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.