TriGate Sells Two TX Office Buildings

Dallas-based TriGate Capital has sold two office buildings in Addison, Texas to two separate investors in deals brokered by Colliers International's Dallas office. TriGate originally acquired the properties in 2009 as part of a three building portfolio from GE Capital, which gained ownership of the buildings after an investor that purchased the properties in 2006 defaulted on its loans. Last year, TriGate sold the third building in the portfolio at 14850 Quorum Dr in Addison to Libitzky Property Cos. TriGate nor the purchasing agents or companies did not disclose the sale price for any of the properties.

"TriGate's investment strategy is to implement and complete a full capital improvement program in the buildings and to aggressively lease the vacant space," TriGate had said of the properties in 2009. "TriGate believes that its sponsorship and capital along with the buildings' quality and location will be very attractive to potential tenants in the North Dallas market." The following year, Trigate Capital launched major renovations on all three properties and enlisted Capstar Commercial Real Estate Services to manage the buildings.

The Landmark, a 158,650 square foot office property located in the Quorum micro market in Addison, was sold to a joint venture between Libitzky Property Company and Sunwest Real Estate Group; the companies were self-represented in the transaction, and terms were not disclosed. Located at 14800 Landmark Drive, the eight story building was originally constructed in 1985 inside the Quorum office park, which is convenient to Addison, the Dallas North Tollway and the greater Far North Dallas submarket. The building features an open, two-level atrium lobby comprised of polished granite walls and stainless steel finishes.

Emerald Plaza, a 74,182-square-foot office building at 14900 Landmark Boulevard, was sold to Grander Capital Partners, which represented itself in the transaction. Also built in 1985, the six story property features an efficient and elegant building design and 100% underground parking with direct elevator access. Collier's promotional materials indicate that the property was 85% leased at the time of sale.

For more news and information visit Blumberg Partners.

Center Court Partners Pays $80M for Boston Globe HQ

The Boston Globe announced that it is selling its 16.5 acres of offices in Dorchester, which currently serves as their headquarters, to move back to downtown Boston. According to a Boston Magazine report, New York-based Center Court Properties will pay $80 million for the 815,000-square foot facility. An earlier deal for the site with Winstanley Enterprises, a Concord development firm, fell through in February. Boston Globe Media Partners (BGMP) chief executive Mike Sheehan said that the company will move its editorial and business operations to the second and third floors of the Exchange Place complex at 53 State St. on Jan. 1, 2017. Terms and representation were not disclosed, but BGMP announced in 2014 that it had hired Colliers International to negotiate the sale and transition for the press giant.

"We believe, first and foremost, that there is a bright, shining future for high-quality journalism in the region," Sheehan said in an interview. "We're moving people to where they will be closer to the stories and where they can access the stories on foot. That sends an important message."

The 3-story property at 135 William T Morrissey Boulevard currently houses all of the paper's editorial, advertising and administrative departments, along with all of its production facilities and ample parking. The site is located not far from the University of Massachusetts at Boston and the John F. Kennedy Presidential Library and Museum, with visibility to commuters on the Southeast Expressway and a short walk to the Red Line.

A city master plan for Columbia Point has identified the Globe as a prime parcel for mixed-use redevelopment— a plan endorsed by Mayor Marty Walsh. "If it is tasteful and done right, mixed-use on that site would be important with a component of housing and a component of economic development, whether it's an office building or retail park," said Walsh.

For more news and information visit Blumberg Partners.

CIM Picks Up Boston South End Office Building

Los Angeles-based CIM Group, an urban real estate and infrastructure fund manager, together with Boston-based Center Court Mass, LLC, announced that it has purchased 95 Berkeley Street in Boston's South End for $43 million. CIM acquired the property from The Community Builders, a nonprofit urban housing developer in Boston, which purchased the property as their first acquisition in the South End market. The building previously sold for $2,373,100 in 1992. Colliers International represented The Community Builders in the transaction, and markets the property for lease; CIM's representation and terms of the deal were not disclosed.

