TMG, Fortress Sell 3 California Office Buildings for $122M

San Francisco-based TMG Partners and New York-based Fortress Investment Group have sold its remaining properties at Champion Station in San Jose, California to an institutional real estate investor for $122 million,or about $435 per square foot, according to the deed on the sale of the property. Eastdil Secured represented both the sellers and the buyer, which goes by the name TCSP LLC and is an entity related to Michael Milken, according to county records. The three buildings totaling 287,371 square feet were the final properties to be sold off in an eight building portfolio that TMG and Fortress purchased from Cisco Systems in 2013. The transaction's sale price in 2013 was not disclosed, but multiple sources said the cluster of buildings was expected to trade in the neighborhood of $190 per square foot, or roughly $154 million.

"North San Jose, and its amenity-rich environment, continues to attract technology companies both locally and internationally," said David Cropper, TMG Partners Director of Development. "Our strategy at Champion Station had been to complement the mixed-use campus setting with onsite improvements designed to encourage innovation, collaboration and healthy lifestyles for prospective tenants and their employees. Our ability to secure quality tenants and to close this final transaction is proof positive of the demand technology tenants have for health-driven offerings, coupled with the amenities of nearby residential, retail, entertainment and transportation options."

The three buildings at 190, 210 and 230 West Tasman Drive were leased last year to tech companies Silver Spring Networks and ForeScout Technologies are are currently 100% occupied. Cropper told GlobeSt.com: "All the new tenants at our renovated Champion Station have been drawn to the location, our thoughtful renovations and access to the amenities that make the community here so livable. Hence they are all high-quality companies whose employees demand these benefits that inspire collaboration and innovation."

For more news and information visit Blumberg Partners.

Hines Sells Wilshire Office Tower for $225M

Douglas Emmett, Inc., a California based REIT, in partnership with Qatar Investment Authority (QIA) announced the acquisition of a Class A office building in Los Angeles for $225 million, or $616 per square foot. The 19-story building was sold by a fund managed by Hines; Hines acquired the property from Deutsche Asset & Wealth Management for the same amount in 2007 on behalf of its U.S. Office Value Added Fund II, L.P. Douglas Emmett will manage the joint venture and expects to retain a 20% to 30% equity interest, with the remainder held by institutional partners. Eastdil Secured handled the transaction.

Designed by Tracy Price Associates, 12100 Wilshire Boulevard was completed in 1985 and is located at the intersection of Wilshire Boulevard and Bundy Drive in the Brentwood submarket of West Los Angeles. The building features ocean views starting from the second floor, outdoor balconies on the top two floors and an above-market parking ratio. Including known move-outs, the property will be 77% leased at the time of closing, with major tenants including Baum Hedlund Aristei & Goldman, Akana (formerly SOA Software Inc.) and Regus.

For more news and information visit Blumberg Partners.

Onni Group To Buy LA Times Building, Planned Conversion

Vancouver-based developer Onni Group has entered into a preliminary agreement to buy the Los Angeles Times building at 202 W. 1st Street from Tribune Media, with plans to redevelop the art deco-era landmark into modern offices and retail. Tribune Media first noted the deal that was in the works in a previous earnings press release, without disclosing the sale price; the landmark is worth more than $100 million, according to real estate experts cited by the Times. In the same press release, Tribune noted that a 2015 arranged deal to sell the property already fell through earlier this year, and while the Onni deal could still fall apart, Onni has progressed further in the sales process than the previous potential buyer. Eastdil Secured is representing Tribune Media in the deal.

"They [Onni Group] are really big believers in the future of downtown," said Justin Weiss, a senior associate with Kennedy Wilson, who was not involved in the deal. The Canadian real estate company has already made moves in the Los Angeles market, where it owns a Beaux Arts loft building on 8th Street, a 1926 office tower on 9th Street and three more modern office buildings in the area. The person familiar with the Los Angeles Times deal said Onni is interested in redeveloping the property into a collection of modern offices, retail and possibly some residential units. The newspaper still has a lease on the property until 2018, with two consecutive five-year options.

For more news and information visit Blumberg Partners.

