Symetra Financial Center Sold for $185M

Walton Street Capital of Chicago, a private equity real estate investment firm, has sold the Symetra Financial Center in Bellevue, Washington to Sterling Realty Organization for $185 million, or about $422 per square foot. Bellevue-based Sterling Realty Organization has, since the late 1950s, owned the land under Symetra Center as well as seven contiguous acres. Tom Gilchrist, President of Sterling Realty said, "We are excited to own a Class A building in Bellevue. It complements our downtown holdings and is a natural evolution in our recent growth." Full terms of the deal and representative agents were not disclosed by either company.

Walton Street Capital originally put the property on the market in 2014 as part of a large group of office buildings in the Puget Sound region, then again as a single listing in 2015. Walton Street originally took over ownership of the property along with ten other Seattle area assets when a Goldman Sachs-sponsored commingled fund defaulted on a $900 million mezzanine loan.

"We have owned this property for a while, and we have done a great deal of work on the asset to improve it over time. We think now is a good time to be a seller. There is a great deal of demand for both from tenants looking for space and for capital looking to buy assets in the greater Seattle marketplace," Eric Mogentale, a managing principal with Walton Street, said of the property last fall.

Symetra Financial Center, formerly known as Rainier Plaza, is a 25 story office tower in Bellevue's Central Business District. Built in 1986 and designed by McKinley Architects, the glass tower at 777 108th Avenue Northeast in Bellevue boasts 445,089 square feet of space, the top floor of which was occupied by The Harbor Club until 2014. Major tenants include Symetra Life Insurance Company, TD Ameritrade, Columbia Bank, Baird, MWBoone & Associates, LLC, and North Way Investments, Inc.

For more news and information visit Blumberg Partners.

RXR Closes $1.65B Avenue of the Americas Acquisition

An affiliate of RXR Realty LLC announced the closing of the $1.65 billion acquisition of 1285 Avenue of the Americas, as well as the long-term lease renewal of more than 900,000 square feet to keep UBS's North American headquarters in the office building. The Real Deal first reported that Scott Rechler's RXR Realty was on the verge of a deal to acquire the 42-story office tower, and reports this week that it partnered on the deal with real estate investor David Werner, according to the Commercial Observer, noting that the duo financed the purchase with $1.2 billion in loans from AIG and Morgan Stanley. AXA Financial Inc. sold the property in partnership with JPMorgan Chase & Co.; AXA first put the tower on the market last fall along with 787 Seventh Avenue, which has since been sold to CalPERS; one source noted that both properties had been "institutionally owned for decades," and would likely fetch around $4 billion because they have "institutional-quality tenants [with] high credit and the in-place market rents are significantly below market."

Located between 51st and 52nd Streets and also known as the Equitable Building, 1285 Avenue of the Americas is a Class-A mixed-use tower featuring office, retail, and storage. RXR Realty plans to upgrade the building's lobby, modernize the elevator mechanical systems and make improvements to the plaza. "We are excited to close on the acquisition of 1285 Avenue of the Americas and simultaneously execute a long-term renewal with UBS," said Scott Rechler Chairman and CEO of RXR Realty. "It is only fitting that one of the city's most prestigious buildings will remain the home to some of the city's most prestigious companies for decades to come." In addition to UBS, the building is co-anchored by law firm Paul Weiss Rifkind Wharton & Garrison LLP in 550,000 square feet and Omnicom Group affiliate BBDO, a marketing and communications firm, in 325,000 square feet.

For more news and information visit Blumberg Partners.

New York REIT Buys JBG Cos. to Create $8.4B Company

New York REIT, Inc. announced that it has entered into a definitive agreement to acquire substantially all of the properties and the management business of JBG Companies, forming a new $8.4 billion enterprise to be renamed JBG Realty Trust. JBG was rumored to be in talks with New York REIT earlier this month, a deal in which the Chevy Chase developer accomplishes the goal of going public — an objective it's been weighing for more than a year — without the cost and regulatory burdens of filing an initial public offering.

The combined company's portfolio will span over 14.5 million square feet of office, residential and retail properties across the gateway markets of New York City and Washington, D.C., concentrated in transportation served, urban-infill submarkets. Approximately 22% of the portfolio will be located in New York City, with the balance of approximately 78% located in premier submarkets within the Washington, D.C. Metro area. The combined portfolio includes over 9.7 million rentable square feet of high quality office assets, approximately 1.0 million rentable square feet of retail assets, and approximately 4,500 residential units.

