Meridian Picks Up International Place for $107M

Bethesda, MD-based Meridian Group has purchased International Place, a 12-story office building in Rosslyn, Virginia from Beacon Capital Partners, which paid $99 million for the property in 2007. According to a Commercial Real Estate direct report, Meridian purchased the building for $106.5 million, or $362.80 per square foot, in a sale that was brokered by Cushman & Wakefield. CBRE's Malcolm Schweiker and Erik McLaughlin handled leasing prior to the sale; Meridian did not disclose future leasing plans, but did indicate it would continue property improvements.

"International Place is in an ideal location at the base of Central Place, now under construction, so it's primed for positive growth," Gary Block, managing director and partner of The Meridian Group, said in a statement. "We are pleased that we were able to acquire an asset with such exceptional potential."

"International Place is strategically located in the heart of the dynamic Rosslyn market," said Bill Collins, Cushman & Wakefield Vice Chairman. "Rosslyn is quickly transforming itself into a world class city with the delivery of Central Place across the street and the coattails of additional retail and residential development that will follow."

"This area is quickly evolving into a vibrant downtown," added Bruce Lane, executive vice president and co-founder of The Meridian Group. "It's an incredible transformation, and we're excited to be a part of it. [...] We have plans for a number of other improvements, including upgrades to the building's lobby and other common areas."

The 12-story office building at 1735 Lynn Street underwent a $4.4 million round of improvements under Beacon, including the addition of a fitness center and conference center, and is LEED Gold and ENERGY STAR certified. Meridian said it plans to upgrade the building, which sits across the street from the Rosslyn Metro station, to improve the lobby and other common areas. Meridian's Gary Block said that the 90% occupied asset is an "older, Class B building" in an "A-plus location."

For more news and information visit Blumberg Partners.

Ivanhoé/Callahan Buy Out Beacon at 1211 Avenue of the Americas

Ivanhoé Cambridge and its partner, Callahan Capital Properties, announced this week that it has acquired the 49% interest in 1211 Avenue of the Americas in Midtown New York City that it didn't already own from Beacon Capital Partners in a deal that valued the property at roughly $1.8 billion. Ivanhoé Cambridge and Callahan Capital Properties originally acquired a 51% stake in the office tower in October 2013 for $580 million. The deal was brokered by Eastdil Secured; terms were not disclosed.

"We are very pleased with the completion of our phased investment strategy for 1211 Avenue of the America," said Arthur Lloyd, Executive Vice President at Ivanhoé Cambridge. "This is a truly iconic property with exceptional locational and physical characteristics that offer tremendous value enhancement opportunities."

"1211 Avenue of the Americas is a significant asset in our 5.6-million-square-foot New York office portfolio and exemplifies our long-term approach towards owning quality assets in Midtown Manhattan," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "With unparalleled transportation options and the largest concentration of retail, dining and cultural amenities Manhattan has to offer, Midtown continues to be among the most dynamic markets in which to live, work and play."

Built in 1973 and also known as the News Corp. Building, 1211 Avenue of the Americas is a 44-story, two-million-square-foot office tower that prominently stands among a row of skyscrapers known as "Corporate Row." The 45 story, Class A trophy building is centrally located on Avenue of the Americas between 47th and 48th streets, with direct access to the Rockefeller Center Concourse amenities and subway. The building is certified LEED® Silver and is also winner of the renowned BOMA 2008/2009 Operating Office Building of the Year Award and the BOMA 2010 Middle Atlantic regional Building of the Year Award. The property was 92% leased at the time of sale, with major tenants including Fox News, News Corp, Wells Fargo Advisors, and the headquarters of Dow Jones.

For more news and information visit Blumberg Partners.

Bellevue's Sunset North Sold for $155M

M-M Properties, in partnership with a large unnamed institutional investor, has completed the acquisition of a three-building, 464,000 square foot office campus in Bellevue, Washington for $155.3 million. The property, known as Sunset North, was sold by a fund managed by Beacon Capital Partners; Beacon originally acquired the property in 2007 as part of a $6.35 billion, 39 property portfolio from Blackstone Group. The deal includes the three buildings at at 3120-3180 139th Ave. S.E., a parking lot and two adjacent vacant lots, according to property records. CBRE's Institutional Properties team represent the seller in the transaction with assistance from the Broderick Group. Terms of the deal were not disclosed.

"We are excited to add Sunset North to our expanding institutional investment portfolio," said Ken Moczulski, CEO of M-M Properties. "Following our October 2015 acquisition of the Sawgrass Centre office portfolio in Fort Lauderdale, the acquisition of Sunset North continues our geographic diversification into high-quality institutional assets."

