Opus Group Building Spec Warehouses

The Opus Group, a family of commercial real estate development, construction and design companies headquartered in Minneapolis, will be building two new industrial warehouses in West Chester and Fairfield, Ohio. The company has not disclosed the cost of the projects, but it is likely a more than $15 million development.

In an exclusive Cincinnati Business Courier article, Andy Finn, vice president of acquisitions and investments for Founders Properties LLC, which will own the properties, said both buildings will break ground soon, and neither has a signed tenant, yet. "There's just not a whole lot of options if you're 75,000, 100,000 square feet and want to move into brand-new class A space," Finn told the paper. Founders Properties also purchased the two existing building in Port Union Commerce Park.

According to the report, Opus Group will provide construction and development services for the project. The nearly 548,000-square-foot industrial building will be located at 4350 Port Union Road in West Chester, while the 260,000-square-foot building will be located at 4250 Port Union Road in Fairfield. Finn expects both buildings to break ground soon and be delivered by late summer or early fall 2015.

For more news and information visit Blumberg Capital Partners.

Keystone Reinventing VEVA Office Park

Keystone Property Group, a commercial property developer and investor based in New York, unveiled its new plans this week for attracting tenants to VEVA, a 425,000-square -foot office complex in Blue Bell, PA. The newly redeveloped office park, formerly known as Sentry Park West, is made up of seven completely renovated mid-rise buildings surrounding a water feature in a 16-acre campus setting, with world-class lifestyle amenities and cutting-edge infrastructural upgrades, driving a revamped, holistic office environment. Reportedly, Keystone invested approximately $10 million meant to dramatically improve rental rates and increase occupancy at the site.

"At VEVA, we've created the workplace of tomorrow—a tenant experience that will attract and connect with today's forward-thinking businesses," said Bill Glazer, president of Keystone Property Group in a statement. "Businesses in the region have long been attracted to this complex due to its accessible location and high-quality office space. However, the grand-scale upgrades we've made will inspire a higher level of creativity, productivity, collaboration and imagination."

Located at 1777 Sentry Park West and just 22 miles from Philadelphia, the office property was originally completed in 1973. The new offerings for the updated property are: A fully reinvented plaza and public pavilion; a unique array of ambient lighting; enhanced inter-and-intranet connectivity; invigorated building entrances; and upgraded furniture and room design. The complex also features a premium fitness and wellness facility, modern café and lounge, a state of the art conferencing facility and collaborative outdoor "green" workspaces. Currently, VEVA is approximately 83% leased, with tenants including CIGNA, Citizens Bank, Fiberlink Communications, inVentiv Health Clinical, Morgan Stanley Smith Barney and Fesnak and Associates.

For more news and information visit Blumberg Capital Partners.

Orchard Business Park Sold for $134/sf

PS Business Parks Inc., a a publicly traded full service real estate company based in Glendale, CA, announced this week that it had acquired Orchard Business Park in San Jose for $16 million, or $134 per square foot. PS Business Parks purchased the the 8-acre complex from Colony Capital in a transaction arranged by a CBRE team led by Joseph Moriarty, out of the brokerage's San Jose office, according to a Silicon Valley Business Journal article. The acquisition increases the company's presence in the Bay Area to 7.2 million square feet, comprised of 30 business parks located throughout the East Bay, Mid-Peninsula and Silicon Valley markets, which is currently 95.8% leased.

"Orchard Business Park is a great addition to PSB's vibrant Bay Area portfolio, where the company serves the needs of over 930 customers that are attracted to our well located portfolio of flex, office and industrial parks," said Joseph Russell, president and CEO of PS Business Parks in a press release. "With 80% of the leases at Orchard Business Park expiring over the next 24 months, we anticipate meaningful demand from both existing and new customers along with strong rental rate appreciation, consistent with the performance of our Bay Area parks."

For more news and information visit Blumberg Capital Partners.

Canadian REIT Buys $69M US Portfolio

Granite Real Estate Investment Trust announced this week that it had purchased a portfolio of three properties from subsidiaries of Ingram Micro Inc. for $68.75 million. While representation or full terms of the deals were not disclosed, Granite did note in a press release that the investment would be funded with the company's line of credit and cash on hand.

