Hines & Cousins Ready to Break Ground on Victory Center in Dallas

In a partnership that was first revealed in 2014, Hines and Cousins Properties have teamed to develop a 23-story office tower in Dallas' Victory Park project, and this week said they would be moving forward to break ground on the project. Hines and Cousins previously partnered on the development of One Ninety One Peachtree Tower in Atlanta, a 1.2 million-square-foot, 50-story office tower that was completed in 1990. The new tower, designed by Duda|Paine Architects, is expected to take 23 months to construct.

"Together with our partner, Cousins, we own the land and we have fully designed the building," Rob Witte, a senior managing director for Hines' southwest region, told the Dallas Business Journal."We are out in the marketplace with our brokers working to secure tenants and we have several strong prospects."

"Victory Center will be an excellent addition to the thriving Uptown Dallas office market, and we couldn't be more excited to be a part of the transformation occurring at Victory Park," Larry Gellerstedt, president and chief executive officer of Cousins Properties, said in a statement.

The 466,000-square-foot office and retail tower, known as Victory Center, will be located just north of Hines' One Victory Park, which was completed in 2008 and sold last month to New York-based Clarion Partners in a deal estimated at more than $170 million. Thad Ellis, a senior vice president and market leader for Hines in Dallas, previously said the company would like to land a large tenant — one in the 150,000-square-foot to 200,000-square-foot range — before breaking ground on the tower. Cushman & Wakefield are leasing the building on behalf of Hines and Cousins, with HFF acting as financial advisor on the project.

For more news and information visit Blumberg Partners.

JLL Picks Up Valencia Industrial Portfolio for $65M

JLL Income Property Trust, an REIT advised by LaSalle Investment Management Inc. and sponsored by Chicago’s commercial real estate brokerage Jones Lang LaSalle Inc., announced that it had acquired a five-building warehouse portfolio in the Greater Los Angeles submarket for approximately $64.5 million. The multi-tenant portfolio was sold by Clarion Partners with representation from JLL; full terms of the deal were not disclosed.

"Acquiring high quality, well-located warehouses in select, primary markets with high barriers to entry, like the Greater Los Angeles market, is a core component of our investment strategy," said Allan Swaringen, CEO and President of JLL Income Property Trust. "This portfolio's prime infill location in close proximity to Interstate 5 should allow us to attract and retain tenants and capture this market's strong rent growth potential. This marks our third industrial investment closed this year, and twenty-third property acquired in the warehouse sector over the last three years, growing our industrial allocation to over $430 million and 25% of our overall portfolio."

The Valencia Industrial Portfolio was full leased at the time of sale to eight different tenants. With an overall market vacancy rate of less than 2% (its lowest level in fifteen years), and new construction pipelines delivering less than 1% of existing stock, the industrial property market fundamentals of Greater Los Angeles are some of the strongest across all property types and markets in the country, according to JLL. The properties in the portfolio include:

28150 West Harrison Parkway: 87k square feet
28145 West Harrison Parkway: 114k square feet
28904-28912 Avenue Paine: 117k square feet
24823 Anza Drive: 31.3k square feet
25045 Avenue Tibbitts: 142.4k square feet

"The Valencia Industrial Portfolio offered quality assets occupied by credit tenants in a market with great connectivity," explained Bo Mills of JLL. "With a limited supply of Class A warehouse product in Southern California and in-place rents below market value, this deal represented a prime opportunity for both the buyer and seller."

For more news and information visit Blumberg Partners.

Invesco Sells Pompano Industrial Center to Clarion Partners

New York-based Clarion Partners has purchased the Pompano Industrial Center, a four-building industrial park in Pompano Beach, Florida, for $77.25 million, or $124 per square foot. The property was sold by Pompano Industrial Center LLC, an affiliate of Invesco Advisors, an investment manager headquartered in Texas. Terms of the deal and representation were not disclosed, The Real Deal reports that Invesco pieced together the property through separate deals in 2001 and 2004 that created a combined price of $51 million. Invesco paid $36.2 million to buy three of the industrial park buildings from IDI Gazeley, the original developer, which is now part of Brookfield Logistic Properties. The largest building was bought three years later for $14.8 million. CBRE had been the leasing agent for the properties.

