Monday, March 31, 2014

$16.2B Essex-BRE Merger Complete

Essex Property Trust announced the completion of the company's merger with BRE Properties, a transaction that forms a combined company with equity market capitalization of approximately $11 billion and a total market capitalization of approximately $16 billion. UBS Investment Bank served as lead financial advisor to Essex with Citigroup serving as financial advisor. Wells Fargo Securities acted as exclusive financial advisor and Latham & Watkins LLP acted as legal advisor to BRE. Essex Property Trust has ownership interests in 233 multifamily properties with an additional 15 properties in various stages of development, according to a REIT.com article.

"We are excited to consummate the merger and move forward to combine these two great organizations to form the leading West Coast multifamily REIT," said Michael Schall, President and Chief Executive Officer of Essex. "The integration effort is proceeding as planned, which we believe will result in a stronger platform for sustainable growth, superior service for our residents, and expanded career opportunities for our employees. I want to thank the employees of both companies for their hard work, dedication and support."

"We are pleased that our stockholders have expressed overwhelming support and approval for this merger," said Constance B. Moore, Chief Executive Officer of BRE. "The combined portfolio of Essex and BRE will provide substantial value for our stockholders through enhanced operations, improvements in the costs of capital and synergistic opportunities. On behalf of BRE’s Board and management, I want to thank our stockholders for their invaluable support throughout this process."

For more news and information visit Blumberg Capital Partners.

Friday, March 28, 2014

Savanna to Develop New Chelsea Office Building

Savanna, a New York-based real estate private equity and asset management firm, announced this week that it had formed a joint venture with the Silvermintz Family and Jamison Weiner to develop 540 W. 26th St., a 160,000-square-foot office and art gallery building. Designed by Morris Adjmi Architects, the nine-story, 160,000-square-foot building will cater to office, art gallery and community facility tenants. Weiner, of the Manhattes Group, will be the exclusive leasing agent for the property, according to a GlobeSt.com report. Construction is expected to begin this summer.

"We are excited to introduce a state-of-the art office and gallery building to West Chelsea, which has become an epicenter of art, new media, technology and residential development in Manhattan," said Christopher Schlank, Managing Partner at Savanna, in a statement. "West Chelsea has grown exponentially in recent years and we look forward to being part of the continued transformation of the neighborhood."

"This site has been owned by my family for quite some time and Jamie Weiner and I have spent the last 15 years preparing it for a large scale development that we knew was going to be in the future of this neighborhood," said Michael Silvermintz. "We are very fortunate to have joined forces with the team at Savanna who share the same values, vision and drive that we have to bring a first-class property to the area and to contribute to the spectacular neighborhood of West Chelsea."

For more news and information visit Blumberg Capital Partners.

Thursday, March 27, 2014

Manchester Buys F.X. McRory Building

The F.X. McRory Building, a turn-of-the-century building in Seattle, traded hands this week as Manchester Capital Management paid nearly $17.55 million for the property. The seven-story building at 419 Occidental Ave. S. was sold by Intracorp which previously purchased the building in 2007 for roughly $17.1 million; Goodman Real Estate had acquired the property three years prior to that for $8.5 million.

The property generated strong interest among buyers, according to comments from Kidder Mathews senior vice presidents Dave Speers and Andy Miller, the commercial real estate brokers who marketed the building for sale, in a Puget Sound Business Journal article. "We had well over 100 [potential buyers] registered, and we did over 40 tours, which is a personal record for us," said Speers, who has been in the real estate business 27 years.

The 85,725-square-foot brick building was built in 1906 for the Stewart and Holmes Drug Company and renovated in 2006, featuring large fir beams and exposed brick interiors. Just steps away from both Century Link and Safeco Fields, the property is home to the iconic FX McRory's Restaurant and Bar and includes 5 floors of office space above the restaurant. The building was 98% leased at the time of sale, according to Kidder Mathews.

For more news and information visit Blumberg Capital Partners.

