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.

Westminster Funds Sells Northeast Business Center to Citimark

The Westminster Funds sold the 522,358-square-foot Northeast Business Center in Indianapolis to locally-based Citimark Management Co., Inc. for an undisclosed price this week. The Westminster Funds, diversified real estate investment partnerships for private investors and their foundations, was represented by Cassidy Turley's Indianapolis office, which also assisted with leasing services. Citimark, a full service real estate and construction company, represented itself in the transaction. Terms of the deal were not disclosed, but according to Indy Star archives Westminster purchased the property in 2005 for $26.4 million.

"I'd like to thank the Cassidy Turley associates for their efforts and professionalism throughout the disposition process," said Charles E. King, Principal for The Westminster Funds. "We look forward to working with them in the future."

"As evidenced by the considerable market interest in this business park portfolio offering, Greater Indianapolis remains attractive to industrial property investors," said Jeff Castell of Cassidy Turley.

The Northeast Business Center sits near the I-69 corridor on the northeast side of Indianapolis. The commercial business park is designed for a variety of users, including office, office/flex, wholesale/showroom, and light distribution. With multiple tenants, the occupancy rate is 92%. The center includes nine one-story office and warehouse buildings at the following locations: 8730-8932 Corporation Dr., 7226 and 7202 E. 87th St., 8802,8804,8904,8930 and 8805-8875 Bash St., and 7301 E. 90th St.

For more news and information visit Blumberg Capital Partners.

Amazon Moving Into New Vancouver Office Tower

Telus Garden, a new a $750-million complex under construction near Pacific Centre that's taking up most of the block bound by Robson, Seymour, Georgia and Richards in downtown Vancouver, has a new tenant this week as the Seattle-based online retailer Amazon has reportedly committed to 91,000 square feet of space in the new office tower. Colliers International confirmed to Curbed that Amazon will be leasing the space (without disclosing terms of the deal), and could also end up taking about 156,000 square feet of space.

Amazon is expected to move into the space in 2015 after the tower is completed, and it's speculated that the company's entrance into the area could create anywhere from 100 to 1,000 new jobs in Vancouver. When completed, Telus Garden will consist of two buildings: a 53-story residential tower and a 24-story commercial tower, plus retail space.

In a statement emailed to BCBusiness, Mayor Gregor Robertson said, "Amazon creating such an impressive number of new jobs represents a major boost to Vancouver's economy and our city's fast-growing technology sector. This news is yet another strong example of how Vancouver is emerging as an innovation powerhouse."

For more news and information visit Blumberg Capital Partners.

JV Buys Nearly $200M in Offices from Equity Office Properties

M West Holdings, a Sherman Oaks, CA-based diversified commercial real estate investment firm, has invested nearly $200 million to purchase North San Jose properties from Equity Office Properties, adding roughly 840,000 square feet to its portfolio. According to a Silicon Valley Business Journal article, the transaction marks the largest acquisition, by square feet, so far this year in the South Bay, topping the TMG/Fortress pickup of eight buildings from Cisco. Terms of the deal and pricing were not disclosed by the involved companies, but industry sources pegged the transaction at just under $200 million, or $240 a foot.

M West is a joint venture between DivcoWest Properties and TPG Real Estate, which originally formed the company last year to acquire the Mission West Properties Inc. portfolio when Mission West disposed of all of its real estate assets in December for an enterprise value of approximately $1.3 billion. M West has now added the following properties to its roster:

Baytech Business Park, a 307,000-square-foot, four-building campus at 150-180 Baytech Drive in San Jose;

Valley Technology Center, a 471,000-square-foot campus at Zanker Road and East Trimble Road in San Jose;

and 3025 Orchard Parkway, a 62,000-square foot, single-building project.

For more news and information visit Blumberg Capital Partners.

One Chase Manhattan Sold to Fosun of China for $725M

Fosun International Limited, China's largest private conglomerate by revenue, has agreed to purchase One Chase Manhattan Plaza from JP Morgan Chase for $725 million, putting down a 10%, nonrefundable deposit on the deal this week. Fosun, the investment arm of China's biggest closely held industrial group, intends to keep the tower as an office building, said Darcy Stacom, vice chairman at CBRE Group Inc., who led the brokerage team that conducted the sale for JPMorgan. Potential buyers had been offered residential conversion as an option, to capitalize on rising Manhattan condominium prices.

