Farbman Group Buys Chase Tower

An affiliate of Southfield, Michigan-based NAI Farbman Group, an investment group that operates commercial properties throughout the Midwest, has purchased the Chase Tower in downtown Milwaukee for $30.5 million. The office tower was sold by Breof Bank Midwest LLC, an affiliate of Toronto-based Brookfield Asset Management Inc.; "Breof" stands for Brookfield Real Estate Opportunity Fund. According to a Milwaukee Business Journal report, Farbman has been eying the property for several years now, which Brookfield placed on the market in October 2014.

The property was officially purchased by 111 W. Wisconsin Property Owner LLC, which is registered to NAI Farbman Group. Cushman & Wakefield's Chicago office marketed the building for Brookfield Asset Management, which bought the office tower in 2006 at the peak of the commercial real estate market for $45.8 million. The sale includes the connected parking structure at 543 N. Water St. Terms of the deal were not disclosed.

The new owners have plans to upgrade Chase Tower's first and second floor commons areas and adding amenities. "We're going to take its natural bones and make it better," said Andrew Farbman, chief executive officer of NAI Farbman Group. "There is a lot to draw from and the downtown location is fantastic. There is some access to public transportation now, and Milwaukee is growing in that area, plus the residential footprint in the Third and Fifth wards is something we're really fired up about."

Chase Tower, one of downtown Milwaukee's largest office buildings, was designed by Harrison & Abramovitz and completed in 1961. The 22-story office building was originally known as the Marine Plaza (which was the largest office building in Milwaukee until 1973 U.S. Bank Center build), and later as Bank One Plaza until their merger with Chase. The building was 86% leased at the time of sale, with major tenants including JPMorgan Chase, Infinity Healthcare, WUWM Public Radio and the law firm of O'Neil, Cannon, Hollman, DeJong & Laing.

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Meridian Picks Up International Place for $107M

Bethesda, MD-based Meridian Group has purchased International Place, a 12-story office building in Rosslyn, Virginia from Beacon Capital Partners, which paid $99 million for the property in 2007. According to a Commercial Real Estate direct report, Meridian purchased the building for $106.5 million, or $362.80 per square foot, in a sale that was brokered by Cushman & Wakefield. CBRE's Malcolm Schweiker and Erik McLaughlin handled leasing prior to the sale; Meridian did not disclose future leasing plans, but did indicate it would continue property improvements.

"International Place is in an ideal location at the base of Central Place, now under construction, so it's primed for positive growth," Gary Block, managing director and partner of The Meridian Group, said in a statement. "We are pleased that we were able to acquire an asset with such exceptional potential."

"International Place is strategically located in the heart of the dynamic Rosslyn market," said Bill Collins, Cushman & Wakefield Vice Chairman. "Rosslyn is quickly transforming itself into a world class city with the delivery of Central Place across the street and the coattails of additional retail and residential development that will follow."

"This area is quickly evolving into a vibrant downtown," added Bruce Lane, executive vice president and co-founder of The Meridian Group. "It's an incredible transformation, and we're excited to be a part of it. [...] We have plans for a number of other improvements, including upgrades to the building's lobby and other common areas."

The 12-story office building at 1735 Lynn Street underwent a $4.4 million round of improvements under Beacon, including the addition of a fitness center and conference center, and is LEED Gold and ENERGY STAR certified. Meridian said it plans to upgrade the building, which sits across the street from the Rosslyn Metro station, to improve the lobby and other common areas. Meridian's Gary Block said that the 90% occupied asset is an "older, Class B building" in an "A-plus location."

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GSA Picks Site for new FBI Complex in VA

The General Services Administration (GSA) Mid-Atlantic Region announced that it has selected and purchased approximately 60 acres of land for the site of the FBI's Central Records Complex (CRC) in Winchester/Frederick County, Virginia. The federal agency paid $4.75 million for a site in Frederick County, Virginia off U.S. 50 where it plans to build a $109 million facility where more than 440 employees would work, according to a Virginia Business report. The purchase and development plan is part of the agency's strategy to condense the bureau's vast records repositories into one site.

