Thursday, February 28, 2013

Lodging Enterprises Sold to AHIP for $127M

Kansas-based Lodging Enterprises has been sold to American Hotel Income Properties REIT LP (AHIP), led by Canadian hotel veteran Rob O’Neill of Vancouver, B.C., for $127 million. Jones Lang LaSalle’s Hotels & Hospitality Group arranged the sale, led by managing directors Al Calhoun and Mark Fair. Terms of the deal were not disclosed, but AHIP did note that Lodging Enterprises will continue to manage the hotels.

American Hotel Income Properties REIT, launched its initial public offering last month raising nearly $86 million. The offering was underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc., and included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Burgeonvest Bick Securities Limited and Haywood Securities Inc.

Robert O'Neill, Chief Executive Officer of AHIP, commented that, "We are excited about the initial public offering of American Hotel Income Properties REIT LP. The initial portfolio of hotel properties represents a unique and stable platform upon which we intend to further develop AHIP's considerable potential."

Lodging Enterprises owns and operates 32 proprietary branded hotels in 19 states and 24 proprietary branded diners. The sale also includes a large development pipeline of hotels under construction and long-term guaranteed room night contracts with three of the largest Class I U.S. freight railroad companies, according to a Hotels Magazine report. The hotel properties have agreements with several of the largest U.S. railroad operators, Union Pacific Corp., Burlington Northern Santa Fe LLC and CSX Corp., as well as Canadian Pacific Railway Limited, to provide lodging accommodations for railroad employees under contracts stipulating guaranteed minimum occupancies, which provide the REIT with recurring revenue, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

Wednesday, February 27, 2013

Colonial Place Buildings in Tampa Sold for $56M

Raleigh, North Carolina-based Highwoods Properties, a publicly traded real estate investment trust (REIT), announced this week that it had purchased Colonial Place I and II in Tampa, Florida for $56 million. While the seller's information was not disclosed, CBRE is known to have marketed Colonial Place I and II for lease.

Ed Fritsch, President and CEO of Highwoods Properties, said, "This acquisition further enhances the strength of our position in the highly desirable Westshore submarket where the majority of our Tampa assets are concentrated. It also creates the opportunity for value-creation through growing occupancy. We are also excited about "Highwoodtizing" and repositioning these assets, as we did with 4200 Cypress where we spent $2.4 million in building improvements, and rebranding this entire block in Westshore with our approximately 1,300 linear feet of frontage on I-275. This transaction is immediately accretive to FFO and reflects the synergies that will be achieved among these three properties through the sharing of staffing, procurement and parking resources."

The Class A office properties were 87% leased at the time of sale and include 371,726 rentable square feet of space with an adjacent covered parking garage. Highwoods noted that it will rebrand the two Colonial Place assets, along with 4200 Cypress, as Meridian One, Two and Three. According to a Triangle Business Journal article, Highwoods assumed no new debt in connection with the deal. It is funding the acquisition with proceeds from its ATM program, proceeds from its recent sale of other buildings, and borrowings under its revolving credit facility.

For more news and information visit Blumberg Capital Partners.

Tuesday, February 26, 2013

TPG Acquires ALC for $275M

Assisted Living Concepts (ALC),which operates 210 seniors living communities in 20 states, has entered into a definitive agreement to be acquired by TPG, a private investment firm. The total purchase price is about $275 million, according to a Wall Street Journal report. Under the terms of the agreement, ALC stockholders will receive $12.00 in cash for each share of Class A common stock. Citigroup Global Markets were Assisted Living's financial advisors while Goldman Sachs & Co advised TPG.

"We are very pleased with the transaction," Mel Rhinelander, chairman of the special committee set up by ALC's board, said in a statement. "The acquisition represents a significant premium for our shareholders, and we also believe that TPG will help continue ALC's focus on high quality service and care for our residents."

ALC's occupancy rates average around 62%, compared with a national average of about 90%, according to people familiar with the company. Tripp Levy PLLC, a national law firm that specializes in mergers & acquisitions, announced this week that it has been retained to represent shareholders of Assisted Living Concepts in an investigation concerning whether the board of directors of ALC engaged in a full and fair auction for the company obtaining the highest price possible for shareholders while not obtaining personal benefits for themselves in selling to this investment firm at this price. ALC is controlled by Thornridge Holdings, a private Canadian company.

For more news and information visit Blumberg Capital Partners.