"The wave continues with this purchase," said Dan Fasulo, managing director of property-research firm Real Capital Analytics Inc. "We've seen a series of trophy transactions in key cities around the United States done by the Chinese, in New York, San Francisco, Los Angeles, as well as smaller acquisitions in other markets around the country."

Owned by Guo Guangchang, Fosun beat out over half a dozen bidders for the 60-story office tower, which is roughly half occupied by JPMorgan staff that will mostly relocate to other New York locations. Chase moved its headquarters from One Chase Manhattan Plaza to an address near Grand Central Terminal in 1996. Situated in the core area of the north section of downtown Manhattan, the financial district of New York City, the plaza of the building connects with 7 subway lines providing great access to public transportation. A spokeswoman for Fosun said that property will only grow in value, citing its prime location and the renovation of the nearby Fulton Street transportation hub, according to CNN Money.

For more news and information visit Blumberg Capital Partners.

Baptist Health Buys $7.36M in Coral Gables Properties

Baptist Health South Florida, is a not-for-profit health care organization in the Miami and South Florida area, has purchased three properties in Coral Gables, Florida from Century Laguna for $7.35 million. According to a South Florida Business Journal article, the acquisition brings Baptist Health's 2013 acquisitions to nearly $140 million. Terms of the deal were not disclosed.

The properties include:

4231 S. Le Jeune Road, a 3,061 square-foot restaurant on a 15,680 square-foot lot;
the vacant 6,125 square-foot lot adjacent;
and 4291 S. Le Jeune Road, a 1,696 square-foot office on a 7,105 square-foot lot.

Century Laguna LLC, led by developer and former U.S. Century Bank director Sergio Pino, had a $9.77 million mortgage with Doral-based U.S. Century Bank that was made when Pino was a director, which covers these properties as well as 390 Bird Road.

For more news and information visit Blumberg Capital Partners.

Houston's Marathon Oil Tower Sold

Hanover Real Estate Partners, based in Greenwich, Connecticut, announced this week that it had sold the Marathon Oil Tower to CBRE Strategic Partners US Value 6, a fund sponsored by CBRE Global Investors. Terms of the deal and purchase price were not disclosed, but the property is appraised at $214 million according to the Harris County Appraisal District. CBRE's brokers Bernard Branca, Jared Chua and Russell Ingrum advised CBRE Global Investors on the acquisition.

"We sought an opportune time to sell this truly unique trophy asset and believe this attractive transaction makes sense for both parties," commented Hanover Real Estate Partners managing partners Reed Miller and Ken Boyle. "We enjoyed working with CBRE Global Investors to consummate this sale and are pleased to come to an agreement that creates immediate value for our investors."

"Houston ranked second in the nation in net absorption in 2012, and the Galleria submarket in particular is experiencing dramatic recovery," Vance Maddocks, president of CBRE Strategic Partners U.S., said in a statement announcing the sale. "Given its location within a major growth corridor, Marathon Oil Tower is a great fit with our fund's strategy, and with our strength of ownership, we will be able to add value for tenants and our investors."

The 1.2 million square-foot, 41-story office building at 5555 San Felipe was 93% leased at the time of sale, with 60% leased to Marathon Oil Corp. Hanover took over responsibility for the management and oversight of the property from Lehman Brothers Inc. in 2003. Hanover announced last July that it had committed $5 million in capital improvements to the property, including fully modernizing the building's 40 elevators, installing card-key access security turnstile system, retrofitting the building's parking garage lighting and making improvements to the asset's cooling tower and drainage system.

For more news and information visit Blumberg Capital Partners.

US Big Box Demand is "High and Rising"

The inaugural Jones Lang LaSalle Big Box Velocity Index report was released this month showing that demand for large U.S. industrial distribution centers is high and rising. The report was coupled with results from the quarterly industry analyses, including JLL's Q3 2013 Office Outlook, which marked the first time in seven years that the U.S. office market can look more confidently toward 2014 with leasing activity, expansion and pricing picking up at a faster, more sustainable rate across the nation. It heralds a lot of encouraging news for the U.S. markets, with 96.7 million square feet of industrial construction currently underway, nearly half of which is speculative, with an average building size of 360,000 square feet.