95 Berkeley Street comprises approximately 103,265 square feet on six floors, plus a basement with parking for 36 cars. Originally built in the 1920's, the property was redeveloped in 1988 by The Community Builders, which previously placed the property on the market in 2004 with Meredith & Grew Inc. for sale as a residential conversion. Formerly the headquarters of Morgan Memorial, the property is prominently situated at the corner of Berkeley and Chandler Streets in Boston's South End and offers immediate access to public transportation located just blocks away from Back Bay Station.

For more news and information visit Blumberg Partners.

Global Investor Report: Real Estate Continues to Appeal

Colliers International released its Global Investor Outlook for 2016, which gathers information from over 600 global investors, and revealed that investor sentiment toward real estate is projected to remain positive globally in the new year. Over half of the respondents said they will increase fund allocations to real estate in 2016, while only 11% plan for a decrease, which is on track for continued growth in 2016.

"Our global analysis in this report gives a unique macro-view, providing a comprehensive look at the health of the economy as well as in-depth views of market sentiment that serve as a useful bellwether for local markets worldwide," said John B. Friedrichsen, Chief Financial Officer at Colliers International, in a press release. "Our report suggests that the days of 'pass the parcel' are over, and long term secure investment in core markets will be the norm. At the other end of the risk spectrum, large volumes of capital already raised will increasingly seek out opportunities in tier-two cities and recovering markets."

Highlights from the report include:

Real estate continues to appeal.
Sentiment toward real estate remains positive, with global transactions set to exceed 2014 levels by year end and nearing pre-financial crisis levels. More than half of the respondents with multi-asset portfolios also said that they would increase their real estate allocations in the next 12 months.

Liquid markets still preferred.
While the “search for yield” has pushed some investors up the risk curve toward secondary assets and more peripheral markets, the most liquid markets (U.S., U.K., Germany, Australia and Japan) and global gateway cities (London, Paris, New York, San Francisco, Tokyo and Sydney) remain the primary target for global cross-border investors over the next 12 months. In entering peripheral, higher-yielding markets, liquidity is being seen as an obstacle.

Hot pricing.
2016 will see a greater emphasis on secure income and asset management to drive performance. For some investors, it’s getting harder to achieve return expectations, particularly in “overcrowded” core markets, which are seen as expensive and fully priced by many. Some fund managers cite a growing misalignment between their client return expectations and what the market offers.

Return of debt.
More investors will use debt to finance acquisitions, suggesting that the equity phase of the cycle is giving way to a debt phase. This is particularly true of Continental Europe, where interest rates are likely to stay low for longer and further QE rounds from the ECB are expected.

For more news and information visit Blumberg Partners.

WP Carey Picks Up QBE Holdings Building for $43M

W. P. Carey Inc., the New York-based net-lease REIT, announced this week that it had purchased 2700 Frye Road in Chandler, Arizona for approximately $43 million. The Class A office building was sold by Regent Properties of Los Angeles; terms of the deal were not disclosed. Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

"This acquisition represented an opportunity to secure a well-located new Class-A office facility leased to a credit tenant on a site that also offers the possibility for additional development," said W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini. "Located in the Price Road Corridor, one of the most desirable areas of the Phoenix submarket, the investment provides attractive current cash flow."

Regent Properties completed the building’s construction after purchasing the property in 2011 and then fully leased the building shortly thereafter. QBE FIRST, part of QBE Insurance Group Limited, signed an 11-year lease at the property in 2012 providing them with a significant QBE FIRST call center operating as its West Coast regional headquarters.

For more news and information visit Blumberg Capital Partners.

Amazon Moving Into New Vancouver Office Tower

Telus Garden, a new a $750-million complex under construction near Pacific Centre that's taking up most of the block bound by Robson, Seymour, Georgia and Richards in downtown Vancouver, has a new tenant this week as the Seattle-based online retailer Amazon has reportedly committed to 91,000 square feet of space in the new office tower. Colliers International confirmed to Curbed that Amazon will be leasing the space (without disclosing terms of the deal), and could also end up taking about 156,000 square feet of space.

