One Channel Center Gets $170M Construction Loan

HFF announced that it had arranged a $170 million construction loan for One Channel Center in Boston, a new development by AREA Property Partners and Commonwealth Ventures in Boston's Seaport District. The HFF team led by managing director Anthony Cutone and director Porter Terry worked on behalf of AREA and Commonwealth to secure the construction loan according to a Boston Herald article.

"One Channel Center is an exciting and appropriate culmination of its investors' vision and dedication to establishing Channel Center as a vibrant commercial and residential neighborhood," said Cutone. "Combining top-notch sponsorship, a central urban location and premier tenancy, the project epitomizes successful urban development."

The property will feature an 11-story, 500,000 square foot Class A office building leased in its entirety to State Street Corporation, and an adjacent 960-space parking garage. One Channel Center will also include two new open space areas: the New Park and Iron Street Park. The New park will be approximately 72,000 square feet and will include a multi-use turf grass lawn area and an area for more passive recreational uses. Iron Street park will be approximately 9,000 square feet. The project broke ground this past summer and is slated for delivery in early 2014.

For more news and information visit Blumberg Capital Partners.

JV Picks Up $215M in Defaulted Debt

A joint venture led by Area Property Partners with McDowell Properties has acquired a portfolio of defaulted loans worth $215 million according to a CoStar report. The JV assumed the portfolio of defaulted loans secured by 17 apartment complexes with 4,733 units in four states. Seven properties are in Austin, Texas with three other properties in Dallas, two properties in Phoenix, three in Tulsa, Oklahoma and one each in Tampa and Jacksonville, Florida. The overall occupancy rate for the portfolio is 84%, providing strong upside potential when leased to market occupancy.

"The transaction represents the rare opportunity to acquire a portfolio of assets in this dynamic high growth market at an attractive discount to the current debt basis," said Steve Wolf of Area Property Partners. "The business plan calls for taking fee title to the assets and repositioning each asset, including exterior renovations, landscaping improvements, amenity upgrades, and interior renovations. These assets will be able to compete with newer complexes in their submarkets while offering a much stronger value within their rent levels."

"These assets are being acquired at substantial discounts to replacement cost while multifamily fundamentals continue to improve. Under new ownership, we will implement a focused renovation plan combined with intensive asset management to maximize the value of the assets," said Patrick McDowell, president of McDowell Properties.

For more news and information visit Blumberg Capital Partners.

WRIT Sells DC Area Portfolio for $350M

Washington Real Estate Investment Trust (WRIT), the oldest publicly traded REIT in the country, has entered into several contracts with a single buyer to sell off its entire industrial portfolio along with two office properties. The $350 million portfolio, totalling roughly 3.1 million square feet, was picked up by AP AG Portfolio LLC, a partnership led by AREA Property Partners Value Enhancement Fund VII LP and Adler Group Inc. according to a CoStar report.

The contracts consist of five separate purchase and sale agreements, each covering one or more separate assets. Three of the contracts (which aggregate to $235.7 million of assets) are expected to close on or about September 1, 2011. An additional contract (representing $44.6 million of assets) is expected to close on or about October 3, 2011. The final contract (representing $69.7 million of assets) is expected to close on or about November 1, 2011.

"In initiating these sale transactions, WRIT has taken a major step towards executing on a strategic goal we set for ourselves at the beginning of the year. Having our industrial portfolio under these contracts enables us to focus our attention on redeploying expected sales proceeds in assets that better fit our long term strategy of acquiring properties inside the Beltway, near major transportation nodes and in areas with strong employment drivers and superior growth demographics," said George F. "Skip" McKenzie, President and CEO of WRIT.

For more news and information visit Blumberg Capital Partners.

Pittsburgh's Tallest Office Tower Sold for $250M

The U.S. Steel Tower, a Pittsburgh landmark and tallest building, traded hands this week for $250 million as Area Property Partners sold the property to a New York-based investment group according to a Daily Mail article. Area Property Partners originally acquired the property in 1999 when they bought part of a $265 million mortgage held by GE Capital. Peter Braverman, a shareholder in the buildings' managers Winthrop Management, said that the current building management will stay in place after the transition. "Every new owner tries to improve a building and provide better services, but there are no dramatic plans at this point," Braverman said.

The 64-story building at 600 Grant Street, completed in 1970 and built by U.S. Steel, is 92% occupied with major tenants including the University of Pittsburgh Medical Center, U.S. Steel Corp., and PNC Bank. "We could get to 100 percent (occupation), based on the expansion of UPMC," said Mark Karasick, a principal in the new ownership group. UPMC's renovation of executive and administrative offices at the tower won LEED-Silver certification for energy conservation and environmental design.

For more news and information visit Blumberg Capital Partners.

NorthPark Central Tower Sold for $64.4M

AREA Property Partners sold the Northpark Central office building in Dallas, TX for $64.4 million last week according to a Dallas Morning News article. Cornerstone Real Estate Advisors purchased the 491,083 square foot office building at 8750 N. Central Expressway; Transwestern was selected to lease and manage the property. AREA originally purchased the property through one of its funds from Connecticut General Life in 1996 for $53.8 million.

The 20-story mirrored-glass office tower is roughly 90% leased with major tenants including The Richards Group, Gilsa Products and CF & Co. The building was awarded an Energy Star label in 1999, 2002, 2003 and 2009 for its operating efficiency. The sale also included a six-story, 700-space parking garage that is directly adjacent to the property according to a CoStar report.

For more news and information visit Blumberg Capital Partners.