Ecolab Plans $11M Greensboro Expansion

Ecolab Inc. announced this week that it will expand its Kay Chemical Company operations in Greensboro, North Carolina by building a new 37,000 square foot office building, which will create 45 new jobs over the next three years. The company will spend $10 million to expand its Gate City campus with a two-story building to meet growing demand, and will also upgrade the company's existing facility at 8300 Capital Drive, according to a Triad Business Journal article. Bob Sherwood, senior vice president and general manager for Kay's global quick-service restaurant segment, said the company plans to finalize a contractor for the project in the first quarter and break ground on the new facility in the second quarter of 2015. The new building is expected to be completed by the end of 2016.

The company has been made eligible for up to $100,000 in performance-based incentives for the One North Carolina Fund, which provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. Kay is moving forward on the expansion after winning $167,000 in incentives from the city of Greensboro as well as $244,000 from the state, including the $100,000 from the One North Carolina Fund and $144,000 for training and recruitment, Sherwood said.

"Ecolab is excited to expand our Kay business headquarters in Greensboro," said Bobby Mendez, President, Global Services & Specialty Sector, Ecolab. "We have had a great relationship with this community for more than 80 years, and we look forward to continued growth of our Kay business in partnership with the strong workforce in the Triad area."

For more news and information visit Blumberg Capital Partners.

Griffin, Shorenstein Form JV for Houston Justice Complex

Griffin Partners and Shorenstein Properties announced this week that they had entered into a joint venture for the possible redevelopment of the former ExxonMobil headquarters at 800 Bell in Houston, Texas, following the recent discussions regarding a new City of Houston justice complex. The JV aims to redevelop the 45-story high-rise in downtown Houston, which will have 1.2 million square feet of space on offer once ExxonMobil makes its move to The Woodlands in April.

"My hope is that this property will be able to meet the needs being explored at City Hall," Fred Griffin, Griffin Partners' chairman, told GlobeSt.com. "I am fully aware that there are many issues that need to be addressed by Griffin Partners, Shorenstein and the city of Houston to determine if 800 Bell meets the needs for a new City of Houston Justice Complex. We are now approaching the city to discuss details."

800 Bell is a 1.2 millions square foot office tower which includes a 45-story office building and a 7-story parking garage covering 2 city blocks in Houston's Central Business District, built in 1962 as the headquarters of Humble Oil & Refining Company, a predecessor to ExxonMobil. The property has convenient access to Interstate 10, Highway 59, Highway 288 and Interstate 45. In addition, Metro's citywide bus service and rail is also accessible immediately in front of the property. 800 Bell is within walking distance of the new connection to the underground pedestrian tunnel system. The building was purchased by Shorenstein in January 2013 for and is currently being leased back to ExxonMobil until that firm's planned move to its new campus later this year. Griffin says that ExxonMobil is leaving the space in good, usable condition, and that the transition could take from 15-18 months to complete.

For more news and information visit Blumberg Capital Partners.

Miami Beach Getting NBWW Makeover

Nichols Brosch Wurst Wolfe & Associates, Inc. (NBWW), the Coral Gables-based architecture firm that's internationally recognized for the restoration and redesign of many of Miami's most legendary properties, announced that it will be restoring three historic Miami Beach properties. NBWW has been tasked with reviving Kimpton's The Angler's Hotel, The Fontainebleau Miami Beach's North Tower, and The Versailles, located in the new Faena District.

"Architecture must reflect its environment and context, while paying respect to the history of its surroundings," said NBWW partner, Don Wolfe, Jr. "The historic architecture of Miami Beach is what defines the city's spirit. We are honored to continuously be tasked with restoring these iconic properties, while infusing them with textures and finishes for the 21st century and beyond in the hopes that generations to come will marvel in Miami Beach's architectural splendor."

In addition to these three significant properties, NBWW was also the lead architect for the recently opened The EDITION Miami Beach – originally the 1950's Seville Hotel — which is owned and developed by Marriott International and Ian Schrager, according to Metro Citizen. The project is a stunning testament to NBWW's design philosophy of blending modern sophistication with historic charm, which has been carried through all of their prominent restoration projects including the Morris Lapidus-designed Fontainebleau, Eden Roc, Loews/St. Moritz, and DiLido (now Ritz-Carlton, South Beach).

