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.

PCCP, Capstone JV Developing PDX Logistics Center II

PCCP, LLC, a California-based real estate finance and investment management firm, has partnered with Capstone Partners to develop a Class A, 355,200-square-foot industrial building in Portland, Oregon. Situated on a 17.2-acre site, PDX Logistics Center II is adjacent to the Portland International Airport and the PDX Phase I development, also a joint venture between PCCP and Capstone.

"We are pleased to embark on a second quality industrial project with Capstone Partners in the Portland region. The firm has a history of successful development in the Pacific Northwest, and PDX Logistics Center II will deliver a highly institutional project in an irreplaceable logistics-oriented location," said Erik Flynn, managing director with PCCP, in a press release.

PDX Logistics Phase II will be a 32-foot clear height, cross-docked building which will allow for either a full building user or a multi-tenant situation. The Portland industrial market continues to show strength, according to a GlobeSt.com article. It has seen a decrease in vacancy from 5.7% in the second quarter of 2014 to 4.8% in the second quarter of 2015 with rents increasing 9.3% during the same timeframe.

For more news and information visit Blumberg Partners.

Hillwood Breaks Ground on 1.1M SF Industrial Build

Hillwood Investment Properties, a full service commercial real estate developer, investor and advisor created in 1998 under the Hillwood Development Company as a vehicle to develop and acquire industrial properties outside of AllianceTexas, broke ground this week on the Gateway South Building 3 in San Bernardino, CA. The 1.1-million-square-foot industrial building, scheduled for delivery by the end of the year, is an extension of the 14-million-square-foot AllianceCalifornia industrial park.

"We feel very good about getting a building of this size up. We have done several buildings of this size over the years, and have leased them," John Magness, SVP at Hillwood Investment Properties, told GlobeSt.com. "Usually about mid-way through construction we will find a tenant. This building has all of the amenities that a tenant would want, like extra truck parking, extra car parking, truck circulation around the building and a 36-foot clear, which is the trend in the larger industrial building. We just started grading last week, so we are about nine months away from end of the year delivery of the building, hopefully with a tenant, but if not, we will work on the lease-up even after construction."

Hillwood still has 60 acres left to develop at the park, but it is also busy purchasing adjacent land to continue expanding—as is the case with Gateway South Building 3. Magness thanks the city for their ability to complete these massive industrial developments. "It is hard to get buildings built in California, but this is a very pro-business city," he says. "The project is part of the success story of San Bernardino, and that is because, despite their bankruptcy, the city has continued to process buildings and get things done."

Hillwood secured a construction loan through PCCP for the development process. HFF associate directors Cullen Aderhold and Brian Torp, senior managing director Trey Morsbach and real estate analyst Carson Dennis secured the undisclosed funds on behalf of Hillwood.

For more news and information visit Blumberg Capital Partners.

Portman Holdings Buys 230 Peach Street

Portman Holdings, the Atlanta-based developer with over 60 years of experience developing over 50 million square feet of premium real estate across the world, announced this week that it had purchased the 27-story office building at 230 Peachtree Street. Portman first developed the 50 year old building in 1965 as part of the Peachtree Center mixed-use development. PCCP provided a senior loan to the Atlanta-based developer to purchase the property from Parmenter Realty Partners for an undisclosed amount.

"When I first developed the 230 Peachtree tower, I commissioned a Robert Helsmoortel sculpture for the plaza out front. It was titled 'Renaissance' to symbolize Atlanta's renewal," said John Portman, Jr., founder and chairman of Portman Holdings. "The sculpture, unfortunately, is long gone, but the 230 tower is once again set to help spark renewal in downtown Atlanta, and I could not be more proud or more pleased to be a part of it."

Portman plans to immediately begin renovating the property which, when completed in late 2015, will see a new 200-key Hotel Indigo® hotel occupy floors two through nine, with approximately 290,000 square feet of office space on floors 10 through 27. John Portman & Associates will provide architectural services for the development. The building will house the only hotel in downtown Atlanta that is directly above a MARTA station, providing access to some of the city's best attractions, convention locations, business districts and more.

For more news and information visit Blumberg Capital Partners.

Harmon Cove Building Draws Over 50 Offers, Sells for $11.5M

One Harmon Plaza, a nearly 200,000-square-foot office building in Secaucus, NJ officially sold a couple of weeks ago as a group headed by Woodland Park-based Mountain Development Corp. purchased the property for $11.5 million. Mountain Development acquired the 10-story property from New Boston Fund Inc., Mountain Development President Michael Seeve said in a statement. Mountain Development bought the property with a partner, a fund managed by PCCP LLC, a Los Angeles-based real estate investment firm. There were more than 50 signed letters of interest before the recent sale, with 18 tours of the property and 11 firm offers made before Mountain Development's was accepted.