The portfolio consists of two logistics distribution facilities in Plainfield, Indiana wit a total of 1,033,520 square feet of space (533,520 and 500,000 respectively), including a total of approximately 140,000 square feet of finished office space; the buildings were constructed in 2009 and 1999. In addition to the two Plainfield buildings, Granite REIT also agreed to purchase 29 acres of adjacent expansion/development land in the AllPoints Midwest Business Park, which provides for up to 585,000 square feet of additional new logistics - industrial space.

"The Indianapolis industrial market is on an absolute tear," commented Jason Tolliver, regional vice president in Cassidy Turley's Indianapolis office. "The traditional drivers of industrial space like housing, manufacturing and warehousing are solid, but the new engine of e-commerce has shifted the market into another gear. As a result, Indianapolis has emerged as one of the strongest markets in the US with some of the largest e-commerce deals completed anywhere in the country."

For more news and information visit Blumberg Capital Partners.

DC's West End Redevelopment Breaks Ground

Ground broke this week on the West End redevelopment in Washington, DC, a project that will bring a 21,000-square-foot library and 7,300 square feet of retail topped by 164 market-rate units and a new fire station. EastBanc Inc., a real estate redevelopment company headquartered in the historic Georgetown Post Office it purchased this fall, was selected to develop the space in March 2010. West End Residential LLC, a JV led by EastBanc, is developing the project with the District in a a public-private partnership.

"This really has been a long time coming," said Mayor Vincent Gray, during what will likely be the last major groundbreaking of his only term. "It shows that perseverance does indeed pay off."

"The West End, when we started, was a bunch of parking lots that Oliver Carr didn't get to," said EastBanc President Anthony Lanier. "We wrapped it up." This latest project "finishes off" the neighborhood between Georgetown and Dupont Circle, he added.

The $150 million West End project, encompassing a square West End block for Squares 37 and 50, 2301 L Street NW, anticipates a ribbon-cutting in 2017. The West End team, EastBanc-W.D.C. Partners LLC, includes EastBanc, The Warrenton Group, Dantes Partners, L. S. Caldwell & Associates and The JBG Companies (as an equity partner). The two buildings were designed by TEN Arquitectos.

For more news and information visit Blumberg Capital Partners.

Circuit Tempe Conversion Begins

A 16.5-acre property previously housed a semiconductor manufacturing plant for Jabil Circuit in Tempe is getting a new life as conversions have begun to transform the space into a Class A office building geared toward millennials and creative users. CarVal Investors and EverWest Real Estate Partners purchased the dormant property this past July for $11.4 million, and engaged Gensler to redesign the masonry industrial building. The new project, dubbed Circuit Tempe, is planned for completion in April 2015. Jerry Noble, Pat Devine, Jackie Orcutt and Ryan Bartos of Cushman & Wakefield of Arizona serve as exclusive leasing agents for The Circuit Tempe.

"This acquisition was underwritten for high-end office from the start," said Curt Kremer, managing director of acquisitions with EverWest. "We identified the facility as a great opportunity for a project unlike any other in the marketplace. The location at the Loop 101 and 202 and its proximity to Arizona State University is ideal for delivering our vision."

According to a new Cushman & Wakefield report "Facing the Millennial Wave", today's millennial office users are seeking expansive floor plates conducive to the flexible, collaborative-based workspace concept. The "open space" ambiance at The Circuit Tempe will be completed with 17-foot ceiling heights and an abundance of natural light through the addition of 60+ skylights, new 14' floor to ceiling high-performance windows, and large glass roll up doors.

For more news and information visit Blumberg Capital Partners.

Sam Houston Crossing I Sold to JV

A joint venture between Fuller Realty Partners and Independencia have closed on the purchase of Sam Houston Crossing I, a Class A office building in northwest Houston. The JV, named SH Crossing I, LP, purchased the property from Duke Realty Corporation and Chambers Street Properties. The building was marketed by HFF, which also represented the seller in the transaction. Full terms of the deal were not disclosed.

"Sam Houston Crossing I offers investors a stable current yield while providing significant upside potential," said HFF director Martin Hogan in a press release. "The building accommodates higher density tenants looking for a high profile location with Beltway 8 frontage, efficient, rectangular floor plates and a 5/1,000 parking ratio."

Located in Houston's West Belt Corridor off of the Sam Houston Parkway, Sam Houston Crossing I was completed in 2007 with a typical floor plate offering 53,000 square feet of rentable space. The 159,175 square foot building is 100% leased to six tenants: U.S. Steel; Farmers Insurance Exchange; C.H. Robinson Project Logistics; Brock Enterprises; Axon EP; and AMEC Oil & Gas.