Boston Properties Grabs Santa Clara Office for $78M

In the company's public release of Q1 2016 results, Boston Properties disclosed the acquisition of 3625-35 Peterson Way in Santa Clara, California for approximately $78 million in cash. Boston Properties purchased the 15-acre site from Eaton Vance Management, a wholly owned subsidiary of Eaton Vance Corp., which paid $53 million (or $243 per square foot) for the property in March of 2008. The deal was facilitated by Eastdil Secured, but terms were not disclosed.

Originally built in 1979, the 218,400-square-foot building flex building has office, laboratory and warehouse space located 10 minutes from the Norman Y. Mineta San Jose International Airport. The property was 100% leased at the time of sale to Spectra-Physics, a manufacturer of semiconductor-based lasers and laser optics (and a subsidiary of Newport Corp.) that moved its headquarters to Peterson Way in 2009; the lease does not expire until March 2021. Boston Properties indicated that after the lease is up, it plans to develop the site into a Class A office campus containing an aggregate of approximately 632,000 net rentable square feet. The projected cost for the future development is around $700 per square foot, and the expected initial return once the project is finished is 7%.

For more news and information visit Blumberg Partners.

DC's Watergate Office Building Up for Sale

A nearly-fully occupied Watergate Office Building is up for sale as Eastdil Secured has been retained to market the globally-recognized property. Washington, DC-based investment company Penzance is selling the property at 2600 Virginia Ave. NW after acquiring it for $76 million in 2011 from a group led by BentleyForbes, a private Los Angeles-based investor in high-end office buildings; prior to that, it traded from TrizecHahn Corp. to BentleyForbes' group in 2005 for $84.5 million. The offering comes as $125 million in renovations to the Watergate Hotel wrapped up last summer when the hotel was reopened. The building is not listed for a specific price.

The 11-story, 198,000-square-foot office building was still new in 1972 when thieves broke into the sixth-floor offices of the Democratic National Committee, alerting a security guard and beginning a chain of events that drove Nixon from the presidency and gave the building's name to the historic scandal. When BentleyForbes purchased the office building in 2005, it issued a press release saying, "the underlying market fundamentals, stable tenant base and quality of the asset made this investment a strong addition" to the company's portfolio.

In mid-2012, Penzance began a multimillion-dollar upgrade to the Watergate Office Building's lobby, common areas, and Virginia Avenue entrance. The modernization was complete in December 2012, and the building began leasing space again in January 2013. Penzance decided to offer the building for sale after boosting occupancy from 45% to more than 90%, said Penzance Senior Vice President Matt Pacinelli.

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Jamestown Buys Buys 49% Stake in Manhattan Towers

Atlanta-based real estate investment & management company Jamestown LP has acquired a 49% joint venture stake in ownership of two office properties in Manhattan in two separate deals that are among the first big commercial property deals in the city of 2016. While terms of the deals were not disclosed, the transactions value the buildings at about $1.15 billion combined, or roughly $710 a square foot. George Comfort & Sons and Loeb Partners Realty together will retain a majority interest in the assets. Doug Harmon, Adam Spies, Adam Doneger and Josh King of Eastdil Secured acted as the exclusive financial advisors for the transaction.

"The strong occupancy rates of these assets is a clear indication that we are joining with a proven operator with a demonstrated track record in New York City," Michael Phillips, president of Jamestown, said in a statement. "We have immense respect for the George Comfort & Sons and Loeb Partners Realty team and look forward to our new partnership."

"Jamestown is extremely well regarded for its investment in high-quality assets and we are delighted to have them as a strategic partner," said Peter Duncan, CEO of George Comfort & Sons. "Likewise, we are pleased to continue our relationship with longtime partner Loeb Partners Realty. We look forward to this new collaboration, which will only strengthen these already successful properties."

The first office tower, 200 Madison Avenue, is a 26-story, 750,000 square foot building that is 99% leased to 20 tenants, including apparel maker PVH Corp. and Greater New York Mutual Insurance. The second building, 63 Madison Avenue, is a fully leased 15-story, 870,000 square foot building where New York Life Insurance Co. and CBS Corp. lease space.

For more news and information visit Blumberg Partners.

