JLL Picks Up Valencia Industrial Portfolio for $65M

JLL Income Property Trust, an REIT advised by LaSalle Investment Management Inc. and sponsored by Chicago’s commercial real estate brokerage Jones Lang LaSalle Inc., announced that it had acquired a five-building warehouse portfolio in the Greater Los Angeles submarket for approximately $64.5 million. The multi-tenant portfolio was sold by Clarion Partners with representation from JLL; full terms of the deal were not disclosed.

"Acquiring high quality, well-located warehouses in select, primary markets with high barriers to entry, like the Greater Los Angeles market, is a core component of our investment strategy," said Allan Swaringen, CEO and President of JLL Income Property Trust. "This portfolio's prime infill location in close proximity to Interstate 5 should allow us to attract and retain tenants and capture this market's strong rent growth potential. This marks our third industrial investment closed this year, and twenty-third property acquired in the warehouse sector over the last three years, growing our industrial allocation to over $430 million and 25% of our overall portfolio."

The Valencia Industrial Portfolio was full leased at the time of sale to eight different tenants. With an overall market vacancy rate of less than 2% (its lowest level in fifteen years), and new construction pipelines delivering less than 1% of existing stock, the industrial property market fundamentals of Greater Los Angeles are some of the strongest across all property types and markets in the country, according to JLL. The properties in the portfolio include:

28150 West Harrison Parkway: 87k square feet
28145 West Harrison Parkway: 114k square feet
28904-28912 Avenue Paine: 117k square feet
24823 Anza Drive: 31.3k square feet
25045 Avenue Tibbitts: 142.4k square feet

"The Valencia Industrial Portfolio offered quality assets occupied by credit tenants in a market with great connectivity," explained Bo Mills of JLL. "With a limited supply of Class A warehouse product in Southern California and in-place rents below market value, this deal represented a prime opportunity for both the buyer and seller."

For more news and information visit Blumberg Partners.

Duke Sells Phoenix Industrial Properties to Exeter for $56M

Exeter Property Group, the Plymouth Meeting, PA-based real estate investment manager, has purchased two industrial buildings in Phoenix, Arizona from Duke Realty for $55.9 million, or a blended average of $65.45 per square foot. Both properties transfered in cash sales that were brokered by Jones Lang LaSalle in Phoenix; representation was not disclosed. The acquisition adds nearly another 2 million square feet to its Valley portfolio; the company said it is looking to acquire additional properties in the market.

The first property at 4570 W. Lower Buckeye Road in the Riverside Business Center includes 603,910 square feet of space. The distribution warehouse building was originally developed in 2007 and acquired by Duke Realty in 2011 for $24 million; Exeter Property Group paid $39 million this month. The second property at 1002 S. 63^rd Avenue, known as Estrella Buckeye inside the Estrella Business Park, is a 250,157 square foot distribution facility developed in 1996. Exeter paid $16.9 for the building, which Duke acquired in 2010 for $8.7 million. Both properties were 100% leased at the time of sale.

For more news and information visit Blumberg Partners.

San Diego's Procopio Tower Sold for $122M

LaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle, has purchased the Procopio Tower in San Diego's B Street Corridor for $122 million from a venture of Hines US Core Office Fund and Sumitomo Life. Formerly known as Golden Eagle Plaza or the Union Bank Building, Hines acquired the 449,184-square foot, 22-story Class A office building and attached six-story garage in 2005 on behalf of its U.S. Office Core Fund for $116.3 million. Full terms and representation for this month's deal have not yet been disclosed; it was marketed for sale by October of 2015.

Hines Vice President Paul Twardowski has said of the Class A office building in the heart of downtown San Diego, “The business story this building tells is a compelling one for tenants, owners and investors alike: older buildings can be rehabilitated to Class A quality by applying best engineering practices and through modest investment in more sustainable building infrastructure.”

