Normandy Buys National Press Club Building for $155.5M

Morristown, New Jersey-based Normandy Real Estate Partners, a real estate investment and management firm, has purchased the iconic National Press Building in Washington, DC for $155.5 million, or nearly $317 per square foot. The 14-story building was sold by a venture between AEW Capital Management and Quadrangle Development Corp. which paid $167.5 million, or roughly $400 per square foot, for the property in June 2011.

Built in 1927-1928 for the National Press Club on the site of the Ebbitt Hotel and renovated in both 1985 and 2004, the National Press Club building at 529 14th St NW includes 468,251 gross square feet in Washington's East End submarket. The AEW-Quadrangle team retained what was then Cassidy Turley — now Cushman & Wakefield — in the summer of 2014 to seek buyers for the building, which at the time was assessed at $237.5 million.

"We are very excited about the acquisition of the National Press Building and our increasing level of acquisition activity across the Washington, D.C. region. We look forward to launching a program of targeted capital improvements to this iconic building in order to drive leasing activity and to take full advantage of the improving fundamentals we are seeing in the Washington, D.C. market," said Jeff Gronning, a Founder and Partner of Normandy Real Estate Partners, in a press release.

The National Press Club still makes its home on the two highest floors of the 14-story office and retail tower, with a mix of other tenants including American Physical Society, Office of Transition Initiatives (OTI), the American Council for an Energy-Efficient Economy (ACEEE), Marshalls, and Nine West. The property is located just blocks from major Federal buildings, some of the nation' s largest firms and associations, and is mass-transit oriented via Metro Center metro station. The building is also one of a very rare few in the U.S. that boasts its own ZIP code: 20045.

For more news and information visit Blumberg Partners.

Unico Buys 1.5M SF CO Office Portfolio

The W. W. Reynolds Companies, Inc., a Boulder, CO-based commercial real estate development, leasing and professional property management firm, has unloaded a sizable office portfolio this week as Unico Properties LLC purchased an approximately 1.5 million-square-foot block of properties. The Seattle-based real estate investor purchased the portfolio for an undisclosed sum in a deal brokered by CBRE. Unico purchased the Boulder portfolio in partnership with AEW Capital Management, a global real estate investment advisor. AEW acquired the property on behalf of AEW Partners VII, the seventh in the firm's series of opportunistic real estate funds, according to a GlobeSt.com article.

"Timing and the strength of the real estate market in Boulder and Fort Collins made this opportunity to sell a portion of my portfolio possible," said BIll Reynolds, president of W.W. Reynolds. "Having personally developed all of the properties included in this sale, it was important to me that my company stay involved going forward. To do this, we are partnering with Unico and will continue to manage and lease these properties as we have done since their inception."

The deal includes a 1,013,443 square-foot portfolio in Boulder and a 507,005-square-foot portfolio in Fort Collins. The Boulder portfolio is comprised of 27 buildings located in four of Boulder's premier office parks: Pearl East Business Park, Tierra Business Centre, Flatiron Business Center, and Highpoint Business Park. Shortly after closing, Unico sold the Fort Collins portfolio to Prospect Development Partners, LLC.

"This transaction, at approximately 1.5 million square feet, represents the largest real estate transaction by square footage this cycle and it elevates Unico's position in the market as one of the largest office landlords in the Front Range," added Geoff Baukol, senior vice president of institutional properties for CBRE Group Inc.'s capital markets division.

For more news and information visit Blumberg Capital Partners.

550 Biltmore in Coral Gables Sold for $50M

The multi-tenant office and mixed-used project at 550 Biltmore in Coral Gables, Florida sold this month as a Prudential Real Estate Investors affiliate listed as PR 550 Biltmore Way purchased the property for $50.2 million. The trophy property was sold by KPERS Realty Holding #39, which is managed by Boston-based AEW Capital Management, in a deal brokered by CBRE. Terms of the deal were not disclosed. The building last sold in 2004 for $35.8 million.

"While Coral Gables always draws significant investor interest, 550 Biltmore surpassed the norm," said Christian Lee, vice chairman of CBRE. "We believe that is attributable to factors including: the high quality of the building itself, an increased demand by both domestic and off-shore capital for trophy properties and an overall improvement in the office market fundamentals."

"550 Biltmore's iconic, pyramid-shaped design affords its tenants with a plethora of outdoor terraces from which to enjoy the sublime Coral Gables cityscape of world-class golf courses, historical Mediterranean revival buildings, magnificent fountained plazas, a vibrant commercial core, and a lush and verdant landscape that crystallizes the ‘City Beautiful' movement that drove the City's design and incorporation nearly 100 years ago," added José Lobón, CBRE Senior Associate.