Pompano Industrial Center is located at 901, 2001 and 2004 N.W. 25th Ave. and 2510 W. Copans Road in Pompano Beach and totals 623,256 square feet of space on 37.4 acres. The portfolio of buildings is part of the larger Pompano Business Center, where TIAA owns a FedEx building and the Arizona Beverage Co. owns a nearby warehouse its distribution center occupies in the business park. The portfolio's occupancy rate at the time of sale was not disclosed, but two months ago OC Communications leased a full building.

For more news and information visit Blumberg Partners.

Legg Mason Acquiring Clarion Partners

Global asset manager Legg Mason Inc. announced that it has agreed to acquire a majority interest in Clarion Partners, the New York-based real estate firm that manages approximately $40 billion across the real estate risk/return spectrum. Under the terms of the deal, Legg Mason will acquire an 83% ownership stake in Clarion Partners for $585 million, and pay for its portion of certain co-investments on a dollar for dollar basis, estimated at $16 million. Clarion Partners was represented by Morgan Stanley, King & Spalding and Davis Polk & Wardwell LLP, and advised by Grail Partners. RBC Capital Markets and Azrack & Co. served as financial advisors to Legg Mason.

"Clarion Partners, with a focus on strong performance through market cycles, a positive growth profile and differentiated product offerings, brings an important alternative asset class to our portfolio of investment managers. Whether they seek growth, capital preservation or income, we are further able to offer our clients investments with attractive solutions. Most importantly, the experienced management team at Clarion Partners shares our passion for innovation, the creation of exceptional value through responsible investing principles and focus on excellence for clients. We welcome them to Legg Mason," said Joe Sullivan, Chairman and CEO of Legg Mason.

Clarion's previous majority partner, private equity firm Lightyear Capital, will sell its entire ownership stake in the transaction. Lightyear will continue to be "very active in the asset management space," said Mark Vassallo, managing partner of Lightyear Capital. Clarion will join Legg Mason as one of its independent investment management affiliates, and the management team (a significant number of which have signed long term contracts in conjunction with the transaction) will retain 17% of the outstanding equity in Clarion Partners. The deal is expected to close in the second quarter of 2016.

For more news and information visit Blumberg Partners.

Clarion Buys Pacific Tech Park

An affiliate of New York-based Clarion Partners purchased the Pacific Technology Park in Sorrento Mesa, California in a $90 million deal arranged by Cushman & Wakefield. According to a San Diego Business Journal article, the sellers of the industrial property, at 9389-9477 Waples St., were Pacific Tech Property Inc. of San Diego and San Francisco-based Deutsche Asset & Wealth Management. The sellers were represented by Jeff Chiate, Jeffrey Cole and Edward Hernandez of Cushman & Wakefield; and Mickey Morera and James Duncan of Kidder Mathews; Clarion was self-represented.

"This offering generated a great deal of interest," Jeffrey Cole told GlobeSt.com. "Clarion Partners was attracted to this opportunity to own a class A industrial park with credit tenancy in a coastal market. With the acquisition, Clarion also has the potential to further improve certain suites to re-lease to creative office and technology tenants at significantly higher rents."

The five building, office/corporate headquarter, R&D, warehouse business park is centrally located in San Diego's Sorrento Mesa Submarket, just east of the Interstate 805 Freeway. Pacific Technology Business Park was built in 1989-1991 and was 80% occupied by 13 tenants at the time of sale.

For more news and information visit Blumberg Partners.

Gateway Business Park Construction Kicks Off in Union Township

New York-based Clarion Partners, a real estate investment manager, together with Baltimore-based MRP Industrial, an affiliate of MRP Realty, began construction this week on a new development in Jonestown, PA. The project sits on the site of the former I-81/I-78 Logistics Park in Union Township; last October, Clarion and MRP purchased a 129-acre parcel with plans to develop two buildings within the three building, 1.9M-square-foot Gateway Logistics Park. This week they broke ground on Building B, a 500,000 square foot structure at 545 Old Forge Road.

The development includes pad-in-place development parcels for both a 1,002,000-square-foot distribution center at 575 Old Forge Road and Building B. MRP Realty said it is talking to prospective lease and build-to-suit prospects, and that the buildings would be ideal for northeast region distribution and e-fulfillment retail operations.

The third building in the development is being planned by Pennsylvania real estate company Vision Group Ventures, according to corporate spokesperson. That building will be approximately 400,000 square feet.

