Thursday, March 31, 2016

Hub 25 Industrial Project Planned for Denver

Denver-based Westfield Company, Inc. has unveiled its plans for Hub 25 this week, a new project that will transform the vacant site of the former Mapleton High School in Central Denver into a 421,500 square foot Class A industrial space. The new development at 601 East 64th Avenue will include four buildings that can accommodate users from 20,000 square feet up to the full capacity of 421,500 square feet, with build-to-suit opportunities available. Westfield will be speculatively building the project, the cost of which has not yet been disclosed.

"Hub 25 is one of the most highly sought-after land sites that Denver has ever seen," said Tyler Carner, senior vice president, CBRE Denver Industrial & Logistics Services. Together with CBRE's Jeremy Ballenger, the pair represented the Mapleton School District in the sale of the property, and Westfield Company has hired them to lease the project. "The combination of unparalleled I-25 signage opportunities, Class A development, small-bay space and an in-fill location in an unincorporated, Enterprise Zone sets Hub 25 apart from any industrial project developed in Denver in the last decade."

Westfield purchased the old school property from Mapleton Public Schools in December for $7.08 million, after the site sat empty for decades. "Growing up here in Denver, I've driven by the property a thousand times. In the last 20 years, it's just sat there vacant," Westfield partner Randy Schwartz told the Denver Post. "In the development world, you think, 'Oh, I've got to call on that property and sooner and later they'll come around.' That's what happened with this one." Construction at Hub 25 could begin within 30 to 45 days, Schwartz said. The final building should be ready in early 2017.

For more news and information visit Blumberg Partners.

Wednesday, March 30, 2016

Pacific Corporate Park Sold for $145.5M

Gramercy Property Trust, the New York-based global investor and asset manager, announced this week that it has sold the Pacific Corporate Park complex just a few miles north of Dulles International Airport for $145.5 million, or $209 per square foot. Terry Reiley, Robert Faktorow, Thomas Cleaver and Daniel Grimes of CBRE handled negotiations on behalf of Gramercy Property Trust, according to a CoStar report. While terms of the deal were not disclosed, Troutman Sanders LLP spokesperson told Law360 that it had represented Gramercy Property Trust in the deal.

The sale is part of the Gramercy Property Trust's previously announced plan to dispose of select single and multi-tenant office assets. Since the sale plan was announced, Gramercy has exited $646.3 million of office assets at a weighted-average cap rate of 5.7%, with another $70 million of properties are under contract and $250 million that are currently on the market the majority of which are expected to close in the first half of 2016.

Pacific Corporate Park was put on the market last December by Chambers Street Properties, close to the same time that it and Gramercy Property Trust were finalizing their merger. The New York City-based REIT acquired the 696,377-square foot property at 22110, 22260, 22265 and 22270 Pacific Boulevard in Sterling, Virginia from AOL Inc. for $144.5 million in 2010. The four-building office campus is located right next to AOL's Dulles headquarters outside of Washington, DC. Three buildings in the campus serves as the headquarters for Raytheon's Intelligence and Information Systems, which has occupied the property since 2009, and is scheduled to remain in the park until 2026; the fourth building is partially rented to Strategic Federal Credit Union.

For more news and information visit Blumberg Partners.

Tuesday, March 29, 2016

Adler Kawa Buys Miami Industrial Portfolio

An investment fund run by Adler Kawa, an Aventura, Florida-based real estate investment company, has purchased a portfolio of six industrial buildings in Broward and Palm Beach counties from Prologis Sslv Trs Sub 3 LLC, a subsidiary of Prologis, for a combined $38.3 million. Adler Kawa's AKF3 SF Light Industrial acquired the 348,988-square foot portfolio with assistance from KeyBank, which provided a $26 million mortgage for all six properties.

This was the latest deal in a $53 million commercial real estate fund that Adler Kawa recently raised; in 2015 under the same fund, it paid $32.25 million for the Yamato Office Center in Boca Raton. HFF Director Marty Busekrus and Associate Director Jorge Portela represented Prologis in the transaction; full terms of the deal were not disclosed.

