Trammell, Principal Break Ground on The Brickyard

Trammell Crow Co., the Dallas-based real estate development, investment and operations company, and joint venture partner Principal Real Estate Investors broke ground this week on The Brickyard, a Class A industrial project in Compton, CA. The two-building project, one of 525,400 square feet and the other 481,600 square feet, will be constructed simultaneously and is scheduled for completion in July 2016. The project is being marketed jointly by John Schumacher, Bret Quinlan, David Stromath, and Dean Haney of CBRE; the cost of The Brickyard development was not disclosed.

"We are excited to be working with Mayor Aja Brown and Councilmember Janna Zurita on this industrial opportunity in Compton," said Brad Cox, Senior Managing Director with Trammell Crow's Southern California – Los Angeles Business Unit in a press release. "This is a rare and unique property situated in the epicenter of Los Angeles County, surrounded by more than 14.8 million people within a 50-mile radius. The Brickyard is the ideal site to develop a distribution/logistics or manufacturing center and bring economic growth to this area."

"I am excited to see Trammell Crow take on such a grand project," added Mayor Aja Brown. "From day one they have been committed to the city of Compton and transforming this site. They have been very responsible and giving corporate partners who believe in Compton and have shown that through their investment in us. Promises made and promises kept."

For more news and information visit Blumberg Partners.

Brandywine Completes Sale of NJ Office Buildings for $56.5M

Radnor, PA-based Brandywine Realty Trust announced this week that it has completed the sale of six suburban office buildings in Mount Laurel, New Jersey for $56.5 million, and secured a $130 million loan for the refinancing of One Commerce Square in Philadelphia, Pennsylvania. Terms for the sale of the 560,100 square foot portfolio was not disclosed, nor were the actual addresses of the buildings or buyer's names included in a company press release, but Brandywine did indicate that it had received $65.8 million of net proceeds and expected to use the net proceeds to fund current development commitments, reduce debt and general corporate purposes.

"The transactions reinforce our stated goals of prefunding our development pipeline and further improving our financial capacity through accelerated dispositions," stated Gerard Sweeney, President and Chief Executive Officer of Brandywine Realty Trust, in a press release last week outlining similar property sales. "The other asset sales represent our continued efforts to reduce our ownership in non-core assets and markets. As evidenced by these transactions, the current investment market remains strong and, consistent with our 2016 guidance, we anticipate additional sales between now and the first half of 2016."

For more news and information visit Blumberg Partners.

Global Investor Report: Real Estate Continues to Appeal

Colliers International released its Global Investor Outlook for 2016, which gathers information from over 600 global investors, and revealed that investor sentiment toward real estate is projected to remain positive globally in the new year. Over half of the respondents said they will increase fund allocations to real estate in 2016, while only 11% plan for a decrease, which is on track for continued growth in 2016.

"Our global analysis in this report gives a unique macro-view, providing a comprehensive look at the health of the economy as well as in-depth views of market sentiment that serve as a useful bellwether for local markets worldwide," said John B. Friedrichsen, Chief Financial Officer at Colliers International, in a press release. "Our report suggests that the days of 'pass the parcel' are over, and long term secure investment in core markets will be the norm. At the other end of the risk spectrum, large volumes of capital already raised will increasingly seek out opportunities in tier-two cities and recovering markets."

Highlights from the report include:

Real estate continues to appeal.
Sentiment toward real estate remains positive, with global transactions set to exceed 2014 levels by year end and nearing pre-financial crisis levels. More than half of the respondents with multi-asset portfolios also said that they would increase their real estate allocations in the next 12 months.

Liquid markets still preferred.
While the “search for yield” has pushed some investors up the risk curve toward secondary assets and more peripheral markets, the most liquid markets (U.S., U.K., Germany, Australia and Japan) and global gateway cities (London, Paris, New York, San Francisco, Tokyo and Sydney) remain the primary target for global cross-border investors over the next 12 months. In entering peripheral, higher-yielding markets, liquidity is being seen as an obstacle.

Hot pricing.
2016 will see a greater emphasis on secure income and asset management to drive performance. For some investors, it’s getting harder to achieve return expectations, particularly in “overcrowded” core markets, which are seen as expensive and fully priced by many. Some fund managers cite a growing misalignment between their client return expectations and what the market offers.

Return of debt.
More investors will use debt to finance acquisitions, suggesting that the equity phase of the cycle is giving way to a debt phase. This is particularly true of Continental Europe, where interest rates are likely to stay low for longer and further QE rounds from the ECB are expected.

For more news and information visit Blumberg Partners.

First Potomac Sells Cedar Hill I and III for $27.3M

Bethesda, MD-based First Potomac Realty Trust announced this week that it had sold two office buildings in Tyson's Corner, Virginia for gross proceeds of $27.3 million. Cedar Hill I and III were first acquired by First Potomac in 2011 from PNC Realty Investors, Inc. for $22.8 million; the company stated in a press release that proceeds from the sale will be utilized to fund the previously announced redemption of $2.2 million Series A preferred shares.

"As we continue to execute on phase one of our strategic plan to improve our portfolio and strengthen our balance sheet, the sale of Cedar Hill I and III, and the redemption of a portion of our preferred shares, reinforces our effort to create substantial value for our shareholders," said Robert Milkovich, CEO of First Potomac Realty Trust. Jones Lang LaSalle represented First Potomac in the sale of Cedar Hill I & III.

Cedar Hill I, located at 2222 Gallows Road, and Cedar Hill III, located at 2216 Gallows Road, are 100% leased primarily to the United States State Department's GSA through 2020 and 2019 respectively. The two three-story office buildings total 102,632 square feet and were constructed in the late 1980s. For more news and information visit Blumberg Partners.

$237M Patriots Plaza Recapitalization

Multi-Employer Property Trust (MEPT) and its real estate advisor, Bentall Kennedy Limited Partnership, announced the recapitalization of Patriots Plaza in DC, forming a joint venture partnership through the sale of a "significant interest" in the property to Ärzteversorgung Westfalen-Lippe (ÄVWL), an institution of the Medical Association of Westfalen-Lippe, one of the largest pension funds in Germany. According to a CoStar report, MEPT sold a 49% stake in the 981,116-square-foot office complex, which was built by MEPT and Trammell Crow Co. in the late 2000's. Genesis International represented ÄVWL in the acquisition while Eastdil Secured represented MEPT in the sale. Clifford Chance acted as counsel and PWC as tax advisor for ÄVWL.

"MEPT is pleased to be commencing a strategic partnership with ÄVWL, a well-capitalized and sophisticated global investor, and at the same time, consistent with MEPT's strategic objectives, further optimizing its Washington, D.C. area allocation and providing for redeployment of the sale proceeds," said David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy, in a press release.

The office buildings at 355, 375, 395 E Street SW were built by MEPT and Trammell Crow in three phases - Patriots Plaza I, a 280,001 square foot, twelve-story office building was completed in 2005 and Patriots Plaza Phases II and III, encompassing 701,589 square feet in two buildings, were completed in 2009 and achieved LEED Gold certification. At the time of sale, Patriots Plaza was approximately 90% leased with the FBI, U.S. Department of Agriculture, Department of Health and Human Services and FEMA anchoring the complex.

For more news and information visit Blumberg Partners.

