JV Sells $190M Office Project In Denver to Invesco

Denver-based developer East West Partners and a controlled affiliate of Starwood Capital Group announced the sale of an office project in Denver's Union Station neighborhood to Invesco Real Estate. According to a Denver Post article, East West Partners will stay on in its role as developer of the $190 million project, and Invesco ultimately will own the completed office tower, which broke ground last week. Terms of the deal and representation were not disclosed, but records show that Invesco paid $18 million.

"This is a unique opportunity for all of the parties involved," said Chris Frampton, Managing Partner of East West Partners. "The building is 81% leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition. It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate."

"We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut," added Dan Schwaegler, Senior Vice President in the Asset Management Group at Starwood Capital Group. "Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area, and we look forward to watching the city's continued emergence as one of the most dynamic metropolitan areas in the United States."

16 Chestnut will be a 19 story building with above grade parking incorporated into the structure, anchoring the fourth and final corner of the Millennium Bridge. The architect for the project is Gensler, while BuildMark will provide construction management services and Saunders Construction will serve as general contractor.

For more news and information visit Blumberg Partners.

 

Starwood Picks Up Office Parks for $82M

Starwood Capital Group, the CT-based private investment firm, has purchased two business parks in Miramar, Florida from the Metropolitan Life Insurance Co. for $82 million. MetLife sold the two buildings, Miramar Center I and III, at 3401 and 3601 Southwest 160th Avenue, and two additional buildings, Huntington Centre I and II, at 2801 and 2901 Southwest 149th Avenue, according to a report from The Real Deal. HFF marketed the properties on behalf of the seller, and worked on behalf of the buyer to place the acquisition loan. A Starwood affiliate closed on a $60 million mortgage to finance the deal.

"These high-quality suburban office buildings generated much interest among institutional real estate investors. There is a clear interest in acquiring Class A office buildings, in submarkets that have a nearby, well-educated workforce and excellent nearby transportation hubs," said HFF senior managing director Hermen Rodriguez in a statement. The portfolio consists of four, four-story office buildings on both sides of Interstate 75 in western Miramar, which straddles the border between Miami-Dade and Broward counties. Vanderbilt Partners has been assigned as the property manager of the portfolio.

For more news and information visit Blumberg Partners.

Google Buys Part of Pacific Shores Center

A joint venture between Starwood Capital Group and Blackstone Group has sold six office buildings in the Pacific Shores Center office park in Redwood City, California for $585 million. Google said in its quarterly report that it bought land and buildings but provided not additional information about the transaction. "We expect to continue to hire aggressively for the remainder of 2014," Google said in the filing. "Acquisitions will also remain an important component of our strategy." Additionally, the filing also revealed that the company committed to nearly $1 billion in office lease agreements through 2028.

Starwood Capital bought Pacific Shores Center in December 2006, near the height of the commercial-property market, from its developer and Walton Street Capital, and immediately resold two of the buildings, according to a Bloomberg report. Starwood Capital paid about $833 million in the deal, its first office acquisition in the San Francisco Bay area.

Councilwoman Rosanne Foust, who also heads the San Mateo County Economic Development Association (SAMCEDA), said she thinks Google will be an excellent partner with the city, its schools and community much as it has in Mountain View and similar to how Redwood Shores' Oracle has participated with money and volunteerism. "Google is an iconic company. It is a very community-oriented company and there is the potential for it to be a real partner with Redwood City," she said.

For more news and information visit Blumberg Capital Partners.

JV Buys Fort Greene Office for $195M

A joint venture between RXR Realty and American Landmark Properties announced earlier this month that it had acquired the long-term lease of a large office building at 470 Vanderbilt Avenue, near Barclays Center in Brooklyn. Starwood Capital Group and GFI Development Company closed on the sale of its 75-year ground lease at 470 Vanderbilt for $195 million, according to a CoStar report. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale.