Wednesday, March 26, 2014

Amy's Kitchen Making $100M Move to Goshen

Amy's Kitchen, the producer of natural and organic convenience foods and frozen specialty foods, received approval from New York State and Orange County officials this week to move forward with its plans to build a manufacturing plant of between 350,000 square feet to 500,000 square feet in Goshen. The acquisition and plant project will total approximately $100 million in investment, according to a GlobeSt.com report. Empire State Development announced Tuesday that it has agreed to provide Amy's Kitchen with $6.8 million in performance-based incentives, in the form of a capital grant and Excelsior Jobs Program tax credits. Amy's has also applied to the Orange County Industrial Development Agency (IDA), which announced today that it had approved giving $500,000 to Amy's Kitchen for infrastructure work, for $11.4 million in tax breaks.

"Amy's Kitchen has been on a tear with these organic products, specialty food products, a variety of food categories, growing, growing, growing," said Empire State Development Corporation President Kenneth Adams. "So I think we can see a lot in store for the region as a result of this investment and what's more, you are talking about an impact for local farmers and growers and food producers, who in time will become major suppliers to this facility, which will then prepare the foods and distribute them and sell them."

Amy's Kitchen, which plans to employ some 700 people at the new plant, expects to break ground early next year and open the facility by the end of 2016. Currently celebrating its twenty-fifth year in business, the company founded by Andy and Rachel Berliner and named after their daughter, Amy.

"We are so excited about the opportunity to build a plant in Goshen. Geographically it's in the perfect spot to supply our largest customers. The potential to source so many of our agricultural ingredients close to the plant was another important factor in our decision. We also believe it's a great area to attract excellent employees. The site we've chosen is beautiful and situated on the Walkill River. The help and support we've received from the State, County and city has been outstanding, not to mention the warm response and interest we've received from the local community," said Andy Berliner, owner of Amy's Kitchen.

For more news and information visit Blumberg Capital Partners.

Tuesday, March 25, 2014

Parallel Capital Buys Office Campus for $72.5M

Parallel Capital Partners, Inc., a San Diego-based real estate investment and operating company, completed the purchase of Wateridge Plaza in a joint venture with Equity Group Investments for $72.5 million. The campus was sold by a partnership of Beacon Capital Partners and C-III Realty with representation from Eastdil Secured; Wateridge was originally sold to the partnership for $50.5 million in 2011. The three building Class A office complex in Sorrento Mesa adds nearly 300,000 square feet to Parallel's portfolio.

Located at 10201, 10221 and 10241 Wateridge Circle in San Diego, the office complex covers three six-story buildings and includes future development potential of approximately 168,000 additional square feet of Class A office space. Built in 1984, the prior owners, Beacon and C-III, invested over $14 million in upgrades to the project from 2009 to 2013. The property was 72% leased at the time of sale, with major tenants including American Specialty Health and Eddy M's Bistro.

"Wateridge Plaza is the ideal address for companies seeking the highest profile location, unparalleled campus amenities, panoramic canyon views and superb freeway access," said Matt Root, CEO of San Diego-based Parallel Capital Partners. "Most importantly it expands our presence in the Sorrento Mesa area, a technology and life science corridor which we believe is an emerging hub of the San Diego office sector," Root said. "Home to global leaders such as Qualcomm, Carefusion, & NuVasive, Sorrento Mesa is rapidly evolving into a world-class life science and high tech cluster."

For more news and information visit Blumberg Capital Partners.

Monday, March 24, 2014

USAA Acquires Industrial Portfolio

USAA Real Estate Company, a subsidiary of USAA, announced this week that it had purchased a two building bulk warehouse distribution portfolio located in Stockton, CA totaling 916,035 square feet. CBRE's Industrial Real Estate team consisting of Tyson Vallenari, Blake Rasmussen, Kevin Dal Porto and Ryan McShane, represented USAA in the portfolio transaction and are currently representing USAA as the listing team for both properties. Terms of the deal were not disclosed.

"The Stockton Industrial Portfolio represents a compelling opportunity for USAA to add value to two outstanding and versatile industrial properties in centrally located Stockton, California," said USAA Real Estate Company President and CEO, Len O'Donnell. "Just two hours from the West Coast and the Bay Area, Stockton is enjoying growing demand as a distribution point for industries operating in Northern California."