For more news and information visit Blumberg Partners.

Synergy Sells Boston Property for $49M

Synergy Investments, the Boston-based real estate investment company, has sold 100 Franklin Street in downtown Boston to Clarion Partners for $48.75 million, or roughly $394/sf, according to a Suffolk County deed. The property previously traded hands in July 2004 when SSR Realty Advisors sold the building to Oasis Development of Lynn for $19.5 million, which then sold it to Synergy in 2008 for $33.5 million. Terms of the deal and representation were not disclosed. According to a Commercial Real Estate Direct report, the company has lined up a $24.6 million loan from TD Bank against the property.

100 Franklin Street was constructed in 1908 and originally served as the headquarters for the Boston Safe Deposit and Trust Co. The nine-story, 117,630 square foot building was renovated for the now-defunct Boston Stock Exchange in 1998. The building is within walking distance to Post Office Square, the Langham Hotel Boston and Faneuil Hall Marketplace. The seller, Synergy Investments, occupies 9,034-square-feet in the building, which is now anchored by Webster Bank.

For more news and information visit Blumberg Partners.

The Oregonian Building Getting Creative Office Makeover

Seattle-based real estate firm Urban Renaissance Group (URG) unveiled plans this month for an extensive renovation at the former headquarters of The Oregonian at 1320 SW Broadway in Portland. Portland-based Allied Works Architecture redesigned the 286,000-square-foot building, The Oregonian's home of more than six decades, to transform it into the largest single block of creative office space available in downtown, according to a Portland Business Journal article. Brokerage Jones Lang LaSalle announced this week it's marketing the building to tenants, who could move in by early 2016.

Urban Renaissance Group, in a partnership with New York investment firm Clarion Partners, paid $14.15 million for the property in September 2014, with "plans to spend an even greater amount on the extensive renovation." The six-story structure was designed by renowned Italian-born architect Pietro Belluschi, and originally constructed in 1948. "Belluschi led the Modern movement in American architecture and this building is one of the real treasures among the thousand or so buildings he designed in his lifetime," Brad Cloepfil, founding principal of Allied Works, said in a release. "It's a tremendous opportunity to be able to work on a design to reveal the work of a truly great architect in a modern context."

The plans call for converting the building's basement to an 80-vehicle garage, as well as an area to accommodate 100 or more bicycles with showers and other bike-commuting amenities. The west side of the building, facing Broadway, will also include some retail space. The building will total 165,000 square feet of rentable space.

"Our goal, with the team from Allied Works, is to open up the Broadway façade and reconnect the building to the neighborhood," said Tom Kilbane, head of URG's Portland office. "On the inside, by peeling back the layers of improvement, we will be exposing some of the most interesting office space that we've seen in Portland."

For more news and information visit Blumberg Capital Partners.

Clarion Adds to Austin Office and Retail Portfolios

Clarion Partners has expanded its Austin portfolio with the acquisition of Mira Vista and The Overlook, an office portfolio, and a single tenant retail property occupied by Whole Foods Market Inc. The office portfolio was purchased from Houston-based The Lionstone Group, while the retail building was developed and owned by Austin-based Endeavor Real Estate Group in partnership with RREEF, now known as Deutsche Asset & Wealth Management. HFF represented the seller for both transactions; terms of the deals were not disclosed.

"We're excited to expand our portfolio in Austin," said Brian Watkins, a Managing Director at Clarion Partners. "This is one of the strongest major metropolitan markets in the country and we believe the strong location and proximity to amenities make these assets an excellent addition to our portfolio."

The 171,872 square foot, two-building office portfolio is currently 98.2% leased across a variety of professional service industries. Mira Vista and The Overlook were developed in 2002 and 1999, respectively, and are occupied with a strong tenant roster across varied industries including finance, real estate, legal, education and technology. Whole Foods has a long-term lease for the 60,000-square-foot property at 11920 Domain Drive.

For more news and information visit Blumberg Capital Partners.