Exeter Sells US Industrial Portfolio for $3.15B

Industrial property specialist Exeter Property Group announced that it has sold a 58 million square foot portfolio of core industrial properties to a joint venture of Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Public Sector Pension Investment Board (PSP Investments), one of the largest Canadian pension investment managers, for $3.15 billion. Terms of the deal were not disclosed, though press releases noted that Exeter invested in the joint venture and will also continue to manage the purchased properties. Exeter was represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Silverang, Donohoe, Rosenzweig & Haltzman, LLC, while ADIA was represented by Kirkland & Ellis LLP, and PSP Investments was represented by Davies Ward Phillips & Vineberg LLP and Torys LLP.

The deal is one of the largest industrial real estate transactions of the year, with 209 high-quality industrial assets located in 25 key distribution markets throughout the United States, most of which are modern bulk warehouses that provide critical infrastructure supporting both e-commerce and traditional retailers, suppliers and wholesalers. Among the other mega industrial portfolios that traded this year involved Blackstone Group completing an $8 billion sale, Prologis in a $5.9 billion acquisition and Industrial Income Trust selling its properties for 4.5 billion, according to a Philadelphia Business Journal article. The portfolio was marketed by Eastdil Secured and CBRE.

"We are very pleased to have concluded the sale of this exceptional portfolio of industrial properties on behalf of our investors. ADIA and PSP Investments are two of the most highly-regarded international real estate investors, and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad," said Ward Fitzgerald, Chief Executive Officer of Exeter, in a press release.

Neil Cunningham, Senior Vice President, Global Head of Real Estate Investments at PSP Investments, added: "PSP Investments is pleased to have secured this attractive and complex investment opportunity, demonstrating our agility and capacity to move quickly alongside great partners. This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon."

For more news and information visit Blumberg Partners.

Hudson Pacific Sells Burlingame Office Complex for $90M

Los Angeles based Hudson Pacific Properties announced this week that it had sold the Bay Park Plaza office complex outside of San Francisco in Burlingame, California to H&Q Asia Pacific for $90 million in an all-cash transaction. H&Q Asia Pacific is an Asian private equity firm founded in 1986 by Ta-lin Hsu as a branch of the investment bank Hambrecht & Quist. Eastdil Secured represented Hudson Pacific and Alain Pinel Realtors represented H&Q Asia Pacific in the transaction.

The property was part of the larger San Francisco Peninsula and Silicon Valley portfolio, which Hudson Pacific had acquired from Blackstone Real Estate Partners V and VI, in a stock-and-cash deal worth $3.5 billion, in the first half of 2015, according to a Zachs report. Hudson Pacific said that it's using proceeds from the transaction to pay-down a portion of its $550 million two-year term facility.

"By selling Bay Park Plaza, we're disposing of a non-strategic asset at a premium to our original purchase price allocation as part of the Blackstone portfolio," said Victor Coleman, Chairman and CEO of Hudson Pacific Properties. "The transaction highlights our ability to generate additional value from these newly acquired properties, and is another sign of the Bay Area economy's strength."

The 260,183-square-foot Bay Park Plaza office property (renamed GIC Burlingame Bay) includes two Class A office buildings at 555 Airport Boulevard and 577 Airport Boulevard in Burlingame on a 13-acrew waterfront site two miles away from the San Francisco International Airport. According to a press release from Hudson Pacific, Virgin America occupies the majority of 555 Airport Boulevard, which serves as its corporate headquarters, though the overall property occupancy rate was not disclosed. H&Q Asia Pacific noted in its press release on the transaction that the property will be a hub for technology companies offering its members and tenants the opportunity to "benefit from the disruptive technology innovation, entrepreneurial experience, and human capital of the Silicon Valley through a platform of advisory services, programs, and commercial and strategic partnership opportunities."

Dr. Ta-lin Hsu said, "I am very pleased to announce the next step in the development of the Global Innovation Center. This project represents the culmination of 30 years of cross-border technology investments by H&QAP and our portfolio of relationships with governments, technology parks, leading technology companies, financial and academic institutions and technology service providers. Our goal is to create a unique ecosystem to foster innovation and provide growing technology companies with access to crucial relationships and value-added services. H&QAP plans to continue exploring opportunities to develop Global Innovation Centers in other technology centers around the world."

For more news and information visit Blumberg Partners.