Designed by Langdon and Wilson, 525 B Street was originally constructed in 1969 and renovated in 1998 (designed and developed by Mark Krukiel in collaboration with RTKL Los Angeles) and again in 2007. The property underwent numerous sustainability measures and capital improvements spearheaded by Hines, including a new cooling tower, new efficient transformers, and upgraded building control systems, earning the property a Gold LEED rating. While vacancy rates were not released, the building only show three office spaces currently available, with major tenants include Procopio, Elsevier Inc., and Barrister Executive Suites.

For more news and information visit Blumberg Partners.

Princeton Pike Corporate Center Trades Hands

Bloomfield, NJ-based Prism Capital Partners announced the sale of Princeton Pike Corporate Center, an eight-building, 800,000-square-foot office park in Central New Jersey's Mercer County for an undisclosed price. The property previously traded in 2013 when Brandywine Realty Trust sold the complex to Prism Capital Partners and Angelo Gordon for $121 million, or $151 per square foot. As the operating partner, Prism Capital Partners launched a series of upgrades after purchasing the property, including tech updates and new entrances and amenities. Joe Garibaldi, Tom Walsh and Michael Fenton of Jones Lang LaSalle brokered Princeton Pike Corporate Center's sale to Lenox Drive Office Park LLC.

"We added tremendous value during our ownership of Princeton Pike Corporate Center," said Edwin Cohen, Prism Capital Partners principal partner. "The improving economy brought renewed velocity to the office leasing market, and we capitalized on that through significant capital improvements and aggressive leasing."

"Our purchase acumen was proved correct through the considerable profit we earned," added Eugene Diaz, another Prism principal partner.

Constructed on 100 acres between 1984 and the early 1990s, Princeton Pike Corporate Center's class A office buildings range in size from the 97,000-square-foot 997 Lenox Drive (Princeton Pike 3), to the 180,000-square-foot 1009 Lenox Drive (Princeton Pike 4). The eight buildings each feature central atriums, onsite café and fitness centers, on-site management, and offer close proximity to area hotels. The property was 90% leased at the time of sale, with major tenants including Wells Fargo, Ken Clark International, Stark & Stark, the Princeton Healthcare System, Fox Rothschild, Citigroup, MetLife, Philadelphia Insurance Co., and Ono Pharma USA.

For more news and information visit Blumberg Partners.

First Potomac Sells Cedar Hill I and III for $27.3M

Bethesda, MD-based First Potomac Realty Trust announced this week that it had sold two office buildings in Tyson's Corner, Virginia for gross proceeds of $27.3 million. Cedar Hill I and III were first acquired by First Potomac in 2011 from PNC Realty Investors, Inc. for $22.8 million; the company stated in a press release that proceeds from the sale will be utilized to fund the previously announced redemption of $2.2 million Series A preferred shares.

"As we continue to execute on phase one of our strategic plan to improve our portfolio and strengthen our balance sheet, the sale of Cedar Hill I and III, and the redemption of a portion of our preferred shares, reinforces our effort to create substantial value for our shareholders," said Robert Milkovich, CEO of First Potomac Realty Trust. Jones Lang LaSalle represented First Potomac in the sale of Cedar Hill I & III.

Cedar Hill I, located at 2222 Gallows Road, and Cedar Hill III, located at 2216 Gallows Road, are 100% leased primarily to the United States State Department's GSA through 2020 and 2019 respectively. The two three-story office buildings total 102,632 square feet and were constructed in the late 1980s. For more news and information visit Blumberg Partners.

LogistiCenter at 33 Breaks Ground

Reno, NV-based commercial real estate developer Dermody Properties and PCCP, the financial partner and a San Francisco real estate finance and investment management firm, broke ground on LogistiCenter at 33, an industrial facility at 4200 E. Braden Blvd. in Forks Township, PA. Jones Lang LaSalle, which has an office in the Lehigh Valley, is the leasing team for the property. HFF served as the broker that represented J.G. Petrucci and Co. in the sale of the property to Dermody and PCCP, according to Gene Preston, partner for the east region of Dermody Properties.

