Taylor Wimpey Sells NA Holdings for $995M

Taylor Wimpey, operating as Taylor Morrison in the United States and Monarch in Canada, has agreed to sell its North American holdings to investment funds separately managed by TPG Capital and Oaktree Capital Management, as well as JH Investments for $995 million according to a San Francisco Chronicle article. Taylor Morrison CEO Sheryl Palmer would not disclose the ownership stake of each of the companies, but said collectively they will provide capital and expertise to maintain the company's profitability, which was accomplished in 2010 following the market turmoil of the last several years. The transaction is contingent upon shareholder approval in the UK and customary regulatory approvals, and is expected to close by the end of May 2011.

"We see this as a positive sign for the future of our business," said Morrison. "The commitment and tenacity of our team has helped pave the road for today's announcement." With homebuilding operations in Arizona, California, Colorado, Florida and Texas as well as in Canada, Palmer said the objective for the past year has been for all U.S. divisions to return to profitability, something she said was accomplished in 2010.

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First Potomac Buys $90M Office Building in DC

First Potomac Realty Trust completed the acquisition of 840 First St. NE in Washington, DC for $90 million from the Stephen A. Goldberg Co. according to a Washington Business Journal article. The building was acquired at below replacement cost, said Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust. The contract leaves room for an additional $10 million of consideration payable depending on the terms of any lease renewal by the existing tenant or re-tenanting of the property according to a GlobeSt.com report.

"This strategically located, fully leased office building is a very attractive investment opportunity for First Potomac," said Smith. "We were able to acquire 840 First Street in an off-market transaction at below replacement cost, once again demonstrating how our local market expertise and relationships allow us to execute on high-quality transactions that strengthen our portfolio and deliver long-term value to our shareholders."

The fully-leased Class A office building adjacent to Union Station boasts 248,576 square feet of space and was constructed in 2003. The property is leased to Group Hospitalization and Medical Services, Inc., an independent licensee of the Blue Cross and Blue Shield Association. The health care insurer is the building's original tenant and has sole access and control of the building's facilities, including its 222 underground parking spaces and cafeteria.

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NorthPark Central Tower Sold for $64.4M

AREA Property Partners sold the Northpark Central office building in Dallas, TX for $64.4 million last week according to a Dallas Morning News article. Cornerstone Real Estate Advisors purchased the 491,083 square foot office building at 8750 N. Central Expressway; Transwestern was selected to lease and manage the property. AREA originally purchased the property through one of its funds from Connecticut General Life in 1996 for $53.8 million.

The 20-story mirrored-glass office tower is roughly 90% leased with major tenants including The Richards Group, Gilsa Products and CF & Co. The building was awarded an Energy Star label in 1999, 2002, 2003 and 2009 for its operating efficiency. The sale also included a six-story, 700-space parking garage that is directly adjacent to the property according to a CoStar report.

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Cole Real Estate Buys Phoenix Office Complex for $170M

In a sale-leaseback transaction, Cole Real Estate Investments has acquired Apollo Group's University of Phoenix office complex for $170 million according to a CoStar report. Apollo Group signed a 20-year lease with Cole; the deal requires Apollo to keep the company's corporate headquarters in the building for at least the next 20 years. The 20-year, triple-net lease expires in 2031. "It's a 20-year lease with five-year renewal options," Apollo spokesman Manny Rivera said. "So, the sale of the Riverpoint complex is pretty much a business transaction that allows Apollo to diversify our real-estate portfolio and really just to focus on our mission to provide quality education."

The Riverpoint complex covers three mid-rise office towers with roughly 600,000 square feet, including two parking structures. The facility was constructed from 2006 to 2007 and is located two miles south of Phoenix Sky Harbor Airport and four miles southeast of the Phoenix central business district.

"This sale-leaseback transaction is a strong fit with Cole's core investment strategy of acquiring high-quality, income-producing real estate, leased to creditworthy, industry leading businesses under long-term leases," said Thomas Roberts, executive vice president and head of real estate investments for Cole. "As a key, strategic operation for Apollo Group and University of Phoenix, the Riverpoint complex is a premier asset to add to our growing portfolio of corporate real estate."

For more news and information visit Blumberg Capital Partners.

Groupon Expands in Chicago With New Lease

Groupon, the online daily deal coupon website, is expanding its space in Chicago with a new lease at 303 E. Wacker Drive in Chicago's East Loop according to a CoStar report. Groupon currently occupies 46,115 square feet in the office tower but will now take on 196,189 square feet total. Groupon will pay the building owners, Franklin Street Properties Corp., $441,425 per month until its lease expires on May 31, 2012, according to a filing with the U.S. Securities and Exchange Commission.

Groupon plans to take three new spaces, including one on the first level of the complex's northern portion beneath the condominiums at 900 N. Kingsbury St., as well as on the third and seventh floors of 600 W. Chicago, to accommodate new growth. The spaces are expected to be ready in the next few months.

The company recently moved its 200-plus editorial team to a temporary location while awaiting completion of the expansion space at 600 W. Chicago. "Our intention is to move everybody back (to 600 W. Chicago)," a Groupon spokesman said. "It's definitely our preference that we'll all be in the same building."

For more news and information visit Blumberg Capital Partners.

Boeing Begins Construction on Oklahoma City Building

The Boeing Company announced this week that construction had begun on a new 320,000 square foot building in Oklahoma City according to a BusinessWeek article. The building, designed by the Gardner Tanenbaum Group, is expected to be completed in the second quarter of 2012 and will accommodate the move of selected Boeing groups from Long Beach, CA to Oklahoma City.

"By moving B-1 and C-130 AMP to Oklahoma City, we are able to lower our operating costs and extend an increased value to our customer," said Mark Bass, Boeing vice president and general manager of Maintenance, Modifications & Upgrades at Boeing. "Boeing appreciates the positive business environment created by the state of Oklahoma and its county and city governments. This environment contributes to our affordability, and the well-trained aerospace work force already in place will be key to our success."

Boeing currently employs 945 employees in Oklahoma, 745 of whom are located in Oklahoma City. Boeing will have nearly 1,500 employees in the state when the B-1 and C-130 transition is complete.

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Commerzbank Signs 15 Year Lease at Two World Financial Center

Commerzbank AG signed a 15 year lease this week for 173,000 square feet at 2 World Financial Center. Commerzbank has maintained its US headquarters at Brookfield Office Properties' World Financial Center since the 1990s. Brookfield said that the Commerzbank lease, when coupled with OppenheimerFunds' decision in February to stay at 2 WFC after its sublease from Bank of America Merrill Lynch expires, represents more than 400,000 square feet of Merrill sublease space that has been converted to direct at the 2.3-million-square-foot office property.

"We are pleased that these two respected financial services institutions have chosen to extend their tenancy at the World Financial Center and remain committed to Lower Manhattan," said Ric Clark, president and chief executive officer of Brookfield Office Properties.

2 World Financial Center is one of four office towers of the 8-million-square-foot commercial complex on the west side of Lower Manhattan overlooking the Hudson River.

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