Vanbarton Closes on 31 Penn Plaza

Vanbarton Group, a privately owned real estate investment and advisory firm launched last month by Gary Tischler and Richard Coles, completed the acquisition of 31 Penn Plaza in New York for $265 million. Savanna sold the 18 story, 450,000 square foot building after paying $130 million for the property in 2011, then adding around $20 million in capital improvements. Douglas Harmon, Adam Spies, Joshua King, Adam Doneger and Michael Saclarides of Eastdil Secured represented Savanna in the sale transaction, according to a citybizlist article. Attorneys Christopher Price and Adam Kopald of Goodwin Procter served as the seller's counsel.

"31 Penn Plaza has been a transformative case study that we are proud of," said Kevin Hoo, Managing Director at Savanna. "Savanna has significantly repositioned the property's infrastructure and tenant profile, and in the process, restored its attraction and reputation in a submarket that has experienced tremendous growth over the past few years. We are grateful to our entire team of partners and service providers who helped us achieve the turnaround."

"Landlords in these buildings are holding out for top dollar and can scrutinize the firms competing for their space more rigorously," said Bill Montana, Savills Studley's senior managing director in a prepared statement. "Class A tenants seeking 10,000 to 40,000 square feet, particularly those who are geographically flexible, have a wealth of options. Informed tenants who do not have a very limited geographical or floor requirement can take a calculated approach to leasing."

For more news and information visit Blumberg Partners.

Savanna Completes Sale of 100 Wall Street for $275M

Savanna closed on the sale of 100 Wall Street to Cornerstone Real Estate Advisers this week in a deal worth $275 million. Savanna originally acquired the 29-story office tower between Front and Water Streets in the Financial District in 2011 for about $120 million, adding about $25 million in capital improvements. Eastdil Secured's Douglas Harmon and Adam Spies brokered the sale on behalf of Savanna; terms of the deal were not disclosed.

"We are proud of the transformational change we achieved at 100 Wall Street," said Kevin Hoo, Managing Director at Savanna. "The incremental capital investment has significantly added to the property's future resiliency and repositioned it as a premier destination for a wide range of global, institutional quality tenants." In the past two years, Savanna leased over 355,000 square feet of space to several prominent businesses, raising the building's occupancy from 78% shortly after acquisition to 97% today. Major tenants include Lester Schwab Katz and Dwyer, Loeb Holding Corporation, Crenshaw Associates, and PCubed.

For more news and information visit Blumberg Partners.

Griffin & Signature to Merge into $3B Company

Griffin Capital Corporation announced that Griffin Capital Essential Asset REIT, Inc. ("GCEAR") had entered into a merger agreement with Signature Office REIT, under which Signature will merge with GCEAR in a stock-for-stock deal that creates an approximately $3 billion REIT with a combined 15.2 million square feet of office and industrial assets. The merger was unanimously approved by each REIT's respective Board of Directors, but is conditioned on formal approval by Signature shareholders, receipt of required regulatory approvals and other customary closing conditions, and is expected to be completed during the first half of 2015.

Commenting on the merger, Kevin Shields, Griffin Capital's Chairman and Chief Executive Officer stated, "As we look forward to the next phase of our lifecycle, we believe the additional scale, diversity and operating efficiencies that our combined portfolios will garner is paramount in driving additional stockholder value in the future. Earlier this year we sold all of the remaining capital stock in our follow-on offering, and once we fully invest this equity, we expect our total capitalization to exceed $3 billion upon stabilization."

Michael Escalante, Griffin Capital's Chief Investment Officer added, "We look forward to having Signature shareholders standing shoulder-to-shoulder with GCEAR and its management team, which has invested over $26 million of its own capital in GCEAR. We are excited about this opportunity and, in our opinion, a ‘win-win' scenario was engendered by the understanding that together we can accomplish more than we can apart."

Eastdil Secured represented Signature in the deal, and Houlihan Lokey acted as financial advisors to Signature. Robert A. Stanger & Co. provided GCEAR's board of directors with a fairness opinion for the transaction, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

Beaverton Corp Parks Sell for $160M

PS Business Parks, Inc., a Glendale, CA-based REIT focused on multi-tenant flex, office and industrial space, announced this week that it had completed the sale of two business parks in Beaverton, Oregon for $159.9 million. With representation from Eastdil Secured, PS Business Parks sold the properties to an unnamed buyer; terms of the deal were also not disclosed. After the sale, PS Business Parks has one remaining 102,000 square foot business park in Portland, Oregon, that it also intends to sell and, when complete, the company will no longer own assets in Oregon.