Preston said the new Charles Chrin Interchange along Route 33 in neighboring Palmer Township prompted the deal. "That is the overriding reason ... the new interchange that opened up the Route 33 corridor," Preston said Monday. The interchange, which opened in July, provides easier access to Route 33 and adjoining interstates from business centers such as the one in Forks Township.

"PCCP sees this as a compelling opportunity to develop a Class A industrial facility with Dermody Properties, a best-in-class developer," added John Randall, Managing Director with PCCP. "Additionally, the local industrial market incorporates all of the key fundamentals that promise to attract large user interest. Our goal is to pre-lease the property prior to completion of construction."

Expected to be completed by summer 2016, the facility will feature 36 feet of clear height, 226 car parking spaces, and 85 trailer parking spaces. LogistiCenter at 33 is ideally suited for manufacturing, warehouse, and distribution companies that need to reach the northeastern U.S. population quickly and efficiently. R. S. Mowery & Sons, Inc. is the general contractor for the project, and the firm of Randall Paulson is serving as the project architect.

For more news and information visit Blumberg Partners.

Normandy Secures $72M for Midtown Restoration

Jones Lang LaSalle announced this week that it had secured a $72 million loan on behalf of Normandy Real Estate Partners, a N.J.-based investment firm led by David Welsh and Finn Wentworth, for 125 W. 25th Street. French bank Natixis provided the financing on the 12-story property, which will allow Normandy to complete renovations to the building. Normandy originally purchased the building out of foreclosure for $54.5 million in 2013; prior to that, the former owners were Brooklyn-based investors Miriam and Michael Chen, who paid $34 million for it in 2006 but defaulted on a loan given to them by lender Cathay Bank.

"With this financing in place, our efforts are now focused on completing construction and finishing the redevelopment of the asset which will feature an open, loft-style setting and upgrades to the lobby, new enlarged windows, new elevators, and a new roof terrace and penthouse," said Paul Teti, principal at Normandy Real Estate Partners. "We’re excited to begin showing prospective tenants this ideally situated property that’s in the heart of Manhattan's technology and media center."

125 West 25th Street is located on West 25th Street between Sixth and Seventh Avenues – approximately one block west of Madison Square Park. The property offers 11,600 square foot floor plates with open layouts and light on three sides, resulting in a bright, collaborative work setting. The comprehensive renovation will include a glass façade on the first three stories, brand new building systems, lobby renovations, a roof deck, and new elevators, windows and floors.

For more news and information visit Blumberg Capital Partners.

JLL Releases Global Life Sciences Cluster Report

Jones Lang LaSalle has released its 2014 Global Life Sciences Cluster Report, an annual report on key regions and trends in the Life Sciences industry. According to the report, U.S. cities continue to lead the world in biopharmaceutical resources and enterprises, with access to talent and research that is keeping cities like Boston, San Francisco and San Diego at the top of the U.S. life sciences clusters list. The report analyses top U.S. life sciences clusters, ranks the cities for their prominence in the industry and also offers an analysis of global trends in 17 countries.

"The right-sizing and reshuffling of the global biopharmaceutical companies has left its mark on key U.S. cities," said Roger Humphrey, Executive Managing Director of JLL's Life Sciences group. "The strongest U.S. clusters have retained their competitive advantages, and continue to thrive as top centers of talent and innovation."

The Greater Boston Area once again tops the U.S cluster scorecard, according to a press release. Although San Diego and the San Francisco Bay Area reported higher year-over-year employment growth, Boston's "ability to attract venture capital and U.S. National Institutes of Health funding secures its position as the top life sciences cluster in the world." All three cities are expected to lead the United States' life sciences industry in the coming years because of the critical mass of start-ups and mid-tier companies, leading research institutions, access to private and public funding, and local leaders focused on growing their life sciences industries. With three of the country's top 10 clusters, California is the top U.S. state for life sciences innovation.

