Blackstone's Equity Office Buys Vegas' Hughes Center for $347M

An affiliate of the Blackstone Group, Equity Office Properties, announced the acquisition of the Hughes Center complex in Las Vegas, Nevada for $347 million. The property was sold by Crescent Real Estate Holdings LLC, a joint venture of Barclays Plc's Barclays Capital unit and Goff Capital Partners LP, based in Fort Worth, Texas. According to a CoStar report, Blackstone acquired the prominent property for $347 million through its global fund, Blackstone Real Estate Partners VII. HFF, led by the team of Executive Managing Director Mark Gibson, Executive Managing Director Scott Galloway and Senior Managing Director Dan Cashdan, represented the seller. Blackstone was self-represented, according to a Commercial Property Executive article.

"We see this as a tremendous opportunity to add value, both from a market entry standpoint and with our commitment to operate these buildings at the same high level as the balance of the Equity Office portfolio," said Frank Campbell, Managing Director, Southern California for Equity Office. "This acquisition is supported by the financial strength of Blackstone which will position the real estate to perform well as the market improves."

The Hughes Center covers roughly 1.5 million square feet and includes office space, a hotel, restaurants and corporate residential facilities, as well as three undeveloped parcels, according to the Equity Office website. Located along Howard Hughes Parkway between Flamingo Road and Sands Avenue, major tenants at the time of sale included Gordon Silver, Ameristar, Wells Fargo Bank, Venetian, Boyd Gaming, Snell & Wilmer, and Lewis and Roca L.L.P. Restaurants include restaurants Del Frisco's, Lawry's Prime Rib, Fogo de Chao, Bahama Breeze, Gordon Biersch Brewery and McCormick & Schmick.

For more news and information visit Blumberg Capital Partners.

MRC Provides $31M for Brooklyn Office Building

Madison Realty Capital, a CRE investment firm founded in 2004, announced this week that it had provided $21 million in acquisition financing and a conditional commitment for $10 million in construction financing for an eight-story warehouse building, a one-story industrial building and a parking lot separating the two properties. Alan Shmaruk and Michael Sherman of the Soho-based Manhattes Group represented both the seller, 29 Ryerson Street LLC, and the purchaser 11-45 Ryerson Holdings LLC, in the transaction, according to a Real Estate Weekly article. The property had been owned for decades by 29 Ryerson Street LLC, an entity whose principal also controls the sole occupant of the building, a storage outfit called Total Records, according to a Crains report. The Manhattes Group will handle the leasing of the property.

"It is extremely rare a property of this size becomes available within striking distance of Manhattan. It presents an excellent opportunity for conversion to an office building, where the current demand for is greater than the supply. Due to multiple parties bidding on the property, we were pleased to achieve a price over asking," said Shmaruk, a principal at Manhattes Group.

The approximately 214,710 square-foot property, which was built in 1951, is currently being utilized as a storage warehouse. The borrower intends to renovate the building into Class A office space and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO. In addition to the office space, the property contains approximately 70 feet of frontage on Flushing Avenue. The space will be able to capitalize on the growing retail demand on Flushing Avenue due to the high foot traffic driven by the nearby office and residential buildings.

For more news and information visit Blumberg Capital Partners.

SF's Ghirardelli Square Sold to Jamestown

The retail portion of San Francisco's Ghirardelli Square was sold this week as Jamestown, an Atlanta-based investment firm, picked up the property for a reported $54 million. The 12-building, 101,258-square-foot retail center in the Fisherman's Wharf District of San Francisco generated more than 30 offers when it came to market. Holliday Fenoglio Fowler's San Francisco office represented the seller, Ghirardelli Acquisition Co., in the transaction; Jamestown's representation was undisclosed, but press releases note that they purchased the complex free and clear of existing financing. The property, which was once the home of Ghirardelli chocolate company's production facilities, was 55% occupied at the time of sale.