For more news and information visit Blumberg Capital Partners.

Nakash Holdings Buys Setai in SoBe for $90M

Nakash Holdings, the investment company arm of the world-famous Jordache empire, announced that it is purchasing The Setai Hotel in South Beach, Florida. Terms of the deal and representation on the property that had previously been owned by the estate of Lehman Brothers Holdings Inc. were not disclosed.

Built in 1936-1938 as the Dempsey Vanderbilt Hotel, the 130-room Setai at 2001 Collins Ave. is located in the heart of South Beach's Art Deco district and offers direct access to the beach. With 85 hotel suites and another 35 condo units, the price averages out to $750,000 per room. That makes it one of the highest per-room sales ever in Miami Beach, said Scott Brush, a Miami-based hotel consultant. The condo units are privately owned, but most can be rented through the hotel program. The Nakash family also owns around 15 units in the Setai residence.

"The Setai is really the crown jewel of Miami Beach," said Jonathan Bennett, managing director of Nakash Holdings, the real estate division of Jordache. "It is the epitome of luxury in that city. We've enjoyed spending time there, and when it came up for sale, we knew it was something that would be a great fit for us. It's special and unique, and there's nothing else on the Beach that can compete with it."

In Miami, the Nakash family also own the Versace mansion, renamed Casa Casuarina, which they bought at auction for $41.5 million last year, according to a New York Post article. It is adjacent to the Victor Hotel, which Nakash Holdings also owns.

For more news and information visit Blumberg Capital Partners.

DivcoWest, Maguire Form JV for Water's Edge

San Francisco real estate investment firm DivcoWest announced this week that it had completed a joint venture with Maguire Investments to own Water's Edge in West Los Angeles’ Playa Vista submarket near Marina del Rey, with plans to develop a state-of-the-art third building as part of an integrated campus dubbed WE3. Terms of the venture were not disclosed, but in a press release Robert Maguire III of Maguire Investments said that the partnership has the resources to spend nearly $70 million constructing WE3.

Maguire led development of several of L.A.'s best-known office buildings in the 1980s and '90s including U.S. Bank Tower, the tallest structure in Southern California. He has held part interest in Water's Edge at the intersection of Lincoln and Jefferson boulevards since he erected two buildings there in 2002, according to a Los Angeles Times article. The two existing buildings, constructed in 2002, are together nearly 90% leased to tenants including Electronic Arts Inc., Popchips Inc. and an outpost for health club chain L.A. Fitness.

Designed for the creative community, the third building, WE3, will have 14-foot ceilings, exposed ductwork, large operable windows to let in natural ventilation and light, and splashes of color throughout. It will share the existing amenities at the Water’s Edge campus including an LA Fitness gym, a cafe, a soccer field, a basketball court, a sand volleyball court and an Olympic- length lap pool. The JV hopes to begin work by the middle of next year after planning is complete and city approvals are secured.

"We believe this market, like other tech enclaves around the country, offers the unique set of advantages that are needed to recruit and retain top notch talent," said Stuart Shiff, CEO of DivcoWest. "Here in Los Angeles that means living and working near the ocean with rich amenities and being amongst a broad swath of tech companies, all of which Playa Vista offers. We look forward to working with Rob Maguire of Maguire Investments to complete his strategic vision for this community."

For more news and information visit Blumberg Capital Partners.

Preferred Office Locations

NAIOP, the trade association for developers, owners and investors in industrial, office and related commercial real estate, hosted a webinar with Emil Malizia titled Preferred Office Locations: Comparing Location Preferences and Performance of Office Space in CBDs, Suburban Vibrant Centers and Suburban Areas, which shines a light on location preference when picking an office location. The study, which combines expert opinion and accurate property-level data, provides reliable information about emerging location preferences across major U.S. office markets and the comparative performance of office space in CBDs, suburban vibrant centers — defined as amenity-rich, mixed-use, "live, work, play" locations — and typical single-use suburban areas.

