Parkway Buying Thomas Properties for $1.2B

Orlando-based real estate investment trust Parkway Properties Inc. announced this week that they had agreed to acquire Los Angeles-based Thomas Properties Group Inc. in a stock-for-stock transaction valued at $1.2 billion. Under the terms of the merger agreement, Thomas Properties' shareholders will receive 0.3822 shares of newly issued Parkway common stock in exchange for each share of Thomas Properties common stock, for an implied price per share of $6.26 based on Parkway's closing stock price of $16.37 on September 4, 2013. Parkway will assume roughly $752 million of Thomas Properties' pro rata share of in-place secured debt, and provide Thomas Properties with a bridge loan totaling up to $80 million.

James A. Thomas, President and Chief Executive Officer of Thomas Properties, commented, "Our board believes that the combination with Parkway, based upon our relative net asset values, will maximize value for our shareholders, both in the near and long term. We are big believers in Parkway's long-term growth strategy of gaining critical mass with high-quality assets in targeted submarkets throughout the Sunbelt. This combination of Thomas Properties and Parkway delivers to our stockholders increased scale, improved liquidity, a strengthened balance sheet and the tax advantages of a REIT structure."

According to a CoStar report, the merger, which is expected to close in the fourth quarter, includes 14 Thomas Properties office assets totaling 9.8 million square feet, including eight in the fast-growing Austin and Houston markets. The portfolio was 89% occupied as of June 30.

For more news and information visit Blumberg Capital Partners.

Brookfield Closes $886M Verde Realty Acquisition

Brookfield Asset Management Inc. announced that it had closed the acquisition of a majority ownership position in Verde Realty, a Maryland real estate investment trust, for $886 million. This means that an investment vehicle controlled by the asset manager will be responsible for approximately 81% of the common equity in Verde, with the remainder controlled by present Verde shareholders, according to a GlobeSt.com article.

"We look forward to building on our reputation for delivering well located, high quality distribution facilities for our clients and executing our growth strategy that includes acquisitions and property development," commented Ronald Blankenship, Chief Executive Officer of Verde Realty.

"Verde is a scalable, cornerstone investment in the industrial property sector that positions Brookfield to expand its real estate platform into the logistics arena to capitalize on the evolving global supply chain," said David Arthur, Managing Partner at Brookfield Asset Management. Verde owns 111 industrial distribution facilities comprised of 18 million square feet of space in major U.S. distribution markets and gateway trade markets along the U.S. and Mexican border, as well as over 20,000 acres of land intended for future sale and development. Under new ownership, the company plans to expand its holdings and seek consolidation opportunities in the fragmented industrial real estate sector.

For more news and information visit Blumberg Capital Partners.

Ernest Health Sold for $400M

Medical Properties Trust (MPT) announced this week that it had acquired Ernest Health and its portfolio of 16 properties for $400 million according to a Health Investor article. MPT will assume the real estate assets of 12 Ernest facilities and lease the properties back to Ernest under an initial term of 20 years with three five-year extension options. A venture between an MPT affiliate and existing management of Ernest will acquire Ernest Health, Inc. RBC Capital Markets, LLC acted as MPT's exclusive financial advisor for this transaction. According to the article, MPT intends to fund the acquisition with a combination of borrowings under its revolving credit facility, borrowings under a new $80 million term loan facility from JP Morgan Chase Bank, NA and RBC Capital Markets, as well as net proceeds from other debt or equity capital market issuances.

"With transformative, highly accretive transactions like these, we continue to demonstrate our unique ability to create high quality long term sources of cash flow from hospital real estate," said Edward K Aldag, chief executive of MPT. "Completing these transactions will give MPT upside potential to the long term growth of Ernest, and adds another premiere post acute hospital operator to our relationships with others such as Vibra, Kindred, Healthsouth, LifeCare, Cornerstone and Post Acute."

For more news and information visit Blumberg Capital Partners.

NAI Global Acquired by C-III Capital Partners

C-III Capital Partners Inc. formally completed the acquisition of NAI Global, a network of independent commercial real estate firms worldwide, comprised of over 5,000 professionals in 55 countries in more than 350 offices. The terms of the deal were not disclosed, but the companies did say that NAI Global would continue to operate as a separate company under its current management.

"The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company," said C-III Capital Partners CEO Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. "With the NAI Global acquisition, we are gaining the world's leading commercial real estate network and a tremendous foundation for future growth. As we begin a new year, we look forward to partnering with the NAI team to provide enhanced services to the commercial and institutional real estate markets they serve as well as continuing to take advantage of other opportunities to grow and expand our platform."

"This group that acquired NAI Global is a major company that really has a lot of connections and resources worldwide, so this relationship is going to expand our ability through that purchasing group," said Edward Saig, President of NAI Global, in a Memphis Daily News article. "They've been in the business a long time in the real estate industry, and we're very pleased with this acquisition."

