Berkeley Buys MA Office Building for $22M

Boston-based Berkeley Investments announced the purchase of the office building at 200 Exchange Street in Malden, Massachusetts for $21.686 million,or about $70 per square foot. The 314,176-square-foot office building was sold by an affiliate of KBS Real Estate Investment Trust, Inc., which was advised by Gramercy Property Trust in the transaction. Full terms of the deal were not disclosed.

"Malden Center is currently undergoing a dramatic transformation as a downtown redevelopment is underway that will reconnect streets, relocate City Hall, and introduce hundreds of new residential units along with numerous new retail destinations," said Ben Sayles at HFF, which represented the seller and procured the buyer in the transaction. "With a lower price point than other close-in suburbs and with immediate T access, Malden is emerging as a new residential and commercial hub for the region and 200 Exchange Street is well positioned to both contribute to and benefit from this transformation."

Built in 1985, 200 Exchange Street was originally constructed as an operations center for Bank of Boston; due to its original use, the building currently has the power and redundancies necessary for data center tenants that are cost prohibitive to install on a speculative basis. Berkeley has already engaged Stantec to renovate the 4-story building, completing renovating the interior spaces and turning it into a mixed-use asset with street level retail, a state-of-the-art data center, and nearly 200,000 square feet of creative office space. The building is in Malden Center, directly across from the Malden Center T stop with service to and from downtown Boston in minutes.

For more news and information visit Blumberg Partners.

101 Independence Center Sold for $108M

A corporation affiliated with Cornerstone Real Estate Advisers, one of the largest global real estate investment managers and member of the MassMutual Financial Group, picked up the 20-story 101 Independence Center office tower in uptown Charlotte for $107.75 million this month, according to public records. HFF orchestrated the sale on behalf of KBS Real Estate Investment Trust and asset manager Gramercy Property Trust Inc., which originally put the property on the market in December 2014 seeking to get $120 million for the building. Terms of the deal were not disclosed.

"101 Independence Center received very strong interest from the marketplace attracting a deep bench of investors. Charlotte has truly evolved into a dynamic market for institutional capital," said Ryan Clutter, senior managing director with HFF. "Charlotte has truly evolved into a dynamic market for institutional capital. Given the strong investor appeal of Charlotte currently, we anticipate a very active selling environment through the remainder of 2015 with many notable institutions seeking quality investments in the city."

Located at 101 N. Tryon St., the building houses about 565,000 square feet of office space and is 83% leased, with Bank of America as the largest tenant. Northeastern University opened a satellite campus in the building in 2011. The construction of the building was completed in 1983 and sits on the site of the former site of the Independence Building at Charlotte's Independence Square.

For more news and information visit Blumberg Partners.

300 North LaSalle Makes Chicago Record with $850M Sale

In a deal that marks the most ever paid for a Chicago office building, KBS Real Estate Investment Trust II announced this week that it had closed on the sale of the 60-story, 1.3 million-square-foot office tower at 300 North LaSalle in Chicago for $850 million, or $652 per square foot. Newport Beach, CA-based Irvine Company purchased the property after a competitive bidding process that was overseen by HFF.

KBS originally acquired the property in 2010 from Houston-based Hines for $655 million. According to a document filed with the US Securities and Exchange Commission, KBS "repaid the entire $344.6 million principal balance and all other sums due under a mortgage loan secured by the 300 N. LaSalle Building, including a prepayment penalty of $13.7 million."

"In 300 N. LaSalle, the Irvine Co. saw an irreplaceable, nationally iconic property in a highly coveted Chicago location," said KBS Central Region President Ken Robertson in a statement. "The asset has performed extremely well, which only underscores its enduring quality. We believe this is undoubtedly the trophy office asset of this market and a signature property for any office investor."

For more news and information visit Blumberg Capital Partners.

KBS REIT III Purchases RBC Plaza for $118M

KBS Real Estate Investment Trust III announced this week that it had acquired RBC Plaza, a 40-story building that contains 609,368 square feet of office space and 68,677 square feet of retail and amenity space above an underground parking structure. The full contract price for the sale was reported at $126.5 million, according to a CoStar report. Tom O'Brien and Terry Kingston with Cushman & Wakefield / NorthMarq, along with Mike Winn and Tim Richey with Cushman & Wakefield / Denver, represented the seller, Brookfield Office Properties. KBS Realty Advisors handled the acquisition in-house.

"Brookfield, the seller, has done a wonderful job of running the asset, however the pending closing of one of the anchor retailers provides an exciting opportunity to rethink the four-story retail section of this project," said Rodney Richerson, KBS regional president. "We believe we have a great opportunity to convert some of the upper-level retail floors into creative office space, along with creating a primary entrance off of Nicollet Mall and improving the overall retail mix. In addition to these improvements, we anticipate adding stronger office amenities, conference rooms, a fitness facility and some lobby renovations that will cost approximately $3 million dollars."

RBC Plaza is a 678,045-square-foot mixed-use property in downtown Minneapolis located at 60 South 6th Street. The building is strategically located in Minneapolis' financial district along Nicollet Mall, downtown's most popular and well-known shopping district. Built in 1991, the building was 83% leased to 34 tenants who pay a total of about $8.6 million in rent annually, as of January 1. Tenants include RBC Wealth Management, Marquette Financial Companies, and Fish & Richardson. KBS plans to invest approximately $26.6 million in renovations over the next four years, which will include converting about 32,000 square feet of retail space into office space, KBS said in its SEC filing.

For more news and information visit Blumberg Capital Partners.

KBS REIT III Buys McEwen Building for $40M

KBS Real Estate Investment Trust III announced this week that it had completed the purchase of The McEwen Building in Cool Springs, Tennessee from Denver-based Amstar for $40 million. The Nashville Business Journal first reported on the sale early last month, after KBS disclosed its plans to buy the 175,000-square-foot building in a filing with the Securities and Exchange Commission. Amstar was represented by Don Albright of Cushman & Wakefield/Cornerstone in Nashville, while KBS represented itself in the transaction.

"From an asset perspective, The McEwen Building 'out-leased' several competitor buildings due to its quality, superior amenities and proximity to Interstate 65," said Stephen Evans, KBS Mid-Atlantic Region senior vice president and director of acquisitions and dispositions. "From a location perspective, the area has had positive net absorption for the past 10 years, and office vacancy stands at six percent and unemployment is low at seven percent. The building and the market have all the characteristics we are seeking."

The McEwen Building is a LEED-designed six-story office building 15 miles south of downtown Nashville. Amstar, in partnership with Southern Land Company, began developing the property in 2008 on a 10.7-acre site at the intersection of West McEwen Drive and Mallory Lane. The property is currently 97% leased to credit tenants, including Renal Advantage, Mars Petcare, Raymond James, Carlisle Companies, Inc. and Cisco Systems, Inc.

For more news and information visit Blumberg Capital Partners.