For more news and information visit Blumberg Capital Partners.

Qatar and Brookfield Buying Canary Wharf

Brookfield Property Partners announced this week that its has entered into a 50/50 joint venture with Qatar Investment Authority to acquire the outstanding ordinary shares of Songbird Estates, which owns approximately 69% of Canary Wharf Group. If the offer is approved by Songbird Estates shareholders, the JV will make an offer to acquire the 31% of the outstanding shares of London's Canary Wharf not already owned by Songbird to take full ownership of the East London skyscraper cluster Canary Wharf, one of the world’s leading financial districts. Songbird Estates said it expects its biggest shareholders will accept an offer from Qatar Investment Authority and Brookfield Property Partners it had previously urged them to reject. Songbird said it still thought the $4 billion (3 billion pounds) price undervalued the estate, but with no rival bid forthcoming and holders of 86% of the shares backing the deal, it said its minority investors should accept.

Ric Clark, CEO of Brookfield Property Group, stated, "The placement of $1.8 billion of equity is a great endorsement of our global premier asset strategy. We are on the path to building the world's leading portfolio of best-in-class property assets. This capital will enable us to launch BPY to the next phase."

Qatar Investment Authority said in a statement, "We are making this strategic investment in Brookfield Property Partners as part of our investment plan to diversify globally in the real estate sector. This transaction takes our existing institutional relationship with Brookfield Asset Management to the next level, establishing a global platform for us to ‎continue our collaboration with Brookfield."

The main tower in Canary Wharf — a major office development begun in the 1980s by Toronto-based Olympia & York — is home to some of the world's biggest banks. Companies including Barclays Plc, HSBC Holdings Plc, Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. have offices in the district, best known for the 50-story tower at One Canada Square, the U.K.’s tallest building until the Shard was completed in 2010.

For more news and information visit Blumberg Capital Partners.

Baltimore's Transamerica Tower for Sale

The tallest building in Baltimore came to market this month as the 35-story Transamerica Tower at 100 Light St. was put up for sale, according to commercial real estate services firm DTZ. Lexington Realty Trust, a NYC-based REIT, acquired the property on 12/31/2006, and later enhanced the Transamerica Tower with a $44 million renovation by adding a new parking garage across the street, conference center, cafeteria and fitness center and redesigning the plaza and lobby.

"It's currently 94% leased, and over the years the full renovations have been completed by the ownership, and the market makes it a good time for it to be placed out there. … It's a very competitive market in the gateway cities, so we have more of those capital sources looking at secondary markets to purchase office and industrial product," said Nicole Keelty, a senior vice president at DTZ in Baltimore, which is marketing the property. "It's a good time to be placing it on the market." There is no set asking price for the building, but Keelty said it has already received interest from possible investors.

Transamerica Tower is located in the center of the Central Business District of downtown Baltimore, MD. Major tenants in the facility include Transamerica Life Insurance Company, Ober, Kaler, Grimes & Shriver, and Miles & Stockbridge P.C. The property serves as a general office building.

For more news and information visit Blumberg Capital Partners.

Blackstone Buys German Warehouses for Logicor Unit

Blackstone Real Estate Partners Europe IV announced this week that it had purchased three warehouse properties in Cologne and Düsseldorf for its European logistics company, Logicor. Terms of the deal were not disclosed, but the move is inline with the company's expansion strategy; in April 2013, LogiCor Chief Executive Officer Mo Barzegar told Bloomberg that the company had plans to double its portfolio through 2015 as it seeks to profit from rising rents and values.

"Europe presents a really attractive opportunity because it is a highly fragmented market in terms of ownership of real estate," he said. "There is an opportunity to create a pan- European provider of modern logistics facilities that has access to capital, can provide quality space to customers and, frankly, provides an alternative in the marketplace."

The warehouse properties are located in core logistics markets adjacent to the city centers and are 100% leased to the logistics arm of an unnamed leading German department store. This transaction is the fifth portfolio acquired in Germany over the past year and increases Logicor's overall Germany portfolio by more than 40%, taking it to 550,000 square meters.

"This acquisition substantially increases our exposure in a core European logistics market with solid long-term real estate operating and economic fundamentals," said Mr. Barzegar in a press release this week. "Our investment strategy remains focused on acquiring high-quality, well-located product that represents value-added opportunities in the short to mid-term. This is a great start for us in 2015 and we look forward to building our pan-European portfolio further over the coming months."