The study sought to address five questions:

1. Do office tenants prefer CBDs to suburban areas?

2. Do office tenants prefer suburban vibrant centers to typical single-use suburban environments?

3. Are office properties in CBDs performing better than those in typical single-use suburban office areas?

4. Are office properties in suburban vibrant centers outperforming those in typical single-use suburban office areas?

5. Are suburban vibrant centers preferred to or performing better than CBDs in their market areas?

Overall, office tenants showed no strong preference for either downtown or suburban locations. The study did, however, reveal a clear preference for suburban vibrant centers over typical single-use suburban office environments, and demonstrated that office properties in suburban vibrant centers are outperforming those in typical single-use suburban office areas on almost all metrics.

To download and watch the webinar, click here. For more news and information visit Blumberg Capital Partners.

KAR Properties Grabs Another Miami Asset

KAR Properties, the New York-based real estate manager and developer led by CEO Shahab Karmely, has made another move on the Miami River with the acquisition of a 1.03-acre site in Wynwood for $12.5 million. KAR purchased the property in a cash transaction from Mega Shoes, represented by the Aztec Group; terms of the deal were not disclosed. Zoned for industrial development, the 27,500 square foot lot previously sold in 1995 for $280,000.

The purchase is the fifth for the company in South Florida, having most recently purchased a 1.3-acre oceanfront site in Hallandale Beach, and previously the property at Southwest 3rd Street between Miami Avenue and Southwest First Avenue for $33 million. All told, the firm has invested over $100 million in South Florida and points to additional acquisitions in the months ahead at a time when land prices are climbing fast, according to a GlobeSt.com report.

"These assets are strategic and focused on South Florida's emerging and established neighborhoods," said Shahab Karmely. "Each project will be in synergy with the other, creating a connection between the beach, arts and design neighborhood and burgeoning Miami River district. Wynwood, with its vibrant arts scene, is a significant catalyst to Miami's evolution as a global city, and we are pleased to have acquired this well located parcel."

For more news and information visit Blumberg Capital Partners.

Kimco Buys Out Blackstone's Interest in Kimstone Portfolio

Kimco Realty Corp. announced this week that it had executed a contract to acquire the remaining 66.67% interest in the Kimstone portfolio from a subsidiary of Blackstone Real Estate Partners VII for a price of $925 million, which includes the assumption of approximately $426.7 million in mortgage debt. Under the deal, Kimco will pay Blackstone approximately $512.3 million to acquire the portfolio in total, using a combination of proceeds from recently completed and pending property sales in the U.S. and Latin America as well as availability under its existing $1.75 billion revolving credit facility. With this acquisition, Kimco Realty continues to advance on its plan to reduce the number of properties in joint ventures, while adding retail assets to its wholly-owned portfolio.

Spanning 5.6 million square feet with a high occupancy rate (97%),the Kimstone portfolio comprises grocery-anchored shopping centers and dominant power centers concentrated in the core markets of New York, Virginia, Texas, Florida, California and Maryland. Major assets in the portfolio include: 280 Metro Center, a 228,000 square foot property located in the San Francisco Bay Area of Colma, California; Airport Plaza, a 437,000 square foot power center, located in the densely populated, high income Long Island community of Farmingdale, New York; Dulles Town Crossing, a 799,000 square foot, fully occupied power center located in Sterling, Virginia; and Stafford Marketplace, a 331,000 square foot, fully occupied grocery anchored shopping center is located in Stafford, Virginia.

For more news and information visit Blumberg Capital Partners.

Cushman & Wakefield Buy Massey Knakal for $100M

In the bidding tournament to acquire Massey Knakal Realty Services, Cushman & Wakefield won out and has agreed to pay about $100 million to acquire New York's No. 1 Investment Sales firm (based on transaction volume) for more than a decade. The deal is expected to be completed by year's end; Cushman & Wakefield was advised in the acquisition process by Goldman, Sachs & Co. while Massey Knakal was advised by Perella Weinberg Partners.

Founded in 1988 by Paul Massey Jr. and Robert Knakal, Massey Knakal has closed more than 5,000 transactions in the New York area with a market value in excess of $21 billion. Earlier this year, the firm retained Perella Weinberg Partners to shop a minority stake or the entire firm to potential buyers, according to various media reports. In addition to Cushman, CBRE and DTZ were reported to be interested in the firm, according to a CoStar article.

"From the outside looking in, this is a great fit and opportunity for both firms to continue to grow and provide their clients with an added level of expertise on a global platform," said Ric Clark, Chief Executive Officer of Brookfield Property Partners and a member of Massey Knakal's Board of Advisors. "Paul and Bob are strong leaders joining a strong brand in Cushman & Wakefield, which resonates in the industry all over the world. I expect to see great things from this collaboration in the years ahead."