The Velocity Index cites five key trends that are shaping the 2013 U.S. Big Box Industrial Market – and creating markets that are winners and losers:

1) WHO: At the top of the list of industries fueling demand include retail, especially e-commerce retail players, and the logistics & distribution and manufacturing sectors. However, retail (traditional retailers through consumer non-durables) accounts for more than one third of total demand with most concentrated in the Northeast – particularly New Jersey and Philadelphia.

2) WHAT: A resurgence in activity from distribution space users has manifested in rising demand in two primary categories: the 250,000 to 499,999-square-foot range, and in facilities of more than one million square feet. Together these two categories comprise more than half of the requirements from tenants in the marketplace.

3) WHEN: There have been 14 consecutive quarters of positive net absorption, bringing vacancy rates down. Construction activity began to increase during the first half of 2012 and much of this stemmed from committals prior to groundbreakings. More speculative development is currently underway.

4) WHERE: Traditional distribution corridors are showing strong market conditions, however the Northeast is seeing the majority of activity. Five of the top six industries with space needs are looking in this region with many in the market for spaces in excess of one million square feet. In the Midwest, however, tenant requirements (on a square footage basis) are down by 26% owing to robust leasing activity in quarters past.

"The Northeast is home to 55 million people, and this is appealing to retail distributors that want access to a lucrative market that a mega population offers: an expansive consumer base and an existing, intricate logistics infrastructure," said Aaron Ahlburn, Director of Research, JLL Americas Industrial & Retail. "Larger blocks of functional space are also more readily available here than in the neighbouring Midwest, meaning tenants in New Jersey have more choice as opposed to facing competition for fewer large space options in Chicago."

5) WHY: "It's no surprise that the retail sector comprises more than a third of our growth," said Craig Meyer, President of Industrial, JLL. "The demand from e-commerce is shaping the market more than ever before, and is influencing the requirements of both users and the institutional investors who make speculative construction possible."

For more news and information visit Blumberg Capital Partners.

Dubai's Next Real Estate Boom

A new report from the Wall Street Journal titled Dubai Launches New Real-Estate Boom examines the current climate -- and promises -- in the Dubai real estate market as developers in the area are moving ahead with billions of dollars in new projects. According to Jones Lang LaSalle, there are about 45,000 units in the supply pipeline, fueled by strong demand from investors attracted to the emirate's political stability and haven status in the Middle East. Jones Lang LaSalle analyst Craig Plumb predicted that prices will keep rising "for some time" but called the rate of growth "unsustainable."

As reported by the WSJ, the new boom is being fueled by strong demand from investors attracted to the emirate's political stability and haven status in the Middle East. Apartment prices rose by 42% in the 12-month period ending Sept. 30, according to a recent report by Asteco, a local brokerage.

"It's relatively peaceful and Dubai tends to benefit from the conflict from elsewhere," said Nitin Kalwsani, an Indian national running a trading business in Dubai who was looking to buy a villa. "They used to take it to the U.S., but I think after Sept. 11, Muslims don't want to invest in the U.S."

For more news and information visit Blumberg Capital Partners.

Boston's One Winthrop Square for Sale

One Winthrop Square, a 5-story, "jewel-box" style office building in Boston, has been listed for sale by GLL Real Estate Partners. The Munich-based real estate manager purchased the property in 2009 for $21 million, according to a Boston Business Journal article; the current asking price on the property was not disclosed. RREEF bought the building as part of the RREEF America REIT III Inc. fund in 2005. The acquisition, which included 32 properties in Massachusetts, was one of the largest sale transactions in Boston at the time.

"I wouldn't be surprised at $350 per square foot or about $40 million," a local real estate source said.

One Winthrop Square is managed by Grubb & Ellis Management Services on behalf of GLL Real Estate Partners. The original building was constructed in 1873 and renovated in 1990. Many of the building's original features are still visible within the building including exposed brick walls and iron columns.

For more news and information visit Blumberg Capital Partners.

Greenland Group Gains Majority of Brooklyn's Atlantic Yards

Greenland Group, a developer owned by China, has made a huge entrance into Brooklyn as it became a preliminary owner this week in 70% of a joint venture to develop Atlantic Yards. Under the deal, the Shanghai-based investor would replace Forest City Ratner Companies in developing the 22-acre residential and commercial real estate project.