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was featured in a CovAfrica article this week titled Egypt and Blumberg Grain Launch World's Largest Integrated Food Storage System, heralding the forthcoming construction of the world's largest integrated food storage system for grain. Launching this April, the 93 sophisticated wheat storage facilities across Egypt that will process 3.7 million tons annually and store 750,000 tons of wheat, saving Egypt approximately $200 million annually, in addition to creating jobs within Egypt's agricultural center. An excerpt from the article follows:

Egypt is the world's largest importer of wheat, as well as Africa's largest wheat producer. The country is intensely vulnerable to fluctuating international food prices, yet it commonly endures post-harvest grain losses of over 40% due to spoilage occurring in traditional, open-air "shouna" storage facilities. Blumberg specializes in the development of cost-effective, efficient storage systems that aim to reduce post-harvest losses to 5% or less. The new storage network will increase profitability and food security by storing, cleaning, and bagging grain products in climate-controlled, secure facilities throughout Egypt.

Following the political unrest that consumed Egypt in 2011, addressing Egypt's food security concerns through infrastructure development proved especially challenging. However, under the leadership of President Abdel Fattah Sisi and the Ministry of Supply and Internal Trade, infrastructure investment has become an increasing priority, and the government is open to investment partnerships. Under Blumberg's $28 million contract with the Egyptian government, the Egyptian army will build at least 93 wheat storage facilities using Blumberg technology; the contract provides for project expenditures of up to $56 million, and the modernization of up to 164 shounas in total.

In addition to revamping Egypt's wheat storage system, Blumberg Grain also plans to build logistics centers for perishable produce across Egypt that will leverage cutting-edge technology to maximize the longevity of perishable produce. Lastly, the company plans to build a $250 million manufacturing plant and export hub that will produce food security technology and equipment for the Middle East and North Africa (MENA) region. While competition for this contract has yet to conclude, the company has stated that Egypt is well-positioned to gain the manufacturing plant and related processing and packing facilities. The plant will create approximately 1,000 new jobs; KPMG estimates that the initiative will have a $1 billion economic impact during its first year, and a $7 billion impact over a five year period.

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

New York's Hudson Yards Skyscraper Breaks Ground

Mitsui Fudosan America Inc. (MFA), the U.S. operations of Japan's largest real estate company, along with Related Companies and Oxford Properties Group broke ground this week on the trophy office tower at Fifty Five Hudson Yards on Hudson Park & Boulevard. The skyscraper is the latest addition to the 28-acre Hudson Yards development, and represents a new trophy property in the expanding portfolio of global real estate leader Mitsui Fudosan Group.

"We are pleased to partner with Related Companies and Oxford Properties Group on Fifty Five Hudson Yards which we consider a new trophy property in the Mitsui Fudosan U.S. and global portfolios," said Yukio Yoshida, President and CEO of MFA. "Related and Oxford are experienced developers with a proven track record for delivering world class projects, making them ideal partners. Hudson Yards is fast becoming one of the most desirable locations for top echelon tenants, offering an unparalleled modern, mixed-use environment. We are looking forward to being a central part of the success of the Hudson Yards development."

"We are thrilled to partner with Mitsui Fudosan America and commence construction on Fifty Five Hudson Yards. Mitsui Fudosan is one of the worlds' most established real estate developers and investors and their partnership on this project further solidifies the appeal of Hudson Yards with both global capital and global companies," added Stephen Ross, Chairman and Founder of Related Companies. "Hudson Yards is already the future home of Coach, Inc., L'Oréal USA, SAP and Time Warner Inc. and we have seen incredibly strong interest in Fifty Five Hudson Yards. Featuring the best in culture, dining, shopping and more, the commercial office space, steps from transportation and lush, expansive green space, Hudson Yards sets a new standard for working in New York City."

Blake Hutcheson, CEO of Oxford Properties Group, said, "The forward momentum at Hudson Yards is evident to everyone who walks by the development. Oxford is pleased to join Related in partnering with Mitsui Fudosan and commencing construction on Fifty Five Hudson Yards. Each organization has deep experience and incredible portfolios of past developments and investments individually, and this new partnership will benefit from bringing the three together for the first time."