Jamestown, which owns Chelsea Market in Manhattan and Ponce City Market in Atlanta, announced that it plans to invest $15 million to revive the property. "Ghirardelli Square is an American icon," Jamestown COO Michael Phillips said in an interview. The firm is hoping for a restaurant-leasing revival mirroring the square's 1990s heyday, when it attracted diners including football stars Joe Montana and Jerry Rice, Phillips said. "Food focus is part of our company culture."

"The world-renowned brand identity coupled with the irreplaceable location and remarkable demand drivers, including up to 16,000 people walking through the square every day, are just a few reasons that make this retail center so unique and special. Consequently, the competition was nothing short of fierce - we had over 200 interested parties and conducted more than 60 tours. Needless to say, this asset has incredible upside potential. I have no doubt Jamestown will turn this already special project into something even more spectacular over the next few years," said HFF's Nicholas Bicardo.

For more news and information visit Blumberg Capital Partners.

New Leasing Opportunities at One World Trade Center

The Durst Organization, a joint venture partner with the Port Authority of New York and New Jersey overseeing construction, leasing, and management of One World Trade Center, announced this week that it will lease 94,000 square feet of the 3-million-square-foot tower for smaller office tenants. Two floors of the iconic tower — located on the 45th and 46th floors — are being set aside as part of a prebuilt/build-to-suit program that offers spaces subdivided into smaller increments ranging between 2,000 and 20,000 square feet each.

"There is demand, from across the globe, from large multinational companies to establish a presence at One World Trade Center," said Eric Engelhardt, Vice President, Director of Leasing at One WTC for The Durst Organization, in a press release. "These potential users need a New York flagship at a building with a globally recognized address that speaks to their international reach and prestige."

The build-to-suit initiative offers customized construction and finishes to meet specific tenant configurations. Ownership will begin construction of the prebuilt spaces in early 2014. The spaces will be available for occupancy January 1, 2015. Cushman & Wakefield, in conjunction with The Durst Organization, is conducting the global marketing campaign in support of the building. The Cushman & Wakefield team is led by executive vice chairman Tara Stacom.

One World Trade Center is currently around 55% leased, with major tenants including Condé Nast, Beijing Vantone Real Estate and the U.S. General Services Administration. Legends Hospitality Group will operate the building's public observation deck, set to open in 2015.

For more news and information visit Blumberg Capital Partners.

One Liberty Picks Up Four Properties for $54.1M

One Liberty Properties, a New York-based real estate investment trust, announced this week that it had completed the acquisition of four new properties for a total of $54.1 million. In order to close the acquisitions, One Liberty borrowed $23.5 million from its credit facility, which reportedly represents the current balance outstanding under its $75 million facility. The properties include:

- An approximately 700,000 square foot industrial facility located in Fort Mill, South Carolina, purchased for $39.2 million. The building serves as a principal distribution center for Northern Tool & Equipment Company, which has a lease on the property through April 2029.

- A 125,600 square foot distribution facility in Indianapolis, Indiana for approximately $9.7 million. The building is leased to FedEx until February 2023.

- Two restaurants: one in Ann Arbor, Michigan for $2.98 million, and another in Myrtle Beach, South Carolina for $2.64 million. The Ann Arbor property is leased until March 2027 and the Myrtle Beach location expires in February 2023.

One Liberty estimates that the rental income in 2014 from these four properties will be approximately $4.08 million. Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty, stated, "The closings of these transactions further exemplifies the continued execution of our strategy to selectively identify and add valuable assets to our portfolio. With approximately $101.3 million of successful acquisitions since the beginning of 2013, One Liberty is building on the initiatives we implemented to drive rental income, cash flow and to increase stockholder value in the years to come."

For more news and information visit Blumberg Capital Partners.