For more news and information visit Blumberg Capital Partners.

W. P. Carey Affiliate Buys MN Office Building for $34M

CPA®:17 – Global, one of W. P. Carey Inc.'s managed non-traded REITs, has purchased a Class A office building in Plymouth, Minnesota for $34 million. The name of the seller, broker representation or terms of the sale were not disclosed; however, W. P. Carey did note in a press release that the building will be leased to Smith's Medical commencing in February 2015.

"Having recently acquired an asset in the submarket on behalf of another of our managed REITs, we are pleased to add this asset to CPA®:17 – Global's portfolio," said Gino Sabatini, managing director and co-head of global investments for W. P. Carey. "Plymouth, which is recognized as the healthiest submarket in the Twin Cities, is an area comprised of 25.5-million-square-feet of office space with a reported 7.2% vacancy rate."

The 182,000 square foot building at 6000 Nathan Lane N. was constructed in 1999 as part of a mixed-used development comprised of retail, residential and restaurant space. Smiths Medical, a leading supplier of specialist medical devices, consumables and equipment that operates in over 30 countries, has selected the building as its future headquarters as part of a broader initiative to reduce costs.

"This facility will allow us to consolidate our global headquarters functions and personnel, as part of a broader initiative to improve co-location, collaboration, cost and productivity," said Jeff McCaulley, president and CEO of Smiths Medical, in a press statement. " The new facility will allow us to create a modern and engaging work environment, while the decision to consolidate in the Twin Cities allows us to capitalize on the great talent and business environment in the region."

For more news and information visit Blumberg Capital Partners.

550 Biltmore in Coral Gables Sold for $50M

The multi-tenant office and mixed-used project at 550 Biltmore in Coral Gables, Florida sold this month as a Prudential Real Estate Investors affiliate listed as PR 550 Biltmore Way purchased the property for $50.2 million. The trophy property was sold by KPERS Realty Holding #39, which is managed by Boston-based AEW Capital Management, in a deal brokered by CBRE. Terms of the deal were not disclosed. The building last sold in 2004 for $35.8 million.

"While Coral Gables always draws significant investor interest, 550 Biltmore surpassed the norm," said Christian Lee, vice chairman of CBRE. "We believe that is attributable to factors including: the high quality of the building itself, an increased demand by both domestic and off-shore capital for trophy properties and an overall improvement in the office market fundamentals."

"550 Biltmore's iconic, pyramid-shaped design affords its tenants with a plethora of outdoor terraces from which to enjoy the sublime Coral Gables cityscape of world-class golf courses, historical Mediterranean revival buildings, magnificent fountained plazas, a vibrant commercial core, and a lush and verdant landscape that crystallizes the ‘City Beautiful' movement that drove the City's design and incorporation nearly 100 years ago," added José Lobón, CBRE Senior Associate.

Originally constructed in 1986 by Miami developer Al Sakolsky, 550 Biltmore is a 160,000-square-foot, 14-story pyramidal landmark in downtown Coral Gables with a facade of imported Italian travertine marble and black granite. The building has been awarded multiple Energy Star labels for operating efficiencies, with a current Energy Star rating of "94", owed in part to the $4 million in capital improvements made since 2004. At the time of sale, the property was 86.4% leased and is anchored by UBS, which occupies more than 40,000 square feet and has entered a long-term lease expansion.

For more news and information visit Blumberg Capital Partners.

CRE Outlook Forum Voices

EisnerAmper & Bloomberg hosted a business and political perspective breakfast forum this week called "Commercial Real Estate Outlook 2015 & Beyond" in New York, inviting a panel of commercial real estate professionals to discuss the outlook of the economy and its impact on CRE. The panelists included Scott Rechler, CEO of RXR Realty, Joseph Sitt CEO of Thor Equities, Steven Witkoff, CEO of The Witkoff Group, Brian Harris, CEO of Ladder Capital, and Peter Sotoloff, CIO of Mack Real Estate Credit Strategies. GlobeSt.com covered the even in an article titled "The Dealer Has Reshuffled the Deck"; an excerpt follows:

What's driving that economy? asked Scott Rechler, CEO of RXR Realty. In word, "talent." Employers, and therefore office landlords, need workplaces that attract that talent, but that imperative goes beyond the office space and into the surrounding neighborhood. It has changed the dynamic not only of office, Rechler said, "but also how everyone looks at real estate in totality."