Built in 2008 and 2009, the first building in the portfolio features 30,000 square feet of state-of-the-art freezer space and 190,000 square feet of state-of-the-art cooler space, plus 500,000 square feet of dry storage space as well as 32,000 square feet of office space located across three distinct locations. Building two, originally built as a speculative, multi-tenant warehouse and distribution center features approximately 500 square feet of office space along with around 165,000 square feet of cold, dark warehouse and distribution space.

For more news and information visit Blumberg Capital Partners.

Friday, March 21, 2014

Penzance Picks Up Reston Office Buildings

Penzance, a D.C. based real estate development and operating company, announced this week that it had purchased Corporate Plaza I and II in Reston, VA for $22.6 million, or about $158 per foot. Transwestern's Institutional Commercial Group brokered the sale to Penzance on behalf of Piedmont Office Realty Trust; terms of the deal were not disclosed.

"The transaction achieved the strategic goals of both the buyer and the seller," said Gerry Trainor, Transwestern's managing executive director. "In the case of Piedmont, the sale is in line with its strategic plan of exiting non-core properties and focusing on aggregating Class A assets near transportation nodes in specific submarkets. For Penzance, the acquisition is consistent with its suburban value-add strategy and thesis that the Dulles Toll Road will lead the suburban recovery."

Matt Pacinelli, senior vice president of leasing for Penzance, said Metro access is a strong amenity. "I've probably gotten more activity in the building than I have in any of my other properties, and the reason for that is it's unique," Pacinelli said. "The Silver Line, it's not the main reason to acquire it, but it is a bonus." The two office buildings at 11107 and 11109 Sunset Hills Road total 142,394 square feet and are situated along the Dulles Toll Road (Route 267), just 0.75 miles from the new Wiehle Avenue Metrorail station and 1.7 miles from the Reston Town Center.

For more news and information visit Blumberg Capital Partners.

Thursday, March 20, 2014

Sale of Eight School Properties in Philadelphia for $38M

The Philadelphia School Reform Commission (SRC) approved the sale of eight closed buildings in the Philadelphia School District for $38 million. The properties, which includes a former administrative building and seven shuttered schools, will be sold for a total of $37 million under the current agreements with multiple buyers, but the Philadelphia School District will net $25.8 million after closing costs and other costs are taken out, said Fran Burns, operations manager.

The largest transaction was with Drexel University, which acquired University High, Drew Elementary and the 14-acre Walnut Center for a little more than $25 million, according to a GlobeSt.com article. Previously, Drexel stated it intended to redevelop the site for mixed uses and establish a new home for Samuel Powel Elementary, a K-4 school that partners with Drexel, according to The Inquirer. Two properties will be sold to charter schools: the former Anna Shaw Middle School to Mastery Charter Schools for $2.7 million and the former Stephen Douglas High to Maritime Academy Charter for $2.1 million. Alexander Wilson Elementary in Southwest Philadelphia will be bought by Orens Brothers Real Estate Inc. for $4.6 million, which will become residential and retail space.

For more news and information visit Blumberg Capital Partners.

Wednesday, March 19, 2014

Velocis Picks Up Two NC Medical Properties

Velocis, a Dallas-based ​private equity real estate fund, purchased two medical office buildings near Rex Hospital in the Research Triangle for nearly $5 million. Sunset One and Sunset Two, the two office buildings on Sunset Ridge Road, were purchased from JDL Investments LLC; terms of the deal were not disclosed. The properties have a combined 36,000 square feet of space and were 82% leased at the time of sale.

"These medical office buildings are located in a highly sought after market, minutes from a premier hospital," said Jim Yoder, Velocis principal and co-founder. "We anticipate that by leveraging Velocis' leasing and management expertise we can add considerable value to this asset and maintain a strong, stable occupancy rate. We have implemented similar models with previous assets we purchased and sold and are confident this asset will also provide good returns for our investors."

Yoder also said that the fund, which has made 14 acquisitions since its founding four years ago, is actively looking to acquire more assets in North Carolina. "We've actually got a couple other offers out on properties in the Triangle," Yoder said.

For more news and information visit Blumberg Capital Partners.

