting.

For more news and information visit Blumberg Capital Partners.

Bixby Developing Gen2, New OC Creative Office Space

Bixby Land Company, an Irvine, CA-based privately-held REIT, has begun developing a new project in Orange County to redesign office space at a two-story office building at 18231 West McDurmott in Irvine. Bixby has engaged the architect firm LPA to help create a contemporary work environment, dubbed Gen2, to accommodate three tenants of approximately 15,000 square feet each when completed by the middle of next year. Bixby purchased the 45.6k square-foot property earlier this week for an undisclosed sum.

"The redesign of this building will provide a compelling niche for tenants seeking creative space in the airport area," said Bill Halford, president and CEO of Bixby Land Company. "There is a great deal of demand for creative office space that has not been met in the local market."

Gen2 will feature natural and sustainable materials, dramatic entry points with horizontal wood elements and the signature Bixby Retreat™, an outdoor gathering area that serves as a natural extension of the collaborative interior spaces.

"We have been able to create an exciting, progressive environment by incorporating a new outdoor deck that is easily accessed from the tenant space," said Dan Heinfeld, president of LPA. "By adding a series of folding doors that open to the deck we have created a true indoor outdoor connection that takes full advantage of Southern California's temperate climate. The seamless connection to the exterior will give tenants a variety of ways to connect with the outdoors," added Heinfeld.

For more news and information visit Blumberg Capital Partners.

Tryperion Partners Buys St. Louis Portfolio

The suburban St. Louis headquarters of Energizer Holdings and Panera Bread were among six properties acquired by Tryperion Partners in a St. Louis suburban office portfolio purchase announced this week. While the transaction amounts and terms of the deals were not disclosed, Tryperion did reveal that the acquisition was completed in two separate transactions – two buildings totaling 252,000 square feet in the prominent Maryville Centre office campus in Town and Country were acquired with financing from John Hancock Life Insurance Company, and four buildings totaling 385,000 square feet in Sunset Hills and Maryland Heights were acquired with financing from Wells Fargo. CBRE has been engaged to manage the portfolio, with Tom Ray and Art Kerckhoff of CBRE selected as listing agents for the Maryville assets, and Jay Holland and Piers Pritchard of Cassidy Turley for the Sunset Hills and Maryland Heights assets.

"We are excited about this move into St. Louis. This acquisition fits our strategy of investing in cash flowing assets in secondary markets with strong fundamentals," said Tryperion partner Eliot Bencuya of the acquisition. "The caliber of tenants, and the investments they have made in their headquarters locations, is an affirmation of the quality of this portfolio."

According to a St. Louis Post-Dispatch article, Tryperion acquired the properties through its Tryperion RE Fund 1 LP, a $50 million fully discretionary commingled fund closed in May. The portfolio was over 90% leased at the time of sale, with long-term leases including the national headquarters for Energizer Holdings and Panera Bread, and regional headquarters for Equifax and New Balance.

For more news and information visit Blumberg Capital Partners.

Eight El Camino Real Corridor Redevelopment Sites Sold

Marcus & Millichap Real Estate Investment Services announced this week that it had facilitated the sale of eight key Silicon Valley redevelopment sites along the El Camino Real corridor in separate transactions for a total of $71.1 million. Last month, the company arranged the $12.35 million sale of a 2.5-acre redevelopment site located at 302 North Fair Oaks Ave., 318 North Fair Oaks Ave., 617 Arques Ave. and 627 Arques Ave. in Sunnyvale, California. Since March 2012, Marcus & Millichap Real Estate Investment Services has facilitated the sale of six additional El Camino Real corridor properties totaling $43.9 million. In August, they arranged the sale of a 1.6-acre parcel at 881 East El Camino Real and a 0.6-acre parcel at 865 East El Camino Real in Mountain View, California.

"The employment gains and flow of venture capital dollars that returned in earnest to Silicon Valley in 2010 created a strong combination of factors that brought about double-digit multifamily rent growth, robust demand for office space and contributed to the ongoing recovery in the hotel sector," says Steve Seligman, vice president and regional manager of Marcus & Millichap's Palo Alto office. "This growth also initiated a flurry of construction in the region and investors continue to pursue development opportunities in the area's under-utilized locations."

