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.

Jayna Purchases Trinity Square Business Park

Jayna Inc. is expanding into the Dallas Fort Worth area with the purchase of Trinity Square Business Park at 2555 Tarpley Road in Carrollton. Ohio-based Jayna bought the complex on nearly 1.9 acres of land for an undisclosed amount with plans to open a business at the 32,480-square-foot office and warehouse property. Cushman & Wakefield represented Jayna in the transaction with Bradford Commercial Real Estate Services representing the Cleveland-based seller, PAI Dallas.

"The third quarter is typically the slowest quarter in Texas," Jean Russo of Cushman & Wakefield said in a D Magazine article. "Boards don't meet in the late summer, everybody's on vacation, and it's hot, so new companies that are in the market typically wait until after Labor Day."

For more news and information visit Blumberg Capital Partners.

STAG Picks Up Two Properties for $17.9M

STAG Industrial, Inc. announced this week that it had acquired two industrial properties for $17.9 million according to a Dallas Business Journal article. STAG also closed a $65 million acquisition mortage facility with Connecticut General Life Insurance Company which will be used to fund future acquisitions.

The first building at 1801 Riverbend West Drive in Fort Worth, Texas was built in 1997, renovated in 1999, and is 100% leased to Ecolab, Inc. The second building at 18285 NE Halsey in Gresham, Oregon was originally built in 1960 and last renovated in 2006 and is now leased in part to both Unisource Worldwide and Benson Industries, LLC.

For more news and information visit Blumberg Capital Partners.

LodgeWorks Selling 24 Property Portfolio to Hyatt for $802M

LodgeWorks LP, a private hotel developer, and its private-equity partners has signed an agreement to sell their 24 property portfolio to Hyatt Hotels Corporation for approximately $802 million in cash according to a Bloomberg report. The acquisition includes 24 hotels and related assets, including management, franchise and intellectual property rights; Hyatt indicated that key members of the LodgeWorks management and development teams are expected to join Hyatt.

"We are very proud of our hotels and our teams," said LodgeWorks founder, Chairman and CEO Rolf Ruhfus. "It is exciting to build a portfolio that brings value to our investors and teams and now to an industry-leading Hyatt. We respect the Hyatt heritage and culture and are very pleased to contribute to its growth."

"This is a significant expansion of our presence in the United States and enhances our extended-stay representation with a great collection of high-quality hotels," said Mark Hoplamazian, President and CEO of Hyatt.

For more news and information visit Blumberg Capital Partners.