Blue Fin Building Sold to JV for £415M

Time Inc UK, which bought the Blue Fin following its completion in 2007, has agreed to sell the London property for £415 million, or $639 million, to a joint venture between Oxford Properties Group and Temasek Holdings Pte. Ltd. Time Inc UK (formerly IPC Media) originally announced it was putting the building up for sale this past May, expecting to sell for more than £400 million. The building is 100% leased, with Time Inc. UK remaining as the majority occupier under a lease back of approximately 160,000 square feet, and the balance being multi-let to a diversified tenant base. The deal is expected to close by the end of Q4.

Paul Brundage, Executive Vice President and Senior Managing Director, Oxford Properties Europe, said of the deal: "The Blue Fin Building is an iconic asset located in the heart of London's vibrant South Bank district and is a great addition to Oxford's European portfolio, which now stands at over C$7 billion in assets under management in London and Paris. This transaction reinforces Oxford's belief that specific emerging "live-work-play" destinations will outperform over time as a result of infrastructure improvements and shifting occupier dynamics. We are excited to enter into this transaction with Time Inc. and look forward to building a strong relationship with them in the years ahead as an important occupier and customer. This transaction represents the second joint venture in London with our partner Temasek as we look to build on our successful partnership at MidCity Place, London."

The 497,021 square foot Blue Fin, originally known as Bankside 1, was designed by Allies and Morrison and built as part of a development of the area by Land Securities. The property on the south bank of the River Thames has appeared in movies including Salmon Fishing in the Yemen, You Will Meet A Tall Dark Stranger, Page Eight, and the drama Spooks. The Blue Fin Building occupies a prominent position on the Thames' South Bank at 110 Southwark Street, benefiting from excellent communication links with London Bridge, Waterloo, Blackfriars, St Paul's and Southwark stations within a 10 minute walk. Land Securities sold Bankside 2 and 3, as well as its retail holdings in the Blue Fin, to M&G Real Estate in 2013 for £315 million.

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JLL's Five Tips For Cutting Property Management Costs

JLL regional manager of Property Management Steven Froot spoke with GlobeSt.com's Jennifer LeClaire and offered five tips for cutting the cost of property management. "For a 34-story trophy office asset on Brickell Avenue that JLL manages, we were able to be very cost-conscious by arranging a group bid for vendor services to get better pricing for the client," Froot says. "Additionally, we utilized some very strategic sustainable programs to reduce energy usage at this particular building and that had a positive impact on its operating expenses."

TIP ONE
Offer amenities in the building that enhance the tenants' experience.

TIP TWO
Implement a strong tenant relations program, which should include making regularly scheduled visits to tenants, to ensure they are highly satisfied.

TIP THREE
Ensure excellent curb appeal at the property to help create a positive first-impression when prospective tenants are touring the building.

TIP FOUR
Invest resources in creating an energy efficient building to make it more affordable for the tenants and ultimately, for the property's ownership as well.

TIP FIVE
To compete and stay cost conscious, regularly bid out services to ensure you are getting the best service pricing in the industry. Hiring a competent and experienced property management firm that can act as an extension of the ownership can help achieve this goal.

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CREA Investments Buys 2 DFW-Area Office Buildings

CREA Investments, a privately held real estate investment firm, has picked up The Meridian and The Belvedere, two Class A office buildings totaling 241,539 square feet in Addison and Irving, Texas, for an undisclosed sum. The properties were sold by Fort Worth-based Klabzuba Realty and marketed by HFF; terms of the deal were not released, but HFF noted that they were sold free and clear of debt.

"These transactions represent successful round trips that generated attractive returns to our investors," said Klabzuba Realty Executive Vice President Clint Corn in a press release. "We remain committed to proactively recycling our capital into urban infill opportunities in major Texas markets."

The Meridian is located at 1425 Greenway Drive in the Las Colinas master-planned business and residential community immediately adjacent to DFW International Airport in Irving. The six-story property was 90% leased at the time of sale and features 100,359 square feet of space.

The Belvedere is located at 14881 Quorum Drive in the Far North Dallas market along the Dallas North Tollway, offering access to all of the city's commercial centers including DFW International Airport, Love Field, Legacy Business Park and Preston Center. The 141,180-square-foot, nine-story building is 79.8% leased.

