Chinese Firm Buys SF Office Tower for $255M

A subsidiary of HNA Ecological Technology Group Co., Ltd., a division of HNA Group of China, has acquired the 29-story office building at 123 Mission Street in San Francisco for $255 million in cash. The Class A office tower was sold by the U.S. subsidiary of Great Eagle Holdings, a Hong Kong real estate company that also owns the luxury hotel chain, Langham Hospitality Group. Great Eagle Holdings' Bay Area arm, Pacific Eagle Holdings, paid $179 million for the office tower December 2013 when it purchased the office building from Sumitomo Corp. of America.

"As the prices of office buildings in San Francisco have appreciated rapidly over the past year, especially in downtown San Francisco where the building is located, the general partner and asset manager believes that it is appropriate to dispose of the property," allowing the seller "to take advantage of the favourable market conditions," Great Eagle Holdings said in the filing.

123 Mission, formerly the Pacific Gas & Electric Building, was designed by Skidmore, Owings and Merrill and developed by the Shorenstein Company in 1986; the Gensler-designed lobby was later renovated in 2009. At ground level, the building includes 2,577 square feet of retail space for four vendors, and below grade parking to accommodate up to 90 parking stalls. Located in the San Francisco Financial District’s South of Market submarket, the 346,000 square foot office building is two and a half blocks from San Francisco Bay and a short distance to the AT&T Park, home of the San Francisco Giants. The building is currently 95% occupied with 14 tenants, according to financial documents.

For more news and information visit Blumberg Partners.

Charlotte's CLT Logistics Center Sold for $46M

Minneapolis-based Meritex, a private real estate investment and management company, announced its first acquisition in the Charlotte, NC real estate market with the purchase of the industrial CLT Logistics Center for $46.3 million. In a deal brokered by CBRE, the 11 building industrial complex was sold by Carlson Real Estate. Terms of the sale were not disclosed, and it's unclear when Carlson originally acquired the property.

"This acquisition is in keeping with our strategy of investing in markets that provide opportunity for growth, expansion and diversification," said Dan Williams, chief investment officer for Meritex, in a press release. "The CLT Logistics Center comes with a sizable and diverse array of highly functional assets and excellent tenants. It also provides us with the opportunity to develop up to three modern industrial buildings totaling 200,000 square feet on the adjacent land site."

The 583,021 square foot complex at Yorkmont and International Drive includes a 14-acre land parcel ready for development. Each building features durable and attractive concrete tilt wall construction, 18-20 foot clear heights, full sprinkler system, truck-high loading docks and drive-in doors, and abundant parking. The property was 91% leased at the time of sale with major tenants including Bimbo Bakeries, FedEx and DC74 Data Centers. Foundry Commercial has been named the listing agent and property manager for CLT Logistics Center.

For more news and information visit Blumberg Partners.

Mesirow Buys Verizon's Dallas HQ for $344M

Chicago-based Mesirow Financial announced this week that it has acquired the 1.15 million square foot regional headquarters for Verizon in Irving, Texas in a sale-leaseback deal worth $344 million, one of the largest real estate deals in North Texas this year. Mesirow Financial’s Sale-Leaseback Capital group in partnership with Kawa Capital financed the purchase in collaboration with Mesirow Financial’s Credit Tenant Lease and Institutional Sales and Trading groups. Under the terms of the deal, Verizon will lease back the full property for 20 years with optional extensions. Cushman & Wakefield served as Verizon's real estate adviser on the transaction.

"This transaction once again signifies the strong collaboration between our capital markets businesses. We continue to enhance our full-service platform in acquiring single-tenant properties on a national basis, complemented by our strong capabilities in mezzanine and senior debt placement," said Richard Price, chairman and chief executive officer of Mesirow Financial, in a press release.

"This transaction provides our company with immediate financial benefits and does so in a way that supports our continuing interests in the development of Las Colinas. The extension of our tenancy through a sale and restructured lease affirms the value we see of having located in such a dynamic area for so many years," added John Vazquez, senior vice president and head of global real estate for Verizon.

The 51.2 acre campus on Hidden Ridge Drive near State Highway 114 was built in 1991 and sits adjacent to a planned $1 billion mixed-use project dubbed Hidden Ridge, to be developed by KDC and include offices, a new commuter rail station, shops and a hotel. Mesirow Financial plans to invest $20 million to upgrade the parking and facilities at Verizon in the next three years, according to a Dallas Business Journal article. Last May, Mesirow Financial acquired Verizon's campus in New Jersey, which was valued at $650 million, which are among the two largest non-government single asset credit tenant lease deals ever consummated, said Stephen Jacobson, a senior managing director of Mesirow's credit tenant leaseback and structured debt products group.

For more news and information visit Blumberg Partners.

Akridge, Western Development Pick Up Former CG HQ at Buzzard Point

A consortium of real estate developers and investors, including Orr Partners, Redbrick LMD LLC, and Jefferson Apartment Group, led by Western Development Corporation and Akridge announced the acquisition of the former U.S. Coast Guard headquarters at Buzzard Point in DC for $49.3 million. The Akridge and Western Development team said it has plans to redevelop the property with Orr Partners and Jefferson Apartment Group into a mixed use project. Washington-based Redbrick sourced, capitalized, and structured the transaction, with EagleBank and Greenfield Partners providing financing for the project.

"Just as Akridge and Western did so well at Gallery Place, at Riverpoint we will create a place that brings people to a unique spot in DC – the confluence of the Anacostia and Potomac Rivers—to enjoy great food, listen to music, and relax at the water's edge," said Herb Miller, Chairman of Western Development Corporation.

"We are thrilled to partner with Western Development again," added Matt Klein, President of Akridge. "Riverpoint is an incredible opportunity and we are eager work with such a talented team to build DC's next great waterfront community there."

The new project, dubbed Riverpoint, will deliver 80,000 square feet of restaurant and retail space, as well as over 450 apartment and condominium units and waterfront activities with new piers, floating restaurants and the continuation of the Anacostia Riverwalk Trail. Riverpoint will feature three sides of unobstructed water views, and connect the area with the new DC United stadium and other developments along the Capitol Riverfront, including the Ballpark District, and The Wharf. Western Development will lead the development and leasing of the retail and waterfront portions of the project.

For more news and information visit Blumberg Partners.

BKM Pays $45M for Tukwila Commerce Center

BKM Tukwila 117, an LLC associated with BKM Capital Partners of Irvine, California, has purchased a 30.3-acre industrial park in Tukwila, Washington for $45.2 million according to King County records. The 27 building industrial park, known as Tukwila Commerce Center, was acquired at a discount to replacement cost and peak pricing, according to Brian Malliet, CEO and Co-Founder of BKM Capital Partners. The property was sold by Icon Tukwila Owner Pool 2, an LLC associated with Global Logistics Properties, in a deal brokered by CBRE. Global Logistics Properties, a Singapore investment and property management company with U.S. headquarters in Chicago, originally acquired the complex in April 2015 for $52.7 million from an affiliate of Walton Street Capital.

