Ameron Center Sold for $41M

Beverly Hills, CA-based Kennedy Wilson, a global real estate investment company, has sold the Ameron Center in Pasadena for $40.5 million, or $230 per square foot. The eight story office building was purchased by an entity connected to developer Patrick Chraghchian, president of American General Contractors (AGC), according to a report from The Real Deal. The sale marks a narrow profit for Kennedy Wilson, which originally acquired the building from Wells Fargo Bank in 2014 for $39 million. New York-based Berkadia represented both sides of the transaction, the terms of which were not disclosed.

Built in 1971, the 60,880 square foot office building at 245 South Los Robles was 25% leased at the time of sale, which has led to some speculation that the site could be used for development. The building was renovated in 1994 and subsequently won BOMA's Building of the Year Award. Located at the southwest corner of South Los Robles and Cordova, the property is adjacent to the full-service Sheraton and Hilton Hotels and near Old Town Pasadena and the Lake Avenue Business and Shopping District.

For more news and information visit Blumberg Partners.

New $250M Telemundo Global HQ in Miami

NBCUniversal Telemundo Enterprises, which encompasses NBCUniversal's Hispanic franchises and all of its Hispanic content efforts, broke ground this month on a new 450,000 square foot global headquarters in Miami. Telemundo obtained a $185 million mortgage from Wells Fargo Bank in a deal brokered by Cushman & Wakefield to begin construction of the Telemundo building, which NBCUniversal and parent company Comcast indicated would involve more than $250 million to construct.

"This is a very important step in the evolution of our company at a time when we're enjoying tremendous momentum and have just wrapped a record-breaking year," said Cesar Conde, Chairman of NBCUniversal Telemundo Enterprises and NBCUniversal International Group, in a press release. "Our new global headquarters will fold all of our division's offices and production studio spaces into one state-of-the-art facility that will help us do business in a more collaborative way. This significant investment clearly underscores once again NBCUniversal's and Comcast's long term commitment to our business and the U.S. Hispanic market."

Governor Rick Scott added, "I am excited to announce that NBCUniversal Telemundo Enterprises has chosen Miami as the best location to build their new global headquarters and create 150 new Florida jobs. By cutting $1 billion in taxes and creating the new $250 million Florida Enterprise Fund this year, we will make Florida more competitive so companies like Telemundo will continue to grow and create jobs for our families."

The build to suit facility sits on approximately 21 acres at NW 25th Street and the Florida Turnpike, and will initially house 1,100 employees, with the capacity to expand to approximately 1,300. When construction is finished in early 2018, the new global headquarters facility will house the Telemundo Network, Telemundo Studios, Telemundo International, the NBC Universo network, and all of Telemundo's digital media operations. Telemundo's sales offices will continue to operate from New York City. The building of the new headquarters is expected to create approximately 3,000 construction-related jobs and generate an estimated $400 million in sales for Florida businesses. Telemundo pledged to retain 800 jobs and create 150 jobs with average salaries of $89,000, said Larry Williams, president and CEO of the Beacon Council, which worked with the company on incentives and permitting.

For more news and information visit Blumberg Partners.

Jebbia Family Selling The Rialto

Rialto Theatre landowner, The Jebbia Family Trust, and its trustee, Wells Fargo Bank, are actively seeking new ownership for the historic property in South Pasadena, California. The owners are working with NGKF Capital Markets to market the property in partnership with the city to find a buyer with the capital to revitalize the building, which is a registered national landmark. While an asking price for the property was not disclosed, The Pasadena Star-News noted that according to a South Pasadena Chamber of Commerce report, repairs on the neglected property could cost from $4 million to $18 million.

"We obviously are excited about the potential of the building changing ownership with the possibility of reopening the doors again as a theater in some form," said South Pasadena City Manager Sergio Gonzalez. "The city has been working collaboratively to get it reopened again."

"The site, with its iconic architecture, could become the centerpiece of South Pasadena's downtown renaissance," said Matthew Dobson, managing director with NGKF Capital Markets.

"The area's residents are great backers of the arts and the city remains supportive of redevelopment plans that are not only thoughtful of the theater's rich history but also create viable and sustainable uses onsite," added Josh Levy, senior managing director, NGKF Capital Markets.