For more news and information visit Blumberg Partners.

Record Year in the Making for US Industrial

Cushman & Wakefield released its Q3 2015 research findings this week, revealing that despite concerns about slower growth in China and increased volatility in the U.S. and global financial markets, the U.S. economy maintained its trajectory of steady and modest growth in the third quarter. The MarketBeat U.S. Industrial Snapshot report for Q3 shows industrial vacancy rates at their lowest level since 2007, with significant absorption and low vacancies, both of which are placing upward pressure on rents in most major industrial hubs.

"This has been a fairly healthy and long cycle," John Morris, logistics and industrial services lead, Americas, Cushman & Wakefield, told GlobeSt.com. But even though the good times have now stretched out for several years, "there is still a lot of net new development, much of it driven by e-commerce." According to the report, the economic environment in 2016 should support continued job gains, pushing the unemployment rate down below 5% and improving the outlook for the American consumer.

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

Harsch Buys Tucson Office & Flex-Industrial Portfolio

Harsch Investment Properties, a Portland-based real estate firm, announced that it had purchased a 190,000 square foot portfolio in Tucson, Arizona for an undisclosed sum. The portfolio includes the 60,000-square-foot Butterfield Corporate Plaza, a high-end office/R&D flex property, and the Tucson Airport Center, a 130,000-square-foot project with office and industrial tenants. Bill DiVito and Jesse Blum of CBRE Tucson served as the listing brokers for both the Butterfield Corporate Plaza and the Tucson Airport Center. The final sale price and terms of the deal were not disclosed.

Bill Rodewald, Harsch Investment Properties southwest regional manager, told GlobeSt.com: "The demographics are impressive not only from the standpoint of population growth but because the median age is so young and dynamic. The University of Arizona is a very big factor in this trend since more highly skilled graduates are now tending to stay in Tucson and create new companies. The Downtown core has been dramatically changed by the Sun Link streetcar line that runs from the university to downtown and has transformed the area to the new hotspot for both student housing and nightlife. These trends should bode very well for the surrounding industrial markets that serve the Tucson and Southern Arizona markets."

For more news and information visit Blumberg Partners.

WealthCap and JBG Secure $108M Chase Tower Loan

Landesbank Baden-Wurttemberg (LBBW), the Stuttgart-based parent company of three commercial banks, has provided a $107.6 million loan against the Chase Tower in Chevy Chase, Maryland. The financing was arranged by Cushman & Wakefield to replace a $82.2 million loan provided by Metropolitan Life Insurance Co. in 2005. The collateral property consists of a 12-story office building with 230,000 sf at 4445 Willard Ave. and a two-story retail building with 15,835 sf at 4459 Willard Avenue, according to a Commercial RealEstate Direct article. It is owned by a venture of JBG Cos. and WealthCap Management Inc., a subsidiary of UniCredit Bank of Munich, Germany.

"We continue to see strong Lender demand for quality buildings with strong sponsorship," said John Campanella of Cushman & Wakefield. Chase Tower is a 245,835 square foot mixed-use project comprised of a Class A, 12-story office building, a two-story retail building and a community park located in Chevy Chase, MD. It is one block from the Friendship Heights Metro Station (Red Line), which provides direct access to downtown Washington, DC and other areas including Bethesda, Rockville and Gaithersburg. The property was originally developed by JBG and JPMorgan Asset Management, but JPMorgan sold its 90% stake in 2005 to WealthCap.

For more news and information visit Blumberg Partners.

NYL Buys Culver City Property for $131M

New York Life Real Estate Investors, a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company, announced this week that it had closed on the acquisition of a two-building office property in Culver City, California for $131.25 million, or $296 a square foot. The property was sold by Chicago's Pearlmark Real Estate Partners, who originally purchased the property for $275 per square foot in 2008 from Arden Realty Inc. Bob Safai of Madison Partners represented Pearlmark in the transaction, while New York Life represented itself.

"The 400 and 600 Corporate Pointe properties represent an excellent opportunity to invest in two high quality assets. We plan to upgrade and re-position the two buildings so that they will continue to attract top tier tenants from within the Los Angeles market," said Chris Hunt, senior director at New York Life Real Estate Investors.