The Tukwila Commerce Center industrial park at 601-6699 Strander Blvd. and 800-1164 Industry Dr. in the Kent Valley submarket of Seattle was originally developed in the 1970s. The multi-tenant warehouse/business park buildings totaling 476,765 square feet was 83% leased at the time of sale to over 230 tenants. The 30.3 acre property is considered one of Seattle's premier multi-tenant business parks, with no new construction of this product type in the market, as another hasn't been built since the 1990's. BKM said it plans to invest another $7.9 million on the property, upgrading interiors and exteriors, including common areas.

For more news and information visit Blumberg Partners.

Ameron Center Sold for $41M

Beverly Hills, CA-based Kennedy Wilson, a global real estate investment company, has sold the Ameron Center in Pasadena for $40.5 million, or $230 per square foot. The eight story office building was purchased by an entity connected to developer Patrick Chraghchian, president of American General Contractors (AGC), according to a report from The Real Deal. The sale marks a narrow profit for Kennedy Wilson, which originally acquired the building from Wells Fargo Bank in 2014 for $39 million. New York-based Berkadia represented both sides of the transaction, the terms of which were not disclosed.

Built in 1971, the 60,880 square foot office building at 245 South Los Robles was 25% leased at the time of sale, which has led to some speculation that the site could be used for development. The building was renovated in 1994 and subsequently won BOMA's Building of the Year Award. Located at the southwest corner of South Los Robles and Cordova, the property is adjacent to the full-service Sheraton and Hilton Hotels and near Old Town Pasadena and the Lake Avenue Business and Shopping District.

For more news and information visit Blumberg Partners.

Hines & Cousins Ready to Break Ground on Victory Center in Dallas

In a partnership that was first revealed in 2014, Hines and Cousins Properties have teamed to develop a 23-story office tower in Dallas' Victory Park project, and this week said they would be moving forward to break ground on the project. Hines and Cousins previously partnered on the development of One Ninety One Peachtree Tower in Atlanta, a 1.2 million-square-foot, 50-story office tower that was completed in 1990. The new tower, designed by Duda|Paine Architects, is expected to take 23 months to construct.

"Together with our partner, Cousins, we own the land and we have fully designed the building," Rob Witte, a senior managing director for Hines' southwest region, told the Dallas Business Journal."We are out in the marketplace with our brokers working to secure tenants and we have several strong prospects."

"Victory Center will be an excellent addition to the thriving Uptown Dallas office market, and we couldn't be more excited to be a part of the transformation occurring at Victory Park," Larry Gellerstedt, president and chief executive officer of Cousins Properties, said in a statement.

The 466,000-square-foot office and retail tower, known as Victory Center, will be located just north of Hines' One Victory Park, which was completed in 2008 and sold last month to New York-based Clarion Partners in a deal estimated at more than $170 million. Thad Ellis, a senior vice president and market leader for Hines in Dallas, previously said the company would like to land a large tenant — one in the 150,000-square-foot to 200,000-square-foot range — before breaking ground on the tower. Cushman & Wakefield are leasing the building on behalf of Hines and Cousins, with HFF acting as financial advisor on the project.

For more news and information visit Blumberg Partners.

Hana Pays $305M for NJ Office Campus

Hana Asset Management, a subsidiary of Hana Financial Group, one of the largest bank holding companies in South Korea, has purchased a Class A office project in Plainsboro, New Jersey for $305 million, making it the largest single-asset sale in New Jersey to date in 2016. The 762,000 square foot complex was sold by a partnership between Ivy Equities, LCOR Inc. and Intercontinental Real Estate Corp. in a deal brokered by Cushman & Wakefield; C&W also secured financing while Goulston & Storrs advised Hana in the transaction. The acquisition is the latest in Hana's program to acquire core office properties in the metropolitan areas of major U.S. cities, such as New York, Washington DC, Chicago, Houston and Seattle.

"The superior investment-grade tenant and durable in-place cash flow with contractual rent steps at 800 Scudders Mill enabled us to source this noteworthy partnership as the purchasing entity," said Andrew Merin of Cushman & Wakefield's Metropolitan Area Capital Markets Group. "The result – a major offshore investment in New Jersey - is a big win for the state. The transaction came with a number of challenges, including the complexity of multiple partners on both sides of the sale."

"This was indeed a complex transaction involving a foreign entity trying to understand structural considerations for financing in the U.S.," John Alascio, a managing director with C&W, said in a prepared statement. "Future funding components are always complex in terms of logistics and obtaining lender approval. It can often be easier with single-tenant financing, which this is, but in this instance, given the nature of future funding and the earn-out of space to the tenant, it was particularly challenging. Overall, we delivered the best deal in the marketplace, working around the structural concerns of both the buyer and seller."

The Class A property features nine interconnected buildings on 59 acres in the heart of the Princeton sub market, and was originally developed in 1985 for Merrill Lynch. Novo Nordisk, headquartered at the office park, currently occupies 498,000 square feet on a net lease basis with expansion rights. The pharmaceutical company has occupied the campus since 2013, when the property underwent a full redevelopment.

For more news and information visit Blumberg Partners.

Arborcrest Corporate Campus Sold for $143M

Columbia, Maryland-based Corporate Office Properties Trust (COPT) announced that it completed the sale of the Arborcrest Corporate Campus in Plymouth Meeting, Pennsylvania, for $143 million. The four-building office project was sold to San Francisco-based Spear Street Capital in a deal brokered by JLL. Terms of the deal were not disclosed, but Spear Street Capital said it has retained JLL to continue both leasing and property management.

"We are looking for distinctive properties with proven appeal to a broad array of tenants. In addition, we are drawn to situations with substantial value creation opportunities either through new leasing or additional development. Arborcrest has an impressive roster of existing tenants but also has the capacity for significant new development," John Grassi, CEO of Spear Street Capital, told CPE.

Located at 751, 721 and 731 Arbor Way, Arborcrest Corporate Campus is a sprawling property that was once solely occupied by Unisys; in 1997, Corporate Office Properties Trust entered into a sale-leaseback deal with the company. Since then, COPT has invested nearly $100 million into repositioning the property and creating a campus for multiple tenants. The campus consists of four operating properties totaling 654,000 square feet that are 100% leased, plus 785 Jolly Road, an approximate 190,000 square foot redevelopment opportunity, and 27 acres of additional land.

For more news and information visit Blumberg Partners.