"Los Angeles and Orange Counties' continued prominence as a global life sciences cluster underscores the immense talent and resources that are located within southern California and the County of San Bernardino," said Kelly Reenders, Economic Development Agency Administrator for San Bernardino County, part of the Los Angeles/Orange County life sciences cluster that ranked number six on JLL's list. "Our region has long provided leading centers of research such as the Loma Linda University Medical Center and Children's Hospital, and infrastructure such as manufacturing facilities and an educated workforce that support the life sciences."

For more news and information visit Blumberg Capital Partners.

Buchanan Buys Stapley Corporate Center for $33M

Buchanan Street Partners, a Newport Beach-based national real estate investment bank, completed the purchase of the Stapley Corporate Center in Mesa, Arizona for $32.5 million. Buchanan purchased the two-building Class A office complex from The DESCO Group, which originally developed the property in 2007. Chris Toci and Chad Little of Cushman & Wakefield of Arizona represented the seller in the transaction, while Buchanan Street represented itself. Mark Gustin of Jones Lang LaSalle will handle leasing for the property, according to a press release.

"This property will continue to attract top tenants seeking high-image office space in the East Valley, based both upon the quality of the building and the continued Phoenix recovery," said Brian Payne, Vice President of Buchanan Street Partners. "The project benefits from a location adjacent to executive housing in Gilbert and is in close proximity to more than 2 million square feet of retail services in the immediate area."

The two buildings at 1840 and 1920 South Stapley Drive cover 180,000 square feet of rentable space with immediate access to Highway 60. The property was 90% leased at the time of sale, with major long term leases in place with tenants including Cigna Healthcare and Wells Fargo.

For more news and information visit Blumberg Capital Partners.

Miami's Courvoisier Centre Sold for $145.8M

Parkway Properties, Inc. announced this week that it had purchased Courvoisier Centre in Miami, Florida for $145.8 million, or $422 per square foot, from Tishman Speyer. Parkway handled the transaction in house, while Tishman was represented by Jones Lang LaSalle in the deal. Parkway funded its acquisition in-part with available cash on hand and borrowings under its new seven-year, unsecured credit facility, according to a CoStar report. In connection with the financing, Parkway took the full amount of its $100 million loan, while simultaneously paying in full the first mortgage debt secured by the firm's Bank of America Center in Orlando, FL, which had an outstanding balance of $34.2 million including breakage costs.

"The acquisition of Courvoisier Centre supports our strategy of acquiring best-in-class assets within the strongest submarkets across the Sunbelt. The buildings' high-end amenity base, along with available parking infrastructure and water views, makes Courvoisier Centre a highly desirable asset," said James Heistand, Parkway Properties' President and Chief Executive Officer. "Further, a heavy emphasis on multifamily development within the Brickell submarket has limited the amount of available supply of Class A office assets, which has enabled Brickell to achieve the highest rental rates in Miami."

The Courvoisier Centre is a two-building office complex with an adjacent five-story parking garage, located on Brickell Key Island in Biscayne Bay, 400 feet off the coast of Downtown Miami. The seven-story Courvoisier Centre I was completed in 1986, and the 12-story Courvoisier Centre II and parking garage and retail were completed in 1990. The property totals 330,000 rentable square feet, including the adjacent five-story parking garage. The properties were 83.4% leased at the time of sale with major tenants including Young & Rubicam, Sony Pictures, CNN, WWE, MGM, Live Nation, Swire Properties, and Medina Capital.

For more news and information visit Blumberg Capital Partners.

KBS Picks Up 1000 Continental for $63M

KBS Realty Advisors of Newport Beach, CA announced this week that it had purchased 1000 Continental in the King of Prussia submarket of Philadelphia for $63 million. KBS bought the 205,424-square-foot building from Equus Capital Partners Ltd. of Philadelphia. Jim Vesey, Doug Rodio, Jim Galbally, and John Plower of Jones Lang LaSalle represented the seller in the transaction, while KBS handled the sale in-house.