"Once refreshed, these buildings will be well-positioned to take advantage of the tremendous demand from technology, media and content companies expanding in the Playa Vista area," added David Binswanger of Lincoln Property Company who will manage the properties for New York Life Investors.

Situated in the prime Lower Westside market area and constructed in 1987 and 1989, 400 and 600 Corporate Pointe consists of two separate, class A office towers totaling 443,705 rentable square feet, along with two on-site parking garages offering a total of 1,584 parking spaces. 400 and 600 Corporate Pointe have a diverse rent roll with notable national, regional and local tenancy including ADP, Sony, Schwarzkopf Professional, ITG Software, Premier Office Centers, Colonial Life, and Antioch University.

For more news and information visit Blumberg Partners.

NJ ePort Logistics Center Sold to Bridge

Bridge Development Partners LLC, the Chicago-based real estate developer, has closed on a $62 million deal to buy a 103-acre industrial site called ePort Logistics Center in Perth Amboy, New Jersey. The spec property was sold by a joint venture between Goldman Sachs and Viridian Partners in a deal arranged by CBRE; full terms were not disclosed.

Bridge Development said it will start construction immediately on the three speculative industrial buildings, which will be known as ePort Logistics Center, with plans to deliver the buildings in 2016, according to a NJ Biz article. "We are excited to have the opportunity to acquire such a large tract of land in one of the busiest markets in the country,” Jeff Milanaik, principal at Bridge Development Partners, said in a press release. "The ability to construct 1.3 million square feet of distribution space on one property in such a mature market as New Jersey doesn't come along every day."

Once the site of an American Smelting & Refining Co. facility, Bridge expects the project, including the land purchase, to cost more than $150 million, according to Mr. Milanaik. The site is fully approved for the development of 1.3 million square feet of speculative class A warehouse and distribution space, featuring three buildings located at 980 High St., 1000 High St. and 960 High St., comprised of 718,200 square feet, 354,250 square feet and 220,200 square feet, according to a GlobeSt.com report. Viridian took 18 months to remediate the site, working with the Perth Amboy Redevelopment Agency, and delivered a pad-ready site for development.

"This project marks an industrial revival in Perth Amboy," added Mayor Wilda Diaz. "The creation of local job opportunities and the realization of new ratables are the primary goals of establishing a sustainable project that will continue to carry Perth Amboy into a prosperous future."

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Casey Brown Makes First Acquisition with $52M San Diego Property

Casey Brown Company, led by commercial real estate veteran Casey Brown, previously founder and president of BBL Commercial Real Estate, has acquired the San Diego Union-Tribune property in Mission Valley for $52 million from Manchester Financial Group. According to a CBRE Group Inc. announcement, the campus acquisition marks the first purchase under the newly launched company. CBRE will be leasing the 13-acre property, which includes a 170,000-square-foot, five-story office building and a 190,000-square-foot, three-story industrial building. Terms of the deal were not disclosed.

"I was drawn to the asset given its premier central location at the intersection of I-8 and SR-163, which is further enhanced by the walkability to the Green Line Trolley stop and Fashion Valley, San Diego's premier mall. I plan to make this an iconic landmark for all of San Diego," said Casey Brown. "I have a great deal of respect for Doug Manchester and the Union-Tribune and I look forward to celebrating the rich history of the campus while converting it to the next generation office environment."

Located at 350 Camino de la Reina, the complex housed the San Diego Union-Tribune staff since 1973, which moved production and distribution earlier this year after Manchester sold to Tribune Publishing for $85 million. Casey Brown Company says it has plans to upgrade the existing office building into an amenity-rich, Class A corporate campus, while the industrial building is currently being evaluated for alternative uses.

For more news and information visit Blumberg Partners.

PCCP, Capstone JV Developing PDX Logistics Center II

PCCP, LLC, a California-based real estate finance and investment management firm, has partnered with Capstone Partners to develop a Class A, 355,200-square-foot industrial building in Portland, Oregon. Situated on a 17.2-acre site, PDX Logistics Center II is adjacent to the Portland International Airport and the PDX Phase I development, also a joint venture between PCCP and Capstone.