Nashville AmeriPlex Complex Sold for $26M

Jackson, Mississippi-based StateStreet Group has purchased the AmeriPlex warehouse and office development in Nashville for $26.3 million. The four-building complex was sold by owner-developer Holladay Properties, which opened the property in 2009 as the company's first LEED industrial park. Terms of the deal were not disclosed; both companies were self-represented in the transaction. The deal gives StateStreet its seventh local property.

"We have enjoyed developing this Class A office/warehouse complex, where we finished the final phase of construction just this year," Allen Arender, Holladay Properties senior vice president of development, said in a statement. "AmeriPlex has attracted many of Nashville's most desirable tenants and it is set to be a highly successful property for a long time. It was a pleasure to work with the people at StateStreet. They truly appreciate the unique value of this property and I am confident it will continue to perform well under their management."

"AmeriPlex is a very desirable in-fill office/warehouse property in one of the best real estate markets in the country. It's in excellent condition and fully leased to several high quality national corporations including Epiphone, Bridgestone and DHL. We've been fortunate to grow our Nashville portfolio significantly and we continue to look for additional quality assets like AmeriPlex," added John Ditto, president of StateStreet Group.

Located at 1508 Elm Hill Pike, AmeriPlex at Elm Hill is situated at the heart of Nashville's industrial central business district and accommodates approximately 260,000 sq. ft. of office warehouse industrial space. The first 90,000 square foot building was developed in 2009; Holladay developed the site and operates from the 1508 building, and said it will remain in that office post sale.

For more news and information visit Blumberg Partners.

Lincoln Property Sells Austin Centre for $130M

Pasadena, Texas-based Lincoln Property Company has sold Austin Centre, a premiere mixed-use project in Austin’s CBD, for $130 million. An affiliate of Sidra Capital, an investment bank headquartered in Jeddah, Saudi Arabia, secured a loan with JPMorgan for the acquisition, according to a Real Estate Capital Magazine article. Terms of the deal were not disclosed; Lincoln Property has owned Austin Centre since April 2013, public records show. Lincoln states earlier in the year that it would be leaving Austin Centre to move to the developer's newest office building — 5th+Colorado, which was designed by designed by HKS Architects of Dallas.

Originally built in 1986, Austin Centre is a 326,335 square foot Class A building at 701 Brazos Street in Austin. The 16-story building provides views of the Capitol and features amenities such as a health club, travel agency, car rental, clothing, sundry shop, hair styling, restaurants, meeting rooms, ATM machine, shoe shine service and valet service. The property was renovated in 2012-2015, and is attached via a 200-foot atrium with the separately owned Omni Austin Hotel Downtown.

For more news and information visit Blumberg Partners.

Commerce Plaza Office Complex Sold for $125M

The Blackstone Group is selling Commerce Plaza, a three building, 515,005 square foot office complex in Oak Brook, Illinois, for $125 million to Chicago-based Zeller Realty. When completed, this will be the biggest suburban office deal of 2016 and the largest since Blackstone and Wells Fargo bought Deerfield's Corporate 500 Centre from GE Capital Real Estate for $154M last year, according to a Bisnow report. Full terms of the deal were not disclosed, but Blackstone was represented by CBRE in the deal. The building was previously owned by Arden Realty Inc.

Located at 2001, 2015 and 2021 Spring Road and originally constructed in 1974, Commerce Plaza's seven-story buildings are currently over 95% leased, with TreeHouse Foods leasing roughly 100,000 square feet of space for its headquarters. Conveniently located in the heart of Oak Brook, Commerce Plaza is 20 minutes west of downtown Chicago and 15 minutes south of O’Hare International Airport. The property features interconnected buildings surrounded by landscaped grounds with a courtyard focal point and an attached covered parking structure and plenty of surface parking. Zeller also has a deal to buy Woodfield Preserve Office Center in Schaumburg for about $74 million, according to Chicago Business; the acquisitions are Zeller's first in the Chicago suburbs since 2007.

For more news and information visit Blumberg Partners.

HKMA Buys Stake in NYC Skyscraper for $1.2B

Real Summit Investment, an investment fund of the Hong Kong Monetary Authority's Exchange Fund (HKMA), has purchased a 49% stake in 1095 Sixth Avenue from Ivanhoe Cambridge and Callahan Capital Partners for $1.15 billion. Ivanhoe Cambridge, the real estate investment arm of Quebec's public pension plan, and Chicago-based fund manager Callahan, originally acquired the tower — also known as the Salesforce Tower New York and 3 Bryant Park — for $2.2 billion from Blackstone Group in January 2015, according to a report from The Real Deal. The new transaction values the office tower at $2.35 billion. Eastdil Secured brokered the transaction; terms of the deal were not disclosed.

HKMA — whose mission is to control the exchange rate of the Hong Kong Dollar — apparently made the move to control the exchange rate of the Hong Kong Dollar whose value is linked to the US Dollar by government policy. "To diversify risks, we decided to allocate, in a prudent and incremental manner, a small portion of the Exchange Fund to alternative asset class comprising global private equity and overseas real estate," the HKMA's deputy chief executive Eddie Yue said in a December speech.

The 1.2 million-square-foot office tower at 1095 Sixth Avenue between 41st and 42nd streets was 97% leased at the time of sale. "The opportunity to acquire a truly iconic property like Three Bryant Park is extremely rare," said Ivanhoe Cambridge's executive vice president Arthur Lloyd. He added that acquiring the office tower "represents a cornerstone of our expanding U.S. office platform."

For more news and information visit Blumberg Partners.

CNL Plaza Sold for $168M

Piedmont-CNL Towers Orlando Owner LLC, a subsidiary of Piedmont Office Realty Trust, has purchased CNL Plaza in downtown Orlando for $167.8 million. The Georgia-based real estate group purchased the two towers from CNL Plaza LLC, a partnership that includes CNL Chairman Jim Seneff Jr. Also referred to as the CNL Center, terms of the sale of CNL Plaza I & II were not disclosed; Foundry Commercial, the Orlando-based brokerage firm, has the building portfolios available on their website.

The deal includes:

CNL Plaza I: A 14-story high-rise office tower that was built in 1999 at 450 S. Orange Ave. It has more than 332,000 square feet.
CNL Plaza II: A 12-story, 271,000-square-foot office tower at 420 S. Orange Ave. It was built in 2006.
CNL Plaza/City Hall parking garage: A seven-story parking garage at 460 Boone Ave . with nearly 612,000 gross square feet.
CNL Plaza II parking garage: A garage with nine floors and nearly 800,000 gross square feet.

Skybridges connect CNL Plaza I, CNL Plaza II and City Hall to the parking garage. The building is situated across from the Downtown Performing Arts Center and adjacent to City Hall, also across from the Grand Bohemian Hotel and free LYMMO stop. With this acquisition, and combined with its previous purchased of the SunTrust Center for $170 million this past November, Piedmont is slated to become one of downtown Orlando's biggest landlords with more than 1 million square feet of office space in the region's core business district.

