Realty News Report
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Lantana Media Campus Backing $85 Million Loan for Lionstone SANTA MONICA, Calif. – Marking its fourth month as Lantana Media Campus' owner, Houston-based Lionstone Group has secured an $85 million permanent loan for the 462,429-sf, class A office campus. Holliday Fenoglio Fowler LP associate director Colby Mueck, managing director Mark Wintner and executive managing director Scott Galloway arranged the fixed-rate financing for Lionstone through Cornerstone Real Estate Advisers of Hartford, Conn. As previously reported by Realty News Report, Lionstone acquired the campus in December 2009 from Los Angeles-based Maguire Properties Inc. The five-building campus is set on 12 acres along West Olympic Boulevard in L.A.'s Westside market. "The Lantana Media Campus is positioned in the heart of the media and post-production entertainment world and has historically exhibited strong occupancy and cash flow," Mueck said. "The acquisition complements Lionstone's portfolio in the submarket which now exceeds 650,000 sf." ............................... NAI Daus Buys Property Management Firm CLEVELAND, Ohio – NAI Daus and its affiliate, BPS Mgmt. Inc., have acquired ASW Properties Ltd., an Akron, Ohio-based property management and investment firm. In a press release, BPS Mgmt. said the acquired company's investment division is now one of its largest clients. The company provides property management for general office, industrial, retail and student housing for private owners, institutions and lenders. "This key acquisition of ASW's property management assets is in-line with our mission and real estate service offerings," said Bob Brehmer, managing partner of Cleveland-based NAI Daus and senior vice president of BPS Mgmt. "We're now able to offer our existing and new clients additional property management services, particularly those pertaining to maintenance issues and emergency responses." With the closing, NAI Daus jump-started its search for BPS Mgmt.'s new office in Akron, aligning with NAI Cummins in Akron for the space hunt. The plan is to relocate the ASW team in late 2010. ............................... Woodgrain Distribution Takes 160,440 SF NORCROSS, Ga. – In a long-term commitment, Woodgrain Distribution has leased 160,440 sf for a regional distribution center in northeast Atlanta. The deal filled the last remaining space at 6280 Best Friend Rd., owned by Denver-based DCT Industrial Trust. The Grubb & Ellis Co. team of Dave Watson, Darren Ross and Nick Faber represented DCT Industrial. Tommy Hiles with Bull Realty represented the tenant. "We built a strong relationship together during negotiations resulting in an agreement meeting Woodgrain's long-term objectives providing them with an improved operating facility," said John Tugman, vice president and market representative for DCT Industrial. ............................... $105.4 Million Loan Pool Lures 18 Buyers to Table CHICAGO – A special servicer and money-center banks has sold two loan pools totaling $105.4 million. The packaged play involves 95 loans in 25 states. Holliday Fenoglio Fowler LP managing director Bill Mitchell and senior managing director Stuart Salins in Chicago represented the sellers. Loan pools typically are offered in bulk or a portfolio basis, but HFF arranged sales that allowed strategic buyers from its investment sales database to "aggressively bid on individual assets." As a result, more than 600 confidentiality agreements rolled in, with the assets sold to 18 separate local and regional buyers in 26 transactions. "In all, HFF's unique approach netted 20 to 25 percent more in sales proceeds with fewer kick-out than had HFF sold the loans in aggregate to traditional large-portfolio bidders," Mitchell said. ............................... Penn National Places Contract On 210-Acre Beulah Park GROVE CITY, Ohio – Penn National Gaming is eyeing a second quarter purchase of the 210-acre Beulah Park, Ohio's oldest thoroughbred racing facility from Heartland Jockey Club Ltd. Beulah Park, marking its 87th year in operation, is located along the Interstate 270 Beltway outside Columbus. The asset features a grandstand, outdoor paddock, clubhouse lounge and four restaurants. The sale is subject to a 45-day due diligence period and approval by the Ohio State Racing Commission. When the deal's done, Penn National of Wyomissing, Pa. will own seven pari-mutuel facilities, more than any other gaming operator in the states. "With ownership of Raceway Park in Toledo, this transaction will provide us another opportunity to benefit from the possible legalization of VLTs at the state's seven racetracks," said Peter M. Carlino, Penn National's CEO. "We look forward to working with the local horsemen and the Ohio State Racing Commission to continue delivering both racing entertainment and a wide variety of summer attractions at Beulah Park." ............................... Florida Company Buys Best Buy's 441,664-SF Distribution Center ARDMORE, Okla. – Looking to consolidate operations, Flanders Precisionaire Inc. has paid nearly $7 million to acquire a 441,664-sf distribution center formerly occupied by Best Buy Inc. Minneapolis-based Best Buy built a new center in the city after outgrowing the nine-year-old building on 35 acres at 3500 Best Buy Way in the New Horizons Industrial Park. Trey Fricke and Reid Bassinger with Lee & Associates DFW represented the seller of record, Ardmore Business Park LLC, in the sale to the St. Petersburg, Fla.-based buyer. "Consolidations are active in the current market," Fricke said. "Companies can save money by reducing overall footprint while maximizing the use of a new facility's layout." ............................... 15-Story Tower Earns LEED Gold CHARLOTTE, N.C. – Trinity Capital Advisors of North Carolina has been accorded a LEED-CS Gold for its new 365,000-sf office tower in Charlotte's Third Ward. The 15-story building at 440 S. Church St. delivered in December 2009. Atlanta-based Epsten Group Inc. was the project's LEED consultant. "Originally targeted for Silver Certification under LEED-CS, we were excited and proud to learn that our efforts resulted in the higher LEED Gold certification," said Dagmar Epsten, founder and president of the Epsten Group. She added that the building's design will save nearly 18 percent on annual energy bills in comparison to a typical office building. Each floor has electrical meters to allow businesses to track energy usage plus each tenant is being provided with a list of guidelines to optimize the building's efficiency. ............................... Sold: New Jersey Office Building MORRISTON, N.J. – Penobscot Management LLC of Teaneck, N.J., has acquired a 16,500-sf office building on Morristown's historic green from Bank Street Investment Partnership. Jeffrey J. Oram, director of Marcus & Millichap Real Estate Investment Services, represented the Newton, Mass.-based seller of 2-8 Washington St., which included a surface lot with 16 parking spaces. The property is situated within walking distance of the train station, the downtown and community theater. ............................... Newburg & Co. Finds New HQ Space WALTHAM, Mass. – Newburg & Co. LLP will relocate its headquarters office in September to Waltham Woods Corporate Center from Wellesley, Mass. The full-service CPA and financial management firm is moving into 11,520 sf of second-floor space at 890 Winter St., a four-story, 180,000-sf building owned by ING Clarion Partners. Alex Dauria and Matt Malatesta with Jones Lang LaSalle in Boston represented the tenant in its space search and lease negotiations. Jay Nugent of Richards Barry Joyce & Partners negotiated on behalf of the New York-based owner. "Our entire firm is really excited about our new office space," said Michael J. Breton, a Newburg & Co. partner. "ING and their management have been a pleasure to work with and we are looking forward to a long relationship." Waltham Woods Corporate Center's tenant roster includes Microsoft, Atlas Ventures and Duke Energy. "The project has a history of landing first class tenants seeking first class office space in one of Greater Boston's most beautiful settings," said Jane Williams, senior vice president and asset manager for ING Clarion. "The addition of Newburg to the park is terrific one." ............................... Oceanfront Land Sells in 16 Days VENICE, Calif. – A local buyer has wasted no time dickering over an opportunity to gain control of five oceanfront lots, paying $325.91 per sf in an all-cash deal that closed in 16 business days. The sale is touted as one of the highest per sf trades in several years in the city. Hero Finance Ltd. grabbed title to developable mixed-use land at 305-309 S. Ocean Front Walk from a California-based bank. The land is now used as a parking lot, but the deal included permitted plans for five condominiums and four retail spaces. Brent Sprenkle and Robin D. Ossenbeck of the West Los Angeles office of Hendricks & Partners reported closing the fastest all-cash list price sale in the bank's history. The listing hit the market Jan. 29 and closed in 16 business days. ............................... Sold: 50,157-SF Industrial Net Lease WILLOWBROOK, Ill. – CenterPoint Properties has bought a 50,157-sf office/warehouse leased for the long term to Trane Co. A subsidiary of Prime Group Realty Trust sold the 12-year-old build-to-suit at 7100 Madison for $4.3 million, free and clear of debt. Holliday Fenoglio Fowler LP managing directors Jaime Fink and Jeffrey Bramson and director Kenneth Glomb led the investment sales team on behalf of the seller. Trane's lease runs through December 2015, according to HFF. The building sits on 4.5 acres close to Interstates 55 and 294, roughly 20 miles southwest of downtown Chicago. ............................... New Chapter Begins for 240-Key Blue DORAL, Fla. – Turning over a new leaf for a 240-room condo hotel property, ING Clarion Partners has re-branded the luxury asset to the Hyatt Miami at The Blue. The rejuvenation plan includes adding Davidson Hotel Co. as the property's new operator. The management pact is the first one between Davidson of Memphis and New York-based ING Clarion. The 17-acre resort located minutes from Miami International Airport. There are 16 hotel suites in each of the 15 three-story villas. Units range from 700 sf to more than 2,000 sf.ING Clarion Development Ventures II is the owner of record. "This luxury condo hotel has already become the premier choice for the hundreds of international corporations headquartered in Doral, thanks to superior access to both the airport and world-class golf. Recent events in Miami, like Art Basel and the Super Bowl, have filled our hotel with vacationers from around the world," said Doug Bowen, ING Clarion managing director and CDV II portfolio manager. The hotel features a signature restaurant, the 5300 Chop House, a fitness center, full-service spa and heated swimming pool with a sundeck overlooking the golf course. "This is an extraordinary resort hotel, a niche where we have strong operating experience," said Patrick F. Lupsha, Davidson's COO, who said the plan calls for raising public awareness about the resort. Davidson also will be overseeing the condo association and integration of the Hyatt Vacation Club. ............................... NHP Assuming $105 Million Of Debt for Medical Portfolio NEWPORT BEACH, Calif. – Nationwide Health Properties Inc. (NHP) has assumed $105 million of loans to secure a five-building portfolio in California from Pacific Medical Buildings LLC. The California-based REIT has picked up partnership interests ranging from 55 percent to 71 percent in the buildings. In Mission Viejo, NHP is joint venturing with the Mission Hospital Regional Medical Center on a 140,000-sf building, paying $67.3 million. The investment breaks down to $48.1 million of debt, $14.2 million of cash and $5 million of limited partnership interest. In a joint venture with physicians, the 130,000-sf St. Joseph Hospital in Orange went for $62.3 million. The breakdown is $50.2 million of debt, $8.1 million of cash and $4 million of LP interest. A JV with Pac Med is rolling a 190,000-sf building in Pasadena to NHP, which contributed $13.5 million of cash to the JV and provided a $56.5 million mortgage to make the close. NHP scooped up 71 percent interest in the asset, with rights for a full buyout if certain conditions are met. Two medical buildings with 130,000 sf in San Bernadino were acquired for $2.6 million in cash and a $6.2 million loan assumption. PMP Real Estate Services, a 50-50 joint venture between NHP and Pac Med, will continue to manage the properties. ............................... DCT Industrial Leases 205,000 SF CINCINNATI, Ohio – Denver-based DCT Industrial has inked three leases, totaling 205,000 sf, in Greater Cincinnati. The deal stack includes the first tenant for the newly developed Port Union Commerce Park in Butler County. EPAC Technologies signed a 10-year lease for 57,400 sf in Port Union Commerce Park, a 100-acre development with 840,000 sf in two buildings ready for occupancy. The park can accommodate users from 44,800 sf to 1.68 million sf. DCT's New Buffington distribution center in Florence, Ky., landed a 126,480-sf Fortune 100 company as a tenant. The deal fully stabilized the 448,945-sf, two-building development. Also, Phoenix International Freight Services took 21,334 sf in Olympic Business Center in Erlanger, Ky. The 261,384-sf, three-building project also reached 100 percent occupancy with the deal. Mike Lowe and Doug Whitten with CB Richard Ellis represented DCT Industrial in the EPAC lease, which had Chuck McCosh of Miller Valentine Realty as its broker. The Fortune 100 company was represented by Michael Daly, Grubb & Ellis/West Shell Commercial and Phoenix International Freight Services was represented by Brian Leonard of Jones Lang LaSalle. ............................... Jones Lang LaSalle Named 2010 Energy Star Partner CHICAGO – The U.S. Environmental Protection Agency has named Jones Lang LaSalle to its 2010 roster of Energy Star Partners, marking the 12th year for the Chicago-based firm's participation in the program. The EPA's annual awards will be presented March 18 in Washington, D.C. "Jones Lang LaSalle is leading the fight against climate change through greater energy efficiency," said Gina McCarthy, EPA assistant administrator for air and radiation. "Jones Lang LaSalle's robust energy management program is a model for others and affirms that energy efficiency is our most cost-effective climate strategy." JLL's accomplishments include attaining the Energy Star label at 90 properties with more than 34 million sf. It's also secured 100 percent participation in its investor-owned and retail mall portfolios. "Jones Lang LaSalle is committed to continually raising the bar on energy efficiency and carbon reduction in buildings, and our partnership with Energy Star is central to our ability to measure our progress and identify strategies that lead to improvement," said Dan Probst, chairman of energy and sustainability services at Jones Lang LaSalle. ............................... 70 Buildings Earn LEED EB LOS ANGELES – CB Richard Ellis Group Inc. has secured LEED EB certification for 70 buildings, totaling 29 million sf in the U.S. The high-profile properties on the list are Lincoln Plaza in Dallas, One Beacon in Boston, 2000 Avenue of the Stars in Los Angeles and Accenture Tower in Minneapolis. "We could not be more proud of CBRE's ever-growing portfolio of LEED-certified projects. What better way to tackle our collective environmental challenges head-on than to start by retrofitting our existing building stock, ensuring better use of energy and fewer impacts to our natural resources," said Rick Fedrizzi, president, CEO and founding chair of the U.S. Green Building Council. The 70 buildings represent 50 projects owned by 22 investor groups. In addition, CBRE is seeking certification for another 59 projects, representing 100 buildings and 40 million sf. Those buildings are expected to gain certification this year. According to CBRE, it manages nearly 13 percent of all LEED-EB certified properties in the U.S. ............................... $23.5 Million Wins PA Shopping Center ROYERSFORD, Pa. – OLP Lakeview LP has paid $23.5 million or $121 per sf for the 194,541-sf Lakeview Shopping Centre. The acquisition from Reitnour Investment Properties LP closed at a 7.7 percent cap rate. Brad Nathanson, vice president of investments in Philadelphia for Marcus & Millichap Real Estate Investment Services, represented the Malvern, Pa.-based seller, which had more than 25 offers on the 30-acre center at 947 S. Township Line Rd. "With attractive assumable debt in place, we had to target a buyer that could meet the demands of the lender. OLP Lakeview LLC met the challenge and performed," Nathanson said. According to the broker, more than 75 percent of the center's tenants own their buildings. The center's roster includes KFC, Marshalls, TD Bank and Wawa. "A majority of the tenants are credit worthy and on below-market ground leases with attractive rental increases every five years," Nathanson added. The property sits 32 miles northwest of Philadelphia at an interchange ramp of Route 422. ............................... JLL Overseeing $7 Million Project BOSTON – Boston University has seated Jones Lang LaSalle as the construction manager for a four-floor build-out valued at $7 million. The contract spans 45,000 sf at the Biochemistry Department's Breast Cancer Research Center, Amyloid Research Center and Cancer Center within the Conti Biomedical Research Center. Work begins this month, with occupancy penciled for October. Steven Wasersug is JLL's project executive for the university build-out. Dana Griffin is senior construction manager; Jeff Burke, superintendent; and Karl Ginand, head estimator. Architectural firm ADD Inc. and RDK Engineers round out the project team. ............................... 900,000 SF Solar Plan In Works PORTLAND, Ore. – ProLogis is undertaking a 900,000-sf solar project, spanning seven buildings in Portland and projected to generate 2.4 megawatts of power. The initiative is the second one of its type in the city for the Denver-based developer, which has signed an agreement with Portland General Electric (PGE) as part of the plan. An immediate construction start is planned, with completion resulting in the solar rooftop system being the largest one in the Pacific Northwest. "This increased interest from utilities and investors demonstrates that large-scale distributed generation is a real solution for today's renewable energy needs," said Drew Torbin, vice president of renewable energy for ProLogis. US Bank and PGE have formed SunWay 3 LLC to own and operate the system and to secure state and federal solar tax credits to help finance the project. All generated power will feed directly into PGE's electrical system. ........................................ CBRE Earns EPA Award LOS ANGELES – The U.S. Environmental Protection Agency has accorded a 2010 Energy Star Sustained Excellence Award to CB Richard Ellis Group Inc. for its continued leadership in energy efficiency. The annual EPA awards ceremony is slated for March 18 in Washington, D.C. CBRE became one of the first commercial real estate companies to declare a carbon neutral strategy in 2007 when it mandated all buildings with more than 50,000 sf under its management would be registered with Energy Star. Today, more than 1,400 CBRE-managed buildings participate in the program. "EPA is recognizing CBRE with our highest Energy Star award - the 2010 Sustained Excellence Award," said Gina McCarthy, EPA Assistant Administrator for Air and Radiation. "CBRE's continued leadership and commitment to energy efficiency is a testament to what we can accomplish to reduce greenhouse gas emissions and protect our global environment." ........................................ Starwood Property Trust, TIAA Ink $510 Million Loan Trade GREENWICH, Conn. – Before this week ends, Starwood Property Trust plans to spend $510 million to acquire a loan portfolio of performing commercial mortgages from TIAA-CREF. The collateral is 4.5 million sf of retail and office space in 10 states. The acquisition price includes accrued interest. The $503 million portfolio bears a fixed-rate interest for 18 senior first mortgage A-notes and two junior first mortgage B-notes. According to a press release, the average debt yield is 17.7 percent. The weighted average term on the loans is 1.7 years and weighted average coupon is 7.75 percent. All loans originated prior to 2003. The targeted levered return is 11 percent to 13 percent. Starwood's management team reported the portfolio is 96 percent leased, with an expected tenant rollover of 5.7 percent and 5.2 percent in 2010 and 2011, respectively. The owners are primarily publicly traded companies and high-profile real estate private equity firms. "This is a very significant investment for our company," said Barry Sternlicht, CEO of Greenwich, Conn.-based Starwood Property Trust. "Almost 20 percent of this portfolio will mature within one year and as such these assets are an extremely attractive alternative for cash. They also can be modified, extended or rolled into new term debt and can be levered short term if, necessary." Since August 2009, Starwood has deployed nearly $800 million. ........................................ Healthcare Trust Poised For $45.7 Million Buy EVANSVILLE, Ind. – Healthcare Trust of America Inc. has placed a $45.7 million purchase contract on the 260,500-sf Deaconess Clinic, a five-building medical office portfolio fully leased to 110 primary care and specialty physicians. The buildings are located on or near campuses of the 365-bed Deaconess Hospital and 116-bed Deaconess Gateway Hospital. "We are very excited about being selected and look forward to the opportunity to work with such a strong health system," said Mark D. Engstrom, executive vice president of acquisitions for the Scottsdale, Ariz.-based investment group. "This acquisition is a reflection of our strategy to acquire medical office buildings occupied by healthcare providers who are leaders in their local market." ........................................ Sold: Downtown Mixed-Use Buildings HASBROUCK HEIGHTS, N.J. – A third-generation owner has parted with a pair of mixed-use buildings located along the boulevard in downtown Hasbrouck Heights. The 6,000 sf of commercial space contains six apartments, four offices and four retail spaces. One building is fully leased and the other, 25 percent occupied. The addresses weren't available by press time. David E. Thurston, a New Jersey director for Marcus & Millichap Real Estate Investment Services, and investment specialist Brian Schifilliti marketed the properties for the seller, whose family had owned them for more than 90 years. Attorney Ralph Chandless of Hasbrouck Heights represented the seller and attorney Paul Zelenty of Graham Curtain in Morristown, N.J., represented the buyer, a national investor. "While it is still a challenging real estate market and overcoming obstacles in getting to the finish line is the order of the day," Thurston said. "Transactions are being completed and perseverance in working through those challenges with the parties makes the closing that much more gratifying." ........................................ Midtown Mall Sells for $6.37 Per SF COLUMBIA, S.C. – Century Capital Group LLC and Investment Property Exchange Services have acquired the 695,000-sf Midtown at Forest Acres from a lender. The locally based buyers paid slightly more than $4.42 million or $6.37 per sf for the deed. The mall, located at 3400 Forest Dr., is 48 percent leased. "The buyers of the property plan to stabilize the existing tenancy and bring mixed uses, beneficial to the community. At $6.37 per sf the buyers should be able to generate a strong return on their investment," said Bill Kohlhepp, senior associate in Fort Lauderdale for Marcus & Millichap Real Estate Investment Services. He and senior associate Bill Buford Jr. in the brokerage firm's Clinton, S.C., office represented the seller, Richland Joint Venture Group LLC. The buyers' broker was R. Leon Jones Realty of Columbia. The enclosed mall's roster includes Belk, Parisian, Bath and Body Works, Foot Locker, Barnes & Noble, Regal Cinemas and TGI Friday's. The mall is centrally located in the heart of the state capital at the corner of Forest Drive and Beltline Boulevard. ........................................ Investor Buys Redevelopment Site WOBURN, Mass. – A private investor has acquired a 5.6-acre redevelopment site that formerly housed Lannan Buick Pontiac.Nai Nann Ko bought 399 Washington St. from Argonaut Holdings. The property is located at exit 36 at the intersection of Route 128 and Interstate 93. Jim Koury, managing director of retail sales for Jones Lang LaSalle in Boston, and Nathaniel Heald, assistant vice president, marketed the property. "Argonaut took advantage of the strengthening market to realize aggressive pricing for the property. The transaction was also very beneficial for the buyer, who secured a long-term location at the intersection of two interstate highways," Koury said. ........................................ CBRE Takes First Place in 2009 Sales LOS ANGELES – Just-released statistics from 2009 sales shows CB Richard Ellis Group Inc. ranked first in the U.S. for sales exceeding $5 million, according to Real Capital Analytics. The RCA tally put CBRE at 15.4 percent market share with $7.8 billion of transaction values during a year that resulted in more than $51.9 billion of commercial sales in the nation. The findings showed CBRE led by 7.1 percentage points. "Market conditions change but the commitment of CBRE professionals to deliver superior market insight and unrivaled transaction execution for our clients is unwavering," said Gregory S. Vorwaller, CBRE investment properties president. The total excludes privatization activity. By sector, RCA found: • CBRE led the nation in industrial sales – $ 1.3 billion in sales for a market share of 16 percent, more than twice the nearest competitor. • CBRE's market share in multi-housing sales was 18.5 percent in 2009, with $2.7 billion in sales. • CBRE recorded the highest market share in retail: 8.6 percent for sales totaling $1 billion. ........................................ 360,000-SF Governor's Point Moves to Encore's Portfolio CINCINNATI – Dallas-based Encore Enterprises has tapped a $150 million equity fund to acquire the 360,000-sf Governor's Point in suburban Cincinnati. Encore Retail LLC's new portfolio piece consists of the 161,061-sf Governor's Point North and 198,940-sf Governor's Point South. The sister properties, developed in 1998 by Indianapolis-based Duke Realty Corp., are located at the intersection of Interstate 71 and Mason-Montgomery Road. Governor's Point North is anchored by a 128,747-sf Lowe's Home Improvement store while a 157,791-sf Biggs Supervalu supermarket is the drawing card for Governor's Point South. Connecting the complexes is a retail strip with a 24,049-sf Staples, Chipotle, Mattress Warehouse, UPS and T-Mobile stores. "The retail market segment represents a compelling area of new growth for our company and our acquisition of Governor's Point is representative of other opportunities we are evaluating around the country," said Dr. Bharat Sangani, chairman of Encore Enterprises. The acquisition is just the first of many that Encore Retail, led by Nic Barber, plans to complete this year. The Encore Opportunity Fund is a joint venture between Encore Enterprises and Encore Equities. "Given the area demographics and solid tenant base, the Governor's Point acquisition was especially appealing to our investors," said Donna Arp, president of Encore Equities. ........................................ Retail Center Brings $1.7 Million LAKELAND, Fla. – The 32,840-sf Northside Plaza has fetched $1.7 million in an exchange between in-state investors. Ron Schultz, an investment specialist in Tampa for Marcus & Millichap Real Estate Investment Services, marketed the center, situated at 2435 US Hwy. 98 North, for the local seller, who is planning to retire. Northside Plaza is nearly 100 percent leased, with its mix consisting of franchise and neighborhood retailers. "Most offers coming in locally were looking at stealing this deal in the low $1 million to $1.2 million price-point. I was able to find a buyer with a very different perceived market value which resulted in a much higher closing price," Schultz said. The buyer hails from Miami. The transaction closed within 45 days "at a current market record-breaking 8.8 percent current cap rate," Schultz added. "The upside to the buyer remained as many leases were not pushed to current market rents and pro-rata collections. The buyer plans on rolling up his sleeves and working one-on-one with each tenant, moving up rents as dictated in leases in place when achievable." ........................................ Hilton ReFi in NYC NEW YORK - Allied Advisors, LLC, serving as exclusive advisors to a major hotel REIT, has arranged the refinance of the outstanding debt on the 151‐room Hilton Garden Inn located in Tribeca, New York City.
........................................ Kimco Lands $14 Million Loan FEDERAL WAY, Wash. – Kimco Realty Corp. has secured a $14 million, fixed-rate loan, using the 200,126-sf Pavilions Center as collateral for the fresh capital. Holliday Fenoglio Fowler LP director Casey Davidson and managing director Robert Delitsky arranged the financing through one of HFF's life company correspondent lenders. Pavilions Center at 31217 Pacific Highway South is anchored by H-Mart, Barnes & Noble, Petco and Jo-Ann Fabrics. The New Hyde Park, N.Y.-based Kimco bought the asset in October 2000. The shopping center, built in 1996, is situated close to the Commons at Federal Way regional mall and 25 miles south of downtown Seattle. ........................................................................... AMD Global Plan Q1 Move CHELMSFORD, Mass. – AMD Global Telemedicine Inc. has leased 8,654 sf of office space for its New England headquarters location. The move-in will be completed before the first quarter ends. AMD Global has taken space on the first floor of the 70,800-sf, two-story building at 321 Billerica Rd. from 73 Princeton St. on the north side of town. "We made the decision to relocate looking to the future," said Steven Normandin, the local firm's president. "Our new location will serve as an ideal environment for us to continue our unprecedented growth and will serve to assist as we implement our future strategic plan." The Jones Lang LaSalle team of senior vice president Peter Richardson, assistant vice president Troy Coady and vice president Flory McCarthy represented the San Francisco-based owner, RREEF. The tenant representatives were Brian Tisbert, Matt Daniels and Chris Lawrence of Colliers Meredith & Grew. ........................................................................... Industrial Portfolio Changes Hands HOLLYWOOD, Fla. – A 12-property industrial portfolio, with 44,400 sf of rentable space, was sold for $1.81 million to a limited liability company from Coconut Creek, Fla. The local seller turned over the deed to the 64 warehouses with occupancy at 90 percent. The buildings are situated just north of Pembroke Rd. and east of State Hwy. 7. Ryan D. Nee, an associate in Marcus & Millichap Real Estate Investment Services' Fort Lauderdale office, arranged the sale. ........................................................................... New Tomaselli Firm Leads Tenant List in Irvine IRVINE, Calif. — The Irvine office of Hines, the international real estate firm, announced that 2211 Michelson, the 12-story office building located in the heart of the Irvine Business Complex, has signed five new tenants, for a total of 44,000 square feet. These leases bring the 266,605-square-foot building to 95 percent leased. The tenants are:
123 Acres in Hand for $400 Million Casino COLUMBUS, Ohio – As previously reported, Penn National Gaming Inc. has closed on the purchase of 123 acres at the former General Motors/Delphi Automotive plant in west Columbus. The dirt will be used to develop the $400 million Hollywood Casino Columbus. The gaming developer's new land is a brownfield site that was selected as an alternative location for the casino. Penn National has agreed to seek a state constitutional amendment to relocate the project to Delphi's former factory site. The issue goes before the voters May 4. "Closing on this property reflects our ongoing commitment to work closely with Central Ohio's business and community leaders on this relocation effort, which could, pending voter approval, result in hundreds of millions of private investment dollars for the West Side of Columbus, an area in need of an economic catalyst," said Eric Schippers, senior vice president for the Wyomissing, Pa.-based casino owner. The Delphi site replaces a 24-acre tract in Columbus' Arena District, which was authorized for development in a November 2009 constitutional amendment. Penn National said the Arena District land will be put up for sale if Ohio voters approve this May's constitutional amendment. Penn National hopes to open the 180,000-sf casino in the second half of 2012. The building will be outfitted with 4,000 slot machines, up to 100 table games and 25 poker tables plus supported by a 4,000-space parking garage and food, beverage and entertainment venues. ........................................................................... Retail Holding Draws $187 Per SF WINONA, Minn. – A 1031 exchange investor has bought a 10,000-sf retail center for $1.87 million or $187 per sf. The buyer of the fully leased Winona Square along Old Highway 61 hails from Bloomington, Minn., and the seller from La Crosse, Wis. "Contrary to popular opinion, this sale is proof that 1031 exchange capital is still available, and is still acquiring transactions across both geographic and product-type lines," said Solomon Poretsky, regional manager in Minnesota for Marcus & Millichap Real Estate Investment Services. The center is flanked by a Wal-Mart Supercenter and Target. Sean Doyle and Cory Villaume, associates in the Minneapolis office of Marcus & Millichap, represented the seller and buyer. ...........................................................................