"We are pleased to embark on a second quality industrial project with Capstone Partners in the Portland region. The firm has a history of successful development in the Pacific Northwest, and PDX Logistics Center II will deliver a highly institutional project in an irreplaceable logistics-oriented location," said Erik Flynn, managing director with PCCP, in a press release.

PDX Logistics Phase II will be a 32-foot clear height, cross-docked building which will allow for either a full building user or a multi-tenant situation. The Portland industrial market continues to show strength, according to a GlobeSt.com article. It has seen a decrease in vacancy from 5.7% in the second quarter of 2014 to 4.8% in the second quarter of 2015 with rents increasing 9.3% during the same timeframe.

For more news and information visit Blumberg Partners.

Davis Sells Tower Point in Boston

The Davis Companies (TDC), the Boston-based real estate investment, development and management firm, announced this week that it had sold Tower Point in South Boston's Seaport District to the Rockpoint Group for $62.1 million. TDC originally acquired the property in 2013 for $43.3 million, retaining Cushman & Wakefield as the leasing agent. Prior to that, Meritage Properties, a New York-based owner and operator of office properties, bought the six-story property in 2008 for $32 million. Newmark Grubb Knight Frank represented TDC in the transaction; terms of the deal were not disclosed.

The 155,170-square-foot, Class A, brick-and-beam office building at 27–43 Wormwood St. in South Boston's Seaport District, which was built back in 1900, is recognized by its iconic smokestack. TDC invested significant capital in the property, upgrading the building with modern finishes and adding an outdoor courtyard, bringing the occupancy from 74.3% in 2013 to 95% at the time of sale. Current tenants include Rethink Robotics, Healthways, NPR, Zerto and Owner IQ.

For more news and information visit Blumberg Partners.

Fed's Beige Book and Commercial Real Estate

The U.S. Federal Reserve's latest Beige Book, more formally called the Summary of Commentary on Current Economic Conditions, was released today with figures pointing to continued modest expansion in economic activity during the reporting period from mid-August through early October. Citing "generally weaker" manufacturing activity, "subdued" wage expansion and a "slowed" pace of growth in some regions, the Fed's report highlights a handful of concerns while offering a modestly optimistic economic assessment overall.

According to the report, commercial real estate markets have shown signs of strengthening in all twelve federal reserve districts. Most noted improvement across all major segments, though New York and St. Louis noted some increased slack in the market for retail space. Commercial construction was also stronger, with Boston and St. Louis noting brisk construction in the health sector, including senior care facilities, and Cleveland also indicating strong demand for senior living structures. New York, on the other hand, noted some pullback in new commercial construction, though activity remained fairly brisk.

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

R2 Buys the Post Office Building in Milwaukee

Chicago-based developers R2 Companies, in a joint venture with Polsky Holdings, acquired the downtown Milwaukee U.S. Postal Service building property, one of the city's largest buildings, for $13.05 million. The 1.1 million-square-foot building at 341 W. St. Paul Ave. was put on the market this past May, listed for sale with a $12.8 million asking price. Milwaukee brokerage Barry Cos. arranged the sale on behalf of the seller, Menomonee RP LLC, who purchased it for $16 million in May 2007; terms of the deal were not disclosed.

Matt Garrison, managing principal of R2 Companies, said the roughly 1-million-square-foot building on West St. Paul Avenue is among the "largest, most meaningful redevelopment sites in Milwaukee." Besides renovating the current building, the new owners could build 900,000 square feet of new space on neighboring vacant land, or in a vertical expansion, he said. The Postal Service leases the massive building and its current term lasts about five more years, with options for lengthy extensions. However, whenever the Post Office may move out, there is a major redevelopment potential, according to Garrison.

"This is one of the largest investment-development transactions in southeast Wisconsin in 2015 and indicates the continued interest in the downtown Milwaukee market," Jim Young of The Barry Companies said in a statement. The 9.3-acre site has significant frontage on the Milwaukee River. On the opposite bank is the Harley-Davidson Museum, and city planners have floated the idea of a pedestrian bridge over the river at that point. The city's long-range downtown plan calls for the building's redevelopment into something different, including potentially housing, a hotel, office, or retail.

For more news and information visit Blumberg Partners.