This week, Meridian Capital Group of New York announced that it had arranged a $142 million mortgage for the purchase of the property. The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale. According to a report in CrainsNewYork.com, this is one of the largest acquisitions in the outer boroughs in recent times and yet another testament to Brooklyn's growing popularity.

"The 470 Vanderbilt Avenue acquisition represents an opportunity for us to buy a building with healthy current returns generated by credit tenants, while also participating in the amazing transformation that is taking place across Brooklyn," RXR chairman/CEO Scott Rechler said in a statement. The deal is RXR's first New York City acquisition as part of its New York Metro Emerging Sub-Market initiative, which focuses on undervalued neighborhoods that are well-positioned geographically and demographically with strong infrastructure in New York City's outer boroughs and suburban downtown districts located around transit hubs.

The 10-story, approximately 650,000-square-foot property was 88% leased at the time of sale with tenants including the City of New York and The League Education & Treatment Center, a 50-year old, internationally-recognized, not-for-profit organization serving children and adults with developmental disabilities. The building is also occupied by media and technology tenants, Aereo and Switchnet, and a state-of the-art, self-sustaining data hub for technology and telecommunications companies.

For more news and information visit Blumberg Capital Partners.

Kimco Sells InTown Suites Portfolio for $735M

Kimco Realty Corp., the largest U.S. owner of community shopping centers, announced this week that it had closed on the sale of the InTown Suites company and real estate assets for $735 million, including $609 million of existing mortgage debt. An affiliate of Connecticut private equity firm Starwood Capital Group bought 100% of the common stock of InTown Hospitality Corp. with representation from a team of Paul Hastings attorneys led by Rick Kirkbride, Tom Kruger, and David Viklund. The portfolio includes 138 extended stay properties with approximately 18,000 rooms across 21 states. Citigroup served as the financial adviser to InTown Hospitality Investors on the sale.

Rick Kirkbride said the trend is that, during a very busy first half of the year, people are cautiously predicting a busy second half. "So much of that will depend upon the volatility in the interest rate environment as many more increases will cause buyers to have to reprice their acquisitions and sellers may or may not have adjusted their own expectations of what the market should bear," Kirkbride said. "If sellers do so, then activity should continue somewhat unabated or there may be a significant slowdown in activity."

For more news and information visit Blumberg Capital Partners.

Starwood Buys Blue Back Square in CT for $106.3M

Starwood Capital Group and affiliate Starwood Retail Partners announced this week that they had purchased a large mixed-use center from a developer joint venture for $106.3 million. Developers Ronus Properties, Street-Works and JDA Development sold the 450,000 square-foot property, dubbed Blue Black Square, after originally delivering the complex in 2008 for $158.8 million.

"Blue Back Square is a fundamentally strong, infill asset in an attractive market with limited new supply that generates strong cash-on-cash returns and presents an excellent opportunity for Starwood and its investors," said Ethan Bing, vice president at Starwood Capital Group.

According to Starwood, the property was 96% leased at the time of sale, with major tenants including REI, Crate & Barrel, The Cheesecake Factory Inc. and Barnes & Noble. The live-work-play complex also includes condos and apartment rentals, medical space that houses the Hartford Hospital, and office space that is taken up by professional services and law firms.

For more news and information visit Blumberg Capital Partners.

Starwood Cap Acquires $157M CRE Portfolio

Starwood Capital Group announced this week that it had completed the acquisition of a non-performing commercial loan portfolio from a major Midwest Regional bank. The portfolio, with an outstanding principal balance of $157 million, was purchased for 40 cents on the dollar and consists of 137 commercial loans with concentrations in Florida, Indiana, Michigan, North Carolina and Ohio.

"This acquisition is another example of Starwood Capital Group's ability to create value in today's competitive real estate market while building on the momentum we have achieved with Starwood Global Opportunity Fund VIII this year," said Chris Graham, Managing Director at Starwood Capital Group. "Our real estate expertise and experience resolving and managing underperforming loans allows us to maximize returns for Starwood investors."

For more news and information visit Blumberg Capital Partners.