Lincoln Property Sells Austin Centre for $130M

Pasadena, Texas-based Lincoln Property Company has sold Austin Centre, a premiere mixed-use project in Austin’s CBD, for $130 million. An affiliate of Sidra Capital, an investment bank headquartered in Jeddah, Saudi Arabia, secured a loan with JPMorgan for the acquisition, according to a Real Estate Capital Magazine article. Terms of the deal were not disclosed; Lincoln Property has owned Austin Centre since April 2013, public records show. Lincoln states earlier in the year that it would be leaving Austin Centre to move to the developer's newest office building — 5th+Colorado, which was designed by designed by HKS Architects of Dallas.

Originally built in 1986, Austin Centre is a 326,335 square foot Class A building at 701 Brazos Street in Austin. The 16-story building provides views of the Capitol and features amenities such as a health club, travel agency, car rental, clothing, sundry shop, hair styling, restaurants, meeting rooms, ATM machine, shoe shine service and valet service. The property was renovated in 2012-2015, and is attached via a 200-foot atrium with the separately owned Omni Austin Hotel Downtown.

For more news and information visit Blumberg Partners.

Lincoln Picks Up LA Office Complex for $135M

LPC Realty Advisors I, LP, and affiliate of Dallas-based Lincoln Property Company, has purchased an office campus in West Los Angeles on behalf of a public pension fund client for a reported $135.3 million, or about $240 a square foot. The complex was sold by a joint venture between Mullen Co. of Irvine and Rockwood Capital of San Francisco, which bought the property for $136 million in 2007. Terms of the deal and representative agent information was not disclosed.

"Large office campuses are increasingly hard to come by in West LA's desirable market, so acquiring Wateridge was a unique opportunity for Lincoln, and certainly in line with our strategy,” said David Binswanger, Executive Vice President of Lincoln Property Company. "We see its potential to help meet demand for quality office space in this region.”

Lincoln's finance director, Stephen Lindgren, said he expects to draw tenants ranging from tech and media firms to law offices and accountants for the remaining space. "As Playa Vista and Corporate Pointe continue to tighten, we'll be able to offer a lower-cost alternative to be in those same markets,” he said.

Known as Wateridge, the 6-building Class A office campus in Ladera Heights sits on 21 acres at the corner of La Cienega Boulevard and Slauson Avenue with easy access to the 405 and 10 freeways. The property was originally constructed in phases beginning in 1989, with upgrades in 2010 to include additional parking, renovated common areas and improved landscaping; the property has since become a campus-style, multi-tenant facility with a diverse mix of office and retail tenants. Wateridge was approximately 70% leased at the time of sale, with major tenants including Evolve Media, Kaiser Permanente, and the Los Angeles County Department of Children and Family Services (DCFS).

For more news and information visit Blumberg Partners.

Equus Buys Mid America Plaza

Philadelphia-based Equus Capital Partners, formerly known as BPG Properties, Ltd, has agreed to purchase Mid America Plaza in Oakbrook Terrace, Illinois, a Class A office complex with two adjoining ten-story towers. Equus is believed to be paying $190 per square foot for the property, which puts the purchase price at around $80 million, making it the largest Chicago suburban office deal of 2016 to date. The complex is being sold by Illinois Teachers' Retirement System through a fund managed by Dallas-based Lincoln Property, which originally acquired the buildings in 2007 for $99.4 million. Full terms and representation were not disclosed, but CBRE had been marketing the property, and HFF noted that it was representing the Lincoln Property venture in the sale.

Built in 1985 and by Shaw & Associates, Mid America Plaza is positioned along the western edge of the Oakbrook Center mall, which Jim Postweiler, a JLL managing director who is not involved in the Mid America Plaza deal, said is a "huge amenity" for office workers. "It's a focal point of activity. It's like a mini central business district." The two buildings at 1 Mid America Plaza and 2 Mid America Plaza cover 414,442 rentable square feet, and each feature open terraces on odd floors with a six story atrium, underground parking, and 24-hour security. The property is currently 87% occupied, according to marketing materials on the property from HFF's Chicago office.

For more news and information visit Blumberg Partners.