CRE Prices Crest Pre-Recession Peak

The latest Moody's/RCA Commercial Property Price Indices (CPPI) report was released this week, revealing that in August the CPPI rose 1.6%, topping its pre-crisis peak on a Consumer Price Index (CPI) adjusted basis. According to the report, which captures the national all-property composite index over the past three months, the CPPI now stands 14.5% above its pre-crisis peak on a nominal basis and 1.5% above it on a real, CPI adjusted basis. Central business district (CBD) office was the best-performing segment, while core commercial property prices are approximately 8% higher than their prior peak,

"Central business district office was by far the best-performing segment of the CPPI in the past three months, with prices rising 6.3%," says Moody's Director of Commercial Real Estate Research, Tad Philipp. "Suburban office was the next-best-performing segment, with prices up 3%."

Jim Costello, RCA's senior vice president, said prices have been pushed up because the capitalization rates have been falling. The cap rate is a commonly used formula for valuing a commercial-property investment. It's calculated by dividing a property's net operating income by its current market value. If the cap rate falls while the expected income from the property remains roughly the same, the asset values tend to rise. "Most of the strong price appreciation we've seen to date has been a function of cap-rate compression, something like 70% of the price increases, in fact," Costello said.

Moody's/RCA researchers note that the only property sectors where prices have not exceeded their pre-recession peak are retail (still down 7%) and suburban office (down 9%). Moody's research subscribers can access the latest report here. For more news and information visit Blumberg Partners.

Nestlé Opening $70M Product Technology Center in NJ

Nestlé Health Science, a Nestlé subsidiary established four years ago, announced this week that it is investing $70 million to build a Nestlé Product Technology Center (NPTC) in Bridgewater, New Jersey. The development will become the unit's new U.S. headquarters and research hub and is expected to open in 2016, at which time the company will relocate its current research and development activities from Minneapolis and headquarters from nearby Florham Park.

"The new facility will house the latest technologies and people in the field, uniting our R&D and business teams in a region with strong life-science activity," division head Greg Behar said. "It will enhance and accelerate the quality and speed to market of Nestle Health Science's innovations that improve nutritional status and health outcomes."

The Bridgewater facility will be one of more than 30 Nestlé Product Technology Centers around the world. The Bridgewater Center will deliver applied research, specialized technology, nutrition translation and innovative product development supporting Nestlé Health Science’s three main business areas: Consumer Care, Medical Nutrition and Novel Therapeutic Nutrition.

For more news and information visit Blumberg Partners.

HFF Arranges $24M for NJ Warehouse

Holliday Fenoglio Fowler (HFF) announced this week that it had arranged $23.8 million in construction financing for a 138,642-square-foot built-to-suit warehouse in Elizabeth, New Jersey. The construction/perm loan was provided by The Provident Bank to a partnership between Elberon Development Group and The Avidan Group that is developing the new state-of-the-art freezer warehouse. The HFF team representing the borrower was led by director Michael Klein and senior managing director Jon Mikula. HFF previously marketed the property on behalf of the former owner, Oakmont Hayward I LLC, and procured a buyer, Fairmount Redevelopment Group, selling the redevelopment site for $5 million in January 2014. Fairmount Redevelopment Group is led by Josh Avidan of The Avidan Group and Dave Gibbons of Elberon Development Group.

"The borrower was looking to take interest rate risk out of the equation given the tenant's 20 year lease and engaged HFF to secure a construction loan that would roll right into a long-term perm loan," Klein said. "The Provident Bank clearly understood this specialty use product as well as the tenant's business model and was able to provide a loan that best met the borrower's short and long term needs."

Located at 900 Fairmount Ave., the cold storage facility development is expected to be completed in June 2016. Seafrigo NA Cold Storage, a logistics company for the food business, will occupy 100% of the space, according to a NJBIZ article. The property is less than five miles from Newark Liberty International Airport and the port of Elizabeth/Newark, and also in close proximity to an extensive highway network that allows ready access to Interstate 78, Interstate 278 to Staten Island and Brooklyn and State Highway Routes 1 and 22.

For more news and information visit Blumberg Partners.

