F4 Transbay Locks Down Last Super-Tall Building Site

F4 Transbay Partners LLC announced this week that it has closed on the acquisition of Transbay Parcel F from the Transbay Joint Powers Authority (TJPA), securing the last remaining site available for development of a super-tall building in downtown San Francisco. F4 Transbay Partners, a joint venture between Hines, Urban Pacific Development, Broad Street Principal Investments and Goldman Sachs, paid $175 million for the site on Howard Street, between First and Second streets, where it plans to build a 60-story, 750-foot-tall, mixed-use tower containing office space, a luxury hotel and residential units.

"With the sale of Parcel F, we will have sold more than $660 million worth of land to fund construction of the Transit Center," said Maria Ayerdi-Kaplan, executive director of the Transbay Joint Powers Authority. "The land sold for private development will also generate more than $1 billion in tax increment to fund the Transit Center." With the Parcel F sale, TJPA has the funding for Phase 1 of the Transbay project, having sold more than $660 million worth of land to fund construction of the Transit Center; according to a report from The Registry, private development will also generate more than $1 billion in property tax increment for the project.

F4 Transbay Partners also received an extra $15 million for the site because it was able to acquire a contiguous piece of privately owned land at 540 Howard Street, referred to as Block 4. "Our vision for Parcel F and Block 4 will create core located transit-oriented Class A office space, hotel rooms, and a substantial supply of affordable housing in the most dense and dynamic neighborhood in San Francisco. The success of our proposal would not have been possible without the combined efforts of F4, the TJPA, the OCII and the City,” Hines Senior Managing Director Cameron Falconer said in a press release.

"We are pleased to have this opportunity to develop one of the key buildings in the dynamic Transbay Project area,” added Mike Kriozere, Principal of Urban Pacific. "What we create will be an asset to this vibrant neighborhood, and we look forward to enhancing San Francisco and its skyline with our plans for a mixed-use tower on Parcel F."

F4 Transbay Partners has announced the project will be designed by Pelli Clarke Pelli Architects in partnership with the local office of HKS Architects, Inc., who will act as architect of record.

For more news and information visit Bluberg Partners.

Herndon Metro Plaza Sold for $44.5M

Radnor, PA-based Brandywine Realty Trust has sold Herndon Metro Plaza I and II in Herndon, Virginia for $44.5 million. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property and procured the institutional investor, Irving, Texas-based Archon Group, a Goldman Sachs affiliate; the complex was sold free and clear of existing debt. According to a BisNow report, Brandywine originally bought the property in 2005 for $51.5 million.

"The arrival of the Silver Line has been transformational for the Dulles Corridor, as tenants migrate to office properties surrounding existing and future Silver Line stations, driving strong positive absorption, decreasing vacancy rates and providing impressive rent growth," said Andrew Weir, senior managing director at HFF, in a press release. "Herndon Metro Plaza I and II are uniquely positioned to capitalize on this, with the asset's rollover profile ideally concentrated in the time period surrounding the planned opening of Phase II of the Silver Line. The asset will also be one of only 15 properties on the Toll Road with immediate walkability to a Silver Line Metrorail station."

Located at 196 and 198 Van Buren St., Herndon Metro Plaza I and II overlook the Dulles Toll Road, with regional connectivity by way of the Fairfax County Parkway, Routes 28 and 7, and the Washington Beltway (I-495). The four-story two building, 201,272 square foot Class A office complex is also immediately adjacent to the future Herndon Metrorail Silver Line Station. HFF said that the property was 91% leased at the time of sale.

For more news and information visit Blumberg Partners.

Symetra Financial Center Sold for $185M

Walton Street Capital of Chicago, a private equity real estate investment firm, has sold the Symetra Financial Center in Bellevue, Washington to Sterling Realty Organization for $185 million, or about $422 per square foot. Bellevue-based Sterling Realty Organization has, since the late 1950s, owned the land under Symetra Center as well as seven contiguous acres. Tom Gilchrist, President of Sterling Realty said, "We are excited to own a Class A building in Bellevue. It complements our downtown holdings and is a natural evolution in our recent growth." Full terms of the deal and representative agents were not disclosed by either company.