"The centralization of FBI records consolidates records from 265 current locations into a single facility," said Joanna Rosato, Regional Commissioner of GSA's Public Buildings Service in the Mid-Atlantic Region, in a press release. "The CRC will provide the infrastructure and technology for the FBI to continue to digitize records on demand."

The site at 2117 Millwood Pike, known as Arcadia, will support construction of approximately 256,000 Gross Square Feet facility, including a secure perimeter, visitor screening center and truck screening facility, guard booth, and surface parking lot. The new facility will be National Archives and Records Administration-compliant secured, with environmentally conditioned, fire-protected space that will provide records storage combined with material handling and operational support areas. The FBI said it digitizes at least 20 million pages per year to make them searchable and CRC will house both infrastructure and technology for the bureau to carry out the digitization effort.

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F4 Transbay Locks Down Last Super-Tall Building Site

F4 Transbay Partners LLC announced this week that it has closed on the acquisition of Transbay Parcel F from the Transbay Joint Powers Authority (TJPA), securing the last remaining site available for development of a super-tall building in downtown San Francisco. F4 Transbay Partners, a joint venture between Hines, Urban Pacific Development, Broad Street Principal Investments and Goldman Sachs, paid $175 million for the site on Howard Street, between First and Second streets, where it plans to build a 60-story, 750-foot-tall, mixed-use tower containing office space, a luxury hotel and residential units.

"With the sale of Parcel F, we will have sold more than $660 million worth of land to fund construction of the Transit Center," said Maria Ayerdi-Kaplan, executive director of the Transbay Joint Powers Authority. "The land sold for private development will also generate more than $1 billion in tax increment to fund the Transit Center." With the Parcel F sale, TJPA has the funding for Phase 1 of the Transbay project, having sold more than $660 million worth of land to fund construction of the Transit Center; according to a report from The Registry, private development will also generate more than $1 billion in property tax increment for the project.

F4 Transbay Partners also received an extra $15 million for the site because it was able to acquire a contiguous piece of privately owned land at 540 Howard Street, referred to as Block 4. "Our vision for Parcel F and Block 4 will create core located transit-oriented Class A office space, hotel rooms, and a substantial supply of affordable housing in the most dense and dynamic neighborhood in San Francisco. The success of our proposal would not have been possible without the combined efforts of F4, the TJPA, the OCII and the City,” Hines Senior Managing Director Cameron Falconer said in a press release.

"We are pleased to have this opportunity to develop one of the key buildings in the dynamic Transbay Project area,” added Mike Kriozere, Principal of Urban Pacific. "What we create will be an asset to this vibrant neighborhood, and we look forward to enhancing San Francisco and its skyline with our plans for a mixed-use tower on Parcel F."

F4 Transbay Partners has announced the project will be designed by Pelli Clarke Pelli Architects in partnership with the local office of HKS Architects, Inc., who will act as architect of record.

For more news and information visit Bluberg Partners.

Scottsdale Perimeter Center Portfolio Sold for $122M

Desert Troon Companies, a Scottsdale, Arizona-based real estate development firm, has sold a portfolio of five Class-A office buildings in Scottsdale's Perimeter Center for $122 million, or $191 per square foot. The portfolio was purchased by a joint venture between Phoenix-based Wentworth Property Co. and NY-based Northwood Investors with representation from Cushman & Wakefield in Phoenix, which will handle leasing for the properties. According to a press release, the acquisition was partially funded by an $80 million loan provided by Western Alliance Bank.