Tysons Corner Gannett HQ Sold for $270M to London Buyer

London-based Tamares Group, partnered with the Ilmarinen Mutual Pension Insurance Company of Finland, has closed on the purchase of Gannett's headquarters complex in Tysons Corner, VA for $270 million. The property was sold by TEGNA, a broadcast and digital media company that spun off from Gannett Co., parent company of USA Today, over the summer. Under terms of the deal, Gannett will remain in the building under a 12-year contract, while TEGNA secured an 18-month deal for 166,000 square feet of space, or 20% of the building. Full terms of the deal were not disclosed, but CBRE, who brokered the transaction, has also been tapped to provide leasing services while Tamares repositions the property from single to multi-tenant use.

"Tamares has been active in Washington, D.C, area real estate for over 30 years and is proud to add 7950 Jones Branch Drive to our portfolio," said Poju Zabludowicz, Chairman of Tamares. "This state-of-the-art-facility is one of the keystone properties in Northern Virginia and greater Washington, D.C. We look forward to enhancing the property and applying our local experience to attract new tenants to make 7950 Jones Branch Drive some of the most sought after first-class commercial office space in the area. And we are delighted to expand our cooperation with Ilmarinen."

Designed by Kohn Pedersen Fox Associates and project managed by Hines, 7950 Jones Branch Drive in Tysons Corner was completed in 2001 and includes a nine-story, 300,000-square-foot North Tower and the adjacent 11-story, 530,000-square-foot South Tower. The property also offers tenants a 20,000 square foot fitness center, a 1-mile jogging track, tennis courts, and basketball courts.

For more news and information visit Blumberg Partners.

Colorado's DJ Basin Oil & Gas Assets Sold for $900M

Through a jointly formed entity, Canada Pension Plan Investment Board (CPPIB) and The Broe Group have signed an agreement to purchase ll of the Denver Julesberg (DJ) Basin oil and gas assets in Colorado from Encana Oil & Gas Inc., a subsidiary of Encana Corporation, for $900 million. The DJ Basin acreage comprises 51,000 net acres, which produced an average of 52 million cubic feet per day of natural gas and 14,800 barrels per day of crude oil and natural gas liquids for the first half of 2015. Through the joint entity, CPPIB will own a 95% interest and The Broe Group will own a 5% interest, according to a press release. Terms of the deal were not disclosed, but the transaction is expected to close in the fourth quarter of 2015, with an effective date of April 1, 2015, according to a Bloomberg report.

"The DJ Basin is one of the leading oil and natural gas plays in North America and Encana's assets and operations have long been regarded as top-tier by industry standards," said Avik Dey, Managing Director, Head of Natural Resources, CPPIB. "This investment offers attractive economics and aligns well with our strategy for the energy sector. We look forward to working with our partner to create value and grow the business."

"This is a milestone transaction for The Broe Group and represents the kind of investment we are actively seeking," added Claude Pumilia, COO & CFO of The Broe Group. "We are pleased to be partners with CPPIB to acquire valuable assets from Encana. The combination of the management expertise of The Broe Group with the financial strength of CPPIB will drive the success of this new venture."

Under Chief Executive Doug Suttles, Calgary-based Encana is transforming into a major oil producer by concentrating spending on regions rich in gas liquids and oil and selling off natural gas assets, according to a Reuters report. Encana also sold its Haynesville natural gas assets in northern Louisiana for $850 million to GEP Haynesville LLC in August. Including the Denver Julesburg sale, cash proceeds from divestitures in 2015 will be about $2.7 billion, the company said.

For more news and information visit Blumberg Partners.

Manulife Buys HK Office Tower

Manulife (International) Limited, a member of the Manulife group of companies, announced that it had completed the purchase of a new 21-story office building in Hong Kong's new Central Business District. The tower, dubbed the Manulife Tower, was developed by Wheelock Properties, the subsidiary of Wheelock and Company Limited of Hong Kong. Wheelock and Manulife signed a sale-and-purchase agreement in 2013 for HK$4.5 billion, which marked the largest single office tower purchase in Kowloon.

"We are very pleased to see the completion of the purchase of Manulife Tower, which is our brand new flagship building in Hong Kong," said Roy Gori, President and CEO at Manulife Asia. "Nestled in the heart of Hong Kong's new premier Central Business District, our investment in Manulife Tower is a testament to our long-term commitment to the region and Hong Kong where our regional hub is based. Manulife Tower also provides us the flexibility to meet the needs of our business growth in Asia."

