JV Sells $190M Office Project In Denver to Invesco

Denver-based developer East West Partners and a controlled affiliate of Starwood Capital Group announced the sale of an office project in Denver's Union Station neighborhood to Invesco Real Estate. According to a Denver Post article, East West Partners will stay on in its role as developer of the $190 million project, and Invesco ultimately will own the completed office tower, which broke ground last week. Terms of the deal and representation were not disclosed, but records show that Invesco paid $18 million.

"This is a unique opportunity for all of the parties involved," said Chris Frampton, Managing Partner of East West Partners. "The building is 81% leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition. It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate."

"We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut," added Dan Schwaegler, Senior Vice President in the Asset Management Group at Starwood Capital Group. "Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area, and we look forward to watching the city's continued emergence as one of the most dynamic metropolitan areas in the United States."

16 Chestnut will be a 19 story building with above grade parking incorporated into the structure, anchoring the fourth and final corner of the Millennium Bridge. The architect for the project is Gensler, while BuildMark will provide construction management services and Saunders Construction will serve as general contractor.

For more news and information visit Blumberg Partners.

 

CBRE Tapped for Plaza of the Americas

Plaza of the Americas in Dallas has been placed on the market for sale as the class A office complex in the Arts District is being marketed by CBRE Capital Markets. Houston-based M-M Properties and Dallas-based Invesco Real Estate are seeking to sell the property, four years after acquiring it for close to $100 million; the current asking price for the property has not been disclosed.

"Having another trophy tower on the market will draw more attention to the Downtown market, bring more investment dollars and ultimately positively impact the sale of Plaza of the Americas," John Alvarado of CBRE told Bisnow. M-M Properties has enhanced the rent roll as well as updated the project since its acquisition a few years ago.

Built in 1980, Plaza of the Americas is a 1,233,266 square-foot Class A office/mixed-use complex in Dallas, Texas. The property is comprised of twin 25-story office towers connected by a 13-story atrium containing two levels of retail and abutting the 407-room Marriott City Center Hotel. The property is located on the expanding light rail system at the Pearl Station and enjoys superior access to all freeways and major thoroughfares that serve the Dallas CBD. The property is currently 74% leased with major tenants including JPMorgan Chase Bank, AIG, Capital One, Thompson Coe, and the United States Government.

For more news and information visit Blumberg Capital Partners.

Amstar Sells Westlake Park Place for $98M

Amstar Advisers LLC, a Denver-based real estate investment manager, announced this week that it had sold the first phase of Westlake Park Place, a 5-building, 239,000 square foot premier Class A office campus located in Thousand Oaks, California for $98.025 million, or about $410 per square foot. Amstar, in partnership with The Travelers Companies, Inc. and Searles Property Group, delivered the 5 buildings in Phase I in December 2008 with Phase II expected to be delivered in early 2015. Atlanta-based Invesco Real Estate acquired the office campus with in-house representation, while Kevin Shannon, Ken White, Tom Bohlinger, Brad Burton and Mike Longo of CBRE represented the sellers.

"Our ability to lease this project at the highest rates in the submarket during a recessionary time period speaks to the fact that it is the best-in- class office project in all of Ventura County and the Conejo Valley. We believe it provides an exceptionally high-quality, low-risk investment opportunity," said Amstar Managing Director, Kim Sperry.

The office campus totals 238,943 square feet across five buildings standing one to four stories tall, according to a CoStar report. Westlake Park Place was 97% leased at the time of sale with Mike Foxworthy and Tom Festa, DAUM Commercial Real Estate Services, leasing the project for the ownership group. The first building in Phase II, four stories totaling 102,000 square feet, is 80% preleased.

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.

Westport Capital Affiliate Buys Corporate Plaza

Corporate Plaza, a highly recognizable office development within the St. Louis West County submarket, traded hands this month as Invesco Real Estate sold the property to an affiliate of Westport Capital Partners for an undisclosed price. Transwestern's Chicago office brokered the deal on behalf of Invesco with representation from Gary Nussbaum, Thomas Gorman, and David Matheis. Westport Capital Partners represented itself in the transaction.