"Marcus & Millichap's Palo Alto office is closely acquainted with this submarket and two of our senior investment specialists, Kirk Trammell and J.J. Taughinbaugh, have been particularly successful in identifying redevelopment project sites for clients," added Seligman.

For more news and information visit Blumberg Capital Partners.

ASB Acquires Manhattan Mixed Use Property for $61.9M

ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, announced this week that it had acquired 164-168 Canal Street in Manhattan on behalf of ASB's Allegiance Fund in a joint venture with George Comfort & Sons for $61.9 million. The six-story mixed use building first came to market in August, being marketed by Massey Knakal Realty Services with an asking price of $63 million. Terms of the deal were not disclosed.

Robert Bellinger, President and CEO of ASB Real Estate Investments, said: "This is a high-quality asset in a premier, Class A+, Manhattan retail location. Driven by the growth in Chinese wealth, this area of Canal Street has emerged as a thriving bank corridor and we expect the property to continue to experience strong investment grade tenancy that provides a steady income stream."

The 49,951 square-foot red brick building was originally constructed in 1910 at the corner of Canal and Elizabeth Streets. Nearly all of the current leases in the building are set to expire by the end of the year, with roughly 70% of the property occupied by credit tenants, including CitiBank and NY Life & Co.

For more news and information visit Blumberg Capital Partners.

Carlson Sells AZ Portfolio for $52.6M

Newport Beach, California-based Buchanan Street Partners announced this week that it had purchased a 446,000-square-foot portfolio from Carlson Real Estate Company for $52.6 million, or $118 per square-foot. Buchannan purchased the 10-building portfolio in four separate sale transactions which were represented by Eastdil Secured.

Carlson, which is affiliated with the family-owned Carlson Cos., announced in early 2012 it was planning to shed some of its 5.5 million square feet of commercial real estate holdings as part of a plan to move Carlson family wealth to new generations. The properties in this portfolio were 74% leased at the time of sale, and includes a mix of office, industrial, office flex and retail properties, eight of which are located in the Cotton Center, one of the most desirable master-planned business parks in Phoenix.

"Cotton Center provides tenants with abundant amenities, a central location and high-quality buildings," said Brian Payne, vice president at Buchanan Street Partners. "This is another example of Buchanan Streets' ability to identify investment opportunities and close in a timely fashion."

For more news and information visit Blumberg Capital Partners.

Twitter Adds to Sunnyvale Space

Twitter, the San Francisco micro-blogging social network, announced this week that it was expanding its office space with the lease of an additional 10,000 square feet at Sunnyvale Business Park, at 400 West California Ave. The company first established its presence at Sunnyvale in May of this year with the lease of 8,000 square feet of space, along with the commitment from property owner Principal Real Estate Investors to construct a 107,000-square-foot office building next to the existing building for additional Twitter space.

Dave Sandlin, a Colliers International senior vice president who represents Twitter's Sunnyvale property, said some San Francisco tech companies are realizing they need to have a presence further south. After all, while the city might be the hot talent market right now, the greater San Jose metro area also carries some advantages. "If you look at the housing situation in San Francisco, trying to put all your workers up there is very difficult, " said Sandlin.

The emphasis on San Francisco signifies how Silicon Valley, an area extending south from just below San Francisco to San Jose, California, no longer has a grip on technology companies, as reported by a New York Times article this month. About 18 months ago, tech companies started moving or expanding here to be closer to their employees. According to reports, Twitter is looking to add 320,000 square feet to its footprint in San Francisco, bringing its total to about 600,000 square feet.

For more news and information visit Blumberg Capital Partners.

Kaneohe Ranch Selling Hawaii CRE Portfolio for $262M

Alexander & Baldwin Inc. has entered into an agreement to purchase Kaneohe Ranch's Hawaii commercial real estate portfolio for $262 million in a deal expected to close by the end of the year, according to a petition filed by a beneficiary seeking to postpone a vote on the sale scheduled for next week, as reported by a Pacific Business Times article.