Rechler also added on to Sitt's observation about a new hand of cards. The deck is reshuffled at least every year, he said, and everyone needs to be aware of shifts in the market as they occur.

As a case in point, he cited RXR's current strategy compared to the one it pursued a few years earlier. As the downturn evolved into the recovery, the company rode the wave by snapping up attractive properties at attractive prices. More recently, the playing field has become far more competitive and "we're not in an investment market right now."

Asked where development is taking place, Sitt countered that a better question would be where it isn't taking place. Cranes dot the horizons everywhere, even amid rising costs for both construction and acquisition of developable parcels, as CEO Steven Witkoff of the Witkoff Group pointed out. On the other hand, Witkoff added, "I think the market is healthy."

For more news and information visit Blumberg Capital Partners.

Rosemont Buys Houston's Kirkwood Tower

Rosemont Realty, the Santa Fe-based commercial real estate agency, announced this week that it had purchased Kirkwood Tower in Houston, Texas. A joint venture between Denver-based Amstar and Dallas-based Frontier Equity sold the 286,000-square foot Class A 15-story tower for an undisclosed price. HFF's H. Dan Miller, senior managing director, Robert Williamson, senior managing director and Martin T. Hogan, director, brokered the transaction, with assistance from Wesley Hightower, real estate analyst. Susan Hill, senior managing director with HFF, assisted in financing the project.

Amstar, in partnership with Frontier Equity, acquired the 70% leased property in 2012 off-market with the objective of stabilizing the property through an aggressive leasing and capital expense campaign. During the partnership's ownership, more than $1.2 million of renovations were completed including upgrades to the common areas and curtain wall. Occupancy increased to more than 90% to a roster of high quality tenants, some of which have been in the building since construction.

"The addition of Kirkwood continues our overall strategy of expanding in key markets where we have a substantial presence," said Michael Mahony, chief executive officer of Rosemont Realty. "Adding Kirkwood to our portfolio bolsters our existing footprint in Houston, where we have the support and infrastructure in place to provide first class, full-service asset and property management, and leasing services."

"Kirkwood was a textbook value-add investment for Amstar where a property in need of proactive management and aggressive leasing was identified in a fundamentally improving market," said Amstar Managing Director Daniel Cohen. "Frontier was instrumental to our success and a great partner to work with from beginning to end. Now we are able to sell at a time when demand for stable office investments is arguably at peak levels."

For more news and information visit Blumberg Capital Partners.

Desert Ridge Corporate Center Sold for $59M

CBRE announced that it had completed the sale of Desert Ridge Corporate Center in Phoenix, Arizona for $58.6 million, negotiating the sale between the buyer, Los Angeles-based Regent Properties, and the seller, FCA Partners, LLC of Charlotte, North Carolina. The property previously sold Desert Ridge Corporate Center (DRCC) in 2008 by the Southwestern Division of Ryan Companies US, Inc. in Phoenix for $81.6 million in a deal also brokered by CBRE. The property is located on land encumbered by a State of Arizona ground lease with 78 years remaining.

"Despite the fact the property is not fully stabilized, Desert Ridge Corporate Center attracted significant interest from local, regional and national buyers," said CBRE's Barry Gabel. "This is definitely a testament to the continued recovery of the Phoenix investment market as well as the resiliency of the Paradise Valley submarket, which continues to perform at the top of the metro Phoenix market."

"Desert Ridge fits perfectly within our strategy of buying value-added office properties across the western United States," said Eric Fleiss, President of Regent Properties. "We are committed, experienced investors in the Phoenix market specifically, and believe this high-quality asset is a great addition to our portfolio."

The three building property at 20860, 20830 and 20910 N. Tatum Blvd. consists of two class A office buildings and a multi-tenant specialty retail building. At the time of sale, DRCC was 75% leased with major tenants including GEICO Insurance, Vantage Retirement, Wells Fargo Bank, C.H. Robinson Worldwide, K. Hovnanian Homes, Summit Energy, SimonMed Imaging and Scottrade.

For more news and information visit Blumberg Capital Partners.