Originally constructed in 1986 by Miami developer Al Sakolsky, 550 Biltmore is a 160,000-square-foot, 14-story pyramidal landmark in downtown Coral Gables with a facade of imported Italian travertine marble and black granite. The building has been awarded multiple Energy Star labels for operating efficiencies, with a current Energy Star rating of "94", owed in part to the $4 million in capital improvements made since 2004. At the time of sale, the property was 86.4% leased and is anchored by UBS, which occupies more than 40,000 square feet and has entered a long-term lease expansion.

For more news and information visit Blumberg Capital Partners.

Red Tail Buys DFW Industrial Portfolio

Red Tail Acquisitions (RTA), a Newport Beach, CA-based real estate investor that targets properties that normally have leasing or construction issues, has purchased a six-property, 16-building industrial portfolio in the Dallas-Fort Worth area from AEW Capital Management. HFF marketed the property on behalf of the seller; the purchase price or terms of the sale were not disclosed by any parties.

"This acquisition not only represents an exciting opportunity for Red Tail Acquisitions to expand its DFW holdings, but is also a prime example of the types of investments we hope to make throughout Texas," said Sean Miller, Executive Vice President at Red Tail, in a press release. "RTA would like to thank AEW and HFF, who were great transaction partners."

The portfolio includes 1360-1420 Presidential Drive and 850-890 North Dorothy Drive in Richardson, Texas, plus 1420 Halsey Way, 1406 Halsey Way, 2122 Country Club Drive and 2855 Trinity Square Drive in Carrolton, Texas. The portfolio was 87% leased at the time of sale to 41 tenants, including NOW Specialties, Optex Systems, Laboratory Corporations of America, CircuitCo Electronics, Advanced Environmental Concepts, Milestone Construction, TraStar, Inc. and Gym Ratz Basketball Club.

For more news and information visit Blumberg Capital Partners.

AEW Capital Becomes Major Stakeholder at Heritage Plaza

Brookfield Office Properties Inc. announced this week that it had sold a 90% interest in Heritage Plaza, the 5th tallest building in Houston with 1,150,000 square feet of leasable space, to AEW Capital Management. AEW acquired a 41% stake in the building from Brookfield for $118 million, with the remaining 49% coming from an affiliate, according to a GlobalPost article. Brookfield acquired Heritage Plaza in December 2010 in a deal that valued the building at $286 per leasable square foot.

"This transaction aligns with Brookfield's strategy of creating value in an asset through proactive leasing and asset management and then extracting proceeds for use in other endeavors, such as our various development and redevelopment initiatives," said Dennis Friedrich, chief executive officer of Brookfield Office Properties.

"Led by the energy sector, Houston has consistently been one of the fastest growing metro areas in the nation," said Dan Bradley, portfolio manager for the AEW Core Property Trust. "Rapid job growth and expanding business activity have supported very strong demand for office space and we believe this investment capitalizes on these trends."

Heritage Plaza at 1111 Bagby Street is a Class AA office complex that is currently 98.4% leased, up from 84% leased when Brookfield took control of the building. Situated on the western perimeter of downtown Houston, tenant amenities include ample on-site parking and a fitness center.

For more news and information visit Blumberg Capital Partners.

Pearl Highlands Center Sold for $141.5M

A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc., Hawaii's fourth largest private landowner, announced this month that is had closed on the purchase of Pearl Highlands Center in West Oahu, Hawaii. A&B bought the 415,000 square foot center from an affiliate of Boston-based real estate investment firm AEW Capital Management. The purchase price includes assumption of a $59.3 million mortgage note, while the balance will be funded by the future sales of commercial properties from the company’s Mainland portfolio and Hawaii land parcels, according to a Pacific Business Journal article.

"The Pearl Highlands acquisition significantly advances the strategic migration of our commercial portfolio back to Hawaii," said Christopher Benjamin, A&B's president & chief operating officer. "The addition of Pearl Highlands increases our total Hawaii commercial portfolio square footage by 25% to exceed 2 million square feet and makes A&B the second largest owner/operator of retail properties in the state by gross leasable area."

Located on the busy Kamehameha Highway and directly across from Hawaii's newest Home Depot, the Pearl Highlands Center is the sixth largest in the state, with major tenants including 24 Hr. Fitness, Sam's Club, Regal Cinemas, Ross Dress for Less, Pier 1 imports, Pictures Plus, Buffalo Wild Wings, Price Busters and FedEx Office.

