Washington Prime Acquires Glimcher in $4.3B Deal

Washington Prime Group Inc., a spinoff of Simon Property Group, announced this week that it had completed the acquisition of Ohio-based REIT Glimcher Realty Trust. The $4.3 billion acquisition was approved by shareholders of Glimcher Realty Trust in a special meeting on Sunday. According to a report from The Columbus Dispatch, the combined real-estate investment trust will be called WP Glimcher and will own and manage about 120 U.S. malls that contain about 68 million square feet of leasable space. Under the terms of the agreement, Glimcher shareholders will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WP Glimcher common stock.

"We are very pleased to have completed our acquisition of Glimcher so quickly, which will allow us to begin taking advantage of the strengths of the combined company, including a broad and diverse group of strong cash flowing assets and a strong platform in Columbus as a foundation for growth," said Mark Ordan, Executive Chairman of WP Glimcher. "We are focused on reducing leverage, including through joint ventures and possible asset sales, maintaining our investment grade rating, strengthening our asset base through development and redevelopment opportunities, and strategically acquiring new properties in both enclosed and open air large format shopping centers that have a long term place in their markets."

Citi is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor, to Washington Prime. Willkie Farr & Gallagher is serving as legal advisor to Washington Prime in connection with the sale of the two Glimcher properties to Simon. GreenOak Real Estate US and Morgan Stanley & Co. are serving as financial advisors, and Simpson Thacher & Bartlett is serving as legal advisor to Glimcher. WP Glimcher expects to issue fiscal year end 2014 earnings in late February, which will provide updated financial information and guidance for the newly combined company.

For more news and information visit Blumberg Capital Partners.

Highwoods Buys One Alliance Center in Atlanta for $143.4M

Raleigh-based Highwoods Properties, a publicly traded REIT, announced today that it had purchased One Alliance Center in Atlanta for $143.4 million, or $259 per square foot. The acquisition means that the company now owns both One and Two Alliance Center, having acquired Two Alliance Center last September for $146.7 million from Tishman Speyer. Dallas-based mortgage servicer ORIX Capital Markets sold One Alliance Center in a deal marketed by CBRE. In March, previous owner Tishman Speyer negotiated the transfer of ownership in One Alliance to ORIX, according to an Atlanta Business Chronicle article.

"The acquisition of One Alliance more than doubles our presence in Buckhead where we now wholly-own over one million square feet of contiguous Class A office space," said Ed Fritsch, president and chief executive officer of Highwoods. "This is a rapidly tightening submarket and we forecast leasing at One Alliance to exceed 93% within three years. In addition, we see opportunities to 'Highwoodtize' the property and expect to garner operating and leasing synergies by owning both Alliance Center towers through shared parking, shared amenities, shared vendor agreements and customer expansions to name a few."

The 20-story One Alliance building was 67% leased at the time of sale. Both towers stand over Georgia 400, an artery for intown office workers to the Atlanta suburbs, and across from Phipps Plaza, a ritzy mall owned by Simon Property Group.

For more news and information visit Blumberg Capital Partners.

Invesco Invests in 230 Park Ave

Dallas-based Invesco Real Estate has been brought on as a new partner invested in 230 Park Ave. in New York, the tower above Manhattan's Grand Central Terminal. Monday Properties recapitalizes the landmark Manhattan office tower, buying out a Goldman Sachs Group Inc. real estate fund, according to a Bloomberg report. Monday Properties and a Goldman fund venture purchased the 34-story building in 2007 for $1.15 billion.

The deal "commences this new chapter for 230 Park Ave.," said Monday's CEO Anthony Westreich in the statement, calling the 34-story tower "a unique landmark environment." Terms of the transaction with Invesco's Dallas-based real estate unit were not disclosed. As part of that deal, Goldman is exiting the building, according to Brian Robin, a vice president at Monday Properties. Monday Properties will continue to manage 230 Park Avenue where major tenants include ING, Simon Property Group, Tokio Marine Management and Houston & Rosen P.C.

For more news and information visit Blumberg Capital Partners.