Properties in the portfolio include:

5201 NW 33rd Avenue at Prospect Park, a 63,745-square-foot collection of buildings built in 1982;

3301 to 3375 NW 55th Street, another 43,171 square feet built in 1983;

And the following buildings in Boca Raton's Park at Broken Sound and in Delray Beach:

  • 1395 NW 17th Avenue, a 50,782-square-foot building built on a 4.7-acre site in 1987
  • 1001 NW Broken Sound Parkway, a 41,117-square-foot building built on 5.1 acres in 1980
  • 1155 NW Broken Sound Parkway, a 61,491-square-foot building built on 5.2 acres in 1981
  • 1225 NW Broken Sound Parkway, a 48,416-square-foot building built on 6.6 acres in 1983

For more news and information visit Blumberg Partners.

Monday, March 28, 2016

San Diego's Procopio Tower Sold for $122M

Procopio TowerLaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle, has purchased the Procopio Tower in San Diego's B Street Corridor for $122 million from a venture of Hines US Core Office Fund and Sumitomo Life. Formerly known as Golden Eagle Plaza or the Union Bank Building, Hines acquired the 449,184-square foot, 22-story Class A office building and attached six-story garage in 2005 on behalf of its U.S. Office Core Fund for $116.3 million. Full terms and representation for this month's deal have not yet been disclosed; it was marketed for sale by October of 2015.

Hines Vice President Paul Twardowski has said of the Class A office building in the heart of downtown San Diego, “The business story this building tells is a compelling one for tenants, owners and investors alike: older buildings can be rehabilitated to Class A quality by applying best engineering practices and through modest investment in more sustainable building infrastructure.”

Designed by Langdon and Wilson, 525 B Street was originally constructed in 1969 and renovated in 1998 (designed and developed by Mark Krukiel in collaboration with RTKL Los Angeles) and again in 2007. The property underwent numerous sustainability measures and capital improvements spearheaded by Hines, including a new cooling tower, new efficient transformers, and upgraded building control systems, earning the property a Gold LEED rating. While vacancy rates were not released, the building only show three office spaces currently available, with major tenants include Procopio, Elsevier Inc., and Barrister Executive Suites.

For more news and information visit Blumberg Partners.

Friday, March 25, 2016

Lincoln Partnership Re-Acquires 915 Wilshire

Lincoln Property Company has partnered with affiliates of Rockwood Capital, LLC for the purchase of a 22-story office tower in downtown Los Angeles that it previously sold to Brickman Associates in 2007. Lincoln originally purchased the property in 2003 for $49.2 million, or $128 a square foot, from TIAA-CREF, selling it to Brickman for $117 million, or just under $300 a square foot. The price Lincoln Property paid this time was not released, but sources tell GlobeSt the building probably sold for $130 million. Kevin Shannon, currently with Newmark Grubb Knight Frank, brokered the deal; terms were not disclosed.

"Lincoln has a lot of history with this property, and we're thrilled to bring it back into our portfolio once again," said David Binswanger, Executive Vice President of Lincoln Property Company. "We really believe in downtown LA, and with this particular building, we were attracted to its potential for renovation. We look forward to executing our vision to create a more modern, inviting space for current and future tenants of 915 Wilshire."

Originally built in 1979, 915 Wilshire is a 390,312 square foot steel frame Class A office building complete with a storage penthouse, emergency equipped helipad, exterior terraces at the 7th and 8th floor northern exposure, and a parking garage. The Skidmore, Owings and Merrill design was constructed by Turner Construction and developed by Cabot, Cabot & Forbes. After selling the property to Brickman in 2007, Lincoln has stayed on as a property manager and leasing agent. The Lincoln partnership said in a press release that it has plans to renovate the property for the first time in over a decade, to include upgrades to the lobby and valet area, redesigning the outdoor patio, and replacing the elevators. The building was 88% leased at the time of sale, and is across the street from the Wilshire Grand Center, a $1 billion mixed-use project being built by Hanjin Group that's expected to be completed in July 2017.

"We are very excited to be partnering with Lincoln on the renovation of 915 Wilshire," said Tyson Skillings, Managing Partner at Rockwood Capital, LLC. "This property, already in high demand by tenants, is located in the heart of the most vibrant area for redevelopment in downtown LA. It will become even more attractive with the nearby addition of a new, world-class hotel tower, restaurants, nightlife and retail. This is a prime example of Rockwood's investment approach."

For more news and information visit Blumberg Partners.