Hudson Pacific Picks Up California Office Buildings for $3.5B

In another big move for Blackstone this month, it was announced that Hudson Pacific Properties, Inc. will acquire Equity Office Properties' San Francisco Peninsula and Silicon Valley portfolio from Blackstone Real Estate Partners V and VI in a stock and cash transaction valued at $3.5 billion. The transfer brings together two highly complementary office portfolios with a combined asset base of 53 properties totaling approximately 14.6 million square feet across Northern and Southern California and the Pacific Northwest.

The off-market transaction will effectively double Hudson's size and result in Hudson having an equity market capitalization of $3.7 billion and total enterprise value of approximately $6.5 billion. The transaction is subject to customary closing conditions, including Hudson stockholder approval of the proposed equity issuance. Affiliates of Farallon Capital Management, L.L.C., which own approximately 15% of the outstanding common equity on a fully diluted basis, have entered into a voting agreement supporting the transaction.

"The acquisition of the EOP Northern California Portfolio perfectly aligns with our strategy to acquire high-quality office properties in West Coast markets poised for continued growth through off-market transactions. Hudson has long targeted these two Northern California regions for expansion, and while we expect the transaction to be immediately accretive to FFO, we also intend to move quickly to employ our leasing, repositioning and development expertise to extract additional value for our stockholders," said Victor Coleman, Hudson Pacific Properties' Chairman and Chief Executive Officer.

"We chose to take a major stake in Hudson given its high-quality portfolio, outstanding management team and attractive prospects for growth. We believe strongly in the upside potential of the EOP Northern California Portfolio and this combination creates a market-leading West Coast office REIT," said Jonathan Gray, Blackstone's Global Head of Real Estate.

"As long time shareholders, we are excited about Hudson's latest growth opportunity, and are confident that they will continue their excellent track record of execution," added Rocky Fried, Managing Member at Farallon Capital Management.

For more news and information visit Blumberg Capital Partners.

GLP, GIC Make $8.1B IndCor Purchase

Blackstone announced this week that Blackstone Real Estate Partners VI & VII agreed to sell IndCor Properties to affiliates of GIC, Singapore's sovereign wealth fund, for $8.1 billion. GIC's partner in the acquisition is Global Logistic Properties Ltd., one of the largest owners of warehouses and other industrial property in Asia, according to a Wall Street Journal article. GIC is estimated by the Sovereign Wealth Fund Institute to manage around $320 billion in assets; real estate accounted for 7% of its portfolio in the financial year to April 1, according to its annual report. Closing is expected to occur in the first quarter of 2015. Eastdil Secured, Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone in the transaction.

Tim Beaudin, IndCor CEO, said: "We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company's future prospects under new long-term ownership with GIC." As a result of this transaction, IndCor will no longer be pursuing an IPO. The sale is the latest in a string by Blackstone's real estate unit, which has returned more than $16 billion to fund investors since the end of the third quarter of 2013. This year the firm has sold five Boston office buildings totaling 3.3 million square feet, along with shares of hotel operator Extended Stay America Inc., shopping-center owner Brixmor Property Group Inc. and Hilton Worldwide Holdings Inc., according to a Bloomberg report.

For more news and information visit Blumberg Capital Partners.

CenterPoint Makes More Seattle Industrial Moves

CenterPoint Properties, the Oak Brook, Illinois-based real estate developer, announced that it had purchased two more industrial properties in the Seattle area, paying a total of $48.3 million for the assets. CenterPoint has invested in half a dozen Puget Sound-area properties totaling nearly 1 million square feet over the past 12 months, with CenterPoint Senior Vice President Jim Linn stating that the company seeks to grow its presence in the Seattle port market by more than 1 million square feet annually.

According to a Puget Sound Business Journal article, CenterPoint recently paid $31.9 million for a nearly 24.5-acre container/storage yard with a nearly 232,000-square-foot industrial building at 8801 E. Marginal Way S., in Tukwila. It was purchased from a limited liability company whose manager is Washington Real Estate Holdings of Seattle, which bought the property from Paccar for $11 million ten years ago. The second property at 3480 West Marginal Way S.W., along the Duwamish West Waterway near Harbor Island, was $16.4 million for the 157,150-square-foot "multi-modal trans-load facility". Records list the seller as First Industrial of Chicago and show that the company had bought the facility for nearly $5.9 million four years ago.

For more news and information visit Blumberg Capital Partners.