Hartz Sells Secaucus Industrial Property for $18.4M

Hartz Mountain Real Estate has closed the sale of 2 Emerson Lane in Secaucus, New Jersey with CoreSite Realty Corporation taking the leasehold interest in the industrial facility for $18.4 million. HFF's investment sales team, led by managing director Michael Nachamkin, represented Hartz in the transaction.

CoreSite Realty Corporation is the data center service provider chosen by more than 750 of the world's leading carriers and mobile operators, content and cloud providers, media and entertainment companies, and global enterprises to run their performance-sensitive applications and to connect and do business. CoreSite announced last month that it was under contract to acquire the 283,215 square-foot facility and would develop a new data center campus at the location, expecting to offer up to 18 critical megawatts of capacity. The currently-vacant two-story industrial property has office and showroom space plus a six-story, 634-space parking garage.

"CoreSite's entry into Secaucus is an important step in the execution of our strategy to extend our U.S. platform supporting latency-sensitive customer applications in network-dense, cloud-enabled data center campuses," said Tom Ray, President and Chief Executive Officer, CoreSite. "Our New York campus is designed to meet performance-sensitive customer requirements supported by our location at the nexus of robust, protected, low-latency network rings serving Manhattan as well as global cable routes to Chicago, Frankfurt, London, and Brazil. Additionally, customers are able to directly connect to service nodes for Amazon Web Services Direct Connect."

For more news and information visit Blumberg Capital Partners.

Friday, February 22, 2013

Eastern Union Funding Arranges $70M Financing in Brooklyn

Eastern Union Funding, a full service commercial real estate company, announced that it had arranged approximately $70 million in financing for commercial real estate properties in Brooklyn, New York. For almost every property type, there's a bank today," said Ira Zlotowitz, president of Eastern Union Funding.

Select transactions include:

• $20 million to refinance a mixed-use property in Brooklyn, on a seven-year term at 3.75% and 30-year amortization.

• $19 million to refinance a four-building multifamily portfolio in Brooklyn on a 5+5-year term, starting at 3.25%, and 30-year amortization.

• $6.3 million to refinance a 24-unit multi-family property on Goodwin Street in Brooklyn, on a 10-year term at 4% and 30-year amortization.

"Pre-2008 we were doing a lot of condos, and land prices were elevated and the cost of construction to build them was high," said Abraham Bergman, a managing partner and co-founder at Eastern Union Funding, in a New York Times article. "But when you look at a new project today, the land has been recently purchased and it is being viewed in today's dollars so it makes a lot more sense."

For more news and information visit Blumberg Capital Partners.

Thursday, February 21, 2013

City Center Picks Up Downtown Minneapolis Office

City Center Realty Partners, in a partnership with investment advisor Angelo, Gordon & Co., announced this week that it had acquired a 320,000 square foot office building in downtown Minneapolis. Carlson Real Estate sold the Plaza Seven office building at 45 Seventh St. S. for an undisclosed sum, and the terms of the deal are unknown. The Minneapolis/St. Paul Business Journal noted that the deal for Plaza Seven is somewhat unusual because it involved"condo-ing" the office portion of the building separately from the Radisson Hotel that occupies the lower 16-stories of the tower.

"City Center Realty Partners is thrilled to add this prime property to our growing portfolio of assets throughout the country," said Sigurd Anderson, Founding Partner with CCRP. Brent Robertson and Jon Dahl, brokers at Jones Lang LaSalle, were handling leasing for Carlson at the tower and are expected to retain that work after the sale. JLL's Minneapolis office is in Plaza Seven.

For more news and information visit Blumberg Capital Partners.

Wednesday, February 20, 2013

Midwest Distribution Portfolio Sold for $99.5M

Welsh Property Trust has purchased a five-building distribution portfolio from KTR Capital Partners, a real estate private equity fund manager and operating company headquartered in New York, for $99.5 million. Jones Lang LaSalle represented KTR in the transaction. Terms of the deal were not disclosed.

"This offering represented a rare opportunity for Welsh Property Trust to acquire five debt-free, newer built industrial facilities in one transaction – one that will allow them to complement their existing portfolio and provide an immediate presence in primary distribution markets," said Jones Lang LaSalle's International Director John Huguenard. "The portfolio has been extremely well maintained by committed institutional ownership and requires minimal capital improvement in the near term. Coupled with below-market rental rates, upside potential is significant."

The five buildings, constructed between 2006 and 2007, were 94% leased at the time of sale to six tenants. The buildings are located at:

For more news and information visit Blumberg Capital Partners.

