American Realty Buys Shoemaker Distribution Center

American Realty Advisors announced this week that it had acquired the Shoemaker Distribution Center, a 175,000 square-foot Class A industrial warehouse in Santa Fe Springs, California. The property, located at 15050-15066 Shoemaker Ave, adjacent to I-5 on the west side of Carmenita Road and south of Rosecrans Avenue, was sold by an entity controlled by Lincoln Property Company; terms of the deal were not disclosed. American Realty Advisors represented itself in this acquisition, while the seller was represented by Barbara Emmons, Darla Longo, Rebecca Perlmutter, and Laird Perkins of CBRE.

The Shoemaker Distribution Center is 100% occupied in a market with just two percent vacancy at the end of the fourth quarter of 2014. Major tenants include Fortune 500 Company J.B. Hunt Transport Services, Altaquip LLC, Pacific Diving Academy USA, Inc., Spartech Corporation, and Sysonic USA, Inc.

"We have a very strong focus on industrial assets throughout the United States in key distribution markets, and 40% of trade in the United States comes through the west coast ports, of which Los Angeles is the largest," Gary Steinhardt, director of the investment group at the firm, told GlobeSt.com. "We believe that the robust tenant and investor demand for functional in-fill distribution assets will continue, making this investment well positioned for long-term growth. Shoemaker offers many of the attributes desired by tenants in Santa Fe Springs, a market which can efficiently serve the entire Los Angeles and Orange County regions. These attributes include ample dock-high and drive-in loading, excess trailer storage and 24' or greater ceiling heights. Basically this is a strong income-producing property that is consistent with American Realty Advisors' ongoing investment strategy to identify core assets in well located, supply constrained markets."

For more news and information visit Blumberg Capital Partners.

GLP, Indcor Deal Closes

Global Logistic Properties (GLP) and Singapore's sovereign wealth fund completed the acquisition this week of IndCor Properties, the Chicago-based industrial landlord. Blackstone announced this past December that Blackstone Real Estate Partners VI & VII had agreed to sell IndCor Properties to affiliates of GIC, Singapore's sovereign wealth fund, for $8.1 billion. The portfolio, which spans 26 U.S. markets, including Chicago, is 91% leased, according to Global Logistic.

Ming Z. Mei, GLP's CEO, says the acquisition, which represented a significant discount to replacement cost, establishes "immediate scale in the US" for his company, along with "a strong platform for future growth. It is consistent with our strategy to operate in the best markets globally and to grow our fund management platform. Given the quality and the strong market fundamentals, we are confident that we can increase the lease ratio and capture positive leasing spreads in the near future. The strong existing US team which joins GLP further strengthens our team."

When GLP and GIC, Singapore's sovereign wealth fund, announced their acquisition this past December, Tia Miyamoto, regional head, Americas, GIC Real Estate, said the two companies bought the IndCor platform because it's "an attractive point in the recovering US industrial market cycle. As a long-term investor, we believe this investment will achieve stable income growth and will allow us to add value over the long run." GIC will maintain a 45% stake in the portfolio.

For more news and information visit Blumberg Capital Partners.

Lincoln Square Expansion's 24hr Pour

The building of Bellevue's Lincoln Square Expansion project hits the ground this weekend with a continuous pour of 13,690 yard of concrete for 24 hours to form the structural base for a new 41-story tower. "This massive mat of concrete and rebar is the foundation for what will become Bellevue's premier luxury hotel-residential tower," said Michael Chaplin, principal at Sclater Architects, the lead architect for the 1.5 million-square-foot, mixed-use Lincoln Square Expansion project. "In coming months, Bellevue residents will witness this tower and an adjacent office tower climb upward into the Bellevue skyline."

The concrete and rebar structure that will take shape Feb. 28 will anchor the 450-foot tower and play a critical structural role in supporting the cast-in-place concrete and steel structure. After removing more than 485,000 square feet of earth over the past year, workers recently installed more than 3 million pounds of rebar in the construction pit located at the corner of NE 4th Street and Bellevue Way.

The Lincoln Square portion of the expansion, located between NE 4th and NE 6th on Bellevue Way in Bellevue, Washington, includes 700,000 sq. ft. of Class A Premier Office space, 177,000 sq. ft. of retail, dining and entertainment space along with a 244 room luxury boutique hotel and 250 luxury high-rise rental residences with unequalled views.

Construction began last year with the 1.5 million sq. ft. expansion of Lincoln Square, which will begin opening in 2016, and will be followed with an additional half million sq. ft. expansion to its popular Bellevue Square shopping center. Kemper Development Company's mixed-use expansion will enhance downtown Bellevue's bustling urban environment, ensuring that Seattle's Eastside tech industry and The Bellevue Collection continue to grow in tandem.