For more news and information visit Blumberg Partners.

Hines Buys Goodyear Crossing II, Amazon Distribution Center

Hines Global REIT II, Inc. announced that it has entered into a contract to acquire Goodyear Crossing II, a 820,384 square foot industrial property in a Phoenix, AZ submarket, for $56.2 million. The property is being sold by RT Goodyear, LLC, which formed in 2009; it's unclear when RT Goodyear took ownership of the property, which was included in a 2013 Quarterly Report list of assets under Gramercy Property Trust. In July 2009, CB Richard Ellis Realty Trust purchased the warehouse through a joint venture with Duke Realty for $45.26 million. Hines Global II expects to fund the acquisition using proceeds from its public offering, borrowings from its credit facility with Hines Interests Limited Partnership and a secured mortgage from a third party, according to SEC filings. The REIT funded a $1 million earnest money deposit in connection with the purchase agreement and expects the acquisition to close on August 23rd.

Goodyear Crossing II is situated in the Goodyear Crossing Industrial Park and was constructed between 2008 and 2009. Located at 16920 W. Commerce Drive, the Class A industrial warehouse is 100% leased to Amazon, which first announced its intent to build the property in 2008. "As we continue to expand selection for customers across all product categories, we’re excited to be opening a new facility in Goodyear to allow us to serve customers more quickly and efficiently," Mike McKenna, vice president, Amazon fulfillment services, said at the time.

For more news and information visit Blumberg Partners.

TMG, Fortress Sell 3 California Office Buildings for $122M

San Francisco-based TMG Partners and New York-based Fortress Investment Group have sold its remaining properties at Champion Station in San Jose, California to an institutional real estate investor for $122 million,or about $435 per square foot, according to the deed on the sale of the property. Eastdil Secured represented both the sellers and the buyer, which goes by the name TCSP LLC and is an entity related to Michael Milken, according to county records. The three buildings totaling 287,371 square feet were the final properties to be sold off in an eight building portfolio that TMG and Fortress purchased from Cisco Systems in 2013. The transaction's sale price in 2013 was not disclosed, but multiple sources said the cluster of buildings was expected to trade in the neighborhood of $190 per square foot, or roughly $154 million.

"North San Jose, and its amenity-rich environment, continues to attract technology companies both locally and internationally," said David Cropper, TMG Partners Director of Development. "Our strategy at Champion Station had been to complement the mixed-use campus setting with onsite improvements designed to encourage innovation, collaboration and healthy lifestyles for prospective tenants and their employees. Our ability to secure quality tenants and to close this final transaction is proof positive of the demand technology tenants have for health-driven offerings, coupled with the amenities of nearby residential, retail, entertainment and transportation options."

The three buildings at 190, 210 and 230 West Tasman Drive were leased last year to tech companies Silver Spring Networks and ForeScout Technologies are are currently 100% occupied. Cropper told GlobeSt.com: "All the new tenants at our renovated Champion Station have been drawn to the location, our thoughtful renovations and access to the amenities that make the community here so livable. Hence they are all high-quality companies whose employees demand these benefits that inspire collaboration and innovation."

For more news and information visit Blumberg Partners.

Stonelake Buys 3.1M SF Industrial Portfolio

Stonelake Opportunity Partners III LP, a fund managed by Dallas-based private equity firm Stonelake Capital Partners, has purchased 35 industrial buildings in Dallas, Houston and San Antonio, assembling a $200 million Texas industrial portfolio. Stonelake assembled the industrial portfolio through 11 separate deals over the last 18 months without an operating partner, according to a BizNow report. The 3.1 million square foot portfolio will be the final investment for Stonelake's fund; the company will manage the portfolio in-house to boost the buildings' occupancy and rental rates.

Stonelake said it plans to continue acquiring 50,000-150,000 square foot industrial buildings. According to a Dallas Business Journal report, Stonelake plans to hold the properties for the next three to five years. In Dallas-Fort Worth, the portfolio includes nearly 1.3 million square feet in Valwood, the Great Southwest and the Turnpike submarkets. In Houston, Stonelake has more than 1 million square feet of industrial space. In San Antonio. the firm has acquired more than 750,000 square feet of space. The company — founded in 2007 — has over $2 billion of commercial real estate throughout Texas.

For more news and information visit Blumberg Partners.

TriGate Sells Two TX Office Buildings

Dallas-based TriGate Capital has sold two office buildings in Addison, Texas to two separate investors in deals brokered by Colliers International's Dallas office. TriGate originally acquired the properties in 2009 as part of a three building portfolio from GE Capital, which gained ownership of the buildings after an investor that purchased the properties in 2006 defaulted on its loans. Last year, TriGate sold the third building in the portfolio at 14850 Quorum Dr in Addison to Libitzky Property Cos. TriGate nor the purchasing agents or companies did not disclose the sale price for any of the properties.

"TriGate's investment strategy is to implement and complete a full capital improvement program in the buildings and to aggressively lease the vacant space," TriGate had said of the properties in 2009. "TriGate believes that its sponsorship and capital along with the buildings' quality and location will be very attractive to potential tenants in the North Dallas market." The following year, Trigate Capital launched major renovations on all three properties and enlisted Capstar Commercial Real Estate Services to manage the buildings.

The Landmark, a 158,650 square foot office property located in the Quorum micro market in Addison, was sold to a joint venture between Libitzky Property Company and Sunwest Real Estate Group; the companies were self-represented in the transaction, and terms were not disclosed. Located at 14800 Landmark Drive, the eight story building was originally constructed in 1985 inside the Quorum office park, which is convenient to Addison, the Dallas North Tollway and the greater Far North Dallas submarket. The building features an open, two-level atrium lobby comprised of polished granite walls and stainless steel finishes.

Emerald Plaza, a 74,182-square-foot office building at 14900 Landmark Boulevard, was sold to Grander Capital Partners, which represented itself in the transaction. Also built in 1985, the six story property features an efficient and elegant building design and 100% underground parking with direct elevator access. Collier's promotional materials indicate that the property was 85% leased at the time of sale.

For more news and information visit Blumberg Partners.

RedSky Buys Esperanté for Record $126M

Brooklyn-based RedSky Capital, a real estate investment firm under the leadership of Benjamin Bernstein and Benjamin Stokes, has paid $125.75 million for the Esperanté Corporate Center in West Palm Beach, Florida. The office tower was sold by Cornerstone Real Estate Advisers and Crocker Partners, which bought Esperanté for $71 million in 2013 when the property was only 60% leased; the sale at $491 per square foot is a record high for Esperanté. CBRE arranged the deal and found the buyer, 222 Lakeview LLC, which is controlled by RedSky and is an affiliate of a RedSky/JZ LLC.