Tuesday, February 19, 2013

Park Avenue Medical Arts Center Sold for $11.5M

Simone Healthcare Development Group, a division of Simone Development Companies, announced this week that it has acquired the Park Avenue Medical Arts Center in New York for $11.5 million. S&H 88th Street Associates sold the property with representation from Corcoran Wexler Healthcare Properties’ Paul Wexler and Edward Midgley, Timothy Sheehan and Daniel Kaplan of CBRE, with Wexler also representing Simone in the deal.

"Simone Healthcare Development is happy to announce the acquisition of this prime Upper East Side location as we continue to expand our medical office space portfolio throughout the greater New York metropolitan area," said Joseph Kelleher, president of Simone Healthcare Development. "Simone Healthcare excels at creating state-of-the-art medical facilities for our own portfolio and in partnership with leading healthcare providers."

"Large blocks of medical space are hard to come by on the Upper East Side," said Paul Wexler, President of Corcoran Wexler. "The new owner will be renovating the space and retrofitting offices for the specific needs of new medical tenants. The space can be divided into a variety of different unit configurations. This provides a unique opportunity for doctors to obtain coveted large renovated spaces, in a luxury building in a prime Upper East Side location."

Located at 62 E. 88th Street, the Park Avenue Medical Arts Center is a commercial condominium, with a private entrance from residences. Developed in 1986, the 15-story building contains 18 residential units plus the medical condominium space. Corcoran Wexler has been retained as exclusive leasing agent for the medical space by the new owner.

For more news and information visit Blumberg Capital Partners.

Monday, February 18, 2013

MB Healthcare Acquires Two Michigan MOB Properties

MB Real Estate Healthcare Group, an operating division of MB Real Estate, announced this week that it had acquired two new medical office buildings (MOBs) in Grand Rapids, Michigan. The purchase prices, seller names and transaction details were not disclosed.

"We're obviously focused on and confident about medical real estate as a whole, but what attracted us to these properties is their strong tenancy which includes Spectrum Health and Grand Valley Health Plan," said Peter Westmeyer, principal of the MB's healthcare investment team. "Additionally, the fundamental strength of Grand Rapids' economy and growing health sector really attracted us to the area and the opportunity."

The first property is a two building, 111,758 square foot multi-tenant complex at 1000 E. Paris SE in Grand Rapids. Anchored by Spectrum Health, a not-for-profit health system located in West Michigan, the property is also occupied by multiple physician groups and Grand River Cardiology, which is affiliated with St. Mary's, the second largest hospital system in the area. The second property is a 56,043 square foot medical office building attached to the Orthopedic Associates of Michigan Centers of Excellence Campus at 2680 Leonard Street NE in Grand Rapids. The MOB is occupied by Grand Valley Health Corporation, including the Grand Valley Surgical Center.

For more news and information visit Blumberg Capital Partners.

Thursday, February 14, 2013

Vornado Selling San Jose Power Center for $203M

Vornado Realty Trust, a fully integrated equity real estate investment trust, announced this week that it had entered into an agreement to sell The Plant, a power strip shopping center in San Jose, CA, to Cole Credit Property Trust IV for $203 million. Vornado bought The Plant retail complex for an estimated $120 million to $150 million in 2010, according to public records and sources familiar with the commercial property market in the area.

"There are way more buyers than there are quality retail properties to buy," said David Taxin, a partner with Meacham/Oppenheimer, a commercial realty firm that specializes in the retail market, regarding the sale in a San Jose Mercury News article. "We are seeing multiple offers for any retail property that hits the market that is decent."

The 643,000 square foot retail property is at the northwest corner of Monterey Road and Curtner Avenue, with anchors that include Best Buy, Target and Toys 'R' Us. Since some of the retailers own their own space, Cole Credit Property Trust IV is buying only 510,000 square feet. The sale, which is subject to customary closing conditions, is expected to be completed by the second quarter of 2013.

For more news and information visit Blumberg Capital Partners.

Wednesday, February 13, 2013

IBS Launches $350M Real Estate Fund

IBS Investment Bank, a private investment firm based in Fort Lauderdale, FL and a division of Institutional Banking Services, announced this week that it had commenced its $350 million open-ended IBS Debt Ventures Fund IV. Backed by seven major institutional investors, the fund was formed to invest in real estate, mostly in distressed situations, according to a South Florida Business Journal report. The portfolio will consist primarily of debt and equity interests in distressed commercial property, commercial mortgages, commercial mortgage-backed securities, and the debt and equity securities of real estate operating companies on a global basis, with a primary focus on providing bridge financing in the U.S.