Union Investment Buys Amazon Phase VI for $299M

Union Investment, one of Germany's largest real-estate fund managers and the investment arm of the DZ Bank Group, announced that it has purchased the Amazon's Phase VI office complex in Seattle's South Lake Union market for $299 million, or approximately $757 per square foot. Seattle-based Vulcan Real Estate sold the two-building property in a deal brokered by CBRE Group Inc.’s Kevin A. Shannon. Union Investment was advised on the deal by Metzler Real Estate and represented by Mayer Brown, while Vulcan Real Estate was represented by Foster Pepper PLLC.

"Seattle is one of the fastest-growing U.S. cities, and highly attractive to young, well-educated employees, so it provides ideal conditions for our increased international focus," said Martin Brühl, an executive at Union Investment, in a statement. The complex at 515 Westlake Avenue North and 500 Ninth Avenue North was bought by Union for its open-ended, Unilmmo: Europa fund. Amazon Phase VI is part of a 1 million-square-foot expansion of Amazon' South Lake Union campus that Vulcan developed. Two other buildings — Phases VII and VIII — were finished this summer as part of the expansion and are not for sale.

In concert with the announcement, Vulcan said several signature eateries would be moving into the complex’s 15,000 square feet of retail space. Early next year, Ethan Stowell plans to open a Ballard Pizza Co. location in the 500 Ninth Avenue North building. In June, Seattle restaurateur Josh Henderson will open Poulet Galore, Vestal and Cantine Bottle Shop and Bar in the same building. And Seattle dnut company Frost will open a store next summer in 515 Westlake Avenue North.

For more news and information visit Blumberg Partners.

Water Ridge Office Park Sold for $115M

A partnership managed by Mainstreet Capital has sold Water Ridge Office Park in suburban Charlotte, North Carolina in a $115 million sale arranged by Holliday Fenoglio Fowler, L.P. (HFF). New York Life Real Estate Investors coordinated the acquisition of the 11-building, 844,958-square-foot, Class A office park on behalf of New York Life Insurance Company who purchased the portfolio. Mainstreet Capital Partners and Goldman Sachs Group Inc. listed the portfolio for sale this spring. The property previously traded hands in January 2013 when Archon Group, the real estate investment and management arm of Goldman Sachs Group Inc., together with Mainstreet purchased the office park from affiliates of TIAA-CREF for $75 million.

"Given Water Ridge's proximity to the airport, Downtown Charlotte and numerous residential areas, the park has experienced tremendous leasing demand and rents have climbed considerably over the last few years," said Ryan Clutter, Senior Managing Director at HFF, who represented the seller. "This well positioned office park received strong interest from institutional capital who continue to have a strong appetite for Charlotte opportunities."

The buildings at Water Ridge, formerly known as LakePointe Office Park, were 82% occupied at the time of sale with major tenants including The Vanguard Group, SunTrust Banks Inc., Carolinas HealthCare System, Publix Super Markets and Midrex Technologies Inc. Built between 1989 and 2001, the park has undergone an extensive renovation in the past year with updates to many of the lobbies, restrooms and elevators throughout the park.

For more news and information visit Blumberg Partners.

Exeter Sells US Industrial Portfolio for $3.15B

Industrial property specialist Exeter Property Group announced that it has sold a 58 million square foot portfolio of core industrial properties to a joint venture of Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Public Sector Pension Investment Board (PSP Investments), one of the largest Canadian pension investment managers, for $3.15 billion. Terms of the deal were not disclosed, though press releases noted that Exeter invested in the joint venture and will also continue to manage the purchased properties. Exeter was represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Silverang, Donohoe, Rosenzweig & Haltzman, LLC, while ADIA was represented by Kirkland & Ellis LLP, and PSP Investments was represented by Davies Ward Phillips & Vineberg LLP and Torys LLP.

The deal is one of the largest industrial real estate transactions of the year, with 209 high-quality industrial assets located in 25 key distribution markets throughout the United States, most of which are modern bulk warehouses that provide critical infrastructure supporting both e-commerce and traditional retailers, suppliers and wholesalers. Among the other mega industrial portfolios that traded this year involved Blackstone Group completing an $8 billion sale, Prologis in a $5.9 billion acquisition and Industrial Income Trust selling its properties for 4.5 billion, according to a Philadelphia Business Journal article. The portfolio was marketed by Eastdil Secured and CBRE.

"We are very pleased to have concluded the sale of this exceptional portfolio of industrial properties on behalf of our investors. ADIA and PSP Investments are two of the most highly-regarded international real estate investors, and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad," said Ward Fitzgerald, Chief Executive Officer of Exeter, in a press release.

Neil Cunningham, Senior Vice President, Global Head of Real Estate Investments at PSP Investments, added: "PSP Investments is pleased to have secured this attractive and complex investment opportunity, demonstrating our agility and capacity to move quickly alongside great partners. This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon."

For more news and information visit Blumberg Partners.

CoreLogic to Acquire FNC in $475M Deal

Irvine,CA-based CoreLogic, the real estate data and analytics company, announced this week that it had entered into a definitive agreement to acquire FNC, Inc., an Oxford, MS-based software maker, for $475 million. This is the second big 2015 acquisition for CoreLogic, who purchased LandSafe Appraisal Services, an appraisal management company, from Bank of America for $122 million earlier this year. CoreLogic said in a press release that it wants to integrate FNC's real estate appraisal software into its products.

"FNC is a pioneer in developing unique collateral information and technology platforms for the U.S. lending ecosystem. Its business has been built around recurring, high-margin revenue streams. The acquisition of FNC is an important step in our development of a world-class property valuation solutions capability," said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. "FNC's platforms, together with our existing valuation-related assets and our recent acquisition of LandSafe Appraisal Services, allow us to gain operational scale and expand the value proposition of our VSG. We expect property valuation to be an area of significant future domestic and international growth."

"CoreLogic's VSG will be the conduit through which we will seamlessly deploy our broad suite of property valuation capabilities. The VSG will offer best-in-class content, analytics and workflow platforms which employ our Gen2 technology and mobility capabilities," added CoreLogic Chief Operating and Financial Officer Frank Martell. "Improving the quality and economics of property valuation is a major imperative for the real estate industry. Through the VSG, CoreLogic will be well positioned to bring comprehensive and compelling solutions to the marketplace."

Launched in 1995 by Bill Rayburn and three other University of Mississippi business professors, FNC said set out to find ways to streamline lenders' mortgage-approval processes. CoreLogic said FNC's software is used by 18 of the 20 largest American banks and connects to 80,000 appraisers, property inspectors and title insurers. Evercore acted as exclusive financial advisor to CoreLogic and provided a fairness opinion for the transaction and O'Melveny & Myers LLP served as legal advisor. FNC was represented by Wells Fargo Securities as exclusive financial advisor and Butler Snow LLP as legal advisor.

For more news and information visit Blumberg Partners.

Voit Closes $50M in OC Industrial

Voit Real Estate Services announced this week that it had completed nine industrial property sale transactions in Orange County, CA valued at $50 million over the past eight weeks. "Identifying space in a tight market to meet our clients' needs was a major contributing factor that made each of these industrial sites strong opportunities," Trent Walker, Voit Real Estate Services' executive vice president and board member, told Commercial Property Executive. "Large industrial buildings continue to be difficult to find throughout Orange County, which makes each of these sites attractive for buyers/investors."