"Sunset North is among the highest-quality office properties in Bellevue's I-90 corridor," added Tom Pehl, a senior vice president with CBRE Capital Markets. "The complex's unobstructed views of the downtown Seattle skyline and Olympic Mountains and easy access to downtown Bellevue and downtown Seattle have attracted an impressive mix of tenants."

Built in 1999-2000, Sunset North was developed jointly by Wright Runstad & Company and Equity Office Properties Trust. Wright Runstad started the 83-acre Sunset Corporate Campus, which includes Sunset North and three other buildings, in 1990 with Obayashi America Corp. as its financial partner. Obayashi later purchased Wright Runstad's interest in other sections of the campus, but Wright Runstad retained rights for the remaining three building sites, partnering with Equity Office when development began in 1998. The office park was designed by the award-winning firm of Zimmer Gunsul Frasca and features polished Canadian Gold granite, a state-of-the-art energy management system, and an on-site fitness center with showers and deli. Sunset North is currently 99% leased and anchored by The Boeing Company.

For more news and information visit Blumberg Partners.

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.

Parallel Capital Buys Office Campus for $72.5M

Parallel Capital Partners, Inc., a San Diego-based real estate investment and operating company, completed the purchase of Wateridge Plaza in a joint venture with Equity Group Investments for $72.5 million. The campus was sold by a partnership of Beacon Capital Partners and C-III Realty with representation from Eastdil Secured; Wateridge was originally sold to the partnership for $50.5 million in 2011. The three building Class A office complex in Sorrento Mesa adds nearly 300,000 square feet to Parallel's portfolio.

Located at 10201, 10221 and 10241 Wateridge Circle in San Diego, the office complex covers three six-story buildings and includes future development potential of approximately 168,000 additional square feet of Class A office space. Built in 1984, the prior owners, Beacon and C-III, invested over $14 million in upgrades to the project from 2009 to 2013. The property was 72% leased at the time of sale, with major tenants including American Specialty Health and Eddy M's Bistro.

"Wateridge Plaza is the ideal address for companies seeking the highest profile location, unparalleled campus amenities, panoramic canyon views and superb freeway access," said Matt Root, CEO of San Diego-based Parallel Capital Partners. "Most importantly it expands our presence in the Sorrento Mesa area, a technology and life science corridor which we believe is an emerging hub of the San Diego office sector," Root said. "Home to global leaders such as Qualcomm, Carefusion, & NuVasive, Sorrento Mesa is rapidly evolving into a world-class life science and high tech cluster."

For more news and information visit Blumberg Capital Partners.

Beacon Buying Seattle's Exchange Building

Beacon Capital Partners is in the midst of purchasing the historic Exchange Building in downtown Seattle with consultation from commercial real estate company Lorax Partners. According to a Puget Sound Business Journal article, representatives from Beacon and the owner, Langley Investment Properties of Portland, declined comment because the transaction had not yet closed, but Lorax's Brian Fyall was looking over the 22-story building at Second Avenue and Marion Street Tuesday.

While terms of the deal were not disclosed, it is known that the property previously sold for $80.6 in 2007 when The Ashforth Co. purchased the building. Two years ago, Ashforth’s West Coast affiliate, Ashforth Pacific, bought Ashforth’s assets and created Langley Investment Properties.

The Exchange Building at 821 Second Avenue is a 22-story art deco office building located in the central business district of Seattle, Washington. It was designed by John Graham & Associates and completed in 1930. The building boasts 299,000 square feet of space, and large blocks of space are available for lease, according to officespace.com.

For more news and information visit Blumberg Capital Partners.

City Center Plaza in Bellevue Sold for $375M

CommonWealth Partners, a fully integrated private real estate investment, development, management and operating company based in Los Angeles, California, has purchased City Center Plaza in Bellevue, WA for $374.7 million, or roughly $655 per square foot. According to a Seattle Times article, the purchase price is the highest ever on the Eastside and similar to what Amazon.com is paying Vulcan Real Estate for its 11-building South Lake Union office complex. Cole Real Estate Investments sold the 583,000 square foot office tower on behalf of Cole Credit Property Trust III, Inc. The trust had purchased the property in July 2010 for $310 million from Beacon Capital Partners of Boston.

"When our experienced real estate team brought this opportunity to us in the summer of 2010, despite industry naysayers, we felt this acquisition would be an excellent fit for our growing portfolio of mission-critical corporate properties," said Marc Nemer, Cole's president and chief executive officer. "Today, not only have we seen a 21% increase in the property's value, but we were able to deliver a return of 38% on the equity invested, creating significant value in the portfolio for the benefit of our shareholders."