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99 Cents Only Stores Reach Agreement to Sell for $1.6B

A new article from CoStar reports that 99 Cents Only Stores agreed to be acquired by affiliates of Ares Management LLC and Canada Pension Plan Investment Board for $20/share of common stock for a total value of $1.6 billion. The chain, founded in 1982, has 289 stores in the United States, most of which are located in California where 99 Cents Only is headquartered. As part of the deal, CEO Eric Schiffer, Chief Operating Officer Jeff Gold and Executive Vice President Howard Gold would stay in their current leadership roles and will serve as directors while founder David Gold would be chairman emeritus.

"We expect this transition to be a win-win for everyone as it delivers significant value to our shareholders," Schiffer told employees when announcing the deal. "It provides access to expertise to help us accelerate our growth, and helps ensure that we can continue to deliver extreme value to our customers and provide a great place to work for our 99ers. The news of this agreement should not be a distraction to any of us, as we do not contemplate any material change in the way the business is managed. It is business as usual."

99 Cents Only Stores is required to pay a termination fee of $47.25 million if it terminates the merger agreement under certain circumstances. Ares and the Canada Pension Plan would have to pay a $94.5 million termination fee. Since the announcement of the agreement, Weiss & Lurie, a national class action and shareholder rights law firm, has filed a class action on behalf of the shareholders of 99 Cents Only Stores in connection with the proposed acquisition alleging that it provides unfair and inadequate consideration to public NDN shareholders.

For more news and information visit Blumberg Capital Partners.

Jones Lang LaSalle Merges With Pacific Real Estate Partners

Jones Lang LaSalle Inc. announced this month that it has merged operations with real estate services firm Pacific Real Estate Partners Inc. Pacific was founded in 1992, and has offices in Seattle, Bellevue and Portland. Chicago-based Jones Lang LaSalle, which has more than 200 offices around the world, entered the Northwest market in 1995 according to the Seattle Times. Financial terms of the acquisition were not disclosed.

"The merger of Jones Lang LaSalle and Pacific Real Estate Partners was driven by client demand for broader and deeper services, as well as the anticipated growth of the Pacific Northwest," said Elizabeth Hearle, Northwest Market Director, Jones Lang LaSalle. "While this is a mutually beneficial merger for Pacific Real Estate Partners and Jones Lang LaSalle, the real beneficiaries are our clients who will now have access to a broader platform and local market expertise from a firm that is the clear leader in the market."

"By leveraging our strong combined capital markets and leasing capabilities, we will have the opportunity to expand our services, with a focus on property management. This will create a powerful and differentiated firm with growth potential that benefits Jones Lang LaSalle, Pacific Real Estate Partners and both firms' clients," said Hearle, who will continue to serve as the Market Director for the Pacific Northwest Region.

For more news and information visit Blumberg Capital Partners.

Cassidy Turley Closes Carter Acquisition

Cassidy Turley announced this week that it had finalized the acquition of the brokerage and property management businesses of Carter. While fincials of the deal were not disclosed, the St. Louis Business Journal notes that Carter has completed transactions valued at $4.6 billion in the past five years and manages 25 million square feet in 11 states on behalf of private, institutional and corporate clients and for its real estate funds.

"Our acquisition of Carter allows us to expand Cassidy Turley's service offerings, including investment sales, finance, tenant representation, project leasing and corporate services, and gives us a significant presence in two major markets, Atlanta and Florida, strengthening our geographic footprint in the Southeast," said Mark Burkhart, CEO, Cassidy Turley. "Our expansion is important, particularly in today's economy, as our clients are rethinking their financial, operational and growth strategies to improve their return on investment and are looking to firms like Cassidy Turley to deliver integrated services, economies of scale and geographic reach."

"This transaction with Cassidy Turley enables us to leverage our property leasing and management services for Class A product across the nation to better serve our clients," said Bob Peterson, Chairman and CEO of Carter. "Cassidy Turley's growth strategy is smart, selective, thoughtful and client-focused – they are one of the few firms today to recognize the level of service quality and sophistication that clients demand."

Peterson and Carter's President, Scott Taylor, will have dual roles providing leadership for both Carter and Cassidy Turley. The transaction adds about 270 new employees and 25 million managed square feet in 11 states to Cassidy's roster.

For more news and information visit Blumberg Capital Partners.

Cassidy Turley to Acquire Carter Property Management Business

Cassidy Turley, the commercial real estate services provider, has entered into an agreement to buy the brokerage and property management business of Carter for an undisclosed amount according to a St. Louis Business Journal article. Carter, founded in 1958 in Atlanta, is a national leader in project development, commercial real estate services and investments with full-service offices in Atlanta and Tampa. Once the acquisition is completed, Carter's Brokerage Services and Property and Facility Management groups will operate as Cassidy Turley.

"Cassidy Turley is delighted to announce our commitment to acquire the brokerage and property management businesses from Carter," said Mark Burkhart, Cassidy Turley CEO. "Carter's thoughtful and client-driven approach is consistent with ours and will provide our clients across the country access to the best advice from an industry leading team in this region. The addition of Carter will allow us to offer our full spectrum of services in two significant markets—Atlanta and Central Florida."