"1000 Continental's amenity base and location possess a number of urbanization trend qualities that we look for in office investments," said Shannon Hill, KBS senior vice president. "The asset's status as a LEED Silver-certified building also makes it the most efficiently run building in its competitive set."

At the time of the sale, the building was 99% occupied, with major tenants including Northwestern Mutual, Farmers Insurance, Nationwide Life Insurance, and The Hartford Financial Services Group. The seller, through its BPG Development Company LP, developed the asset on-spec, according to a CoStar report. "The sale of 1000 Continental represents the culmination of a successful development project that was delivered during one of the worst economic recessions in our history and highlights the value of delivering a top tier asset designed to meet today's demanding tenant requirements," commented Stephen Spaeder, senior vice president of Equus.

For more news and information visit Blumberg Capital Partners.

China Greenland Investing $2B in London Skyline

Greenland Holding Group Co., a major Chinese state-owned real-estate developer, announced plans this week to invest £1.2 billion ($2 billion) in two real estate projects in London, marking its entry into the U.K. market. Greenland signed an agreement to buy developer Minerva's Ram Brewery, a historic seven acre site in Wandsworth claimed to be the UK's oldest working brewery until it closed in 2006, according to a City A.M. article. Minerva was acquired by clients of Ares Management and Delancey in 2011, who sold the property this month to Greenland for £600m. The brewery site has outline planning consent for 661 new homes, including a 36-story tower providing 166 units and 9,500 square metres of space for new shops and restaurants.

Paul Goswell, managing director of Delancey, said: "Since acquiring Minerva two years ago, we have worked hard to comprehensively redesign the original scheme which culminated in planning consent being secured last December. Our strategy had been to implement the scheme ourselves, possibly with a partner, but that changed when Greenland made their unsolicited proposal."

Greenland president and chairman Zhang Yuliang, who flew to London for the signing of the Ram Brewery deal, said: "London is the global financial centre as well as the most open and diversified city that enjoys the most mature economic development, making it the first option for our investment in Europe. Due to the active trading in London local real estate market in the last two years, the average residential price rose by 10% in 2013, and the increase in demand is expected to continue in 2014. There have been more and more individual investors who favor the UK market, thanks to the stable return on assets, high quality assets and sound market liquidity."

Guy Grainger, UK CEO of Jones Lang LaSalle, which aligned Minerva with Greenland, described the project as a landmark transaction for the London residential market. "This deal emphasizes the strong relationships currently being created between the UK and China, and further highlights London as the No 1 destination for international capital," he added.

Greenland will also build apartments on a 3,700-square-meter site in the city's financial district of Canary Wharf. Greenland said it plans to build London's tallest luxury residential housing project at the site. More details on that project will be announced at the end of the month, the company said.

For more news and information visit Blumberg Capital Partners.

Prudential JV Sells Seattle Tower for $150M

Heitman America Real Estate Trust, a Chicago-based real estate investment management firm, purchased 1800 9th Avenue in Seattle, Washington for $150.38 million, or about $476 per square foot. Heitman acquired the property from The Prudential Realty Group and Talon Private Capital, a joint venture that originally purchased the 312,700-square-foot office tower in December 2011 from Regence BlueShield in a sale-leaseback transaction for $76.5 million. Prudential and Talon were represented by Stuart Williams and Laura Ford of Jones Lang LaSalle, while Heitman handled the acquisition in-house, according to a CoStar report.

Also known as the Regence Building, 1800 9th Avenue was originally designed by LMN Architects and built in 1990 in the Seattle CBD submarket of King County, in close proximity to the Convention Center Metro Station and I-5. Talon Capital hired Foushée & Associates to redevelop the 15-story, 315,837-square-foot office building, with modifications including a new main lobby, an updated fitness center, new 4th floor exterior deck, and new HVAC controls. According to reports the building was 97% leased at the time of sale, with Amazon.com occupying more than half of the building.