“Downtown West Palm Beach is a dynamic market, with growing demand for high quality corporate quarters. We were able to add significant value at Esperanté, backfilling space while the market was in recovery,” Angelo Bianco, Crocker Partners partner, said in a statement.

Built in 1989, Esperanté Corporate Center at 222 Lakeview Avenue is one of only three Class A office properties in the market, and was the first in West Palm Beach to achieve the Leadership in Energy and Environmental Design (LEED) EB Gold O&M certification. Cornerstop and Crocker recently completed a $8 million renovation of the property to include WiFi-enabled common areas, a 24/7 lobby attendant, valet parking and a six-story atrium ideal for corporate events. The 20-story building was 98% leased at the time of sale with major tenants including Cole Scott Kissane, Bank of America and the headquarters for Chatham Lodging Trust and Island Hospitality.

For more news and information visit Blumberg Partners.

JLL Picks Up Valencia Industrial Portfolio for $65M

JLL Income Property Trust, an REIT advised by LaSalle Investment Management Inc. and sponsored by Chicago’s commercial real estate brokerage Jones Lang LaSalle Inc., announced that it had acquired a five-building warehouse portfolio in the Greater Los Angeles submarket for approximately $64.5 million. The multi-tenant portfolio was sold by Clarion Partners with representation from JLL; full terms of the deal were not disclosed.

"Acquiring high quality, well-located warehouses in select, primary markets with high barriers to entry, like the Greater Los Angeles market, is a core component of our investment strategy," said Allan Swaringen, CEO and President of JLL Income Property Trust. "This portfolio's prime infill location in close proximity to Interstate 5 should allow us to attract and retain tenants and capture this market's strong rent growth potential. This marks our third industrial investment closed this year, and twenty-third property acquired in the warehouse sector over the last three years, growing our industrial allocation to over $430 million and 25% of our overall portfolio."

The Valencia Industrial Portfolio was full leased at the time of sale to eight different tenants. With an overall market vacancy rate of less than 2% (its lowest level in fifteen years), and new construction pipelines delivering less than 1% of existing stock, the industrial property market fundamentals of Greater Los Angeles are some of the strongest across all property types and markets in the country, according to JLL. The properties in the portfolio include:

28150 West Harrison Parkway: 87k square feet
28145 West Harrison Parkway: 114k square feet
28904-28912 Avenue Paine: 117k square feet
24823 Anza Drive: 31.3k square feet
25045 Avenue Tibbitts: 142.4k square feet

"The Valencia Industrial Portfolio offered quality assets occupied by credit tenants in a market with great connectivity," explained Bo Mills of JLL. "With a limited supply of Class A warehouse product in Southern California and in-place rents below market value, this deal represented a prime opportunity for both the buyer and seller."

For more news and information visit Blumberg Partners.

Hines Sells Wilshire Office Tower for $225M

Douglas Emmett, Inc., a California based REIT, in partnership with Qatar Investment Authority (QIA) announced the acquisition of a Class A office building in Los Angeles for $225 million, or $616 per square foot. The 19-story building was sold by a fund managed by Hines; Hines acquired the property from Deutsche Asset & Wealth Management for the same amount in 2007 on behalf of its U.S. Office Value Added Fund II, L.P. Douglas Emmett will manage the joint venture and expects to retain a 20% to 30% equity interest, with the remainder held by institutional partners. Eastdil Secured handled the transaction.

Designed by Tracy Price Associates, 12100 Wilshire Boulevard was completed in 1985 and is located at the intersection of Wilshire Boulevard and Bundy Drive in the Brentwood submarket of West Los Angeles. The building features ocean views starting from the second floor, outdoor balconies on the top two floors and an above-market parking ratio. Including known move-outs, the property will be 77% leased at the time of closing, with major tenants including Baum Hedlund Aristei & Goldman, Akana (formerly SOA Software Inc.) and Regus.

For more news and information visit Blumberg Partners.

Center Court Partners Pays $80M for Boston Globe HQ

The Boston Globe announced that it is selling its 16.5 acres of offices in Dorchester, which currently serves as their headquarters, to move back to downtown Boston. According to a Boston Magazine report, New York-based Center Court Properties will pay $80 million for the 815,000-square foot facility. An earlier deal for the site with Winstanley Enterprises, a Concord development firm, fell through in February. Boston Globe Media Partners (BGMP) chief executive Mike Sheehan said that the company will move its editorial and business operations to the second and third floors of the Exchange Place complex at 53 State St. on Jan. 1, 2017. Terms and representation were not disclosed, but BGMP announced in 2014 that it had hired Colliers International to negotiate the sale and transition for the press giant.

"We believe, first and foremost, that there is a bright, shining future for high-quality journalism in the region," Sheehan said in an interview. "We're moving people to where they will be closer to the stories and where they can access the stories on foot. That sends an important message."

The 3-story property at 135 William T Morrissey Boulevard currently houses all of the paper's editorial, advertising and administrative departments, along with all of its production facilities and ample parking. The site is located not far from the University of Massachusetts at Boston and the John F. Kennedy Presidential Library and Museum, with visibility to commuters on the Southeast Expressway and a short walk to the Red Line.

A city master plan for Columbia Point has identified the Globe as a prime parcel for mixed-use redevelopment— a plan endorsed by Mayor Marty Walsh. "If it is tasteful and done right, mixed-use on that site would be important with a component of housing and a component of economic development, whether it's an office building or retail park," said Walsh.

For more news and information visit Blumberg Partners.

WRE Completes Sale of MD Office Portfolio for $111.5M

DC-based Washington REIT confirmed that it has completed the previously announced sale of a suburban Maryland office portfolio for aggregate sales proceeds of $111.5 million. Brookfield Property Partners has acquired the portfolio, which includes the Wayne Plaza and 600 Jefferson Plaza as well as 6110 Executive Boulevard and West Gude Drive. Washington REIT was represented by Cushman & Wakefield in the deal; Brookfield's agents were not disclosed, nor were terms of the sale. The company indicated earlier this year that it planned to unload its Maryland office assets as part of a capital allocation strategy; Washington REIT's two remaining buildings in the area are also under contract to be sold, expecting to close in the third quarter.

"We have successfully executed the first tranche of this previously announced strategic milestone," said Paul McDermott, President and Chief Executive Officer of Washington REIT. "The sale is a part of our recent capital allocation out of low-barrier suburban office and into value-add, urban in-fill, multifamily with higher growth potential, lower leasing capital requirements and greater cash-flow stability."