The first property, Cornell Oaks Corporate Center, was master-planned in 1982 and previously sold in 2002 for $87.5 million. The 12-building corporate park was the biggest deal of the year for Norris Beggs & Simpson in 2001. Talcott Realty I Limited Partnership had owned Cornell Oaks since 1995 and put it up for sale in November 2000. The second property, Creekside Corporate Park, is one of the largest business parks in the Portland metropolitan area with close to 525,000 square feet of Class A office and flex space. Occupancy of the portfolio at the date of sale was 89.6%, according to a press release.

For more news and information visit Blumberg Capital Partners.

Savanna Buys Manhattan Office Building for $261M

Savanna, in a joint venture with KBS Capital Advisors, announced this week that it had purchased 110 William Street from Swig Equities and the Dubai Investment Group for $261 million, or $281 per square foot. Terms of the deal were not disclosed, but press releases did indicate that Savanna was represented by Laurie Grasso and Susan Saslow of Hunton & Williams in the acquisition and Carl Schwartz of Hunton & Williams in the joint venture with KBS Capital Advisors.

"Our acquisition of 110 will accelerate the positive transformation of William Street that is occurring as institutional firms continue to buy and upgrade many of the adjacent properties," said Nicholas Bienstock, a managing partner at Savanna, in a statement. "By investing in and improving the building, we expect to attract the same diverse group of tenants that we have been able to attract to our other Downtown properties."

The 32-story, 928,000 square foot Financial District tower is located in the heart of Lower Manhattan, with direct entry from its lobby to the subway and the future Fulton Center, a new major transit hub scheduled for completion late next month. Savanna said it plans to undertake a comprehensive capital improvement plan at the building, with Newmark Grubb Knight Frank leading leasing efforts, and Swig Equities providing property management services.

"It's an exciting time to be investing in Downtown Manhattan as the long transformation has arrived, with over $30 billion in capital invested in Downtown from both the public and private sector over the last ten years," said Adam Spies of Eastdil Secured, which served as exclusive advisors for the transaction. "As Downtown has become the epicenter of the region's vast pool of high-value, knowledge workers, the demand for office space continues to increase, evidenced by 22 percent year over year increase in rental rates as of first quarter 2014."

For more news and information visit Blumberg Capital Partners.

JV Buys Fort Greene Office for $195M

A joint venture between RXR Realty and American Landmark Properties announced earlier this month that it had acquired the long-term lease of a large office building at 470 Vanderbilt Avenue, near Barclays Center in Brooklyn. Starwood Capital Group and GFI Development Company closed on the sale of its 75-year ground lease at 470 Vanderbilt for $195 million, according to a CoStar report. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale.

This week, Meridian Capital Group of New York announced that it had arranged a $142 million mortgage for the purchase of the property. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale. According to a report in CrainsNewYork.com, this is one of the largest acquisitions in the outer boroughs in recent times and yet another testament to Brooklyn's growing popularity.

"The 470 Vanderbilt Avenue acquisition represents an opportunity for us to buy a building with healthy current returns generated by credit tenants, while also participating in the amazing transformation that is taking place across Brooklyn," RXR chairman/CEO Scott Rechler said in a statement. The deal is RXR's first New York City acquisition as part of its New York Metro Emerging Sub-Market initiative, which focuses on undervalued neighborhoods that are well-positioned geographically and demographically with strong infrastructure in New York City's outer boroughs and suburban downtown districts located around transit hubs.

The 10-story, approximately 650,000-square-foot property was 88% leased at the time of sale with tenants including the City of New York and The League Education & Treatment Center, a 50-year old, internationally-recognized, not-for-profit organization serving children and adults with developmental disabilities. The building is also occupied by media and technology tenants, Aereo and Switchnet, and a state-of the-art, self-sustaining data hub for technology and telecommunications companies.

For more news and information visit Blumberg Capital Partners.

Oxford Properties Buys 450 Park Avenue for $575M

Oxford Properties Group, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS), announced this week that it had agreed to pay $575 million for 450 Park Avenue. Somerset Partners and the Michael Tabor family trust, which has owned and operated the building since 2007, sold the 33-story building to Oxford; terms of the deal were not disclosed. According to a New York Times article, the sale is one of the highest prices ever paid for a Manhattan office building at over $1,700 per square foot.