LPC Closes $71.6M Charlotte Office Tower Deal

LPC Realty Advisors I, LP, an affiliate of Lincoln Property Company, in conjunction with their local affiliate Lincoln Harris, has closed on the purchase of a 32-story office building in Charlotte, North Carolina for $71.6 million on behalf of a pension fund client. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property, represented the seller in the transaction, a partnership controlled by the Durham-based Dilweg Companies, and also secured a $44.1 million loan on behalf of LPC to finance the purchase. Initial proceeds of $36.1 million were used for post-close acquisition financing, while the remainder will be used for future capital costs, according to a CPE report. The Dilweg partnership originally acquired the building in 2013 for $59.6 million.

"The market aggressively pursued 121 West Trade Street as buyers realized the building’s potential to harness very strong rents in the future,” said HFF senior managing director Ryan Clutter. "We are currently experiencing the strongest demand in the market for value-add office buildings located in strong CBD’s like downtown Charlotte. 121 West Trade Street was no exception as considerable capital aggressively competed for this asset."

Built in the 1990s and formerly known as Interstate Tower, 121 West Trade Street was designed by Kohn, Pedersen and Fox, with a dramatic two-story lobby featuring upscale green, black, and white marble and brass trim. The 329,930 square foot building is in the heart of downtown Charlotte within walking distance of amenities and attractions including The EpiCentre, Spirit Square Center for the Arts, Discovery Space Center, Time Warner Cable Arena, the Levine Center for the Arts, and the new Gold Line streetcar system. The property was 74% leased at the time of sale with major tenants including Chicago Bridge & Iron, SAS Institute, Caudle & Spears and Brookwood Associates.

For more news and information visit Blumberg Partners.

Carlyle & Songy Sell Galleria Place in Houston

An affiliate of Lincoln Property Co. has purchased Galleria Place, a two-building Class A office complex across from the Galleria Mall in Houston, Texas, for an undisclosed amount. The property was sold by The Carlyle Group and Songy Highroads LLC in a deal arranged by Holliday Fenoglio Fowler; according to a press release, HFF is also engaged to arrange financing for the buyer. Galleria Place previously traded hands in March 2013 when California-based Chase Merritt and Pacific Coast Capital Partners LLC sold the property to The Carlyle Group and Songy Highroads; HFF arranged that sale as well.

The property includes Galleria Place I, an 11-story,, 217,006-square-foot office building at 5251 Westheimer at Sage; and Galleria Place II, a 10-story,178,468-square-foot office building at 5333 Westheimer; and a building occupied by Regions Bank. According to a Houston Chronicle report, Songy is developing two hotels, Hyatt Regency Galleria and Hyatt Place Galleria nearby. Galleria Place was 53% leased at the time of sale to tenants including Just Energy and HIS. 

For more news and information visit Blumberg Partners.

Construction Begins on $260M Runway in Playa Vista

Construction began this week on the long-anticipated lifestyle center that will soon connect the Phase I residential community and the Campus at Playa Vista. A development team led by Lincoln Property Co., Phoenix Property Co. and Paragon Commercial Group spearhead the $260-million shopping and apartment project called Runway, which is intended to be the commercial and social heart of the planned mixed-use community that has been under construction for more than a decade on land south of Marina del Rey, once controlled by aviation mogul Howard Hughes.

"This project has been a long time coming, so we are excited to be moving to the next stage in the development process and to be that much closer to injecting more energy into this already vibrant community," said David Binswanger, Executive Vice President of Lincoln Property Company. "We want Runway to be at the forefront of everything new in the worlds of fashion, art, design and technology and to be a real center of the community where people come to shop, eat, and to just relax."

"We are pleased to see such early interest from a great group of top national retailers. The fact that we are signing best-in-class tenants in every category we are pursuing is a testament to our vision for Runway," said Mark Harrigian, Principal of Paragon Commercial Group. "When complete, Runway will be brimming with chef-driven restaurants and a unique mix of retailers offering anything from upscale couture to California lifestyle and beach-chic fashions."

Aided by a new $150 million construction loan through a syndicate of banks led by Bank of America, the newly begun project will include 221,000 square feet of retail, 420 apartments and 35,000 square feet of office space spread across three separate buildings. Whole Foods has already committed to move into a 35,755 square-foot space adjacent to McConnell Avenue, on the retail center's ground level. Down the street, the Cinemark multiplex at Runway will feature nine screens in over 46,000 square feet and the company's NextGen design concept with RealD 3D capability, self-serve concession stands and an open plaza with a cocktail lounge. Shoppers can also expect to find a CVS Pharmacy, Veggie Grill and a national bank branch at Runway.

For more news and information visit Blumberg Capital Partners.