Walton Street Capital originally put the property on the market in 2014 as part of a large group of office buildings in the Puget Sound region, then again as a single listing in 2015. Walton Street originally took over ownership of the property along with ten other Seattle area assets when a Goldman Sachs-sponsored commingled fund defaulted on a $900 million mezzanine loan.

"We have owned this property for a while, and we have done a great deal of work on the asset to improve it over time. We think now is a good time to be a seller. There is a great deal of demand for both from tenants looking for space and for capital looking to buy assets in the greater Seattle marketplace," Eric Mogentale, a managing principal with Walton Street, said of the property last fall.

Symetra Financial Center, formerly known as Rainier Plaza, is a 25 story office tower in Bellevue's Central Business District. Built in 1986 and designed by McKinley Architects, the glass tower at 777 108th Avenue Northeast in Bellevue boasts 445,089 square feet of space, the top floor of which was occupied by The Harbor Club until 2014. Major tenants include Symetra Life Insurance Company, TD Ameritrade, Columbia Bank, Baird, MWBoone & Associates, LLC, and North Way Investments, Inc.

For more news and information visit Blumberg Partners.

Boston Properties' Back Bay MU Project

Boston Properties, Inc., an REIT that focuses primarily on the Boston, New York City, Washington, D.C., and San Francisco markets, and Whitehall Street Real Estate Limited Partnership IX, an affiliate of
Goldman, Sachs & Co., announced that they have submitted a letter of intent with Prudential Insurance Company of America to acquire the commercial property and development rights associated with the Prudential Center located in Boston's "Back Bay" office and residential neighborhood. MassDOT approved long-term leases of the four air and ground parcels at 145 and 165 Dartmouth St. to Boston Properties in December 2014; Boston Properties and Whitehall are seeking approval for development rights that would allow approximately 1.75 million gross square feet of new commercial construction, with two office buildings totaling 1.72 million net rentable square feet, a 477,000 net-rentable-square-foot retail complex and a parking garage with 2,700 spaces.

The letter is, of course, non-binding and doesn't ensure that an agreement will be reached to move forward with the companies' plans, but Prudential officials noted in a press release that the decision to move into exclusive negotiations now with Boston Properties and Whitehall was made for "strategic reasons." Brian Murphy, Managing Director for Prudential general account real estate investments, said, "From the beginning of this marketing process, we have been interested in alternatives to a straight cash sale. We believe in this property's potential for favorable investment returns well into the future, and we want to participate by retaining a stake -- directly, indirectly or both." David Raszmann, Prudential Vice President in charge of the property, added, "Prudential Center is indisputably the hub of Boston's Back Bay, and is one of America's best-recognized landmarks. Neither we, nor generations of Bostonians want that to be disrupted. The name Prudential Center will remain as part of the final deal."

For more news and information visit Blumberg Partners.

Water Ridge Office Park Sold for $115M

A partnership managed by Mainstreet Capital has sold Water Ridge Office Park in suburban Charlotte, North Carolina in a $115 million sale arranged by Holliday Fenoglio Fowler, L.P. (HFF). New York Life Real Estate Investors coordinated the acquisition of the 11-building, 844,958-square-foot, Class A office park on behalf of New York Life Insurance Company who purchased the portfolio. Mainstreet Capital Partners and Goldman Sachs Group Inc. listed the portfolio for sale this spring. The property previously traded hands in January 2013 when Archon Group, the real estate investment and management arm of Goldman Sachs Group Inc., together with Mainstreet purchased the office park from affiliates of TIAA-CREF for $75 million.

"Given Water Ridge's proximity to the airport, Downtown Charlotte and numerous residential areas, the park has experienced tremendous leasing demand and rents have climbed considerably over the last few years," said Ryan Clutter, Senior Managing Director at HFF, who represented the seller. "This well positioned office park received strong interest from institutional capital who continue to have a strong appetite for Charlotte opportunities."

The buildings at Water Ridge, formerly known as LakePointe Office Park, were 82% occupied at the time of sale with major tenants including The Vanguard Group, SunTrust Banks Inc., Carolinas HealthCare System, Publix Super Markets and Midrex Technologies Inc. Built between 1989 and 2001, the park has undergone an extensive renovation in the past year with updates to many of the lobbies, restrooms and elevators throughout the park.

For more news and information visit Blumberg Partners.

