SL Green to Acquire 304 Park Ave South for $135M

In a deal expected to close on June 1, SL Green Realty Corp. announced this week that it had entered into an agreement to acquire 304 Park Avenue South for $135 million from a partnership headed by David Berley, Chairman of Walter & Samuels Inc. The purchase price of the 215,000 square foot mixed-use office and retail building equals roughly $628 per square foot. Walter & Samuels represented the seller in the transaction, with Eastdil Secured serving as advisor.

304 Park Avenue South is located on the southwest corner of Park Avenue South and 23rd Street directly across the street from SL Green's One Madison Avenue in the Midtown South sub-district. The property is currently 95% leased to major tenants including IMG Models, H&R Block, Bath & Body Works and Time Warner Entertainment.

Andrew Mathias, President of SL Green, commented, "We've been monitoring Midtown South carefully looking for acquisition opportunities, however the consistently tightening vacancy rates and substantial lease activity in the area have driven cap rates on marketed deals below our target investment thresholds. This unique opportunity came to us because of the attractiveness of our Operating Partnership Units and our relationship with the seller."

For more news and information visit Blumberg Capital Partners.

RLJ Acquires 2 Hotels in DC and NYC for $146.5M

RLJ Lodging Trust announced this week that had acquired two hotels for a combined total of $146.5 million. RLJ acquired the Courtyard New York Manhattan/Upper East Side, a 226-room hotel, through a bankruptcy court-ordered sale for $82 million. The second property, the 187-room Residence Inn by Marriott Bethesda Hotel Downtown, was acquired in an off-market transaction for $62.5 million.

"We were able to leverage our extensive network and strong industry relationships to source and execute accretive transactions in key gateway cities," commented Thomas J. Baltimore, Jr., President and Chief Executive Officer at RLJ Lodging Trust. "We expect these two new additions to yield strong results and strengthen our overall portfolio."

For more news and information visit Blumberg Capital Partners.

Industrial 59 Oak Street Sold to Private Investor

The Hampshire Companies announced this week that it had sold 59 Oak Street in Hackensack, N.J. to a local private investor. The terms of the deal were not disclosed, but it was noted that Tom Vetter and Jeff DeMagistris of NAI James E. Hanson represented both Hampshire and the buyer in the transaction.

"The building's location within Central Bergen County with immediate access to Route 4 has made this a strategic location for small bay users in the market," said Michael Harrington, an investment manager for The Hampshire Companies. "The buyer of this property will benefit from the in place tenancy as well as the ability to utilize future available space for their various business interests."

Built in 1973, the 25,000 square foot multi-tenant industrial building was fully leased at the time of sale to five industrial users. The Hampshire Companies noted that the property's close proximity to the George Washington Bridge provides tenants with both a New Jersey and New York presence.

For more news and information visit Blumberg Capital Partners.

IRS Closing 43 Offices too Save $17M

In an attempt to cut costs, the IRS has announced that it will be closing 43 of its smaller offices over the next two years. The cost-cutting initiative is projected to save $17.2 million in annual rental costs in fiscal 2012 and $23.5 million in fiscal 2013. In addition to closing the smaller offices, the IRS will also consolidate multiple offices within the same commuting area and explore ways to "do more with existing space," like desk sharing and more telecommuting.

"Given today's tight budget environment, we have to be willing to make the tough but responsible calls to save taxpayer dollars," said IRS Commissioner Doug Shulman. "Cutting and consolidating our real estate is a responsible way we can save money. It's an important addition to our growing portfolio of cost-saving measures."

The IRS hasn't released a list of the offices to be closed but indicated that it would be those without taxpayer assistance centers and have fewer than 25 employees according to a Forbes article.

For more news and information visit Blumberg Capital Partners.

University Medical Center of Princeton at Plainsboro

The University Medical Center of Princeton opened its new medical center this week, the University Medical Center of Princeton at Plainsboro (UMCPP), completing a $447 million project. Princeton HealthCare System announced on Tuesday that 110 patients from the University Medical Center at Princeton had bee safely transferred to the new hospital via ambulance. In an open letter from Barry S. Rabner, President and CEO of Princeton HealthCare System, had this to say of the new medical center:

"During the past nine years, countless questions have been asked by thousands of people and the one question I continue to think about is 'Why did our community make this extraordinary investment?'

"The answer is critical because it tells us what is expected of us. I thought we answered the question when it was asked by the department of health, township councils, planning boards, neighbors, medical staff, employees, donors, reporters, bankers and advocacy groups representing everyone from seniors to children and the uninsured.

"Our answer always included the need to:

• Address increased demand for care from a growing and aging population
• Accommodate changes in technology
• Introduce new clinical programs and services
• Improve clinical outcomes
• Improve patient and family satisfaction with their care
• Reduce costs."

UMCPP, consisting of approximately 630,000 square feet of interior space on 50 acres, is the cornerstone of a 171-acre healthcare campus in the community of Plainsboro Township, N.J. The health campus includes a new hospital, attached medical office building, education center, skilled nursing facility, and other uses enhancing the health well-being of Central Jersey residents, such as the possibility of a pediatric services center, health and fitness center, long-term care facility, and assisted living facility. UMCPP was designed by team of world-leading architects and consultants including Hellmuth, Obata and Kassabaum (HOK) and RMJM Hillier.

For more news and information visit Blumberg Capital Partners.

Kettering Tower Sold to Dunkirk Realty

The tallest office building in downtown Dayton, Ohio was sold this week to NY-based Dunkirk Realty, with an eye on more property in the area. "We're going to buy as much as we can (in the Dayton area)," said Albert Macanian, president of Dunkirk, in a Dayton Daily News article. "With its location in the center of the United States, Ohio — and Dayton in particular — is an ideal location for investment and opportunity. Dayton is a great market for investors, not only because of its location, but for its potential as well. We have a long-term interest in Dayton."

"This is a group of investors with experience in much larger markets, and we are confident they will be very successful in downtown Dayton," said Sandy Gudorf, president of the Downtown Dayton Partnership.

Dunkirk Realty purchased the building at 40 N. Main St. under Tower Partners LLC. The 29 story Kettering Tower claims 486,121 square feet of Class A office space, and has been Dayton's tallest office tower since it was constructed in 1971. Terms of the deal were not disclosed and no immediate deed could be found through the Montgomery County auditors office, according to a Dayton Business Journal article. Major tenants of the property include JPMorgan Chase, Ernst & Young, Merrill Lynch and the Dayton Racquet Club, with recently signed tenants including Sebaly, Shillito & Dyer, Johnson Investment Council, and the Dayton Development Coalition.

For more news and information visit Blumberg Capital Partners.

Hangover Opportunity Fund Buys Tarrant Co. Office Building

The Hangover Opportunity Fund LLC, formed in 2010 by SkyWalker Property Partners, has added another property to its portfolio with the addition of 3301 W. Airport Freeway in Bedford, Texas. The 70,938-square-foot office building was acquired for an undisclosed sum, with Grubb & Ellis representing the seller, a California-based family trust.

According to a Dallas Business Journal article, SkyWalker plans to invest $100,000 to $200,000 to restore the 3.07-acre property's curbside appeal along the expanding Texas 183-121 junction, as well as common-area improvements. The building was 57% leased at the time of sale to five major tenants, with Renee Efimoff and Justin McCarthy of SCM Real Estate Services in Arlington under contract to oversee the property's leasing efforts. Shane Benner, a research analyst for SkyWalker, said that "this is a highly visible property in a submarket where we are currently invested. We firmly believe this is a good turn-around opportunity with renovation and the repositioning plan that we're putting in place."

For more news and information visit Blumberg Capital Partners.