The nine industrial sale transactions include:

$10.8 Million Industrial Acquisition in Anaheim

— Voit directed the $10.8 million acquisition of a 63,774 square-foot industrial asset in Anaheim, California on behalf of the buyer, Norman S. Wright Climatec Equipment of Southern CA. The property is located at 3325 E. La Palma Avenue in Anaheim. The seller was La Palma/Miller Owner, LLC.

$10.5 Million Industrial Acquisition in Garden Grove

— Voit directed the $10.5 million sale of a 66,000 square-foot industrial warehouse in Garden Grove, California on behalf of the buyer, The Smith Family Trust. The property is located at 12621 Western Avenue in Garden Grove, within the West Orange County industrial marketplace.

$7.4 Million Industrial Sale in Buena Park

— Voit completed $7.4 million sale of a 55,362 square-foot industrial facility in Buena Park, California. Voit represented both the buyer, John Smith Services, LLC, and Page Street Partners, LLC as the seller in the transaction. The property is located at 8401 Page Street in Buena Park, California.

$6.9 Million Industrial Sale in Westminster

— Voit directed the $6.9 million sale of two industrial warehouse properties in Westminster, California, on behalf of the seller, a private family trust. The properties, a 24,150 square-foot building located at 6421 Industry Way and a 18,328 square-foot property located at 6412 Maple Avenue, are both adjacent to the Westminster Mall. The buyer was represented Daum Commercial.

$4.8 Million Industrial Sale in Anaheim

— Voit represented TREF3 Anaheim as the seller of a 29,992 square-foot industrial property located at 1311 N. Blue Gum Street in Anaheim, California. The property was purchased by KJL Enterprises, LLC for a total of $4.8 million.

Sale of 11,860 SF Huntington Beach Industrial Building

— Voit directed the sale of an 11,860 square-foot industrial building in Huntington Beach, California. Located at 17572 Griffin Lane, the property was acquired by Ink Direct Corporation for a total of $2.2 million. Voit represented the seller, Whupddu, LLC, in this transaction.

$2.4 Million Industrial Acquisition in Santa Ana

— Voit directed the acquisition of a 14,400 square-foot industrial property located at 2100 & 2106 Susan Street in Santa Ana, California. Voit completed the acquisition on behalf of the buyer, Ivory River Industries, which purchased the property from 2100 Susan, LP for a total of $2.4 million.

Anaheim Industrial Acquisition

— Voit directed the $2.4 million acquisition of a 9,685 square-foot industrial building in Anaheim, California on behalf of the buyer, a private investor. The property, which is located at 3010 E Miraloma Avenue in Anaheim, California, was sold by Miraloma Real Estate Investments.

Industrial Sale on Research Drive in Huntington Beach

— Voit directed the sale of an 8,407 square-foot industrial building located at 5562 Research Drive in Huntington Beach, California. Voit represented both the seller, TVL Real Estate Associates, and the buyer, LFT Properties, in the $1.5 million transaction.

For more news and information visit Blumberg Partners.

Boston Approves $171M Harvard Campus Project

The Boston Redevelopment Authority (BRA) approved six different development projects valued at $224 million, capping a year in which 7.1 million square feet of new construction were approved throughout the city. The largest approval went to Harvard Business School’s $171.1 million two-phase development of Klarman Hall and the G2 Pavilion. The first phase covers the construction Klarman Hall, which will feature a 1,000-seat auditorium designed by William Rawn Associates built adjacent to the site of Burden Hall, including new space for conferences and other Business School events; the second phase calls for replacing Burden Hall with meetings and classroom space. An underground connection to Spangler Center will be built as well. Plans for the project were originally filed in October of this year, with construction expected to finish by August of 2018. Walsh Brothers Construction is charged with managing the project.

Additionally, the BRA approved a $20 million, 127-room loft-style hotel in a former industrial building at 175 Orleans Street in East Boston, and a $22.9 million renovation of the historic Boston Young Men’s Christian Union building at 48 Boylston St. in Chinatown into 46 affordable apartment units. The BRA also approved $100,000 from the Harvard Allston Partnership Fund to support community organizations with grants.

For more news and information visit Blumberg Partners.

Dallas' Triwest Plaza Sold

A fund represented by New York-based HighBrook Investment has sold the 17-story high-rise known as Triwest Plaza at 3030 LBJ Expressway in Dallas to Triwest Green LP, a Delaware limited partnership, for an undisclosed sum. In 2006, Centennial Real Estate Corp. of Dallas sold the building to Argus Realty Investors LP for $37.7 million. Terms of the acquisition were undisclosed, though the Delaware company did disclose that they used HFF to secure funding through Wells Fargo.

Built in 1984, the 369,025-square-foot TriWest Plaza building was 75% leased at the time of sale with ClubCorp as a major tenant. ClubCorp signed a long-term lease in 2013 for four floors of the building, or roughly 80,000 square feet of space, to accommodate about 300 of its employees. ClubCorp CEO Eric Affeldt said he was swayed to stay in the building at the time because of the recent acquisition of the building in 2013 by HighBrook Investors, who invested capital into the office building before selling it.

For more news and information visit Blumberg Partners.

DRA Buys Inland Real Estate in $2.3B Deal

Inland Real Estate Corporation (IRC) announced that it has entered into a definitive agreement to be acquired by DRA Advisors in a deal valued at about $2.3 billion, including the assumption of existing debt. International law firm Proskauer represented Inland Real Estate in the deal, which, as of September 30, 2015, owned interests in 135 fee simple investment properties, including 36 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet. Inland's board has unanimously approved the merger, expected to occur in the first half of 2016, though it is contingent upon customary closing conditions, including the approval of stockholders, who will vote on the deal at a special meeting. Under the terms of the merger agreement, funds managed by DRA will acquire all issued and outstanding common stock of IRC for $10.60 per share in cash; upon completion of the transaction, IRC will become a privately held REIT.

"The Board has been focused on the options available to address the long-term discount at which the Company's shares have traded versus private market valuations and its shopping center REIT peers," said Thomas P. D'Arcy, non-executive chairman of Inland Real Estate Corporation. "The Board unanimously believes this all-cash offer is the best course of action to address this valuation gap and provide our stockholders with strong relative value for their investment."

IRC said it expects to pay regular monthly cash distributions of $0.0475 per share on the outstanding shares of its common stock until the merger closes. In addition, the company will pay monthly cash dividends of $0.169271 per share on the outstanding shares of its 8.125 percent Series A cumulative redeemable preferred stock and and $0.144791667 per share on the outstanding shares of its 6.95% Series B cumulative redeemable preferred stock.

For more news and information visit Blumberg Partners.

Subaru Breaks Ground on Camden HQ

Subaru of America, Inc. broke ground this week on an all-new $118 million corporate headquarters in Camden, NJ, adjacent to Campbell Soup Company's world headquarters. The Subaru of America campus will be the first new corporate headquarters in Knights Crossing, a master plan urban town center community, being developed by Brandywine Realty Trust. The new facility, at 250,000 square feet, plus an additional building at 83,000 square feet will be more than double the size of its current headquarters building and will bring employees from four sites onto one campus; Subaru expects the development to be complete in 2017.

"We are delighted to contribute to the revitalization of Camden and look forward to Knights Crossing becoming a significant catalyst to the renaissance taking place in Camden," said Gerard Sweeney, president and chief executive officer of Brandywine Realty Trust. "We're especially honored to be developing this state-of-the-art campus for such a well-renowned and admired company as Subaru of America. Subaru's decision, coupled with the long-standing commitment by Campbell, provides an excellent platform for further economic development and job creation in the city of Camden."