Located at 83 Hoi Bun Road, Kowloon East, the Manulife Tower will serve as the office of some of the company's regional and Hong Kong operations, and also the majority of its agency offices. Other Manulife offices continue to be located in Causeway Bay and Kwun Tong. Manulife is expected to take occupancy of Manulife Tower by end of 2015.

For more news and information visit Blumberg Partners.

Hudson Pacific Sells Burlingame Office Complex for $90M

Los Angeles based Hudson Pacific Properties announced this week that it had sold the Bay Park Plaza office complex outside of San Francisco in Burlingame, California to H&Q Asia Pacific for $90 million in an all-cash transaction. H&Q Asia Pacific is an Asian private equity firm founded in 1986 by Ta-lin Hsu as a branch of the investment bank Hambrecht & Quist. Eastdil Secured represented Hudson Pacific and Alain Pinel Realtors represented H&Q Asia Pacific in the transaction.

The property was part of the larger San Francisco Peninsula and Silicon Valley portfolio, which Hudson Pacific had acquired from Blackstone Real Estate Partners V and VI, in a stock-and-cash deal worth $3.5 billion, in the first half of 2015, according to a Zachs report. Hudson Pacific said that it's using proceeds from the transaction to pay-down a portion of its $550 million two-year term facility.

"By selling Bay Park Plaza, we're disposing of a non-strategic asset at a premium to our original purchase price allocation as part of the Blackstone portfolio," said Victor Coleman, Chairman and CEO of Hudson Pacific Properties. "The transaction highlights our ability to generate additional value from these newly acquired properties, and is another sign of the Bay Area economy's strength."

The 260,183-square-foot Bay Park Plaza office property (renamed GIC Burlingame Bay) includes two Class A office buildings at 555 Airport Boulevard and 577 Airport Boulevard in Burlingame on a 13-acrew waterfront site two miles away from the San Francisco International Airport. According to a press release from Hudson Pacific, Virgin America occupies the majority of 555 Airport Boulevard, which serves as its corporate headquarters, though the overall property occupancy rate was not disclosed. H&Q Asia Pacific noted in its press release on the transaction that the property will be a hub for technology companies offering its members and tenants the opportunity to "benefit from the disruptive technology innovation, entrepreneurial experience, and human capital of the Silicon Valley through a platform of advisory services, programs, and commercial and strategic partnership opportunities."

Dr. Ta-lin Hsu said, "I am very pleased to announce the next step in the development of the Global Innovation Center. This project represents the culmination of 30 years of cross-border technology investments by H&QAP and our portfolio of relationships with governments, technology parks, leading technology companies, financial and academic institutions and technology service providers. Our goal is to create a unique ecosystem to foster innovation and provide growing technology companies with access to crucial relationships and value-added services. H&QAP plans to continue exploring opportunities to develop Global Innovation Centers in other technology centers around the world."

For more news and information visit Blumberg Partners.

Liberty Property Makes $93M Buy in TX

Liberty Property Trust, the Malvern, PA-based real estate investment trust, announced this week that it had purchased three buildings and 139 acres of additional land in La Porte, Texas for approximately $93 million. The property was sold by Port Crossing Commerce Center, a joint-venture of National Property Holdings and ML Realty Partners, which developed the complex together with leasing handled by Colliers International. Liberty purchased the 139 acres of land with plans to add an additional two million square feet of development to Port Crossing Commerce Center. Terms of the deal were not disclosed.

"Strategically, it's been our goal to expand our presence in the southeast/La Porte submarket. We see strengthening fundamentals in this submarket due to one, the positive downstream impact that low oil prices have had on the petrochemical industry, and second, the significant investment and expansion in Houston's port facilities." said Jay Kraft, vice president and city manager for Liberty Property Trust's Houston region in a press release. "With the additional land that will be acquired, we will have the opportunity to leverage our company's expertise in development on the site."

The three 100% leased buildings consist of two rail served and a cross dock building, totaling 921,196 square feet. Phase I development for the 139 acres, which could include a 408,000 square foot cross dock building and a 105,000 square foot rear load building, could commence in 2016.

For more news and information visit Blumberg Partners.