As part of the transaction, New York REIT's external management contract will be terminated upon closing and the combined company will be internally managed by JBG's current management team. W. Matt Kelly will be named Chief Executive Officer, David Paul will be named President and Chief Operating Officer, James Iker will be named Chief Investment Officer and Interim Chief Financial Officer, and Brian Coulter will be named Chief Development Officer. Michael Happel, New York REIT's current President and Chief Executive Officer has agreed to assist in the transition and will serve as a consultant to the combined company for a transition period.

Randolph Read, Chairman of the Board of NYRT, said of the deal, "We are extremely pleased to be able to announce this transaction with The JBG Companies which is nothing short of transformative for New York REIT. This combination creates a substantial REIT in New York City and Washington, D.C. We believe that the expertise of the JBG management team is recognized throughout the industry and that this combination will provide the NYRT stockholders with a unique opportunity to participate in the value creation potential that this combination will bring." JBG Realty Trust will be headquartered in Chevy Chase, MD with a regional office in New York City.

For more news and information visit Blumberg Partners.

Sumitomo Buys Miami Tower for $220M

Sumitomo Corporation of Americas (SCOA), the largest subsidiary of Sumitomo Corporation, one of the world’s leading traders of goods and services, has closed on the purchase of Miami Tower in the city's central business district for $220 million. HFF marketed the property on behalf of the seller, LaSalle Investment Management’s LaSalle Income & Growth Fund V, and procured the buyer. The deal more than doubles LaSalle's investment on the office building, which it purchased in December 2010 for $105.5 million from Wealth Capital Management, Inc. Prior to that, the building was purchased in 2003 for $85 million by Blue Capital.

Robert Obringer, vice president of Sumitomo Corporation of Americas Commercial Real Estate Unit, sees solid value in this latest acquisition. "We are excited to add Miami Tower to our portfolio of commercial properties here in the U.S.," explains Mr. Obringer. "As part of our constant management of assets, we are always looking for opportunities that will maximize return on investment, and this property offers a strong upside potential for in-place cash flow and the opportunity to increase value."

"Miami Tower is perfectly positioned to take advantage of the exciting renaissance of the Miami CBD, which has been ranked as top U.S. metro for job growth in 2015 and sixth most important city in the world for ultra-high net worth individuals" Hermen Rodriguez, senior managing director with HFF, said in a prepared statement.

Previously known as the CenTrust Tower, the iconic Miami Tower was originally built in 1987 and designed by Pritzker Prize-winning architect, I.M. Pei. The 47-story tower located at 100 SE 2nd Street ranks in the top ten tallest skyscrapers in Miami and in Florida. The property consists of two separate structures: a 10-story parking garage owned by the city and the 47-story office tower built upon the air rights of the garage. The tower's three tiers allow it to have multiple color schemes in tribute to certain holidays and seasons. Major tenants include Carlton Fields, TotalBank, UBS Financial Services, Genovese Joblove & Battista, Ver Ploeg & Lumpkin and the General Services Administration.

For more news and information visit Blumberg Partners.

Hines REIT Pays $140M for Utah Corporate Center

Hines Global REIT II, Inc. has agreed to pay $140 million for Cottonwood Corporate Center, a four-building, Class-A office project located in Cottonwood, Utah. The property is being sold by NOP Cottonwood Holdings, LLC, according to an SEC filing. Hines Global II expects the closing of this acquisition to occur on or about June 10, 2016, subject to a number of closing conditions.

This isn't the first time Hines has had an interest in the property; in 2005, the Salt Lake City office of Hines acquired Cottonwood Corporate Center on behalf of National Office Partners Limited Partnership (NOP), its investment partnership with the California Public Employees' Retirement System (CalPERS), from Cottonwood Partners for an undisclosed amount.

Located at 2755-2855 East Cottonwood Parkway, Cottonwood Corporate Center was originally designed by Giles Stransky Brems Smith and built between 1997 and 2000 to offer 490,030 square feet of rentable space. The CommonWealth Partners property management team began retrofitting the Cottonwood Corporate Center in 2012 to increase its already impressive ENERGY STAR® score of 94 and winning a 2015 Mid-Rise Suburban Office Park Toby Award. According to the filing, the property was 91% leased at the time of sale with major tenants including SanDisk and Extra Space Storage. The complex is in a submarket of Salt Lake City, situated at the base of Big Cottonwood and Little Cottonwood canyons, and is in close proximity to Salt Lake International Airport.