Tuesday, March 18, 2014

DC's Southwest Waterfront Project Breaks Ground

The WharfThe Wharf on Washington, D.C.'s Southwest Waterfront project developed by PN Hoffman and Madison Marquette, broke ground this week in a ceremony attended by Mayor Vincent Gray and three members of the D.C. Council. The groundbreaking was the District's biggest since CityCenterDC in April 2011, and landed three days into early voting for D.C.'s Democratic primary. The $1.5-billion Wharf project now beings Phase 1 of development, which covers 24 acres of land, more than 50 acres of waterfront, and a building area over 1.9 million GSF.

The Wharf, said Ward 6 Councilmember Tommy Wells, will be "one of the most remarkable developments anywhere on the planet." David Brainerd of Madison Marquette called it "one of the most exciting development projects ever constructed in the city of Washington, D.C."

According to Stan Eckstut, Principal of EE&K a Perkins Eastman company, who is leading the project's design team, "We're proud to be helping return the city back to where it began, with mixed uses and high density all activating one of the world's premier maritime destinations. Designing The Wharf is about creating places where people want to live and visit, bringing the human scale to a large-scale development. It's pedestrian-oriented, water-oriented, and transit-oriented development all in one."

Set for completion in 2017, The Wharf will offer hundreds of new apartments and condos, high- end hotels, office space, a movie theater, restaurants, an Irish pub, a jazz club and a piano bar. A visual tour of the new Southwest Waterfront is available via the Washington Business Journal.

For more news and information visit Blumberg Capital Partners.

Monday, March 17, 2014

KBS REIT III Buys Salt Lake Tower for $170.5M

KBS Real Estate Investment Trust III, a public non-traded REIT, announced this week that it had purchased 222 Main in Salt Lake City's Central Business District for $170.5 million plus closing costs, making it a record-setting deal for commercial real estate in Salt Lake City, on a cost per-square footage basis. The 426,657-square foot tower was sold by a joint venture of Bentall Kennedy, Hamilton Partners and Honeywell Retirees Pension. Marc Renard of Cushman & Wakefield, Kip Paul of Cushman & Wakefield | Commerce, and Tim Richey and Michael Winn of Cushman & Wakefield of Colorado coordinated the sale on behalf of the selling venture. The property was 85% leased at the time of sale.

"We believe 222 Main was designed to the highest standards with first-class finishes throughout which, along with its location in Salt Lake City's CBD, makes it a premier office property," said KBS Capital Advisors Senior VP Tim Helgeson. "This is an asset that benefits from unobstructed views of the Wasatch Range. Additionally, downtown Salt Lake City is just two blocks from the $2 billion City Creek Center mixed use development, which features numerous first-class amenities."

Designed by the international architecture firm Skidmore, Owings & Merrill, the 22-story tower at 222 Main was built in 2009 by Okland Construction and was the first Utah building to be LEED Gold certified. The sale drew national interest and multiple bids from local and out-of-state investors, according to one of a team of real estate brokers at Cushman & Wakefield | Commerce offices in Salt Lake, Denver and Los Angeles who were involved in the sale. "We had huge traffic on this," said Kip Paul, the firm's director of investment sales in Salt Lake. "I can't tell you how many people flew in to see this."

For more news and information visit Blumberg Capital Partners.

Friday, March 14, 2014

Unico Buys Denver Platte Portfolio

Unico Properties, a Seattle-based real estate investor and full-service operator, has closed on the purchase of two mixed used buildings in Denver, CO that comprise the Platte Portfolio. Terms of the deal were not disclosed, though Unico did note that it would serve as the property manager for both buildings, purchased from Plante Properties.

"Continuing our investment momentum with the acquisition of one of Denver's premier, historic portfolios underscores our on-going commitment to growth, expansion, and long-term presence in Denver," said Ned Carner, Unico Properties VP of acquisitions. "We're thrilled to own and invest in the Zang and Root buildings and in the Platte Street submarket. With these acquisitions, we plan to further enhance the district's reputation as a premier destination to work, dine, live and play with a robust workforce, proximity to mass transit, top restaurants, and a strong retail presence."

The Zang Building at 1553 Platte Street is a 48,254-square-foot, class-A mixed-use building with three levels plus one lower level. The Root Building at 401 15th Street is a 51,872-square-foot, class-A mixed-use building that is on the National Register of Historic Places. Both buildings are essentially fully leased, and offer a generous amount of parking at two spaces per 1,000 square feet ratio.