Amazon is expected to move into the space in 2015 after the tower is completed, and it's speculated that the company's entrance into the area could create anywhere from 100 to 1,000 new jobs in Vancouver. When completed, Telus Garden will consist of two buildings: a 53-story residential tower and a 24-story commercial tower, plus retail space.

In a statement emailed to BCBusiness, Mayor Gregor Robertson said, "Amazon creating such an impressive number of new jobs represents a major boost to Vancouver's economy and our city's fast-growing technology sector. This news is yet another strong example of how Vancouver is emerging as an innovation powerhouse."

For more news and information visit Blumberg Capital Partners.

REITs See Increasing Demand for Office Leasing Deals

In a new article from CoStar Group, notes from recent earnings conference calls reveal that REIT landlords have made special note that they see demand for 2014 office leasing deals increasing. CoStar Group reported that the overall U.S. office vacancy rate continued to decline, dipping from 12.7% at mid-year 2012 to 12.1% as of June 30, 2013, and projected to move steadily toward a 10.5% - 11% vacancy range by 2016. Some quotes on the state of the markets from industry leaders follow:

"I think [recovery] is probably a little early for the suburbs," said Marc Holliday, CEO of SL Green Realty Corp. "The financing markets are still not terribly liquid and the sale markets -- there's not a lot of transaction activity. So we're still in a hunker-down mode out there, trying to block and tackle and do as much leasing as we can in some very challenging markets."

"We continue to see demand for new properties in strategic location," said Steve Budorick, executive vice president and COO of Corporate Office Properties Trust. "Our development leasing goal for 2013 was 400,000 square feet. We did 100,000 square feet in the first quarter and over 460,000 square feet in the second quarter alone, putting total development leasing for the year well over a half of million square feet."

"Most office construction that is occurring is build-to-suit, but that varies by market. The strongest markets, such as San Francisco, San Jose and Houston, are seeing speculative construction due to a lack of suitable space available in the market," said Andrea Cross, national office research manager for Colliers International. "We also are seeing tenants in industries in which the competition for talent is fierce, notably tech and energy, building high-quality office space with amenities to attract and retain workers."

"You're seeing a greater number of smaller type deals at $100 a square foot being done than at any time in the past. You're seeing an improving national economy and a very strong local economy," said Steven M. Durels, executive vice president and director of leasing of SL Green Realty. "So I think the fundamentals are there and it's at a point in time that job growth continues to get us to a point of supporting the demand that we'll enjoy that spike in rents."

For more news and information visit Blumberg Capital Partners.

Titanium Secures $50M Loan to Expand Federal Government Portfolio

Colliers International's Government Solutions Group announced that it had facilitated the closing of a $50 million portfolio loan for Titanium Real Estate Advisors. The 14 property portfolio covers 375,726 square feet of space leased in its entirety to the Federal Government. Todd Taylor, Managing Director of Capital Markets at Colliers Government Solutions, placed the loan.

"Todd and his team secured an outstanding loan for Titanium on a diverse portfolio of General Services Administration (GSA) assets," said Kris Jankowski, Vice President at Titanium. "By facilitating this loan in the current low-interest environment, Colliers is playing an integral role in Titanium's ongoing strategy to expand its GSA portfolio."

Titanium Real Estate Advisors is a division of Titanium Asset Management, a professional asset manager to various Taft-Hartley pension plans. The portfolio includes properties in Alabama, Kentucky, Louisiana, North Carolina, Indiana, Michigan, Wisconsin, Arizona, Texas, Montana and Washington. Colliers International is the property manager for five of the assets.

For more news and information visit Blumberg Capital Partners.