Epic Enters DC Market with $52.7M Office Building

Clarion Partners disposed of a DC area property this week that marks the latest foreign investor movement in DC's commercial real estate market as Epic LLC, the U.S. affiliate of a London-based firm headed by Tom and Steven Elghanayan, cousins of Rockrose CEO Henry Elghanayan, purchased 919 18th Street for $52.75 million, or about $498 per square foot, free and clear of existing debt. HFF represented Clarion Partners in this transaction and procured the buyer. Epic paid about $13 million more for the building than Clarion did back in 2005, according to a Washington Business Journal article.

"The property's superb location and stellar occupancy history of approximately 95 percent over the last 10 years led to extremely competitive bidding," said Dek Potts of HFF.

919 18th Street is a 10-story, 105,965 square foot office building in the heart of the Central Business District, directly across from the Farragut West Metro. The building was awarded an Energy Star label in 2010 for its operating efficiency, and was most recently renovated in 2013. Originally built in 1981, the property was 94% leased at the time of sale to 20 tenants, including Devon & Blakely.

For more news and information visit Blumberg Capital Partners.

Clarion Sells Mexican Industrial Portfolio for $202M

Clarion Partners announced this week that it had sold a Mexico-based industrial portfolio to FIBRA Uno, a Mexican public REIT, for $202 million. The portfolio includes 22 industrial buildings and four land reserves containing a total of 67 acres. FIBRA Uno, was Mexico's first public REIT to list on the Mexican stock exchange in 2011 and is the largest of its kind by market capitalization, according to a GlobeSt.com article. Grupo Garza Ponce, a Mexican real estate developer and Clarion Partners' joint venture partner in the portfolio, contributed six additional properties to bring the combined sale value to $275 million. Full terms of the deal were not disclosed.

"Rising manufacturing costs in China and investor-friendly legislation in Mexico is encouraging tech, apparel and auto manufacturing firms to 're-shore' production, which in turn has boosted demand for industrial real estate," observed Alejandro Cuadros, a Vice President at Clarion Partners and head of the transaction team. "This strategic sale is typical of Clarion's active portfolio management approach."

Nineteen tenants, including U.S., Mexican and international companies, occupy 91% of the portfolio's 2.8 MM square feet of NRA across five metropolitan areas: Monterrey, Saltillo, Reynosa, Ciudad Juarez and San Luis Potosí. The properties are strategically located to take advantage of proximity to key cross-border supply chain networks as well as Mexico's favorable demographics.

For more news and information visit Blumberg Capital Partners.

Amazon Opening Another Fulfillment Center in Moreno Valley

Amazon announced this week that it has plans to open its fourth fulfillment center in California, which would create more than 1,000 jobs at the new site in Moreno Valley. The Seattle-based online retail giant is close to finalizing plans for a fulfillment center expected to open in a year, Mike Roth, vice president of Amazon’s North America operations, said at a grand opening for the company’s San Bernardino logistics center on Tuesday morning. The 1.2 million square-foot fulfillment center is being built by Trammell Crow Company and Clarion Partners in a joint venture.

As of Sept. 30, Amazon had 96 fulfillment centers worldwide. According to a Los Angeles Times article, the new fulfillment center, some 20 miles away from San Bernardino, will also be home next year to a 935,000-square-foot distribution center run by grocery chain Aldi.

"We are excited to grow our presence in the great state of California, bringing more than 1,000 new full-time jobs to Moreno Valley to join the thousands of Californians we employ currently in our fulfillment centers in Patterson, San Bernardino and Tracy," said Roth. "Amazon's fulfillment center positions are full-time jobs that offer competitive wages, benefits, company stock awards, 401(k) and programs like Career Choice where Amazon will pre-pay the cost of tuition for employees to go back to school. We look forward to joining the community."

"The innovative spirit of Amazon fits well with the creative and entrepreneurial environment in California," said California Governor Edmund G. Brown Jr. "The investment today means hundreds of new jobs in the Inland Empire."

For more news and information visit Blumberg Capital Partners.

Clarion, Trammell Break Ground on PA Industrial Spec Project

A joint venture between Trammell Crow Company and Clarion Partners broke ground this week on a new Class A speculative industrial building in Pennsylvania's Lehigh Valley industrial market. The 677,088 square foot building will sit on a 40-acre site within Lehigh Valley Industrial Park VII, a master planned business park in Bethlehem.

Trammell Crow Company and Clarion are not disclosing financial details of the development of 2485 Commerce Center, but the partners will benefit from a coveted economic advantage in the endeavor, given that Lehigh Valley Industrial Park VII is a designated Local Economic Revitalization Zone that provides tax breaks on new construction for a period of up to 10 years, according to a Commercial Property Executive article.