Thursday, March 24, 2016

NYC REIT Buys 1140 Avenue of the Americas

1140 Avenue of the AmericasAmerican Realty Capital's New York City REIT, Inc. (NYCR), a public non-traded real estate investment trust that debuted on the NYSE in April 2014, has entered into an agreement to acquire 1140 Avenue of the Americas in Midtown Manhattan for $180 million. BPGL Holdings LLC, an affiliate of Blackstone Real Estate Partners VI L.P., is selling the 22-story Class A office property in a transaction expected to close during the second quarter. Full terms of the deal and representation were not disclosed.

"We are pleased to announce the acquisition of 1140 Avenue of the Americas, which enjoys a prime central Midtown Manhattan location with diverse and high quality tenants, as well as a recent $85 million capital investment from Blackstone," said Michael Happel, Chief Executive Officer of NYCR, in a press release. "The property features boutique floor plates, recently upgraded elevators and common areas, with a number of leases below market. This acquisition is consistent with our strategy to acquire institutional quality real estate in prime Manhattan locations."

Built in 1962, 1140 Avenue of the Americas is located between West 44th and West 45th streets and features three penthouse floors with 5,000 square feet of usable terraces enhanced by Central Park and Bryant Park views. Blackstone originally acquired the tower in 2011 when it bought a non-performing note on the asset for just $98.25 million, at which time the property was nearly 75% vacant. Blackstone repositioned the office tower after purchasing it, adding a new glass façade, new lobby, new elevators, and redesigned mechanicals and infrastructure. The tower is currently 91% leased, with major tenants including City National Bank, Upsilon Ventures, and Aristeia Capital.

For more news and information visit Blumberg Partners.

Wednesday, March 23, 2016

CBRE Picks Up Pasadena Towers for $257M

A fund advised by CBRE Global Investors has purchased the Pasadena Towers office complex in the South Lake Retail District of Pasadena, California for roughly $257 million. Terms of the deal were not disclosed, but a CBRE press release indicated that Michael Ziestman and Patrick Inglis of JLL represented the seller, Beacon Capital Partners, in the transaction. Leasing brokers Shaun Stiles, Katie Cowan and Joshua Wrobel of JLL also advised Beacon in the sale. CBRE purchased the property with capital in its fund and debt.

“The Los Angeles economy is well-positioned to benefit from the continued expansion of the technology and media sector, and the Pasadena submarket has proven itself to recover faster than the MSA and the nation as a whole," said Kim Hourihan, Portfolio Manager, CBRE Global Investors. “As the home of institutions like CalTech and NASA's Jet Propulsion Laboratory, Pasadena offers a highly educated workforce. With the submarket emerging as 'LA's Other Tech Hub,' Pasadena Towers will be able to attract both traditional and creative tenants."

Located at 800 E. Colorado Blvd. and 55 S. Lake Ave., Pasadena Towers includes two nine-story towers with 477,051 square feet of space, 5% of which are retail, with a 1,238-stall parking structure. Beacon acquired the complex in 2012 as part of a $1.6 billion portfolio, at which time Pasadena Tower was 55% leased, then invested in an $18 million capital improvement plan.

The property was 93% leased upon CBRE's purchase, with major tenants including Bank of America, the financial firm First Quadrant and Hybrid Kinetic Motors Corporation. With well-capitalized new ownership from CBRE Global Investors, Pasadena Towers will soon feature exclusive 5-Star Worldwide upgrades that cultivate creativity, drive productivity and foster workplace wellness.

For more news and information visit Blumberg Partners.

Tuesday, March 22, 2016

New 1.6M SF Spec Industrial Park for Arlington

Ridge Development, the industrial development arm of Transwestern Development Co., announced this week that it will break ground this quarter on a new speculative industrial park in Arlington, Texas. The 1,605,620 square-foot, 119-acre project, dubbed Park 20/360, is owned by a venture between Invesco and Ridge Development. The former High Point Church property was sold by the Evangelical Christian Credit Union in Brea, California, which foreclosed in July 2014. Phase I of construction, expected to deliver in first-quarter 2017, calls for four buildings totaling 1,249,560 square feet; Phase II will follow with another four buildings, with full delivery expected in second-quarter 2018.

"The confluence of a thriving Texas economy with continuing solid fundamentals, record-setting occupancy within the Great Southwest Industrial District, a diverse commercial make-up in Dallas-Fort Worth and an outstanding location warrant the development of such a large project on a speculative basis," said Kent Newsom, executive vice president at Ridge Development, in a prepared statement. "Park 20/360 is divided into three different types of space to accommodate multiple industrial user types including bulk distribution, warehouse and flex."