RXR Buying Leasehold at 75 Rockefeller Plaza

RXR Realty has agreed to acquire a 99-year leasehold interest in 75 Rockefeller Plaza, taking control of leasing and management of the 630,000 square-foot tower. According to a Bloomberg report, RXR Realty has positioned itself as a major player in the New York office market, with this transaction bringing their Manhattan portfolio to 6.5 million square feet, all acquired since 2009. "They have been super-active," said Joseph Harbert, eastern regional president of Colliers International, a commercial-property brokerage that isn't involved in the deal. "They seem to be the kinds of guys who want to hold onto these assets and not flip them. They're buying long-term projects."

Late last year, Mohamed Al Fayed, the building's owner, placed 75 Rockefeller Plaza on the market, hiring an investment sales team from Cushman & Wakefield to market the property, offering a leasehold interest instead of an actual ownership stake in the tower. In September, RXR Realty moved into the lead in the auction to take control of 75 Rockefeller Plaza, which would allow the buyer to rent the skyscraper long term, according to a Commercial Observer article. Bloomberg's source noted that RXR has plans to execute a complete renovation that could cost more than $100 million, and would have tenants vacate the building by September 2014 to execute the improvements, which should be completed by the third quarter of 2015.

75 Rockefeller Plaza, also known as the Esso Building and Time Warner Building, was completed in 1947, and at the time was the tallest completely air-conditioned building in New York City. The 33-story skyscraper is fully leased to Time Warner, but the company's commitment there expires in 2014.

For more news and information visit Blumberg Capital Partners.

Colliers International Adds 1M SF to Leasing Portfolio

Commercial brokerage Colliers International has added eight new properties to its leasing portfolio, vaulting its Dallas offerings by 1 million square feet of office space. According to a Dallas Business Journal article, Colliers International's Dallas office leasing team, led by David Quisenberry, and including Chris Lipscomb and Michael Carmichael, recently won the leasing assignment for Galleria Office Towers, a three-building, 1.4-million-square-foot property.

"This presence enables our brokers to have more submarket insight and a deeper pulse on Dallas industry trends," said David Quisenberry in a written statement. The eight buildings include:

LBJ Financial Center at 5520, 5550, and 5580 LBJ Freeway totaling 360,921 square feet
Toll Hill Office Park at 5310 and 5440 Harvest Hill totaling 239,049 square feet
A medical office building at 7515 Greenville Ave., totaling 121,440 square feet
One Hillcrest Green at 12700 Hillcrest Road totaling 105,000 square feet
An office building at 16980 North Dallas Parkway totaling 62,742 square feet
International Technology Center at 4240 International Pkwy. totaling 118,238 square feet

For more news and information visit Blumberg Capital Partners.

Apple Picks Up More Than 1 Million SF in Sunnyvale

Technology giant Apple has made moves in Sunnyvale, CA, picking up more than 1 million square feet of new office space that could accommodate as many as 5,000 employees. As the company continues to outgrow its space in Cupertino, Apple continues to lease new space and has, so far, agreed to lease a total of 1.2 million square feet in Sunnyvale according to city records and real estate brokers involved in the deals.

"It's a remarkable growth spurt for Apple," said Jim Beeger, senior vice president with Colliers International, a commercial realty brokerage, in a San Jose Mercury News article. "This is a 30-year-old company undergoing the type of explosive expansion that you see with a three-year-old startup."

"Cupertino is pretty much filled up because of Apple's growth, much like Mountain View is pretty much filled up because of Google," said Phil Mahoney, an executive vice president with realty firm Cornish & Carey Newmark Knight Frank. "Both Google and Apple need more room. Both of them decided to find space in Sunnyvale."

"As I look at my iPad and check my iPhone, it really strikes me how much Apple has been able to achieve and how they have remade themselves," said Reed Payne, an executive vice president with Kidder Mathews, a commercial realty firm. "The future is not only bright for Apple, but the future bodes well for all of Silicon Valley."

For more news and information visit Blumberg Capital Partners.