"This sale is part of Washington REIT's ongoing migration out of suburban offices and into more urban assets," added Paul Collins, Cushman & Wakefield Vice Chairman. "The heavily multi-tenanted nature of these assets along with the repositioning opportunity is an ideal fit for Brookfield, which has an excellent track record with these types of assets."

6110 Executive Boulevard in Rockville is a 10 story, 218,144 square foot office building originally constructed in 1970 and awarded an Energy Star label in 2015 for its operating efficiency. West Gude Drive in Shady Grove at 20, 30, 40, and 50 West Gude Drive offers 288,491 square feet of space in close proximity to Shady Grove metro station, I-270 and new InterCounty Connector (ICC). Wayne Plaza in Silver Spring is a 9 story office building with over 99,000 square feet of space. 600 Jefferson Plaza in Rockville was built in 1985 with 113,035 square feet of space over five floors. The portfolio was 90% leased at the time of sale, with major tenants including Comcast, George Washington University, State of Maryland, Montgomery County, Federal Realty Investment Trust, Henry M. Jackson Foundation, KAI Research, Inc., Research Triangle Institute and Lockheed Martin.

For more news and information visit Blumberg Partners.

Rockwood Buys Playa Jefferson for $165M

Manhattan Beach, CA-based Vantage Property Investors has sold Playa Jefferson, a dynamic office campus located in Playa Vista, to Rockwood Capital for $165 million, or $660 per square foot. The news comes just four months after Vantage announced it would be adding a fifth 55,000 square foot, three-story creative office building to the office campus, where Facebook leased 35,000 square feet of space at the beginning of the year. Vantage Property Investors originally acquired the property in August 2011 for $33 million, at which time it was only 18% leased. Kevin Shannon of NGKF, the listing broker for the property, declined to comment on the deal.

Located at 12755-12777 West Jefferson Boulevard, Playa Jefferson features over 200,000 square feet of creative office space, with dramatic and distinctive architecture. The new three-story structure is being designed by Gensler, while AHBE Landscape Architects designed the new outdoor space to create an "outdoor living room." Vantage Property Investors was founded in 2003 by Ned Fox and Stuart Gulland to join forces in office development, investing $20 million to remake the property into a new creative space. "We mixed our building materials," Gulland said. "We want people to feel grounded to the environment. [...] Companies are flattening their corporate structures, sharing information and working in collaborative groups. Walls are less important."

The burgeoning Westside neighborhood is fast becoming the Southern California hub of Silicon Valley, with a growing number of tech companies choosing the relatively undeveloped area as their gateway to the region's entertainment and media offerings. "There's a herd mentality to the tech industry, so when one guy does something, everyone else follows," said Michael Pachter, a tech analyst at Wedbush Securities in Los Angeles.

For more news and information visit Blumberg Partners.

Terranova Sells Miami Beach Office Buildings to Ivy Realty

Beach Tower LLC, an affiliate of Miami Beach-based Terranova Corp., has sold two South Miami Beach office buildings to to Ivy MBT Property, an affiliate of New Jersey-based Ivy Realty, for $48.75 million, or $406 per square foot. The sale price marks nearly double the original purchase price of the properties set in 2004 when Beach Tower acquired them for a combined total of $27.03 million. Terms of the deal were not disclosed, but the Daily Business Journal notes that Ivy Realty also recently paid $68 million for a five-building office portfolio in Miami's Waterford at Blue Lagoon Business Park.

"There are enormously high barriers to entry for office space in Miami Beach with virtually no new inventory in nearly a decade and no new construction on the horizon," said Rusty Warren, Co-CEO of Ivy Realty. "Once we revitalize Miami Beach Towers in the tried and true formula we've employed with other office buildings in South Florida, we expect occupancies to soar. It's a stellar addition to our 1.7 million square-foot office portfolio in South Florida, and the plans for Lincoln and Meridian Roads' transformation will only add to Miami Beach Towers' future value."

"We are delighted with the positive conclusion of this investment," added Terranova Chairman Stephen Bittel. "Our current development of two neighboring three-story retail buildings [801 Lincoln Road and 723 Lincoln Lane] featuring Marshalls and Anthropologie as anchor tenants, will open the future of Meridian Avenue and expand Lincoln Road, Miami's most famous landmark, an eight block expanse of shopping, dining and entertainment."

The two office properties are located at 1674 and 1688 Meridian Road and total nearly 120,000 square feet. Developed in 1959 and 1961, 1674 Meridian stands five stories tall, and 1688 Meridian covers 10 stories on the corner of Michigan Avenue and Meridian, across from Macy's. The occupancy rate wasn't reported, but major tenants of the properties include Regus, Next Model Management, Verizon Wireless, Barclay's Real Estate Group, SCPF and Merchant Data Systems. The buildings offer a prime Miami Beach location less than half a block from shopping, dining, and entertainment on Lincoln Road, across the street from City Hall and the Miami Beach Convention Center.

For more news and information visit Blumberg Partners.

KP Plans for Fenton Logistics Park at Former Chrysler Plant

St. Louis, MO-based KP Development outlined plans for a $222 million business park on the former Chrysler site in Fenton as part of its request for nearly $60 million in public subsidies for the development. KP submitted its development plan to the St. Louis County Tax Increment Financing Commission earlier this month for a public hearing scheduled on July 20th. This month's appeal includes a request for an additional $17 million in state tax increment financing assistance, on top of the $34.6 million in TIF assistance KP Development is seeking from St. Louis County and Fenton.

The Fenton Logistics Park, KP's planned new development, would add around 2 million square feet of space for warehouses, offices and industrial tenants on a 295-acre site that has been unused since Chrysler made its last Dodge Ram pickup seven years ago. Associated Bank of Green Bay, WI, has preliminarily agreed to finance the redevelopment. A letter to Jim Koman with Fenton Land Investors LLC and KP Development from Associated Bank last month says "financing of the project would not be feasible without the incentives."

"They're going to have to make a significant investment to build upon those sites," said Patrick McKeehan, a longtime economic development official in the region and former director of the St. Louis Regional Automotive Partnership. "I'd rather see activity on the site then having it sit and not generating any economic activity."

KP Development completed its purchase of the property directly off I-44 and Bowles in Fenton in 2014; the price was not disclosed, but St. Louis County's appraised value for the site at the time was $17.2 million. Scott Haley, KP's senior vice president, said the site is suitable for light manufacturing, distribution centers and even office space. "We've had a lot of strong conversations with many types of users for that facility," he said.

For more news and information visit Blumberg Partners.

Link at Douglas Project in Miami Moves Forward

The Miami-Dade County Transit and Mobility Services Committee passed a recommendation on Wednesday to award a contract for the development of a new $464 million mixed-use project in Miami to a joint venture between the Adler Group and 13th Floor Investment. The proposed "Link at Douglas" project at the Douglas Road Metrorail Station would include 970 residential units, 150- key hotel, 70,000 square feet of retail and a public plaza, and won the recommendation of the Miami-Dade County selection committee after competitive bids last year. The project now moves on to the full county commission to consider in September.