Kaneohe Ranch Co. LLC and the Harold K.L. Castle Foundation put the entire Kaneohe Ranch commercial real estate portfolio in a listing with Eastdil Secured, which includes the town center in Kailua in Windward Oahu, on the market in May of this year. The Hawaii portfolio also includes the land beneath the Windward City Shopping Center and Servco Windward Toyota in Kaneohe, and three properties in Honolulu. The portfolio was being marketed in its entirety, or as two geographic sub-portfolios.

The Mainland portfolio, which is reportedly not included in the sale, includes five leased fee land interests, three single-tenant retail and office assets and one multifamily asset located in San Francisco, Seattle, Miami, Dallas, Phoenix and Portland, Ore. Tenants in those properties include Lowe's in San Jose, Calif., a Kohl's department store in Phoenix, the Miami Marriott Biscayne Bay and the U.S. government.

For more news and information visit Blumberg Capital Partners.

Pomfret Buys Pleasanton Building for $6.5M

Pomfret Estates Inc. finalized its purchase this week of a 23,076-square-foot medical office building in Pleasanton, California for $6,550,000, or $282 per square foot. Pleasanton-based Bernal Associates sold the building with representation from Ian Thomas, senior vice president of Colliers International, while Pomfret was represented by Transwestern Managing Director Ed Del Beccaro. Terms of the deal were not disclosed.

The medical services building at 5000 Pleasanton Avenue was originally listed for sale in April 2013 and marketed by Colliers. Built in 1999, the building offers approximately 3,556 rentable square feet on the ground floor, along with building signage opportunities and an excellent central location near Amtrak, Highways 580 and 680 and downtown Pleasanton. Del Beccaro and Transwestern Vice President Sonny O'Drobinak have also been retained to lease the two-story medical office.

For more news and information visit Blumberg Capital Partners.

Griffin Capital Picks Up $521.5M Office Portfolio

El Segundo, CA-based Griffin Capital Corporation, on behalf of Griffin Capital Essential Asset REIT, Inc., announced this week that it had acquired an 18 building office portfolio for $521.5 million, bringing the REIT to over $1.3 billion in total capitalization. Griffin Capital purchased the portfolio from Atlanta-based Columbia Property Trust, which was represented by CBRE, while Barclays served as financial advisor for Griffin Capital. Financing for the acquisition was provided by a $300 million term loan led by Key Bank, of which $282 million was initially drawn and the remaining $18 million held back for future specific releasing costs.

"We have been very proactive in repositioning our portfolio with a focused market strategy to invest in premier office properties in growing markets with solid fundamentals," said Nelson Mills, President, Chief Executive Officer, and Director of Columbia Property Trust. "This transaction substantially increases our concentration in our top 10 markets, reduces our exposure to suburban markets and raises our percentage of multi-tenant properties.

The portfolio includes the following assets:

ATLANTA: 2500 Windy Ridge, 4100, 4200 & 4300 Wildwood
CINCINNATI: 4241 Irwin Simpson Road and 8990 Duke Boulevard
COLUMBUS: Chase Center Columbus and Sterling Commerce Center I and IV
DALLAS: 4300 Centreway Place and One MacArthur Ridge
DETROIT: 333 & 777 Republic Drive
INDIANAPOLIS: College Park Plaza
MILWAUKEE: 11200 W. Parkland Ave.
NASHVILLE: One Century Place
NEW JERSEY: Eagle Rock Executive Office Center IV
PHILADELPHIA: 1200 Morris Drive
SEATTLE: 15815 25th Avenue West and 16201 25th Avenue West
ST. LOUIS: 13655 Riverport Drive

Major tenants include Coca Cola Refreshments USA, General Electric Company, IBM, JP Morgan Chase, Aetna Life Insurance Company, Comcast Corporation, WellPoint and Wells Fargo Bank. Griffin Capital's chief investment officer Michael Escalante said the strategy behind the Essential Asset REIT is to own properties that serve as "essential assets" for the tenant, such as national and regional headquarters buildings, primary research & development facilities, and key business servicing centers, according to a CoStar report.

"With over 80% of the rents paid by investment grade-rated companies or corporate guarantors, and the vast majority of the buildings leased to iconic, blue chip1 tenants, this is an ideal fit for Essential Asset REIT," said Kevin Shields, Griffin Capital's Chairman and Chief Executive Officer in a statement. "With this transaction, this REIT almost doubles in size, but far more important is the high quality assets and increased diversification this portfolio provides. Essential Asset REIT now includes tenants representing 33% of the DOW 30."