Under the proposal, Greenland would co-developing the residential portion of the complex and sharing its costs going forward, while Forest City Ratner would continue to manage the day-to-day activities, according to an announcement. "We are delighted to have an opportunity to create a strong development and investment partnership with Greenland Group," said Bruce Ratner, executive chairman of Forest City Ratner Companies. "We look forward to working together to bring the housing and other amenities of Atlantic Yards to fruition."

Greenland Group says this is the largest single investment in the U.S. by a Chinese developer. In 2012, Greenland Group had revenues of $36.6 billion and profit of approximately $2 billion, according to a China Money Network article.

The overall project, located at a commuter rail hub, includes the Barclays Center, a basketball and hockey arena that opened last year. It is home to the NBA's Brooklyn Nets and will be home to the NHL's New York Islanders starting in 2015. According to a CNN article, the joint venture will not include either the Barclays Center or the first residential tower that is planned for the site.

For more news and information visit Blumberg Capital Partners.

New BHP Billiton Tower in Uptown Houston Underway

Construction began this week on a new 30-story office tower in Houston's Uptown District that will add 600,000 square feet of Class AA office space in the Galleria submarket. The new BHP Billiton Tower is being developed by financial services firm TIAA-CREF and Transwestern, and is 100% preleased to BHP Billiton, a major global diversified resources company. The design architect on the project is Pickard Chilton Associates of New Haven, Connecticut, and the architect of record is Kendall Heaton Associates of Houston. The building is expected to be completed in October 2016.

"Transwestern is honored to be a part of the team assembled to make this project a reality," said Carleton Riser, Transwestern's managing director of development. "We believe it will have a long-term positive impact on BHP Billiton, the Four Oaks complex and the Uptown Houston skyline."

"The new tower, like the other buildings in Four Oaks Place, will incorporate the latest in green building practices," said Brad Simpkins, TIAA-CREF senior director, asset management. "BHP appreciated these sustainability initiatives, the building's downtown location and a building design focused on maximizing employee productivity and their investment."

The tower is being built on 2.72 acres on Post Oak Boulevard, within the Four Oaks Place office complex on a site that is adjacent to the BHP Billiton headquarters building currently located in the complex. According to a press release, the new BHP Billiton Tower and the existing headquarters at 1360 Post Oak Boulevard will be connected by a glass skybridge and employee productivity facilities including food service and fitness.

For more news and information visit Blumberg Capital Partners.

Regions Bank Office Building in Jonesboro Sold

Haag Brown Commercial Real Estate and Development, a Jonesboro, Arkansas-based commercial real estate brokerage, announced that it has purchased one of the biggest buildings in Jonesboro. Haag Brown Commercial Real Estate & Development of Jonesboro and Colliers International in Little Rock are part of an ownership group that purchased the property for $3.4 million from an entity owned by Jonesboro developer Bruce Burrow and his business partner, Marty Belz of Memphis, according to an Arkansas Business article. Terms of the deal were not disclosed.

"Our partnership and ongoing relationship with Colliers International in Little Rock led to our direct involvement in the purchase and re-branding of this building. We have big plans for this multi-story development and are looking forward to watching our vision become reality," said Joshua Brown of Haag Brown. We have always had a good relationship with Kevin Huchingson and Isaac Smith from Colliers. Their firm manages over 14,000,000 SF of commercial real estate. Our immediate plans are to start the largest, most efficient, and innovative commercial property management company in the Northeast Arkansas Trade area."

The building at 2400 Highland Drive, once known as MBC Plaza that now serves as the Regions Bank building, includes roughly 52,000 square-feet of office space. The five-story building will be renamed the 2400 Building, according to a news release from Haag Brown. Haag Brown will lease the property and Colliers will manage it. Current tenants include Region's Bank, the FBI, Congressman Rick Crawford and Raymond James.

For more news and information visit Blumberg Capital Partners.

OC's Eureka Building Sold, New Leases In

Peter Polydor, cofounder of merchant bank ERGO Capital Partners and leading investor, closed on the purchase of 1621 Alton Parkway in Irvine, California. The property, now dubbed The Eureka Building, sold for an undisclosed amount, but public records show that it was listed for sale at $6.9 million and was previously bought in 2011 by San Diego-based investment firm Westcore Properties for $5.5 million. The former offices of Fox Racing has been transformed from a single-tenant building into a multi-tenant creative space. Polydor said in an Orange County Register article this August that he plans to lease the space to tech companies after doing renovation work on the 34-year-old property, including replacing an on-site BMX racetrack with a modest bike trail.