For more news and information visit Blumberg Partners.

$314M Refi Loan Provided for 63 Madison

A partnership between Loeb Partners, Jamestown, and George Comfort & Sons named 63 Madison Associates has secured a $313.5 million loan from the Bank of China for 63 Madison Avenue in Manhattan. The loan replaces old debts on the property and provides the owners with capital to complete renovations on the building. The Real Deal reports that Jamestown bought a 49% stake in 63 Madison Avenue earlier this year for $271 million, as well as a stake in George Comfort & Sons and Loeb Partners’ 26-story, 750,000-square-foot 200 Madison as part of the same transaction, paying $293 million.

63 Madison Avenue was originally completed in 1961 and occupies the entire block between East 27th and 28th Streets. The 15 story, 870,000 square foot office building is currently 100% leased with major tenants including IBM and Birchbox. This isn't the first time the Bank of China has provided a loan on the property, having issued a $152.3 million loan in February of 2015 and $150 million in February 2010. Renovation plans have not been disclosed, but New York-based Rosen Johnson Architects released designs to convert the ground-floor conference center to retail use with new storefronts, signage, easier access to stores and greater visibility overall.

For more news and information visit Blumberg Partners.

C-III Capital Partners Acquires Resource America for $207M

Resource America, Inc., a Philadelphia real estate investment and finance firm, announced that it has entered into a definitive agreement to be acquired by C-III Capital Partners LLC, a New York-based real estate investment company, for a total of approximately $207 million, or $9.78 per share. Resource America's Board of Directors unanimously approved the agreement, which is expected to close late in the third quarter or early in the fourth quarter of 2016, pending approval by Resource America stockholders, regulatory approvals and other customary closing conditions. C-III said in a statement that it intends to retain the leadership and staff of Resource America's asset management businesses. Proskauer represented C-III Capital Partners in the acquisition while Evercore served as exclusive financial advisors to Resource America.

"We are very pleased with this transaction, which we believe provides excellent value to our shareholders and positions the businesses that we have created for further growth," said Jonathan Cohen, President and CEO of Resource America. "C-III is a highly regarded real estate services and investment management organization with outstanding leadership, deep commercial real estate expertise and a management team, led by Andrew Farkas, that has a 30-year track record of acquiring and enhancing businesses and helping them flourish. This transaction should enable Resource America to focus on reaching a new level of excellence, which will benefit our employees, customers and partners."

Resource America is the external manager of one publicly traded REIT, four non-traded REITs and two other registered investment companies and focuses on capital-raising activities through the independent broker-dealer network. The combined company will manage over $25 billion of gross assets, and will be the owner or manager of over 70,000 apartment units across the U.S., the companies said.

For more news and information visit Blumberg Partners.

Boston Properties Buys In to Colorado Center

New York-based mega investment firm Blackstone Group is selling its stake in a Santa Monica office complex to Boston Properties for more than $500 million, marking the real estate investment trust's first purchase in southern California. According to a report from The Real Deal, it is the priciest single-property commercial sale to go down in L.A. County this year. The Teachers Insurance and Annuity Association (TIAA), a financial services organization, still controls the other 50% interest in the property.

Blackstone Group is selling the 50% stake in the Colorado Center that it acquired in 2007 from Equity Office Properties Trust as part of a $39 billion buyout of the company, the Los Angeles Business Journal reported. Equity Office bought the complex for $443.6 million in 2004 from Tishman Speyer Properties through a joint venture with TIAA-CREF, leaving Equity's net share of the purchase price at approximately $221.8 million. Prior to that, Tishman Speyer acquired the office property for about $353 million in 2000 from Maguire Partners.

"After a decade-plus of Boston Properties angling for a way to buy into the westside L.A. office lifestyle, it seems that the company has finally been able to plant its flag near the Santa Monica beaches," Alexander Goldfarb, an analyst with Sandler O'Neill & Partners LP, wrote in a research note after the Real Deal report. "Boston Properties' fortress balance sheet makes it well-suited for these sorts of purchases."

