CBRE Picks Up Pasadena Towers for $257M

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

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

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

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

For more news and information visit Blumberg Partners.

Boca East Investments Buys Compson Financial Center for $10.15M

Boca East Investments LLC, managed by Charles D. Deyo of Boca Raton, has purchased the Compson Financial Center for $10.15 million, a pricepoint at a 45% discount to its foreclosed mortgage. A commercial mortgage-backed securities (CMBS) trust seized the building in 2012 after foreclosing on an $18.4 million mortgage held by 980 North Federal LLC. In 2009, Marc Osheroff & Associates Inc. acquired the office building from Stuart Gilbert Realty Co. for $20 million, or about $213 per square foot. According to a South Florida Business Journal article, Bank of America provided a $12.75 million mortgage to the buyer, who started interior renovations to the building.

Built in 1986 by Compson Associates, the Compson Financial Center at 980 North Federal Hwy features an expansive and bright 4 story atrium, three elevators and covered garage parking. The property includes 99,983 square feet of office space and a 46,464-square-foot parking garage.

For more news and information visit Blumberg Capital Partners.

Construction Begins on $260M Runway in Playa Vista

Construction began this week on the long-anticipated lifestyle center that will soon connect the Phase I residential community and the Campus at Playa Vista. A development team led by Lincoln Property Co., Phoenix Property Co. and Paragon Commercial Group spearhead the $260-million shopping and apartment project called Runway, which is intended to be the commercial and social heart of the planned mixed-use community that has been under construction for more than a decade on land south of Marina del Rey, once controlled by aviation mogul Howard Hughes.

"This project has been a long time coming, so we are excited to be moving to the next stage in the development process and to be that much closer to injecting more energy into this already vibrant community," said David Binswanger, Executive Vice President of Lincoln Property Company. "We want Runway to be at the forefront of everything new in the worlds of fashion, art, design and technology and to be a real center of the community where people come to shop, eat, and to just relax."

"We are pleased to see such early interest from a great group of top national retailers. The fact that we are signing best-in-class tenants in every category we are pursuing is a testament to our vision for Runway," said Mark Harrigian, Principal of Paragon Commercial Group. "When complete, Runway will be brimming with chef-driven restaurants and a unique mix of retailers offering anything from upscale couture to California lifestyle and beach-chic fashions."

Aided by a new $150 million construction loan through a syndicate of banks led by Bank of America, the newly begun project will include 221,000 square feet of retail, 420 apartments and 35,000 square feet of office space spread across three separate buildings. Whole Foods has already committed to move into a 35,755 square-foot space adjacent to McConnell Avenue, on the retail center's ground level. Down the street, the Cinemark multiplex at Runway will feature nine screens in over 46,000 square feet and the company's NextGen design concept with RealD 3D capability, self-serve concession stands and an open plaza with a cocktail lounge. Shoppers can also expect to find a CVS Pharmacy, Veggie Grill and a national bank branch at Runway.

For more news and information visit Blumberg Capital Partners.

HFF Arranges $230M in Financing for Bascom Group

The Bascom Group, an Irvine, CA-based private equity firm, has received $230 million in financing for The Breakers Resort in Denver. HFF's Charles Halladay, Mark Erland, Josh Simon, Jordan Robbins and Lee Redmond negotiated the transaction, which includes a $165 million first mortgage, a $26.25 million mezzanine loan and $38.75 million in preferred equity. The $165 million first mortgage was a floating-rate loan and included a three-year term with two, one-year extension options that was provided through Bank of America and CIBC. The mezzanine loan and preferred equity were provided by Prudential Real Estate Investors' $805 million U.S. Real Estate Debt Fund.

"Bascom was able to access mezzanine and preferred equity capital available in today's market and obtain financing on The Breakers Resort by adding an additional parcel of developable land as collateral, resulting in a blended cost of capital of less than 5.0% and a combined debt yield of 6.25%," said Mark Erland.

"The overall structure limited the mezzanine financing, making it necessary to fund the remaining portion with preferred equity. The Bank of America, CIBC and Prudential lending teams did an outstanding job of closing the loan in less than 30 days, including negotiating an intercreditor," added Halladay.

Situated on 127 acres and developed by Koelbel and Company, which will retain an ownership interest, The Breakers Resort is located at 9099 East Mississippi Avenue close to Cherry Creek, the Lowry Redevelopment and a new community shopping center. The "strongly-performing" property is 95% leased and is comprised of six interconnected communities, each with their own clubhouse, surrounding a 55-acre recreational lake.