"The Eureka Building provides a one-of-a-kind opportunity for creative or tech companies in Orange County. There has been a growing demand for creative space in Orange County, especially in the Greater Airport Area," said Senior Associate Shawn Lawrence of Cushman & Wakefield's Orange County office, which negotiated the purchase and will serve as leasing agent for the property. "The Eureka Building creates the synergy of a Silicon Valley campus in the heart of Orange County. It is truly a phenomenal opportunity for local tech companies."

The Eureka Building is a two-story, 40,852-square-foot office building with campus style creative office and event space in Irvine, California. It was created to help foster innovation and creativity by giving technology and design companies in Orange County a home that is centrally located and easily accessed. The campus is located in one of Orange County's premier infill industrial submarkets near Interstates 5, 405 and Highway 55, and offers close proximity to executive housing, destination shopping and the Orange County Airport. According to a press release, two companies have already leased space within the building: Coastal Sports Group, a leading distributor of motorcycle and ATV aftermarket parts, accessories and apparel has leased 8,400 square feet, with another 7,100 square feet leased by XPAL Power, a designer and manufacturer of portable power packs.

For more news and information visit Blumberg Capital Partners.

Coasts Dominate List of Most Expensive US Streets for Offices

Jones Lang LaSalle released it's official list of 2013's top ten most expensive streets in the United States for office space, with bicoastal cities topping the chart. The recent study of 40 office markets across the United States, with rents on the most expensive avenues exceeding the market average by 49.8%. "This year's results are particularly interesting because, not only do they demonstrate the standard real estate rule that location is everything, but they also reflect the overall office space demand trend in the U.S.," said John Sikaitis, Managing Director of Office Research at Jones Lang LaSalle. "We are seeing a slight uptick in occupancy rates as a result of the rate of business growth in the economy combined with a lack of new development."

The Top 10 Most Expensive U.S. Streets for Office Space (click here to view the 2011 results):

1. Sand Hill Road, Menlo Park, Calif.: $111.00 p.s.f. (-2.5%)
Historically the most expensive area in Silicon Valley, Sand Hill Road has deep roots with the venture capital community and houses the top VC firms in the greater Bay Area.

2. Fifth Avenue, Midtown Manhattan, NYC: $102.00 p.s.f. (+5.0)
Consistently ranked among the most expensive shopping streets in the world, Fifth Avenue is also home to numerous hedge funds looking for top-quality space in Midtown and willing to pay more for those coveted office locations with their unparalleled amenities.

3. University Avenue, Silicon Valley, Calif.: $95.00 p.s.f. (+14.1%)
Located in Downtown Palo Alto, University Avenue is known for its vibrant startup community, as its proximity to Stanford University makes it an ideal location for recruiting top young talent.

4. Greenwich Avenue, Greenwich, Conn.: $93.00 p.s.f. (+3.4%)
Greenwich Avenue competes with the best commercial real estate, leveraging its rich history preserved through older buildings. Top-shelf retail establishments dot the historically-rich corridor, from the top of the Avenue down through the transit center. Hedge funds and financial services firms occupy the majority of office space, with many top executives only steps from their homes. Premier office buildings offer close proximity to train, and command rents as high as $100 p.s.f.

5. Pennsylvania Avenue, Washington, DC: $76.00 p.s.f (-5.5%)
Despite slower overall market conditions in recent quarters, Pennsylvania Avenue has continued to experience rent premiums to the rest of the market. Known as "America's Main Street," Pennsylvania Avenue is home to many firms wanting close proximity to Washington's two main points of power, the White House to the west and the Capitol to the east. A big growth area in tenant demand in recent years has stemmed from the government affairs sector of corporate America.

6. California Street, San Francisco: $62.10 p.s.f. (+43.9%)
The main street of the city's North Financial District, California Street, is known for its historic cable car route, broadness and high-priced real estate. Growth in tech and associated industries, along with limited new supply, have pushed rents up by almost half over the past two years.

7. Boylston Street, Boston: $60.20 p.s.f. (+14.3%)
Boylston Street runs through two of Boston's most prestigious areas, Back Bay and the Financial District. It is home to numerous landmarks, Trophy office buildings and high-end retail, as well as some of the city's most distinctive skyscrapers.

