Business Property Lending Sold for $2.51 Billion

EverBank Financial announced that it had executed an agreement to purchase Business Property Lending, a unit of GE Capital Real Estate, for $2.51 billion in cash. No debt will be assumed in the acquisition, and is expected to close in the fourth quarter of this year pending regulatory approval. Business Property Lending, which originates and services commercial real estate loans, currently has 14 offices across the United States with roughly $2.44 billion of performing commercial loans and servicing rights on $3.1 billion of loans securitized by GE Capital.

BofA Merrill Lynch acted as the financial advisor to EverBank and Sullivan & Cromwell LLP acted as its legal advisor on the transaction. Goldman Sachs also acted as an advisor to EverBank and Gateway Asset Management LLC provided loan diligence. Deutsche Bank Securities acted as financial advisor to GE Capital and Weil, Gotshal & Manges LLP acted as its legal advisor.

"Today's announcement represents a compelling strategic expansion into business property lending in key metropolitan areas where EverBank currently has significant lending, leasing and deposit customers," commented Robert Clements, Chairman of the Board and Chief Executive Officer of EverBank. "We believe this fully integrated, high quality franchise will accelerate EverBank's strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities."

The sale will reduce GE Capital's ending net investment, a measure of the unit's size that excludes non-interest-bearing liabilities and cash, by $5 billion, a GE spokesman, Russell Wilkerson, said. "The transaction is consistent with our strategy of reducing our real estate portfolio," Wilkerson said in the e- mail reported by The San Francisco Chronicle. According to a New York Times blog, EverBank previously acquired the banking operations of the failed Bank of Florida in a deal brokered by the Federal Deposit Insurance Corporation in 2010.

For more news and information visit Blumberg Capital Partners.

Brookfield Acquires 799 9th Street NW in DC for $106M

Brookfield Office Properties announced this week that it had purchased 799 9th Street, NW on the corner of 9th and H Streets in Washington, DC for $106 million from A-799 9th Street Holdings, LLC. The 10-story class A office building previously traded hands in November 2006 when Cushman & Wakefield negotiated the sale from Blue Capital Investments for $127.5 million. Brookfield said it is funding the acquisition through new property-level financing of $71.5 million and the balance from available cash resources.

Built in 2001, 799 9th Street holds 203,000 rentable square feet and is currently 96% occupied with all leases expiring in December 2012 and January 2013. The property has 156 parking spaces and several street-level eateries, including OYA Restaurant. Brookfield has said that it has planned improvements for the property, including a full lobby and building entry renovation, a tenant fitness center with showers and lockers, and a new roof terrace with views of the DC monuments.

"The East End submarket is thriving, with low office vacancy, new amenities coming online, and an overall 24-7 neighborhood feel," said Dennis Friedrich, president and global chief investment officer at Brookfield Office Properties. "Our investments in several of the premier office buildings in this submarket are consistent with our strategy of owning high-quality assets in the best-located areas of our core U.S. markets."

For more news and information visit Blumberg Capital Partners.

Dolby Labs Purchases SF Tower for $109.8 Million

Dolby Laboratories announced this week that it was purchasing 1275 Market Street in San Francisco, formerly the home of the California State Compensation Insurance Fund, for $109.8 million. The seller is a partnership between DivcoWest and TMG Partners. The two real estate investment firms purchased the building in October of 2011 for $44 million, or about $115 a square foot, according to a San Francisco Business Times article. A non-refundable deposit of about $5.5 million has been placed in escrow, and the sale is expected to be completed on July 10, Dolby plans to fully occupy the 354,000 square foot building as its new headquarters.

"Dolby technologies bring richness, realism, and immersion to entertainment in the cinema, at home, and on mobile devices," said Kevin Yeaman, President and Chief Executive Officer, Dolby Laboratories. "This investment will support the company's current needs and future growth by fostering a collaborative environment that will continue to attract and retain the best employees."

"San Francisco--based Dolby is an important employer and business leader here in the 'Innovation Capital of the World,' and we appreciate the company's continued commitment to job creation in our City," said San Francisco Mayor Ed Lee. "Companies like Dolby are transforming the Central Market neighborhood into a vibrant hub for entertainment, culture, and innovation and are proving that our economic strategy for companies to start here, grow here, and stay here is working."

For more news and information visit Blumberg Capital Partners.

Assisted Living Concepts Buys Ventas Properties, Settles Suit for $100M

Assisted Living Concepts (ALC) announced this month that it had signed an agreement to purchase 12 properties from Ventas Realty for $97 million according to a Milwaukee Journal Sentinel article. The deal includes $3 million to settle a lawsuit filed by Ventas in April wherein Ventas alleged that ALC breached the terms of its lease after state regulators in Georgia and Alabama threatened to revoke the licenses of several centers because of substandard care.

The residences, five located in Georgia, four in South Carolina and one in each of Florida, Alabama and Pennsylvania were previously operated by ALC under master lease agreements with Ventas Realty and MLD Delaware Trust. The transaction was funded with borrowings available under ALC's $125 million revolving credit agreement.

