Tier REIT Sells DC Buildings to Westbrook

TIER REIT, a Dallas-based real estate investment trust focused on commercial office real estate formerly operating as Behringer Harvard REIT I Inc., has sold two buildings in Washington, DC to Westbrook Partners in a package deal worth more than $200 million. The sale of the properties exits TIER REIT from the Washington market as these were their only two portfolio properties in the District.

Behringer Harvard acquired the 127,000-square-foot Colorado Building in August 2004 for $44 million, according to a Washington Business Journal article. In October 2005, it bought the 306,000-square-foot 1325 G for $135.5 million. At the time, CoStar quoted Behringer Harvard Chairman Robert Behringer as saying "we have a potential opportunity to enhance the value of these assets by ultimately selling them as a portfolio."

The first property at 1341 G Street, known as the Colorado Building, is one of the few category III landmark office buildings in the District of Columbia. The building was originally constructed in 1903, then renovated 1989 and 2002 with more than 127,000 square feet of rentable space. The second property is on the same block close to the White House at 1325 G Street, with 306,563 square feet of space in a building that was awarded BOMA 360 designation in 2011.

For more news and information visit Blumberg Partners.

Children's Hospital Renews, Expands Lease in Philadelphia

Behringer Harvard announced this month that The Children's Hospital of Philadelphia has renewed its current lease at the Wanamaker Building through June 2027 and expanded their leased space to exceed 250,000 square feet in the historic building. Children's Hospital first moved in to the space in 2005. In 2007, Behringer Harvard REIT I, Inc. acquired a majority interest in the building; Amerimar Enterprises, Inc. is one of the ownership partners and also serves as the managing agent for the property.

"The Children's Hospital of Philadelphia has had a distinguished presence in The Wanamaker Building since 2005, and we're pleased they will be with us for many years to come," said Ms. Deidre Hardister, Vice President of Asset Management for Behringer Harvard. "We will continue to provide them with the exceptional service that is a hallmark of the Wanamaker experience."

Completed in stages from 1902-1910, the Wanamaker Building at 13th Street and Market Street in Philadelphia served as the flagship of the John Wanamaker department store empire for decades and was later converted to offices in the 1980s as the need for urban department stores declined. The Wanamaker Building is home to the world's largest operational pipe organ, which is still played daily. Major tenants include U.S. General Services Administration, U.S. Army Corps of Engineers, U.S. Department of Housing and Urban Development, Hay Group, The Weightman Group and McGettigan Corporate Planning.

For more news and information visit Blumberg Capital Partners.

JV Acquires Interchange Business Center for $30M

A joint venture between Behringer Harvard and CT Realty Investors finalized the acquisition of the Interchange Business Center in San Bernardino, CA for $30 million according to National Real Estate Investor. The property is part of the Inland Empire industrial market in the easter portion of greater Los Angeles and was sold by IBS Industrial Properties LLC. Built in 2007, the four-building complex is currently 29% leased with major tenants including FTDI Supply Chain Management and Genco.

"Interchange Business Center provided us with an attractive opportunity to capitalize on current market stress by acquiring Class-A industrial space in a recovering market at a significant discount to replacement cost," said Samuel Gillespie, Chief Operating Officer of Behringer Harvard Opportunity REIT II, a non-traded real estate investment trust. Mr. Carter Ewing, Executive Vice President of CT Realty Investors, added, "This acquisition complements our growing portfolio of Inland Empire industrial properties and speaks to our ability to source compelling off-market opportunities."

For more news and information visit Blumberg Capital Partners.

South Florida Medical Office Buildings Bought for $47.1M

Tenet Healthcare Corporation, a health care services company, has sold nine of their South Florida medical office buildings to AW Property Company in a $47.1 million cash deal according to The Palm Beach Post. AW Property completed the deal through its joint venture with Behringer Harvard, a purchase that totaled 630,000 square feet. “This medical office portfolio provides an attractive value-added investment opportunity,” AW Property Managing Director Brian Waxman said in a news release.

The buildings sold in the portfolio include:

The Victor Farris Building, at 1411 N. Flagler Drive in West Palm Beach. The 148,000-square-foot medical office, next to Good Samaritan Medical Center, will get extensive upgrades.

The eight-story Palmetto Medical Plaza, a 130,000-square-foot building at 7100 W. 20th Ave., in Hialeah near Palmetto General Hospital.

Hialeah Medical Plaza, a 72,000-square-foot office building at 777 E. 25th St., near Hialeah Hospital.

The 56,000-square-foot North Shore Medical Arts building, at 1190 N.W. 95th St. in Miami, near North Shore Medical Center.

Four medical office buildings for a combined 207,000 square feet near Florida Medical Center in Fort Lauderdale.

The 20,000-square-foot St. Mary’s Professional Center, at 5035 Greenwood Ave. in West Palm Beach, near St. Mary’s Medical Center.

For more news and information visit Blumberg Capital Partners.