NJ ePort Logistics Center Sold to Bridge

Bridge Development Partners LLC, the Chicago-based real estate developer, has closed on a $62 million deal to buy a 103-acre industrial site called ePort Logistics Center in Perth Amboy, New Jersey. The spec property was sold by a joint venture between Goldman Sachs and Viridian Partners in a deal arranged by CBRE; full terms were not disclosed.

Bridge Development said it will start construction immediately on the three speculative industrial buildings, which will be known as ePort Logistics Center, with plans to deliver the buildings in 2016, according to a NJ Biz article. "We are excited to have the opportunity to acquire such a large tract of land in one of the busiest markets in the country,” Jeff Milanaik, principal at Bridge Development Partners, said in a press release. "The ability to construct 1.3 million square feet of distribution space on one property in such a mature market as New Jersey doesn't come along every day."

Once the site of an American Smelting & Refining Co. facility, Bridge expects the project, including the land purchase, to cost more than $150 million, according to Mr. Milanaik. The site is fully approved for the development of 1.3 million square feet of speculative class A warehouse and distribution space, featuring three buildings located at 980 High St., 1000 High St. and 960 High St., comprised of 718,200 square feet, 354,250 square feet and 220,200 square feet, according to a GlobeSt.com report. Viridian took 18 months to remediate the site, working with the Perth Amboy Redevelopment Agency, and delivered a pad-ready site for development.

"This project marks an industrial revival in Perth Amboy," added Mayor Wilda Diaz. "The creation of local job opportunities and the realization of new ratables are the primary goals of establishing a sustainable project that will continue to carry Perth Amboy into a prosperous future."

For more news and information visit Blumberg Partners.

Colony Combines Entities

Colony Financial, Inc. and Colony Capital, LLC have completed their combination -- the former previously being a subsidiary of the latter -- to merge and form Colony Capital, Inc., becoming an internally-managed real estate and investment management company with more than 300 employees in 14 offices around the globe. The transaction was approved by an overwhelming majority of its shareholders at the Special Meeting on March 31, 2015. The transaction included the formation of an umbrella partnership real estate investment trust (UPREIT) with a subsidiary operating partnership that holds all the assets and directly or indirectly conducts substantially all the business of Colony Capital.

"This combination allows Colony Capital to expand its unique global culture and brand by utilizing its strong balance sheet to create bespoke investment products and platforms in real assets and at opportunistic points in cycles and geographies," said Executive Chairman Thomas Barrack, Jr. in a statement.

"The transaction is seamless for Colony's employees," added Chief Executive Officer Richard Saltzman. "It is business as usual with minimal integration logistics as everyone already works together as a team, albeit previously across separate legal entities."

Morgan Stanley & Co. acted as financial advisor to the Special Committee of the Board of Directors of Colony Capital in connection with the transaction. Wachtell, Lipton, Rosen & Katz acted as legal advisor to the Special Committee of the Board of Directors in connection with the transaction. Hogan Lovells acted as legal advisor to Colony Capital in connection with the transaction. Goldman, Sachs & Co. acted as financial advisor to Colony Capital, LLC in connection with the transaction. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Colony Capital, LLC in connection with the transaction.

For more news and information visit Blumberg Capital Partners.

Cushman & Wakefield Buy Massey Knakal for $100M

In the bidding tournament to acquire Massey Knakal Realty Services, Cushman & Wakefield won out and has agreed to pay about $100 million to acquire New York's No. 1 Investment Sales firm (based on transaction volume) for more than a decade. The deal is expected to be completed by year's end; Cushman & Wakefield was advised in the acquisition process by Goldman, Sachs & Co. while Massey Knakal was advised by Perella Weinberg Partners.

Founded in 1988 by Paul Massey Jr. and Robert Knakal, Massey Knakal has closed more than 5,000 transactions in the New York area with a market value in excess of $21 billion. Earlier this year, the firm retained Perella Weinberg Partners to shop a minority stake or the entire firm to potential buyers, according to various media reports. In addition to Cushman, CBRE and DTZ were reported to be interested in the firm, according to a CoStar article.