Colorado Center, formerly known as the Yahoo Center and MGM Plaza, is a six building, 15-acre property in the Silicon Beach area of Santa Monica with over a million square feet of office space. Originally built in the 1980s, the property has undergone several renovations, including a major overhaul prior to Yahoo's arrival by then-owner Tishman Speyer. The property was roughly 63% leased at the time of sale, with major tenants including Hulu, Yahoo! Inc., Riot Games Inc. and eHarmony.

For more news and information visit Blumberg Partners.

Intercontinental Buys Canal Park Complex for $304M

Boston-based Intercontinental Real Estate Corporation, a national real estate investment, development and management firm, has purchased the Canal Park portfolio, a recently renovated office and retail campus in East Cambridge, for $304 million. The property was sold by Beacon Capital, which placed the campus up for sale in 2015, expecting it to fetch bids of up to $315 million. Beacon originally acquired the property in 2014 via separate transactions totaling $169, then invested another $11 million in upgrades to reposition the property as a Class A office campus.

"This investment represents every characteristic we seek in a 'core' investment: primary market, high quality construction, transit friendly location, and high quality occupancy," said Intercontinental Real Estate Corporation CEO Peter Palandjian in a press release. "Plus, this investment is directly in our 'backyard.' We have invested successfully in Cambridge going back 5 decades." Intercontinental bought the 426,000-square-foot complex through the firm’s United States Real Estate Investment Fund, a $5.6 billion fund that invests in a range of commercial properties across the country.

Built between 1987 and 1999, Canal Park overlooks the Charles River with easy access to Harvard Square, Downtown Boston, the Back Bay, and within a block of an MBTA station that connects to North Station in Boston. The three-building complex, most recently renovated in 2015, includes:

One Canal Park is a 4-story, 101,128 square foot building with 85,460 square feet of office space and 15,668 square feet of retail space;

Two Canal Park is a 5-story, 202,567 square foot building with 197,397 square feet of office space and 9,170 square feet of retail space; and

Ten Canal Park is a 6-story 118,035 square foot building with 107,650 square feet of office space and 10,385 square feet of retail space.

The property was 97% leased when it was put up for sale, with major tenants including Blackbaud, CarGurus, HubSpot, Kayak, Philips and Symantec.

For more news and information visit Blumberg Partners.

Houston's Exxon Campus Sold to JV

The Exxon Mobil Brookhollow office complex at 4400 - 4550 Dacoma Street, which was once home to numerous back office operations for the corporation, has been sold for an undisclosed amount. The 24-acre property, which was originally placed on the market in 2014 as it prepared to consolidate thousands of employees across the Houston area, leaving the complex vacant after departure. RNR reports that a partnership affiliated with Houston real estate investor Khaled Salem of Williamsburg Enterprises and Alan Hassenflu of Fidelis Realty Partners purchased the property from Exxon Mobil. RNR suggests that the property sold for $11 million, which is well below the placed approximate value at $40 million just two years ago.

"This is one of the largest and most desirable in-fill tracts remaining in all of Houston," said JLL's managing director Rudy Hubbard, which marketed the property on behalf of Exxon. "This premier site is ideal for a mixed-use redevelopment that includes office, retail, residential and hospitality components."

The Exxon Mobil Brookhollow facility at the intersection of Highway 290 and Dacoma Street includes three office buildings totaling 500,000 square feet, a full-service cafeteria and 60,000 square feet of storage and auxiliary buildings. Originally constructed in 1970, the property earned the ENERGY STAR for superior energy performance as a result of Exxon Mobil's continuing commitment to energy efficiency in all its operations.

For more news and information visit Blumberg Partners.

TIAA Sells Market Common Clarendon for $406M

AvalonBay Communities, Inc. announced this week that, together with Regency Centers Corporation, it has purchased Market Common Clarendon from TIAA Global Asset Management for $406 million, of which Regency's share was $285.7 million, according to a Reuters report. In order to facilitate the acquisition, AvalonBay and Regency Centers formed an agreement under which AvalonBay will acquire the attributes of the residential component of Market Common Clarendon and Regency will acquire the retail and all remaining components. TIAA-CREF has owned the property since 2002 when it bought Market Common Clarendon from developer McCaffery Interests in two separate deals worth $147.5 million and $18.6 million.