"We felt comfortable investing a large amount of cash in this quality location and asset," Keith Rubenstein, a Somerset founder, said in an e-mail to Bloomberg. "The thinking back then was this location was bulletproof, would withstand any downturn in the market and value would recover faster. Looking back, I guess we were right."

"A lot of pension funds, Asian companies, sovereign funds and other investors are increasing their allocations for real estate," said Douglas Harmon of Eastdil Secured, the broker on the Park Avenue deal. "If you do that, the first place you want to be is Manhattan."

Formerly known as the Franklin National Bank building, 450 Park Avenue was built in 1972 by Emery Roth and Sons and renovated in 2007 when Somerset Partners purchased the property for $509 million. As noted by the NYT, Oxford is betting that the property will become more valuable when the developer Harry Macklowe completes the tallest residential tower in the Western Hemisphere, a 1,398-foot skyscraper next door at 432 Park Avenue.

For more news and information visit Blumberg Capital Partners.

Bay Area AT&T Campus Sold for $250M

In a joint venture with MetLife Inc., Sunset Development Company has purchased the two million square foot AT&T campus in San Ramon — that it originally sold as an undeveloped property to Pacific Bell in 1983 — for more than $250 million in a sale-leaseback deal. AT&T has agreed to remain a tenant in about the half of property at 2600 Camino Ramon in San Ramon where it will continue operating its regional headquarters; the length and terms of the lease were not disclosed. Sunset Development also has plans to develop City Center, a 500,000-square-foot shopping and entertainment development with 500 housing units, across the street from the AT&T building, according to a San Francisco Business Times article.

"This acquisition recaptures a well-developed property in the heart of Bishop Ranch," said Alex Mehran Jr., president and chief operating officer of Sunset Development Company. "It provides us with a significant lease from AT&T along with one million square feet of office space that is available and of the highest quality in the Bay Area. Over the longer horizon, the project's adjacency to Bishop Ranch's City Center and San Ramon's North Camino Ramon Specific Plan area provides numerous master-planning opportunities that will benefit all tenants and visitors of Bishop Ranch."

Dallas-based AT&T said last year that it's open to the sale of some of its peripheral assets, including wireless towers, according to a Businessweek article. Sunset Development and New York-based MetLife, the largest U.S. life insurer, plan to redevelop the complex to attract additional tenants starting this year. The sale was financed by Wells Fargo, with Eastdil Secured advising Sunset Development on the acquisition and in arranging debt and equity capitalization.

For more news and information visit Blumberg Capital Partners.

Time Warner Sells Manhattan HQ for $1.3B to Related Cos.

Time Warner Inc. announced this week that it had sold its 1.1 million square foot headquarters building in Manhattan for $1.3 billion to a venture of Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and GIC in a sale-leaseback deal. While Time Warner will continue to lease its current office space until early 2019, the company has plans to relocate to 30 Hudson Yards in the office development by Related and Oxford Properties Group, expecting to acquire more than one million square feet and occupy the space by the end of 2018. Eastdil Secured's Douglas Harmon, Adam Spies and Kevin Donner represented Time Warner in the transaction with the Abu Dhabi fund. Studley is representing Time Warner and CBRE is representing Related and Oxford with respect to Time Warner's planned acquisition of space in Hudson Yards for its new corporate headquarters.

"We see significant upside in leasing the high quality office space following Time Warner Inc.'s planned relocation to 30 Hudson Yards. We believe strong demand for this first-rate office property will translate into a stable income stream which suits GIC as a long-term investor," said Tia Miyamoto, regional head of Americas at GIC Real Estate. "Time Warner Center is one of the premier mixed-use projects in the country."

Oxford Chief Executive Officer Blake Hutcheson said, "Time Warner has shown incredible vision not only in its core business of storytelling, but also in its commitment to establishing a collaborative and creative space. We are very excited to partner with Time Warner alongside Related, and to deliver a business community in which Time Warner will simply thrive."