Designed by A. Eugene Kohn and Kohn Pedersen Fox Associates (KPF), the fully capitalized, anticipated LEED Gold, 51-story, 1.3 million gross square foot building is expected to be ready for tenant fit-out in 2017. "Simple in form, but rich in detail, the building was inspired by the historic cast iron architecture found throughout SoHo, and aims to relate to the neighborhoods of Chelsea and the Meatpacking District adjacent to Hudson Yards," said A. Eugene Kohn, Chairman of KPF and Design Architect of Fifty Five Hudson Yards. "Fifty Five Hudson Yards was designed to create an extremely workable and efficient office building which is suitable for a variety of tenants both large and small."

For more news and information visit Blumberg Capital Partners.

Blumberg Grain Visits India With An Eye Towards Adding Value to the Country's Ongoing Food Security Initiatives

Blumberg Grain senior executives are arriving in India this week for meetings on food security needs in the public and private sectors.
The Future of Food Security Is Here

The company will also be participating in official business and industry events on January 26th held in honor of visiting U.S. President Barack Obama, and hosted by the U.S.-India Business Council, an arm of the US Chamber of Commerce.

Chairman and CEO, Philip Blumberg, accompanied by senior executives of the US based agribusiness company, will also be evaluating opportunities in India for partnering with Indian companies as well as investing in food processing, manufacturing, and opportunities to establish food security operations in India to reduce post harvest losses, currently estimated at over 50%, to under 5% utilizing Blumberg Grain's state of the art technology and storage systems.

Blumberg Grain's food security technologies and solutions are increasingly taking hold among emerging agricultural economies. The Company was recently selected to develop Egypt's new grain storage infrastructure, which comprises 93 sites across Egypt, and enables primary processing of 3.7 million metric tons of wheat per year across a platform of 3.6 million square feet of storage space. That project will be one of the world's largest integrated food security systems for grain storage. Blumberg is also providing cold chain storage for produce and perishable storage for the Nigerian government, which is anticipated to ultimately comprise the largest cold chain infrastructure on the continent.

Philip Blumberg Chairman and CEO, commented, "Though we have considered investments in India previously, the determination of the Modi Administration to address food security and improve agriculture, combined with President Modi's 'Make in India' initiative, is very aligned with our objectives. We will be evaluating opportunities to manufacture our food security systems and storage in India for domestic use and for export. We are looking forward to meetings with government officials as well as major Indian companies regarding joint-venture/partnership to enter the India market. At the end of the day, we believe that India provides numerous win-win opportunities for our company, Indian agriculture and the Indian people as a whole."

About Blumberg Grain
Blumberg Grain is a leading global food security company, providing harvest protection systems and technology. Blumberg Grain's fully integrated crop and food security systems can reduce post-harvest losses of grain, produce, and other perishables to 5% or less. Blumberg Grain works with private companies and countries to modernize agricultural value chains, increase the quality and marketable output of their harvests, enable efficient market timing, and significantly boost exports of agriculture products. For more information, please visit www.blumberggrain.com.

Blackstone Sells Three Bryant Park for $2.2B

Ivanhoé Cambridge, the real estate arm of Canadian pension fund Caisse de Depot et Placement du Quebec, and its partner, Callahan Capital Properties, announced this week that it had purchased Three Bryant Park at 1095 Avenue of the Americas in New York City for $2.2 billion. The Blackstone Group sold the asset for the second highest price ever paid for a single U.S. office building, just behind the June 2008 sale of the GM Building at 767 Fifth Ave. in New York City for $2.8 billion, according to a CoStar report. The U.S. office portfolio Ivanhoé Cambridge is building with Callahan now totals almost 5 million square feet in New York City and more than 10 million square feet nationally, Callahan chief executive officer Tim Callahan said.

"The opportunity to acquire a truly iconic property like Three Bryant Park is extremely rare," said Arthur Lloyd, Executive Vice President, Global Investments Ivanhoé Cambridge in a press release. "As we redeploy capital that has been rotated out of non-core assets globally, Three Bryant Park represents a cornerstone of our expanding U.S. office platform. The property is 97% leased for the long term to a roster of high-credit quality tenants. It fits perfectly into our investment strategy of building a diversified portfolio of top-quality office properties in gateway U.S. office markets."