Thomas Doll, president and chief operating officer of Subaru of America, added: "We are very excited to be moving this project forward as we seek to bring our family of employees together on one site. This signing cements the long-term future of Subaru in the Delaware Valley and we are pleased that, after almost 50 years here, we can plan to continue to be a part of the local community we have supported for so long."

"Today not only signifies a long-term commitment by Subaru to the region, but now to our city and, yes, to our residents," Camden Mayor Dana Redd said at the groundbreaking ceremony. "To say this is an incredible investment to our city and region is an understatement." Subaru announced the move a year ago, after the state Economic Development Authority awarded the company $118 million in tax incentives under the Economic Opportunity Act to move from its Cherry Hill location, about four miles away. The credits, spread over 10 years, are conditional on Subaru creating or saving at least 250 jobs in the city and remaining in Camden for at least 15 years. Video of the groundbreaking ceremony can be seen here. For more news and information visit Blumberg Partners.

Savills Studley Buys Real Facilities

Real Facilities, a Toronto-based full-service commercial real estate firm, has been acquired by international real estate advisor Savills Studley as part of the company's continued expansion in North America. While terms of the deal were not disclosed, in a press release Savills indicated that Stan Krawitz, who founded Real Facilities in 2000, will oversee the operations for Savills Studley as Executive Vice President, Founder and Head of Canada. The newly acquired office will continue to provide tenant representation, transaction management, capital markets, project management and design services to companies across multiple industries, including office, industrial and retail.

"It was important that Savills Studley create a strategic presence in Toronto, the fourth-largest commercial real estate market in North America," Michael Colacino, President of Savills Studley, said of the deal. "We are very excited by the opportunities this acquisition presents for our clients as many multinational firms have targeted the Greater Toronto Area for growth. Stan and the Real Facilities team share our steadfast commitment to the tenant representation model and providing best-in-class service to clients."

Stan Krawitz added: "Savills Studley and Real Facilities have collaborated on numerous large transactions for clients on both sides of the border for more than five years. In many ways, this is just the formalization of the great partnership we've enjoyed. Joining Savills Studley provides us with a true global platform for our clients. Many Canadian companies are expanding to the U.S, as well as seeking locations in Europe and Asia. The transition has been seamless."

For more news and information visit Blumberg Partners.

Blumberg in the News

BloombergBusiness wrote an article this week titled Pigeons Grow Fat in Egypt as Poor Storage Means Wasted Wheat, exploring the inefficiencies bedeviling food systems in the Middle East and North Africa. and featuring an interview with Blumberg Grain's David Blumberg. An excerpt follows:

As much as half of the wheat the state buys from its farmers is lost each year to pigeons, rodents and thieves scavenging national stockpiles that are often just stacked in rough jute bags open to the elements, said David Blumberg, whose U.S. company is working with the government to modernize and build the Middle East's largest grain-storage network.

"If you ever passed by a landfill and saw all the birds circling above, that's kind of the situation," said Blumberg, chief executive officer of Blumberg Grain, Middle East & Africa, referring to the facilities he's working on replacing. "There is no protective covering."

Wasted grain is a big problem for Egypt, where rising food prices intensified unrest that led to the overthrow of the government during Arab Spring protests in 2011. The country is the world's biggest wheat importer and spends billions of dollars on grain each year for a subsidized bread program to ensure its people can afford food.

The government buys about 40 percent of the country's wheat production each year, but waste isn't limited to the domestic crop. Poor infrastructure, port backlogs and aging storage sites mean a third of imported supply is also lost, said Gilles Mettetal, director of agribusiness at the European Bank for Reconstruction and Development.

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

Two Tower Center Sold for $59M

Cushman & Wakefield's Metropolitan Area Capital Markets Group (CMG) represented the seller and procured the buyer as Two Tower Center Boulevard, a Class-A office building just off Exit 9 of the New Jersey Turnpike, traded hands for $61.925 million, or roughly $153 per square foot. An affiliate of BHN Associates LLC secured $58.75 million of acquisition financing provided by Basis Investment Group, according to a press release. Full terms of the deal were not disclosed.

"This is considered the premier office building in this submarket. The property benefits from unparalleled recognition and access off of the New Jersey Turnpike and as such offered a lender a combination of diverse tenancy with credit and term to support the loan request," said Mr. Alascio, a Cushman & Wakefield Managing Director. "Basis understood that this was a rare chance to finance such a building and facilitated a loan in an expedited time frame where other lenders could not meet the request and working needs of BHN."

The 23-story office building located in East Brunswick, New Jersey is a 405,597 square foot, granite clad trophy office building with 16 office floors that sit above a parking structure. Two Tower Center was originally constructed in 1988 and designed by The Stubbins Associates, Inc. The property was 82% leased at the time of sale with major tenants including PNC Bank, Wipro Technology, McCarter & English, Delphi Technologies, and Ceres Terminals.

For more news and information visit Blumberg Partners.

GA Industrial Park Sold for $135M

Stone Mountain Industrial Park, a 4.1-million-square-foot, 69 building industrial campus in the Tucker/Stone Mountain submarket of Atlanta, traded hands for $135 million this week. Ackerman & Co. partnered with Investcorp, an alternative investment manager and active real estate investor in Atlanta and the Southeast, to acquire the property from the original developer, Pattillo Industrial Real Estate. Cushman & Wakefield's Stewart Calhoun, David Meline, Samir Idris and Casey Masters brokered the sale on behalf of Pattillo, who announced in June that they intended to dispose of the property.

"Investcorp and Ackerman are fortunate to own these well-built and strategically located properties," said Kris Miller, President of Atlanta-based Ackerman & Co., in a press release.

"We congratulate Ackerman and Investcorp on their bold new investment. They are committed to an area that has a Community Improvement District, a newly incorporated City of Tucker and a sterling location that has served a strong business community for many years," added Larry Callahan, CEO of Pattillo Industrial Real Estate.

For more news and information visit Blumberg Partners.

Latest Beige Book Shows Moderate Growth

The U.S. Federal Reserve has released the latest Beige Book, more formally called the Summary of Commentary on Current Economic Conditions, which indicates that economic activity increased at a modest pace in most regions of the country since the previous Beige Book report. Fed policymakers are widely seen raising interest rates for the first time in almost a decade at their next meeting on Dec. 15-16, but continue to parse data and trends carefully given the uneven nature of the U.S. recovery.

"On balance, economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market," Fed Chairwoman Janet Yellen said in prepared text for a speech to be delivered in Washington today. "Continuing improvement in the labor market helps strengthen confidence that inflation will move back to our 2% objective over the medium term." A summary of the commercial real estate sectors follows:

Commercial construction strengthened modestly in most Districts since the previous report. The Minneapolis District saw continued strong growth, particularly in cities where commercial permitting increased. The Boston, Cleveland, Atlanta, Chicago, St. Louis, and San Francisco Districts reported moderate commercial construction growth. In the Boston District, office construction grew modestly in the greater Boston region. Demand remained strong in commercial building, multi-family housing, and higher education in the Cleveland District, while in the Atlanta District, non-residential construction was slightly up from a year ago and reports on apartment construction remained robust. The Philadelphia, Richmond and Kansas City Districts reported a modest pace of growth in commercial construction. Commercial construction increased in most major cities in the Richmond District. In contrast, New York reported little change since the previous report. The Dallas District reported that construction remained active, although construction started to taper off in Houston.