For more news and information visit Blumberg Capital Partners.

NAIOP Report on Commercial Real Estate's Economic Contributions to the Economy

The NAIOP Research Foundation has released its report on How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2012 which shows that commercial real estate is on the rise. The report quantifies the economic impact of new commercial real estate development and construction in the U.S. and states for 2012, including jobs created, income generated, GDP and the effect of multipliers. According to the report, development and construction of new commercial real estate – office, industrial and retail buildings – continued its climb in 2012, supporting approximately 2.3 million American jobs and contributing $303.4 billion to the nation’s economy, marking the second year that the sector posted gains since 2007.

Some key hilights from the report include:

• Commercial real estate alone supported at least 2.3 million American jobs in 2012
• Commercial real estate contributed $303.4 billion to U.S. GDP, a 16% increase from 2011
• Construction and development spending grows nearly 10% from 2011
• 307.5 million square feet built in 2012, a 29% increase from 2011

This video produced by the NAIOP Research Foundation further explains how commercial real estate development positively impacts the economy.

For more news and information visit Blumberg Capital Partners.

Westport Capital Affiliate Buys Corporate Plaza

Corporate Plaza, a highly recognizable office development within the St. Louis West County submarket, traded hands this month as Invesco Real Estate sold the property to an affiliate of Westport Capital Partners for an undisclosed price. Transwestern's Chicago office brokered the deal on behalf of Invesco with representation from Gary Nussbaum, Thomas Gorman, and David Matheis. Westport Capital Partners represented itself in the transaction.

"We are thrilled to have completed this acquisition," said Sean Armstrong, a principal of Westport. "Mercy plays a vital role in providing healthcare to more than three million people annually. We look forward to supporting its mission as its landlord."

"There was significant interest in the property due to the credit of the anchor tenant and the location in the Highway 40/West County office market, which is highly sought after by investors," said Gary Nussbaum, managing director of Transwestern.

The 210,409 square-foot, five-story office building at 14528 S. Outer 40 in Chesterfield, Missouri was 98% leased at the time of sale, with the not-for-profit healcare provider Mercy occuping 89% of the property, according to a Sacramento Bee article.

For more news and information visit Blumberg Capital Partners.

Toronto's Avison Young Acquires McShea & Company

McShea & Company, a full-service real estate services company founded in 1983 and operating throughout the Washington metropolitan area, has been acquired by Avison Young, a a Toronto-based commercial real estate firm seeking to expand its presence in the region. The change in ownership adds 150 employees to Avison Young's Suburban Maryland operations, and makes Avison one of the largest real estate firms in Suburban Maryland and the Washington Metropolitan Area. According to a Washington Business Journal article, Avison Young has been seeking to beef up its D.C. presence for past few years through a mixture of acquisition and recruitment, hiring former Grubb & Ellis Managing Director Keith Lipton in 2009 to help it open a new office in the District.

The acquisition means that McShea & Company founders Tim McShea and Jack McShea, along with Len Mongeon, Laurie Craft, Steve Lynch and Bob Dickman become Principals of Avison Young. Tim McShea and Mongeon also become Co-Managing Directors of the Suburban Maryland office and will manage the day-to-day operations of the office and service new and existing clients. Craft also becomes Director of Commercial Property Management, and Lynch becomes Director of Residential Management. Jack McShea's and Dickman's responsibilities will include client relations, new business development and brokerage transactions.

"We are very excited about the acquisition of McShea & Company, Inc. The acquisition of this highly regarded company represents the next step in our expansion strategy and will serve to create a deeper local presence in our rapidly growing DC Metro Region," Avison Young CEO Mark Rose said. "Tim, Jack, Len and the whole organization have a collaborative culture consistent with Avison Young's philosophy; our firms are an excellent fit culturally. Moreover, this acquisition is another example of a highly regarded independent firm that was heavily pursued by others, but recognized Avison Young's culture and structure as the right home for their clients and employees."

"We are thrilled to be joining a firm that places such a strong emphasis on being client-centric and culture-driven, and I am confident that our team's industry relationships and experience will support the company's growth objectives in the Washington, DC area," added Jack McShea. "We are looking forward to our new venture and working in this expanded platform with like-minded individuals."

