Kingdom Holding Moves Forward with World's Tallest Building, Kingdom Tower

Kingdom Holding Company, the investment firm led by billionaire Prince Alwaleed bin Talal, announced this week that it has signed a 4.2 billion riyal ($1.23 billion) deal a deal to build the Kingdom Tower in Jeddah, selecting Saudi Binladen Group to build the structure according to a Daily Mail article. Kingdom Tower, expected to stand at least 3,280 feet tall (the exact final height is still a closely guarded secret), will loom larger than Dubai's Burj Khalifa making it the world's tallest building upon completion. Adrian Smith + Gordon Gill Architecture, designed the 5.7 million square foot building; Adrian Smith, previously of Skidmore, Owings & Merrill, also designed the Burj Khalifa.

Smith told the Huffington Post of the project that "there's something very special about being the world's tallest building. Everyone wants to be able to do one. I think in this situation there is a development going around the tower -- a $29 billion development -- and this tower acts as a catalyst for that development. Putting such a tall tower in first actually increases the land value around the tower, so even if you don't make a lot of money on the tower itself you'll make money on the land."

"Building this tower in Jeddah sends a financial and economic message that should not be ignored," Prince Alwaleed told reporters. "It has a political depth to it to tell the world that we Saudis invest in our country despite what is happening around us from events, turmoil and revolutions even."

For more news and information visit Blumberg Capital Partners.

Ashburn Technology Park Lot Sold for $17M

St. John Properties sold a 38-acre land parcel in the Ashburn Technology Park in Ashburn, VA for $17 million according to a Washington Business Journal article. The Baltimore-based developer sold the land to Sabey Data Center Properties, privately owned data center developers and operators based in Seattle, WA.

Ashburn Technology Park currently consists of six research and development /office buildings comprising more than 320,000 square feet of space. Sabey announced in June that it has plans to build a 490,000 square foot data center campus within the complex with construction to begin late this summer. The campus will feature three buildings and will be served with over 70 megawatts of power, accommodating tenants with varying design challenges and power requirements.

"Ashburn Technology Park offers the perfect confluence of electric power, Internet network fiber, water and by-right use for this customized operation, and the business community is positioned in the middle of the Northern Virginia hi-tech employment base with close proximity to Dulles Airport and Washington, D.C.," said Larry Maykrantz, President of St. John Properties. "Sabey Data Center Properties is a well recognized and highly regarded company, and their significant investment of resources will stimulate tremendous growth opportunities for our existing tenants, as well as the Northern Virginia business marketplace."

For more news and information visit Blumberg Capital Partners.

San Francisco's Hawthorne Plaza Sold to Manulife Real Estate

A joint venture of Hines and RREEF sold Hawthorne Plaza in downtown San Francisco to Manulife Real Estate, the real estate arm of Manulife Financial Corporation, at the close of last month according to a CoStar report. While the price of the sale was not disclosed, CoStar did reveal that the JV originally acquired the property in December 2007 for $186 million, or approximately $416 per square foot.

"We are truly delighted to add a property as significant as Hawthorne Plaza to Manulife's global real estate investment portfolio," said Kevin Adolphe, Chief Operating Officer of Manulife Financial's Investment Division and President and CEO of Manulife Real Estate. "San Francisco is one of the target growth areas for our Company's real estate business. The acquisition of Hawthorne Plaza is the latest step in our ongoing strategy to invest in core office properties to complement our growing portfolio across the United States, Canada and Asia."

The 441,000-square-foot office complex at 75 Hawthorne St. achieved LEED-EB Gold Certification in May of 2009 and is targeted to undergo significant renovations with an aim to pursue LEED-EB Platinum status. The Environmental Protection Agency (EPA) is the property's anchor tenant occupying approximately 285,000 square feet for the agency's Southwest Regional Headquarters.

For more news and information visit Blumberg Capital Partners.

JV Investing up to £200M in London's West End

A joint venture between Grosvenor Fund Management and the Canada Pension Plan Investment Board (CPPIB) has formed this summer to invest up to £200 million in London's West End office market over the next two years according to a Benefits Canada article. Grosvenor will invest £10 million and lead asset sourcing and management activities while CPPIB will invest the remaining £190 million.

Wenzel Hoberg, Canada Pension Plan Investment Board's managing director and head of European real estate investments, said, "This venture with Grosvenor Fund Management provides us with an entry into an attractive, niche commercial real estate market in West End London. This investment aligns with our existing European real estate investment strategy and introduces us to a well-respected partner in Grosvenor Fund Management, which has a unique knowledge of the West End office market and strong active management and refurbishment expertise."

Mervyn Howard, Director Grosvenor Fund Management, said: "We are delighted to have formed this venture with CPPIB who share our belief in the future strength of the central London office market. Grosvenor and Grosvenor Fund Management have been active in the London office market through many cycles. We have the in-house skills to execute the strategy of the Partnership and believe the timing is right."

For more news and information visit Blumberg Capital Partners.

Wal-Mart Buys Leased Property for $104.5M

Wal-Mart Corp. has acquired the 4 million square foot distribution center it's been leasing since 2005 from the Texas Permanent School Fund for $104.5 million according to a CoStar report. The Baytown property was built in 2004 and originally sold shortly after completion by Wal-Mart to the state's General Land Office, which invests in real estate property for the Permanent School Fund. The state reportedly has made more than $40 million on the deal in rent and proceeds.

According to CoStar the deal totals 4 million square feet and includes two industrial buildings at 4554 E. Greenwood Road in Baytown. The property is on a 473-acre tract in Chambers County, about 14 miles from the Houston Ship Channel.

For more news and information visit Blumberg Capital Partners.

New Development Planned at Bosch-Hogg Building Site in Austin

Developers in Austin have applied for a zoning change at the 800 block of Congress Avenue in Austin to pursue a boutique hotel with 120,000 square feet of office space according to an article from The Statesmen. The project would occupy the land currently taken by the Bosch-Hogg Building which was originally built in 1897 as a three story building with three additional floors added to the structure in 1984. Austin developer David Kahn, managing partner of Colina West Limited, plans to build a 28 story mixed use property in its place but will need the zoning change to allow for a larger building than is currently permitted for that site.

"I saw an opportunity to bring some excitement and energy to that part of downtown," said Kahn. He also explained that while financing for his project is not in place, he expects to fund it with local investors and bank financing.

"The downtown Austin hotel market is one of the strongest in the state, which should be able to support more hotel rooms," said Randy McCaslin, vice president in the Houston office of PKF, a hotel industry research and consulting firm. "However, there are a lot of hotel projects in various stages of planning, so a lot will depend on who gets financing first."

For more news and information visit Blumberg Capital Partners.

Fort Lauderdale's One Financial Plaza Sold for $44M

One Financial Plaza in Fort Lauderdale was sold to a joint venture between Crocker Partners and Westcity Realty for $44 million according to a Sun Sentinel article. The price is a 25% discount on the $58.7 million mortgage; in June 2009 the previous owner, One Financial Center LLC, agreed to a $64.2 million foreclosure judgement on the property. The developer had originally purchased the property for $65 million in 2007.

The 28 story property at 100 SE Third Ave. is home to the Tower Club and Regions Bank. At the time of sale the 236,000 square foot building was roughly 80% leased. One Financial Plaza was initially opened in 1972 and in 2009 construction was completed to rebuild a storm-grade curtain wall and modernize the facade in accordance with post-Hurricane Andrew building codes.

For more news and information visit Blumberg Capital Partners.