"When we considered the quality and unique characteristics of this property, along with the continued enhancements in the immediate area around Three Bryant Park, it was clear this is a compelling long-term investment opportunity," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "We continue to be very pleased with the progress we have made in expanding our U.S. office platform with Ivanhoé Cambridge, which now totals almost 5 million square feet in New York City and over 10 million square feet nationally."

Three Bryant Park is located at 1095 Avenue of the Americas in midtown Manhattan between 41st and 42nd Street. The 41 story 1.2 million-square-foot office building, completed in 1972, occupies a 1.4-acre site and has direct access to New York City's major transit hubs. The property was 97% leased at the time of sale with major tenants including MetLife, Verizon and Dechert LLP.

For more news and information visit Blumberg Capital Partners.

Cordish's $450M Baltimore Arena Proposal

The Cordish Companies, a Baltimore-based global conglomerate of businesses with real estate management and development expertise, has unveiled its plans to build a new $450 million waterfront arena and outdoor performance venue along the Inner Harbor. The proposed 15,000-seat arena would replace the Royal Farms Arena, located about 1 ½ miles away. The proposed location, according to a Baltimore Business Journal article, is tucked between Power Plant and Harbor East, and is currently home to the Pier Six concert pavilion, Pier 5 Hotel, a surface parking lot, McCormick & Schmick's and a Ruth's Chris Steak House. Cordish made a presentation about the plan to the Greater Baltimore Committee recently, which revived perennial debate about how to replace the aging arena on the city's west side.

City Councilman James Kraft, who represents Southeast Baltimore, said his "gut reaction" is to oppose the plan, comparing it to the Hilton hotel, a project he also opposed. That subsidized hotel near the Baltimore Convention Center has struggled financially. "I'd love us to have a new arena, but I'd like to see somebody build it themselves," said Kraft, also citing concerns about traffic and parking. "If they're going to operate it and make a profit, they can pay for it. I don't want the city to put any money into it. We can't meet the needs we have right now."

"We love our hometown and see a once-in-a-generation opportunity to create an iconic waterfront arena that would be a game changing project for the city," Cordish said in a statement. "Obviously, the building of a bridge or arena would require a public/private partnership, but we are optimistic that the public subsidy for this particular location can be limited to incremental revenue that is created by the project. As to subsidy, this particular site is so prominent that the naming rights opportunity will be maximized."

For more news and information visit Blumberg Capital Partners.

Washington Prime Acquires Glimcher in $4.3B Deal

Washington Prime Group Inc., a spinoff of Simon Property Group, announced this week that it had completed the acquisition of Ohio-based REIT Glimcher Realty Trust. The $4.3 billion acquisition was approved by shareholders of Glimcher Realty Trust in a special meeting on Sunday. According to a report from The Columbus Dispatch, the combined real-estate investment trust will be called WP Glimcher and will own and manage about 120 U.S. malls that contain about 68 million square feet of leasable space. Under the terms of the agreement, Glimcher shareholders will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WP Glimcher common stock.

"We are very pleased to have completed our acquisition of Glimcher so quickly, which will allow us to begin taking advantage of the strengths of the combined company, including a broad and diverse group of strong cash flowing assets and a strong platform in Columbus as a foundation for growth," said Mark Ordan, Executive Chairman of WP Glimcher. "We are focused on reducing leverage, including through joint ventures and possible asset sales, maintaining our investment grade rating, strengthening our asset base through development and redevelopment opportunities, and strategically acquiring new properties in both enclosed and open air large format shopping centers that have a long term place in their markets."

Citi is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor, to Washington Prime. Willkie Farr & Gallagher is serving as legal advisor to Washington Prime in connection with the sale of the two Glimcher properties to Simon. GreenOak Real Estate US and Morgan Stanley & Co. are serving as financial advisors, and Simpson Thacher & Bartlett is serving as legal advisor to Glimcher. WP Glimcher expects to issue fiscal year end 2014 earnings in late February, which will provide updated financial information and guidance for the newly combined company.

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

David Blumberg was interview by Africa Agribusiness, detailing the customer history, advancements and current position in the agricultural health and progress in Africa. As another Blumberg Grain Warehouse system is built, Mr. Blumberg spoke with Dave Ramaswamy; an excerpt of the interview follows:

AAM: Do your systems run on a variety of power inputs? Grid power is not always available or reliable, with voltage fluctuations, in these markets.