"We believe that the Lehigh Valley is one of the most sought after industrial markets in the entire country and this location within the Valley is exceptional," said Andrew Mele, Senior Vice President with Trammell Crow Company's Northeast Regional Business Unit. "The project offers a great location, best-in-class design and significant tax advantages. We are pleased to be delivering this project at a time when supply is limited and demand is strong."

Located at 2485 Commerce Center Boulevard, the building is scheduled for completion next spring. A leasing team led by Joseph McDermott and Vincent Ranalli at CBRE have been appointed as the listing brokers for the project.

For more news and information visit Blumberg Capital Partners.

Clarion Sells Interest in Naple's Waterside for $155M

Clarion Partners announced today that it had sold a 50% interest in Waterside Shops on behalf of the Oregon Public Employees Retirement Fund (OPERF) for approximately $155 million, less assumed debt. Last month, Taubman Centers announced that it had entered into an agreement to acquire the interest from OPERF, with the remaining interests owned by an affiliate of The Forbes Company.

OPERF held an ownership in Waterside Shops since 1994 and noted that "It is with some degree of sadness that we have sold Waterside Shops," said Steve Latimer, Clarion Partners' portfolio manager for the OPERF relationship. "It has been a strong performer in the portfolio for a long time. However, the portfolio Clarion Partners manages for OPERF is now focusing exclusively on office opportunities. The capital generated from this sale will be reinvested in core office properties." Eastdil Secured acted as advisors to Clarion in the sale.

"We are delighted to build upon our successful partnership with Forbes by increasing our ownership in Waterside," said Robert Taubman, chairman, president and chief executive officer of Taubman Centers. "This highly productive, luxury oriented center complements our portfolio."

Opened in 1992, Waterside Shops is a luxury retail destination on Tamiami Trail in Naples, Florida that was completely redeveloped in 2006 by The Forbes Company. In addition to structural renovations and facade improvements, 30,000 tropical plants and flowering shrubs were planted, as was the Royal Palm promenade. Also added were fountains, walkways, and a 550-foot long, hand-laid rock wall punctuated with special water features cascading into a reflection pool. The fully-leased, 370,510 square-foot property is anchored by Saks Fifth Avenue and Nordstrom, with luxury retailers Gucci, Louis Vuitton, Hermes, Burberry, Cartier, Tiffany, DeBeers and Van Cleef & Arpels as well as Apple among the high-profile tenants.

For more news and information visit Blumberg Capital Partners.

Hillwood and Clarion JV to Develop Amazon Fulfillment Center

Hillwood and Clarion Partners announced this week that it will partner in a joint venture to develop a 950,000 square foot facility as part of the AllianceCalifornia project that will serve as a fulfillment center for Amazon once completed later this year. The development in San Bernardino, California will be located on Central Avenue, east of Tippecanoe Avenue. Hillwood will serve as the developer for the project, while the JV will serve as the landlord for the facility, leasing space to Golden State FC LLC once the building is complete. Golden State will then operate the fulfillment center for Amazon. Meanwhile, USAA Real Estate Co. will develop a fulfillment center of about 1 million square feet in Patterson, a city along Interstate 5 in the Modesto metro area according to a CoStar report.

"We've been planning to develop this property for some time, and we're thrilled that Amazon will be moving in after the facility is completed," said John Magness, Senior Vice President, Hillwood and leader of Hillwood's Inland Empire office. "We appreciate all the support from the community, and we look forward to Amazon starting operations in San Bernardino."

"We are excited to be a part of this project and we look forward to a long and successful relationship with Amazon and the community," said Stacey Magee, Senior Vice President/Regional Manager for Clarion Partners.

"We appreciate Hillwood and Clarion's ongoing work and thank Governor Brown and state and local officials for their support, which will allow us to create more than 1,000 full time jobs with benefits in San Bernardino when the facility begins shipping to customers," said Dave Clark, Amazon vice president, global customer fulfillment.

For more news and information visit Blumberg Capital Partners.

