Dallas' Galleria Towers Sold to CBRE

California-based Cannon Commercial Inc. has sold the three-building Galleria Towers office complex in Dallas, Texas to CBRE Strategic Partners U.S. Value 7, a fund managed by Los Angeles-based CBRE Global Investors. The sale is likely to be the largest in North Texas this year, with a sale price expected to total more than $300 million, according to a Dallas Morning News report today. "This will likely be the largest office sale in D-FW this year," said CBRE's Gary Carr who brokered the transaction along with John Alvarado, Eric Mackey and Robert Hill. "Galleria Towers is one of the most recognizable office projects in the Southwest."

The sale price would closely mirror the $300 million Cannon Commercial paid for the property in May 2008 when it was reportedly fully occupied. Prior to that, Fortis bought the Galleria Towers for $285 million from The Blackstone Group in November 2006, which acquired them from Trizec Properties. Terms of this week's deal have not been disclosed.

"This is a great asset in a great location and it has been like that for a long time," added Walter Bialas, vice president and market research director for JLL's Dallas office. "With the LBJ Expressway construction completing, I think there is a good upside for those assets. They have easy access in a good location with good visibility."

Located at 13355, 13455 and 13155 Noel Road adjacent to the Galleria Mall and built in the 1980s and early 1990s, the 1.4 million square foot Class A office complex was 70% leased at the time of sale, with one large tenant is exiting soon. Colliers International, the leasing broker for the Galleria Towers, has been working with the landlord on plans to re-lease the FedEx Office space, which is expected to leave eight floors totaling about 200,000 square feet at Three Galleria Tower at 13155 Noel Road upon completion of its new headquarters campus in West Plano within the $2 billion, 240-acre Legacy West development. CBRE Global Investors plans to invest heavily in the property adding its signature 5-Star Worldwide service and amenity program, including conference facilities, a fitness center, and enhanced on-site tenant amenities, in each building.

For more news and information visit Blumberg Partners.

Invesco Acquires SSF Logistics Center

Invesco Real Estate has purchased the SSF Logistics Center in South San Francisco from a partnership of New York City-based Angelo Gordon & Co., Lafayette-based Orchard Partners and Chicago-based Centrum Properties. The property was brought to the market for sale in May, and brokered by Cassidy Turley/BT Commercial. While the terms of the deal and final sale price were not disclosed, industry sources say the property would have sold for around $120 million, according to a report from The Registry.

"The team of Orchard, Cassidy Turley and Centrum brought to bear decades of industrial investment, leasing, entitlement, construction and management expertise, as well as deep locale market relationships and perspectives, on this project. Following a yearlong re-entitlement and redesign for a major logistics company, we are thrilled to consummate this sale to Invesco," said Steve White, a managing director with Angelo Gordon in a prepared statement.

"SSF Logistics Center has been thoughtfully conceived, and on a fully renovated basis has been transformed to a state-of-the-art logistics facility. This is something rarely found on the Peninsula," says Tyler Higgins, managing partner of Orchard Partners.

The SSF Logistics Center has two separate buildings covering 26 acres located along the west side of 101 and north of US 380 at 1070 San Mateo Avenue. The 453,076 square-foot warehouse building is 93% leased to Federal Express with a recently signed lease that expires in 15 years with two five-year extension options, with the General Services Administration taking up the remainder of the building for the Drug Enforcement Administration. The second 9,240 square foot building offers retail/cafe/business services space and is currently under construction, with an expected delivery date sometime this December.

For more news and information visit Blumberg Capital Partners.

One Liberty Picks Up Four Properties for $54.1M

One Liberty Properties, a New York-based real estate investment trust, announced this week that it had completed the acquisition of four new properties for a total of $54.1 million. In order to close the acquisitions, One Liberty borrowed $23.5 million from its credit facility, which reportedly represents the current balance outstanding under its $75 million facility. The properties include:

- An approximately 700,000 square foot industrial facility located in Fort Mill, South Carolina, purchased for $39.2 million. The building serves as a principal distribution center for Northern Tool & Equipment Company, which has a lease on the property through April 2029.

- A 125,600 square foot distribution facility in Indianapolis, Indiana for approximately $9.7 million. The building is leased to FedEx until February 2023.

- Two restaurants: one in Ann Arbor, Michigan for $2.98 million, and another in Myrtle Beach, South Carolina for $2.64 million. The Ann Arbor property is leased until March 2027 and the Myrtle Beach location expires in February 2023.

One Liberty estimates that the rental income in 2014 from these four properties will be approximately $4.08 million. Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty, stated, "The closings of these transactions further exemplifies the continued execution of our strategy to selectively identify and add valuable assets to our portfolio. With approximately $101.3 million of successful acquisitions since the beginning of 2013, One Liberty is building on the initiatives we implemented to drive rental income, cash flow and to increase stockholder value in the years to come."

For more news and information visit Blumberg Capital Partners.

AEW Acquires $340M Flagler Station Industrial Portfolio

AEW Capital Management, on behalf of AEW Core Property Trust, the firm's core real estate fund, has completed the purchase of Flagler's 4.2 million-square-foot Flagler Station for $340 million, or $81 a square foot, according to the Miami Herald. Flagler Station is South Florida's largest business park, located in Miami-Dade County's prolific industrial Airport West submarket and totaling 33 buildings. The complex is home to tenants including Ryder Systems, Lagasse, FedEx and Brightstar. Under the terms of the deal, Flagler, which is owned by Fortress Investment Group, will retain management and leasing duties on the property for three more years.

"Given the performance of Miami's industrial market over the last 12 months, we were certain that a Class-A portfolio with such critical mass would garner serious interest from institutional investors," said Vincent Signorello, President of Flagler.

"AEW has a long history of investing in Southeast Florida, and this latest acquisition illustrates our belief in the strength of the Miami/Medley market, which services the Port of Miami, Miami International Airport and Port Everglades," said Dan Bradley, Senior Portfolio Manager for the AEW Core Property Trust.

For more news and information visit Blumberg Capital Partners.