For more news and information visit Blumberg Capital Partners.

Clarion Sells Mexican Industrial Portfolio for $202M

Clarion Partners announced this week that it had sold a Mexico-based industrial portfolio to FIBRA Uno, a Mexican public REIT, for $202 million. The portfolio includes 22 industrial buildings and four land reserves containing a total of 67 acres. FIBRA Uno, was Mexico's first public REIT to list on the Mexican stock exchange in 2011 and is the largest of its kind by market capitalization, according to a GlobeSt.com article. Grupo Garza Ponce, a Mexican real estate developer and Clarion Partners' joint venture partner in the portfolio, contributed six additional properties to bring the combined sale value to $275 million. Full terms of the deal were not disclosed.

"Rising manufacturing costs in China and investor-friendly legislation in Mexico is encouraging tech, apparel and auto manufacturing firms to 're-shore' production, which in turn has boosted demand for industrial real estate," observed Alejandro Cuadros, a Vice President at Clarion Partners and head of the transaction team. "This strategic sale is typical of Clarion's active portfolio management approach."

Nineteen tenants, including U.S., Mexican and international companies, occupy 91% of the portfolio's 2.8 MM square feet of NRA across five metropolitan areas: Monterrey, Saltillo, Reynosa, Ciudad Juarez and San Luis Potosí. The properties are strategically located to take advantage of proximity to key cross-border supply chain networks as well as Mexico's favorable demographics.

For more news and information visit Blumberg Capital Partners.

Amazon Opening Another Fulfillment Center in Moreno Valley

Amazon announced this week that it has plans to open its fourth fulfillment center in California, which would create more than 1,000 jobs at the new site in Moreno Valley. The Seattle-based online retail giant is close to finalizing plans for a fulfillment center expected to open in a year, Mike Roth, vice president of Amazon’s North America operations, said at a grand opening for the company’s San Bernardino logistics center on Tuesday morning. The 1.2 million square-foot fulfillment center is being built by Trammell Crow Company and Clarion Partners in a joint venture.

As of Sept. 30, Amazon had 96 fulfillment centers worldwide. According to a Los Angeles Times article, the new fulfillment center, some 20 miles away from San Bernardino, will also be home next year to a 935,000-square-foot distribution center run by grocery chain Aldi.

"We are excited to grow our presence in the great state of California, bringing more than 1,000 new full-time jobs to Moreno Valley to join the thousands of Californians we employ currently in our fulfillment centers in Patterson, San Bernardino and Tracy," said Roth. "Amazon's fulfillment center positions are full-time jobs that offer competitive wages, benefits, company stock awards, 401(k) and programs like Career Choice where Amazon will pre-pay the cost of tuition for employees to go back to school. We look forward to joining the community."

"The innovative spirit of Amazon fits well with the creative and entrepreneurial environment in California," said California Governor Edmund G. Brown Jr. "The investment today means hundreds of new jobs in the Inland Empire."

For more news and information visit Blumberg Capital Partners.

China Investing in US Distressed Properties

A new article from the Wall Street Journal titled China Moves to U.S. Projects examines the increase of China-based investors taking on distressed properties in U.S. cities. Some notable recent transactions include: Dongdu International bought two of Detroit's better-known buildings, including the former home of the Detroit Free Press, for $13.6 million; Beijing's HNA Property Holdings, a subsidiary of a Chinese airline, bought New York's Cassa Hotel in 2011 for $130 million; Fosun International Ltd. purchased One Chase Manhattan Plaza for $725 million; and earlier this year, billionaire Zhang Xin bought a stake in the General Motors building overlooking Central Park, in a deal that valued the tower at $3.4 billion.

An excerpt from the article follows:

The discounted prices on distressed U.S. real estate offers "a once in a lifetime opportunity," says Zhang Mingeng, chairman of Grand China Fund, which manages yuan-denominated funds investing $4 billion in Chinese real estate and a $60 million dollar-denominated fund investing in the U.S.

Overall Chinese investment in U.S. property has risen sharply this year as Beijing has encouraged companies to diversify and spend foreign capital reserves. Chinese property deals in the U.S. already have reached $1.7 billion in 2013, up from $1.1 billion in 2011, according to Real Capital.

