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.

Fortress, Mount Kellett Form Alliance

Fortress Investment Group, the New York City-based investment management company, and Mount Kellett Capital, a financial planner and multi-strategy investment firm on Park Avenue, announced that they have formed a strategic alliance to become co-managers of the Mount Kellett investment funds and related accounts. Financial terms of the transaction were not disclosed, but Fortress did indicate via press release that Mount Kellett affiliates would continue to serve as general partner of the funds while Fortress affiliates will become special limited partners. The Wall Street Journal reported that Fortress would invest $200 million in Mount Kellett's funds, while, PERE reported Tuesday that Fortress would effectively acquire the funds and Mount Kellett's operating platform.

"Fortress has a world class Credit business, with exceptional people, disciplined investment acumen, a deep understanding of our strategies and a strong institutional framework," said Mark McGoldrick, Chief Investment Officer of Mount Kellett Capital. "We are very pleased to be partnering with Fortress. Our investors will benefit from the access and support of a global operational platform and the combined asset management expertise of the Mount Kellett and Fortress teams across the distressed and special situations spectrum."

"We are pleased to join with Mount Kellett and their experienced team of investment professionals who possess deep knowledge of special situations and opportunistic investing," said Peter Briger, Jr., Fortress Investment Group Principal and Co-Chairman of the Board of Directors. "In addition, we have worked with Mark McGoldrick for decades and are pleased to be able to do so again."

For more news and information visit Blumberg Partners.

Fortress, Rockpoint Sell Majority Interest in Parkmerced

Fortress Investment Group and Rockpoint Group LLC have sold a majority interest in the Parkmerced redevelopment project in San Francisco to a group of New York investors in a deal said to value the 152-acre residential complex at more than $1.35 billion. The group of investors, by developer Mark Karasick, will now control the redevelopment of 8,900 units, with a groundbreaking slated for 2015 or 2016. According to the Wall Street Journal, Karasick's group invested nearly $200 million for "more than a 70 percent stake" in Parkmerced's owner, Parkmerced Investors Properties, a group led by New York real estate investor Robert Rosania, and including San Francisco's Fortress and Boston's Rockport Group.

"It means (the project) has successfully recapitalized and now is poised for an incredible future," said Parkmerced spokesman P.J. Johnston. "The speed won't be impacted — we're still set for a series of four phases. But with the finances in order and the legal challenges behind us, the path is clear."

"The upward surge in rents generally over the past three years forgives a lot of problems," said Patrick Carlisle, chief market analyst at San Francisco's Paragon Real Estate Group. "That San Francisco has the highest employment growth rate in the country also helps.

For more news and information visit Blumberg Capital Partners.

Miami Beach Shore Club Sold for $175.3M

A joint venture between Ziel Feldman's HFZ Capital Group an affiliate of Fortress Investment Group LLC has acquired the historic Shore Club hotel in South Beach from Philips International for $175.3 million, or about $544,000 per room. The acquisition, one of the most expensive hospitality deals in the South Florida market, was financed in part with the assumption of an existing $161 million loan held by a group of lenders led by Fortress Credit Corporation and a new $12 million loan from the same group of lenders, according to a CoStar report. Philips International will continue to be involved with the new ownership group, and Morgans Hotel Group will continue to manage guest operations at the property.

"We have an extraordinary, once-in-a-lifetime opportunity to re-imagine and reposition a world-class property in a market that has seen continued demand for luxury properties," said Ziel Feldman, Founder and Managing Principal of HFZ, in a press release this week. "The development of oceanfront real estate on South Beach has been fueled by an expanding market for business and tourism, accessibility to international airports and year-round warm weather," he added.

"With ongoing demand from domestic and international buyers for prime South Beach properties and with Miami Beach's increasing global significance as a tourist destination, we expect the luxury residential and hospitality markets to continue their dynamic growth," added Nir Meir, Principal and Managing Director of HFZ.

For more news and information visit Blumberg Capital Partners.

Walker & Dunlop Buying CWCapital for $220M

Walker & Dunlop, Inc. announced this month that it had entered into a definitive agreement to acquire its rival lender, CWCapital LLC, for $220 million. According to the company, $80 million of the purchase will be provided in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the company's stock price, and pending the expected closing within then next 3-4 months.

"We are thrilled to announce this acquisition. CWCapital is an exceptional company with an outstanding team and a corporate culture very similar to Walker & Dunlop's," commented Willy Walker, Chairman, President and CEO of Walker & Dunlop. "The combined company will be one of the largest commercial real estate lenders in the United States," Walker continued. "CW's people, credit discipline, and client focus are highly regarded throughout the industry. It's a wonderful accomplishment to bring these two fantastic companies together and create a true industry force."

CWCapital, is a subsidiary of CW Financial Services LLC, which is owned by Fortress Investment Group LLC. Founded in 1972 and with 180 currently employees, CWCapital lends money to multifamily, healthcare and commercial real estate industries and has in-house origination capabilities for Fannie Mae, Freddie Mac and life insurance companies.

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.