"From the outside looking in, this is a great fit and opportunity for both firms to continue to grow and provide their clients with an added level of expertise on a global platform," said Ric Clark, Chief Executive Officer of Brookfield Property Partners and a member of Massey Knakal's Board of Advisors. "Paul and Bob are strong leaders joining a strong brand in Cushman & Wakefield, which resonates in the industry all over the world. I expect to see great things from this collaboration in the years ahead."

For more news and information visit Blumberg Capital Partners.

Colony & Woodridge Buy Ritz-Carlton Kapalua

Colony Capital and its affiliates including Colony Financial partnered with Michael Rosenfeld's Woodridge Capital Partners to purchase the Ritz-Carlton, Kapalua Resort this month. With acquisition financing provided by Deutsche Bank, the property was sold for an undisclosed price, but previous reports said that the hotel was expected to sell for more than $200 million.

Lehman Brothers Holdings, which had listed the 54-acre oceanfront property for sale with Jones Lang LaSalle last May, had planned to time the sale with Hawaii’s rising tourism numbers, according to a Pacific Business Times article. A joint venture of New York-based Goldman Sachs Group Inc. and Gencom Group bought the Ritz-Carlton Kapalua in March 2006 and renovated the property before defaulting in April 2009 on a $260 million loan from Lehman, as reported by Bloomberg.

"The combination of The Ritz-Carlton brand, a welcoming and nurturing Hawaiian culture and the nature and magic of Maui will make an unbeatable combination," said Thomas Barrack, Jr., Chairman and CEO of Colony Capital.

"We have great respect for the traditions of the islands," added Rosenfeld. "With its special character, remarkable location and precious natural resources, The Ritz-Carlton, Kapalua is a rare property that would be nearly impossible to duplicate today."

For more news and information visit Blumberg Capital Partners.

LakePointe Office Park Sold for $75M

Archon Group, an affiliate of Goldman Sachs, has finalized the purchase of LakePointe Office Park in Charlotte, North Carolina, for $75 million, or $110 per square foot. The seller, TIAA-CREF, was represented in the sale by Ryan Clutter, Patrick Gildea and Will Yowell of CBRE Group Inc. Jones Lang LaSalle also announced this week that it has been named leasing agent for the seven office buildings in LakePointe Office Park. Mainstreet Capital Partners will manage the LakePointe portfolio, which totals 675,398 square feet.

"Mainstreet Capital Partners is excited to work toward re-establishing LakePointe as the preferred office park in Charlotte," said Peter Tonon, a partner with Mainstreet. "The market fundamentals seem to be improving, and with some enhancements we would like to implement to an already beautiful development, we anticipate this being a great opportunity."

LakePointe Office Park, planned and developed by Childress Klein Properties, officially opened in 1988 with the completion of Belk Stores Services Corporate headquarters. LakePointe was reportedly 87% leased at the time of sale, with major tenants including The Vanguard Group, MIDREX Enterprises Inc., SunTrust Banks Inc., T-Mobile, Titan Technology Partners, the Transportation Safety Administration and the U.S. Postal Service. The LakePointe Office Park project marked the first step in Childress Klein's development in the immediate area that consists of 2.2 million square-feet of office space situated within 175 acres of forests, hills and lakes.

For more news and information visit Blumberg Capital Partners.

TPG Acquires ALC for $275M

Assisted Living Concepts (ALC),which operates 210 seniors living communities in 20 states, has entered into a definitive agreement to be acquired by TPG, a private investment firm. The total purchase price is about $275 million, according to a Wall Street Journal report. Under the terms of the agreement, ALC stockholders will receive $12.00 in cash for each share of Class A common stock. Citigroup Global Markets were Assisted Living's financial advisors while Goldman Sachs & Co advised TPG.

"We are very pleased with the transaction," Mel Rhinelander, chairman of the special committee set up by ALC's board, said in a statement. "The acquisition represents a significant premium for our shareholders, and we also believe that TPG will help continue ALC's focus on high quality service and care for our residents."

ALC's occupancy rates average around 62%, compared with a national average of about 90%, according to people familiar with the company. Tripp Levy PLLC, a national law firm that specializes in mergers & acquisitions, announced this week that it has been retained to represent shareholders of Assisted Living Concepts in an investigation concerning whether the board of directors of ALC engaged in a full and fair auction for the company obtaining the highest price possible for shareholders while not obtaining personal benefits for themselves in selling to this investment firm at this price. ALC is controlled by Thornridge Holdings, a private Canadian company.

