Mariner Real Estate Buys Stake in $101M Loan Portfolio

Mariner Real Estate Management, a real estate investment management firm based in Kansas, announced this week that it had closed on the purchase of approximately $101 million in real estate loans in partnership with the Federal Deposit Insurance Corporation (FDIC). The portfolio is the second structured purchase of commercial real estate debt the company has executed with the FDIC. The first joint acquisition was in September 2010, when it paid $52 million for a 40% stake in an FDIC loan portfolio with an unpaid balance of $762 million. That investment, according to a Kansas City Business Journal article, had a seven-year life span, and Mariner Real Estate hopes for an overall return on the investment of 15-25%.

The acquired portfolio covers the unpaid balance of 62 performing and non-performing commercial loans located in Washington, Idaho and Utah. According to Mariner, the company paid an initial 25% stake in the limited liability company formed by the partnership with approximately $13.6 million. Since 2009, Mariner has acquired 1,000 plus loans with an aggregate unpaid principal balance of $1.1 billion.

For more news and information visit Blumberg Capital Partners.

HBO Latin America Inked Largest Lease Deal in Coral Gables in 2011

HBO Latin America Group, which owns several cable networks in the region of Latin America and itself is owned by Time Warner, has signed on as the largest tenant to date at 396 Alhambra Circle, a new 273,000-square-foot, two-tower, Class-A office and retail project in downtown Coral Gables according to a Miami Herald article. The South Florida Business Journal reported that, in leasing a quarter of the office space at the two tower property, the deal was the largest lease signed in Coral Gables in 2011. Blanca Commercial Real Estate represented the landlord in the transaction while CresaPartners represented HBO Latin America. Financial terms of the deal were not disclosed.

"The building is ideal for our continual growth and development in the Latin American market, and the location is representative of our commitment to Miami-Dade County and the city of Coral Gables," said Gaston Comas, CEO for HBO Latin America, in a statement. "We are confident that 396 Alhambra will serve us well for many years to come."

"This is our biggest announcement so far, and more news is on the way as construction nears completion," said Eddie Avila, principal of 396 Alhambra LLC. "We will soon have 50% of the office space leased, and HBO Latin America's signing establishes 396 Alhambra as a premier destination address for multinational corporations, professional service firms and entrepreneurs in Coral Gables. 396 Alhambra is the perfect business address in Miami for international corporate headquarters." Major tenants of the property include Citibank, the law offices of Richman Greer, global architecture firm RTKL, Spain-based multinational Internet company Terra Networks and integrated marketing firm kabookaboo. HBO Latin America is expected to take occupancy of the new space during the third quarter of 2012.

For more news and information visit Blumberg Capital Partners.

Parkway Announces Sale of Non-Core Assets

Parkway Properties, Inc. began the year with the announcement that it is under contract to sell a portfolio of 15 non-core assets for a gross sale price of $147.5 million, along with the completion of the sale of its interest in nine assets under Parkway Properties Office Fund, L.P. The portfolio sale is expected to close during the first quarter of 2012, subject to the buyer's successful assumption of certain existing mortgage loans and customary closing conditions. The portfolio was 75.8 percent occupied as of September 30, 2011.

"Part of Parkway's new strategy, which will be outlined in its entirety during our fourth quarter earnings conference call, is to pursue an efficient exit from certain non-core markets," Parkway President and CEO James R. Heistand said in a statement. "As a result of the thorough review of all of our markets, we determined that Jackson, Memphis and Richmond were non-core markets. A portfolio sale of these assets allows us to quickly realign our overall portfolio and focus our resources and capital on building critical mass in our remaining core markets."

Upon the completion of the sale of the non-core portfolio and other announced pending sales, Parkway would have one remaining asset located in Jackson totaling 267,000 square feet, one remaining asset located in Memphis totaling 337,000 square feet, and completed its exit from Richmond. The remaining assets in Jackson and Memphis will continue to be marketed for sale.

For more news and information visit Blumberg Capital Partners.

Merchandise Mart Sells $228M Chicago Property

Merchandise Mart Properties, Inc., a subsidiary of Vornado Realty Trust, completed the sale of the Shops at the Mart for $228 million to Shorenstein Properties on behalf of its Shorenstein Realty Investors Ten LP fund. According to a CoStar report, the building park sale equals roughly $188 per square foot; Vornado previously purchased the property in 1998 for $77.6 million.