For more news and information visit Blumberg Capital Partners.

Blumberg in the News

New Dehli TV's Panel Discussion with Philip Blumberg:

Blumberg in the News

Blumberg Grain was featured in a Miami Today article titled "Gables firm, Egypt partner for grain security" that looks into the company's progress in Africa and continued development of grain storage facilities to reduce post-harvest loss. An excerpt follows:

The company, which signed a contract with the Egyptian government late last year, is currently developing 93 wheat storage facilities across Egypt and expects the first few to be completed by the end of April, said David Blumberg, CEO of Blumberg Grain-West Africa.

He told Miami Today the facilities will process 3.7 million tons of wheat annually and store 750,000 tons, saving Egypt about $200 million a year.

"Post-harvest wheat loss in emerging markets is the primary problem for governments to solve," Mr. Blumberg said. "The loss, between harvest and first sale, is about 50% and due mainly to the lack of storage containers."

That's the ultimate goal of the Blumberg Grain project: to support the Egyptian government in recovering crops lost to post-harvest fatality.

Egypt is the world's largest importer of wheat and Africa's largest producer. However, there are numerous threats to grain in Egypt and other emerging countries, including pest attacks, rot, and theft – or what is referred to in the industry as "leakage." This leakage is often distributed to thieves' friends and family who sell the wheat on the black market.

Currently, Mr. Blumberg said, Egypt's wheat is stored in open-air storage facilities called shounas. He explained the wheat is received from farmers in bags and then stacked in piles, thus exposed to the sun and elements.

"There's a high likelihood that it will go bad due to the weather," Mr. Blumberg said. "The Egyptian pigeon is the worst pest and responsible for about 20% of the loss."

To read the full article, click here. For more news and information visit Blumberg Capital Partners.

CLT Buys James Royal Palm for $278M

In its 4Q results report released this week, Chesapeake Lodging Trust (CLT) announced that it had entered into a definitive agreement to acquire the 393-room James Royal Palm located in Miami Beach, Florida for a purchase price of $278 million. The acquisition is expected to close in the first quarter 2015, subject to customary closing conditions. The property at 1545 Collins Ave. in Miami Beach is still listed as being owned by RP Hotel Holdings, a company affiliated with Denver-based KSL Capital Partners, according to property records and a report by the South Florida Business Journal.

"We are very excited to announce our entrance into the highly desirable Miami South Beach market with the pending acquisition of The James Royal Palm," said James Francis, Chesapeake Lodging Trust's President and Chief Executive Officer, in a press release. "The Royal Palm, which recently underwent a comprehensive renovation, has an irreplaceable oceanfront location at the intersection of Collins Avenue and 15th Street. We believe the hotel has significant upside potential in both revenue and profitability and we are happy to partner with both HEI Hotels & Resorts, as the new hotel manager, and Starwood Hotels & Resorts, as the franchisor, on this project."

For more news and information visit Blumberg Capital Partners.

Hines JV Buys 4000 MacArthur

Hines, the international real estate firm, announced this week that along with a subsidiary of a fund managed by Oaktree Capital Management it had purchased 4000 MacArthur in Newport Beach, California. The sale price or terms of the deal for the two ten-story buildings were not disclosed, but it is known that a previous owner, Tishman Speyer Properties, was marketing the property in 2007 and expecting to fetch around $170 million; Tishman paid KBS about $134 million, or $365 per square foot, for the two office towers in 2006. In 2011 Emmes reportedly bought a $40 million junior portion of a $100 million mortgage tied to the property for 80 cents on the dollar and moved to foreclose on the property from Tishman, according to an Idea Hall article.

Hines Managing Director Ray Lawler, who leads the firm's Orange County development and investment office, said, "4000 MacArthur's location, access, visibility, quality improvements, and credit tenancy make this a particularly attractive acquisition for Hines and Oaktree. We expect the exceptional top floor vacancy, creative speculative suites, and prominent building top and monument signage will draw additional premier tenants to our project."

Oaktree Managing Director Ambrose Fisher added, "4000 MacArthur is our eleventh project with the Hines Orange County team. We now own 2.8 million square feet in Orange County that we have taken from 65 percent leased at acquisition to nearly 90 percent leased today. Globally, we have purchased 21 office deals in the US and the United Kingdom with Hines, totaling 8.2 million square feet. With the addition of 4000 MacArthur to our portfolio, we look forward to owning two of the best buildings in Orange County."

The property was roughly 91% leased at the time of sale to twelve tenants, including: Hyundai Capital America, M/A-COM Technology Solutions Holdings, Lifescript, and Premiere Business Centers. Hines has assumed on-site property management responsibilities on behalf of the joint venture.

For more news and information visit Blumberg Capital Partners.