KBS Buys QBE Corporate Campus for $78.7M

KBS Strategic Opportunity REIT announced this week that it had purchased the QBE/Corporate Campus, formerly Unigard Park, for $78.7 million from QBE North America, a part of QBE Insurance Group Limited. Jones Lang LaSalle's Capital Markets group, including managing directors Ann Chamberlin, Lori Hill, Stuart Williams and Michel Seifer, represented QBE in the transaction. The 9-building complex sits on 46 acres and was 38% vacant at the time of sale; QBE Insurance Group will continue to occupy one building in the complex.

According to a GlobeSt.com report, KBS plans to rebrand the property, previously called Unigard Park, as Bellevue Technology Center, located 11 miles west of downtown Seattle and a half-mile south of Microsoft headquarters. "The acquisition of QBE Corporate Campus demonstrates our intimate knowledge of the local market and ability to identify high-quality assets with untapped potential," said Brian Ragsdale, EVP of KBS Capital Advisors, in a prepared statement. "We've been attracted to both Seattle and QBE Corporate Campus for some time, and consider the property to be a good fit."

For more news and information visit Blumberg Capital Partners.

City Center Bellevue Sold for $229M

American Assets Trust, a self-administered real estate investment trust (REIT), announced this week that it had entered into an agreement to acquire City Center Bellevue in Bellevue, Washington for approximately $229 million. The seller, Beacon Capital, listed the property earlier this month with Eastdil. Full terms of the transaction were not disclosed, but the transaction is being structured to accommodate a possible tax deferred exchange pursuant to the provisions of Section 1031 of the Internal Revenue Code of 1986 and applicable state revenue and taxation code sections.

"The greater Seattle area, Bellevue in particular, has been a target investment region for the Company and its predecessor for many years. We are extremely pleased with the pending acquisition of City Center Bellevue and our eventual entry into this highly constrained market. We expect that our efforts will enable us to continue to expand our presence in the area," said John W. Chamberlain, American Assets Trust's Chief Executive Officer and President.

City Center Bellevue consists of approximately 497,000 square feet over 27 floors, located in the heart of Bellevue's Central Business District at 500 108th Avenue NE, and is currently managed by Wright Runstad & Company. American Assets expects that the property will be roughly 92% leased at the time of closing with major tenants including HDR Engineering, Intelius, Sucker Punch Productions, Global Scholar, Cisco Systems and Morgan Stanley.

For more news and information visit Blumberg Capital Partners.

Kilroy Pays $186M for Skyline Tower in Seattle

Kilroy Realty Corporation announced this week that it had acquired the 417,000 square-foot, 24-story, Class A office tower known as Skyline Tower located in Bellevue, Washington for $186 million. Kilroy purchased the property from Beacon Capital Partners of Boston in the second-largest in King County so far this year, according to a Seattle Times article. Beacon Capital Partners reportedly paid $129.8 million, or $318 a square foot, for the property in early 2006. In an earlier release announcing the pending sale, Los Angeles-based Kilroy said it was taking on an in-place loan of $84 million as part of the deal.

Skyline Tower is a LEED Silver certified property featuring spectacular views of the Cascade and Olympic Mountains and Mount Rainier, and sits in close proximity to Bellevue's affluent residential and retail neighborhoods. The property, designed by TRA Architects, is currently 92% leased to a diverse tenant base that includes technology companies Expedia and Valve Corporation.

For more news and information visit Blumberg Capital Partners.

Howard Hughes Corp. Invests $70M in New Orleans Riverwalk

The Howard Hughes Corporation announced this week that it would be investing approximately $70 million in the redevelopment of Riverwalk Marketplace in New Orleans to create a new upscale outlet center in the heart of the city called The Outlet Collection at Riverwalk. Howard Hughes Corp. originally acquired the center in 2011 and these new plans will create the nation's first outlet location in an urban setting. The mall has seen its share of change in recent years, with fewer national retailers and more small shops. Store occupancy at the mall dipped as low as 30% after Hurricane Katrina, but rebounded in recent years to as high as 90% according to a WWLTV news item. Artist renderings show upgrades in the facility's design, and plans call for an expansion of about 50,000 square feet.