Located five blocks south of the 110 freeway, The Rialto Theatre opened for vaudeville and movies on October 17, 1925, with Ray Metcalfe playing the 2 manual, 10 rank Wurlitzer pipe organ and with the Rialto Orchestra accompanying the world premiere of Universal's "What Happened to Jones" starring Reginald Denny. The Rialto Theatre was one of the last theatres to be designed by noted theatre architect Lewis Arthur Smith, who died the following year. The Jebbia family has owned the theatre since the 1930s; in the 1960s it was leased to Mann Theatres, then Landmark Theatres took over in 1976 and showed arthouse and classic movies. Landmark closed the Rialto Theatre with "The Simpson Movie" on August 19, 2007.

For more news and information visit Blumberg Capital Partners.

1290 Avenue of the Americas Gets $950M Loan

Vornado Realty Trust, a fully integrated equity real estate investment trust, announced this week that the partnership that owns 1290 Avenue of the Americas in Manhattan has completed a $950 million refinancing of the property. Reportedly Deutsche Bank, Goldman Sachs, UBS Securities and the Bank of China financed the loan with commercial mortgage-backed securities.
Vornado owns 70% of the property, while Donald Trump's organization owns the remaining 30%.

The Master Servicer and Special Servicer will be Wells Fargo Bank, National Association rated 'CMS2' and 'CSS2-', respectively, by Fitch. The net proceeds from the refinancing were approximately $522 million after repaying the existing loan and closing costs.

The 43-story, 2.1 million square foot office building is approximately 95% leased by 27 tenants as of September 2012, and owned and managed by affiliates of Vornado Realty Trust. 1290 Avenue of the Americas is currently undergoing major renovations, to include new turnstile access systems, and upgrades to the cooling tower, chillers, restrooms and telecommunications spine, and new tenant-proprietary back up generators.

For more news and information visit Blumberg Capital Partners.

Eurohypo Closes Sale of $760M Loan Portfolio

In a deal brokered by Jones Lang LaSalle's Capital Markets, Germany's Eurohypo AG, a subsidiary of Commerzbank AG, closed the sale of $760 million in loans to Wells Fargo Bank and Blackstone Group. According to a NASDAQ report, the 13 floating-rate, performing loans with a collective price in the mid-90's for properties located in top-tier U.S. markets, including San Francisco, Boston, Miami, Houston and Chicago.

"The U.S. market for loan sales has matured significantly over the past several years; the low discount to par we were able to achieve on this sale is proof of that," said Jones Lang LaSalle Managing Director and Global Loan Sales Leader Peter S. Nicoletti. "This portfolio was high-quality, seasoned paper that offered these investors an opportunity to acquire a significant performing loan portfolio."

For more news and information visit Blumberg Capital Partners.

RREEF America Sells Bay Area Industrial Assets for $520M

RREEF America REIT II Corp. and its affiliate, Northern California Industrial Portfolio, Inc., completed the sale of a 5.3 million square foot industrial and flex portfolio for $520 million this month according to a San Jose Mercury News article. PS Business Parks (PSBP) acquired the portfolio and, in connection with the transaction, assumed a $250 million secured loan that matures in December 2016. In addition to the secured loan, PSBP also entered into a three-year unsecured term loan for $250 million with Wells Fargo Bank.

"This is the largest transaction we're aware of in the Bay Area this year," said John Yandle, a senior vice president in the Santa Clara office of Cornish & Carey Commercial Newmark Knight Frank, a commercial realty firm. "There is nothing that would beat a half a billion dollars."

The portfolio consists of 18 multi-tenant business parks comprised of 2.9 million square feet of light industrial space and 2.4 million square feet of flex space in nine Bay Area cities and is currently 82.2% leased to 216 tenants.

For more news and information visit Blumberg Capital Partners.

Crystal City Buildings Get $118M Loan

Lowe Enterprises, owner of Century Center I and II in Crystal City, VA just minutes over the bridge from Washington, DC, received a $118 million refinance loan on the properties arranged by Holliday Fenoglio Fowler (HFF) according to a Washington Business Journal article. HFF secured the five-year, adjustable-rate loan through Wells Fargo Bank, the proceeds of which were used to refinance an existing loan and fund future leasing and capital expenditures.

"Century Center's renovation and repositioning, which included creating a retail promenade extending down Crystal Drive, demonstrates Lowe's commitment to the property and the Crystal City submarket," said Cary Abod, managing director with HFF.

Century Center I and II covers 560,207 square feet of office space, 65,797 square feet of retail space and a three-level, 1,494-space underground parking garage. Lowe originally acquired the property on behalf of a pension fund client in 2004 and recently completed a $30 million renovation to improve building systems and curb appeal. Major tenants include Raytheon, GSA, and Northrop Grumman.

For more news and information visit Blumberg Capital Partners.