Google Buys Mountain View Offices for $235M

In another big commercial real estate play, Google has made its largest purchase so far this year with the acquisition of a six-building portfolio in Mountain View, California for $235 million. Symantec, the popular software security firm, is currently leasing two of the buildings, where they will remain until their lease expires with Google serving as landlord. Google purchased the buildings from Equity Office, which acquired the properties when its parent, the Blackstone Group, acquired CarrAmerica Realty Corp. in 2006. As reported by the Silicon Valley Business Journal, the properties include:

- Mountain View Technology Center a 131,500-square-foot, two-building project at 313 and 323 Fairchild Drive, for which Google paid $82.2 million, or $625 per square foot.

- Gateway Center, a 236,400-square-foot project at 401 Ellis St. and 500 E. Middlefield Drive. Google paid $138.8 million, or $587 per square foot.

- 485 and 495 Clyde Ave., a pair of R&D buildings totaling 64,800 square feet. Google paid $15 million, or $230 per square foot.

"We haven't seen this kind of growth in a Bay Area tech company before," said Tom Foremski, editor of Silicon Valley Watch, an online site that tracks technology trends in the Bay Area.

"Google is in very-high-growth mode, obviously," said Phil Mahoney, a Cornish & Carey executive vice president who has handled several major leasing deals on behalf of property owners that were leasing offices to Google in Santa Clara County. "They have to put their employees somewhere."

"Google's growth is unique," said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, a market research firm. "The Google search-engine business that's tied to their ads is growing exponentially. Their mobile is growing fast. They need much more staff to code, market and manage what they are doing in advertising, and more offices for those employees."

For more news and information visit Blumberg Capital Partners.

$126M Sale of The Heights at Del Mar

The Heights at Del Mar, a two-building Class A office park in Del Mar Heights, California, was purchased this week by Kilroy Realty Corporation for approximately $126 million. Los Angeles-based Kilroy acquired the campus from Prudential Real Estate, according to brokerage company Cassidy Turley, which represented both the buyer and seller. The Heights at Del Mar is anchored by Neurocrine Biosciences and Knobbe Martens, both of which have long-term commitments in place and combined occupy 94% of the campus.

"The Heights encompasses all the characteristics we seek in an acquisition," said John Kilroy, Jr., Kilroy Realty's Chairman, President and Chief Executive Officer. "It has a strong initial cash return in the mid 6% range, high-quality tenants, strong submarket fundamentals, adjacency to transportation as well as a wide range of retail amenities and the upside potential of additional development. Together, both The Heights and One Paseo will complete our vision of developing a remarkable, urban, mixed-use, live, work and play environment in one of the best and consistently highest demand coastal submarkets of San Diego."

The knowledge-based office and life science campus at 12770-12790 El Camino Real covers 13.8 acres with a total of approximately 219,000 square feet of office space and a subterranean parking structure. The campus also includes a land site that is fully entitled for a state-of-the-art 90,000-square-foot office building to be LEED certified. Cassidy Turley broker Rick Reeder said the next phase of new speculative development in the high-demand Del Mar Heights neighborhood is not expected for three to four years, and the acquisition likely gives Kilroy "a strategic window of opportunity" to meet upcoming demand as the economy continues to improve, according to a San Diego Business Journal article.

For more news and information visit Blumberg Capital Partners.

JV Buys Tempe Office Building for $23.5M

A joint venture between Scottsdale-based Everest Holdings and Chicago-based Walton Street Capital purchased Elliot Corporate Center in Tempe, Arizona for $23.5 million, or $105.20 per foot. The 223,392-square foot office project was sold by ARI - ECC LLC and 28 related companies formed by tenant in common investors headed by the defunct Argus Realty Investors of San Juan Capistrano, California. In November 2004, Business Real Estate Weekly reported the group of tenant in common companies headed by Argus Realty Investors companies paying $32.9 million to acquire the building.

"This transaction is another example of the continued demand for office investment properties in the southeast Valley," Jim Fijan, a broker with CBRE who helped represent the sellers, said in the statement. "Savvy investors recognize the continued strengthening of the market and well-located, well-taken-care-of assets, like Elliot Corporate Center, are going to be well received."

