Ventas Acquires $3.1B in Real Estate Assets from Atria

Ventas, Inc. announced this week that it had completed the acquisition of $3.1 billion in 118 properties with the aide of Red Mortgage Capital, Berkadia Commercial Mortgage and PNC Bank according to a National Real Estate Investor article. Ventas acquired the 118 community portfolio through mergers of Atria Senior Living Group, Inc., and certain other companies that owned communities previously managed by the group, with Ventas subsidiaries. The lenders originated more than 120 commercial mortgage loans made to subsidiaries of Atria noted Thomas Hauser, partner at Ballard Spahr, which led the legal team that advised the lenders in the transactions.

"We are gratified to acquire this exceptional portfolio of seniors housing communities located in affluent coastal markets managed by Atria Senior Living, an industry leading manager," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. "This transaction demonstrates Ventas's strength at structuring and completing complex, multi-party transactions collaboratively. We are excited to join forces with Lazard Real Estate Partners and Atria's management team."

"We have been working closely with Ventas to finalize this transaction, and we are so pleased that today we can announce its completion," said John A. Moore, Atria's Chief Executive Officer. "This has been a complicated process, especially the structure of the transaction and the portfolio location in high barrier-to-entry real estate markets that havecomplex regulatory frameworks, but I believe that our ability to work together with the Ventas team to ensure a smooth transition is a great sign of things to come. We couldn't be more excited about what the future holds."

For more news and information visit Blumberg Capital Partners.

Pittsburgh's Tallest Office Tower Sold for $250M

The U.S. Steel Tower, a Pittsburgh landmark and tallest building, traded hands this week for $250 million as Area Property Partners sold the property to a New York-based investment group according to a Daily Mail article. Area Property Partners originally acquired the property in 1999 when they bought part of a $265 million mortgage held by GE Capital. Peter Braverman, a shareholder in the buildings' managers Winthrop Management, said that the current building management will stay in place after the transition. "Every new owner tries to improve a building and provide better services, but there are no dramatic plans at this point," Braverman said.

The 64-story building at 600 Grant Street, completed in 1970 and built by U.S. Steel, is 92% occupied with major tenants including the University of Pittsburgh Medical Center, U.S. Steel Corp., and PNC Bank. "We could get to 100 percent (occupation), based on the expansion of UPMC," said Mark Karasick, a principal in the new ownership group. UPMC's renovation of executive and administrative offices at the tower won LEED-Silver certification for energy conservation and environmental design.

For more news and information visit Blumberg Capital Partners.