"As one of the premiere office portfolios in the state, it has been Desert Troon Companies' privilege to manage this standout portfolio with our partners," said Daniel Smith, CEO of Desert Troon Companies. "Desert Troon Companies used this strategic disposition of assets to continue its targeted value add acquisition strategy." The properties in the portfolio include:

Perimeter Gateway I, a 228,147-square-foot office compound at 8667 and 8701 E. Hartford Drive;
Perimeter Gateway II, an 80,040-square-foot office building at 8777 E. Hartford Drive;
Perimeter Gateway V, a 65,848-square-foot office at 8665 E. Hartford Drive;
Perimeter Gateway III, a 84,237-square-foot office at 8660 E. Hartford Drive; and
Terra Verde, a 180,445-square-foot office building at 16767 N. Perimeter Drive

The Wentworth/Northwood venture said it plans to make major improvements to the Perimeter Gateway portfolio, including the addition of two parking structures, remodeling lobbies and common areas, and adding cafés and a fitness center. The venture will also convert 162,000 square feet of existing office space in all five Perimeter Center buildings to spec suites, with the currently vacant space to be transformed into creative office space with open ceilings and modern finishes. A portion of the Western Alliance Bank loan will be used for some of the planned improvements. "This portfolio offered optimal location, so with our plans to remodel common areas, add amenities and build-out spec suites we are confident that the available space in the buildings will attract considerable interest from new tenants and successfully lease up," explained Jim Wentworth, Jr., principal with Wentworth Property Co.

For more news and information visit Blumberg Partners.

Cole Makes Largest Industrial Deal in Tampa Bay

Cole Office & Industrial REIT (CCIT II), Inc., a Phoenix-based public, non-listed REIT formed in 2013, has purchased a 1.1-million-square-foot fulfillment center in Florida for $103.6 million, marking the largest industrial property sale in Tampa Bay history in terms of both size and value, according to Cushman & Wakefield data. The massive fulfillment center at 3350 Laurel Ridge Avenue in Ruskin, Florida was sold by San Antonio-based USAA Real Estate Co., which bought the land in 2013 from Minneapolis-based Ryan Companies U.S. Inc. for $14.63 million to develop the warehouse. Terms of the sale were not disclosed.

"The property's state-of-the-art features, outstanding location and limited competition made this an exceptional investment opportunity," said Mike Davis of Cushman & Wakefield, which represented the seller, USAA Real Estate Co. "We believe that it truly is the highest-quality industrial building in Central Florida." in 2013, county commissioners voted to waive half of Amazon’s property tax bill for the first seven years, or about $6.4 million in total, Tampa Bay Times reported.

USAA Real Estate Co., which works with Amazon in developing its distribution centers, signed a long-term lease with the internet giant for the warehouse that's responsible for picking, packing and shipping items for most orders to Florida, and created 2,500 new jobs in Ruskin. Since the Ruskin Amazon facility opened on Sept. 17, 2014, it has more than doubled its workforce, from 1,000 full-time employees to more than 2,500, said Chris Monnot, the general manager. A renovation of the center, which is the size equivalent of more than 28 football fields, was completed in October 2015. That project added new levels of work space, more conveyors and workstations, and made it larger in terms of cubic square footage than Amazon's other Florida facility in Lakeland.

For more news and information visit Blumberg Partners.

JV Sells $190M Office Project In Denver to Invesco

Denver-based developer East West Partners and a controlled affiliate of Starwood Capital Group announced the sale of an office project in Denver's Union Station neighborhood to Invesco Real Estate. According to a Denver Post article, East West Partners will stay on in its role as developer of the $190 million project, and Invesco ultimately will own the completed office tower, which broke ground last week. Terms of the deal and representation were not disclosed, but records show that Invesco paid $18 million.

"This is a unique opportunity for all of the parties involved," said Chris Frampton, Managing Partner of East West Partners. "The building is 81% leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition. It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate."

"We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut," added Dan Schwaegler, Senior Vice President in the Asset Management Group at Starwood Capital Group. "Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area, and we look forward to watching the city's continued emergence as one of the most dynamic metropolitan areas in the United States."

16 Chestnut will be a 19 story building with above grade parking incorporated into the structure, anchoring the fourth and final corner of the Millennium Bridge. The architect for the project is Gensler, while BuildMark will provide construction management services and Saunders Construction will serve as general contractor.

For more news and information visit Blumberg Partners.