Blumberg: Good point. When designing our systems, we told our R&D team that they should plan for poor infrastructure as well as harsh climates. The Applied Engineering division designed our units so that a 600-square-meter facility (with 1500 metric tons of storage) can pack up into just one 40-foot cargo container. Our engineers designed our units for fast installation – as little as three days. They designed them for flexible use. Our units are modular when it comes to adding capacity and are upgradable when it comes to adding our technology options.

Speaking to your point about energy – it was clear that the units would have to be able to handle different kinds of energy supply. So we offer solar power, wind power, etc. as a supplementary power source for these systems. Our Grain Vault can run completely on solar power.

AAM: Is it solar PV? How exactly does it work? How do you handle power failure and redundancy?

Blumberg: That's correct, Solar PV on top of the warehouse roof. You can get quite a bit of power out of those panels. What we've done is leverage technologies on the inside of our warehouse that are energy-efficient. The only issue is the cold storage component for which the power needs are quite high. Our cold storage could run on 100 percent solar power, but it then becomes inefficient from an economic perspective.

For our refrigerated storage, what we suggest to our clients is to locate these close to the existing grid. If that isn't possible, we need to have generators in place to run the system. Even if we're on the grid, we have the option to hook into different independent power solutions.

Our video on the technology describes this flexibility and some other features of our systems: http://www.blumberggrain.com/video/

AAM: What is the secret of your success in these demanding markets?

Blumberg: That is because of two things: first, the success that we have realized in the market vis-à-vis the application of our product; and second, for some reason, there haven't been companies that emerged to play a role in this storage space in these emerging markets.

When you look at these developing countries, our competition is, for the most part, local concrete contractors. These contractors put up a concrete warehouse that has only a tangential application to food security. The warehouse offers no specialized ancillary options or specialized components. They don't provide the safety and security needed to keep the crop preserved in-condition. So you continue to see high post-harvest loss rates.

We designed our warehouses with coatings and primers that reflect about 65 percent of the sun's heat. We have seals that create foam closures between each panel. This means you don't have leakage and you don't have water coming into the facility. We've designed our warehouse to be basic nuts-and-bolts assembly, so any skilled labor can put it up fast. So there are no problematic issues with construction, and we can be sure the facility works as intended.

In agriculture, the harvest season dictates the timeline for construction projects. If you miss the harvest season deadline, you lose that year's benefit. It is critical to be fast and timely. We hold the record in the industry for the ability to get 600 square meters of covered storage up, in three days.

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

IRR 2015 CRE Outlook

Integra Realty Resources (IRR), the largest independent market research and commercial real estate valuation and counseling firm in North America, has released its Viewpoint 2015 report, which reveals projections for commercial real estate in 2015 across all property types. In total, IRR expects real estate values to appreciate across all markets, with improved property fundamentals continuing to drive positive yields and attract additional capital to the sector.

"With our independent position in the marketplace, in IRR Viewpoint we have been able to create an incisive and unbiased report that the industry relies on year after year as a primary resource for research and analysis of the commercial real estate industry in the United States," said John Albrecht, CEO of Integra Realty Resources. "This past year we also completed the largest technology investment that IRR has ever made, giving us even more advanced capabilities to research local and national markets and provide our clients with the benefits of our industry-leading expertise on commercial real estate assets."

Key findings of IRR Viewpoint 2015 for the office market include:

• The office property sector continued its relatively steady recovery in 2014, though the sector lags behind other property sectors in the latest national recovery cycle. More local office markets -- both Central Business District (CBD) and Suburban -- are now mired in the recessionary phase and many more are just beginning a recovery.
• After decades of suburban corporate campus building, a key national trend is the return to new CBD construction, as today's younger workforce wants tech-driven office spaces in populous areas. While developers and investors seemingly prefer the CBD office property sector, property fundamentals for the Suburban office sector strengthened just as much as those in the CBD sector nationally in 2014.
• Recent changes in stabilization expectations reversed the trend from the previous few years and now indicate that the Suburban office sector nationally is more likely to stabilize before the CBD sector, albeit at materially lower rental rates and marginally lower occupancy rates.
• 2014 was another robust year for transaction volumes, with most cities experiencing strong volume increases over five-year historical averages. Activity was notably strong in Cincinnati, Boston, Jacksonville, San Francisco, and Philadelphia; transaction volumes were down only in a handful of cities, including Pittsburgh, Seattle, Cleveland, Hartford, and Richmond.