For more news and information visit Blumberg Capital Partners.

Square Mile Sells Spring Garden Tower for $184.5M

Square Mile Capital Management, a New York-based diversified real estate investment firm, completed the sale this week of the office tower at 1500 Spring Garden St. in Philadelphia, PA for $184.5 million, or about $171 per square foot. According to a CoStar report, a joint venture of The Nightingale Group LLC and Carlton Associates, Inc. purchased the building, which was put up for sale this summer. Jones Lang LaSalle arranged the transaction with the buyers handling the sale in-house, the terms of which were not disclosed.

1500 Spring Garden Street, also known as the SmithKline Beecham Headquarters Building, was originally built in 1947 and underwent renovations in 2002 to accommodate offices, operations centers and a major television studio with master planning from Bruce E. Brooks & Associates. The 12-story, 1.08 million-square-foot, 4-Star office tower was reportedly 90% leased at the time of sale with major tenants including Sungard Availability Services, Thomson Reuters, Independence Blue Cross, Day & Zimmermann, and CBS Broadcasting.

For more news and information visit Blumberg Capital Partners.

Dubai's Next Real Estate Boom

A new report from the Wall Street Journal titled Dubai Launches New Real-Estate Boom examines the current climate -- and promises -- in the Dubai real estate market as developers in the area are moving ahead with billions of dollars in new projects. According to Jones Lang LaSalle, there are about 45,000 units in the supply pipeline, fueled by strong demand from investors attracted to the emirate's political stability and haven status in the Middle East. Jones Lang LaSalle analyst Craig Plumb predicted that prices will keep rising "for some time" but called the rate of growth "unsustainable."

As reported by the WSJ, the new boom is being fueled by strong demand from investors attracted to the emirate's political stability and haven status in the Middle East. Apartment prices rose by 42% in the 12-month period ending Sept. 30, according to a recent report by Asteco, a local brokerage.

"It's relatively peaceful and Dubai tends to benefit from the conflict from elsewhere," said Nitin Kalwsani, an Indian national running a trading business in Dubai who was looking to buy a villa. "They used to take it to the U.S., but I think after Sept. 11, Muslims don't want to invest in the U.S."

For more news and information visit Blumberg Capital Partners.

Coasts Dominate List of Most Expensive US Streets for Offices

Jones Lang LaSalle released it's official list of 2013's top ten most expensive streets in the United States for office space, with bicoastal cities topping the chart. The recent study of 40 office markets across the United States, with rents on the most expensive avenues exceeding the market average by 49.8%. "This year's results are particularly interesting because, not only do they demonstrate the standard real estate rule that location is everything, but they also reflect the overall office space demand trend in the U.S.," said John Sikaitis, Managing Director of Office Research at Jones Lang LaSalle. "We are seeing a slight uptick in occupancy rates as a result of the rate of business growth in the economy combined with a lack of new development."

The Top 10 Most Expensive U.S. Streets for Office Space (click here to view the 2011 results):

1. Sand Hill Road, Menlo Park, Calif.: $111.00 p.s.f. (-2.5%)
Historically the most expensive area in Silicon Valley, Sand Hill Road has deep roots with the venture capital community and houses the top VC firms in the greater Bay Area.

2. Fifth Avenue, Midtown Manhattan, NYC: $102.00 p.s.f. (+5.0)
Consistently ranked among the most expensive shopping streets in the world, Fifth Avenue is also home to numerous hedge funds looking for top-quality space in Midtown and willing to pay more for those coveted office locations with their unparalleled amenities.

3. University Avenue, Silicon Valley, Calif.: $95.00 p.s.f. (+14.1%)
Located in Downtown Palo Alto, University Avenue is known for its vibrant startup community, as its proximity to Stanford University makes it an ideal location for recruiting top young talent.