For more news and information visit Blumberg Capital Partners.

1290 Avenue of the Americas Gets $950M Loan

Vornado Realty Trust, a fully integrated equity real estate investment trust, announced this week that the partnership that owns 1290 Avenue of the Americas in Manhattan has completed a $950 million refinancing of the property. Reportedly Deutsche Bank, Goldman Sachs, UBS Securities and the Bank of China financed the loan with commercial mortgage-backed securities.
Vornado owns 70% of the property, while Donald Trump's organization owns the remaining 30%.

The Master Servicer and Special Servicer will be Wells Fargo Bank, National Association rated 'CMS2' and 'CSS2-', respectively, by Fitch. The net proceeds from the refinancing were approximately $522 million after repaying the existing loan and closing costs.

The 43-story, 2.1 million square foot office building is approximately 95% leased by 27 tenants as of September 2012, and owned and managed by affiliates of Vornado Realty Trust. 1290 Avenue of the Americas is currently undergoing major renovations, to include new turnstile access systems, and upgrades to the cooling tower, chillers, restrooms and telecommunications spine, and new tenant-proprietary back up generators.

For more news and information visit Blumberg Capital Partners.

DiamondRock Acquires Blackstone Portfolio for $495M

DiamondRock Hospitality Company announced this week that it had entered into a purchase agreement to acquire a 4-hotel portfolio from affiliates of Blackstone Real Estate Partners VI for $495 million. The portfolio includes the Hilton Boston, the Westin Washington D.C., the Westin San Diego and the Hilton Burlington, representing a sale price of approximately $339,000 per key. Blackstone is taking a $75 million stake in DiamondRock as part of the deal, which will help DiamondRock pay for the hotels, according to a CBS News report. Goldman, Sachs & Co. acted as financial advisor to DiamondRock in the transaction. According to a Bloomberg report, the hotels are from the Columbia Sussex portfolio that Blackstone seized in December 2010 after buying junior debt tied to the assets.

Mark Brugger, Chief Executive Officer of DiamondRock, said, "We are excited to acquire these four high quality hotels from affiliates of Blackstone in an off-market deal and equally pleased that Blackstone is taking a $75 million ownership stake in DiamondRock as part of this transaction. We believe that these four hotels with higher RevPAR and EBITDA margins than those of our existing assets will enhance the overall quality of our portfolio."

Jonathan D. Gray, Global Head of Real Estate at Blackstone stated: "We are pleased to announce this transaction with DiamondRock, a company with solid assets and a strong management team led by Mark Brugger. We believe in the continued lodging recovery and are excited about receiving an ownership stake in the company."

For more news and information visit Blumberg Capital Partners.

Business Property Lending Sold for $2.51 Billion

EverBank Financial announced that it had executed an agreement to purchase Business Property Lending, a unit of GE Capital Real Estate, for $2.51 billion in cash. No debt will be assumed in the acquisition, and is expected to close in the fourth quarter of this year pending regulatory approval. Business Property Lending, which originates and services commercial real estate loans, currently has 14 offices across the United States with roughly $2.44 billion of performing commercial loans and servicing rights on $3.1 billion of loans securitized by GE Capital.

BofA Merrill Lynch acted as the financial advisor to EverBank and Sullivan & Cromwell LLP acted as its legal advisor on the transaction. Goldman Sachs also acted as an advisor to EverBank and Gateway Asset Management LLC provided loan diligence. Deutsche Bank Securities acted as financial advisor to GE Capital and Weil, Gotshal & Manges LLP acted as its legal advisor.

"Today's announcement represents a compelling strategic expansion into business property lending in key metropolitan areas where EverBank currently has significant lending, leasing and deposit customers," commented Robert Clements, Chairman of the Board and Chief Executive Officer of EverBank. "We believe this fully integrated, high quality franchise will accelerate EverBank's strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities."

The sale will reduce GE Capital's ending net investment, a measure of the unit's size that excludes non-interest-bearing liabilities and cash, by $5 billion, a GE spokesman, Russell Wilkerson, said. "The transaction is consistent with our strategy of reducing our real estate portfolio," Wilkerson said in the e- mail reported by The San Francisco Chronicle. According to a New York Times blog, EverBank previously acquired the banking operations of the failed Bank of Florida in a deal brokered by the Federal Deposit Insurance Corporation in 2010.