8. Avenue of the Stars, Los Angeles: $60.12 p.s.f. (+1.9%)
The thoroughfare through the highly desirable Century City market, Avenue of the Stars is home to many prominent legal and financial service firms and talent firms, as well as the largest cluster of Class A Trophy assets on the Westside.

9. Royal Palm Way, West Palm Beach: $58.52 p.s.f. (+0.9%)
Royal Palm Way is dubbed "Banker's Row" due to the concentration of wealth management and financial services firms, catering to the wealthy residents on Palm Beach Island.

10. Newport Center Drive, Orange County: $50.06 p.s.f. (+4.3%)
Sitting on a bluff overlooking the Pacific Ocean, Newport Center Drive is a 1.3 mile ring that encompasses the Fashion Island retail center. World class dining and retail amenities along with ocean view suites and access to posh residential neighborhoods make Newport Center Drive one of the most premiere places to rent office space in Southern California.

For more news and information visit Blumberg Capital Partners.

Nasseff Specialty Center Medical Building Sold to Allina Health

Nasseff Specialty Center, a medical complex located on the United Hospital, Minnesota campus in St. Paul, traded hands this week as Allina Health purchased the property. According to a Finance & Commerce article, the seller was Smith Avenue Realty Associates, a partnership that includes some of the physicians who worked in the building. While terms of the deal were not disclosed, Minneapolis / St. Paul Business Journal reported that Allina has been consolidating some the medical practices in the 119,199-square-foot building, at 225 N. Smith Ave. The seller was represented by the CBRE Institutional Group in Minneapolis led by Ryan Watts, Steven Buss and Tom Holtz.

Designed by KKE Architects, Inc., the 119,199 squarefoot Nasseff Specialty Center was built in 2005 at 215-225 Smith Avenue North. The Nasseff Specialty Center is home to some of the most sought-after medical specialists in the region, including United Vascular Clinic, United Heart & Vascular Clinic, St. Paul Lung Clinic, Minnesota Epilepsy Group, United Neurosurgery Associates, University of Minnesota Physicians , Pediatric Specialty Clinic – St. Paul, St. Paul Pulmonary Hypertension Clinic, and Midwest Ear, Nose & Throat Specialists.

For more news and information visit Blumberg Capital Partners.

IDI, Verde Realty Merge in $1.1B Deal

IDI, one of the largest privately-held real estate property companies in North America focused on industrial properties, announced this week that it had successfully merged with Verde Realty in a transaction worth $1.1 billion. Verde Realty, an existing majority-owned real estate holding of Brookfield Property Partners, will fold into and operate under the IDI name, which will remain headquartered in Atlanta, Georgia. The new IDI has assets valued at more than $2 billion, with a portfolio of nearly 180 buildings with 45 million in square footage.

"By combining our operations with Verde, IDI is positioned to build upon and strengthen the brand we have built over the past 24 years," said Tim Gunter, president and CEO of IDI. "Our collective goal for the 'new IDI' is to develop the highest quality North American industrial platform while remaining true to our mission – to build real long-term value for our clients, team members, communities and industry by striving for superior quality in all we do." He added, "We will continue to grow the company through development of inventory buildings while still serving build-to-suit clients. By combining our assets and expertise, our footprint becomes broader, our asset base and balance sheet stronger, and we are better able to pursue acquisition of product."

GlobeSt.com reported in August that Brookfield Property Partners, headquartered in Hamilton, Bermuda, was acquiring IDI from the US subsidiary of Kajima Corp. Brookfield Property Partners bought about 25% of IDI, which was founded in 1989; its partners acquired the balance of the company.

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was just featured in an African Business article titled  "Asian example perfectly suited to Africa" in which the new initiatives by Blumberg to add value to agricultural production by processing that output within Africa. In July, Blumberg Grain signed a memorandum of understanding with the government of Ghana regarding the development of a processing plant and export hub in the north of Ghana. An excerpt from the article follows:

US firm Blumberg intends to employ about 1,000 people at the new facility. The government hopes that the scheme will reduce crop losses and encourage agricultural investment in the north of the country by providing a ready market for production, although the hub will seek to attract supplies from the wider West African region. 

Blumberg plans to invest in local, privately owned farms, where it can introduce high-yield farming technology. A new Agriculture and Farming Institute will also be opened at the selected location, which has yet to be confirmed, in conjunction with Ghana’s Food and Agriculture Ministry, Iowa State University and several non-governmental organisations.

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