For more news and information visit Blumberg Capital Partners.

Bracebridge Sells Hallmark Center for $105M

Bracebridge Corporation, a real estate entity of MBNA Corporation before MBNA'S merger with Bank of America, sold the Hallmark Center in Addison, TX to Select Income REIT for $105 million, or $190 per square foot, this month. Bracebridge, an operating subsidiary of Bank of America, sold the property in a sale-leaseback deal with Newton, MA-based Select Income, which owns 260 properties primarily net leased to single tenants. Select Income funded the purchase using cash on hand and borrowings under it's revolving credit facility, according to a CoStar report. Terms of the deal were not disclosed, and any broker involvement is unknown.

Hallmark Center at 16001 Dallas Parkway in Addison features two buildings: Hallmark Center I, delivered in 1977, is a two-story office building with 280,799 square feet. Designed by Corgan Associates Inc., the adjacent three-story Hallmark Center II was delivered in 1997 and features 280,799 square feet. Bank of America fully occupies the two buildings.

For more news and information visit Blumberg Capital Partners.

Berkeley Buys Chicago Office Building for $97M

Berkeley Properties, a Brooklyn, New York-based commercial real estate investor, purchased the 23-story office tower at 231 South LaSalle in Chicago for $97 million this week. The Class A building was sold by a joint venture between Gramercy Capital and Garrison Investment Group with representation from Jeff Bramson, Jaime Fink and Mark Katz, of HFF.

The 1.03 million square foot office and retail building was 96.6% leased at the time of sale, with major tenants including Bank of America and Northern Trust Co., according to a CoStar Group report.

231 South LaSalle, also known as the Bank of America Building, was originally built in 1924 (after the Goodyear dirigible crashed into the Illinois Trust and Savings Building at the same location) as the Illinois Merchants Bank Building and was designed by Graham, Anderson, Probst & White. The property underwent major renovations and restorations in 1996 with architectural direction from Chicago-based Goettsch Partners. Encircling the banking hall above the pillars is a frieze by Jules Guerin titled "A Testimonial to World Trade". It depicts symbolic figures representing different nations, with the World Columbian Exposition as a background. On 11 October 1883, at the Grand Pacific Hotel on the site of this building, the four time zones of the continental United States were formally adopted at a meeting of railroad industry leaders.

For more news and information visit Blumberg Capital Partners.

Westcore Secures $70M in Financing for California Properties

Westcore Properties, a San Diego-based owner and operator of institutional industrial and office properties, announced that it had secured $70 million in permanent financing for four recently purchased properties in California. According to a San Diego Business Journal article, terms of the deal were not disclosed, though a company statement said financing packages were arranged through Bank of America, Wells Fargo and U.S. Bank.

According to Don Ankeny, Westcore Properties' president and CEO, "The acquisition and immediate financing of these projects totaling almost 1 million square feet is a significant accomplishment for our company which is aggressively working to double in size over the next 12 months."

The financed projects, totaling nearly 1 million square feet, included Central Plaza, a three-building, 150,000-square-foot industrial project in Union City that was acquired for $13 million; Westlake Center, a 45,000-square-foot office building in Encinitas purchased for $6.8 million; Salt Lake Industrial Park, a 132,000-square-foot project in City of Industry purchased by Westcore in a short sale for $9.5 million; and Kato Industrial Park, a 625,000-square-foot, four-building industrial park in Fremont that was just purchased for $45.6 million.

For more news and information visit Blumberg Capital Partners.

BH Properties Sells Sunset Corridor Office Buildings for $6.9M

Los Angeles-based BH Properties, a real estate investment firm, has sold two Hillsboro, Oregon office and technology buildings known as Technology Center One and Two, totaling 95,000 square feet, for $6.9 million. According to an OregonLive.com article, BH Properties purchased the buildings in 2007 for $8 million. Hawaii-based Watumull Properties Corp. bought the properties, though terms of the deal were not disclosed. Keith Young, senior vice president at Kidder Mathews, represented both the buyer and the seller in the transaction.