"Market Common Clarendon has been a nationally recognized project since its development in 2001," said Barry Argalas, Senior Vice President of National Transactions for Regency Centers. "The combination of a dense, affluent, and highly educated customer base, along with the convenient access to the Clarendon metro station, all contribute to the success of the retailers. Market Common is a seasoned and cycle tested 10-acre urban shopping center that perfectly reflects our investment strategy of acquiring best-in-class properties in highly desirable markets."

Market Common Clarendon is a mixed-use development in Arlington, Virginia that features 300 apartment units, 300,000 square feet of retail and 100,000 square feet of office space. The retail component is currently anchored by Whole Foods Market, Apple (currently closed for renovations), Crate & Barrel, The Container Store, Pottery Barn, and Williams-Sonoma. The three properties that are trading as part of the deal are the retail component at 2700 Clarendon Blvd.; the apartment building at 2800 Clarendon Blvd.; and the office building at 2801 Clarendon Blvd.

For more news and information visit Blumberg Partners.

Chicago's Old Main Post Office Sold for $130M

On Thursday, Chicago's Mayor Rahm Emanuel announced the finalization of the sale of the Old Main Post Office to 601 W Companies LLC (601W), a New York-based private real estate investment company that owns Chicago's Aon Center and Prudential Plaza. International Property Developers North America Inc. bought the property in 2009, but plans for redevelopment stalled and left the property abandoned for years. The mayor and the Chicago Department of Planning and Development announced plans earlier this year to acquire the building and accept bids for the vacant property, but held action after receiving notice that 601W was in talks to take over the project; the city gave the company until June 1 to complete the deal. The property sold for $130 million, said 601W Principal Mark Karasick.

"Today we are taking another significant step towards transforming the Old Main Post Office site into an economic driver for the City of Chicago," Emanuel said in a statement. "This project will create thousands of jobs and generate new economic opportunities for residents in our neighborhoods, while restoring and reviving an iconic gateway to our city."

The 2.5 million-square-foot building has not been occupied since the United States Postal Services moved its operations in 1995. Karasick said that 601W plans a three-phase $500 million redevelopment of the property, including the revamping of all HVAC, plumbing and mechanical systems, expecting to court office tenants next year and begin occupancy in 2018. "With a new owner, the building has a brand new future as one of the city's most desirable business addresses," said Chicago Ward 25 Alderman Danny Solis. "I'm confident in 601W's ability to deliver on its plan and look forward to substantial progress in the months ahead."

For more news and information visit Blumberg Partners.

Tishman Plans New M Street Office Building

New York City-based Tishman Speyer released renderings this week for the redevelopment of 2050 M Street in Washington, DC, which currently serves as the DC bureau of CBS News. With delivery expected for 2019, the 364,000 square foot building will include iconic, modern design provided by REX Architects. The building is expected to be constructed in two phases to enable uninterrupted broadcasting for CBS, who will remain at the property throughout the transformation. This is the first project in the District for REX, whose portfolio includes Five Manhattan West in New York City, and the Equator Tower in Kuala Lampur.

"What we tried to do was to really find a way to distinguish our building with some shape and movement but still operate within those constraints," said Tishman Speyer Managing Director Paul DeMartini, who declined to disclose project costs.

Joshua Prince-Ramus, the principal of New York-based firm REX, added that "the proposal was very, in a way, simple, and that was by giving the glass a subtle curvature. One of the beautiful effects is it makes the building look fluted, almost like a Tiffany glass, like a champagne glass."

Once complete, 2050 M Street will be encased in a glass façade that creates a kaleidoscope effect, consisting of an innovative floor-to-ceiling curved glass wall with no vertical mullions. "Because of the curve's inherent rigidity in compression, only the top and bottom edges of the panels are supported from the floor slabs, while the 'mullion-less' vertical edges are flush-glazed for a minimalist aesthetic that improves sightlines, while gaining useable floor area," said the firm in a statement. The building will also feature a private 11th floor balcony, fitness center, and a panoramic roof deck with sweeping views of the city.

The property is located in the city's Golden Triangle business district, steps from four lines of the Metro system and a 15-minute drive from National Airport. According to BizNow, Tishman acquired the CBS building at 2020 M St last summer for $30.5 million, and followed that with the acquisition of 2030 M St for $49 million.

For more news and information visit Blumberg Partners.