Qwest Plaza Building in Seattle Sold for $137M

Clarion Partners acquired the Qwest Plaza building at 1600 Seventh Avenue in downtown Seattle, Washington for $137 million from CenturyLink, formerly known as Qwest Communications. The purchase was made on behalf of a separate account client of the firm in an offmarket transaction. CenturyLink was represented by Newmark Knight Frank Frederick Ross in the transaction and a new lease negotiation which has the company still occupying 260,000 square feet of the tower.

Additionally, Nordstrom is leasing more than 300,000 square feet in the building for a term of 20 years, with an option to take more space, said Nordstrom spokesman Colin Johnson. Nordstrom has been on the hunt for more downtown Seattle office space, and the Qwest Plaza building is near the Seattle retailer's headquarters and flagship building, according to a Puget Sound Business Journal article. "This new location is to accommodate our continuing growth," Nordstrom spokesman Colin Johnson said. "It's a long-term solution." Nordstrom recently said it planned to hire 400 tech workers to round out the retail company's fast-growing ecommerce division.

"We are thrilled to have been able to secure such high quality companies as Nordstrom and CenturyLink as tenants," said Stephen P. Latimer, Managing Director at Clarion Partners. "We look forward to rejuvenating the building with New York, April 3, 2012 the renovation and bringing in additional retail uses in this key location in the city."

Designed by John Graham & Company and completed in 1976, the building was originally known as the Pacific Northwest Bell Building, and has also been called 1600 Bell Plaza, and US West Communications. The 598,000-square-foot tower was reportedly 88% leased at the time of sale.

For more news and information visit Blumberg Capital Partners.

JV Developing Major Life Sciences Project in Boston

Clarion Partners announced today that it had entered into a joint venture with National Development, Charles River Realty Investors and Alexandria Real Estate Equities to develop a major life sciences and biotechnology building in Boston, Massachusetts. Located in the Longwood Medical Area of Boston, the project, dubbed Longwood Center, will include 413,536 square feet of space over 11 floors, with flexible laboratory, office and retail space to support tenants.

The property will be anchored by Dana-Farber Cancer Institute, one of the world leaders in cancer research and care, which has already committed to lease approximately 154,000 square feet. The area is home to numerous renowned medical, research and academic organizations including: Harvard Medical School, Beth Israel Deaconess Medical Center, Brigham and Women's Hospital, Joslin Diabetes Center and Children's Hospital-Boston.

"This project truly represents the next chapter in leading edge global research and development," said Mark Weld, Managing Director and Portfolio Manager in Clarion's Boston office. "We are pleased join with our development partners and Dana-Farber in being an integral part of making this vision a reality."

For more news and information visit Blumberg Capital Partners.

Prologis Sells $118M Portfolio to Clarion

San Francisco-based Prologis, Inc. sold a 2.8 million square foot industrial portfolio to Clarion Partners for $118 million this month reports the Dener Post. The 13 properties, with an average 90% leased, are located in nine markets including Atlanta, Cincinnati, Columbus, Dallas, Indianapolis, San Antonio, Phoenix, Salt Lake City and Tracy, CA. CB Richard Ellis brokered the deal.

A spokesperson for Clarion said there is no breakdown of value for each of the properties. GlobeSt.com discovered that the portfolio includes: the Patterson Pass Business Park #8 and #10 in Tracy, CA; Crossroads Corp. Center #1 and #3 and the Salt Lake International Distribution Center #8 in Salt Lake City; Kyrene Commons #3 in Tempe, AZ; Tri-County Distribution Center #1 in Schertz, AZ; the Waters Ridge Distribution Center #1 in Lewisville, TX; the Plainfield Park Building #3A in Plainfield, IN; the Capital Park South Distribution Center #4 in Grove City, OH; the West Chester Commerce Park #2 in West Chester, OH; the Princeton Distribution Center #1 in Cincinnati; and the Progress Distribution Center #1 in Lawrenceville, GA.

"This disposition is part of our continuing program to enhance investor returns in our private capital funds," said Guy F. Jaquier, chief executive officer of Prologis Private Capital. "We are selectively selling properties where we have maximized value or where they no longer fit our strategic goals and objectives."

Prologis owns or has investments in properties of about 600 million square feet in 22 countries, according to the company. Its corporate headquarters moved to San Francisco from Denver following a merger with AMB Property Corp. but its operations headquarters remain in Denver.

For more news and information visit Blumberg Capital Partners.