Harbor Point Clears Hurdles For $145 Million Financing NEW YORK – A Connecticut-based developer has secured $145 million in financing for its smart growth project, Harbor Point, one of 25 developments worldwide to be accorded LEED-ND Gold certification by the U.S. Green Building Council. Building & Land Technology (BLT) has an 80-acre tract of waterfront land in Stamford, Conn. The South End acreage has been platted for 4,000 residential units, 400,000 sf of retail and restaurant space, 800,000 sf of office space, two hotels with 210,000 sf, a community school, 485-slip marina and more than 11 acres of parks, including a waterfront promenade. Stone & Youngberg, a financial services firm, is the sole underwriter of the financing, which included $16 million in special obligation Series 2010B Recovery Zone Economic Bonds. The federal program targets shovel-ready governmental purpose construction projects through the American Recovery and Reinvestment Act. Harbor Point is the first project in Connecticut to receive the funding. The project also is being funded with $129 million of tax-exempt special obligation Series 2010A revenue bonds. "Harbor Point is an important economic development project because of what it means to the city and state," said Gov. M. Jodi Rell. "Once complete, the Harbor Point mixed-use development will have transformed 80 acres of former industrial property into a green community, including housing, retail, office and other business space near mass transit options -- a shining example of responsible growth." According to Stone & Youngberg's Ramiro Albarran, managing director in the New York Public Finance Group, the $145 million is the largest award of its type since the credit crisis began. "With this financing in place, we are excited to increase the pace of development at Harbor Point and create jobs during this difficult economy," said Carl R. Kuehner, president and CEO of BLT. With a build-out plan for six million sf of mixed-use space, Harbor Point is slated to have five distinct neighborhoods. The project area already houses several major employers, including Pitney Bowes and Deloitte & Touche. In January 2012, Starwood Hotels & Resorts Worldwide Inc. plans to relocate its headquarters from White Plains, N.Y., into 250,000 sf of LEED-certified space. ......................................................................... Architectural Firm Signs Boston Lease BOSTON – Spagnolo Gisness & Associates Inc., one of New England's leading full-service architectural firms, will keep its studio in Boston's Financial District, renewing a 7,610-sf lease at 200 High St. Tom O'Regan, senior vice president for Jones Lang LaSalle, and associate Patrick Nugent represented the landlord, Two Hundred Mortgage Associates LP, an affiliate of the Davis Cos. FHO Partners' vice president Lauria Brennan and partner Peter Farnum negotiated on behalf of the tenant. "Our workforce has been key to our success and it was important to remain in a central location to ensure employee satisfaction and remain close to our clients, while allowing us an advantage in recruiting and retaining employees," said Al Spagnolo, principal of the architectural, interior design and planning firm. The six-story 200 High St., totaling 96,113 sf, is a historic office/retail building at the corner of High and Broad streets. It was built in 1860 by Chase & Sanborn as a tea storage facility. The building was renovated and expanded in 1990. ......................................................................... Lewis, Longman & Walker Plans Relocation, Inks 11-Year Lease WEST PALM BEACH, Fla. – Lewis, Longman & Walker PC will move in early March to Northbridge Centre, reserving the class A office space in the CBD with an 11-year lease for 15,742 sf. The law firm, with four offices in Florida, is taking all of the 15th floor and part of the 14th in the 21-story Northbridge Centre at 515 N. Flagler Dr. The 288,131-sf office building's occupancy has climbed to 64 percent with the new signing.Key to the win for Dallas-based Gaedeke Group LLC is the building's location – within walking distance of the Palm Beach County Judicial Center complex. The tower, with ocean views, has a tenant roster that's heavily weighted by law firms. "Our proximity to the courthouse has always been Northbridge Centre's drawing card," said Kirk Fetter, vice president of leasing for the Dallas-based owner, Gaedeke Group LLC, who brokered the deal. "We are honored that a prestigious law firm like Lewis, Longman & Walker has selected our building as its home."Laureen Hunter of Touchstone Webb Realty Co. in West Palm Beach, Fla., represented the tenant, who will gain nearly 3,000 sf of extra room with the move from 1700 Palm Beach Lakes Blvd. In addition to West Palm Beach, the 15-year-old law firm has offices in Bradenton, Jacksonville and Tallahassee. Lewis, Longman & Walker focuses its practice in the areas of environmental, governmental and administrative law. ......................................................................... Featured Property Pittsburgh Landmark Up for Sale PITTSBURGH – With investment circles attuned to Pittsburgh's renaissance, the owners of the 615,942-sf EQT Plaza have put their trophy on the market. The 32-story building at 625 Liberty Ave. is 96.2 percent leased, with EQT Corp. committed to 257,098 sf or 42 percent of the rentable space through September 2024. Holliday Fenoglio Fowler LP executive managing directors John Pelusi and Gerard Sansosti in Pittsburgh and managing directors Jeff Bramson and Jaime Fink in Chicago are marketing the high rise. "This is the premier address in Pittsburgh as evidenced by the property's high occupancy rate," Sansosti said. "The average lease term is an attractive 9.5 years making this an exceptionally stable office asset." According to HFF, 51 percent of the trophy office space is leased to investment-grade tenants. In addition to EQT's headquarters, the roster includes National Union Fire Insurance Co. of Pittsburgh, AON Services, Prudential Insurance Co. and AIG Claim Services. There is minimal near-term lease rollover on the roster. EQT Plaza, formerly Dominion Tower, is situated near the Golden Triangle's point, where the Allegheny and Monongahela rivers meet to form the Ohio River. The landmark high rise features a full-service health club, 5,170-sf conference center, underground parking garage and a Morton's of Chicago restaurant. In the past five years, the owner has invested nearly $3 million on upgrades, inside and out. The property operates on a 52-year ground rights lease with successive renewal options until 2124, with the owner offering 100 percent leasehold interest to qualified investors on an as-is basis. "The CBD is currently undergoing a dramatic renaissance and has become the nation's largest and most appealing location in which to live and do business," HFF said in the listing's executive summary. ......................................................................... Advent Software Takes 24,597 SF BOSTON – Advent Software Inc. has signed a full-floor lease for 24,597 sf of class A office space at 40 Broad St. for its new downtown office. The sixth-floor lease pushes the 225,000-sf 40 Broad St. to 85 percent occupancy for its Chicago-based owner, Transwestern Investment Co. Jones Lang LaSalle senior vice president Bradley McGill and former managing director William Collins negotiated the lease for the owner while CB Richard Ellis' Christopher Cuddy, senior vice president and partner, represented the San Francisco-based Advent Software, which is relocating from 70 Franklin St. Boston. "The building gives us a very central location that will support our continued growth plans in Boston. Its location, design and amenities will help us attract and retain talented staff to help drive our future success," said John Brennan, Advent's senior vice president of human resources. The boutique mid-rise building overlooks the Rose Kennedy Greenway in the heart of Boston's Financial District. ......................................................................... LCP Lands $6 Million Loan WHITE PLAINS, N.Y. – LCP Group LP has used 255 acres of ground leases in three states as collateral for a $6 million, fixed-rate permanent loan with a Texas-based life insurance company. Holliday Fenoglio Fowler LP managing director Mark West in Dallas arranged the 38-month loan for the White Plains, N.Y.-based borrower. The collateral is 86 acres at 555 Nestle Way in Breinigsville, Pa., near Allentown; 118 acres at 2909 Pleasant Center Rd. in Fort Wayne, Ind.; and 50.8 acres at 2 Nestle Way in Lathrop, Calif., near Stockton. ......................................................................... RAM Buys Industrial Building CHELMSFORD, Mass. – RAM Management Co. has acquired an 84,000-sf industrial building from New Boston Fund. "10 Industrial fits well into our current portfolio," said Brian Gagne, executive vice president for the Scarborough, Maine-based buyer. "It is a strategically located, five year old building that provides us strong tenancy and cash flow." Jones Lang LaSalle managing directors Scott Jamieson and Michael Smith and associate Rob Borden negotiated the sale of the single-story building, which is fully leased to the U.S. Department of Veterans Affairs. The structure was developed in 2004 for the VA, which recently expanded into all the available space. ......................................................................... Furman Becomes CBRE Affiliate GREENVILLE, S.C. – Upstate South Carolina's oldest full-service commercial real estate firm is re-branding itself as CB Richard Ellis/The Furman Co. The 120-year-old firm previously was affiliated with Grubb & Ellis Co. The new affiliate's sister companies will continue to operate and deliver services as the Furman Co., Development LLC; the Furman Co., Insurance Agency LLC; and the Furman Co., Investment Advisory Services LLC. The company's territory includes Greenville, Spartanburg, Anderson, Abbeville, Cherokee, Greenwood, Laurens, Oconee, Pickens and Union counties. "Everyone who knows us also knows that our mission is to provide the most sophisticated advisory services available. This affiliation will give our clients access to more markets and to the strongest and deepest array of commercial real estate services in the world," said Stephen P. Navarro, president of CB Richard Ellis|The Furman Co. Stephen B. Smith is executive vice president and managing principal of the CBRE affiliate, which has 37 professionals on its team. ......................................................................... Grubb & Ellis Affiliate Expands in South Carolina GREENVILLE, S.C. – Grubb & Ellis|Wilson Kibler has expanded its market to include Greenville, S.C., effective immediately. "Our relationship with Wilson Kibler has been a valuable asset in serving the needs of our clients with a presence in South Carolina," said Jim Jones, executive vice president for Grubb & Ellis' operations and COO. The affiliate, headquartered in Columbia, S.C., is one of the largest commercial real estate brokerage firms in the state. Founded in 1987, the company has been affiliated with Grubb & Ellis since 2001. ......................................................................... Retail Building Fetches $2.16 Million LITTLE EGG HARBOR, N.J. – The 9,168-sf Tuckerton Commons has brought $2.16 million for a North Carolina-based developer. Michael Lombardi, senior associate in New Jersey for Marcus & Millichap Real Estate Investment Services, marketed the retail property, landing a buyer from New Jersey for the fully leased asset. Built in 2007, Tuckerton Commons is occupied by West Marine, AT&T and Jersey Mike's. ......................................................................... Equity Shells Out $475 Million For Three Residential Towers MANHATTAN – Equity Residential has laid $475 million on the line for three residential towers with 910 apartments, 23,339 sf of retail space and 50,000 sf of parking space. The Chicago-based buyer has acquired two of the three properties and is working through the contract to close on the third. The price breaks down to $470,000 per unit or $545 per sf of rentable apartment space. According to a press release, the initial capitalization rate is 5.52 percent. Equity Residential has taken control of the 38-story River Tower in the Sutton Place neighborhood and 32-story 777 Sixth Ave. River Tower, built in 1982, has 323 apartments and a 36,000-sf parking garage while the other property, built in 2002, has 294 units and 10,281 sf of retail space. The buyer plans to acquire the third property, the 26-story Longacre House, by May 1 when the existing first mortgage is available for prepayment at par. The Midtown tower, built in 2000 at 305 W. 50th St. at Eighth Avenue, has 293 apartments, 13,058 sf of retail space and a 14,000-sf parking garage. The acquisition, being funded primarily from disposition proceeds, will boost Equity's New York portfolio to 7,320 apartments in 26 properties in the metro. "We are very pleased to add these premier properties, at prices well below replacement cost, to our New York portfolio," said David J. Neithercut, Equity Residential's president and CEO. "This transaction is yet another example of our ongoing strategy to add high-quality assets to our portfolio in core markets that position the company to benefit from improving apartment fundamentals." ......................................................................... JV Lands $48 Million Construction Loan BROOKLYN, N.Y. – Acadia Strategic Opportunity Fund II LLC and joint venture partner, P/A Associates, have secured a $48 million construction loan to develop the 256,783-sf Canarsie Plaza. Holliday Fenoglio Fowler LP senior managing director Mike Tepedino and director Steven Klein arranged the loan through M&T Bank and Capital One Bank. The under-construction shopping center, rising on a 14-acre tract at the corner of Remsen and Foster avenues, is slated for completion in November. Canarsie Plaza is preleased to BJ's Wholesale Club and a New York City department. About 44,000 sf has been reserved for local, regional and national tenants. "Brooklyn is in the midst of an overall urban renewal that continues to attract new residents and businesses," Klein said. "Canarsie Plaza will appeal to Brooklyn's large and dense consumer base." The development abuts the Brooklyn Terminal Market, a wholesale location for local vendors since 1942. The fund is managed by Acadia Realty Trust of White Plains, N.Y. P/A Associates is a private real estate development company that focuses on mixed-use commercial and industrial opportunities in metropolitan New York and New Jersey. ......................................................................... $45 Million Loan Clears BROOKLINE, Mass. – A limited liability company from Massachusetts has been cleared for a $45 million, first-mortgage loan from People's United Bank and Sovereign Bank. The collateral is a 155,896-sf, class A office building in Brookline Village. Holliday Fenoglio Fowler LP senior managing director Fred Wittmann and director Janet Krolman arranged the seven-year loan, a replacement for other debt and possible funding for a potential expansion at 10 Brookline Place West. The building is fully leased for the long term to the Dana-Farber Cancer Institute and New England Institute of Art. "HFF was able to secure an attractive loan that repaid the acquisition financing on the property and provided a construction facility for a potential expansion to the building for The New England Institute of Art," Wittmann said. The borrower is ND/CR 10 Brookline LLC, a partnership controlled by National Development and Charles Realty Investors. The building was acquired in early 2009. ......................................................................... $47.8 Million Takes BofA Landmark ST. LOUIS – A private investor from Los Angeles has paid $47.85 million for the 30-story Bank of America Plaza, a 749,857-sf landmark in downtown St. Louis. Geoff Tranchina and Scott Tiano, principals of Los Angeles-based Wilson Commercial Real Estate, represented the buyer of the 90 percent-leased trophy. "Although the property was previously on the market, we were able to bring an unsolicited offer to the seller that was acceptable to their executive team," Tranchina said. "In this environment, the most difficult aspect of getting an investment deal done is confidence with both parties. Buyers are concerned that the asset will be worth less in a week, and sellers are concerned that the property is being sold for too little." The high rise has unobstructed views of the Gateway Arch and Mississippi River. Its tenant roster includes PriceWaterhouseCoopers and Ralcorp Holdings. ......................................................................... Bank Sells 17-Story Century Plaza PHOENIX – Milwaukee-based M&I Bank has turned over the 17-story Century Plaza to Lexington Avenue LLP, a new buyer in metropolitan Phoenix. "After visiting the Phoenix area numerous times, we recognized the importance and the potential of the central Phoenix and mid-town area," said Rob Macdonald, managing partner of the locally based Lexington Avenue LLP. "We believe Century Plaza provides us with the best opportunity to enter the Phoenix urban real estate market with a project that has so many positive attributes and a superb location." The condominium high rise at One E. Lexington Ave. has views of Camelback Mountain and Piestewa Peak plus is positioned close to the Osborn light-rail station. According to a press release, the new owner's game plan is to reintroduce the high rise to the market, offering new amenity and incentive packages, finish-outs and lower pricing for the mix of one-, two- and three-bedroom units. The condos range from 734 sf to 1,974 sf. Lexington Avenue LLP's principals are based in Vancouver, B.C., and Seattle. The affiliate of Macdonald Development Corp. was formed to invest in the Arizona real estate market. ......................................................................... Warnick's New Charge: Reposition Montelucia PARADISE VALLEY, Ariz. – Just two weeks after taking the deed, Eurohypo AG has seated Warnick + Co. as asset manager of the 293-room Montelucia Resort. The $330 million resort opened in fall 2008. The asset at 4949 E. Lincoln Dr. includes 34 for-sale residential villas. "Effective asset management is even more critical in these troubled times," said Richard Warnick, president of Phoenix-based Warnick + Co. "Our role will be to help stabilize the Montelucia and help position it as one of the preeminent resorts in the highly competitive Phoenix/Scottsdale market. We also will oversee the sale of the unsold villa units and work with Eurohypo on the ultimate disposition of the resort through Eastdil Secured, its investment sale broker." The new asset manager has a portfolio of 20 properties in the U.S., Japan and South Korea, including the 1,000-room Sheraton Phoenix and 800-room Hilton Austin. Warnick said the company goal is to double its management portfolio in the next three years. "The next few years will be difficult, but there are solutions available," Warnick noted. "We've been there before and know how to protect assets and optimize cash flow and value under any set of circumstances." ......................................................................... CBRE Announces Leases HQ Global Workplaces LLC leased 23,985 sf of office space at 11951 Freedom Drive in Reston, VA from One Freedom Square LLC. Steve Rigby, Peter Danna, Baron Aldrine, and Mike Kay of CB Richard Ellis negotiated the lease on behalf of the tenant. HQ Global Workplaces LLC leased 17,000 sf of office space at 70 Walnut Street in Wellesley, MA from Newton Wellesley Executive Park. Steve Rigby, Peter Danna, Baron Aldrine, and Mike Kay of CB Richard Ellis negotiated the lease on behalf of the tenant. HQ Global Workplaces LLC leased 9,977 square feet of office space at 150 JFK Parkway in Short Hills, NJ from Mack-Cali Short Hills LLC. Steve Rigby, Peter Danna, Baron Aldrine, and Mike Kay of CB Richard Ellis negotiated the lease on behalf of the tenant. Concentra Health Services Inc leased 9,618 square feet of office space at 5855 Stapleton Drive North in Denver from First Industrial LP. John Woolsey, Warren Willey, Jordan Buis, and Searcy Ferguson of CB Richard Ellis negotiated the lease on behalf of the tenant. ......................................................................... A&B Buys One, Sells One HONOLULU – In back-to-back plays, A&B Properties Inc. has sold the 180,300-sf Mililani Shopping Center in Central Oahu for $50.3 million and deployed part of its gain into the $30.8 million purchase of the 216,400-sf Meadows on the Parkway Shopping Center in Boulder, Colo. A&B owned Mililani for eight years, resulting in a 39 percent increase in net rent and 66 percent increase in average tenant sales. Occupancy was 98 percent at sale time. Norbert M. Buelsing, president of the Honolulu-based A&B, credited the performance to marketing strategies to increase customer traffic and property improvements. The center was built in 1976 in a master-planned community. It is anchored by Foodland Supermarket, Ross Dress for Less, 24-Hour Fitness and a diverse tenant base of food, retail and professional services outlets. In Colorado, the 1031 exchange delivered a Safeway-anchored shopping center with tenants such as Michael's and Rite Aid. The purchase "reflects A&B's strategic objective of acquiring properties in prime markets with excellent potential for appreciation and growth," Buesling said. The eight-building Meadows, situated one mile from the University of Colorado, has seven retail buildings with 179,800 sf and a 36,600-sf office building. The 83 percent-leased Meadows was developed in 1989. ................................................................ Healthcare Trust Deploys $19.5 Million in Georgia ATLANTA – Healthcare Trust of America Inc. is buying 80,562 sf of medical office space in South Atlanta for $19.5 million. The 94 percent-leased portfolio is part of the Camp Creek Medical Center campus. The buildings were developed by Ackerman & Co. and the South Fulton Medical Center, a 338-bed hospital. "This is an underserved medical submarket and the Camp Creek Medical Center is designed to expand as demand grows," said Mark D. Engstrom, executive vice president of acquisitions for the Scottsdale, Ariz.-based buyer. ................................................................ Empty Office Building Sells for $212 Per SF