For more news and information visit Blumberg Capital Partners.

Bixby Sells Silicon Valley Office Campus to AEW Capital

3111-3141 Coronado Drive Associates, LLC, a joint venture between Bixby Land Company and JP Morgan, announced this week that it had sold an office campus in Santa Clara, California to AEW Capital Management at an undisclosed price. Terms of the deal were not disclosed, though AEW did indicate that both buyer and seller were self-represented in the transaction. AEW acquired the two building campus on behalf of one of its institutional clients.

"This is an opportune time to realize our investment objective following the successful renovation and leasing of the project, said Bill Halford, president and CEO of Bixby Land Company, in a statement. "We set out to create a compelling work environment with the image and high quality amenities sought by today’s companies."

The campus at 3111-3141 Coronado Drive was renovated in 2012, a contemporary redesign that garnered the 2012 Structures Award as Best Reuse/Rehab Project in Silicon Valley by Silicon Valley Business Journal. The 127,000 square-foot campus is 100% leased to Santa Clara-based Infoblox, an eight-year, $25 million deal signed last June.

For more news and information visit Blumberg Capital Partners.

Prudential Provides $425M in Financing for Office Towers

Prudential Mortgage Capital Company announced this week that it had provided $425 million in financing for two office towers in Chicago and Seattle. The John Buck Company received a $300 million loan for 155 North Wacker in Chicago. The 10-year fixed-rate loan is being used to refinance the 1.15 million square foot tower in the West Loop submarket. In Seattle, AEW Capital Management received a $125 million 12-year loan to refinance West 8th Street, a 498,893 square foot Class A office tower.

"Although the office sector has been slow to recover, high-quality transactions such as these have continued, particularly in major markets," said Thomas Goodsite, a managing director with Prudential Mortgage Capital Company's Atlanta office who led the transactions. "We expect to do more of these types of deals as the economy continues to recover, and this sector will play a key role in helping us achieve our 2013 originations goals."

For more news and information visit Blumberg Capital Partners.

Urdang Buys Boston's Two Liberty Square

Investors Warranty of America, an affiliate of AEGON USA Realty Advisors, has sold Two Liberty Square in Boston for $17.56 million to Urdang, a real estate investment specialist for BNY Mellon Investment Management. A joint venture of AEW Capital Management and Neelon Properties paid $23 million for the property in July 2007 after obtaining a $15 million loan from Transamerica Financial Life Co., a subsidiary of Aegon. Aegon took the property back in December 2010, the site reports. Jones Lang LaSalle listed the property for sale in September on behalf of Aegon USA Realty Advisors and handled the sale, according to a Boston Business Journal article.

"As expected, Two Liberty Square attracted significant investor interest from local operators to pension fund advisors and a wide range of institutional capital," said Frank Petz, a managing director at Jones Lang LaSalle, in a statement. "Boston has become a favorite market for foreign investors looking to invest in well-located, quality real estate."

The 11-story, 64,357-square-foot jewel office building was originally built in 1913 and was substantially renovated in 1996 and 1997. The building was 81% leased at the time of sale to nine tenants. Two Liberty Square has signed 40,406 square feet of new leases in the past 16 months. Located off Post Office Square on the corner of Milk and Kilby St, Two Liberty Square is within a 5 minute walk to all major T stops.

For more news and information visit Blumberg Capital Partners.

Denver's 1660 Wynkoop Sold for $26.6M

1660 Wynkoop, located in the Lower Downtown Historic District (LoDo), traded hands this month as Boston-based AEW Capital Management bought the building from Legacy Partners for $26.6 million, or $405 per square foot. Cushman & Wakefield of Colorado Inc. represented Legacy Partners in the transaction; the terms of the sale were not disclosed.

1660 Wynkoop, built in 1983, is an 11-story, 65,715 square-foot office building featuring a brick-clad exterior and spectacular Rocky Mountain views. The property was 90% leased at the time of purchase according to a Denver Business Journal article. "This sale was driven by tenant demand," Mike Winn, vice chairman of Cushman & Wakefield of Colorado Inc. said. "That's where tenants want to be, so investors are buying where they think there will be demand and ultimately rent growth to reward their investment."

For more news and information visit Blumberg Capital Partners.