Hines, Gemdale Partner to Redevelop Boston's South Station

Global real estate firm Hines announced that it has partnered with Gemdale Properties, one of the largest builders in China, to redevelop Boston's South Station with a 677-foot condo and office building at the city's busiest train station. Hines originally secured approval for the development of a three-phase, 1.8 million-square-foot mixed-use air-rights project at South Station in 2006, but the project was delayed after the market fell and its partner, Tufts University, exited the project in 2009. Hines has been meeting with MassDOT and the Boston Redevelopment Authority in recent weeks to hash out details of the new partnership plan, as a new equity partner requires approval from the city because the air rights above South Station are jointly owned by the city and state, and a financial analysis is required for any city-owned development site, according to the BRA.

"Boston is experiencing a remarkable economic and physical transformation," said Hines Founder and Chairman Gerald Hines. "Hines and Gemdale PI will make a significant investment in upgrading and expanding Boston's transportation infrastructure at the regional transit hub. The project will also result in the creation of a world-class, architecturally significant, mixed-use community. We are thrilled and honored to participate in this critical public/private partnership with the MBTA to complete the redevelopment of the Dukakis Transportation Center."

The redevelopment of the South Station Transportation Center, now known as the Michael S. Dukakis Transportation Center, includes a 26-floor tower starting nine stories above the ground, 530 parking spaces, and the expansion of the South Station bus terminal. The building will feature state-of-the-art commercial office space with the top 16 floors reserved for residential condominium units with panoramic views of the city and Boston Harbor.

Hines Senior Managing Director and longtime head of the firm's Boston office David Perry said, "The visibility of this corner location and the scale and dramatic styling of the tower, combined with the dignity of the station façade at its base, will serve to establish the project's identity as the most prominent building in downtown Boston and reinforce the site's strategic location at the intersection of Boston's Seaport and Financial Districts."

"Gemdale Corporation, a PRC company listed on the Shanghai Stock Exchange and the controlling shareholder of Gemdale PI, brings outstanding real estate development experience and community service to our joint venture in Boston. Together with Hines, and various governmental bodies with interests in South Station, we are committed to develop an outstanding project that Gemdale, Hines and the City of Boston will all be very proud of," added Jason Zhu, Chairman and CEO of Gemdale USA Corporation.

For more news and information visit Blumberg Partners.

Bridgeton Holdings Picks Up Market Street Office Building in SF

Mission Capital Advisors, a national real estate services firm, announced that it had arranged a $45 million acquisition loan for 995 Market Street in San Francisco on behalf of Bridgeton Holdings, a fully integrated owner, developer, and manager of commercial and residential real estate. Bridgeton purchased the 91,300 square foot tower for $62 million, or approximately $680 per square foot. The 15-story building was first placed on the market in October of 2015 by a joint venture between Seattle-based investment firm Columbia Pacific Advisors and San Francisco-based real estate company Long Market Property Partners, who at the time expected it to sell for $60 million. The JV originally acquired the property in 2013 for an undisclosed sum, though the building reportedly sold for $17 million. Columbia Pacific and Long Market redeveloped the property to include significant base building upgrades, a seismic retrofit, exterior improvements and state-of-the-art tenant finishes.

"995 Market Street is a prime example of the radical transformation that has taken place in the Mid-Market neighborhood over the past few years. Since 2012, more than $1 billion of commercial redevelopment has been invested into the area, creating the most dynamic submarket in San Francisco," said Kyle Kovac, a Newmark Cornish & Carey senior managing director who marketed the property for sale.

"The building will be a long term asset for us, as we continue to amass strategic properties in transitioning markets that have improving neighborhood dynamics and strong supply and demand fundamentals," said Atit Jariwala of Bridgeton Holdings.

Built in 1962, the property has a commanding corner presence as the tallest building within a two block radius, offering unobstructed 360-degree views of San Francisco. 995 Market Street is located within the Payroll Tax Exclusion zone, and benefits from the economic incentive plan implemented by the City of San Francisco in 2011 to attract tenants to the mid-Market area. The office space is currently leased to WeWork and a non-profit tenant, while the retail component is full occupied by CVS on a long-term lease.

For more news and information visit Blumberg Partners.