Commercial leasing activity generally grew at a moderate pace. Cleveland reported strong growth, while activity in the Districts of Boston, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas and San Francisco expanded at a moderate pace. Commercial real estate improved in the Atlanta District, with increased absorption and rent growth across property types. Improvement in the Chicago District was widely distributed across the retail, industrial, and office segments, with increased demand for both sale and lease properties. Contacts in St. Louis reported slightly higher demand across all sectors, and expected demand to remain the same or increase slightly in the first quarter of 2016. The Minneapolis-St. Paul retail, office, and industrial space had positive net absorption, along with lower vacancy rates. Demand for commercial leasing increased mildly in the Dallas District, while office space activity was strong in the Dallas-Fort Worth area. Commercial leasing activity in New York was unchanged since the previous report.

For more news and information visit Blumberg Partners.

Unico Buys South Lake Union Office Building

Seattle-based Unico Properties LLC, a real estate investor and full-service operator, has purchased 701 Dexter Avenue North, a six-story office building near the southwest shore of Lake Union, just northeast of downtown Seattle. According to public records, the sale was closed on November 25, 2015 for a total of $17,700,000, or $281 per square foot. Terms of the deal were not disclosed; the seller was a JV called 702 Aurora North Joint Venture, which includes OAC Services, an architecture and engineering services firm, according to Shawn Mahoney, a principal at OAC.

The 62,000-square-foot building is currently 93% leased, with engineering firm Grey & Osborne and OAC Services as the two largest tenants. Mahoney noted that OAC intends to remain in the building as a tenant. Andrew Cox, vice president and regional director at Unico, said the firm is considering a renovation but he would not get into specifics. Unico said it was attracted to this property because of all the new housing along Dexter — Unico says more than 1,000 apartments have opened nearby — and proximity to Amazon, Facebook, Bill & Melinda Gates Foundation and the Allen Institute.

For more news and information visit Blumberg Partners.

TIAA-CREF Sells Tysons Corner Office Building

National financial services organization TIAA-CREF has sold the Harrison Building in Tysons Corner, Virginia to Harrison Metro LLC, an investment affiliate of Cambridge Holdings LLC, a Virginia-based full-service operating company. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property on behalf of TIAA-CREF, and represented them in the sale; the price and terms of the transaction were not disclosed. TIAA-CREF purchased the Harrison Building in December 2004 for approximately $27.4 million; Fairfax County tax records show the building was assessed at $23 million this year.

Located at 1760 Old Meadow Road in Tysons Corner — which is the 12th largest Central Business District in the nation and Virginia's largest employment center — the Harrison Building was completed in 1999 and is conveniently located blocks from the Silver Line's McLean Metrorail station, Tysons Corner Center and Tysons Galleria. The five-story, 101,440-square-foot, Class A office building features a two-story glass atrium lobby with three elevator cabs and covered parking adjacent to building. The building was fully leased to Project Performance Company (PPC) at the time of the sale, but the company, which has been at that location since at least 2006, will be leaving the property when its lease expires at the end of the year.

For more news and information visit Blumberg Partners.

Aligned Opens New $300M Data Center in Plano

Aligned Data Centers, a division of Aligned Energy, had a ribbon cutting ceremony this week at 2800 Summit Avenue, the company's new $300 million, 30-megawatt data center complex in Plano, Texas. The 300,000 square foot data center is one of the first company locations to come online in the United States, with the first phase officially now complete and offering 108,000-square feet of space with 12.5 megawatts of power. The facility is unique in the pay-for-use concept that Aligned has employed, with customers committing to power based on what they actually use instead of a more general commitment to a certain amount of megawatts for the life of their contract.

"Aligned Data Centers' entry into Plano is yet another powerful example of an innovative and emerging company that chooses to call our City of Excellence home," said Mayor Harry LaRosiliere at the groundbreaking ceremony. "The technology that Aligned has developed to 'green' a data center industry and reduce wasting huge amounts of water and energy cannot be understated. It is appropriate they chose Plano, a city known for leadership in sustainability efforts and we look forward to seeing them lead those same efforts in their industry."

Jakob Carnemark, CEO for Aligned Energy, explained that the consumption-based pricing for colocation will minimize the upfront commitment for power and space by up to 70% by not locking customers into a fixed ramp schedule and charging on a pay-for-use basis. "Our clients will now have the control and flexibility they have been asking for, while enjoying the peace of mind that their data center is operating at peak performance and efficiency," Carnemark said in a press release. In addition to the Plano facility, Aligned is building a larger data center in Phoenix and scouting for additional locations in California, Illinois, Virginia, and New Jersey.

Click here to take a virtual tour of the new Data Center. For more news and information visit Blumberg Partners.

Industrial Property Trust Buys York Industrial Building

In a deal arranged by JLL's Philadelphia Capital Markets Group, Industrial Property Trust Inc. has purchased the 312,769 square-foot industrial property at 515 Zarfoss Dr. in West Manchester Township, PA for $16.5 million. The building was sold by Endurance Real Estate Group and Thackeray Partners, who originally purchased the property for $8.075 million, or $25.80 per square foot, in 2012.

"515 Zarfoss Drive presented the opportunity for the buyer to acquire a 100 percent leased, highly-functional asset with a tenant who has an unmatched local presence and commitment to the market," said John Plower, senior vice president, JLL Philadelphia. "York County has continued to be a shining star within the Central Pennsylvania market, outperforming other locations in terms of high quality of labor, rental rates and limited vacancy." He also noted that the property was only on the market for about a month before it was sold.

515 Zarfoss Drive was originally developed in 1982 and features all the amenities required by contemporary distribution needs, including ceiling heights up to 31' clear, 28 loading doors, wet sprinkler system and approximately 6,500 square feet of office space. The property is located in the 27 million square foot Central Pennsylvania industrial market, which is widely considered one of the top performing in the United States.

For more news and information visit Blumberg Partners.

Korea Post Buys Midtown I & II in Atlanta

CBRE Global Investors' U.S. Managed Accounts Group announced that it has acquired Midtown I & II in Midtown Atlanta on behalf of Korea Post, the national postal service of South Korea. Terms of the deal were not disclosed, but the property did previously sell for $225 million in 2013 when Cole Real Estate Investments teamed with Macfarlan Capital Partners to acquire the complex from KanAm Grundinvest Fonds (who had purchased the complex at the market's peak in 2007 for $242 million).

"Our investors are increasingly looking for global diversification," said Peter DiCorpo, President, CBRE Global Investors' U.S. Managed Accounts Group. "We can offer the on-the-ground experts in their target investment markets as well as in their home country to provide a seamless solution for migrating capital across borders."

Midtown I & II is a 794,110 square foot, Class A, state-of-the-art corporate campus situated in the heart of the Midtown submarket of Atlanta, across I-85 from the campus of University of Georgia Tech. The 16-story and 8-story buildings are 100% leased to AT&T and were originally constructed at build-to-suits for Southwestern Bell in 2001 and 2002. The property also includes a nine-story 2,459-space parking garage, which is also home to 13,257 square feet of ground floor retail space, as well as AT&T's 5,000 square foot Drive Studio. The Drive Studio is a platform which allows automakers to add and test connected services, such as in-car entertainment systems, over-the-air diagnostic systems, and other innovative cellular-enabled features.