Time Warner Center is a 2.8 million-square-foot mixed-use complex at the southwest corner of Central Park, which, in addition to office and flex space, also houses a Mandarin Oriental hotel, Jazz at Lincoln Center and some of the city's most expensive condominiums. The long-anticipated Time Warner Center purchase works out to about $1,182 per square foot, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

Invesco Buys San Francisco Office Tower from Hines

Invesco Real Estate closed this week on the purchase of 101 Second Street in San Francisco, a 26-story office tower at Second and Mission streets, from a subsidiary of the Hines U.S. Core Office Fund LP. While financial terms of the deal or a definitive sales price were not disclosed, a source familiar with the deal told Bloomberg that the building traded hands for $291 million, which, at $750 a square foot, would make it San Francisco's most expensive deal for a stabilized office property in the past year. The sales price is nearly 10% higher than the price tag that the seller was targeting, according to market sources.

"It was a very competitive process but an asset we think makes a lot of sense to own long-term as this location and quality is rarely found in San Francisco," Greg Kraus, a managing director at Atlanta-based Invesco, said in an e-mail. He declined to comment on the price. 101 Second Street is roughly 90% leased, with major tenants including Reed Smith LLP, Ziff Davis Media Inc., Nexant Inc. and wealth management firm Aspiriant.

Hines, in partnership with Sumitomo Real Estate of Japan, originally acquired the property along with its companion building at 55 Second Street for $282 million from a Cousins Properties partnership in 2004. According to a San Francisco Business Times article, the two buildings were developed together, and are two of the strongest assets in a portfolio that is being recapitalized. While Hines has retained Eastdil Secured to market 55 Second Street, some speculate that the strength of the 101 Second Street transaction may allow Hines to hold on to the second property.

"I would be very careful of buying anything above what it costs to build," said Ken Rosen of the the Fisher Center for Real Estate and Urban Economics at UC Berkeley, who suggested that area pricing had become a bit inflated. "It makes me uncomfortable that we are seeing that again in San Francisco. It's a mistake. You can't rely on interest rates staying low forever. There is no question in my mind that by 2017 we will have moved back to a 4 or 5 percent treasury bond. Maybe it won't happen as quickly as I think, maybe it will happen sooner. So if you are buying something based on 2.6 treasury, it's a mistake. You have to look at replacement costs."

For more news and information visit Blumberg Capital Partners.

DC's Thurman Arnold Building Sold for $505M

Manulife Financial Corp. moved forward with the sale of the Thurman Arnold building at 555 12th St. NW in Washington, DC as MetLife and a Norwegian pension fund manager have teamed up to pay roughly $505 million for the property. Manulife originally announced last May that it was seeking buyers for the building, having lost the law firm Arnold & Porter LLP as its anchor tenant. Manulife retained Eastdil Secured to market the 12-story building, which was assessed at $203.8 million, according to a Washington Business Journal article. The sale on the property — now assessed at $579.8 million, according DC's Office of Tax and Revenue — closed Wednesday morning as MetLife and Norges Bank Investment Management secured the property.

The 18-year-old Thurman Arnold Building encompasses a full city block in the East End, at the corner of F and 12th streets. The property is roughly 94% leased, but Arnold & Porter will be moving out of the 447,772 square feet it occupies when its lease ends in 2015. The building is named after the iconoclastic DC lawyer Thurman Arnold who cofounded Arnold & Porter along with Paul A. Porter and Abe Fortas.

For more news and information visit Blumberg Capital Partners.

Carlson Sells AZ Portfolio for $52.6M

Newport Beach, California-based Buchanan Street Partners announced this week that it had purchased a 446,000-square-foot portfolio from Carlson Real Estate Company for $52.6 million, or $118 per square-foot. Buchannan purchased the 10-building portfolio in four separate sale transactions which were represented by Eastdil Secured.

Carlson, which is affiliated with the family-owned Carlson Cos., announced in early 2012 it was planning to shed some of its 5.5 million square feet of commercial real estate holdings as part of a plan to move Carlson family wealth to new generations. The properties in this portfolio were 74% leased at the time of sale, and includes a mix of office, industrial, office flex and retail properties, eight of which are located in the Cotton Center, one of the most desirable master-planned business parks in Phoenix.

"Cotton Center provides tenants with abundant amenities, a central location and high-quality buildings," said Brian Payne, vice president at Buchanan Street Partners. "This is another example of Buchanan Streets' ability to identify investment opportunities and close in a timely fashion."

For more news and information visit Blumberg Capital Partners.