Located at 555 110th Avenue NE, City Center Plaza was completed in 2008 and designed by Zimmer Gunsul Frasca Partnership. The 26-story Class A office tower serves as the headquarters for Microsoft Bing, which occupies 96.3% of the building.

For more news and information visit Blumberg Capital Partners.

Kilroy Pays $186M for Skyline Tower in Seattle

Kilroy Realty Corporation announced this week that it had acquired the 417,000 square-foot, 24-story, Class A office tower known as Skyline Tower located in Bellevue, Washington for $186 million. Kilroy purchased the property from Beacon Capital Partners of Boston in the second-largest in King County so far this year, according to a Seattle Times article. Beacon Capital Partners reportedly paid $129.8 million, or $318 a square foot, for the property in early 2006. In an earlier release announcing the pending sale, Los Angeles-based Kilroy said it was taking on an in-place loan of $84 million as part of the deal.

Skyline Tower is a LEED Silver certified property featuring spectacular views of the Cascade and Olympic Mountains and Mount Rainier, and sits in close proximity to Bellevue's affluent residential and retail neighborhoods. The property, designed by TRA Architects, is currently 92% leased to a diverse tenant base that includes technology companies Expedia and Valve Corporation.

For more news and information visit Blumberg Capital Partners.

Tishman Picks up VA Office Tower for $205M

Beacon Capital Partners sold a Class A office tower in Arlington, Virginia this week to Tishman Speyer for $205 million, or $523 per square foot, according to a CoStar report. While no brokers were disclosed for Tishman, Beacon Capital was represented by Cassidy Turley Commercial Real Estate in the deal. Tishman said that they plan to launch improvements on the property including renovations to the lobby and elevators along with adding a fitness center.

The 19-story property at 1300 N. 17th Street was built in 1980 in the Rosslyn-Ballston corridor outside of DC and features a full service cafe and five levels of underground parking. "We're very pleased with this opportunity to increase our presence by acquiring this attractive property in one of the nation's strongest office submarkets," said Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer. "With the availability of convenient, Class A space in short supply, Tishman Speyer is well positioned to take advantage of the emerging local marketplace opportunities."

For more news and information visit Blumberg Capital Partners.

Tishman Speyer Buys DC Metro Office Building

Tishman Speyer Properties purchased 1300 N. 17th St., a 19-story office building in Rosslyn, VA, from Beacon Capital Partners for about $200 million reports a Wall Street Journal article. According to the article, the $500 per square foot price for the property is among the highest on record for an office building purchase in the District's Virginia suburbs.

"They've righted their ship to concentrate on what they do best, which is the office sector," said Ben Thypin, director of market analysis at Real Capital Analytics in Manhattan, regarding Tishman. "That makes sense. It reflects how forgiving the real estate market can be."

Beacon originally purchased the property in 2007 as part of its acquisition of an Equity Office Properties portfolio from Blackstone Group. Blackstone subsequently sold a 9.8 million square foot chunk of that portfolio in Washington DC and Seattle to Beacon.

For more news and information visit Blumberg Capital Partners.

Wells REIT Purchasing DC Office Complex for $615M

Wells Real Estate Investment Trust II, also known as Wells REIT II, announced this week that it had signed a purchase and sale agreement for a 679,710 square foot office complex in Washington, DC for approximately $615 million excluding closing costs according to a National Real Estate Investor article. The deal is expected to close early this month as Wells takes ownership of the property from an affiliate of Beacon Capital Partners.

Built in 1990, the thirteen-story office property known as Market Square is a class A office property located on Pennsylvania Avenue between the U.S. Capitol and the White House. The property is certified LEED silver and is ENERGY STAR rated, and serves as headquarters of leading global law firms, Fulbright & Jaworski, Shearman and Sterling and Mintz Levin. Renowned FORTUNE 500 companies represented on the tenant roster include Procter & Gamble, Novartis, AstraZeneca, Bayer Corporation, Florida Power & Light and Waste Management.

Jones Lang LaSalle’s Scott Homa noted of the DC marketplace that "...year-to-date, the Metro DC market has tallied 21 transactions for $1.5 billion. Twelve of these deals accounting for $1.25 billion were concentrated in Downtown Washington, DC. In 2010, it took the metro area as a whole until June 2010 to reach the $1.5 billion it has registered in the first two months of this year."

For more news and information visit Blumberg Capital Partners.