Vornado Secures $273M Loan to Refinance Warner Building

Vornado Realty Trust, the New York-based equity real estate investment trust, announced that it has completed a $273 million refinancing of The Warner Building in Washington, DC. The seven year loan provided by TIAA-CREF has a fixed rate of 3.65%, a step away from the previous 6.26%/$293 million mortgage on the office building that was set to mature on May 12. Washington Business Journal reported in April that Vornado faced the prospect of defaulting on its previous loan, which had been transferred to special servicer LNR Partners Inc., according to debt monitoring firms Fitch Ratings and Trepp LLC. The building is owned by a joint venture between Vornado Realty Trust, controlling 55%, while Canada Pension Plan Investment Board controls the remaining 45%.

Located at 1299 Pennsylvania Avenue, the 621,000 square foot office building was built in 1993, renovated in 2012, and sits just three blocks from the White House and overlooks Freedom Plaza. Designed by Pei Cobb Freed & Partners, The Warner Building features a dramatic sky-lit interior atria, a rooftop terrace, fitness center and 24 hour on-site security. The property is currently 88% leased, with major tenants including General Electric, Facebook, Hewlett Packard and APCO Worldwide, with ground floor retail tenants including Au Bon Pain and the Warner Theatre.

For more news and information visit Blumberg Partners.

Jacobs Unveils $405M Cleveland MU Development Plans

Jacobs Investments, the North Palm Beach, Florida-based private investment equity firm, has revealed plans that would take 22 acres of land along the west bank of the flats in Cleveland, Ohio, transforming it into a $405 million mixed-use phased development. The complex, known as the Nautica Entertainment Complex and opened by Jacobs Investments in 1986, would see the development expand to include a new 150-room hotel, a 15-story office building, 664 residential units, an iconic water feature and another 3,715 parking spaces.

"The Nautica Waterfront District represents a unique opportunity that leverages our development experience and investment in Cleveland allowing Cleveland's waterfront to continue to evolve as a vibrant urban environment," Jeffrey Jacobs, chairman and chief executive officer at Jacobs Investments, said in a press release. "Nautica's vista of the downtown Cleveland skyline is second to none and is one of many reasons why Greater Clevelanders will continue to seek out the opportunity to live, work and play at the Nautica Waterfront District."

The $405 million "live, work and play" development in the Nautica Waterfront District will create 230 full-time jobs with $5.8 million in annual payroll, the developer said. The Nautica Entertainment Complex opened in 1986 and included the Nautica Queen dining/cruise ship, amphitheater Jacobs Pavilion, the Improv, Shooters on the Water and Music Box Supper Club, the Apartments at Nautica and additional housing.

Jacobs Investments expects ground to be broken for the project in 2018 with a seven-year build out anticipated. "We expect to spend most of 2017 working on financing and drawing and permitting, and coming out of the ground in early 2018," said Jacobs' vice president of development, David Grunenwald. "We now enter into a pre-development phase that will include conversations with the city of Cleveland regarding a variety of infrastructure issues, most important of which is maintaining Nautica's ingress and egress to the Cleveland shoreway."

For more news and information visit Blumberg Partners.

LPC Closes $71.6M Charlotte Office Tower Deal

LPC Realty Advisors I, LP, an affiliate of Lincoln Property Company, in conjunction with their local affiliate Lincoln Harris, has closed on the purchase of a 32-story office building in Charlotte, North Carolina for $71.6 million on behalf of a pension fund client. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property, represented the seller in the transaction, a partnership controlled by the Durham-based Dilweg Companies, and also secured a $44.1 million loan on behalf of LPC to finance the purchase. Initial proceeds of $36.1 million were used for post-close acquisition financing, while the remainder will be used for future capital costs, according to a CPE report. The Dilweg partnership originally acquired the building in 2013 for $59.6 million.

"The market aggressively pursued 121 West Trade Street as buyers realized the building’s potential to harness very strong rents in the future,” said HFF senior managing director Ryan Clutter. "We are currently experiencing the strongest demand in the market for value-add office buildings located in strong CBD’s like downtown Charlotte. 121 West Trade Street was no exception as considerable capital aggressively competed for this asset."

Built in the 1990s and formerly known as Interstate Tower, 121 West Trade Street was designed by Kohn, Pedersen and Fox, with a dramatic two-story lobby featuring upscale green, black, and white marble and brass trim. The 329,930 square foot building is in the heart of downtown Charlotte within walking distance of amenities and attractions including The EpiCentre, Spirit Square Center for the Arts, Discovery Space Center, Time Warner Cable Arena, the Levine Center for the Arts, and the new Gold Line streetcar system. The property was 74% leased at the time of sale with major tenants including Chicago Bridge & Iron, SAS Institute, Caudle & Spears and Brookwood Associates.