Commenting on the purchase of 350 West Mart, Shorenstein Properties' CEO Douglas Shorenstein said: "This is a well located asset with a floorplate and infrastructure that appeals to technology, creative use and financial tenants choosing to locate in major 24-hour cities such as Chicago."

The Shops at the Mart is located on two floors of the Merchandise Mart in Chicago, Illinois with high-end boutiques and lunch spots dominate the face of the mall. The Shops originally opened in September 1991, anchored by Carson Pirie Scott & Co. and The Limited. The property covers more than 1.2 million square feet of space in two adjoining 13-story towers and a long-term lease to the 521-room Holiday Inn Mart Plaza.

For more news and information visit Blumberg Capital Partners.

Moody's Forecasts Stability for US REITs

Moody's Investor Services has been releasing industry outlooks for 2012 across the markets and said that the outlook for the ratings of US real estate investment trusts (REITs) and real estate operating companies (REOCs) is currently stable across all property types. Further, Moody's notes that not only do the sectors currently have stable operating outlooks, but the REITs continue to keep their real estate portfolios well occupied and are outperforming most of the markets in which they operate.

"The REITs continue to successfully navigate through difficult capital market conditions, and they have fewer demands on their liquidity than they did during the recent recession, given that their debt maturities are staggered, development pipelines at low levels, and their bank facilities have significant capacity," says Philip Kibel, a Moody's Senior Vice President. "Further enhancing their financial flexibility is that most investment-grade-rated REITs remain committed to maintaining low dividend payout ratios, that is low dividends relative to the funds available for distribution."

Moody's added that capital markets have stabilized to a point that capital is available to REITs with strong balance sheets, citing several investment-grade REITs in the past two months that successfully tapped the unsecured debt market and issued approximately $3.8 billion in bonds. To read the full outlook report see the Industry Outlook "US REITs and REOCs" on Moodys.com.

For more news and information visit Blumberg Capital Partners.

AEW Picks Up One Exeter Plaza for $112M

AEW Capital Management announced another acquisition this week with the purchase of One Exeter Plaza in Boston's Back Bay on behalf of AEW Core Property Trust, an open-end real estate fund, for $112 million. AEW bought the 15-story office building from Ruben Companies; Cushman & Wakefield represented the seller and procured the buyer.

"One Exeter Plaza has been a jewel in our company's portfolio since we developed the building in 1984. We are pleased that the building will continue to be owned and managed by a premier owner such as AEW," said Richard Ruben, CEO of Ruben Companies.

According to a Boston Business Journal article, the 211,351-square-foot Class A office property on Boylston Street was developed by Ruben Companies in 1984 and features 192,201 square feet of first-class office space as well as 19,150 square feet of prime retail space along one of the city’s busiest shopping districts. The property was 85% leased at the time of purchase with major tenants including Cornerstone Research, Riverside Partners, International Data Group, Wells Fargo/Wachovia, Bank of America and Morton's Restaurant.

For more news and information visit Blumberg Capital Partners.

Park Central in NYC Sold for $396.2M

LaSalle Hotel Properties started the year with the announcement of the acquisition of The Park Central Hotel in New York City for $396.2 million. LaSalle picked up the 934 room full service hotel from Highgate Holdings for a sale price of about $424,000 per room. Highgate was represented by Hodges Ward Elliott, a leading hotel brokerage and investment banking firm, according to a CoStar report.

"We are pleased to have finally closed on The Park Central Hotel," said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. "We remain excited about this well located New York City asset and our ability to acquire the hotel at an attractive purchase price."

The Park Central Hotel on Seventh Avenue, between West 55th and West 56th Streets, in midtown Manhattan, was constructed in 1928 and undergone numerous renovations over the years, with over $33 million spent on improvements since 2004. LaSalle said in a statement that they plan to implement their own renovation of the hotel, currently estimated between $33-$35 million, which is expected to begin later this year.

"We are thrilled to embark upon our LaSalle Hotel Properties relationship with such an important asset," said Mehdi Khimji, a Principal of Highgate Holdings. "The location and scale of The Park Central Hotel has historically made it an outstanding performer in our portfolio and now with the planned renovation and LaSalle's ownership, the hotel is poised to achieve its full potential."

For more news and information visit Blumberg Capital Partners.