4. Greenwich Avenue, Greenwich, Conn.: $93.00 p.s.f. (+3.4%)
Greenwich Avenue competes with the best commercial real estate, leveraging its rich history preserved through older buildings. Top-shelf retail establishments dot the historically-rich corridor, from the top of the Avenue down through the transit center. Hedge funds and financial services firms occupy the majority of office space, with many top executives only steps from their homes. Premier office buildings offer close proximity to train, and command rents as high as $100 p.s.f.

5. Pennsylvania Avenue, Washington, DC: $76.00 p.s.f (-5.5%)
Despite slower overall market conditions in recent quarters, Pennsylvania Avenue has continued to experience rent premiums to the rest of the market. Known as "America's Main Street," Pennsylvania Avenue is home to many firms wanting close proximity to Washington's two main points of power, the White House to the west and the Capitol to the east. A big growth area in tenant demand in recent years has stemmed from the government affairs sector of corporate America.

6. California Street, San Francisco: $62.10 p.s.f. (+43.9%)
The main street of the city's North Financial District, California Street, is known for its historic cable car route, broadness and high-priced real estate. Growth in tech and associated industries, along with limited new supply, have pushed rents up by almost half over the past two years.

7. Boylston Street, Boston: $60.20 p.s.f. (+14.3%)
Boylston Street runs through two of Boston's most prestigious areas, Back Bay and the Financial District. It is home to numerous landmarks, Trophy office buildings and high-end retail, as well as some of the city's most distinctive skyscrapers.

8. Avenue of the Stars, Los Angeles: $60.12 p.s.f. (+1.9%)
The thoroughfare through the highly desirable Century City market, Avenue of the Stars is home to many prominent legal and financial service firms and talent firms, as well as the largest cluster of Class A Trophy assets on the Westside.

9. Royal Palm Way, West Palm Beach: $58.52 p.s.f. (+0.9%)
Royal Palm Way is dubbed "Banker's Row" due to the concentration of wealth management and financial services firms, catering to the wealthy residents on Palm Beach Island.

10. Newport Center Drive, Orange County: $50.06 p.s.f. (+4.3%)
Sitting on a bluff overlooking the Pacific Ocean, Newport Center Drive is a 1.3 mile ring that encompasses the Fashion Island retail center. World class dining and retail amenities along with ocean view suites and access to posh residential neighborhoods make Newport Center Drive one of the most premiere places to rent office space in Southern California.

For more news and information visit Blumberg Capital Partners.

DCT Industrial Trust Pays $22M for Industrial Portfolio

DCT Industrial Trust Inc., a Denver-based industrial real estate company, announced this week that it had acquired a three-building industrial portfolio in the Phoenix area for $22.1 million, or $71.74 per square foot. The price point is above the $59.47 per square foot average for industrial space across metro Phoenix, according to LoopNet’s data as of July, as reported by the Phoenix Business Journal. The Broadway Industrial Portfolio was sold by San Francisco-based Prologis with representation from Jones Lang LaSalle Managing Directors Mark Detmer and Bo Mills. JLL Executive Vice Presidents Pat Harlan and Steve Sayre, and Associate Kyle Westfall will serve as the exclusive leasing brokers for the property buyer on behalf of DCT Industrial Trust. Terms of the deal were not disclosed.

"We are excited to add these exceptional buildings to our portfolio," said Mark Bowen, Regional Vice President DCT Industrial. "Located in one of the highest-barrier-to-entry submarkets of Phoenix these high-quality buildings reflect DCT's continued effort to improve the quality our portfolio."

"These buildings are exceptional in that they combine outstanding functionality and full occupancy with a true Class A image in an infill location," said Detmer. "This includes access—within minutes—to many of the key amenities that a high-end industrial user might need: an extensive freeway network, international airport, deep labor pool and host of retail opportunities."

The portfolio includes an 110,000-square-foot building at 1005 W. Alameda Dr; a 96,437-square-foot building at 2910 S. Hardy Drive; and a 101,601-square-foot building at 2925 S. Roosevelt St., all in Tempe. Each building is a Class A, institutional quality asset offering manufacturing, distribution and office space. The properties are all fully occupied with major tenants including United Stationers Supply Co., ACI Plastics, Inc., Misty Mate, Inc. and Triumph Group, Inc.