For more news and information visit Blumberg Partners.

Broadstone Acquires Nationwide Offices for $54.6M

Broadstone Net Lease, an REIT managed by Broadstone Real Estate, LLC, announced the purchase of two office buildings in Pennsylvania from Nationwide Mutual Insurance Company in a $54.6 million sale-leaseback deal. The two properties are located in Harrisburg and Harleysville, Pennsylvania with 384,797 square feet of space on 65 acres, all of which is tenanted under one master lease for an initial term of 12 years, supporting numerous Nationwide business units, including underwriting, claims processing, and information technology. The deal was brokered and sourced by Steve Marzullo at CBRE.

"We are thrilled to acquire these two Nationwide properties, and to commence a new 12-year lease via this sale leaseback transaction," said Amy Tait, Chairman and CEO of Broadstone Real Estate, in a statement on the deal. "BNL has assembled a fully-leased portfolio of 348 properties, and this acquisition serves to further bolster the credit strength of our portfolio."

The properties have seen upgrades in recent years as Nationwide has worked to centralized its regional operations after the acquisition of Harleysville Mutual Insurance Co. and Harleysville Group Inc. While Nationwide will continue to keep its regional headquarters in Harleysville, the company disclosed that it will transfer all 100 jobs from its investment management unit in King of Prussia to its corporate headquarters in Columbus, Ohio, by the end of this year.

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Berkeley Buys MA Office Building for $22M

Boston-based Berkeley Investments announced the purchase of the office building at 200 Exchange Street in Malden, Massachusetts for $21.686 million,or about $70 per square foot. The 314,176-square-foot office building was sold by an affiliate of KBS Real Estate Investment Trust, Inc., which was advised by Gramercy Property Trust in the transaction. Full terms of the deal were not disclosed.

"Malden Center is currently undergoing a dramatic transformation as a downtown redevelopment is underway that will reconnect streets, relocate City Hall, and introduce hundreds of new residential units along with numerous new retail destinations," said Ben Sayles at HFF, which represented the seller and procured the buyer in the transaction. "With a lower price point than other close-in suburbs and with immediate T access, Malden is emerging as a new residential and commercial hub for the region and 200 Exchange Street is well positioned to both contribute to and benefit from this transformation."

Built in 1985, 200 Exchange Street was originally constructed as an operations center for Bank of Boston; due to its original use, the building currently has the power and redundancies necessary for data center tenants that are cost prohibitive to install on a speculative basis. Berkeley has already engaged Stantec to renovate the 4-story building, completing renovating the interior spaces and turning it into a mixed-use asset with street level retail, a state-of-the-art data center, and nearly 200,000 square feet of creative office space. The building is in Malden Center, directly across from the Malden Center T stop with service to and from downtown Boston in minutes.

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Midtown Manhattan Office Building Under Contract for $525M

New York City-based Thor Equities in under contract to sell 693 Fifth Avenue in Manhattan, a 20 floor office/retail building with Valentino's flagship store as its anchor, for $525 million, or nearly four times what the company paid for the property. While the buyer was not disclosed, sources told the Commercial Observer that it is a non-commercial developer. Joe Sitt of Thor Equities purchased the slender building for $142.5 million in 2010, beating out competitive bids from Vornado Realty Trust, SL Green Realty and watch retailer Swatch. Thor announced in March that it was seeking to sell several of its Fifth Avenue properties, including 590 Fifth Avenue and the retail portion of 530 Fifth Avenue, which it owns in a join venture with Scott Rechler’s RXR Realty and General Growth Properties.

Built in 1991, 693 Fifth Avenue in the Plaza District contains 97,500 square feet and was previously owned and occupied by Takashimaya, a Japanese department store company. After purchase, Thor Equities invested $5 million to renovate the former Takashimaya Building, including a redesigned façade and office tower lobby by the celebrated David Chipperfield Architects and lighting by Mario Nanni of Viabizzuno in Milan. Fashion house Valentino set a (then) city ground floor rent record when it signed a lease at the property for 19,600 square feet of retail space to serve as the company's NYC location for $3,000 per foot; the 6-story retail space was previously occupied by retailer Forever 21 via a series of short-term leases over three years.

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