For more news and information visit Blumberg Capital Partners.

Empire State Realty Trust Files $1B NYSE IPO

Empire State Realty Trust, the company that controls the landmark Empire State Building in New York City, disclosed in a Securities and Exchange Commission (SEC) filing this month that it is planning a $1 billion initial public offering (IPO) in the coming months. Empire State Realty Trust will list on the New York Stock Exchange and trade under the "ESB" ticker, according to its SEC fillings. The realty trust controls 12 properties including the Empire State Building, two Westchester County properties in downtown White Plains and Harrison, and several other locations in Connecticut. Bank of America Merrill Lynch and Goldman Sachs Group Inc. will advise on the IPO.

According to Bloomberg, Malkin Holdings LLC, which owns the Empire State Building in conjunction with the estate of Leona Helmsley, said last November that it was considering joining a new REIT. Malkin Holdings is led by Peter Malkin and his son Anthony Malkin. The move is the culmination of efforts by the Malkin family to simplify control of its sprawling real estate holdings, reported the New York Times. The IPO will allow the Malkins to convert the equity held by other investors into stock in the new company, Empire State Realty Trust.

"Because it's got an iconic building as a centerpiece, I expect it will be successful anyway, but you're going to have more or less a higher percentage" of individual investors, said Lawrence Longua, director of the REIT Center at New York University's Schack Institute of Real Estate in a Businessweek article. For institutional investors, the owners "are very recognized names in the industry, so I suspect all in all, it'll do well," he said.

For more news and information visit Blumberg Capital Partners.

Duke Realty Sells Office Buildings for $44M

The Archon Group, a real estate investment arm of Goldman Sachs, has purchased a portfolio of six office properties in the Triangle for $43.95 million from Duke Realty. According to a Triangle Business Journal article Duke listed the portfolio, which includes 427,000 square feet of office space, in August of 2011. “These were still good assets, but ... we're happy about the buyer, and we know they'll take good care of the tenants,” said Jeff Sheehan, senior vice president in charge of Duke Realty's Raleigh operations.

The portfolio, buildings all built between 1986 and 2000, was 83% leased in August when it was first put on the market. The properties include 5540 Centerview Drive, 5565 Centerview Drive, 5520 Capital Center Drive, 801 Jones Franklin Road, 1616 Millbrook Road and one property in Cary located at 6501 Weston Parkway. The sale is reportedly part of the real estate investment trust's strategy of increasing its industrial and medical office portfolio while reducing the number of office assets it owns.

For more news and information visit Blumberg Capital Partners.

Two Grand Central Tower Sold for $401M

Two Grand Central Tower in New York, which went to market in June of this year expecting a sale price of $370 million, sold this month for $401 million according to a National Real Estate Investor article. The tower was sold by a joint venture between Boston Properties, Goldman Sachs and Meraas Capital, which is controlled by Dubai's ruler, Sheikh Mohammed bin Rashid. The unnamed buyer assumed $176.6 million of mortgage indebtedness according to the REIT.

The 667,000-square-foot building at 140 E. 45th St. was developed in 1982 and later sold by Harry Macklowe. The joint venture originally purchased the property in 2008 from affiliates of Macklowe Properties as part of a $705 million deal that also included 540 Madison Avenue in New York City.

During an Earnings Call, Boston Properties' Douglas T. Linde commented on the sale of the property saying:

"The office mark-to-market is still getting stronger, about a positive $1.41 per square foot. It was nice to be able to announce today in our supplemental aspect that we actually closed our sale of Two Grand Central. I would say I was a little gun-shy, given what our experience was with the New Jersey sale or lack of sales for the last couple of quarters. But we sold the building for $400 million, $617,000 a square foot. And if you look at the supplemental information for the third quarter on an annualized basis, the income is $13.9 million. But the building, again, is only 74% leased. So you can do the math and figure out what the conical cap rate is if you want to think about things in that way.