"We think we have a unique business model. We have built a dedicated boutique platform which is backed by resources that are highly respected in the marketplace," IBS chairman and chief executive officer Jason Jackson told reporters.

IBS's other affiliates include an insurance agency, a real estate brokerage, and accounts receivable management. IBS Investment Bank specializes in direct investments in small to middle market businesses with annual sales of $5 million to $300 million.

For more news and information visit Blumberg Capital Partners.

Tuesday, February 12, 2013

CAPTRUST Tower in Raleigh Sold for $98.4M

CAPTRUST TowerNewport Beach-based KBS Realty Advisors has acquired CAPTRUST Tower, a 300,389-square-foot office and retail building in the North Hills area of Raleigh, North Carolina for $98.4 million. KBS purchased the property from a joint venture partnership between the Indianapolis-based real estate investment trust Duke Realty and the Raleigh-based real estate development firm Kane Realty.

"CAPTRUST Tower is the best project in Raleigh and has leased faster and at higher rents than any other office project," said Charles Schreiber, chief executive officer of KBS Realty Advisors. "We've been focused on Raleigh and specifically CAPTRUST Tower due to the quality master-plan and the maturity of the mix of uses already in-place and planned."

CAPTRUST Tower at 4208 Six Forks Road is the first office high-rise to be built in the North Hills mixed-use development and is suburban Raleigh's tallest building. Within the 17-story building, there are nine stories of premier office space atop a 750-car parking structure designed over 26,000 square feet of retail space. Office space in the building totals almost 275,000 square feet. Developed by Duke Realty and Kane Realty in 2009, Kane will continue to have an ownership interest in the project through the joint-venture formed with KBS, according to a High Rise Facilities article. The property was 95% leased at the time of sale to 18 tenants, including CAPTRUST Financial Advisors, the American Board of Anesthesiology, Regus, RBC Capital Markets and other national and regional tenants.

For more news and information visit Blumberg Capital Partners.

Monday, February 11, 2013

Long Island City Industrial Building Sold for $40.7M

4725-34 Associates LLC sold an industrial building in Long Island City, New York for $40.7 million this month. Two tenants-in-common entities, managed by BLDG Management, purchased the property at 47-25 34th Street. RFK's investment sales and advisory service team of Jeff Fishman, president, Brian Segall, senior director, Robert Goldman, analyst, and David Abrams, associate, represented both the buyer and the seller in the transaction.

"The recent surge in residential and hotel development in Long Island City has created a squeeze on the availability of prime industrial space," said Jeff Fishman. "This is evidenced by the impressive tenant roster in this high-quality industrial building."

Originally built in 1924, the 322,390 square-foot industrial building stands three stories tall on a 126,333 square-foot lot. Current tenants include Polo Ralph Lauren, Gander and White, and Eleni's Bakery.

For more news and information visit Blumberg Capital Partners.

Friday, February 8, 2013

Blackstone Buying Majority Interest in 40-Property JV Portfolio

Kimco Realty Corporation, a real estate investment trust (REIT) headquartered in New Hyde Park, New York, announced via the company's Q4 2012 Kimco Realty Corp Earnings Conference Call this week that Blackstone Group would be buying a majority interest in a 40-location portfolio or shopping centers that is co-owned by Kimco and UBS AB. According to the call, UBS will sell its controlling interest to Blackstone for $1.1 billion. The private-equity company will pay roughly $274 million in cash and assume $463 million of debt for a two-thirds stake in the properties, which are concentrated in the metropolitan areas of New York, Washington, D.C., San Francisco and San Diego, reported the Wall Street Journal.

The centers are "very high quality assets," David Henry, Kimco's president and chief executive, said during the call to discuss Kimco's fourth-quarter financial results with investors. "During the quarter, Blackstone signed a definitive agreement with UBS Wealth Management North American Property Fund to purchase their equity interest in two large Kimco-managed UBS retail joint ventures, encompassing 40 high-quality shopping centers containing approximately 5.6 million square feet," Henry, said during the call.

The 5.7 million square-foot portfolio was 96.1% leased at the end of 2012, with about $692 million in debt on the properties, according to a filing (KIM) by Kimco. Kimco owns stakes in 896 shopping centers globally.

For more news and information visit Blumberg Capital Partners.

Thursday, February 7, 2013

Metropolitan Midtown Sold for $94M

Colonial Properties Trust announced this week that it had sold Metropolitan Midtown, a mixed-use project in Charlotte, North Carolina, for $94.4 million. In the cash deal, an institutional investor advised by JPMorgan Asset Management purchased the development for $276 per square foot. Ryan Clutter, Christopher Decoufle, Mike Burkard and Patrick Gildea of CBRE represented Colonial, according to a CoStar report.