Designed by Stantec, the four phase project at the corner of Douglas Road & US-1 sits at the center of a growing urban neighborhood with accessibility from the Metrorail, Miami-Dade bus lines, and the Coral Gables Trolley. Phase 1 development would include a hotel at the corner of Douglas & US-1, spanning across the Miami-Dade Metrorail track, a pedestrian plaza and a 25-level residential tower with 288 units, and retail space. Phase 2 would see the addition of a 302-unit residential tower; Phase 3 calls for more retail and parking, and Phase 4 finishes with mid-rise residential units and retail space on the 7 acre site. The initial minimum rent would be $1.5 million to cover the first four years, according to a South Florida Business Journal article. On the fifth year of the lease, the developer would pay $375,000 per year and an annual participation of 3 percent of gross revenue. The construction would support 1,400 jobs and the project, once completed, would employ 223 people.

For more news and information visit Blumberg Partners.

100 Montgomery Sold for $285M

Blackstone Group’s wholly owned subsidiary Equity Office has sold 100 Montgomery Street, a 429,000-square-foot office tower in San Francisco's Financial District, for $285 million. The property was acquired by Vanbarton Group LLC and a U. S. pension fund partner, according to a San Francisco Business Times article. Terms of the deal were not disclosed, though Vanbarton did announce that Cushman & Wakefield will handle exclusive leasing for the property. Equity acquired the property four years ago for $165 million, a deal that more than doubled the $67.5 million Hines and Sterling American Properties paid for the office tower in 2006.

"Situated in an unparalleled location with immediate access to public transportation and premier amenities, the building provides the features that tenants are seeking today," said William Bond, a managing director with Vanbarton Group, in a press release.

100 Montgomery was originally designed by Wilbur D. Peugh and developed by Equitable Life Insurance as their headquarters in 1955, and is considered a historically significant structure in downtown San Francisco. In 2006, Hines and Sterling began a 36-month, $30 million redevelopment plan for the building, with redesign services by Robert A.M. Stern Architects. The 25 story office building with ground floor retail appeals to both traditional office users as well as technology and media companies, with major tenants including City National Bank, the U.S. General Services Administration, Segal Co., Enovity, Trucker Huss and Wells Fargo Bank.

For more news and information visit Blumberg Partners.

KBS Pays $170M for SF Office Tower

KBS Strategic Opportunity REIT, an affiliate of KBS Realty Advisors, announced the purchase of a 23-story Class A office tower in San Francisco for $169.5 million. The property was sold by Pacific EIH Sacramento, LLC, an affiliate of investment manager Pacific Eagle, which first announced the agreement to sell in May when KBS deposited $1 million for the acquisition. Terms of the deal and representation were not disclosed, but CBRE is the listed broker for the property that sits adjacent to Embarcadero Center.

"We believe that 353 Sacramento's location in San Francisco's vibrant Financial District will appeal to both traditional and creative tenants," said Michael Potter, vice president at KBS and asset manager for the property. "We are pleased to acquire this property in a highly desirable business location and a center of global technology innovation."

Built in 1982, 353 Sacramento Street offers 307,000 square feet in a 23-story building in San Francisco's thriving Financial District, with onsite amenities including a conference center, a full-service banking branch, a deli and views of the bay and city. MegaPath Corporation, Pacific Bell Telephone Company, and TW Telecom are a few of the Internet providers that service this property. At the time of sale, the tower was 85% leased with major tenants including Berry, Appleman & Leiden, a corporate law firm, Landmark Worldwide, a company offering personal development and training programs, and law firm Carlson, Calladine & Peterson LLP.

For more news and information visit Blumberg Partners.

American Realty Buys Jersey City Office Building for $101M

Glendale, California-based American Realty Advisors has purchased the 15-story office tower at 30 Montgomery Street in Jersey City, New Jersey for $101 million. The sale price is a marked gain for the sellers, a joint venture between Rubenstein Partners and Onyx Equities, which purchased the 315,385 square-foot building for $57 million in 2013. Rubenstein and Onyx completed a $20 million renovation project last year that includes a new lobby and replacing every window with architectural services from Spector Group. Terms of the deal were not disclosed; Cushman & Wakefield represented the sellers in the transaction.

"When we invested in 30 Montgomery three years ago, we could see the momentum building in the commercial and residential real estate market in Jersey City, and we believed that increased demand for quality office product would continue," said Stephen Card, regional director of Mid-Atlantic for Rubenstein Partners. "Together with Onyx, we developed a capital improvement plan to remake this as a trophy boutique office building to match its trophy location."

"30 Montgomery's location is particularly attractive based on the rapidly transforming Hudson Waterfront submarket, which is benefiting from strong population growth, sustained residential development, expanding cultural/entertainment/retail amenities and a diversification of the local employment base," Kirk Helgeson, American Realty Advisor's chief investment officer, said in a prepared statement.

The 16-story boutique office tower located in the Hudson Waterfront submarket of Jersey City was originally constructed in 1973, and was among the first office towers ever to be built along the waterfront. 30 Montgomery is convenient to the Exchange Place PATH Station and overlooking Manhattan, was 72% leased to 46 tenants at the time of sale, including the Jersey City Department of Housing, Economic Development & Commerce (HEDC).

For more news and information visit Blumberg Partners.

City Office Buys $79M Florida Office Properties

City Office REIT, a Vancouver, Canada-based real estate investment trust, announced that it has purchased two properties in central Florida, which they expect to generate an initial full-year cash net operating income yield of approximately 8.3%. Terms of the deals and representation were not disclosed by City Office REIT. The first property, Carillon Point in Tampa, was purchased for $26.3 million; the Research Park Collection in Orlando was acquired for $49.8 million.

"These acquisitions are well positioned in quality locations within our target markets, have strong in-place tenancy and favorable acquisition metrics," said James Farrar, Chief Executive Officer of City Office REIT, in a press release. "We believe that our disciplined strategy of expanding our footprint in leading submarkets positions City Office to deliver long-term cash flow growth."

Built in 2007, Carillon Point at 970 Lake Carillon Drive is a five-story building complex with 124,187 rentable square feet and a lakefront location within the prestigious Carillon Office Park. Carillon was 100% leased at the time of sale. The second acquisition, The Research Park Collection, was built in 1989 and includes five Class A office buildings on a 10 acre land parcel within the Central Florida Research Park, the fourth largest research park in America. The Research Park Collection's five buildings total 272,192 square feet of net rentable space, and was 93% leased at the time of sale.

For more news and information visit Blumberg Partners.