"We are thrilled to have completed this acquisition," said Sean Armstrong, a principal of Westport. "Mercy plays a vital role in providing healthcare to more than three million people annually. We look forward to supporting its mission as its landlord."

"There was significant interest in the property due to the credit of the anchor tenant and the location in the Highway 40/West County office market, which is highly sought after by investors," said Gary Nussbaum, managing director of Transwestern.

The 210,409 square-foot, five-story office building at 14528 S. Outer 40 in Chesterfield, Missouri was 98% leased at the time of sale, with the not-for-profit healcare provider Mercy occuping 89% of the property, according to a Sacramento Bee article.

For more news and information visit Blumberg Capital Partners.

Houston's Williams Tower Gets $185.4M in Financing

Invesco Real Estate has secured $185.4 million in permanent financing for the purchase of Williams Tower in Houston's Galleria region, a 1.4 million square-foot Class A office tower. Jones Lang LaSalle arranged the financing on behalf of Invesco through Prudential Mortgage Capital Company. Invesco purchased the 64-story office tower from Hines REIT early last month, with Jones Lang LaSalle's Tom Melody with Managing Directors Michael Zietsman and Dan Bellow representing Hines in the sale.

"This was a very significant financing transaction that generated substantial interest from the top-tier institutional lending community," said Melody. "Williams Tower is not only one of the most recognizable buildings in Houston, it is also an asset that has outperformed the market over the past five years, proving to be a very solid investment. We are confident Williams Tower will continue to deliver good returns for Invesco and perform favorably in the future given its high quality and position in the marketplace."

According to a Houston Chronicle report, the building is 95% occupied. Major tenants include Ecopetrol America, Hines Real Estate Investments, Knoll, NextiraOne, Rowan Cos., Smith Barney, Trammell Crow Co., Wells Fargo and Williams Corp.

For more news and information visit Blumberg Capital Partners.

Rialto Building Sold for $57M

Africa Israel USA announced this week that it had closed on the sale of the Rialto Building in San Francisco, selling the property to a joint venture between Invesco Real Estate and Hines. The joint venture purchased the turn-of-the-century property for approximately $434 per square foot, or $57 million, according to a CoStar report. The sale was completed only six weeks after Africa Israel USA placed the property on the market. In total, 17 offers were submitted as part of the bidding process. Eastdil Secured represented the seller in the transaction.

"We were very pleased with the widespread interest in the building, which we feel is indicative of the Rialto's strengths, both architecturally and geographically," said Damien Stein, director of asset management at Africa Israel USA. "The demand for premier office space in the most sought-after area of San Francisco is clearly outpacing the ready supply."

"This sale proves that San Francisco is still unmatched as the nation's top-performing office market," added Tamir Kazaz, CEO of Africa Israel USA. Originally built in 1902 and designed by Meyer & O'Brien, the 135,485 square foot building at 116 New Mongtomery St. was 85% leased at the time of sale, with major tenants including Trulia, Walgreens and Chipotle.

For more news and information visit Blumberg Capital Partners.

Invesco Invests in 230 Park Ave

Dallas-based Invesco Real Estate has been brought on as a new partner invested in 230 Park Ave. in New York, the tower above Manhattan's Grand Central Terminal. Monday Properties recapitalizes the landmark Manhattan office tower, buying out a Goldman Sachs Group Inc. real estate fund, according to a Bloomberg report. Monday Properties and a Goldman fund venture purchased the 34-story building in 2007 for $1.15 billion.

The deal "commences this new chapter for 230 Park Ave.," said Monday's CEO Anthony Westreich in the statement, calling the 34-story tower "a unique landmark environment." Terms of the transaction with Invesco's Dallas-based real estate unit were not disclosed. As part of that deal, Goldman is exiting the building, according to Brian Robin, a vice president at Monday Properties. Monday Properties will continue to manage 230 Park Avenue where major tenants include ING, Simon Property Group, Tokio Marine Management and Houston & Rosen P.C.

For more news and information visit Blumberg Capital Partners.