A free download of the report is available here. For more news and information visit Blumberg Capital Partners.

Velocis Buys Trinity Place in Denver for $37M

Velocis, a Dallas-based private equity real estate fund manager, announced this week that it had purchased Trinity Place in Denver's CBD from an affiliate of Broe Real Estate Group. Velocis acquired the 195,753 square foot office building for $37 million, according to Denver County records, marking its second purchase in the Denver market. Mary Sullivan and John Jugl of Holliday Fenoglio Fowler marketed the property on behalf of Broe; under new ownership, Stream Realty will handle leasing for the building.

"Trinity Place caters to small-to mid-sized tenants, offering a boutique atmosphere in a traditional and distinctive building," said Mike Lewis, Velocis principal. "Additionally, the building's proximity to the city's popular attractions as well as a multitude of thriving downtown businesses neighboring the asset provides tenants a truly walkable lifestyle."

"The stabilization of Trinity Place prior to the sale resulted from an aggressive capital improvement plan, rapidly improving downtown market fundamentals and a niche focus on energy and professional services firms. Velocis is acquiring a quality asset with a stable roster of tenants and continued growth opportunities as leases roll to higher market rates," said Scott Gibler, managing director of Broe Real Estate.

Located at 1801 Broadway, Trinity Place is currently 89% leased to 40 tenants including Great Western Oil & Gas, Forrester Oil & Gas, Bank of Colorado and Trinity Grille, as well as other energy, professional services and legal service firms. Originally constructed in 1981, the property was previously acquired by Broe's affiliate in October 2006 from Equity Office Properties and renovated in 2012. Renovations included a major lobby update, complete with full-height windows and museum-quality artwork.

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grian was featured in a Leadership article this week titled "Agriculture Will Lead Nigeria’s Economy In 2015" in which Olukayode Oyeleye examines the current growth in the nation's economy, and Blumberg's contribution to it. An excerpt follows:

One of the things that hallmarked the 2014 was that several meetings were held, with the Honourable Minister, Dr. Akinwumi Adesina, personally presiding, to steer the direction and purposes, which ensured quick decision-making and FMARD commitments, to the benefit of the private sector. The A & I unit enhanced the credibility of the FMARD among private sector as a superior resource in agribusiness development.

Foreign companies saw through the rising profile and prospects of agricultural sector and came calling. One of them is Blumberg Grain; its total investment is estimated at about US $250 million. The project is on fast track implementation timeframe. The contribution of the unit to the first-ever piloting of an electronic warehouse receipt system with government assets, through a public private partnership was notable. The ministry has proved that so much could be done in the right direction to move the sector forward, with the private sector at the forefront. In Kebbi State, farmers experienced firsthand keys to extension of onion shelf life, including varieties, harvesting method, storage conditions (temperature and humidity control) and packaging.

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

Blumberg in the News

A new article from Clement Ejiofor published by NAIJ titled "Why GEJ Is Sure That Nigeria Is ready For Oil Crisis" relays comments made by Nigerian President Goodluck Jonathan on the economy, agricultural transformation agenda, and Blumberg Grain's investment in the country's continued growth. An excerpt follows:

A lot of investment projects are realising within the modernization.

For example, in 2012 Blumberg Grain, the Global food giant invested $250 million in a large-scale food storage facilities for Nigeria’s agricultural sector creating up to 1,000 jobs.

See what David Blumberg, CEO, Blumberg Grain – West Africa thinks of Nigerian agriculture :

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

Hemfosa Takes Full Ownership of Shared Portfolio

Hemfosa Fastigheter AB, a Stockholm-based real estate investor backed by pension funds, announced this week that it had acquired the remaining 50% of a commercial properties portfolio with a market value totaling sek 1.3 billion from Crown Nordic Management. Hemfosa, through Kronfastigheter, had taken an initial half interest in the joint venture in late 2013 through the joint venture Hemfosa Kronfastigheter Holding, which is owned equally by Hemfosa and Crown Nordic, with option on the remainder of the 140,000 square meter portfolio.