The project is one of the largest new warehouse complexes under construction along Interstate 20, which had more than 6 million square feet of projects being built in corridor at the end of 2015. The park benefits from being inside a Triple Freeport Tax Exemption zone and is only 18 miles from DFW International Airport. Alliance Architects Inc. serve as architects for the park, with civil engineering provided by Pacheco Koch Consulting Engineers Inc. Transwestern's Vice President Joe Rudd and Principal John Brewer are providing leasing services.

For more news and information visit Blumberg Partners.

Monday, March 21, 2016

Vulcan Buys South Lake Union Site for $35M

Seattle-based Vulcan Real Estate has purchased the site at 791 Ninth Avenue North in Seattle's South Lake Union market with plans for a seven-story office project. Vulcan Director of Real Estate Investment Strategy Lori Mason Curran said in an email that the company bought the property with the long term-plan of eventually expanding the Allen Institute, a brain and cellular research center that Vulcan Chairman and CEO Paul Allen launched. Vulcan paid $35 million for the property that sits catty-corner from the new $200 million, 270,000 square foot life sciences building, opened just last year, that serves as the Allen Institute headquarters. An entity related to Walton Street Capital was listed as the seller of 791 Ninth Avenue, which paid $10.5 million for the two-thirds of an acre last February.

Over the past decade, Vulcan Real Estate has played a key role in developing the South Lake Union neighborhood into a hub for creative class employees including renowned life sciences organizations like Seattle BioMed, PATH, the University of Washington School of Medicine and the Institute for Systems Biology. "South Lake Union has become the center of life sciences research for the state," said Ada Healey, vice president of real estate for Vulcan Inc.

"It has been a privilege to watch the Institute grow, and to witness the huge impact the Allen Institute for Brain Science's research and its public resources have had on the broader neuroscience community," said David Anderson, Ph.D., professor of biology and Howard Hughes Medical Institute Investigator at the California Institute of Technology, and Scientific Advisory Board member at the Allen Institute for Brain Science. "I look forward to the next phase of the Institute's growth and productivity [...], and with a deep appreciation for Mr. Allen's generous and farsighted investment in science."

A partnership between Talon Private Capital and Chicago-based Walton Street Capital worked with Lake Union Partners to develop an office project on the site after purchasing it last February. The plans for the development called for roughly 163,000 square feet of office space with 16,000 square feet of ground floor retail, as well as underground parking, with an estimated project cost of $70 million. Lori Mason Curran would not say what, if any, changes Vulcan might make to that project.

For more news and information visit Blumberg Partners.

Friday, March 18, 2016

Google Buys 8 Sunnyvale Office Buildings from NetApp for $250M

NetApp, Inc., formerly Network Appliance, Inc., has agreed to sell eight buildings in the Sunnyvale's Moffett Park business district to Google for $250 million, according to documents filed with the SEC. The court filings also reveal sale-leaseback plans as NetApp will continue to lease portions of the property. NetApp announced this month that it would be cutting 376 Sunnyvale jobs by the end of April. The sale of the eight properties is slated to be completed by April 22.

"NetApp has committed to a restructuring and reduction in workforce to streamline its core business and reduce operating costs," NetApp said in a recent filing with the Securities and Exchange Commission.

The eight buildings totaling 569,000 square feet include:
— 1299 Orleans Drive, 46,000 square feet
— 1277 Orleans Drive, 42,624 square feet
— 1260 Crossman Avenue, 95,464 square feet
— 1240 Crossman Avenue, 125,648 square feet
— 549 Baltic Way, 110,160 square feet
— 641 Baltic Way, 88,320 square feet
— 611 Baltic Way, 43,472 square feet
— 633 Caribbean Drive, 43,372 square feet

Potentially, 3,000 Google employees could work in the eight Sunnvale buildings, which is one of the high-priority expansion zones for Google. "This is a lot of space they are taking in Sunnyvale, and Google's goal appears to be to acquire as much as they can in this area," said David Vanoncini, managing partner with the San Jose office of commercial realty firm Kidder Mathews.

"People like to talk about the impact of startups, but really it's the big companies in Silicon Valley that are growing and creating the most jobs," added Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy. "You will always have some churn among the second- and third-tier tech companies, but the big companies are the ones that dominate this area. [...] The big players are the ones that will really determine how the region grows and prospers. And because of companies like Google, Apple, Facebook, LinkedIn, eBay, Intel and Oracle, the recovery and expansion in Silicon Valley is in good hands."