AEW Acquires $340M Flagler Station Industrial Portfolio

AEW Capital Management, on behalf of AEW Core Property Trust, the firm's core real estate fund, has completed the purchase of Flagler's 4.2 million-square-foot Flagler Station for $340 million, or $81 a square foot, according to the Miami Herald. Flagler Station is South Florida's largest business park, located in Miami-Dade County's prolific industrial Airport West submarket and totaling 33 buildings. The complex is home to tenants including Ryder Systems, Lagasse, FedEx and Brightstar. Under the terms of the deal, Flagler, which is owned by Fortress Investment Group, will retain management and leasing duties on the property for three more years.

"Given the performance of Miami's industrial market over the last 12 months, we were certain that a Class-A portfolio with such critical mass would garner serious interest from institutional investors," said Vincent Signorello, President of Flagler.

"AEW has a long history of investing in Southeast Florida, and this latest acquisition illustrates our belief in the strength of the Miami/Medley market, which services the Port of Miami, Miami International Airport and Port Everglades," said Dan Bradley, Senior Portfolio Manager for the AEW Core Property Trust.

For more news and information visit Blumberg Capital Partners.

AEW Picks Up One Exeter Plaza for $112M

AEW Capital Management announced another acquisition this week with the purchase of One Exeter Plaza in Boston's Back Bay on behalf of AEW Core Property Trust, an open-end real estate fund, for $112 million. AEW bought the 15-story office building from Ruben Companies; Cushman & Wakefield represented the seller and procured the buyer.

"One Exeter Plaza has been a jewel in our company's portfolio since we developed the building in 1984. We are pleased that the building will continue to be owned and managed by a premier owner such as AEW," said Richard Ruben, CEO of Ruben Companies.

According to a Boston Business Journal article, the 211,351-square-foot Class A office property on Boylston Street was developed by Ruben Companies in 1984 and features 192,201 square feet of first-class office space as well as 19,150 square feet of prime retail space along one of the city’s busiest shopping districts. The property was 85% leased at the time of purchase with major tenants including Cornerstone Research, Riverside Partners, International Data Group, Wells Fargo/Wachovia, Bank of America and Morton's Restaurant.

For more news and information visit Blumberg Capital Partners.

2050 Main in Irvine Sold for $108.5M

AEW Capital Management announced that is had purchased the 13-story office building at 2050 Main Street in Irvine, CA for $108.5 million, or roughly $345 per square foot, according to a CoStar report. AEW bought the property on behalf of one of its institutional clients from a joint venture of Westbrook Partners, Walton Street Capital and Greenlaw Partners. AEW was self-represented in the transaction while the seller was represented by Eastdil Secured.

"We are very pleased with the acquisition of 2050 Main St.," said Daniel Bradley, AEW director, in a statement. "It is considered a high-quality trophy property in a premier location with high tenant demand. In addition, its pending LEED Gold Certification will help solidify the property's top-tier status."

The 315,000 square foot office building was built in 2007 and was reportedly 80% leased at the time of sale. 2050 Main Street is part of the Irvine Concourse Corporate Center, a development comprised of 10 office towers, hotels, a health club and three restaurants, in the Orange County John Wayne Airport submarket.

For more news and information visit Blumberg Capital Partners.

MillerCoors HQ Sold for $91M

250 S. Wacker Drive in Chicago, IL sold for $91 million before the close of the year as Credit Suisse Asset Management, a unit of Credit Suisse Group, takes ownership from Boston-based AEW Capital Management. AEW originally purchased the property in 2007 for $57 million after it underwent a $40 million renovation.

CBRE began shopping the property in November of this year noting that the property is more than 93% leased to mostly long-term tenants, including MillerCoors with a lease of 167,256 square feet of office space covering 8 full floors of the building through 2024. Michael Vesper and Thomas McClayton of CBRE represented the seller, while Benjamin and Debra Lacy of Lacy Ltd. represented the buyer according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

First Potomac, AEW Acquire DC Office Building for $65M

First Potomac Realty Trust and AEW Capital Management entered into a 50/50 joint venture to acquire 1750 H Street, NW, in Washington, D.C. for $65 million. National Treasury Employee's Union sold the mult-story Class A office building in a deal that was contingent on the buyers assuming a $31.4 million loan from the seller.

"It fits well into our long-term business plan to grow our presence in the downtown D.C. market, increase the number of office buildings we own, and continue our focus on high-quality properties," said Douglas Donatelli, chairman and CEO of First Potomac in a Washington Business Journal article. 1750 H Street, NW is a 10-story 111,000-square-foot office building located approximately three blocks from the White House in Washington, D.C.'s central business district. The building is 100 percent leased to six tenants, including 46,900 square feet on the top four floors that is leased back to the seller, the National Treasury Employee's Union (NTEU) for a ten-year term.

For more news and information visit Blumberg Capital Partners.