100 Montgomery Sold for $285M

Blackstone Group’s wholly owned subsidiary Equity Office has sold 100 Montgomery Street, a 429,000-square-foot office tower in San Francisco's Financial District, for $285 million. The property was acquired by Vanbarton Group LLC and a U. S. pension fund partner, according to a San Francisco Business Times article. Terms of the deal were not disclosed, though Vanbarton did announce that Cushman & Wakefield will handle exclusive leasing for the property. Equity acquired the property four years ago for $165 million, a deal that more than doubled the $67.5 million Hines and Sterling American Properties paid for the office tower in 2006.

"Situated in an unparalleled location with immediate access to public transportation and premier amenities, the building provides the features that tenants are seeking today," said William Bond, a managing director with Vanbarton Group, in a press release.

100 Montgomery was originally designed by Wilbur D. Peugh and developed by Equitable Life Insurance as their headquarters in 1955, and is considered a historically significant structure in downtown San Francisco. In 2006, Hines and Sterling began a 36-month, $30 million redevelopment plan for the building, with redesign services by Robert A.M. Stern Architects. The 25 story office building with ground floor retail appeals to both traditional office users as well as technology and media companies, with major tenants including City National Bank, the U.S. General Services Administration, Segal Co., Enovity, Trucker Huss and Wells Fargo Bank.

For more news and information visit Blumberg Partners.

KBS Pays $170M for SF Office Tower

KBS Strategic Opportunity REIT, an affiliate of KBS Realty Advisors, announced the purchase of a 23-story Class A office tower in San Francisco for $169.5 million. The property was sold by Pacific EIH Sacramento, LLC, an affiliate of investment manager Pacific Eagle, which first announced the agreement to sell in May when KBS deposited $1 million for the acquisition. Terms of the deal and representation were not disclosed, but CBRE is the listed broker for the property that sits adjacent to Embarcadero Center.

"We believe that 353 Sacramento's location in San Francisco's vibrant Financial District will appeal to both traditional and creative tenants," said Michael Potter, vice president at KBS and asset manager for the property. "We are pleased to acquire this property in a highly desirable business location and a center of global technology innovation."

Built in 1982, 353 Sacramento Street offers 307,000 square feet in a 23-story building in San Francisco's thriving Financial District, with onsite amenities including a conference center, a full-service banking branch, a deli and views of the bay and city. MegaPath Corporation, Pacific Bell Telephone Company, and TW Telecom are a few of the Internet providers that service this property. At the time of sale, the tower was 85% leased with major tenants including Berry, Appleman & Leiden, a corporate law firm, Landmark Worldwide, a company offering personal development and training programs, and law firm Carlson, Calladine & Peterson LLP.

For more news and information visit Blumberg Partners.

American Realty Buys Jersey City Office Building for $101M

Glendale, California-based American Realty Advisors has purchased the 15-story office tower at 30 Montgomery Street in Jersey City, New Jersey for $101 million. The sale price is a marked gain for the sellers, a joint venture between Rubenstein Partners and Onyx Equities, which purchased the 315,385 square-foot building for $57 million in 2013. Rubenstein and Onyx completed a $20 million renovation project last year that includes a new lobby and replacing every window with architectural services from Spector Group. Terms of the deal were not disclosed; Cushman & Wakefield represented the sellers in the transaction.

"When we invested in 30 Montgomery three years ago, we could see the momentum building in the commercial and residential real estate market in Jersey City, and we believed that increased demand for quality office product would continue," said Stephen Card, regional director of Mid-Atlantic for Rubenstein Partners. "Together with Onyx, we developed a capital improvement plan to remake this as a trophy boutique office building to match its trophy location."

"30 Montgomery's location is particularly attractive based on the rapidly transforming Hudson Waterfront submarket, which is benefiting from strong population growth, sustained residential development, expanding cultural/entertainment/retail amenities and a diversification of the local employment base," Kirk Helgeson, American Realty Advisor's chief investment officer, said in a prepared statement.

The 16-story boutique office tower located in the Hudson Waterfront submarket of Jersey City was originally constructed in 1973, and was among the first office towers ever to be built along the waterfront. 30 Montgomery is convenient to the Exchange Place PATH Station and overlooking Manhattan, was 72% leased to 46 tenants at the time of sale, including the Jersey City Department of Housing, Economic Development & Commerce (HEDC).

For more news and information visit Blumberg Partners.

City Office Buys $79M Florida Office Properties

City Office REIT, a Vancouver, Canada-based real estate investment trust, announced that it has purchased two properties in central Florida, which they expect to generate an initial full-year cash net operating income yield of approximately 8.3%. Terms of the deals and representation were not disclosed by City Office REIT. The first property, Carillon Point in Tampa, was purchased for $26.3 million; the Research Park Collection in Orlando was acquired for $49.8 million.

"These acquisitions are well positioned in quality locations within our target markets, have strong in-place tenancy and favorable acquisition metrics," said James Farrar, Chief Executive Officer of City Office REIT, in a press release. "We believe that our disciplined strategy of expanding our footprint in leading submarkets positions City Office to deliver long-term cash flow growth."