"We are excited about moving forward in the process to join Cassidy Turley. This move will allow us to grow and strengthen our service business by leveraging Cassidy Turley's leading capital markets, leasing, property management and corporate services platforms" said Bob Peterson, Chairman and CEO of Carter. "With Cassidy Turley's national platform and service approach, we can better serve our clients with multi-market needs. In addition, Cassidy Turley's scale and reputation for workplace satisfaction will enable us to offer our professionals additional growth opportunities and a culture that complements Carter's."

For more news and information visit Blumberg Capital Partners.

Genesis HealthCare Sells Portfolio for $2.4B

Health Care REIT announced this week that it had signed a definitive agreement to acquire substantially all of Genesis HealthCare's real estate assets for $2.4 billion according to a New York Times article. Health Care REIT will acquire 147 facilities located in 11 states in the Northeast and Mid-Atlantic; under the terms of the deal, Genesis will lease the properties from Health Care REIT and continue to operate all facilities under a 15-year initial term. The acquisition is expected to close during the 2nd quarter of 2011. The long-term triple-net lease with Genesis will provide for rent in the first year of $198 million with an initial cash yield of 8.25%. Additionally, Health Care REIT will have an option to buy a 9.9% stake in Genesis for $47 million.

"We believe this transaction allows for Genesis HealthCare to significantly expand its premiere post-acute healthcare delivery system and infrastructure," said Arnold M. Whitman, Co-Chairman of Genesis. "We look forward to this next phase in Genesis' future as we work together with Health Care REIT to build a truly exceptional company in this changing health care environment," added Steven E. Fishman, Co-Chairman of Genesis.

For more news and information visit Blumberg Capital Partners.

Ventas Acquiring NHP for $7.4B

Ventas, Inc. and Nationwide Health Properties, Inc. (NHP) announced that both companies have unanimously approved a definitive agreement under which Ventas will acquire all of the outstanding shares of NHP in a stock-for-stock transaction valued at $7.4 billion according to a Forbes article. The new company will be the largest health care REIT, operating 1,300 assets in 47 states, the District of Columbia and two Canadian provinces. The new company is expected to have pro forma equity value of roughly $17 billion and pro forma enterprise value of $23 billion. The deal is expected to close in the third quarter of 2011, pending regulatory and shareholder approvals.

"The combination of Ventas and [Nationwide] increases the scale and diversification of the combined company, the strength and flexibility of the company's balance sheet and the quality and geography of the assets," said Ventas Chairman and Chief Executive Debra Cafaro in a statement.

"For [Nationwide] shareholders, Ventas is the right partner, bringing the right value at the right time," said Douglas Pasquale, Newport Beach, Calif.-based Nationwide's chairman and CEO, in a statement. "Our shareholders, property operators and tenants will all benefit from our expanded strength, diversification and capabilities."

For more news and information visit Blumberg Capital Partners.

Colliers Acquires Winbury Group

A controlling interest of commercial real estate agents with Grubb & Ellis/The Winbury Group has been acquired by Colliers International according to a Lawrence Journal-World article. The Winbury Group, a full-service commercial real estate firm founded in 1989, will immediately assume identity under the new Colliers umbrella and signage is expected to change within 30 days. The terms and price of the deal were not disclosed.

"With today's news, we are continuing our systematic strategy to seize additional market share in the U.S.," said Dylan Taylor, chief executive officer of Colliers International in the U.S. "Our U.S. continued expansion further solidifies our ability to provide the best service to our clients and the best career opportunities for our professionals. The Winbury Group is the clear market leader in greater Kansas City and we see very high alignment between the two firm's cultures."

Ted Murray, who serves as the CEO of The Winbury Group, adds: "After serving our clients for more than two decades throughout the Kansas City region and the country, we are thrilled to join Colliers International, a global industry leader. Our ongoing commitment to deliver the highest-quality commercial real estate services in the region will be significantly enhanced by this merger. Our clients will continue to rely on our local market knowledge and connections, but going forward they also will benefit from the national and international growth opportunities and resources of Colliers."

For more news and information visit Blumberg Capital Partners.

Citi Property Investors Sold to Apollo

Apollo Global Real Estate Management, an affiliate of Apollo Global Management LLC, has finalized a deal to purchase Citi Property Investors (CPI), the real estate investment management group of Citigroup Inc. While the terms of the deal were not disclosed, CPI had assets under management of over $3 billion as of June 30 of this year according to a BusinessWeek article. As part of the transaction, a majority of CPI's employees will join Apollo Global Real Estate Management, which will take over the management of a number of CPI's funds, including its flagship funds, CPI Capital Partners Asia Pacific, L.P., CPI Capital Partners Europe, L.P., and CPI Capital Partners North America LP.

The Citigroup bank is on track to have less than $400 billion of unwanted assets, or 20 percent of total assets, by the end of 2010 as reported by Reuters, and is still 12% owned by the U.S. government, which originally planned to finish selling off the stake by mid-December.

For more news and information visit Blumberg Capital Partners.