$87M Sale of SunTrust Center in Ft. Lauderdale

Miami-based investment company Steelbridge Capital has purchased the SunTrust Center, a 270,000 square foot office complex in downtown Fort Lauderdale, for $86.5 million. SunTrust Banks Inc. sold the Class A property, arranging to remain in the block-sized complex as long-term retail and office tenants. According to a report from The Real Deal, Steelbridge financed the deal with a $75.4 million loan from the Blackstone Group. Terms of the sale were not disclosed, with Lincoln Harris representing the seller and CBRE representing Steelbridge, in addition to sourcing the financing.

"Iconic is a term that is often thrown around, however, in this case, we could not be more pleased to have this truly iconic asset under our ownership," said Mike Manno, managing principal at Steelbridge Capital. "We are pleased to partner with SunTrust Bank, our lead tenant and an established financial brand within the Southeast, to elevate this asset to compete at the highest level within the downtown submarket."

501 and 515 E. Las Olas Blvd. includes a 17-story office tower and three-story annex, and is the largest office building to trade in Broward County's downtown submarket so far this year. The complex, which covers a full city block in the CBD, will undergo improvements under new ownership, with Steelbridge announcing that it intends to spend millions to renovate the complex to give it a new façade, first-floor retail space and a remodeled interior. The property, which SunTrust had owned since 1999, was 77% leased at the time of sale.

For more news and information visit Blumberg Partners.

Lincoln Picks Up LA Office Complex for $135M

LPC Realty Advisors I, LP, and affiliate of Dallas-based Lincoln Property Company, has purchased an office campus in West Los Angeles on behalf of a public pension fund client for a reported $135.3 million, or about $240 a square foot. The complex was sold by a joint venture between Mullen Co. of Irvine and Rockwood Capital of San Francisco, which bought the property for $136 million in 2007. Terms of the deal and representative agent information was not disclosed.

"Large office campuses are increasingly hard to come by in West LA's desirable market, so acquiring Wateridge was a unique opportunity for Lincoln, and certainly in line with our strategy,” said David Binswanger, Executive Vice President of Lincoln Property Company. "We see its potential to help meet demand for quality office space in this region.”

Lincoln's finance director, Stephen Lindgren, said he expects to draw tenants ranging from tech and media firms to law offices and accountants for the remaining space. "As Playa Vista and Corporate Pointe continue to tighten, we'll be able to offer a lower-cost alternative to be in those same markets,” he said.

Known as Wateridge, the 6-building Class A office campus in Ladera Heights sits on 21 acres at the corner of La Cienega Boulevard and Slauson Avenue with easy access to the 405 and 10 freeways. The property was originally constructed in phases beginning in 1989, with upgrades in 2010 to include additional parking, renovated common areas and improved landscaping; the property has since become a campus-style, multi-tenant facility with a diverse mix of office and retail tenants. Wateridge was approximately 70% leased at the time of sale, with major tenants including Evolve Media, Kaiser Permanente, and the Los Angeles County Department of Children and Family Services (DCFS).

For more news and information visit Blumberg Partners.

Related Cos. $6.5B City Center Project Secures Approval

Santa Clara, California's City Council unanimously approved Related Cos. plans for a 9-million-square-foot CityPlace mixed-use development on the site of a current golf course on top of a city landfill. Described as the largest private development project in Silicon Valley's history, Related has been seeking approval for almost four years to build a $6.5 billion mixed-use center and office campuses just north of Levi's Stadium at 5155 Stars & Stripes Drive.

"This project, looking at the real estate side of it, and the fact that we we own it, it's whipped cream with a cherry on top," said Mayor Lisa Gillmor prior to the vote. "Not only will we get the development that services our community, but also we'll reap the financial benefits of having a cash flow into our general fund for generations to come." Even though Santa Clara approved the development after reviewing lengthy impact, environmental and zoning reports, regulatory agencies and utilities have yet to approve the project over concerns about allowing water hookups — perceived as the biggest threat to approval — and housing over a landfill site.

"We feel very excited about the project. It's the biggest project in the history of Santa Clara," Santa Clara's acting City Manager Rajeev Batra said. "We do not have a destination. We do not have an entertainment center, restaurants, or retail. So people in Santa Clara have to go elsewhere like San Jose or other cities like Campbell." The city has projected that it will receive up to $16.9 million in annual tax benefits, along with $9 million to $14 million in yearly rent revenues, once the project is up and running.

The 239-acre mixed-use development will be separated into five parcels, each of which will be developed in phases. The largest parcel will house the City Center and the majority of the residential, entertainment, retail, and restaurant space. It's anticipated that construction of the first phase will commence in 2017 and be completed by 2020. Future phases consisting of office space, with a mix of retail, as well as food and beverage offerings, will be developed over a period of 10-15 years and subject to market demand. Construction costs are tagged at $5 billion, with more than 80% of the work to be handled by union labor.

For more news and information visit Blumberg Partners.

Farbman Group Buys Chase Tower

An affiliate of Southfield, Michigan-based NAI Farbman Group, an investment group that operates commercial properties throughout the Midwest, has purchased the Chase Tower in downtown Milwaukee for $30.5 million. The office tower was sold by Breof Bank Midwest LLC, an affiliate of Toronto-based Brookfield Asset Management Inc.; "Breof" stands for Brookfield Real Estate Opportunity Fund. According to a Milwaukee Business Journal report, Farbman has been eying the property for several years now, which Brookfield placed on the market in October 2014.

The property was officially purchased by 111 W. Wisconsin Property Owner LLC, which is registered to NAI Farbman Group. Cushman & Wakefield's Chicago office marketed the building for Brookfield Asset Management, which bought the office tower in 2006 at the peak of the commercial real estate market for $45.8 million. The sale includes the connected parking structure at 543 N. Water St. Terms of the deal were not disclosed.

The new owners have plans to upgrade Chase Tower's first and second floor commons areas and adding amenities. "We're going to take its natural bones and make it better," said Andrew Farbman, chief executive officer of NAI Farbman Group. "There is a lot to draw from and the downtown location is fantastic. There is some access to public transportation now, and Milwaukee is growing in that area, plus the residential footprint in the Third and Fifth wards is something we're really fired up about."

Chase Tower, one of downtown Milwaukee's largest office buildings, was designed by Harrison & Abramovitz and completed in 1961. The 22-story office building was originally known as the Marine Plaza (which was the largest office building in Milwaukee until 1973 U.S. Bank Center build), and later as Bank One Plaza until their merger with Chase. The building was 86% leased at the time of sale, with major tenants including JPMorgan Chase, Infinity Healthcare, WUWM Public Radio and the law firm of O'Neil, Cannon, Hollman, DeJong & Laing.

For more news and information visit Blumberg Partners.