Built in 2007, Carillon Point at 970 Lake Carillon Drive is a five-story building complex with 124,187 rentable square feet and a lakefront location within the prestigious Carillon Office Park. Carillon was 100% leased at the time of sale. The second acquisition, The Research Park Collection, was built in 1989 and includes five Class A office buildings on a 10 acre land parcel within the Central Florida Research Park, the fourth largest research park in America. The Research Park Collection's five buildings total 272,192 square feet of net rentable space, and was 93% leased at the time of sale.

For more news and information visit Blumberg Partners.

$87M Sale of SunTrust Center in Ft. Lauderdale

Miami-based investment company Steelbridge Capital has purchased the SunTrust Center, a 270,000 square foot office complex in downtown Fort Lauderdale, for $86.5 million. SunTrust Banks Inc. sold the Class A property, arranging to remain in the block-sized complex as long-term retail and office tenants. According to a report from The Real Deal, Steelbridge financed the deal with a $75.4 million loan from the Blackstone Group. Terms of the sale were not disclosed, with Lincoln Harris representing the seller and CBRE representing Steelbridge, in addition to sourcing the financing.

"Iconic is a term that is often thrown around, however, in this case, we could not be more pleased to have this truly iconic asset under our ownership," said Mike Manno, managing principal at Steelbridge Capital. "We are pleased to partner with SunTrust Bank, our lead tenant and an established financial brand within the Southeast, to elevate this asset to compete at the highest level within the downtown submarket."

501 and 515 E. Las Olas Blvd. includes a 17-story office tower and three-story annex, and is the largest office building to trade in Broward County's downtown submarket so far this year. The complex, which covers a full city block in the CBD, will undergo improvements under new ownership, with Steelbridge announcing that it intends to spend millions to renovate the complex to give it a new façade, first-floor retail space and a remodeled interior. The property, which SunTrust had owned since 1999, was 77% leased at the time of sale.

For more news and information visit Blumberg Partners.

Lincoln Picks Up LA Office Complex for $135M

LPC Realty Advisors I, LP, and affiliate of Dallas-based Lincoln Property Company, has purchased an office campus in West Los Angeles on behalf of a public pension fund client for a reported $135.3 million, or about $240 a square foot. The complex was sold by a joint venture between Mullen Co. of Irvine and Rockwood Capital of San Francisco, which bought the property for $136 million in 2007. Terms of the deal and representative agent information was not disclosed.

"Large office campuses are increasingly hard to come by in West LA's desirable market, so acquiring Wateridge was a unique opportunity for Lincoln, and certainly in line with our strategy,” said David Binswanger, Executive Vice President of Lincoln Property Company. "We see its potential to help meet demand for quality office space in this region.”

Lincoln's finance director, Stephen Lindgren, said he expects to draw tenants ranging from tech and media firms to law offices and accountants for the remaining space. "As Playa Vista and Corporate Pointe continue to tighten, we'll be able to offer a lower-cost alternative to be in those same markets,” he said.

Known as Wateridge, the 6-building Class A office campus in Ladera Heights sits on 21 acres at the corner of La Cienega Boulevard and Slauson Avenue with easy access to the 405 and 10 freeways. The property was originally constructed in phases beginning in 1989, with upgrades in 2010 to include additional parking, renovated common areas and improved landscaping; the property has since become a campus-style, multi-tenant facility with a diverse mix of office and retail tenants. Wateridge was approximately 70% leased at the time of sale, with major tenants including Evolve Media, Kaiser Permanente, and the Los Angeles County Department of Children and Family Services (DCFS).

For more news and information visit Blumberg Partners.

Related Cos. $6.5B City Center Project Secures Approval

Santa Clara, California's City Council unanimously approved Related Cos. plans for a 9-million-square-foot CityPlace mixed-use development on the site of a current golf course on top of a city landfill. Described as the largest private development project in Silicon Valley's history, Related has been seeking approval for almost four years to build a $6.5 billion mixed-use center and office campuses just north of Levi's Stadium at 5155 Stars & Stripes Drive.

"This project, looking at the real estate side of it, and the fact that we we own it, it's whipped cream with a cherry on top," said Mayor Lisa Gillmor prior to the vote. "Not only will we get the development that services our community, but also we'll reap the financial benefits of having a cash flow into our general fund for generations to come." Even though Santa Clara approved the development after reviewing lengthy impact, environmental and zoning reports, regulatory agencies and utilities have yet to approve the project over concerns about allowing water hookups — perceived as the biggest threat to approval — and housing over a landfill site.

"We feel very excited about the project. It's the biggest project in the history of Santa Clara," Santa Clara's acting City Manager Rajeev Batra said. "We do not have a destination. We do not have an entertainment center, restaurants, or retail. So people in Santa Clara have to go elsewhere like San Jose or other cities like Campbell." The city has projected that it will receive up to $16.9 million in annual tax benefits, along with $9 million to $14 million in yearly rent revenues, once the project is up and running.

The 239-acre mixed-use development will be separated into five parcels, each of which will be developed in phases. The largest parcel will house the City Center and the majority of the residential, entertainment, retail, and restaurant space. It's anticipated that construction of the first phase will commence in 2017 and be completed by 2020. Future phases consisting of office space, with a mix of retail, as well as food and beverage offerings, will be developed over a period of 10-15 years and subject to market demand. Construction costs are tagged at $5 billion, with more than 80% of the work to be handled by union labor.

For more news and information visit Blumberg Partners.