Liberty Property Trust Sells Portfolio for $368M

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

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

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

For more news and information visit Blumberg Capital Partners.

Prologis, Norges Form $1B Joint Venture

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

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

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

For more news and information visit Blumberg Capital Partners.

NorthStar Invests $340M in RXR Realty

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

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

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

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

For more news and information visit Blumberg Capital Partners.

Terreno Acquires JFK Airgate Center Buildings for $53.1M

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

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

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

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

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

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

For more news and information visit Blumberg Capital Partners.

Fairfax Co. Purchases Office Building to Ease School Overcrowding

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

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

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

For more news and information visit Blumberg Capital Partners.

3 WTC Signs On First Business Tenant with GroupM

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

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

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

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

For more news and information visit Blumberg Capital Partners.

Blumberg Grain in the News

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

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

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

Benchmark Picks Up East Village MU Building for $57M

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

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

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

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

For more news and information visit Blumberg Capital Partners.

American Realty Acquires 100 View @ Mountain View Station

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

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

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

For more news and information visit Blumberg Capital Partners.

Epic Enters DC Market with $52.7M Office Building

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

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

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

For more news and information visit Blumberg Capital Partners.

Essex Property Trust Buying BRE Properties in $4.3B Deal

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

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

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

For more news and information visit Blumberg Capital Partners.

Shorenstein Properties Buys Denver City Center $286M

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

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

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

For more news and information visit Blumberg Capital Partners.

Wellesley Office Park Sold to Manulife for $237M

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

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

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

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

For more news and information visit Blumberg Capital Partners.

Miami Rivergate Buildings Sold for $104M

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

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

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

For more news and information visit Blumberg Capital Partners.

Forum Office Park Closes $78.7M in Financing

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

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

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

For more news and information visit Blumberg Capital Partners.

CBRE Acquires CAC Group

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

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

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

For more news and information visit Blumberg Capital Partners.

100 Plaza Drive in Secaucus Sold for $47M

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

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

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

For more news and information visit Blumberg Capital Partners.

KBS Sells Millennium Tower in Dallas

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

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

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

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

For more news and information visit Blumberg Capital Partners.

Wells Fargo Breaking Ground on $125M Expansion

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

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

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

For more news and information visit Blumberg Capital Partners.

WRIT Disposes of $307M in Medical Properties

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

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

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

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

For more news and information visit Blumberg Capital Partners.