Elliot Corporate Center at 875 E. Elliot Road was built in 1998 in was reportedly 87% leased at the time of sale by two tenants: the University of Phoenix and the Lamson Business College. The Tempe investment is the third for the Walton-Everest venture in the Phoenix area. According to the Business Real Estate Weekly of Arizona, the pair’s first joint venture acquisition took place a year ago with the $6.7 million purchase of a 101,006-square-foot office building within the Thistle Landing business park near 48th Street and Ray Road in Phoenix.

For more news and information visit Blumberg Capital Partners.

JV Acquires 34 Peachtree in Atlanta

A joint venture between Fairlead Commercial Real Estate and The Creations Group announced today that it had acquired the tower at 34 Peachtree in downtown Atlanta. The JV picked up the 30-story tower after it fell into foreclosure on September 3, purchasing the mortgage note for $11.9 million, or $39/square foot, from an investment entity out of Asia. According to a Bisnow report, the prior ownership paid $28.2 million for the property in 2005.

The 282,589-square-foot office tower is currently 66% leased, but Fairlead expects that area tax incentives and the coming street car should boost tenant demand. "We expect to finalize 120k SF in lease transactions in the coming months," said Jeff Shaw, President of Fairlead.

"We are strong believers in the resurgence of downtown and saw the note acquisition as an excellent opportunity to expand the ownership’s position in downtown Atlanta, as well to strategically invest in areas of growth," added John Ward, Chief Investment Officer of Fairlead.

The ownership entity, One Park Tower LLC, acquired the note in an all-cash transaction. Cushman & Wakefield represented special servicer Midland Loan Services in the note sale.

For more news and information visit Blumberg Capital Partners.

Pearl Highlands Center Sold for $141.5M

A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc., Hawaii's fourth largest private landowner, announced this month that is had closed on the purchase of Pearl Highlands Center in West Oahu, Hawaii. A&B bought the 415,000 square foot center from an affiliate of Boston-based real estate investment firm AEW Capital Management. The purchase price includes assumption of a $59.3 million mortgage note, while the balance will be funded by the future sales of commercial properties from the company’s Mainland portfolio and Hawaii land parcels, according to a Pacific Business Journal article.

"The Pearl Highlands acquisition significantly advances the strategic migration of our commercial portfolio back to Hawaii," said Christopher Benjamin, A&B's president & chief operating officer. "The addition of Pearl Highlands increases our total Hawaii commercial portfolio square footage by 25% to exceed 2 million square feet and makes A&B the second largest owner/operator of retail properties in the state by gross leasable area."

Located on the busy Kamehameha Highway and directly across from Hawaii's newest Home Depot, the Pearl Highlands Center is the sixth largest in the state, with major tenants including 24 Hr. Fitness, Sam's Club, Regal Cinemas, Ross Dress for Less, Pier 1 imports, Pictures Plus, Buffalo Wild Wings, Price Busters and FedEx Office.

For more news and information visit Blumberg Capital Partners.

Cousins Closes $1.1B Texas Portfolio Acquisition

Cousins Properties announced this month that it has completed the acquisition of a Texas-based office portfolio for a total gross purchase price of approximately $1.1 billion in cash from Crescent Real Estate Holdings. The properties in the portfolio include Greenway Plaza, a 10-building, 4.4 million-square-foot office portfolio in Houston, and 777 Main Street, a 980,000-square-foot Class-A office tower in Fort Worth, Texas. JP Morgan Securities served as Cousin's exclusive financial advisor on the acquisition.

"Greenway Plaza and 777 Main Street are an excellent fit with our portfolio as they are high-quality urban properties with embedded NOI growth and future development potential," said Larry Gellerstedt, President and Chief Executive Officer of Cousins. "Not only do we expect this transaction to be transformative and accretive, it immediately expands our Texas platform and provides substantial geographic diversification at a significant discount to replacement cost."

Cousins funded the Texas acquisition through a $690 million stock offering and two new mortgages, including a $114 million loan backed by Midtown's Promenade in Atlanta, according to an Atlanta Business Chronicle article. HFF's Houston and Dallas office represented the seller, Crescent Real Estate.