Located at 5996 SW 70th St., the building has 17,000 rentable sf. According to a press release, Larkin's administrators plan to use the location for hospital staff. Drew Kristol and Kirk Olson, senior associates in the Miami office of Marcus & Millichap Real Estate Investment Services, represented the bank. The brokerage firm's senior associate Greg Zeifman and associate Ben Silver, also in Miami, secured the buyer. "The office building was vacant and had been foreclosed by the lender. South Miami is one of the tightest and most sought after office markets in Miami-Dade. This property represents one of the largest sales of 2009 in South Miami," Silver said. ................................................................ Buyer Working $7.2 Million Plan LOS ANGELES – The Art of Living Foundation has paid $5.2 million for the 25,000-sf Second Church of Christ, completing the deal with a $2 million fund for capital expenditures. The building was constructed in 1910 on a 1.5-acre tract at 948 W. Adams Blvd. The buyer intends to use the Art of Living Center to provide humanitarian, personal empowerment and educational programs to the West Adams neighborhood. David Eitches of Los Angeles-based Charles Dunn Co. represented the foundation and the seller, WalCo LLC. ................................................................ Hersha Bags Four Management Pacts PHILADELPHIA – Jump-starting its 2010 plan, Hersha Hospitality Management Inc. plans to add four hotel properties to its management portfolio before February ends. The Philadelphia-based Hersha is working a three-year plan to double its management portfolio. It currently oversees 89 hotels. Hersha will act as management partner for the conversion and re-launch of a full-service, independent hotel in Manhattan's Financial District. The asset will fly the only Holiday Inn flag in the district when the conversion is done. Capstone Realty Group signed Hersha to manage the 200-room Fairfield Inn Atlantic City North, which underwent a renovation last year. Capstone acquired the holding via a loan purchase of the hotel's leasehold mortgage, according to a press release. In Bucks County, Pa., Hersha was signed by Pheasant Run Properties to oversee its new Homewood Suites by Hilton in Newtown. And in Princeton, N.J., American Properties Realty tapped Hersha to lead its 127-room Element by Westin. ................................................................ Behringer Harvard Repositions Atlanta Portfolio, Adds JLL ATLANTA – Armed with a repositioning plan, Behringer Harvard has completed two key pieces in its push for change in its Atlanta office portfolio. In addition to recapitalizing the 288,175-sf Ashford Perimeter at 4151 Ashford Dunwoody Rd., the Dallas-based owner also hired Jones Lang LaSalle to lease its 1.3 million-sf portfolio, which also includes the two-building Paces West, totaling 646,000 sf at 2727 Paces Ferry Rd., and the stabilized 400,175-sf Resurgens Plaza, a 27-story trophy tower at 945 E. Paces Ferry Rd. in the prestigious Buckhead submarket. The JLL team will be led by Kay Younglove, who will partner with Glen Aspinwall and Brooke Dewey to lease the portfolio. Behringer Harvard will continue to manage the portfolio. Dean Patterson, vice president of Behringer Harvard, said the recapitalization will provide additional resources for "unique space requirements" for prospective tenants while offering "attractive" broker commissions. "We believe we have assembled one of Atlanta's strongest leasing teams to work with Behringer Harvard," Patterson said. "We intend to excel by leveraging our hallmark strengths including a depth of experience, solid work ethics and local market expertise." ................................................................ Financing Clears for VA Project CLEVELAND, Ohio – Fifth Third Securities Inc. has won the nod to finance construction of the largest Veterans Administration hospital in Ohio. Through a $115 million bond deal, the Louis Stokes VA Medical Center in downtown Cleveland will be renovated and expanded. A special tax increment financing district was set up for the project, with the Cleveland Cuyahoga County Port Authority providing funding with the issuance of a taxable lease revenue bonds. "While this deal was two years in the making, we were able to get the right parties involved to strike the right deal," said Jeffrey Chapman, senior vice president of Cincinnati-based Fifth Third Securities. The VA center services 100,000 veterans annually, making it the fifth largest provider of the 167 hospitals in the U.S. The VA Hospital's Wade Park Campus will be renovated as part of the plan, which includes consolidation of the Brecksville campus and construction of a 2,000-space parking garage, administration building and residential services for homeless veterans. ................................................................ Eastbridge Eyes US Real Estate NEW YORK – A Kuwait-based public company has launched Eastbridge Al Mal Holdings Ltd., setting its sights on commercial real estate in major U.S. markets. The new company will have offices in New York, Dubai and Kuwait, with its acquisitions team focused on opportunistic investments in high-quality, income-producing commercial real estate. Eastbridge founding partner Rick H. Singer, a 25-year veteran, will serve as CEO. Edward E. Hamilton, also a principal, will lead business development and capital efforts from the New York office. Walter F. Brandhuber and Nabil Al-Sabih in the Middle East will focus on investments in the energy sector. "While the current global capital dislocation and re-pricing of assets have forced many firms to restructure and curtail investments, this new venture will position our firm as one of the most active investors in the marketplace," Singer said. Eastbridge's backer is one of the largest merchant families in the Middle East and North Africa. Its annual sales total $5 billion, according to the company. ................................................................ SL Green Wrests Full Control Of One Million-SF High Rise MANHATTAN – SL Green Realty Corp. has grabbed full ownership of 100 Church St., a 1.05 million-sf office tower in downtown Manhattan in a workout with a lender. The New York-based REIT had a 50 percent investment in the asset's senior mezzanine loan and two other mezzanine loans that it acquired in summer 2007 from Gramercy Capital Corp. SL Green took over leasing and management last August in a consensual agreement with the former owners. In a press release, SL Green said it won full rights from Gramercy, which declined to participate in a revamped financing agreement with Wachovia Bank to extend and restructure the loan following a foreclosure. The new term was pushed out four years while Gramercy earned future contingency payments with the release of its 50 percent stake in 100 Church St. With the deed in hand, SL Green said it will undertake an extensive renovation, including the lobby of the 58 percent-leased building. SL Green's in-house management team will oversee the asset, with Newmark Knight Frank's James Kuhn and Brian Waterman in charge of leasing. "We're pleased that we can take ownership of an office property with such great potential," said Andrew Mathias, president and chief investment officer of SL Green. ................................................................ Eurohypo AG Takes Resort's Reins SCOTTSDALE, Ariz. – Germany-based Eurohypo AG has seized control of the InterContinental Montelucia Resort & Joya Spa, keeping its longtime property manager, InterContinental Hotels & Resorts, at the helm of the award-winning property. "The resort exceeded set goals for operations and during the last quarter of 2009 has achieved great market share," said Valeriano Antonioli, managing director of InterContinental Montelucia Resort & Spa at 4949 E. Lincoln Dr. in Paradise Valley. The resort boasts 293 guest rooms and 34 multimillion-dollar private villas on 35 acres. It also features seven outdoor event spots, ranging from 500 sf to 23,000 sf, five swimming pools, a 31,000-sf spa, four bars, three restaurants and 27,000 sf of meeting space, including two ballrooms. The resort has earned more than 35 awards, including making the Platinum list of Smart Meetings magazine. ................................................................ Regency Centers' LEED Plan Starts Producing Results JACKSONVILLE, Fla. – Regency Centers Corp. has secured LEED for Core & Shell Gold certification for the 42,034-sf Jefferson Square shopping center in La Quinta, Calif., the first of six applications working through the U.S. Green Building Council's pipeline for the retail developer. Applications are pending for Deer Springs Town Center in North Las Vegas; Lower Nazareth Commons in Lower Nazareth Township, Pa.; Paseo Del Sol in Santa Barbara, Calif.; Northgate Village in Greeley, Colo.; Village at Lee Airport in Annapolis, Md.; and Market at Colonnade in Raleigh, N.C. Mark Peternell, Regency Centers' vice president of sustainability, said the LEED milestone for Jefferson Square at the corner of Fred Street and Waring Road has been three years in the making. "This is a testament to all of the hard work that has been put into this project," he said. "This project is not only conserving energy and water and reducing harmful greenhouse gas emissions, but it will also lower operating costs and provide a healthier environment for our retailers and their patrons." He said the sustainable measures will result in a 35 percent energy reduction in comparison to conventional buildings. In the fall, Jefferson Square's anchor will open its doors – a 13,969-sf Fresh & Easy Neighborhood Market. Already open is a 13,013-sf CVS/Pharmacy. ................................................................ Prudential Fund III Exceeds Goal, Raises $965 Million CHICAGO – Prudential Capital Partners has amassed $965 million, beating its initial goal by $65 million for Prudential Capital Partners III LP. The capital will be used for middle-market mezzanine fund business. "Although this has been the toughest economic environment for fundraising that we have ever experienced, we believe what set us apart was our focus on a consistent middle-market investment strategy in sponsored and sponsor-less financings," said Jeffrey Dickson, managing principal of Chicago-based Prudential Capital Partners. More than 80 percent of the new fund's investors participated in Prudential Capital Partners II LP, which closed in 2005 at $775 million. Participating investors are state and corporate pension funds, fund-of-funds managers, insurance companies and family offices. As of last December, Prudential Capital Partners funded 107 mezzanine and equity investments, realizing 56 of the investments to date. Fund III's target market is investments from $10 million to $100 million for acquisitions, management-led and sponsored buyouts, recapitalizations and growth capital for middle-market companies in traditional industries. In addition to Dickson, Fund III's principals include Mark Hoffmeister, Charles King, Allen Weaver and Matthew Chanin. The team has on average 25 years of private investment experience and has been responsible for the design and implementation of Prudential Capital Group’s mezzanine strategy since 1995. ................................................................ Advice From Lusk Center's Ross LOS ANGELES – After weathering 10 real estate cycles in his career, Stan Ross, chair of the University of California Lusk Center for Real Estate, believes survivors of this cycle will end up highly productive and more efficient, resulting in stronger teams that operate with increased transparency for the good of the industry. "We're going to wind up with some really solid companies by the end of 2010," predicted Ross, who helped create the federal government's Resolution Trust Corp. 20 years ago to shed non-performing real estate loans owned by troubled savings and loans. Ross does have some advice for developers, home builders, property managers, investors and lenders. The recommendations are centralize to gain control; rely more on technology and less on people; talk with lenders and investors; control costs; evaluate outsourcing, including marketing services, legal and accounting; know your tenants; increase communication and transparency with employees, tenants, lenders and investors; and share your energy and commitment. And finally, remember that cash is king. "Liquidity is the primary goal," Ross said, advocating asset sales to create "a cash cushion." Other suggestions are aggressively market inventory, centralize accounts, understand receivables and use direct deposit accounts for tenants. "Know who owes you money and deal with delinquencies quickly," he said, reminding all to "monitor your cash flow daily." Ross admitted that his recommendations aren't easy to follow, but the right strategies and the right team can result in a transformation "in time to benefit from a more prosperous future." ................................................................ Simon Property, Lexington Jump-Start Money Runs NEW YORK – In fast-paced runs at the capital markets, Simon Property Group plans to sell $2.25 billion of senior unsecured notes while Lexington Realty Trust has $100 million of convertible notes up for grabs. Indianapolis-based Simon Property said the net proceeds primarily will be used to fund the buyback of certain senior notes and general business purposes. The underwriters are Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., RBS Securities Inc. and Barclays Capital Inc., as joint book-running managers, and Calyon Securities (USA) Inc., Fifth Third Securities Inc., Morgan Keegan & Co. Inc., RBC Capital Markets Corp., Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc., as co-managers. The offering consists of $400 million of notes due 2015, $1.25 billion of notes due 2020 and $600 million of notes due 2040. The offering is slated to close Monday. New York-based Lexington is selling $100 million of notes due Jan. 15, 2030, and has another $15 million in reserve for an over-allotment. In a press release, Lexington said the notes will be unsecured obligations that will be fully and unconditionally guaranteed by certain subsidiaries and will not be subordinate to any other unsecured corporate obligations. ................................................................ GE Sticking With CBRE On 300 Million-SF Pact LOS ANGELES – General Electric Co. and CB Richard Ellis Group Inc. have renewed their agreement for real estate transaction management services for a 300 million-sf portfolio spanning 4,700 properties in more than 100 countries. GE also awarded CBRE rights to provide strategic transaction management services in addition to leasing, property sales and other transactional services. The portfolio encompasses virtually every real estate asset type from office buildings to major industrial facilities, a reflection of the wide scope of the company's business activities. "Efficient execution of our real estate strategy is a key element of GE's business success and CBRE's platform delivers the consistent, high quality expertise and service we require across all global regions," said Stephanie Fulbright, global director of corporate real estate for the Fairfield, Conn.-based GE. Craig Hendrickson, CBRE's senior managing director, is the global relationship manager for the GE account, working with other CBRE professionals in the Americas, EMEA (Europe Middle East Africa) and Asia-Pacific regions. "GE's commitment is a testament to their confidence in the capabilities of our professionals and our platform to meet their needs in all their global locations," said Bill Concannon, CBRE's vice chairman of global corporate services. ................................................................ Penn National Options 123 Acres COLUMBUS, Ohio – In response to city and state officials, Penn National Gaming Inc. has placed an option on an alternative casino site, choosing the 123-acre former Delphi Automotive plant on the city's West Side. The alternative site for the Hollywood Casino Columbus is along Georgesville Road near the intersection of West Broad Street in the Arena District. As reported last week, Penn National bought 24 acres at 560 Nationwide Blvd., also in the Arena District. The casino developer is working with a targeted opening for the last half of 2012 for a $250 million casino and track. Tim Wilmott, president and CEO of Wyomissing, Pa.