"One Harmon Plaza provides a solid value-add opportunity for new ownership in terms of the ability to lease up and re-position the building at competitive rents," said David Bernhaut of Cushman & Wakefield, which brokered the deal.

"The sponsor's business plan, the property's significant upside and the attractive basis drew considerable attention from a variety of institutional and private equity funds," added John Alascio of C&W's equity team.

The Jersey Journal, owned by Advance Publications, moved from its nearly 90-year-old headquarters at 30 Journal Square, Jersey City, to One Harmon Plaza in January. The newspaper relocated to the 10th floor of its new location, taking 10,000 square feet.

For more news and information visit Blumberg Capital Partners.

Lake View Center in Ontario Sold to BH Properties

BH Properties, a Los Angeles-based commercial real estate investment company, announced this week that it had acquired Lake View Center in Ontario, CA for $13.8 million. The three story, 106,345 square foot office property was sold by PCCP and The Muller Companies, with representation from Kevin Shannon, Darla Longo and Phil Woodford of CB Richard Ellis.

"This Class A property is well located in a market that is showing signs of recovery," said Executive Vice President of BH Properties Steve Jaffe. "The company is very excited about our recent acquisitions in the Los Angeles basin. After an 8-year hiatus from California purchases, this property (along with the other two recent transactions) marks a new acquisition strategy for the company – while still seeking value-add type assets, we now are looking to acquire higher quality properties in more densely populated areas."

Lake View Center, built in 2004, sits at 3257 and 3237 E. Guasti Road. The property was 62% leased at the time of sale, with major tenants including East West Bank, T-Mobile and University of La Verne.

For more news and information visit Blumberg Capital Partners.

HNA Property Spends $130M on NYC Hotel

HNA Property Holding Group announced this week that, with a $65 million senior loan provided by PCCP LLC, the company was purchasing Cassa Hotel in midtown Manhattan for $130 million. Assa Properties sold the 165-room hotel portion of Cassa Hotel and Residences at 70 West 45th Street to the Chinese corporation, headquartered in Beijing, which will rebrand the hotel as a boutique luxury four-star hotel that will be managed by Viceroy Hotel Group.

"This investment gives PCCP the opportunity to originate a loan at an attractive basis on a newly constructed luxury hotel in a market with strong fundamentals," Rob Cohen, senior vice president with PCCP, said.

"New York City has demonstrated the ability to absorb new supply as exhibited by its historically high occupancy rates," Arthur Adler, a managing director with JLL Hotels said. "The City has rebounded from the recession, and the market will remain high on investors’ list of cities to target for investment in 2012."

For more news and information visit Blumberg Capital Partners.

PCCP Provides $23.75M Loan for PA Office Complex

Pacific Coast Capital Partners, LLC, (PCCP) provided a $23.75 million senior loan to Bala Cynwyd, PA-based Keystone Property Group for the recapitalization of a five-building Class A office complex according to a National Real Estate Investor article. John Randall, senior vice president of PCCP said "we see this property as one with strong growth potential over the coming years and believe Keystone, as a premier suburban office owner, will manage the property effectively and increase tenant interest."

Built in 1973, the property underwent a substantial transformation when Keystone invested more than $10 million to re-skin and modernize four of the five buildings and make other high-end enhancements. The complex totals just over 228,000 square feet within Sentry Park West in Blue Bell, PA, a suburb of Philidelphia. The property consists of five office buildings: Gwynedd Hall, Dublin Hall, Abington Hall, Merion Towle, and a PNC Bank branch. "This property appeals to small and mid-size tenants looking for a prestigious location and smaller floor plates that offer corner glass with superior light and air," said John Prete, vice president with PCCP.

For more news and information visit Blumberg Capital Partners.

JV Secures $23M Loan for DC Office Condo

In December of last year, Monument Realty and Angelo, Gordon & Co. bought 2055 L Street NW in Washington, DC in an all-cash deal; this month, they've secured a 23.2 million senior loan commitment from PCCP LLC for the acquisition and re-development financing of the property. With this loan in place, the joint venture will now commence a six-month rehabilitation to the owned 102,000 square foot condominium office portion of the 237,000 square foot building.

"The owner plans to renovate the property to position it as a quality Class A asset," said John Randall, senior vice president at PCCP, LLC. "The overall competitive vacancy rate in the CBD is approximately 6.4 percent. Once the renovation is completed, its quality and key location will be desirable to high-profile law firms, lobbyists, and non-profit organizations and associations."

Verizon sold the property, represented by Cushman & Wakefield, to the JV for $12.75 million. The JV plans to move forward in the coming months with a full renovation of 2055 L that will improve the now Class B building’s common areas, facade and building systems and add ground-floor retail space.

For more news and information visit Blumberg Capital Partners.