For more news and information visit Blumberg Capital Partners.

ARC NYRR Buys Midtown Manhattan Office for $220.3M

American Realty Capital New York Recovery REIT (NYRR), a a real estate investment trust managed by American Realty Trust, announced this week that it had purchased 333 West 34th Street in Midtown Manhattan for $220.3 million, or about $632 per square foot, exclusive of closing costs. NYRR bought the 10-story office building from SL Green, which was represented by the Jones Lang LaSalle capital markets team.

Michael A. Happel, Chief Investment Officer of NYRR, explained, "The purchase of 333 West 34th Street exemplifies our commitment to buying well-located, well-tenanted, stabilized assets in New York City with potential for asset appreciation and limited downside risk. This building is situated between the burgeoning Hudson Yards and Herald Square sub-markets of Midtown Manhattan, and features top-quality tenants at below market rents. With the addition of this asset, we have created a portfolio totaling approximately $775 million. We remain focused on acquiring quality New York City real estate with rents that are accretive to our distributions."

The ten-story, 348,363-square-foot office tower was built in 1953 on three-quarters of an acre in Midtown Manhattan's Penn Plaza / Garment District submarket, between Eighth and Ninth Avenues, according to a CoStar report. The property was 100% leased at the time of sale to four tenants: The Segal Company (Eastern States), Inc.; The Metropolitan Transportation Authority; Godiva Chocolatier Inc.; and Sam Ash New York Megastores, LLC.

For more news and information visit Blumberg Capital Partners.

Google Moving to Republic Square in 2014

Google Inc. has ended their search for new space in the Washington, DC market as it inked a new lease for 54,000 square feet at Republic Square I. Google will assume its new space at 25 Massachusetts Ave. NW in 2014, a location about 25,000 square feet larger than the company's current downtown DC office at 1101 New York Ave. NW. The building is one block from Union Station and on the southern end of the NoMa Business Improvement District. Doug Mueller and Evan Behr of Jones Lang LaSalle represented Republic Properties Corporation and CBRE represented Google. Terms of the deal were not disclosed.

"Google is another bright light in NoMa's media and technology constellation. We're delighted to welcome them to the most connected neighborhood in DC," said NoMa BID President Robin-Eve Jasper. Google joins several other large media organizations already in the NoMa neighborhood, including NPR, which moved into its new headquarters at 1111 North Capitol Street, NE in April, Sirius XM Satellite Radio, CNN, and CQ Roll Call.

According to a Silicon Valley Business Journal article, the tech company lobbies DC policymakers on a range of issues, from immigration reform to patent issues. The Post also points out that Google is still working through the process of convincing lawmakers that Google Glass does not violate privacy laws.

For more news and information visit Blumberg Capital Partners.

CRE Fundamentals Continuing Recovery

New analysis from the CoStar Commercial Repeat Sales Index (CCRSI) released this month shows that prices in the commercial real estate market have recovered more rapidly than transaction activity, suggesting that investors are focusing on the most attractive deals. According to the data, investment transaction activity has progressed much like the overall economy, showing steady but painfully slow improvement. The data suggests that uneven liquidity remains an important force to be reckoned with among the myriad adverse factors weighing on CRE value recovery, especially for non-institutional-grade properties or assets in non-prime markets.

"For some time now, there’s been a significant imbalance between the amount of capital chasing real estate deals and the available supply of reasonable, institutional-quality deals," said Michael Zietsman, managing director and regional head of the Southwestern Capital Markets Group for Jones Lang LaSalle. "If there were more supply, there would be much larger transaction volume. The primary markets and product types have fully recovered, but investors want high-quality real estate. That’s been our biggest challenge."

For more news and information visit Blumberg Capital Partners.