For more news and information visit Blumberg Partners.

Thursday, March 17, 2016

Calare Sells Leominster Industrial Building for $31.5M

Hudson, MA-based Calare Properties has sold 25 Tucker Drive in Leominster, MA to an entity listed as Key Mass LLC, according to Worcester County deed records. Calare originally purchased the single-story contiguous manufacturing, distribution and office space in December 2012 for $11.65 million; Calare's investment was a fraction of its replacement cost in a corporate disposition after sitting vacant for several years.

Located in the center of New England, the property has 28' ceiling heights, 43 dock doors and CSX rail service to the building providing direct loading into the distribution area. Bill Manley, Calare's Managing Partner and CIO, says, "It is a world class facility located in a very business friendly municipality, less than one mile from the interstate."

Built in 1982 with an addition in 1986, Calare invested $4 million in property upgrades after purchasing it in 2012, now selling the asset for nearly three times what it paid for the industrial building. Key Mass LLC bought the industrial building for $31.5 million this month, or roughly $53.57 per square foot. Key Mass LLC is managed by James Wiersma, a broker with Coldwell Banker Woodland-Schmidt in Holland, Michigan, according to Secretary of State records. Stan Johnson Co. represented Calare in the deal.

For more news and information visit Blumberg Partners.

Wednesday, March 16, 2016

DC's Watergate Office Building Up for Sale

A nearly-fully occupied Watergate Office Building is up for sale as Eastdil Secured has been retained to market the globally-recognized property. Washington, DC-based investment company Penzance is selling the property at 2600 Virginia Ave. NW after acquiring it for $76 million in 2011 from a group led by BentleyForbes, a private Los Angeles-based investor in high-end office buildings; prior to that, it traded from TrizecHahn Corp. to BentleyForbes' group in 2005 for $84.5 million. The offering comes as $125 million in renovations to the Watergate Hotel wrapped up last summer when the hotel was reopened. The building is not listed for a specific price.

The 11-story, 198,000-square-foot office building was still new in 1972 when thieves broke into the sixth-floor offices of the Democratic National Committee, alerting a security guard and beginning a chain of events that drove Nixon from the presidency and gave the building's name to the historic scandal. When BentleyForbes purchased the office building in 2005, it issued a press release saying, "the underlying market fundamentals, stable tenant base and quality of the asset made this investment a strong addition" to the company's portfolio.

In mid-2012, Penzance began a multimillion-dollar upgrade to the Watergate Office Building's lobby, common areas, and Virginia Avenue entrance. The modernization was complete in December 2012, and the building began leasing space again in January 2013. Penzance decided to offer the building for sale after boosting occupancy from 45% to more than 90%, said Penzance Senior Vice President Matt Pacinelli.

For more news and information visit Blumberg Partners.

Tuesday, March 15, 2016

JV Acquires Austin's University Park

University Park AustinLionstone–Hermes Real Estate Venture, a joint venture of Houston-based Lionstone Investments and London-based Hermes Investment Management, announced that it has purchased University Park in Austin, Texas. the eight-story Class A office building was sold by San Francisco-based Spear Street Capital for an undisclosed sum; the property was developed several years ago by Andy Sarwal, who planned a $750 million mixed-use project on the site, which later stalled. The most recent valuation by the Travis Central Appraisal District priced the property at $40.8 million. The sale of the property was brokered by HFF.

"Changing user preferences and the shifting U.S. economy are driving forces behind the types of property that today's companies are seeking for the long-term growth of their businesses," said Lionstone Investments' CEO Jane Page in a statement. "The current generation is looking for office space that fosters creativity, collaboration, and connectivity. Real estate that supports inclusivity and community, while also being multimodal and environmentally conscious, is highly sought after. University Park is a prime example of the type of property that aligns with these trends."

Chris Taylor, Head of Private Markets at Hermes Investment Management, adds, "The acquisition of University Park is consistent with our long-term strategy to capture the benefits of investing in sustainable locations within growing markets. Austin's growth, along with companies expanding their presence in the region, has seen occupiers requiring world-class facilities to retain and seek new talent. Through our occupier-driven approach with our like-minded JV partner Lionstone, we are confident that this investment will be a success."