For more news and information visit Blumberg Capital Partners.

$2.3B Spring District Development in Bellevue Breaks Ground

The Spring District, a 36 acre environmentally sustainable, mixed-use urban neighborhood in Bellevue, Washington broke ground this week as the new $23 billion project that is targeting the technology industry moves closer to completion. The City of Bellevue approved The Spring District Master Development Plan, designed for the old Safeway Distribution Center in the Bel-Red Corridor, in May of 2012, and this week Phase One began in earnest as the developers razed a big warehouse where Coca-Cola and other tenants operated until recently. Developed by Wright Runstad & Company and Shorenstein Properties, The Spring District will be developed block-by-block over the course of 15 years, with a light rail station ultimately connecting the community to Microsoft, downtown Bellevue and Seattle. When fully developed, The Spring District, designed by NBBJ, will total approximately four million square feet including three million square feet of office space, up to 1,000 multifamily residences, and ground floor retail spaces.

"We’re excited to launch The Spring District and create a new urban extension of downtown Bellevue, much like the Pearl District has extended downtown Portland," said Greg Johnson, the President of Wright Runstad & Company, in a press release. "Security Properties has done exciting projects in San Francisco, Ballard and Fremont that were specifically tailored to those communities, and we think that experience is a perfect fit for The Spring District." Notes John Marasco of Securities Properties, "We plan to work closely with the property owners and the neighborhood, to create something tailored to the location and the people who will live there. We don’t do cookie-cutter. Every development is tied to its neighborhood by art and design."

Phase One of the project includes the purchase of a 2.5-acre parcel at the southwest corner by Securities Properties for a 316-unit multifamily project, with an option to develop another 225 units on an adjacent parcel. Located at the intersection of State Route 520 and Interstate 405 in the Bellevue-Redmond Corridor, Phase One plans also include six office buildings and a two-acre park block. There are also plans to convert some of the existing warehouse areas into spaces suitable for an urban distillery or tap house, along with an ample landing pad and outdoor dining space for food trucks.

Bellevue-based Broderick Group is the broker responsible for leasing the first two office buildings in Phase One of The Spring District. "This first residential project will speak volumes to knowledge-based companies that want to offer their current and future employees the 24-hour, live/work lifestyle that can only be found in or near an urban core," said Jeff Watson, principal at the Broderick Group. "The ability to attract and retain the best talent is paramount for growing companies who increasingly view real estate as a potential competitive advantage, and The Spring District is well on its way to becoming a hub for innovative companies."

For more news and information visit Blumberg Capital Partners.

Forest City and QIC Complete Mall JVs

Forest City Enterprises, is a national real estate company with $10.7 billion in total assets, announced this week that it has completed and partly closed its joint ventures with QIC Global Real Estate, the real estate arm of Australia-based Queensland Investment Corp., to recapitalize and invest in a portfolio of eight of Forest City's regional retail malls. According to a GlobeSt.com report, the deal brings QIC GRE a 49% equity interest in the properties at a cost of $435.6 million, with the portfolio valued at $2.05 billion.

"This strategic capital partnership with QIC is our largest such initiative to date, and an exciting opportunity to work with an experienced global investor to enhance these already strong retail centers," said David LaRue, Forest City president and chief executive officer. "We look forward to building a mutually beneficial, long-term relationship that creates value for both of our organizations."

"The US portfolio clearly has the scope to be a very large presence for us," said QIC Global Real Estate managing director Steve Leigh in an interview with The Australian. "US retail sales are growing by about 7% per annum compared with Australia where it is essentially flat - zero to 1%,. In regional malls - the type of malls we would invest in - there is a universe of around 1200 in the US, and they trade more frequently."