For more news and information visit Blumberg Partners.

Related, Oxford Secure $1.3B Financing on 15 Hudson Yards

Related Companies and Oxford Properties Group closed $1.3 billion in financing to fund the 15 Hudson Yards building under construction in the mixed-use development on Manhattan's West Side. The finance package includes equity provided by Related, Oxford and a sovereign wealth fund, tax-exempt bonds from New York State Housing Finance Agency and an $850 million construction loan provided by London-based The Children's Investment Fund, according to a Commercial Observer report.

The 960,000 square foot mixed use tower was designed by Diller Scofidio + Renfro and Rockwell Group to obtain LEED Gold certification, and is expected to be completed in 2018, with sales to begin next year. The 70-story tower will offer unobstructed views of the city and Hudson River, and immediate access to the greater Hudson Yards project, which includes 17 million square feet of commercial and residential space, more than 100 shops and restaurants, including the first Neiman Marcus in New York City, approximately 5,000 residences, 14 acres of public open space, a new 750-seat public school and a 200-room, Equinox-branded luxury hotel.

For more news and information visit Blumberg Partners.

Liberty Property Sells Orlando Industrial for $36M

Malvern, PA-based Liberty Property Trust announced that it has completed the sale of a 713,585 square foot industrial property at 8201 Chancellor Drive for $35.5 million, marking one of the largest deals in the Orlando-area market in five years. Liberty originally purchased the 713,585 square foot warehouse distribution facility for a total investment of $23.6 million in September 2010, when the drugstore chain CVS had the building 100% leased; Liberty completed a long-term renewal of the lease with the tenant last year. Frank Fallon, Mike Hines and David Murphy of CBRE represented Liberty in the transaction; the unnamed buyer was advised by Exan Capital LLC.

"Liberty remains very committed to the Orlando market and we continue to focus on growing our industrial portfolio," said Stephen Whitley, senior vice president and city manager for Liberty in Orlando. "We have just developed two new buildings and there are more in the planning stages." Liberty, an $8 billion, publicly traded REIT, currently owns and manages 3.6 million square feet of industrial space in Orlando.

For more news and information visit Blumberg Partners.

Buchanan Street Buys Tollway Plaza

Newport Beach-based Buchanan Street Partners announced that it had purchased Tollway Plaza, a two-building, eight-story office complex in Dallas, Texas, for an undisclosed amount. Buchanan was self-represented in the deal, while HFF's Dallas investment sales team represented the seller, CBRE Global Investors. The buildings were expected to fetch almost $230 per square foot; CBRE originally acquired the property in 2012 from Equity Office Properties Trust, price also undisclosed.

"We are actively buying all types of office product in the Dallas region," said Matt Haugen, assistant vice president at Buchanan Street Partners, in a press release. "Given the sustainable job growth in the region and lack of available development pads, we anticipate an increase in rents in the area over the next few years as vacancies tighten."

Located at 15950 and 16000 North Dallas Parkway, Tollway Plaza consists of two, eight-story buildings totaling 370,073 square feet. Centrally located in the Dallas North Tollway submarket,Tollway Plaza was 95% leased at the time of sale, with major tenants including Travis Wolff, LLP, Axxess Technology Solutions, HQ Global and Stewart Title.

For more news and information visit Blumberg Partners.

Carr Buys Apex Building for $106M

DC-based Carr Properties signed an agreement this week to purchase 7272 Wisconsin Avenue in Bethesda, Maryland for $105.5 million from the American Society of Health-System Pharmacists (ASHP). Alony Hetz Properties and Investments Ltd., a holding company that specializes and focuses on real estate in Israel and abroad, has partnered with Carr on the project. Carr will finance the building’s purchase from its own resources and from a loan granted by the sellers in the sum of $53 bearing 4.5% yearly interest with its redemption date (full principal) being in 2020. In addition, Carr signed an agreement with the sellers according to which the sellers would remove their offices from the purchased building and move to the 4500 East West Building owned by Carr, construction of which was completed this year.

In the coming years, Carr Properties intends to demolish the Class B office building to develop a 935,000-square foot mixed use complex at the location with office, residential, commercial and hotel space, according to a Funder article. Demolition of the building has been an issue of community planning concern, as previous property owners and the county considered the impact last year. The property is at a desirable location, directly above a future subway stop for the new Purple Line on DC Metro.

For more news and information visit Blumberg Partners.

McCraney Breaks Ground on Park27 Spec Industrial

West Palm Beach-based McCraney Property Company broke ground on its new Park27 project, the only spec industrial new construction building in Davenport, Florida. McCraney partnered with Northwestern Mutual Real Estate, the real estate investment arm of Northwestern Mutual, to develop 603,000 square feet of industrial building space, located at the northwest quadrant of interstate 4 and US Highway 27. The development is adjacent to a recently announced Walmart ecommerce distribution center with two buildings and more than 2 million square feet. Project costs were not disclosed.

"On the heels of the Orlando industrial market experiencing an explosive 2 million square feet of absorption to date this year, currently there is no other sector within commercial real estate more fluid and exciting than the industrial market today," said Steven McCraney, President and CEO of McCraney Property Company. "Industrial is morphing its traditional makeup with retail and technology, and Central Florida is at the perfect crossroads to capitalize on ecommerce momentum.

Park27 includes two buildings on its 33-acre site:

• The first building will span 189,000 square feet
• The second will be 414,000 square feet, and be the only multi-tenant spec space available in the immediate area that can accommodate a 300,000+ square foot user with trailer storage

"Park27 is a first-class development that represents an exciting opportunity for us to have a growing presence in Central Florida," added John Jacobs, director of production for Northwestern Mutual Real Estate in a press release.

For more news and information visit Blumberg Partners.

Clarion Buys Pacific Tech Park

An affiliate of New York-based Clarion Partners purchased the Pacific Technology Park in Sorrento Mesa, California in a $90 million deal arranged by Cushman & Wakefield. According to a San Diego Business Journal article, the sellers of the industrial property, at 9389-9477 Waples St., were Pacific Tech Property Inc. of San Diego and San Francisco-based Deutsche Asset & Wealth Management. The sellers were represented by Jeff Chiate, Jeffrey Cole and Edward Hernandez of Cushman & Wakefield; and Mickey Morera and James Duncan of Kidder Mathews; Clarion was self-represented.

"This offering generated a great deal of interest," Jeffrey Cole told GlobeSt.com. "Clarion Partners was attracted to this opportunity to own a class A industrial park with credit tenancy in a coastal market. With the acquisition, Clarion also has the potential to further improve certain suites to re-lease to creative office and technology tenants at significantly higher rents."

The five building, office/corporate headquarter, R&D, warehouse business park is centrally located in San Diego's Sorrento Mesa Submarket, just east of the Interstate 805 Freeway. Pacific Technology Business Park was built in 1989-1991 and was 80% occupied by 13 tenants at the time of sale.

For more news and information visit Blumberg Partners.

Corum Moves Forward with Class A Spec Industrial in Denver

Corum Real Estate Group, the Denver-based real estate firm, has purchased a 7.5-acre parcel of land in Adams County to develop Central 62 Distribution Center, a 124,600-square-foot, Class A, spec industrial warehouse and distribution facility. HFF worked on behalf of Corum to arrange joint venture equity partnership with a pension fund advisor, and also secured the construction loan for the partnership through a local bank. Corum bought the land from father-and-son Tony and Lou Ficco for $2.08 million, who had owned the site since 1941. Associate Director Matt McClintock and Senior Managing Director Jeff McClintock of NGKF handled the transaction. According to a Business Den article, their property originally had 10 acres but was cut down to 7.5 acres when Interstate 25 was built in the 1960s.