The 206,657 square foot building at 3300 N Interstate Hwy 35 was 94% leased at the time of sale, with major tenants including Google, WeWork, ESPN, and Evernote. University Park will continue to be lease managed by Aquila Commercial Properties, while TransWestern will provide property management.

For more news and information visit Blumberg Partners.

Monday, March 14, 2016

JOSS Buys Napa Square for $39M

New York-based JOSS Realty Partners announced that it has purchased Napa Square, one of Napa, California's largest commercial complexes with offices and two restaurants, for $39.25 million. The 65,858 square foot boutique office property was sold by Napa Square Associates LLC, which partnered with Napa owner/developer, CDI, LLC to develop the three building property from 2006-2008, delivering in 2009; the complex cost an estimated $25 million to build.

The timing is right to try to sell, said Harry Price, Napa Square spokesman, in November. "It's a very strong investment market. We were very impressed with the team at JOSS Realty. They have a very fair and transparent approach to real estate. I think they will be good stewards of the property."

"Napa Square is one of two Class A office properties in downtown Napa, which is undergoing an urban transformation around its core industries, wine, and tourism," said Larry Botel, managing partner of JOSS Realty Partners, in a press release. "With Napa Valley long considered the anchor of U.S. wine manufacturing and the top producer of wines sold internationally, downtown Napa is coming into its own by becoming one of the best destinations for live, work, and play."

Napa Square was 90% leased at the time of sale, with major tenants including Wells Fargo and Charles Schwab, and several restaurants and retailers, such as Oenotri, Norman Rose Tavern, Studio M Fine Wines, and pureCru Tasting Room. The property features private subterranean parking, marquee ground floor retail, and modern Class A office space with private office balconies on the upper floors. JOSS' plans include investing in the property and developing new leasing initiatives to further attract new tenants.

For more news and information visit Blumberg Partners.

Thursday, March 10, 2016

Evolve IP Corporate Center in PA Sold for $42M

A joint venture between PDC-Old Eagle and Long Wharf Real Estate Partners has purchased the Evolve IP Corporate Center in Wayne, Pennsylvania for $42 million, according to a deed filed with Chester County. The 12-building office complex was sold by an affiliate of Philadelphia investor Thomas Gravina's GPX Enterprises, which originally acquired the complex in 2007. GPX, in partnership with the Chester County Economic Development Council's Ideas x Innovation Network (i2n), rebranded the property as Evolve IP Corporate Center in August 2012 to "aid startups by providing low-cost, highly flexible facilities," and to serve as the headquarters for the company's cloud computing unit, Evolve IP.

"Our recent asset dispositions were driven by strong investor demand for quality real estate assets," said Thomas J. Gravina, CEO and co-founder of GPX Realty Partners. "After several years of challenging market conditions we were pleased to realize strong returns for our investors through these asset sales, and we look forward to making future real estate investments in the Philadelphia region well into the future."

HFF arranged the joint venture partnership and secured the $29.6 million, five-year, fixed-rate acquisition loan through John Hancock's Real Estate Finance Group, according to a press release. The office park covers 40 acres at 983-999 Old Eagle School Road, approximately 20 miles from Philadelphia's central business district. The 12 single-story buildings were most recently renovated between 2007 and 2010, and were 80% occupied at the time of sale by 95 tenants, including Evolve IP, McBee Associates, Administrative Concepts Inc., YSC Academy, Prosoft Software and North American Specialty Products.

For more news and information visit Blumberg Partners.

Wednesday, March 9, 2016

JV Buys Chicago's Historic One North LaSalle, Plans Redevelopment

New York-based Chetrit Group has sold the historic landmark tower at One North LaSalle in Chicago's Central Loop to a joint venture between Hilco Real Estates, a unit of Northbrook-based Hilco Global, and two MB Real Estate Services (MBRE) executives. A purchase price for the 47-story office building and terms of the acquisition were not announced, though the property has been on the market for over a year. The property was appraised at $74 million in 2006, when Chetrit took out a $165 million loan on the building and two other downtown office towers it owned, 360 N. Michigan Ave. and 1 N. Dearborn St., according to a Crain's report. A multi-million-dollar capital budget is being put forth for the property redevelopment, with MBRE contracted to provide ongoing management, leasing, and construction oversight services.