For more news and information visit Blumberg Capital Partners.

Thursday, March 13, 2014

RLJ Lodging Trust Pays $313 for Hyatt Portfolio

RLJ Lodging Trust, a Bethesda, MD based publicly traded real estate investment trust, announced this week that it had closed on the purchase of publicly traded real estate investment trust for a total purchase price of approximately $313 million. A Hyatt affiliate will continue to manage the hotels under new agreements now that the deal has closed, according to a GlobeSt.com article.

The portfolio includes:

Property City State Rooms
Hyatt House Cypress / Anaheim Cypress CA 142
Hyatt House Emeryville / SF Bay Area Emeryville CA 234
Hyatt Place Fremont / Silicon Valley Fremont CA 151
Hyatt House San Diego / Sorrento Mesa San Diego CA 193
Hyatt House San Jose / Silicon Valley San Jose CA 164
Hyatt House San Ramon San Ramon CA 142
Hyatt House Santa Clara Santa Clara CA 150
Hyatt Market Street, The Woodlands Woodlands TX 70
Hyatt House Charlotte / Center City Charlotte NC 163
Hyatt Place Madison / Downtown Madison WI 151
Total 1,560

RLJ said that it intends to spend $25 million in capital expenditures across the portfolio, the majority of which will be invested over the next 24 months. "This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment," says Thomas Baltimore, Jr., president and CEO of RLJ Lodging Trust, in a statement.

For more news and information visit Blumberg Capital Partners.

Wednesday, March 12, 2014

GT Global Affiliate Buys SouthPark Office Building

The Daniels Company, a green technology and engineering company that merged with Beijing Guohua Technology Group to form the multi-national GT Global in 2012, purchased 6201 Fairview in SouthPark, a submarket of Charlotte, NC, for $9.5 million. Trinity Partners' Dunn Mileham brokered the deal on behalf of the building's owner, an affiliate of The Lionstone Group, according to a Charlotte Business Journal article. Trinity Partners' Rhea Greene, who leases 6201 Fairview on behalf of the landlord, was originally serving to help The Daniels Company to lease space within the building when the company decided they were interested in purchasing it. CBRE's Mike Fahey and Barney Earles served as The Daniels Company's brokers.

"This is one of those great transactions where our platforms blended seamlessly as everyone worked together to close the deal," said Adam Colvin, Trinity's Managing Partner. "And to have the new owner retain Rhea to lease the building while bringing us on board to manage the property; that's a fantastic endorsement for the team. We're really proud of everyone involved."

Located in the heart of SouthPark at the corner of Barclay Downs Drive & Fairview Road, the 58,529 square foot building constructed in 1991 provides unique amenities for tenants including direct walking access to SouthPark Mall, multiple dining options, as well as covered underground parking.

For more news and information visit Blumberg Capital Partners.

Tuesday, March 11, 2014

Equity Investment Sells Albany Square for $9.7M

Cole Credit Property Trust IV, a real estate investment trust affiliated with American Realty Capital Properties, purchased Albany Square in Albany, Georgia this week for $9.7 million free and clear of existing debt. Equity Investment Group sold the 125,038-square-foot retail power center with representation from senior managing director Brad Peterson and senior financial analyst Whitaker Leonhardt in HFF's Orlando office. Terms of the deal were not disclosed.

"Albany Square is located at the epicenter of the most dominant retail trade area in southwest Georgia," said Brad Peterson. "Albany Square is adjacent to a successful Publix Supermarkets and Target and directly across the street from the Albany Mall. With the recent addition of a new Petsmart and Party City to the retail center, combined with recent capital improvements, it feels like a brand new center."

Albany Square is located at 2707 Dawson Road in Albany and was completely renovated in 2013. The property was 97.6% leased at the time of sale.

For more news and information visit Blumberg Capital Partners.