"Industrial real estate is a pretty hot commodity right now, and infill industrial is even harder to find," said Corum Vice President Eric Komppa, who runs Corum Real Estate Group along with his father Mike Komppa. "It's going to be the first development deal with I-25 visibility since the last cycle at least, if not longer."

Targeted at mid-size tenants requiring office, retail and showroom space, Central 62 is the latest speculative development in a "drum tight" industrial market experiencing under 2 percent vacancy in the central Denver area, according to Newmark Grubb Knight Frank. "This new industrial construction fronting I-25 is the first in decades, and as land values skyrocket in RiNo and along Brighton Boulevard, centrally located companies need new options," explained Matt McClintock, who brought the opportunity to Corum Real Estate.

BSD Builders has been contracted as the general contractor on the Central 62 project, which was designed by Ware Malcomb. Asking rates will hover around $8 per square foot, Komppa said, adding that the building has drawn leasing interest primarily from distribution outfits.

For more news and information visit Blumberg Partners.

Latest CoStar Reports Shows Ideal Conditions for CRE Growth

CoStar has released its Commercial Repeat Sale Indices (CCRSI) for the month, looking at figures for commercial real estate pricing, which reflects continued price growth in Q3. Steady employment growth, low interest rates, and the global uncertainty that has pushed capital into 'safe-haven' investments helped drive continued investment and price growth, with real estate investors continuing to push activity. According to the CCRSI, composite pair sales volume of nearly $91 billion in the first three quarters of 2015 grew 32.8% compared with the first three quarters of 2014, and put 2015 on track to become the strongest year on record for transaction volume.

Some excerpted hilights follow:

STEADY GAINS SEEN IN OFFICE SECTOR.
The core gateway markets continued to do well during the third quarter of 2015. In addition, former housing-bust markets such as Atlanta and Miami, which have so far lagged in the recovery, also saw some of the most pronounced improvements in market fundamentals and price growth in the last year. The national U.S. Office Index increased 2.7% in the third quarter of 2015 and 10.3% in the 12-month period ended September 2015. The Prime Office Metros Index advanced by an even stronger 12% in the 12 months ended September 2015, propelling it to within 1.2% of its prior peak level.

INDUSTRIAL MARKET PRICE GROWTH HIGHER OUTSIDE PRIME METROS.
The industrial sector's solid fundamentals performance has supported price growth of 2.6% in the third quarter of 2015 and 10.9% in the 12 months ended September 2015. The Industrial Index is now within 6.3% of last cycle's peak. The Prime Industrial Metros Index has generally mirrored that of the broader market. Although its 7.7% increase in the 12 months ended September 2015 was lower than the national Industrial Index, and the Prime Industrial Metros Index remained 15% below last cycle's peak. This suggests more room for price appreciation as rents continue to rise, but space markets are expected to become increasingly competitive as construction levels increase.

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

Stream Realty Closes $67M Bridge Loan for Atlanta Portfolio

Dallas-based Stream Realty Partners has closed a $67 million bridge loan with A10 Capital to fund the acquisition and lease-up of a 12-property portfolio consisting of retail, industrial and office buildings in the metropolitan Atlanta area. The loan was structured on a non-recourse basis and proceeds were used to fund the acquisition, capital improvement plan, and future lease-up costs of the properties. Gregg Shapiro, Director at HFF, arranged the financing; the seller identities or a complete purchase amount were not disclosed.

"We have developed a specialty in financing large portfolios comprised of middle-market commercial properties," said A10 Capital CEO, Jerry Dunn. "This loan highlights the strength and flexibility of our lending platform."

"We owe special thanks to our lender, A10 Capital," added Ben Hautt, Co-Managing Partner of Stream Realty Partners' Atlanta office. "As hectic as it was in those early morning hours before close, it was great to see them working just as hard as us. They really treated this portfolio as if they were true partners with us."

The 12 properties, which include a retail shopping center at 3201 South Cobb Drive and an industrial warehouse at 3380 Florence Road, were 56% leased at the time of sale.

For more news and information visit Blumberg Partners.

$325M Expansion Plan for NYC Museum

Studio Gang Architects, founded by architect and MacArthur Fellow Jeanne Gang, has released designs for the Richard Gilder Center for Science, Education, and Innovation at the American Museum of Natural History, a $325 million, 218,000-square-foot expansion approved by the museum's trustees this week. The Board of Trustees of the American Museum of Natural History authorized proceeding to schematic design for the Columbus Avenue side of the Museum complex at 79th Street. The conceptual design for the Gilder Center is consistent with longstanding but previously unrealized aspects of the Museum's 1872 master plan, while reflecting a contemporary architectural approach that is responsive to the Museum's mission and to the current uses and character of the surrounding Theodore Roosevelt Park and neighborhood. The project still needs to pass through the New York City Department of Parks and Recreation, Landmarks Preservation Commission, and Community Board 7 to review, and an environmental impact statement (EIS) will be prepared for public review and comment. If approved, construction is expected to begin in 2017, with a goal to open the Gilder Center in 2020, at the conclusion of the Museum's 150th anniversary in 2019.

"The Gilder Center embraces the Museum's integrated mission and growing role in scientific research and education and its enhanced capacity to make its extensive resources even more fully accessible to the public," said Museum President Ellen Futter in a press release. "It will connect scientific facilities and collections to innovative exhibition and learning spaces featuring the latest digital and technological tools. Jeanne Gang's thrilling design facilitates a new kind of fluid, cross-disciplinary journey through the natural world while respecting the Museum's park setting."

"We uncovered a way to vastly improve visitor circulation and Museum functionality, while tapping into the desire for exploration and discovery that are emblematic of science and also part of being human," added Jeanne Gang from Studio Gang Architects. "Upon entering the space, natural daylight from above and sightlines to various activities inside invite movement through the Central Exhibition Hall on a journey towards deeper understanding. The architectural design grew out of the Museum's mission."

Approximately 80% of the project will be located within the area currently occupied by the Museum. Three existing Museum buildings will be removed to minimize the Gilder Center footprint in Theodore Roosevelt Park to about 11,600 square feet. Ralph Appelbaum of Ralph Appelbaum Associates is designing the exhibition experiences, and the landscape architecture firm is Reed Hilderbrand.

For more news and information visit Blumberg Partners.

John Hancock Buys OC Office Property for $105M

John Hancock Real Estate, also known as Manulife Real Estate and a division of Manulife Financial, announced this week that it had purchased 5000 Birch in Newport Beach, California for $104.5 million. John Hancock purchased the two building, Class A office project from an undisclosed seller, though records reveal that the property previously traded hands in November 2002 to Cornerstone Real Estate Advisers by a joint venture between Aetna and Koll Development. Terms of the deal were not disclosed.

"We are excited to grow our global portfolio through continued investment in Orange County -- one of the fastest growing office markets in the U.S.," said Kevin Adolphe, President & Chief Executive Officer of Manulife Real Estate and President & Chief Executive Officer of Manulife Asset Management Private Markets. "Our acquisition of 5000 Birch further strengthens our long-standing investment in California where we now actively manage over 9 million SF."