"We are very familiar with One North LaSalle, having managed and leased it for various owners over the past 17 years," said Kevin Purcell, Executive Vice President and Chief Operating Officer of MBRE, in a press release. "Our planned redevelopment, combined with a hands-on ownership approach, will allow us to successfully position the property and unlock One North LaSalle's full potential. This is a tremendous and unique opportunity for all user types to lease space within a historic and highly visible Chicago office building that offers an ideal location in the Loop," said Purcell.

Originally built in 1930 and designed by Vitzthum & Burns, the 500,000 square foot building sits at the northeast corner of LaSalle and Madison streets. The Art Deco style building, known for its iconic exterior clock and 5th floor relief panels depicting the explorations of René-Robert Cavelier, Sieur de La Salle, was designated a Chicago Landmark in 1996 and added to the National Register of Historic Places in 1999. The JV said it has plans for an extensive redevelopment effort to introduce a variety of high-end tenant amenities including a rooftop deck, tenant lounge, conference facility, fitness center, and bike room.

For more news and information visit Blumberg Partners.

Tuesday, March 8, 2016

Songy/Edens Partnership Sells Houston Galleria Area Office Building

5433 WestheimerQuasar Galleria Ltd., a Texas-based investment group controlled by Avi Ron and Ronny Hecht, has purchased the newly renovated office building at 5433 Westheimer in the heart of Houston's Galleria area for an undisclosed price. HFF, which marketed the property and arranged the sale, said in a press release that the property traded hands free and clear of debt. Originally built in 1965, the 11-story office property was sold by a joint venture between Songy Partners LLC and Edens Investment Trust. The new owners have hired NAI Partners to handle leasing and property management.

Doug Pack, executive vice president of NAI Partners, told GlobeSt.com: "5433 is such a strategic location with great visibility. The building's former owner had put over $7 million of renovations into the building before exposing it to the investor market for a sale, but when Quasar Galleria Ltd. bought it, we came to understand the vision they had for taking those enhancements and the building's historical 'boutique nature' to another level."

The Songy partnership completed a renovation of the 133,000-square-foot property in 2013, according to a Houston Chronicle report. Enhancements performed since 2008 include a new parking system, upgrades to common areas, a lower-level buildout for Houston's only Ruth's Chris Steak House, and painting the exterior with elastomeric coating. The 81.2% leased building is located less than a half mile west of the Galleria mall, and is less than a 15 minute drive to Houston's premier residential neighborhoods including Tanglewood, Memorial Villages, River Oaks and West University Place.

For more news and information visit Blumberg Partners.

Monday, March 7, 2016

JV Buys $1.34B Los Angeles Office Portfolio

Douglas Emmett, Inc., the California-based REIT, announced that in a joint venture with Qatar Investment Authority (QIA) it had acquired a 1,725,000 square foot office portfolio in Westwood for $1.34 billion, or approximately $777 per square foot. The JV secured a a non-recourse $580 million interest-only loan with a seven-year term in connection with the acquisition. The interest rate is floating at Libor plus 1.40%, which has been fixed at 2.37% annually for five years through an interest rate swap.

Douglas Emmett indicated that it plans to retain 20-30% of the equity in the joint venture, with the remaining interests being held by institutional partners. With this purchase, Douglas Emmett controls 74% of the Westwood Wilshire office corridor, where it already owned One Westwood, 10960 Wilshire, The Tower, 10880 Wilshire, Westwood Place and Westwood Center.

For QIA, this joint venture represents another step in its plans to significantly expand its US investment portfolio, and follows other large investments in real estate, such as in New York City last year. In 2015, QIA announced plans to invest $35 billion in North America over five years.

For more news and information visit Blumberg Partners.

Friday, March 4, 2016

Carr Buys 1615 L in DC for $229M

An affiliate of Washington, DC-based Carr Properties has closed on the $229 million acquisition of 1615 L Street, a 417,273-square foot office building in Northwest DC, according to city land records. Carr received the property from an affiliate of Spitzer Enterprises, which acquired the building in March of 2009 for $180 million, or $430 per square foot, and paid for the building with cash, assuming a pre-existing $138 million mortgage. Spitzer was represented in the deal by Cushman & Wakefield; representation for Carr Properties was not disclosed.

Carr Properties has made some big bets in the neighborhood, having bought the nearby Washington Post headquarters at 1150 15th Street for $159 million, a new building at 1152 15th Street $138 million, and Columbia Center, which it acquired for $258 million. 1615 L Street is a thirteen-story office building with 412,052 square feet of net rentable space, plus 263 parking spaces contained in a three-level underground parking garage. The property was nearly fully leased at the time of sale.