Metropolitan Midtown opened in 2008, developed by Colonial with Pappas Properties and and Collett & Associates, and includes 170,000 square feet of office space and 172,000 square feet of retail space. Anchored by Target, Marshall's, Best Buy and Staples, the property at 1225 Baxter St. was 93.5% leased as of December 31, 2012.

For more news and information visit Blumberg Capital Partners.

Wednesday, February 6, 2013

Thor Equities Purchases Meatpacking District Building for $96M

A joint venture between Thor Equities and ASB Real Estate Investments' Allegiance Real Estate Fund have purchased 875 Washington Street from Scoop NYC for $96.5 million. The 60,000 square foot building in Manhattan's Meatpacking District offers 10,600 square feet of retail space on two levels. The retail space is currently home to Bond No. 9, Paige Premium Denim, and SCOOP, according to a press release from the two companies, and is in close proximity to The Standard Hotel, Christian Louboutin, Diane Von Furstenberg, STK, Apple store, and the future downtown home of the Whitney Museum, reports The Commercial Observer.

The Meatpacking District is the place to be in the fashion world, and as purveyors of high-end retail real estate, it is only fitting that we continue to expand our presence here," said Joseph Sitt, CEO at Thor Equities, in a statement. "Situated among many of the world's best nightlife, dining, and shopping outposts, 875 Washington is truly in the heart of the excitement and growth of Manhattan."

Robert Bellinger, president and CEO of ASB Real Estate Investments, said, "The Meatpacking District has experienced a massive transformation over the last 10 years, becoming a top destination for culture, art, high-end residential, entertainment, business and hotel development. This investment fits with ASB's strategy to acquire competitively positioned office and high-street retail properties with high NOI growth potential and strong demographic underpinnings."

For more news and information visit Blumberg Capital Partners.

Tuesday, February 5, 2013

KBS REIT III Purchases RBC Plaza for $118M

KBS Real Estate Investment Trust III announced this week that it had acquired RBC Plaza, a 40-story building that contains 609,368 square feet of office space and 68,677 square feet of retail and amenity space above an underground parking structure. The full contract price for the sale was reported at $126.5 million, according to a CoStar report. Tom O'Brien and Terry Kingston with Cushman & Wakefield / NorthMarq, along with Mike Winn and Tim Richey with Cushman & Wakefield / Denver, represented the seller, Brookfield Office Properties. KBS Realty Advisors handled the acquisition in-house.

"Brookfield, the seller, has done a wonderful job of running the asset, however the pending closing of one of the anchor retailers provides an exciting opportunity to rethink the four-story retail section of this project," said Rodney Richerson, KBS regional president. "We believe we have a great opportunity to convert some of the upper-level retail floors into creative office space, along with creating a primary entrance off of Nicollet Mall and improving the overall retail mix. In addition to these improvements, we anticipate adding stronger office amenities, conference rooms, a fitness facility and some lobby renovations that will cost approximately $3 million dollars."

RBC Plaza is a 678,045-square-foot mixed-use property in downtown Minneapolis located at 60 South 6th Street. The building is strategically located in Minneapolis' financial district along Nicollet Mall, downtown's most popular and well-known shopping district. Built in 1991, the building was 83% leased to 34 tenants who pay a total of about $8.6 million in rent annually, as of January 1. Tenants include RBC Wealth Management, Marquette Financial Companies, and Fish & Richardson. KBS plans to invest approximately $26.6 million in renovations over the next four years, which will include converting about 32,000 square feet of retail space into office space, KBS said in its SEC filing.

For more news and information visit Blumberg Capital Partners.

Monday, February 4, 2013

JV Acquires Chandlers Crossing Portfolio for $101.7M

A joint venture between The Woodlark Companies, Westpac Campus and an institutional investor has acquired a Michigan-based Chandlers Crossing Communities portfolio for $101.75 million. For the transaction, Woodlark executed an $85 million debt placement with JP Morgan Chase. Woodlark will manage the properties and said it will position the assets to offer modern renovations and premium enhancements.

Chandlers Crossing is comprised of The Village with 1068 beds, The Club with 768 beds and The Landing with 936 beds, all serving students attending Michigan State University. The Woodlark Companies will invest $9 million to make improvements, including unit upgrades, to all of the apartments.

For more news and information visit Blumberg Capital Partners.