"We are pleased to reach a mutually satisfactory arrangement with Ventas and to have acquired these 12 residences. While we have had some recent regulatory challenges at several of these properties, we are taking actions to address these challenges and to enhance their quality," commented ALC President and CEO Charles H. "Chip" Roadman II, M.D. "The addition of these 12 residences increases our percentage of owned properties to 82.0%."

"Ventas stands for excellence in seniors housing. This transaction allows ALC's new chief executive officer and its Board of Directors to focus their attention and resources on providing quality care for its residents," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said in a statement.

For more news and information visit Blumberg Capital Partners.

Prudential Mortgage Closes $108M UK CRE Loan

Prudential Mortgage Capital Company, the commercial mortgage lending business of Prudential Financial, announced this week that it had closed a $108 million commercial real estate loan in the U.K., the first financing since launching its European business earlier this year. The 11-year financing loan is secured by a portfolio of five properties in London and Bath, and is sponsored by the O&H Group, a family-run business with real estate holdings and development projects throughout the U.K.

Prudential is targeting $500 million (GBP 325 million, EUR400 million) of long-term, fixed-rate senior debt transactions in Europe in 2012 according to a Commercial Observer article. "The diversification we can achieve by investing a portion of our portfolio outside of the U.S., whether it's Europe, Japan, or Mexico, is very valuable," said Thor Orndahl, a managing director who oversees Prudential Mortgage Capital Company's non-U.S. mortgage platform. "The current market dislocation has provided the opening we have been looking for, and our plan is to be active in Europe for many years to come."

Drew Abernethy, head of Pricoa's new European origination business, said, "Prudential is very pleased to have closed this first transaction so soon after introducing their its European program. It illustrates the strength of the Prudential platform globally, a commitment to Europe specifically, and an earnest belief that clients like O&H should have access to the type of long-term financing that they want."

For more news and information visit Blumberg Capital Partners.

Amazon's Denny Triangle Expansion Designs Revealed

Earlier this year Amazon.com tentatively bought three blocks in Seattle's Denny Triangle in one of Seattle's biggest real-estate deals in years, and this month they've released designs for the new expansion project. Seattle-based Amazon purchased the three blocks — bounded roughly by Westlake Avenue, Sixth Avenue and Blanchard Street — from their longtime owner, Seattle's Clise family. Amazon is now seeking approval for its plan to erect three 38-story towers in a 3.3 million square foot project that would bring its workforce together in Seattle.

According to a Puget Sound Business Journal article, the early design packet submitted by Seneca Real Estate Group Inc. and architecture firm NBBJ includes several potential amenities. One possibility is an "awareness garden" featuring storm-water management waterways flowing alongside the walkways. Another is a neighborhood walking/jogging trail leading to a public square resembling Westlake Plaza; the plaza would be located near the intersection of 7th Avenue and Lenora Street.

The Puget Sound Business Journal reported on the proposed designs:

The simplest master plan would put two office towers on each of the three blocks. Alleys would remain in place with office buildings on either side.

Each of the three other master plans would eliminate mid-block alleys, allowing a single T-shaped, L-shaped or Z-shaped building to be constructed on each site. The designs would allow for public open spaces on each of the blocks, with an auditorium located adjacent to Lenora Street between 6th and 7th avenues.

The other alternatives propose different alignments for the buildings. In the second alternative, known as the City Street Scheme, the office buildings would be aligned perpendicular to the numbered avenues. In a third alternative known as the Westlake Scheme, two of the buildings would be oriented toward Westlake Avenue while the third building would be turned 45 degrees so that its length would run along a true east/west axis.

The fourth alternative, called Preferred Scheme, would have the two towers between 6th and 7th avenues sitting perpendicular to 7th Avenue with the third tower between 7th and 8th avenues running perpendicular to 7th Avenue.

For more news and information visit Blumberg Capital Partners.

The Beatrice Sold for $280M

The co-developers of The Beatrice, JD Carlisle and DLJ Real Estate Capital Partners, announced that it had sold the property at 105 West 29th Street in New York for $280 million according to a CNBC report. Equity Residential purchased a 29 floor residential portion of the 54 story mixed-use tower, while the remainder, which includes the Eventi Hotel and parking garage, were not included in the sale. Terms of the deal were not disclosed.

"The Beatrice epitomizes the increasing strength of multifamily fundamentals, particularly in the New York City market," said Andrew Rifkin, Chairman and Managing Partner of DLJ RECP. "Together with JD Carlisle, we remain committed to the ongoing development of new, high value-added real estate opportunities, seeking ways to create even greater value for institutional investors."

"The sale of the Beatrice is testament to our development team's consistent ability to deliver premier properties of the highest caliber," said Jules Demchick, Chairman of JD Carlisle. "EQR recognizes the tremendous long-term value this proven property offers. New York City class-A multifamily is a highly sought after asset class delivering solid returns to institutional investors."

For more news and information visit Blumberg Capital Partners.