Keystone JV Buys $233M Pennsylvania Portfolio

A joint venture led by Keystone Property Group announced this week that it had closed on the acquisition of a Philadelphia area portfolio for approximately $233 million. The JV purchased 15 office buildings and three development sites from the Mack-Cali office real estate investment trust, which is pulling back from the Philadelphia area office market, where rents have been stuck at 1990s levels, according to a Philly.com article. The acquisition adds approximately 1.7 million square feet of existing office space to Keystone's portfolio and significantly expands the company's presence in Pennsylvania, where Keystone has been headquartered and active since itsinception in 1991.

The portfolio includes:

150 Monument Road, totaling 125,783 square feet in Bala Cynwyd
Four buildings at 1000 – 1235 Westlakes Drive in Berwyn's Westlakes Office Park, totaling 444,350 square feet
Three buildings at 4 & 5 Sentry Park in Blue Bell, totaling 193,930 square feet
Three buildings at 100 – 300 Stevens Drive in Airport Business Center in Lester, totaling 371,000 square feet
1000 Madison Avenue in Lower Providence, totaling 100,700 square feet
Two buildings at Rose Tree Corporate Center I & II at 1400 N. Providence Road in Media, totaling 260,000 square feet
One Plymouth Meeting, located at 502 W. Germantown Pike in Plymouth Meeting, totaling 167,748 square feet

"This acquisition is closely aligned with our core competencies as a long-time investor in well-located office properties where significant value can be created to achieve best-in-class work environments that meet the requirements of modern companies," said Bill Glazer, President of Keystone Property Group. "Drawing on the strengths of our more than 20-year track record in the Pennsylvania market, our strategy is focused on realizing the full potential of these assets through the creation of vibrant, urban-inspired settings within the context of suburban office campuses."

For more news and information visit Blumberg Capital Partners.

Kennedy Wilson Buys 3 Properties for $37.3M

International real estate investment and services firm Kennedy Wilson announced this week that it had acquired three properties in Utah, California and Idaho with its partners, including The LeFrak Organization and Kennedy Wilson Fund IV, for $37.3 million. Kennedy Wilson contributed $9.9 million of equity in the deals, with $23.1 million of debt outstanding and the balance from partner equity, and said that it plans to reposition all of the properties to capture further income potential. According to an L.A. Biz article, the company's multifamily portfolio in the U.S., Ireland and Japan totals 14,274 units.

"These retail investments provide the company with a predictable and steady income stream through credit tenants such as Burlington Coat Factory, In-N-Out Burger, Outback Steakhouse and Staples," John Prabhu, president of KW Commercial Investment Group, said in a statement.

The properties include: a 209,329 square foot multi-tenant retail center in Orem, Utah; 15,118 square feet of retail and office space in Malibu, California; and a 114,404 square foot retail center in Boise, Idaho.

For more news and information visit Blumberg Capital Partners.

Sabal Financial Buys $96M Portfolio from The Bank of the West

Sabal Financial Group, L.P., a diversified financial services company headquartered in Newport Beach, CA, announced this week that it had acquired a $96 million loan portfolio from The Bank of the West. Sabal, specializing in the acquisition of real estate loans with a focus on commercial real estate, has been acquiring portfolios since 2009, amassing nearly $4 billion in assets under management.

"The Bank of the West portfolio was appealing to us because of its land holdings. There are barriers to entry and a general lack of development space, resulting in a constrained land supply, which will have higher values as the real estate market continues to recover," said Pat Jackson, CEO of Sabal Financial Group. "We have the luxury of being patient in working out these assets."

Terms of the deal were not disclosed, but Sabal said that the portfolio is a combination of non-performing and performing loans and is secured by commercial real estate and land in California, Colorado, Arizona, Oklahoma, and Iowa.

For more news and information visit Blumberg Capital Partners.