"Our redevelopment and repositioning of this storied riverfront property will bring well-known, popular retail and entertainment establishments, many which will be new to New Orleans," said Grant Herlitz, President of The Howard Hughes Corporation. "Beyond the impact of these compelling options for locals and tourists, we are pleased to be part of the continued revitalization of New Orleans given the many benefits this development will represent to the city."

The Outlet Collection at Riverwalk will showcase top national retailers with established outlet stores as well as some local retail, dining and entertainment options. Many of the retail establishments will be the first location in Louisiana, New Orleans and the Gulf region for their respective brands. Construction should begin by mid to late fall and should be complete in time for the holiday season next year.

Rod Miller, President and CEO of the New Orleans Business Alliance said, "This investment by the Howard Hughes Corporation further underscores the opportunity and viability of the New Orleans market. The New Orleans Business Alliance is passionate about improving the city’s retail landscape and believes this project has potential to be catalytic in anchoring the Canal shopping district. We will continue to work with Howard Hughes and the City to see this project and others like it to completion."

"This planned redevelopment proposes a new tenant mix that will restore Riverwalk as a favorite place to shop for tourists and locals alike and is another step in making New Orleans a regional shopping destination," said New Orleans Mayor Mitch Landrieu in a Times-Picayune article.

For more news and information visit Blumberg Capital Partners.

Retailers Opening Smaller Urban Stores

In a New York Times article titled Retailers' Idea: Think Smaller in Urban Push, the Times examines the trend of larger retailers, like Wal-Mart and Target, opening small city stores to open their growth. "The suburbs are basically saturated with retailers," said Patrick L. Phillips, chief executive of the Urban Land Institute, an urban-planning research nonprofit, "but it's easy to develop stores in the suburbs, and hard to develop stores in cities." An excerpt from the article:

Most large American cities are growing faster than their suburbs for the first time in almost a century, according to a Brookings Institution analysis of census results released last month, largely because young adults are choosing urban apartment life. That population shift, along with Internet competition, have made the car-focused, big-box model less relevant.

Target opened its first City Targets, in Chicago, Los Angeles and Seattle, on Wednesday. At 80,000 to 100,000 square feet, City Target, at its smallest just over half the size of a remodeled Target, is aimed at urban shoppers. For instance, City Targets would not carry a six-piece patio set, but a three-piece balcony set instead.

"We see this as an opportunity for the people who live, work and play downtown, who probably have a suburban Target they call their home base," said Molly Snyder, a company spokeswoman. "You'll see less 12-packs of paper towels and more four-packs, knowing most people will arrive by foot or public transportation and will have to carry it home."

For more news and information visit Blumberg Capital Partners.

Kite Realty Secures $23M Financing for Four Corner Square

Kite Realty Group Trust, a full-service, vertically integrated real estate investment trust, announced this week that it has closed on a $23 million construction loan for its Four Corner Square redevelopment property in Maple Valley, Washington. Plans for the redevelopment include expanding from 44,000 square feet to 109,000 square feet. The construction loan was financed by U.S. Bank, bears an interest rate of LIBOR plus 225 basis points, and has a three year term with an option to extend for an additional two years.

"We are excited to commence construction on the expansion of Four Corner Square," said John A. Kite, Kite Realty Group Trust's Chairman and Chief Executive Officer. "This project reflects our ability to utilize our value-added platform to enhance the quality of the center." The property is currently 84% leased with major tenants including Johnson’s Home & Garden and Walgreens.

For more news and information visit Blumberg Capital Partners.

Denver's 1660 Wynkoop Sold for $26.6M

1660 Wynkoop, located in the Lower Downtown Historic District (LoDo), traded hands this month as Boston-based AEW Capital Management bought the building from Legacy Partners for $26.6 million, or $405 per square foot. Cushman & Wakefield of Colorado Inc. represented Legacy Partners in the transaction; the terms of the sale were not disclosed.

1660 Wynkoop, built in 1983, is an 11-story, 65,715 square-foot office building featuring a brick-clad exterior and spectacular Rocky Mountain views. The property was 90% leased at the time of purchase according to a Denver Business Journal article. "This sale was driven by tenant demand," Mike Winn, vice chairman of Cushman & Wakefield of Colorado Inc. said. "That's where tenants want to be, so investors are buying where they think there will be demand and ultimately rent growth to reward their investment."

For more news and information visit Blumberg Capital Partners.