Monday, March 10, 2014

JV Buys Fort Greene Office for $195M

A joint venture between RXR Realty and American Landmark Properties announced earlier this month that it had acquired the long-term lease of a large office building at 470 Vanderbilt Avenue, near Barclays Center in Brooklyn. Starwood Capital Group and GFI Development Company closed on the sale of its 75-year ground lease at 470 Vanderbilt for $195 million, according to a CoStar report. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale.

This week, Meridian Capital Group of New York announced that it had arranged a $142 million mortgage for the purchase of the property. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale. According to a report in CrainsNewYork.com, this is one of the largest acquisitions in the outer boroughs in recent times and yet another testament to Brooklyn's growing popularity.

"The 470 Vanderbilt Avenue acquisition represents an opportunity for us to buy a building with healthy current returns generated by credit tenants, while also participating in the amazing transformation that is taking place across Brooklyn," RXR chairman/CEO Scott Rechler said in a statement. The deal is RXR's first New York City acquisition as part of its New York Metro Emerging Sub-Market initiative, which focuses on undervalued neighborhoods that are well-positioned geographically and demographically with strong infrastructure in New York City's outer boroughs and suburban downtown districts located around transit hubs.

The 10-story, approximately 650,000-square-foot property was 88% leased at the time of sale with tenants including the City of New York and The League Education & Treatment Center, a 50-year old, internationally-recognized, not-for-profit organization serving children and adults with developmental disabilities. The building is also occupied by media and technology tenants, Aereo and Switchnet, and a state-of the-art, self-sustaining data hub for technology and telecommunications companies.

For more news and information visit Blumberg Capital Partners.

Friday, March 7, 2014

First "Salmon Safe" Building in Seattle

EMP Museum salmon safeSeattle's new EMP Museum administrative office building is the first urban in-fill project anywhere to be certified as "salmon safe," according to a press release issued by Howard S. Wright, the property builder. The EMP Museum in Seattle, Washington, received a LEED® Platinum Certification from the U.S. Green Building Council (USGBC) and is the first Salmon-Safe certified urban in-fill project to date and the first Salmon-Safe certified office building in Seattle.

Salmon-Safe, a Portland nonprofit, certifies projects that protect water quality and restore habitat, according to a Puget Sound Business Journal article. The nonprofit recognizes construction companies that implement pollution control and runoff protection measures in all of their projects.

"Our primary focus was to achieve the owner's goal of constructing a LEED Platinum building," said Brad Phillips, senior project manager at at Howard S. Wright. "We knew that in order to achieve this goal, we had to design and build an extremely high performing building envelope, and also include a high percentage of natural light – a challenge the team took to heart."

Construction on the 51,200 square foot concrete structure with four levels above grade, and one level below, began in October 2011 and was completed in June 2013 by developer Vulcan, Inc. The facility houses additional space for the Museum and includes office space, workshops, and acclimatized collections storage. Owned by Cedar Strands Properties, the project was designed by Collins Woerman of Seattle, Washington, and also earned a 2013 ENR Best Project Award for Office/Retail/Mixed-Use Developments in the Northwest in December.

For more news and information visit Blumberg Capital Partners.

Thursday, March 6, 2014

Harmon Cove Building Draws Over 50 Offers, Sells for $11.5M

One Harmon Plaza, a nearly 200,000-square-foot office building in Secaucus, NJ officially sold a couple of weeks ago as a group headed by Woodland Park-based Mountain Development Corp. purchased the property for $11.5 million. Mountain Development acquired the 10-story property from New Boston Fund Inc., Mountain Development President Michael Seeve said in a statement. Mountain Development bought the property with a partner, a fund managed by PCCP LLC, a Los Angeles-based real estate investment firm. There were more than 50 signed letters of interest before the recent sale, with 18 tours of the property and 11 firm offers made before Mountain Development's was accepted.

"One Harmon Plaza provides a solid value-add opportunity for new ownership in terms of the ability to lease up and re-position the building at competitive rents," said David Bernhaut of Cushman & Wakefield, which brokered the deal.

"The sponsor's business plan, the property's significant upside and the attractive basis drew considerable attention from a variety of institutional and private equity funds," added John Alascio of C&W's equity team.

The Jersey Journal, owned by Advance Publications, moved from its nearly 90-year-old headquarters at 30 Journal Square, Jersey City, to One Harmon Plaza in January. The newspaper relocated to the 10th floor of its new location, taking 10,000 square feet.