The eight properties being joint ventured are Victoria Gardens in Rancho Cucamonga, California, Charleston Town Center in Charleston, West Virginia, Mall at Robinson near Pittsburgh, Pennsylvania, Promenade in Temecula, California, Galleria at Sunset in Henderson, Nevada, Antelope Valley Mall in Palmdale, California, Short Pump Town Center in Richmond, Virginia, and South Bay Galleria in Redondo Beach, California.

For more news and information visit Blumberg Capital Partners.

Dornin Buys Katy Freeway Office Building in Houston

Dornin Investment Group, a Laguna Beach, CA-based real estate investment and asset management firm, has purchased 15915 Katy Freeway from Downtown Properties. The 105,619-square foot office building was sold for an undisclosed amount free and clear of debt, according to a press release. HFF marketed the property on behalf of Downtown Properties, the U.S. real estate associate of Gaw Capital Partners.

Built in 1982, 15915 Katy Freeway is located in the Park 10 sector of Houston's Energy Corridor. The 6-story building underwent $1 million in property improvements and upgrades in 1998. The Class B office building was 88.7% leased at the time of sale with a diverse mix of tenants in industries such as engineering, technology, real estate, energy and healthcare.

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was featured as an investor at the 19th Economic Summit organised by the Nigerian Economic Summit Group in Abuja last week, with participants drawn from virtually all sectors of the economy to deliberate on ways to unlock Nigeria’s agric potential.  As featured in an article titled Economic Summit Offers Blueprint to Unlock Nigeria’s Agric Potential in THISDAY LIVE, an excerpt follows:

Speaking at the signing of a Memorandum of Understanding (MoU), the Minister of Agric. Adesina said the federal government would establish 800 warehouses across the country, which is at least one warehouse in every local government area in Nigeria.

He added that the Federal Government would create an Agriculture Information System to help gather data for farmers and also recruit those that will manage the warehouses.

It was gathered that Blumberg has agreed to invest $250 million in warehouse facilities in Nigeria as a fallout of the agreement with the African Exchange Holdings.

When operational, the warehouses will be leased by the government to private investors “so that farmers can make money”, the minister said.

For more news and information visit Blumberg Capital Partners.

 

Prudential Sells Mission Ridge Complex

Prudential Real Estate Investors, the real estate investment management business of Prudential Financial, Inc., sold the Mission Ridge office complex in Mission Viejo, California to Cornerstone Real Estate Advisers, a subsidiary of Massachusetts Mutual Life Insurance Co. Cornerstone Real Estate Advisers, on behalf of an institutional investor, purchased the asset free and clear of existing debt. While terms of the deal were not disclosed, experts familiar with the Orange County market valued the Mission Ridge deal in the mid-$50-million range, according to a Los Angeles Times article. HFF marketed the property on behalf of Prudential Real Estate Investors.

"In the last real estate cycle we had the perfect storm of the subprime meltdown, a lot of new construction coming online and then the national recession," said real estate broker Ryan Gallagher of HFF. "This time we have a very balanced recovery from a tenant perspective."

Originally developed in 2000, the two-building Mission Ridge Class A office campus totals 231,065 square feet of rentable space. The property was 90% leased at the time of sale with major tenants including Ensign Facility Services, McAfee, Pulte Homes, Wells Fargo, Charles Schwab and Premier Office Centers.

For more news and information visit Blumberg Capital Partners.

Capital Square Realty Acquires Greenville Medical Office Building

Capital Square Realty Advisors, a Virginia-based commercial real estate investment firm launched earlier this year and led by Louis Rogers, a 29-year veteran of commercial real estate investments, announced that it had acquired a 20,458-square-foot medical office building in Greenville, North Carolina. While pricing and terms of the deal were not disclosed, the ECU Physicians Medical Office Building was listed for sale in May 2013 by Turner Financial Group for $4 million.

"This medical office building is leased on a 10-year term to one of the largest medical practices in Eastern North Carolina and is well located in a busy medical district," said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors. "As a nation, Americans are growing older and demanding greater healthcare services such as those provided to the residents of Eastern North Carolina in this facility."