"We are delighted that Hemfosa, following one year of joint development and streamlining of the portfolio together with Crown Nordic Management, can now exercise the option to acquire the remainder of Kronfastigheter. The properties are an ideal fit for Hemfosa's growing property portfolio both geographically and strategically," says Jens Engwall, CEO of Hemfosa Fastigheter.

The properties are located centrally in growth districts of southern and central Sweden such as Sundsvall, Gävle, Enköping, Stockholm, Vallentuna, Sigtuna, Norrköping, Linköping, Motala and Uddevalla. The properties in Stockholm, Gävle and Uddevalla account for approximately 70% of the property value.

For more news and information visit Blumberg Capital Partners.

CNL Buys Former Fossil HQ in TX

Orlando-based CNL Commercial Real Estate, Inc. announced this week that it had acquired what was formerly the Fossil Watch Headquarters at 2280 N. Greenville Ave. in Richardson, Texas. CNL purchased the property through a joint venture investment with CenterSquare Investment Management; terms of the deal, representation or a sale price were not disclosed. KDC sold the property to the CNL-CenterSquare joint venture after it originally acquired the asset when Fossil relocated to a larger location in 2011.

"This will be a really cool adaptive reuse of an existing facility," said Jimmy Grisham, managing director of CNL Commercial Real Estate. "We are going to be one of the few large blocks of contiguous space in a rapidly growing market, and will have the competitive advantages of large floor plates, high parking ratios and more than 400 covered parking spaces."

"This investment aligns with CenterSquare's objective of partnering with best in class local operators that have the vision and market experience to develop asset-specific business plans that create significant value enhancement upon execution. We certainly believe we have the right team members in place across the board to achieve the desired results," added Jeffrey Reder, senior vice president for CenterSquare Investment Management.

Originally built in 1994 and expanded in 2001, the 190,000-square-foot, 2-story office building and adjoining 130,000-square-foot warehouse property is located in close proximity to State Farm Insurance's regional hub, as well as a Raytheon's business unit that's relocating to Richardson from Garland. According to a Dallas Business Journal report, CNL plans to immediately convert the existing warehouse building into a 400-space covered parking facility, which increases the office building's parking ratio from three per thousand square feet to more than seven per thousand square feet. This gives CNL the ability to lease the space to a tenant seeking a high parking ratio, such as a call center.

For more news and information visit Blumberg Capital Partners.

Technology's Impact on CRE

The Baltimore Business Journal published an article today titled "5 ways technology is overhauling commercial real estate" in which author Alex Kopicki, co-founder and CEO of Kinglet, examines the major intersection between traditional commercial real estate and the fluid technology industry that will affect the way brokers and clients do business. Kopicki's Top 5 list follows, with excerpted commentary:

Mobile takeover
There were 1.75 billion smartphone users in 2014, according to market research firm eMarketer. Not only is that a lot of devices and users, but that's also a lot of time spent on these devices. So what does this mean for commercial real estate professionals? Quite simply, if your company doesn't have a mobile strategy, you better get one — quick.

A new way to work
The number of co-working facilities across the globe has nearly doubled every year for the past five years. Small Business Labs projects that more than 12,000 global co-working spaces will exist by 2018 with over 1 million members. The convenience of short-term rentals, the attraction to community, the hip-to-be-small attitude and new business formation are all positive trends that will lead to the continued growth of co-working facilities.

Big data
While data can't predict the future just yet, big data can tell us the probability of future decisions, which can lead to actionable decision-making. If you are a commercial leasing agent, a landlord or a service provider, what touch points are you recording about your clients? And what can they tell you about your effectiveness?

Crowdfunding
Today accredited and non-accredited investors, through a multitude of platforms, have the ability to invest in early-stage companies. What this means for commercial real estate is that everyone's customer base broadens as fractional "ownership" increases. It also results in more capital outlets and providers for a more competitive landscape. Let the games begin.

The Internet of Things
This is a simple concept; it's all about connecting everyday devices such as your home thermostat to the Internet. Why would you do this? The better question is: Why would you not do this? More connectivity leads to more control and customization, leading to more convenience. For example, if I'm a leasing agent who can unlock a space for a showing with my phone, I'm going to be able to access spaces for customers after hours or even show spaces on a whim— no keys required. The Internet of Things is digitizing more data and connecting environments in commercial real estate that were previously fragmented.

For more news and information visit Blumberg Capital Partners.