The sale of this asset was really always a possibility ever since the initial acquisition. To be truthful, and I think a lot of you acknowledged this and commented to us, the building has a very different market position and leasing profile than the other portions of our New York City portfolio. And was distinct enough from that portfolio, that we just came to the conclusion that there was very little synergy to owning the building. And so we sold it when the time was right."

For more news and information visit Blumberg Capital Partners.

Anglo Irish Bank Sells $9.5B US Loans

Wells Fargo & Co, JPMorgan Chase & Co and Lone Star Funds were the winning bidders on the $9.5 billion pool of U.S. commercial real estate loan sold by Anglo Irish Bank Corp. with debt related to some 250 properties, including marquee names ranging from the Apthorp, a landmark Manhattan residential building, to a Beverly Hills, Calif., shopping center to the Palmer House Hilton in Chicago according to a Wall Street Journal article. Other bidders included Blackstone Group LP, TPG Capital, Starwood Capital Group, Goldman Sachs Group Inc. and Deutsche Bank AG. The sale marks one of the biggest since the downturn in U.S. commercial real estate four years ago.

Anglo Irish Bank had been looking to unload the portfolio since the Irish government took control of the bank in January 2009. The bank had reported last week that it lost €101 million in the six months ended June 30th, far below the €8 billion loss it recorded for the same period last year.

According to Bloomberg, the trio will take on the portfolio of $9.65 billion in U.S. loans. It wasn't disclosed what the consortium bid for the assets, though some speculate 80 cents on the dollar would be a good price. "If you're looking at quality assets in good, strong markets, I'd say 80 cents on the dollar sounds pretty reasonable," said Tom Craig, founder of TSC Realty Partners, a commercial-property broker in Seattle who wasn't involved in the sale. "One of the barriers to entry on a big deal like this is how many people can put the capital together to buy this and close quickly."

For more news and information visit Blumberg Capital Partners.

One Loudoun Project Revived with New Team

One Loudoun, a mixed-use project proposed in September 2007 when Miller & Smith held a groundbreaking ceremony, was a project that found itself in trouble with the real estate downturn when the company and its partners stopped construction on the project after falling deeply underwater on a loan from Goldman Sachs. This week, however, Sekisui House Ltd. — headquartered in Osaka, Japan and one of the world's biggest homebuilders — is partnering up with Miller & Smith to buy the Goldman Sachs note and foreclose on the previous ownership group, kickstarting the massive project in Ashburn, Virginia, just outside the Beltway from Washington, DC.

The new development is a 358-acre master-planned community in Loudoun County that will feature 1040 residential homes, 702,000 square feet of retail space, 3,000,000 square feet of office space, a community center, and an amphitheater -- all surrounded by approximately 150-acres of public land and miles of walking trails. One Loudoun will also be home to the World Trade Center Dulles Airport, projected to generate up to 14,000 new jobs.

Satoshi Yoshimura, president and Chief Operating Office for Sekisui House's North American unit, said the Washington area was one of the American markets the company had targeted because of the federal government's expansion and the diverse range of the area's employers in a Washington Post article. "D.C. is not so much damaged by the financial markets crisis," he said.

For more news and information visit Blumberg Capital Partners.

$471M JV With Inland American and Centro

A definitive joint venture has been announced this week between Inland American CP Investment, LLC, a wholly owned subsidiary of Inland American Real Estate Trust, Inc., and Centro NP Residual Holding LLC, a subsidiary of Super LLC, which is jointly owned by CER, Centro Properties Group and CMCS40, on 25 retail shopping centers with a total value of approximately $471 million according to a CoStar report.

Goldman Sachs and J.P. Morgan provided the joint venture 10-year CMBS financing of approximately $310 million secured by 24 properties within the joint venture. "We believed that these were quality properties when we purchased the original loan participation, and this new joint venture agreement reaffirms that we still believe in them," said Michael Podboy, Vice President, Inland American Business Manager & Advisor, Inc. "We are excited about our partnership with Centro and the resolution of our existing participation on a portion of the prior first mortgage loan as it provided an attractive business deal. These are high-traffic shopping centers with high occupancy rates, which demonstrates their strong mix of national and regional retail tenants, including Wal-Mart, Publix, Kroger, Best Buy, Kohl's, Staples, Bed Bath & Beyond and T.J. Maxx."

For more news and information visit Blumberg Capital Partners.