Near the Intel Corp. campus, Tech Center One and Two are located at 7431 & 7451 NW Evergreen in Hillsboro. The property, constructed in 1985 with an addition in 1993, is occupied by a single tenant, Bank of America. "This is an impeccably constructed and maintained property, positioned in an economically diverse community, in proximity to a major metropolitan market, meeting Watumull's criteria for investment-grade properties," said Cliff Finnell of Kidder Mathews. "This building is highly desired by a wide variety of tenants, and will only increase in value over the next few years."

For more news and information visit Blumberg Capital Partners.

100 Federal Street in Boston Sold for $615M

Boston Properties Inc. announced this week that it had completed the acquisition of 100 Federal Street in Boston, MA for $615 million from an affiliate of Bank of America, N.A. Despite the sale, according to a Boston Business Journal article, the bank's Boston headquarters will remain at 100 Federal. The lender has signed a long-term lease for 787,000 square feet of space.

100 Federal Street is a 37-story, 1,305,000 square foot Class A office tower located in the heart of Boston's Financial District and was reportedly 93% leased at the time of sale. Situated on Federal Street and bounded by Franklin, Congress and Matthews Streets, 100 Federal Street occupies an entire two-acre city block. Designed by Campbell, Aldrich & Nulty, the tower features an expansive window line that affords breathtaking panoramic views of the Financial District, the waterfront and Boston Harbor, the Charles River and the Cambridge skyline.

For more news and information visit Blumberg Capital Partners.

Bank of America Considers Dumping Office Buildings

A new Bloomberg News article reveals that Bank of America is considering the sale of all of its office properties, except for its principle offices in New York and Charlotte, to raise capital and cut costs. Kelli Raulerson, a spokeswoman for Bank of America Corp., said that they "are currently reviewing all of our properties across our portfolio." Bloomberg notes that Bank of America owned or leased about 120 million square feet in 26,910 locations at the end of 2010, mostly in the U.S., according to its last annual report.

According to a San Francisco Business Times article, Bank of America CEO Brian Moynihan has been selling off non-core assets in something of an industry yard sale and raised $5 billion in a pricey deal last summer with Warren Buffett's Berkshire Hathaway. The press also reports that Bank of America has already planned leasebacks at three sites: the Fifth Third Center and the Hearst Tower in Charlotte and at 222 Broadway in Manhattan, Reuters reported. The company is also reviewing whether to sell its building at 100 Federal St. in Boston, the Boston Globe reported.

For more news and information visit Blumberg Capital Partners.

One57 Tower Gets $700M Loan

Extell Development Co. closed a $700 million construction loan from Bank of America-led syndicate consisting of funds from Bank of America, Banco Santander S.A., Abu Dhabi International Bank, Capital One and the Bank of Nova Scotia for its massive mixed-use development at 157 West 57th Street, One57 Tower. According to a CoStar report, Bank of America will serve as administrative agent for the loan financing a portion of the project.

"It's a significant commitment from a major lender," said a spokesperson. "It shows the confidence [Bank of America] has in this development."

One57 is a new 90-story condo tower project that began selling units earlier this month; Extell is asking up to $4,000 per square foot for one-bedrooms; up to $4,150 per square foot for two bedrooms; up to $6,580 per square foot for three bedrooms; and up to $8,413 per square foot for four bedrooms, according to a copy of the Schedule A provided to The Real Deal.

For more news and information visit Blumberg Capital Partners.

Bank of America Sells $880M CRE Loan Portfolio

Bank of America has agreed to sell a portfolio of commercial mortgages valued at roughly $800 million to a group of investors reported the Wall Street Journal. A venture of Square Mile Capital Management LLC , Invesco Ltd. and a fund managed by Canyon Capital Realty Advisors LLC is buying the portfolio, a mix of performing and nonperforming loans tied to 32 properties, at a discount of 20-25% off the face value. The loans in the portfolio are backed by buildings in 12 states, and reportedly about three-quarters of them are performing.

The deal is among the largest commercial mortgage portfolio sales of the year, coming as many banks continue to shed loans made during the market's peak reported the WSJ. The eight-story Renaissance Centre office building at 405 N. King Street in Wilmington, Delaware, and the Bank of America Tower in St. Louis are both included in the portfolio. The article also notes that this sale follows others that have Bank of America dropping assets that aren't part of its core businessnes; the bank recently sold an $8,6 billion Canadian credit card portfolio, a $8.3 bllion stake in China Construction Bank Corp. and a $1.5 billion stake in HCA Holdings Inc.

For more news and information visit Blumberg Capital Partners.