For more news and information visit Blumberg Capital Partners.

Northstar CP Buys Office Complex

Denver-based Northstar Commercial Partners announced earlier this week that it had acquired an 199,418 square-foot office complex in Lakewood, Colorado for $4 million, or $20 per square foot. Northstar purchased the two-building complex from Hub Properties Trust c/o Reit Management & Research out of Ohio. Northstar is calling it "the largest block of contiguous office space in a stand-alone building in the entire metro Denver area," according to a Denver Business Journal article. HFF LLP's Mary Sullivan, John Jugl Jr. and Chris Crawford represented the seller in the transaction.

"We bought this because there are several large tenants in the market place now," said Brian Watson, founder and president of Northstar Commercial Partners in a statement. "This is one of just a few opportunities to be able to accommodate them and their needs."

The complex at 3840 S. Wadsworth Boulevard is currently vacant, but has previously been the home of Gateway Computers, Raytheon, Martin Marietta, Merrill Lynch and most recently Lockheed Martin, which vacated the property in the first quarter. "It's always been for a single tenant," said Watson of the complex, with one building measuring 59,426 square feet and the main one at 139,992 square feet. "It's just the way the buildings are laid out."

For more news and information visit Blumberg Capital Partners.

Kimco Buying $270M New England Portfolio

Kimco Realty Corp., a New Hyde Park, N.Y.-based real estate investment trust (REIT), announced that it had entered into an agreement to acquire a 24-property New England portfolio for $270 million, including the assumption f $121.5 million of mortgage debt. HFF, led by senior managing director Jim Koury, marketed the portfolio exclusively on behalf of the unnamed seller. The 24-property New England portfolio features a diverse tenant mix that fits Kimco's focus on grocery, necessity-based and discount retail anchored by strong brands.

David Henry, Kimco's president and CEO said, "This acquisition is in line with our communicated strategy of focusing on key territories which boast solid demographics and growth potential. The assets are largely located in the high barrier to entry Boston market with attractive infill locations and a large consumer base."

The 24 properties are 96% leased and will add 1.4 million square feet to the Kimco portfolio. As part of the sale, Kimco will gain 17 properties in the Boston metropolitan market with anchor tenants including Whole Foods, Trader Joe's, Lowes, Kohl's, Petco, Pier 1 Imports, Aldi Supermarket, CVS and Walgreens. Kimco, which owned 874 shopping centers across North and South America as of June, has been divesting noncore properties and scooping up ones in more strategic locations across the U.S. in order to return value to investors, according to a Newsday article.

For more news and information visit Blumberg Capital Partners.

Invesco Acquires SSF Logistics Center

Invesco Real Estate has purchased the SSF Logistics Center in South San Francisco from a partnership of New York City-based Angelo Gordon & Co., Lafayette-based Orchard Partners and Chicago-based Centrum Properties. The property was brought to the market for sale in May, and brokered by Cassidy Turley/BT Commercial. While the terms of the deal and final sale price were not disclosed, industry sources say the property would have sold for around $120 million, according to a report from The Registry.

"The team of Orchard, Cassidy Turley and Centrum brought to bear decades of industrial investment, leasing, entitlement, construction and management expertise, as well as deep locale market relationships and perspectives, on this project. Following a yearlong re-entitlement and redesign for a major logistics company, we are thrilled to consummate this sale to Invesco," said Steve White, a managing director with Angelo Gordon in a prepared statement.

"SSF Logistics Center has been thoughtfully conceived, and on a fully renovated basis has been transformed to a state-of-the-art logistics facility. This is something rarely found on the Peninsula," says Tyler Higgins, managing partner of Orchard Partners.

The SSF Logistics Center has two separate buildings covering 26 acres located along the west side of 101 and north of US 380 at 1070 San Mateo Avenue. The 453,076 square-foot warehouse building is 93% leased to Federal Express with a recently signed lease that expires in 15 years with two five-year extension options, with the General Services Administration taking up the remainder of the building for the Drug Enforcement Administration. The second 9,240 square foot building offers retail/cafe/business services space and is currently under construction, with an expected delivery date sometime this December.

For more news and information visit Blumberg Capital Partners.