The 306,000 square foot property, also known as Koll Center Newport, was originally constructed in 1982. 5000 Birch features a highly coveted Newport Beach address and is located at the gateway between Newport Beach and The Irvine Business Complex. The center is nearby The Sutton Place Hotel and The Pacific Club provide retail shops and banking as well as having excellent access to the John Wayne Airport and major freeways.

For more news and information visit Blumberg Partners.

Weyerhaeuser Buying Plum Creek, Creating $23B REIT

Weyerhaeuser Company announced that it has agreed to buy Plum Creek Timber Co. for about $8.4 billion, merging to create a timber, land and forest products company with an equity value of $23 billion, based on current share prices. The new company will own more than 13 million acres of timberland across the U.S., operating under the Weyerhaeuser name and ranking sixth among publicly traded companies based in Washington state. Plum Creek shareholders will receive 1.6 shares of Weyerhaeuser stock for each Plum Creek share held, with Weyerhaeuser holders owning about 65% of the combined company's common stock. Doyle Simons, the president and CEO of Weyerhaeuser, will continue to serve as president and CEO of the new company.

"With an extraordinary set of combined assets and the proven value creation records of both Weyerhaeuser and Plum Creek, the combined company will offer a compelling opportunity for shareholders," said Rick Holley, chief executive officer for Plum Creek, who will be a non-executive chairman at Weyerhaeuser. "These two companies are already best-in-class timberland managers with a relentless focus on sustainable resource management."

Analysts said it's an epic consolidation move in an otherwise fragmented industry. "In the private timberland industry, they become a Goliath," said Steven Chercover, a senior research analyst at brokerage D.A. Davidson & Co. "This couldn't get any bigger." Chercover said he'd expect the companies to cut a big chunk of duplicated overhead costs.

"We're excited to combine the two leaders in our industry to create the world's premier timber, land and forest products company," said Doyle Simons, president and chief executive officer of Weyerhaeuser. "This new company will create tremendous benefit for shareholders as we drive value through shared best practices, economies of scale, cost synergies, operational excellence and disciplined capital allocation. Our customers and employees will also benefit as we form a winning team with common values and unparalleled expertise in timber, land and manufacturing."

Weyerhaeuser, based in Federal Way, Washington, also said that it may spin off its cellulose fibers business, which includes five pulp mills. For more news and information visit Blumberg Partners.

Northstar Acquires Office-Industrial Portfolio for $224M

Denver-based Northstar Commercial Partners, a privately held commercial real estate investment company, announced this week that it had purchased a 24-property national U.S. portfolio for $224 million. Northstar purchased the portfolio from Mr. Moshe Silagi, President of Silagi Development & Management (SDM), with a $178.5 million loan secured by Cohen Financial with Prime Finance Partners, a national privately-held commercial real estate finance company.

"This deal is the most significant acquisition in Northstar's company history, bringing along with it our largest opportunity to date to create a positive impact for businesses and local communities nationwide," Brian Watson, Northstar Commercial Partners' Founder & CEO, said in a press release. "It is very rare in this economic environment to acquire an off-market deal of this magnitude, diversity, and low occupancy rate, in order to drive very attractive opportunistic level returns."

The portfolio includes 13 industrial warehouse & manufacturing facilities, eight office buildings and three retail assets, all totaling 5,918,835 square feet on 486 acres. Twenty-one of the facilities included in the 24-property acquisition are located in towns or areas with high unemployment, often times well above national and state averages; the properties had an overall vacancy of 40% at the time of sale. Watson explained: "The fact that the vast majority of these properties are found in places where people need work, and are looking for greater opportunity, makes us at Northstar all the more eager to be involved."

For more news and information visit Blumberg Partners.

Blumberg in the News

Blumberg Grain was featured in an article from The Hindu BusinessLine today, Warehousing, food storage services companies keen on India, in which Anshuman Magazine, CMD of CBRE South Asia, shares insights into the market. An excerpt follows:

"Few companies have already expressed interest. Recently, companies like Blumberg Grain, a US-based warehousing solutions provider, have shown interest to establish their manufacturing base and warehousing facilities," he added.

The entry of such brands may help the existing technological know-how in the field, and improve them to global standards, thus creating more employment opportunities.

Delhi-NCR, Mumbai and Bengaluru are likely to remain major hubs for retail distribution centres; Pune and Chennai are likely to see healthy demand for industrial warehousing.

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

GLP's New $4.5B 100 Property Industrial Portfolio

Global Logistics Properties (GLP), a leading provider of modern logistics facilities in China, Japan and Brazil, announced this week that it had completed the acquisition of a $4.55 billion portfolio from Industrial Income Trust (IIT), creating one of the largest real estate deals this year. The deal will be closed over the course of 100 separate transactions and result in GLP owning 100% of IIT's portfolio, and ITT officially merging with Western Logistics II LLC, an affiliate of GLP.

"This transaction complements our existing portfolio well, expanding GLP's size and scale in the U.S.," GLP's Chief Operating Officer Stephen Schutte said in a press release. "We feel particularly good about the quality and location of the facilities, which have an average building age of 15 years and a strong concentration in major distribution markets. We are excited about the synergies the combined portfolio is expected to generate and see upside potential from increasing occupancy and rents."

The portfolio comprises 58 million square feet of state-of-the-art, in-fill logistics assets spread across 20 major markets. The largest markets include Los Angeles, Metro D.C. and Pennsylvania. The portfolio was 93% leased as of 30 June 2015, with a weighted average lease expiry of nearly 5.5 years. GLP says the transaction enlarges GLP’s US footprint by 50% by 173 million sq ft, making GLP the second-largest property owner and operator in the US within a year of market entry. The deal comes just months after GLP made its first entrance into the US market with the acquisition of IndCor Properties this past May.

For more news and information visit Blumberg Partners.

LogistiCenter at 33 Breaks Ground

Reno, NV-based commercial real estate developer Dermody Properties and PCCP, the financial partner and a San Francisco real estate finance and investment management firm, broke ground on LogistiCenter at 33, an industrial facility at 4200 E. Braden Blvd. in Forks Township, PA. Jones Lang LaSalle, which has an office in the Lehigh Valley, is the leasing team for the property. HFF served as the broker that represented J.G. Petrucci and Co. in the sale of the property to Dermody and PCCP, according to Gene Preston, partner for the east region of Dermody Properties.

Preston said the new Charles Chrin Interchange along Route 33 in neighboring Palmer Township prompted the deal. "That is the overriding reason ... the new interchange that opened up the Route 33 corridor," Preston said Monday. The interchange, which opened in July, provides easier access to Route 33 and adjoining interstates from business centers such as the one in Forks Township.

"PCCP sees this as a compelling opportunity to develop a Class A industrial facility with Dermody Properties, a best-in-class developer," added John Randall, Managing Director with PCCP. "Additionally, the local industrial market incorporates all of the key fundamentals that promise to attract large user interest. Our goal is to pre-lease the property prior to completion of construction."

Expected to be completed by summer 2016, the facility will feature 36 feet of clear height, 226 car parking spaces, and 85 trailer parking spaces. LogistiCenter at 33 is ideally suited for manufacturing, warehouse, and distribution companies that need to reach the northeastern U.S. population quickly and efficiently. R. S. Mowery & Sons, Inc. is the general contractor for the project, and the firm of Randall Paulson is serving as the project architect.

For more news and information visit Blumberg Partners.