For more news and information visit Blumberg Capital Partners.

Wednesday, March 5, 2014

Endurance Buys York Industrial Building

ASI York, LLC, an affiliate company of Schottenstein Property Group, Inc. (SPG), sold a 624,800 square foot distribution building in York, Pennsylvania for $26 million this month. In a deal brokered by Philadelphia- based Binswanger, Endurance Real Estate Group, a diversified regional real estate company that focuses on projects in the Mid-Atlantic States, picked up the single-story distribution center. The property at 325 South Salem Church Road is located in the West Manchester Township Corporate Center, just off Route 30 and is nearby I-83.

According to a GlobeSt.com article, SPG owns interest in a diverse portfolio of more than 156 properties in 27 states in excess of 21 million square feet of gross leasable area. SPG properties are predominately anchored by national retail tenants including American Signature Inc., DSW, Inc., Bed, Bath & Beyond, Inc., Wal-Mart Stores, Inc., and TJX Companies.

For more news and information visit Blumberg Capital Partners.

Tuesday, March 4, 2014

Construction Begins on 609 Main at Texas in Houston

The new skyscraper that will change the Houston skyline broke ground this week, a development of the Hines CalPERS Green Development Fund, a partnership that focuses exclusively on developing sustainable office buildings throughout the US certifiable through the USGBC Leadership in Energy and Environmental Design (LEED) Core & Shell program. The 47-story, 1,050,000-square-foot office tower under development at the corner of Main and Texas streets is expected to be ready for occupancy after 36 months of construction.

Hines President Jeff Hines said, "609 Main at Texas is a strategic follow-on to our success with BG Group Place. We are thrilled to start construction on our second major office tower on Main Street, especially with our partner, CalPERS. We saw the trend coming several years ago when we purchased two key blocks of land on Main Street, and now our strategy has been confirmed with the start of this iconic new landmark."

"We have already had significant leasing interest among all the sectors that fuel CBD development," said Hines Senior Managing Director John Mooz. "This project will be a true ‘next-generation' office building, utilizing best practices we've learned from our previous developments in Houston and around the world. While 609 Main at Texas is designed to house multiple firms, there is obviously a significant and prestigious opportunity for an anchor tenant, including options for large trading floors and outdoor space."

Hines has owned the full-block site since 2008, according to a Houston Chronicle report, but only began site work, including the demolition of an abandoned structure, last November. 609 Main at Texas is pre-registered LEED, and is expected to attain Gold or Platinum certification upon completion. Connecticut-based Pickard Chilton designed the tower, and Houston's D.E. Harvey Builders is the general contractor.

For more news and information visit Blumberg Capital Partners.

Monday, March 3, 2014

Wells Fargo Buys Minneapolis Development for $217M

Wells Fargo & Co. announced this week that it had paid developer Ryan Companies $217 million for land in downtown Minneapolis near the new Vikings Stadium and the two office towers yet to be built at the site. The development project planned by Ryan Companies will provide office space for approximately 5,000 team members in two 17-story office towers, which are part of a $400 million mixed-use development known as Downtown East, giving the company room to relocate current Wells Fargo employees.

The transaction is one of the largest involving downtown Minneapolis commercial property in recent history, according to a Star Tribune article. Last year, Florida-based Beacon Real Estate Services acquired the 57-story IDS Center, said to be the tallest building in Minnesota, for $253 million.

"The investment in this project – more than $300 million – represents our continued commitment to downtown Minneapolis and to the state of Minnesota," said Dave Kvamme, CEO for Wells Fargo Minnesota. "We look forward to finalizing the plans and creating this additional space to better accommodate our teams, and add to the vibrancy that the Ryan project will bring for the east side of downtown."

"The commitment from Wells Fargo is a critical step in moving the Downtown East project forward," said Rick Collins, vice president of development for Ryan Companies, "and we are pleased to be partnering with a great corporate owner. We are one step closer on a project that will bring renewed energy and ongoing development momentum to the surrounding area. We continue making progress toward groundbreaking in April 2014."

For more news and information visit Blumberg Capital Partners.