For more news and information visit Blumberg Partners.

Thursday, March 3, 2016

Akridge Transforming DC YMCA to Trophy Office Building

DC-based developer Akridge and its partner, Alcion Ventures, L.P., announced that it would transform the former YMCA National Capital building in Northwest DC into a 100,000-square-foot boutique office building. The YMCA of Metropolitan Washington announced last October that it had reached a deal to sell the property to Akridge and close the facility by December 31; neither party disclosed a sale price, but the building was assessed at $23.2 million. Construction is expected to begin early 2017 with a delivery by the summer of 2018.

"Akridge is proud to rejuvenate this prominent site," said Matt Klein, President of Akridge, in a press release. "After the tremendous success we experienced just across the street at 1200 Seventeenth Street, we are excited to deliver another best-in-class, efficient office building to this neighborhood in the Central Business District."

Akridge plans to completely replace the building's façade, infill gym and court floor slabs, and convert a swimming pool into two levels of parking. Hickok Cole Architects has been selected to design the building, rebranded as 1701 Rhode Island, to create a modern facility with a two-story lobby, landscaped rooftop terrace, and a fitness facility. The press release reports that the developer is hoping to achieve LEED Gold certification with the development.

For more news and information visit Blumberg Partners.

Wednesday, March 2, 2016

AEW Sells Seattle Tower for $370M

Germany-based Deutsche Asset and Wealth Management's Alternatives and Real Assets (ARA) has purchased a 28-story office building in Seattle's Lake Union submarket from AEW Capital Management for $370 million. The Seattle Times reports that AEW Capital Management paid $278.7 million for the building when it bought the property from Prudential and Touchstone about three years ago. The buyer financed the acquisition in part with $122.7 million in funding provided by The Prudential Insurance Company of America, according to a CoStar report.

"West 8th is located where Seattle's most sought after commercial, residential and retail properties intersect to provide a true urban live, work, play experience," said Todd Henderson, Head of Real Estate in the Americas for ARA. "This Class-A asset not only increases the quality of the portfolio, we believe it has the potential to provide investors with an attractive cash return for a high-quality office asset in a prime location."

The tower at 2001 8th Avenue, also known as West 8th, was designed by Callison and built in 2009 by Seattle-based Touchstone Corp. According to its listing on OfficeSpace.com, the 498,893-square-foot office tower has a vacancy rate of less than 2%, with online retailer Amazon.com occupying a majority of the building alongside Casey Family Programs and Seattle Children's Research Institute. West 8th features state-of-the-art office spaces, luxurious amenities and sweeping Lake Union views, and is the first multi-tenant building in the Seattle area to feature LEED Gold certification for new construction.

For more news and information visit Blumberg Partners.

Tuesday, March 1, 2016

Investcorp Buys DC Office Building for Over $1000/sf

Investcorp, the Bahrain-based asset manager, announced that its US-based real estate arm purchased 733 10th Street in Washington, DC for approximately $180 million, or $1,053 per square foot. The sale price of the fully leased, 170,813-square-foot office building came in just $48 per square foot short of the city's record, set by Jamestown last year for America's Square. Jamestown originally purchased 733 10th Street in 2012 for $140 million from Skanska, which built and developed the property in 2009. Investcorp purchased the property with a joint venture partner, real estate investment banking firm ScanlanKemperBard. Terms of the deal were not disclosed.

"The 733 10th Street property is a stable, prime asset offering what we believe to be resilient, long-term value in combination with attractive current yields," said Brian Kelley, Principal, Real Estate Investment at Investcorp. "We are actively seeking additional core-quality, stable properties like 733 10th Street in a handful of major gateway markets to supplement our ongoing investment activity in core-plus, high cash yield-oriented properties throughout the U.S."

The luxury office building at 733 10th Street is located in the heart of DC's East End office submarket, in close proximity to high-end retail stores, premium hotels and restaurants, two major Metro Stations and 3 blocks from the Verizon Center. Investcorp said that, despite falls in the global oil price, over the past 12 months its total real estate acquisitions have exceeded $1.5 billion in gross asset value as Arabian Gulf investors continue to look to diversify their wealth out of the Middle East region.

For more news and information visit Blumberg Partners.