Built in 1989 and renovated in 2008, the ECU Physicians Medical Office Building is 100% occupied with a new 10 year lease with ECU Physicians, a credit tenant backed by East Carolina University which has a Moody's rating of Aa2 and a S&P rating of AA-. Located in the heart of Greenville's vibrant Medical District, the office can be expanded to add approximately 6,000 square feet of space without rezoning or complex engineering. The medical center serves as the teaching hospital for the Brody School of Medicine at East Carolina University and provides acute, intermediate, rehabilitation and outpatient health services to more than 1.4 million people in 29 counties.

For more news and information visit Blumberg Capital Partners.

Parkway Buying Thomas Properties for $1.2B

Orlando-based real estate investment trust Parkway Properties Inc. announced this week that they had agreed to acquire Los Angeles-based Thomas Properties Group Inc. in a stock-for-stock transaction valued at $1.2 billion. Under the terms of the merger agreement, Thomas Properties' shareholders will receive 0.3822 shares of newly issued Parkway common stock in exchange for each share of Thomas Properties common stock, for an implied price per share of $6.26 based on Parkway's closing stock price of $16.37 on September 4, 2013. Parkway will assume roughly $752 million of Thomas Properties' pro rata share of in-place secured debt, and provide Thomas Properties with a bridge loan totaling up to $80 million.

James A. Thomas, President and Chief Executive Officer of Thomas Properties, commented, "Our board believes that the combination with Parkway, based upon our relative net asset values, will maximize value for our shareholders, both in the near and long term. We are big believers in Parkway's long-term growth strategy of gaining critical mass with high-quality assets in targeted submarkets throughout the Sunbelt. This combination of Thomas Properties and Parkway delivers to our stockholders increased scale, improved liquidity, a strengthened balance sheet and the tax advantages of a REIT structure."

According to a CoStar report, the merger, which is expected to close in the fourth quarter, includes 14 Thomas Properties office assets totaling 9.8 million square feet, including eight in the fast-growing Austin and Houston markets. The portfolio was 89% occupied as of June 30.

For more news and information visit Blumberg Capital Partners.

Apollo CRE Finance Closes $84.9M Transactions

Apollo Commercial Real Estate Finance, Inc. (ARI), a real estate investment trust managed by an indirect subsidiary of Apollo Global Management, LLC, announced this week that it had closed two loan transactions totaling $84.9 million. Apollo provided a $22.5 million mezzanine loan for a Pittsburgh mixed-use property and a $62.4 million whole loan for a New York City commercial building. According to a company press release, with the addition of these closing the company's 2013 investment activity year-to-date totaled $277.9 million of commercial real estate debt transactions with an underwritten weighted average IRR of approximately 14%.

"ARI continues to see interesting transactions in our core first mortgage and mezzanine lending businesses that offer attractive, risk-adjusted returns," said Scott Weiner, Chief Investment Officer of ACREFI Management, LLC, the manager of Apollo Commercial Real Estate Finance. "The mezzanine loan for the mixed-use property has strong, well-capitalized sponsorship. The whole loan for the residential conversion represents a highly-structured transaction in a prime location for a premier New York City real estate developer. Both transactions are structured with floating interest rates, which we believe will be beneficial to ARI in a rising interest rate environment."

The transactions include the following:

- $22.5 million mezzanine loan secured by a pledge of the equity interest in a borrower that owns a mixed-use property located in the central business district of Pittsburgh, PA and consists of a 27-story multi-tenant office building, an adjoining 616-key convention center hotel, and a 479-space underground parking garage.

- $62.4 million whole loan, which is split into a $33.0 million first mortgage and a $29.4 million mezzanine loan secured by a pledge of the equity interests in a borrower that owns an eight-story commercial building in the Greenwich Village section of New York City. The whole loan will fund the conversion of the existing building into a 12-story luxury residential condominium consisting of approximately 37,000 square feet comprising eight residential units and approximately 3,600 square feet of ground-floor retail space.

For more news and information visit Blumberg Capital Partners.