-based Penn National, said due diligence is under way on the Delphi site. "We currently believe it will be suitable for the $250 million-plus casino development we plan for the Columbus area, and we made the decision to option it based on our dialog with the community and city leaders," he said in a press release. Wilmott said several sites were considered, but the Delphi site's highway access and status as a brownfield "fits well with our original vision of urban revitalization." Also, the 123-acre tract is large enough that it provides development flexibility, he added.Ohio's general assembly must approve a Constitutional amendment by a three-fifths majority and then garner approval from Ohio's constituency – as it did for the 24-acre site, which won nods from Ohio voters in the November 2009 election. "Given the uncertainty of an outcome in the legislature and at the ballot box, we will pursue development of both sites in parallel," Wilmott said. "Our goal is to begin development as soon as possible so we begin generating new jobs, as well as gaming taxes earmarked for counties, cities and public schools across the state as well as for Ohio's horse racing industry." ................................................................ CPS Corfac Joining Cassidy Turley SANTA CLARA, Calif. – CPS Corfac International will align with St. Louis-based Cassidy Turley as part of a March 1 rollout nationwide of the new brand. Cassidy Turley is an assembly of Colliers International offices, BRE Commercial of Arizona and BT Commercial of Northern California as reported Jan. 12 in RNR's National Gazette. CPS Corfac said the decision to join the other companies will make it the largest real estate firm in the Silicon Valley and San Francisco Peninsula. Its flag will be Cassidy Turley CPS. Todd Beatty will become executive vice president and managing partner of Cassidy Turley CPS and will report directly to Mike Kamm, CEO of Cassidy Turley BT Commercial. "Our new partnership with Cassidy Turley represents huge steps forward for CPS," Beatty said. "CPS gains a vastly improved San Francisco Peninsula presence and a stronger regional, national and international partner in Cassidy Turley, all of which will enhance our ability to service and advise our clients." CPS has 30 brokers in its Santa Clara office. Company leaders pointed out the move is more than just creating a larger sized firm. "We foresee tremendous near-term synergies with the Cassidy Turley BT Palo Alto office, as well as those farther up the SF Peninsula and in the East Bay," Kamm said. ................................................................ Conexant Real Estate Fetches $26.1 Million NEWPORT BEACH, Calif. – A leading residential and mixed-use developer will pay $26.1 million to Conexant Systems Inc. for 25 acres and two leased buildings beside its headquarters. City Ventures LLC of Santa Ana, Calif., is expected to close on the acquisition in March. Jones Lang LaSalle's capital markets group marketed and negotiated the sale of the properties along Jamboree Road. Scott Mercer, the seller's chairman and CEO, said the sale is "consistent" with a corporate strategy to improve the balance sheet by monetizing non-core assets. Sale proceeds will be applied to general corporate purposes, including debt reduction. ................................................................ 316,801-SF Lease Crosses Finish Line PLEASANT PRAIRIE, Wis. – C&H Service LLC has grabbed 316,801 sf of a 450,971-sf distribution center in LakeView Corporate Park, a mixed-use development along Interstate 94. Joint venture partners CenterPoint Properties Trust of Oak Brook, Ill., and WisPark Corp. added a long-term tenant with the new deal. The Milwaukee-based C&H distributes industrial equipment throughout North America. It is a subsidiary of Germany's TAKKT, a B2B mail-order specialist that also services Europe. Trent Poole, Roger Siegel and Scott Furmanski in CB Richard Ellis' Milwaukee office and Bayne Porter in the Atlanta office represented the tenant. Whit Heitman and Sam Badger with Paine/Wetzel represented CenterPoint Properties. "This represents over 1.4 million sf of leased up space in Pleasant Prairie, WI in the last two years. We continue to see strong demand in the I-94 Corridor in both Illinois and Wisconsin, for both the leasing of existing space and new development," said Michael Murphy of CenterPoint Properties. ................................................................ Shopping Center Bags $183 Per SF MIAMI – A limited liability company from Dania, Fla., has paid $6.67 million for the 36,500-sf Navarro Tamiami Plaza. Drew A. Kristol and Kirk D. Olson, senior associates for Marcus & Millichap Real Estate Investment Services in Miami, represented the local limited liability company that sold the fully leased three-tenant asset situated at 12000 SW. 8th St. in the heart of the city. "The buyer will benefit from the property's high traffic location on Southwest 8th Street and Southwest 120th Avenue," Kristol said. The sale price breaks down to $183 per sf. Navarro Discount Pharmacy is the center's anchor tenant. ................................................................ Sierra Medical Group Leases 20,000 SF PALMDALE, Calif. – Sierra Medical Group will open doors in April in 20,000 sf of Palmdale Corporate Center, becoming the second tenant for the 240,000-sf class A development. Ramsey-Shilling Commercial Real Estate Services Inc. of Los Angeles negotiated the lease for the Newport Beach, Calif.-based owner, Realm Real Estate, which has four 60,000-sf buildings in the development. Sierra Medical Group will share a building with DeVry University, which occupies 12,500 sf. ................................................................ Alabama Developer Gains Traction On 2,800-Acre Motorsports Park MOBILE, Ala. – Gulf Coast Entertainment LLC has tapped Forest City Asset Services LLC to be its master development consultant for the 2,800-acre Alabama Motorsports Park in Mobile County. The project is being underwritten by $500 million of tax increment financing. The development site is located on the doorstep of the University of Mobile along Alabama 158, a new four-lane connector for interstates 65 and 10. Developer Gulf Coast is envisioning additional entertainment venues surrounding the 7/10-mile oval speedway, which could have 70,000 seats, a three-mile road course and kart track. Also planned are restaurants, hotels, destination retail, a recreational vehicle park plus office, industrial and residential space. Gulf Coast also retained MuniCap Inc. of Columbia, Md., to assist with TIF financing issues. Pritchard City Council OK'd the $500 million TIF last August. If all goes as planned, construction could start this year. The developer anticipates the motorsports track will be ready to go in 2012. "GCE plans to seek races from leading sanctioning bodies," said Bill Futterer, general manager of Gulf Coast Entertainment and managing member of PSE-3, the Raleigh, N.C.-based firm that provides consulting services to the developer. "We selected Forest City as master development consultant because of its proven expertise in public/private partnerships and depth in project planning and long-term development." Among Cleveland-based Forest City's accolades are Stapleton in Denver and Mesa del Sol in Albuquerque. The Mobile project is Forest City's first project in Alabama. ................................................................ Feds Lease 16,623-SF Office PHOENIX – The General Services Administration has roped off 16,623 sf in the Deer Valley submarket for a new adjudication office for the Social Security Administration. The deal was sealed with a 15-year term. The office will be located in a 160,000-sf, four-story building at 18444 N. 25th Ave. The 28-year-old building underwent a major renovation in 2008, with Farmers Insurance Group now occupying the majority of the office space. Ashley Brooks, Jim Bayless and Kelley Morrison with CB Richard Ellis in Phoenix represented the landlord, Newport Beach, Calif.-based WRC Phoenix One LLC. ................................................................ Maryland, Ports America Sign $1.3 Billion Deal BALTIMORE – In a 50-year commitment, Ports America Group and the Maryland Board of Public Works have signed a deal worth more than $1.3 billion to the state, creates 5,700 jobs and delivers more than $15 million annually in new tax revenues. The quid pro quo is Ports America's right to continue as operator of Seagirt Marine Terminal. Ports America also is providing 100 percent of the cost to ready the port for the Super Post Panamax container ships. The port will be only one of two on the Eastern Seaboard to be able to accommodate the ships, which will be in use in 2014 when work wraps up on the widening of the Panama Canal. "Baltimore is one of the best, most efficient ports in the country. I'm very proud to be a partner with the State of Maryland and look forward to our long association in making sure Baltimore maintains its great maritime heritage," said Christopher Lee, founder and managing partner of New York-based Highstar Capital, Ports America's owner. Ports America and its predecessor companies have operated in the Port of Baltimore for 88 years, including operating Seagirt since its opening in 1990. Ports America Chesapeake, a newly formed affiliate, will oversee day-to-day operations of Seagirt Marine Terminal. Goldman Sachs and Cleary Gottlieb Steen & Hamilton LLP served as financial adviser and legal adviser, respectively, to Ports America Chesapeake. ................................................................ Urdang JV Buys 500,000-SF Station Square SILVER SPRING, Md. – In a joint venture play, Urdang Value-Added Fund II LP and Moore & Associates have acquired the 500,000-sf Station Square office complex from National Office Partners LP. The buyers are keeping the sale price under wraps, but the landmark fetched $129.8 million in 2005 when it was bought by National Office Partners, a joint venture between Houston-based Hines and CalPERS. The latest sale marks the fourth co-investment between Urdang and Moore and the developer's re-entry into the Silver Spring market. "We believe Station Square to be a compelling investment as it is located in a highly desirable Washington D.C. submarket, which is enjoying a resurgence in anticipation of the 2011 opening of a major transit center," said David L. Rabin, managing director of acquisitions for the Plymouth Meeting, Pa.-based Urdang. "We were able to acquire it at an attractive cost and can create value in this asset by making selected key investments and re-positioning the property in the marketplace." Urdang and Moore also own two office buildings in Austin, Texas, and the 540,000-sf Bethesda Towers in Bethesda, Md. Urdang is a real estate investment manager and part of BNY Mellon Asset Management. ................................................................ Pacific Resources Stevenson Nabs Financial District Prize SAN FRANCISCO – Taiwan-based Pacific Resources Stevenson has closed the first class A office sale of this year in the city, grabbing control of a 126,110-sf class A office building in the heart of the financial district for $24.2 million. The all-cash pickup of 49 Stevenson St. was pegged at 40 percent below its current assessed value, according to a press release by the buyer's brokerage team. Leading the talks for the buyer was Daniel Cressman, executive vice president of Grubb & Ellis Co., who had vice president Michael Taquino and senior associate Kyle Kovac at his side. The 15-story office building was completed in 1989. Its lead office tenants are M+W Zander and Hitachi Consulting and its retail space is leased to Yank Sing Restaurant. "This transaction marks the beginning of offshore investors returning to the San Francisco office market after having sat on the sidelines for nearly 10 years," Cressman said. "In addition, the downtown market is attracting more than 20 purchasers for each major property that comes to the market, resulting from the recent decrease in values that are predicted to continue through the first half of 2010." ................................................................ Equity Resource Raises $37 Million CAMBRIDGE, Mass. – Equity Resource Investments LLC (ERI) has closed its capital raise for Equity Resource Fund 2009 LP, hitting its mark with $37 million of equity earmarked for real estate acquisitions. According to its press release, the Massachusetts-based investment group is eyeing fractional equity interests in all classes of U.S. real estate in direct real estate investments, joint ventures, mergers and other opportunistic strategies with a high value, risk-adjusted basis. The 29-year-old ERI represents high net-worth individuals, registered investment advisers, broker/dealers, family offices and institutional investors. "We strongly believe that times of financial distress represent exceptional opportunities to make investments," said Eggert Dagbjartsson, managing director of the investment fund. "Having dry powder when capital is scarce allows ERI investors access to attractive transactions in superior properties." ................................................................ Dollar Tree Charts SoCal Expansion LOS ANGELES – Chesapeake, Va,-based Dollar Tree Stores Inc. has leased 62,680 sf in six locations in Southern California, lining up retail spots from 9,350 sf to 11,250 sf. All deals have five-year terms. Wilson Commercial's senior vice president Scott Burns teamed with Studley Retail brokers for the tenant's search and lease negotiations. The largest locations are Plaza Las Glorias at 1155 Mt. Vernon in Colton and Telephone Road Plaza at 4738 Telephone Rd. in Ventura. Burns teamed with Studley's Lea Clay to negotiate the deals. Plaza Las Glorias' owner used in-house representation while Rob Devericks of Hagelis Group represented the owner of the Ventura property. In Signal Hill, the retailer leased 11,213 sf in Signal Hill Gateway at the corner of Atlantic Avenue and East Spring Street. Burns and Studley's John Beaney handled the negotiations and Mike Jensen of Pacific Retail Partners represented the owner. In Temecula, a 10,017-sf spot was reserved in Palm Plaza at 26455 Ynez Rd. Burns and Clay represented the retailer and the owner used in-house representation for the negotiations. A 9,600-sf lease was inked for Gateway Plaza at 1642 Puente Ave. in Baldwin Park. Jesse Paster of NAI Capital represented the landlord. In Westminster, Dollar Tree will open a 9,350-sf store in Goldenwest McFadden Plaza at 15412 Goldenwest St. Burns and Studley's Paul Bartlett worked out the terms, with Tipton Wright of Marketing Brokers negotiating for the owner. "Dollar Tree is very bullish on this market," Burns said. "We are aggressively looking throughout Southern California for new store locations on behalf of Dollar Tree." ................................................................ Colliers, BT Commercial, BRE Raising New Flag in March ST. LOUIS – Effective March 1, eight brokerage operations in California, Arizona, New Jersey and Missouri will hit the streets as Cassidy Turley. The move is being touted as a means to expand their service offerings . "As one of the nation's largest commercial real estate services providers, the Cassidy Turley brand reflects expanding capabilities to service our valued clients nationally," said Mark E. Burkhart, CEO of Cassidy Turley. "We are passionate about the success of our clients and our employees and have decided to rebrand as Cassidy Turley to benefit both." The participating offices are Colliers Turley Martin Tucker, Cassidy & Pinkard Colliers, Colliers Pinkard, Colliers ABR, BT Commercial in Northern California, BRE Commercial in Southern California, BRE Commercial in Arizona and Colliers Houston & Co. of New Jersey. Five of the firms merged in August 2008, with the latest move adding BT Commercial in Northern California, which was formerly affiliated with NAI, BRE Commercial in Southern California, and BRE Commercial in Arizona, both formerly affiliated with Grubb & Ellis. Cassidy Turley's additions equate to 24 new offices and 500 more brokers for the firm. Joseph Stettinius Jr., president of St. Louis-based Cassidy Turley, said the "positive impact" of the merged forces, coming during a down market, "will be felt throughout our firm and the industry." He added that the growth isn't just "to get bigger, but to get better by offering more services to our clients and more opportunities for our employees." Wally Pinkard is Cassidy Turley's chairman; Mark Burkhart, CEO; John Fleury, COO; Bill Florent, CFO; Bill Collins, senior managing director of capital markets; Mark Boisi, chairman of New York; John Frager, president and CEO of BRE Commercial San Diego; Bryon Carney, president and managing principal of BRE Commercial Phoenix; Mike Kamm, CEO of BT Commercial; David Houston, president of Colliers Houston & Co.; and Dean Mueller, executive vice president of investor services. ................................................................ Fairwood Capital Buys Memphis Hotel MEMPHIS, Tenn. – Fairwood Capital LLC has closed on the 144-room Hampton Inn & Suites Memphis Beale Street, taking the deed to a seven-story hotel from Peabody Hotel Group. As part of the trade, the seller will continue to manage the hotel. The hotel has a prominent position in the downtown's business and entertainment district. The hotel opened in 2000 at 175 Peabody Place and underwent a major renovation two years ago. "The Hampton Inn & Suites Memphis Beale Street consistently has ranked as one of the top hotels in the Hampton Inn system, and we believe it is the highest quality select-service asset in the city," said Robert Solmson, founder and president of Memphis-based Fairwood. The Hampton purchase is the investment group's second hotel purchase in two months. And, the buying appears to be far from over. "We have considerable capital available for investment and have an aggressive appetite for acquisitions, including single assets, portfolios, distressed debt and restructuring opportunities," Solmson said. "Currently, the number of hotels for sale remains low, which is typical in this phase of the real estate cycle. However, our pipeline continues to expand, and we expect our investment activity to increase significantly over the next several years." ................................................................ Hyatt Andaz Flag Ready to Fly SAN DIEGO – Hyatt Hotel Corp. will raise the Andaz flag Feb. 1 on the historic Ivy Hotel and take its place as the hotel's manager. The Gaslamp Quarter hotel is owned by Kelly Capital. The Ivy Hotel opened in 1914 as the Maryland Hotel to host dignitaries for the Panama-California Exposition. In 2007, the San Diego-based Kelly Capital was leading a charge for a major overhaul of the historic property at 6th Avenue and F Street into Hyatt's newest brand, the Andaz. The new hotel will sport 159 rooms, with 13 deluxe suites and four specialty suites. ................................................................ Prestigious Law Firm Becoming LEED's Lead Tenant, 156,000 SF WASHINGTON, D.C. – The 86-year-old Sutherland Asbill & Brennan LLP has earned top billing as lead tenant with a 156,000-sf lease for 700 Sixth St., a LEED Platinum-certified trophy situated midway between the White House and U.S. Capitol.The deal bumps occupancy to 81 percent in the 300,000-sf high rise. "We are absolutely thrilled that we were able to come to mutually agreeable terms with a law firm of the size and stature of Sutherland in a fairly short period of time. There are few trophy assets in the District that can boast the quality of its law firm clients," said P. Brian Connolly, senior vice president for the locally based Akridge.Other law firms in the building are Cadwalader, Wickersham & Taft LLP, which leases about 85,000 sf, and Becton, Dickinson and Company, which recently signed for 5,210 sf. Sutherland presently leases space at 1375 Pennsylvania Ave., 1299 Pennsylvania Ave. and 1201 Pennsylvania Ave. All teams will move to 700 Sixth St. as leases expire, according to Akridge's press release.Akridge has 50,000 sf to fill in the D.C. trophy, developed by its office fund and New York-based Mitsui Fudosan America Inc. Designed by HOK, the building's sustainable features include bragging rights to the largest green roof on a private-sector building. Eric Berson of Washington Realty Group teamed with Rick Rome, Nicole Miller, Lois Zambo and Steve London in Studley's Washington, D.C., office to represent Sutherland. The owners were represented by Ben Meisel, Akridge's leasing director, and Greg Tomasso, a vice president in the firm. ................................................................ Grubb & Ellis REIT Plans $6.5 Million Medical Buy SARTELL, Minn. – Grubb & Ellis Healthcare REIT II Inc. has signed a $6.5 million purchase agreement for the two-building Center for Neurosurgery and Spine center. The Santa Ana, Calif.-based REIT is buying the 36,600-sf asset at 162 19th St. South from Stingray Properties LLC, which is comprised of Crystal Blue Properties LLC, Sylvan Holdings LLC and Dr. Samuel Elghoran, according to an SEC filing related to the deal. The purchase option calls for $200,000 of earnest money and a closing within 30 days of the end of the due diligence period.According to the REIT's filing, it will assume a $4 million mortgage and fund the balance with its IPO capital. The center was built in 2006 on a 3.7-acre tract. It is a half-mile from CentraCare Clinic Health Plaza and three miles from the region's largest full-service medical center, the 393-bed St. Cloud Hospital. Boasting 100 percent occupancy, the center is leased to five tenants, including Central Minnesota Neurosciences, the Center for Pain Management and Central Minnesota Center for Diagnostic Imaging. ................................................................ California Investor Lands Surgery Center PHOENIX – The 13,835-sf Metro Surgery Center has sold for $2.86 million to an investor from Sacramento, Calif. The medical facility at 3131 W. Peoria Ave. is operated by USPI and a local physicians' group. The building was developed in 1979 and subsequently underwent significant upgrades. Gregory Guglielmino, a healthcare investment specialist for Marcus & Millichap Real Estate Investments Services in Phoenix, represented the seller, a private investor from Atherton, Calif. "In spite of a shorter remaining lease term, this commitment to the location makes Metro Surgery Center an attractive investment opportunity for the buyer," Guglielmino said. "As the medical office building sector performs well despite the current economic downturn, we expect the new owner to realize healthy returns over the long term." ................................................................ 2010 Office Market Not All Gloom, Doom in US Cities MILWAUKEE – The 2010 office market will have a few "positive catalysts" working in its favor, according to a just-released report by Robert W. Baird & Co. David AuBuchon, senior research analyst of the office and industrial markets for the Milwaukee-based firm, said lab and data center space will continue to show "solid internal growth" based on tenant demand, a driver for development and redevelopment as this year plays out. Underwriting the conclusion is an improvement in access to capital, life science research and development budgets and capital expenditures for technology. AuBuchon predicted office fundamentals most likely will remain weak into 2011. With all things considered, he said "we believe the majority of 2010 will prove difficult, while 2011 could mark the beginning of a fundamental rebound, though the pace of recovery is highly uncertain." Meaningful rent growth isn't likely until 2012. NAI Global, also issuing an analysis yesterday, reported the national average vacancy rate in CBD class A space was 13.9 percent when 2009 closed, up 35 percent since 2008. Suburban office space was pegged at 16.9 percent in comparison to 2008's ending rate of 13 percent. AuBuchon pointed out the absence of new supply will translate into a "very tight market" once demand returns, labeling the realization as a "silver lining" of sorts for the present and future. As of third quarter 2009, new supply in the top 25 U.S. markets was just 1.1 percent of outstanding inventory – and less than 40 percent is preleased. The historical annual average for new supply is 2.5 percent. Using 40 percent as a threshold, the analyst concluded distress looms for some regions where buildings are going up and ultimately impacting market rents. His watch list of cities is Atlanta, Los Angeles, South Florida, Phoenix, San Francisco and Westchester, Conn. AuBuchon's analysis pointed to the flip side. "The lack of competition across the U.S. should insulate existing inventory and create a tighter office market once demand returns," he wrote. "And given the 1-2 year time frame for new office construction, we wouldn't expect meaningful competition from new supply any time soon, potentially setting up a nice mix of rebounding job growth in 2011 amid a stabilized office market with no new supply in the immediate future." ................................................................ SL Green Inks $475 Million Refi NEW YORK – SL Green Realty Corp. has repackaged the financing for 1515 Broadway, getting $475 million in a five-year loan from a syndicate led by the Bank of China. SL Green and joint venture partner, SITQ, used the new capital to retire a $625 million mortgage against the landmark tower in Times Square, which was set to expire in November. The new loan is a floating-rate vehicle. DekaBank and Landesbank Baden-Wurttemberg are part of the lending syndicate. The joint venture owners, who bought the tower in 2002, started a $40 million renovation in 2008. The work is slated for completion before this quarter ends.Viacom is the lead tenant, with 1.3 million sf. Its lease was renewed in late 2008. The tower also holds the Minskoff Theatre and AEG Live's Nokia Theatre. "At a time when many commercial property owners have faced difficulties in financing and refinancing their assets, we continue to access our relationship base to source value-add financings," said Andrew Mathias, president of SL Green. "As we indicated at our recent investor conference, we were able to source this financing which required a lower equity contribution than previously forecast." Rob Martin of CB Richard Ellis and Deutsche Bank's Commercial Real Estate Restructuring Advisory practice acted as advisers for SL Green for the transaction. ................................................................ Pacific Office Properties Pays $75 Million for Seaview Stake SAN DIEGO – Pacific Office Properties Trust Inc., an affiliate of the Shidler Group, has bought the five-building Seaview Corporate Center, paying $75 million for a location that it's managed, leased and used as a regional headquarters address for five years. The 17.9-acre campus, totaling 356,500 sf of biotechnology space, was owned from 2002 until 2004 by Shidler's Western U.S. operations in partnership with New York-based Angelo, Gordon & Co., which will continue to share in the ownership of the corporate campus. Pacific Office emerged in 2008 following a merger of Shidler's Western team and a public entity. "We are very pleased to conclude this transaction bringing this highly accretive property into Pacific Office’s portfolio," said Matthew Root, chief investment officer. The acquisition, completed in late December, is being touted as San Diego's largest in 2009. Pacific Office Properties got the deed from an affiliate of Des Moines-based Principal Real Estate Investors, which was represented by Adam Edwards of Eastdil Secured in New York. Seaview Corporate Center is 92 percent leased, with the tenant roster including Adobe Systems Inc., the Active Network, SAS and Accelrys Inc. The acquisition included nearly one-fourth of an acre of developable land. "Seaview Corporate Center, with its campus-like setting, unobstructed ocean views, first-rate tenants and stable cash flows, is considered a trophy property in the desirable San Diego submarket of Sorrento Mesa." Root added. ................................................................ Stan Johnson Co. Poised to Expand TULSA – Stan Johnson Co. has set its sights on expansion, planning office openings in Atlanta, San Francisco, Southern California, New York City and Chicago. "In preparation for the next real estate cycle, we plan to continue leveraging our expertise while capitalizing on our past successes in order to drive new opportunities and growth for the future," said Stan Johnson, CEO of the Tulsa-based company, which focuses on net-leased properties. "We have talked to several top brokers who have expressed interest in joining our firm." Daniel Herrold of Houston, who was promoted to executive managing director of business development last November, is spearheading the regional expansion. Herrold is looking to hire lead brokers with "a strong track record of achievement in the single-tenant, net-lease industry" in the targeted cities. "We see today as an opportunity to hire more talented brokers, penetrate new markets and grow our brokerage platform at a faster pace," Herrold said. ................................................................ 124,679 SF in Leases OK'd PARSIPPANY, N.J. – Mack-Cali Realty Corp. has renewed three leases, totaling 124,679 sf, with a trio of Interpublic Group subsidiary companies. Inking renewals were Integrated Communications Corp., Pace LLC and Torre Lazur Healthcare Group Inc. All extended their lease terms until 2022. Integrated Communications renewed 43,101 sf at 5 Sylvan Way at the Mack-Cali Business Campus. At Waterview Corporate Campus, Torre Lazur Healthcare Group re-upped 61,945 sf at 20 Waterview Blvd. and Pace held onto 19,633 sf at 35 Waterview Blvd. Scott Panzer and Robert Romano of Jones Lang LaSalle represented Interpublic Group. Mack-Cali's Diane Chayes, vice president of leasing, represented the owner. ................................................................ JPG Grabs Bethesda CBD Landmark for $71 Million BETHESDA, Md. – Getting clearance to assume a $53 million loan, JPG Cos. has closed on the $71 million purchase of One Bethesda Center. The 167,000 sf mix of class A office and retail space is 99 percent leased. Holliday Fenoglio Fowler LP Jim Meisel and Dek Potts represented the Toronto-based seller, Brookfield Properties Corp. "One Bethesda Center is truly a landmark office building with a premier downtown Bethesda location," Meisel said. The 12-story building, situated within walking distance of a metro station, is leased to 14 tenants, including Boston Consulting Group, Paley Rothman and AREVA NC. On-site amenities include a bank, salon and day spa and cafe. Potts pointed out that "quality buildings with stable rent rolls in strong submarkets" are generating competitive pricing despite ongoing economic challenges. Based in Chevy Chase, Md., JPG owns 9.3 million sf of office space, 13,500 residential units, 3.1 million sf of retail space and 4,800 hotel rooms. Its portfolio is concentrated in the Washington, DC metro. ................................................................ Steiner, Starwood Close $100 Million Spa Sale WHITE PLAINS, N.Y. – Starwood Hotels & Resorts Worldwide Inc. and Steiner Leisure Ltd. have completed the $100 million sale of Bliss Spa, including the Remede brand. As part of the agreement for Bliss World Holdings Inc., Starwood retained exclusivity of the Bliss brand for its W Hotels and Remede for its St. Regis Hotels. Also, Aloft hotels will continue to offer Bliss Tried+Blue amenities. Starwood operates more than 300 spa properties worldwide, including its Heavenly Spa by Westin, which wasn't included in the sale. "Not only does this sale further our strategy to focus exclusively on our global hospitality business and our nine distinct and compelling hotel brands, but our ongoing and exclusive relationship with Steiner Leisure means that we will continue to distinguish our spa offerings in our W and St. Regis hotels and provide amenities that are guest favorites," said Frits van Paasschen, president and CEO of the White Plains, N.Y.-based seller. Steiner, based in the Bahamas, provides spa services to 128 cruise ships and 86 resorts. "We are thrilled to begin integrating Bliss products and services into our operations and using our distribution channels to introduce more of the world to the fun, efficacious Bliss brand, as well as to the innovative, premium Laboratoire Remede brand," said Leonard Fluxman, Steiner's president and CEO. ................................................................ Digital Realty Adds to Portfolio SAN FRANCISCO – Jump-starting the New Year with acquisition news, Digital Realty Trust Inc. has gained control of two fully leased data centers in Northern Virginia for a combined $63.3 million. The properties are 45901 and 45945 Nokes Blvd. in Sterling, Va., where the San Francisco-based buyer has picked up 167,000 sf of class A space. In Ashburn, Va., Digital Realty bought 164,000 sf of prime space at 21561 and 21571 Beaumeade Circle. The deal also included developable land. "The buildings are strategically located near our existing Northern Virginia facilities and are leased to existing DLR customers," said Scott Peterson, Digital Realty's senior vice president of acquisitions. The Dec. 18 purchase pushed the portfolio to 1.2 million sf of rentable space in Northern Virginia. ................................................................ $250 Million Casino Plan Gains Ground TOLEDO, Ohio – Penn National Gaming Inc. has closed on a 44-acre site cleared for casino gaming in the November election. If all goes as planned, the $250 million Hollywood Casino Toledo will open in mid to late 2012. Penn National Gaming, based in Wyomissing, Pa., has named Kenneth Schultz, vice president of design and construction to lead the development team for the 1968 Miami St. tract. Attorney Richard Mitchell of Mitchell Law LLC in Toledo will oversee real estate and employment issues. The legal team also includes former Ohio Supreme Court Justice Andy Douglas, now with Crabbe, Brown & James LLP, who will continue to serve as legal and political adviser for the casino development. Jay Black of the NAACP in Toledo was named diversity consultant. Penn National subsidiary Toledo Gaming Ventures Inc. was the buyer of record. The seller was River Road Development, which acquired the land three years ago and marched it through remediation so it could be redeveloped. "Closing on the property moves us a major step closer to making Hollywood Casino Toledo a reality," said Eric Schippers, senior vice president of Penn National. "We're eager to move forward and excited that this project will bring thousands of construction and permanent jobs to the Toledo area, as well as tens of millions of dollars for the city of Toledo as well as all of the counties and school districts in Northwest Ohio." ................................................................ Brookwood Buys 163,800-SF Warehouse PEABODY, Mass. – Brookwood Financial Partners LP has acquired a fully leased, 163,800-sf office-warehouse in Centennial Park. Seller Boston Acoustics Inc. shares the office-warehouse at 300 Jubilee Dr. with Christian Book Distributors LLC. Greg Klemmer of Klemmer Associates LLC represented the seller. "The building, which we acquired at a deep discount to replacement cost, contains high-quality office and warehouse space that can accommodate a variety of uses, including research and development, manufacturing, distribution and biotech," said Thomas N. Trkla, chairman and CEO of the Beverly, Mass.-based investment group. "The North Shore market is currently underserved with well-located high-bay warehouse space that is easily demisable for tenants needing 20,000 square feet or more of space." ................................................................ $13.3 Million Takes Five Deeds PHOENIX – Five sales, three in the Southwest, have brought a combined $13.3 million for sellers in Arizona, New Mexico, Idaho and Tennessee. In Gilbert, Ariz., Winco Enterprises LLC has paid $3.4 million to DBS Properties Partnership LP for a 4,400-sf net-leased building at 7260 S. Power Rd. The tenant is Circle K. Jamie Medress, investment specialist for Marcus & Millichap Real Estate Investment Services in Phoenix, represented the seller. He teamed with Mark Ruble, also an investment specialist in Phoenix, to handle negotiations for the buy side too. In Albuquerque, a 2,450-sf building, net leased to a Jack in the Box franchisee, has sold for $2 million to BENDOT LLC of Manhattan Beach, Calif. Medress and Ruble represented the buyer and teamed with Sam Medford, also in the Phoenix office, to represent the local seller, the Tekin Group Inc. Gary Lucas of Marcus & Millichap was part of the sales team for the 5000 Montgomery Blvd. NE property. The Phoenix office sale brought $1.1 million for the local seller, TRK Properties LLC. The 62 percent-leased Legend Office Plaza at 2632 E. Thomas Rd. was marketed by Chris Keenan, senior associate in Marcus & Millichap's Phoenix office. In other net-leased retail sales, Marcus & Millichap teams also sold a 14,280-sf building in Idaho Falls, Idaho, for $5.2 million and a 6,124-sf asset for $1.6 million in Nolensville, Tenn. The Idaho sale of a Walgreens-leased building at 1725 First St. was marketed by Jesse Goldsmith with Marcus & Millichap in Phoenix, Medress and Ruble, who represented the local seller, Idaho Falls-West LLC. The buyer, AM Idaho Falls LCC, was represented by brokers Louis J. Mazella Jr., John Nicolas and Lucas, all Marcus & Millichap colleagues. The Tennessee building at 7211 Nolensville Pike is leased to Advance Auto parts. Joseph Massa, an investment specialist in Marcus & Millichap's Nashville office, handled talks for the seller, AA Nolensville LLC, a Delaware company, while Ruble represented the Florida-based buyer, AAP Nolensville LLC. ................................................................ Forest City JV Clears Last Hurdle for Atlantic Yards BROOKLYN – After six years of working the plan, Forest City Enterprises Inc., its partners and city officials have signed vital agreements to advance the $4.9 billion Atlantic Yards project. The document closings open the door for work to begin on the 18,000-seat Barclays Center arena for the New Jersey Nets. Signing the agreements were Empire State Development Corp., Metropolitan Transportation Authority, the City of New York and various Forest City-related subsidiaries. "The jobs, economic activity and affordable housing this project will help create over the long term are more important than ever before, given the continuing economic challenges faced by the City and the nation. We deeply appreciate the support of all of our public and private partners," said Charles A. Ratner, president and CEO of the Cleveland-based development giant. The development site takes up 22 acres at Flatbush and Atlantic avenues. According to published reports, the arena will take 28 months to build. The Nets, which Ratner bought in 2004 for $300 million, are expected to move from East Rutherford, N.J., to Brooklyn in 2012. Forest City's plans include 16 high-rise residential towers, with up to 6,430 apartments. Media reports said a bond sale must be completed by Dec. 31 in order to qualify for tax-free financing. ................................................................ Inland Western Backfills 233,022 SF in California OAK BROOK, Ill. – Inland Western Retail REIT and Burlington Coat Factory have signed three leases, totaling 233,022 sf, for former Mervyn's locations in California. Burlington Coat Factory has leased 77,192 sf in Moreno Valley, 77,936 sf in Vacaville and 77,874 in Elk Grove. Shane Garrison, chief investment officer for the Oak Brook, Ill.-based REIT, credited location and asset quality with securing the new anchor tenant for the properties. The California-based Mervyn's filed bankruptcy in July 2008, setting a plan in motion to liquidate all assets and shutter all stores. Burlington Coat Factory, headquartered in Burlington, N.J., had 442 stores in 44 states and Puerto Rico at the end of November. It opened nine locations between September and November. ................................................................ Portfolio Draws $95 Million NEW YORK – A private investor has paid $95 million for a 1,300-bed assisted living portfolio of 18 properties in North Carolina to NorthStar Realty Finance Corp. In a press release, the seller said the closing will generate about $36 million of cash for the corporate till. The properties were shouldering $56 million of mortgage debt and accrued interest. ................................................................ Colonial Properties Inks Back-to-Back Sales BIRMINGHAM, Ala. – Colonial Properties Trust has sold the 286,000-sf Colonial Promenade Winter Haven for $20.7 million in a free-and-clear trade while simultaneously collecting $3 million for its 15 percent stake in an office joint venture that owns the 689,000-sf Colonial Center at Mansell Overlook. The 23-year-old Colonial Promenade Winter Haven at 303 Cypress Gardens Blvd. in Winter Haven, Fla., was 93.2 percent leased at the end of the third quarter. "Simplifying the business has been a priority for us all year," said Thomas H. Lowder, chairman and CEO of the Alabama-based REIT. Colonial Properties Trust also recently sold interests in two other joint ventures, moves that eliminated its near-term debt maturities, reduced overhead and prepares the company "for future growth opportunities," he said in a press release. "We will continue our efforts on this front in 2010." At the end of September, the REIT owned and managed 34,644 multifamily units and 21.5 million sf of commercial space. In backing out of the Mansell office joint venture, Colonial shed $13.9 million of debt. The 15 percent stake went to UBS Wealth Management, the majority owner of the six-building campus at 100 Mansell Court East in Roswell, Ga. The REIT bought into the 112-acre campus in June 2006, getting a piece of a transaction valued at $166.4 million, according to Internet research. ................................................................ University of Dayton Spends $18 Million for NCR Campus DAYTON, Ohio – The University of Dayton has acquired NCR Corp.'s world headquarters campus for $18 million, getting a 115-acre signature footprint for its research institute. The seller will lease the 455,000-sf, class A office building at 1700 S. Patterson Blvd. through part of 2010, then release the space to the university. NCR will continue to own the campus' data center. University leaders are planning a phased-in occupancy over the next three years. "I've never heard of any instance of a university purchasing the headquarters of a Fortune 500 company," said Lawrence Molnar, associate director for the University of Michigan Institute for Research on Labor, Employment and the Economy. "This could be transformational. It's going to employ people. It has the potential to attract companies that can work next to a university doing cutting-edge research. It just opens the door to tremendous opportunities and new jobs." The university's 260 researchers and support staff conduct nearly $100 million annually of sponsored research. It just received its largest contract, $49.5 million to develop advanced jet fuels and combustion technologies for the U.S. Air Force. The university's research team currently occupies space at Wright-Patterson AFB and leased sites in and around Dayton. The NCR building is one of the largest in the region. The university also plans to carve out space for an alumni center, graduate classes and conferences. The asset includes a 1,600-space parking lot. ................................................................ Tennenbaum Closes $454 Million Fund SANTA MONICA, Calif. – Tennenbaum Capital Partners LLC has amassed $454 million to deploy into debtor-in-possession financing. The California-based company hit the milestone with the third and final closing of the Tennenbaum DIP Opportunity Fund LLC. The investment platform will target DIP loans of $10 million or more to aid companies with Chapter 11 restructurings. "This fund builds on TCP's history of providing financing in complicated situations or when financing is in short supply to help distressed companies emerge from difficult circumstances and achieve future success," said David Hollander, a TCP partner. TCP's broad-based investments have funded real estate, transportation, retail, energy, media and business industries. Greenhill & Co. LLC was the placement agent for the fund. ................................................................ Cedar Fair, Apollo Forge $2.4 Billion Merger Plan SANDUSKY, Ohio – Cedar Fair LP is selling its regional amusement parks, water parks and entertainment portfolio to New York-based Apollo Global Management for $2.4 billion in stock and cash. If all goes as planned, the merger will be inked in the second quarter. The transaction value includes the refinancing of the seller's outstanding debt. "We have considered a wide range of strategic alternatives over the past several years. After considering these strategic alternatives, we have concluded that the transaction with Apollo is in the best interest of our unitholders," said Dick Kinzel, president and CEO of the Sandusky, Ohio-based company. The definitive agreement calls for $11.50 in cash for each Cedar Fair LP unit, which equates to a 43 percent premium over its volume weighted average closing price for the past 30 days and a 28 percent premium over the closing price three days ago. To make the deal a reality, affiliates of J.P. Morgan, BofA Merrill Lynch, Barclays Capital Inc., UBS Investment Bank and KeyBanc Capital Markets have provided an aggregate of $1.95 billion in financing commitments. Cedar Fair's board has approved the merger, sending the plan to unitholders with a recommendation for a final blessing. Cedar Fair will become a wholly owned, private company of Apollo Global Management, if the deal clears all hurdles. "We look forward to partnering with Cedar Fair's management team and employees to build on the many strengths of the company," said Aaron Stone, a senior partner at Apollo. "We are firmly committed to Cedar Fair's continued growth as an industry leading amusement park operator." Cedar Fair has a 40-day window to solicit other offers. The portfolio consists of 11 amusement parks, six outdoor water parks, one indoor water park and five hotels in Ohio, Dorney Park, Pa., Minnesota, Michigan, Virginia, North Carolina, Missouri, California and Toronto, Canada. Rothschild Inc. and Guggenheim Securities LLC are the company's financial advisers and Weil, Gotshal & Manges LLP and Squire, Sanders & Dempsey are its legal advisers. Wachtell, Lipton, Rosen & Katz and O'Melveny & Meyers LLP acted as legal advisers and BofA Merrill Lynch, J.P. Morgan, Barclays Capital Inc., and UBS Investment Bank acted as financial advisers to Apollo Global Management in connection with the transaction. ................................................................ Houston's Lionstone Group Acquires Maguire's Lantana Media Campus SANTA MONICA, Calif. – The Lionstone Group has added the 463,000-sf Lantana Entertainment Media Campus to its portfolio, getting the largest asset of its type on Los Angeles' Westside. The tenant roster features industry heavyweights such as IMAX Corp., NBC Universal Television, Dick Clark Productions and Revolution Studios. The Houston-based buyer tapped its Lionstone Urban Investments Two, a $400 million fund targeting real estate in high-amenity urban areas, to acquire the creative campus. Jim Jacobsen, Lee & Associates/West LA co-president and long-time Lionstone strategic partner, will oversee management of the four-building campus set on 12 acres. Duties include brokerage, renovations and completion of LEED® Certification efforts. Tom Bacon, Lionstone's founding partner, said the acquisition from Los Angeles-based Maguire Properties Inc. is not only a strategic move, but also reflects its commitment to the entertainment and real estate communities. "We are confident in the recovery of the West Los Angeles-Santa Monica submarket," Bacon said. "At Lionstone, preserving the authenticity and unique character of each property is a priority and we plan to continue to evolve our portfolio and amenities to deliver a strategic mix of adaptive reuse, LEED® Certified, and architecturally creative properties." Lionstone now owns more than one million sf of creative and adaptive reuse properties in West Los Angeles. Lantana is the investment group's sixth investment into the Santa Monica media and tech corridor. ................................................................ New Tenant Claims Penthouse BOSTON – Circle Surrogacy Ltd./Weltman Law Group will take over the top floor for their world headquarters, signing a 5,696-sf lease for a mid-rise building in Boston's Financial District. Principals and brokers toured nearly 50 buildings before honing in on the 100,000-sf building at 200 High St., according to John J. Weltman, president of Circle Surrogacy. "We were looking for the perfect location and building for our two businesses, and wanted to find both a great space and special building to build a new home," he said in a press release. Jones Lang LaSalle senior vice president Tom O'Regan and associate Patrick Nugent represented the building's owner, Two Hundred Mortgage Associates LP, an affiliate of the Davis Cos. The six-story, class B building overlooks the Rose Kennedy Greenway and Boston Harbor. The inbound tenants' space features a patio deck in a building erected in 1860, renovated in 1990 and again just recently. "The Davis Cos. worked diligently to get this transaction completed," O'Regan said, "and Circle Surrogacy looks forward to continuing to prosper here." ................................................................ 221,737-SF Repositioning Yields $18.9 Million Refi SOUTH PLAINFIELD, N.J. – Plainfield Associates has closed on a five-year loan, totaling $18.9 million, in a refinance of the 221,737-sf Golden Acres shopping center in Middlesex County. Holliday Fenoglio Fowler LP director John Taylor and associate director Michael Lachs placed the 6.25 percent, fixed-rate loan with Investors Savings Bank. The owner, with ties to New York-based Polimeni International LLC, used the fresh capital to retire debt and plans to add decorative retaining walls and repave the parking lot with the balance at the 87 percent-leased center at 686-736 Oak Tree Rd. Pathmark is the center's grocery anchor for a tenant roster that includes Big Lots, Apogee Retail and Wendy's. "Pathmark's grand opening in July was a significant step toward the borrower's long-term successful repositioning plan for the asset," Taylor said in a press release, citing Pathmark's backfilling of an A&P location and the loss of a co-anchor, Bradlees since it was acquired in the 1990s. "The borrower remained committed to the asset and is now poised to see the benefits of its efforts, as is the South Plainfield community, with a revitalized shopping center." ................................................................ 150-Acre Park Finds Backer MANASSAS, Va. – In a joint venture move, Southbridge Development Group (SDG) and 8000inc are holding a lease purchase agreement to develop a 150-acre business park with 900,000 sf of industrial space and a 300,000-sf hotel. The deal is part of a $75 million investment strategy. With 12 years left on a 20-year training contract with the Department of Defense, SDG is planning to build an international training center plus develop and operate a vocational training and certification program for U.S. veterans. In a press release, SDG said the center initially will target wounded veterans from the Walter Reed Army Medical Center. The press release said the Massachusetts-based organization, 8000inc, initially will invest $1.5 million into the joint venture for a stake in SDG's contracts, which are delivering $25 million of gross revenue. "This financing is a significant event for Southbridge, as it brings in both capital and experienced investors who can help us achieve our ambitious growth plans. The realization of this investment now means we can progress without barriers to deliver what we feel is an exceptional project and investment opportunity," said Larry Mathews, SDG's president. ................................................................ CS Lewis College Finds Home NORTHFIELD, Mass. – Hobby Lobby Stores Inc. has acquired the 1,600-acre campus of Northfield Mount Hermon School for rebranding into a new college funded by the C.S. Lewis Foundation. The Oklahoma City-based retailer plans to invest more than $5 million into operations and capital expenditures to get the C.S. Lewis College up and running. The curricula focus will be on great books, visual and performing arts. The Christian college is a joint venture between Hobby Lobby, the boarding school and C.S. Lewis Foundation. "Our three organizations all care deeply about education and establishing a worthwhile mission on the historic Northfield campus. We also share a vision of preserving and honoring the legacy of D.L. Moody," said Steven Green, Hobby Lobby's president. The foundation considered several locations in the U.S., according to a press release. The plan is to open the four-year college in fall 2012, pending certifications. The initial enrollment is projected at 400 students, supported by a 40-member faculty and staff of 45. Officials project the college will have a $20 million annual budget within five to seven years of its opening. "As a well-established center for academic and community development, NMH is excited to welcome new neighbors whose mission will attract international scholars and active members of the local community," said Thomas K. Sturtevant, Northfield Mount Hermon head of school. "We are also extremely pleased that Hobby Lobby plans to take great care of the campus and its buildings, which have important historic value and are rooted in the hearts of so many of our alumni." The boarding school presently has 630 students and employs 90 faculty members. ................................................................ Acme Packet Moving HQ, Expanding BEDFORD, Mass. – Acme Packet Inc. has signed a 123,788-sf office lease, setting a plan in motion to relocate its headquarters from Burlington, Mass., and gain 48,788 sf of extra operating space. The company expects to light 100 Crosby Dr. by June. Its headquarters office currently fills 75,000 sf at 71 3rd Ave. John Wilson and James Lipscomb of Boston-based Richards Barry Joyce & Partners represented the landlord, DivcoWest, in the transaction. Brad Spencer of Grubb & Ellis Co. represented Acme Packet. The San Francisco-based owner acquired the 261,961-sf office building at 100 Crosby Dr. in May 2007, getting a 52-acre tract just 18 miles from Boston. The asset boasts 860 parking spaces, a full-service café, fitness center and 64-seat amphitheater. "When we acquired this property we saw tremendous value in its leasing profile and location and this has been borne out by Acme Packet’s decision to move to the building," said James Teng, managing director of DivcoWest. The new lease is being touted as one of the largest ones signed this year in the Boston area................................................................. Dealmakers Close $44 Million Refinance NEW YORK – RNY Australia Operating Co. has secured a $44 million loan from Investors Savings Bank, retiring a maturing loan collateralized by an 836,463-sf portfolio of office and industrial properties in New York, New Jersey and Connecticut. The portfolio is 88 percent leased to 70 tenants, including PerkinElmer Inc., Xerox Corp. and two New York state agencies. The collateral is a 452,414-sf office/warehouse at 710 Bridgeport Ave. in Shelton, Conn.; 124,792-sf office building at 300 Executive Dr. in West Orange, N.J.; 58.961-sf office building at 300 Vanderbilt Motor Parkway in Hauppauge, N.Y.; and 26,601-sf office building at 505 White Plains Rd. and 173,695-sf office building at 580 White Plains Rd., both in Tarrytown, N.Y. "All of the assets within the portfolio are strategically located along primary suburban office corridors providing them with excellent access to major interstate highways including Interstates 495, 280, 95 and 287," said Mike Tepedino, senior managing director in New York for Holliday Fenoglio Fowler LP. He and HFF senior managing director Whit Wilcox arranged the seven-year, fixed-rate loan for the borrower, which owns about 3.3 million sf in the Long Island, New Jersey and Westchester/Connecticut markets. ................................................................ Turner Overseeing $50 Million Project for Drexel University PHILADELPHIA – Dallas-based Turner Construction Co. has won the nod from Drexel University to manage construction of the $49.7 million Constantine Papadakis Integrated Sciences Building. Completion is penciled for June 2011. The 138,000-sf building will be built on the university's main campus. It will be Drexel's First LEED Silver-certified building. Designed to house 39 research and teaching labs, the building will feature a biowall, a first for a U.S. university. The biowall will act as a natural air filter to remove volatile organic compounds and CO2 from the air as it passes through the wall. "We are proud to continue our relationship with Drexel University and serve as the construction manager to deliver this energy-efficient education facility to benefit the students and faculty of this premier university," said Michael J. Kuntz, vice president and regional general manager of Turner's Philadelphia operations. ................................................................ Samsung Takes 193,000 SF for HQ RIDGEFIELD PARK, N.J. – Grabbing a new headquarters spot, Samsung Electronics America Inc. has leased 193,000 sf of class A office space from KABR Real Estate Investment Partners LLC. The pact carries a 10-year term and two five-year extension options. In early 2010, Samsung will move into a 235,000-sf office building at 85 Challenger Rd., which KABR bought in June from AIG. The company now leases space at 105 Challenger Rd. "This transaction confirms KABR's ability to price real estate assets properly and reposition them in the current market environment. This skill combined with our strong balance sheet matches KABR up well with lenders looking to quickly liquidate commercial real estate assets," said Kenneth Pasternak, chairman of KABR and former CEO of Knight Trading. Andrew Merin led the Cushman & Wakefield Inc. metropolitan-area capital markets group that negotiated the lease for KABR. John Oh and Paul March with CB Richard Ellis represented Samsung in the talks. "KABR won 85 Challenger from AIG over many bidders, aggressively re-positioned it in a challenging market and turned the vacant building into an income-producing property in less than six months," added Adam Altman, partner at the Paramus, N.J.-based KABR Real Estate. "KABR is financially well positioned to take advantage of opportunities, like 85 Challenger, as they arise." ................................................................ Raytheon's 75,000-SF Lease Kicks In Build-to-Suit Plan ABERDEEN PROVING GROUND, Md. – St. Johns Properties Inc. has jumped into a 75,000-sf, LEED-certified project, with a full-building lease in hand from Raytheon Co. Completion is planned for late 2010. The build-to-suit site is located in a technology, research and development business park for government and non-government users within the Aberdeen Proving Ground. Raytheon's decision affects operations in Towson, Md., and Fort Monmouth, N.J. "Establishing Raytheon's presence on the Aberdeen Proving Ground provides us the opportunity to expand our partnership with the Army and Team C4ISR," said Jerry Powlen, vice president of the Waltham, Mass.-headquartered Raytheon Integrated Communications Systems. ................................................................ Vacant Office Building Bags $5.8 Million LAKE WORTH, Fla. – Closing a $5.79 million purchase, the Health Care District of Palm Beach County has latched onto a 95,305-sf vacant office building as its new location. The seller of 2601 10th Ave. North is a limited liability company from Los Angeles. Douglas K. Mandel, associate vice president in Fort Lauderdale for Marcus & Millichap Real Estate Investment Services, negotiated the transaction. The four-story office building previously was Washington Mutual's regional headquarters. A JPMorgan Chase bank branch had been occupying the first level, which included drive-through lanes. "The buyer will benefit from the property's location in a busy business district with close proximity to JFK Hospital, Palm Beach International Airport and downtown West Palm Beach," Mandel said. ................................................................ Done: $10 Million Refinance CHICAGO – Guggenheim Real Estate LLC has secured a $9.9 million refinance, collateralizing the new debt with a fully leased, 536,800-sf industrial building in Franklin Park. Holliday Fenoglio Fowler LP managing director Todd Sugimoto in Los Angeles and director Kenneth Glomb in Chicago arranged the financing for the 9201 Belmont Ave. property through American National Insurance Co. In the past 45 days, HFF also completed financings for the New York-based borrower for its Bear Valley Shopping Center in Denver and 800 Brickell Ave. in Miami. ................................................................ Berkshire-Led JV Takes Capmark Financial's Loan, Servicing Group HORSHAM, Pa. – Forming a new company to complete the deal, Berkshire Hathaway Inc. and Leucadia National Corp. have gained control of the North American loan origination and servicing business, valued at more than $240 billion, of Capmark Financial Group Inc. Berkadia Commercial Mortgage LLC replaces Capmark's name, but plans to keep the headquarters in Horsham, Pa., as part of the takeover plan. The buyers won rights to the third largest servicing portfolio in the U.S., with ties to Fannie Mae, Freddie Mac, FHA and life insurance companies and asset management operations. The new Berkadia will have more than 20 origination and servicing offices in U.S. and one in Hyderabad, India. "We are impressed by the existing management team and will support them in positioning Berkadia to take advantage of opportunities created by the ongoing dislocation in the commercial real estate industry," said Warren Buffett, CEO of Omaha-based Berkshire Hathaway. Michael I. Lipson, a Capmark executive board member since 1996, was named Berkadia's president. The board will include two representatives each from Berkshire Hathaway and New York-based Leucadia National. Berkadia plans to hire more than 1,000 of Capmark's estimated 1,500 employees. "Over the years, tremendous effort has gone into building these platforms," said Lipson. "It is very gratifying that Berkadia recognized not only the value of our business, but also the importance of our employees." ................................................................ Icahn Poised for Buy-In Of Trump Resorts' Debt NEW YORK – Carl C. Icahn has aligned with Beal Bank and Beal Bank Nevada to buy the first lien bank debt of Trump Entertainment Resorts Holdings LP, owner of the Trump Taj Mahal, Trump Plaza and Trump Marina properties in Atlantic City. Icahn plans to team with Beal Bank on a reorganization plan that's been proposed to the U.S. Bankruptcy Court, District of New Jersey, a move that the financial institution said should allay all concerns about the proposal's feasibility. "We reached out to Mr. Icahn to capitalize on his extensive experience both in the gaming industry and in turning around troubled companies. We think that this team now has all of the tools necessary to quickly and successfully emerge from bankruptcy and rebuild a best in class operation," Andy Beal, president and CEO of the Dallas-based bank, said in a press release. Icahn said his "great faith" in the city was one of the underlying motivations for the investment. Citing Trump's two bankruptcies in five years, Icahn added that the situation "demands a measured and conservative approach, including minimizing both outstanding debt and the likelihood of a third bankruptcy." He added that the plan is "a roll of the dice to re-leverage these operations which may well turn into a roundtrip ticket to bankruptcy court." Beal Bank Nevada provided $500 million of first lien mortgage facility for Trump Entertainment in December 2007 and $100 million in 2004. The 2009 bailout calls for Beal's capital to be used to pay off Trump's other creditors and allow Trump to emerge debt-free from Chapter 11 bankruptcy. ................................................................ Pennsylvania Mixed Use Gets $4.2 Million THORNDALE, Pa. – The 57,400-sf Caln Plaza has been bought by an investment group for slightly more than $4.2 million. The asset consists of retail space, apartment building and self-service car wash. Investor Scott G. Homel and Pintzuk Brown Holdings LLC of Jenkintown, Pa. acquired the mixed-use asset at the corner of Route 30/Lincoln Highway and Caln Road from a local private investor. Internet research shows Caln Plaza is fully leased. It sits on a 10-acre tract at a hard corner with Route 30 frontage. Originally listed for $4.8 million, the buying opportunity was presented with an 8.8 percent cap rate that would yield nearly 11 percent cash-on-cash on available debt. Other details available on the Web showed there were 10 years remaining on the net-leased retail lease. Matthew Gorman, Tom Gorman and Michael Shover, investment specialists in Marcus & Millichap Real Estate Investment Services' Philadelphia office represented the seller. The buyer's team included the Gormans along with Derrick Dougherty, Mark Taylor and Dean Zang, also with the brokerage firm's Philadelphia team. "It's fairly rare to see well-located retail property change hands in Chester County. That, combined with our ability to reach so many qualified buyers, drove very strong interest in the property," Tom Gorman said. "Our buyer did a great job separating from the competition for this property because they saw long-term upside as well as a solid going-in return." ................................................................ Streambank Planning Auction Of Tavern on the Green Brand NEW YORK – Tavern on the Green LP, a New York icon, will hit the auction block, with Streambank LLC tapped to sell the intangible assets. The landmark real estate is owned by the city. The limited partnership filed a Chapter 11 bankruptcy in September after the city decided against renewing its concession agreement, which has been in place since 1974. Michael Desiderio is Tavern on the Green's president and COO. Because Streambank's selection is pending before bankruptcy court, the auction date has yet to be set. Up for sale is the restaurateur's trademark, Web site, URL and customer data. The city of New York and the partnership are embroiled in a legal battle over ownership of the Green name. "Few restaurants in the United States or perhaps the world rival Tavern on the Green in terms of brand recognition," said Gabe Fried, managing member and founder of Needham, Mass.-based Streambank. "This is a truly unique and valuable IP portfolio, for which there are numerous possible applications such as franchising, catering, prepared foods, cook books and much more. This is a unique opportunity and we believe there will be substantial interest in the marketplace for these assets." Tavern on the Green opened in 1934 in an 1870 Victorian Gothic structure on the west side of Central park. The restaurant closed in 1974, with restaurateur Warner LeRoy stepping up to claim the lease, pump $10 million into a renovation and reopen the landmark in August 1976. "This sale offers a rare opportunity for a buyer to capitalize on the rich equity of a truly exceptional brand," said Jennifer Oz LeRoy, Tavern on the Green's CEO. "As we transition the business, we will look for a buyer who will be true to our legacy as an extraordinary venue where people celebrate their most important events." ................................................................ CBRE Marketing $2 Billion Portfolio SACRAMENTO, Calif. – CB Richard Ellis Group Inc. has jumped into the sale-leaseback marketing of 8.7 million sf of state office buildings in Los Angeles, planning to deliver a return of more than $660 million for California's budget. Gov. Arnold Schwarzenegger ordered the sale in June, triggering a hunt for a brokerage firm. CBRE topped four companies vying for the honors.California's plan is to sell the buildings to investors by midyear 2010 and then ink long-term leases to secure the addresses. The to-go list includes the 97,000-sf Judge Joseph A. Rattigan Building in Santa Rosa and 24-story, 863,000-sf Elihu M. Harris Building in Downtown Oakland. The properties are valued at more than $2 billion. "The Governor was clear that we must re-think how we manage the state’s real estate," said Ron Diedrich, acting director for the California Department of General Services. Kevin Shannon, CBRE vice chairman, said the disposition is the largest office portfolio available in the nation. "The offering is ideally suited for what the majority of investment capital is seeking right now which is stable leased product," he added. The competitive bidding process produced a contract with commissions of "substantially less than one-half of one percent" of the sale prices, according to a press release. ................................................................ Construction Ramping Up in 2010 On World's Largest Wind Farm ARLINGTON, Ore. – Caithness Energy has the majority of permits in hand to start development on the world's largest wind farm – 30 square miles in north-central Oregon. Work starts next year, with completion planned for 2012. The Shepherds Flat farm, crisscrossing Gilliam and Morrow counties, will cost $2 billion to develop. GE Power & Water has won a $1.4 billion contract to supply turbines for the 845-megawatt project. The 338 turbines will be installed in 2011 and 2012, according to a press release. The pact calls for 10 years of operational and maintenance services. "The Shepherds Flat project will add more renewable energy to the west coast’s energy mix and help the region meet its demand for clean energy," said Les Gelber, a partner of New York-based at Caithness Energy LLC. The project is estimated to add $16 million annually of direct economic benefits to the state and create 400 construction jobs and 35 permanent positions. The project will require 85 miles of road to be built and 90 miles of power connection to the grid. Investing in the development is GE Energy Financial Services, which has a portfolio of more than 40 wind farms. Shepherds Flat is the first wind farm in North America to use GE's 2.5xl turbine, which has proven its value in Europe and Asia. GE will assemble the turbines at its plant in Pensacola, Fla. "Our capability to build these machines here in the United States and provide local resources and expertise were key factors in winning the contract with Caithness," said Steve Bolze, president and CEO of GE Power & Water. Southern California Edison has signed three 20-year power purchasing agreements for Shepherds Flat. According to GE's press release, the wind farm project was made possible because of California's renewable portfolio standard. Shepherds Flat will meet supply more than one-tenth of Southern California Edison's overall renewable energy portfolio and generate enough clean energy to power about 235,000 households. ................................................................ Green Street Lands $11 Million For 95,700-SF Adaptive Reuse ST. LOUIS – A former streetcar repair facility, envisioned as a key piece of the North Riverfront Business Corridor, has secured $11 million of New Markets Tax Credit (NMTC) backing to finance the 97,500-sf makeover from industrial to office and retail space. Green Street Properties LLC of New York is the developer of Green Park Broadway. Enterprise Community Investment Inc. of New York closed the transaction with US Bancorp Community Development Corp. as the NMTC investor. Additional financing came from Pulaski Bank. Green Park Broadway will be built to LEED standards. The project will create 105 construction jobs and 40 permanent positions. Green Park Broadway is Enterprise's first investment from of a $95 million NMTC allocation from the U.S. Treasury Department's community development financial institutions fund. Two more green developments will be funded by year's end, according to Joe Wesolowski, senior vice president for Structured Finance, Enterprise Community Investment. Green Street Properties is one of several developers involved in the $43 million redevelopment of the 49-acre North Riverfront campus. The plan, unveiled in 2008, called for a 652,000-sf industrial complex as part of the redevelopment. The vacant streetcar facility is located next to a MetroBus transfer center. "We believe that Green Park Broadway will be a catalyst for further investment in the North Riverfront business corridor," said Phil Hulse, principal of Green Street Properties. "The teamwork between Enterprise, USBCDC, Pulaski, the St. Louis Development Corp. and Green Street is an example of the type of successful public-private partnerships that are critical to moving development projects forward today." ................................................................ Thayer Poised to Start $600 Million-Plus Plan ANNAPOLIS, Md. – Thayer Lodging Group has closed out capital fund-raising campaign, reeling in about $280 million of equity commitments for Thayer Hotel Investors V LP and Thayer Hotel Investors V-A LP. The equity will fund $600 million to $700 million of hospitality acquisitions during the next three years. The Annapolis, Md.-based investment group's two funds are the largest in its 18-year history. "Given the current economic environment, we are particularly gratified that more than 70 percent of Fund V investors also were participants in our previous funds," said Frederic V. Malek, Thayer's co-chairman. Thayer has acquired about $1.8 billion of hotels and resorts since its inception. Malek said all funds have brought a combined 29 percent internal rate of return and a 2.6 multiple on invested equity. "We believe the next few years will present the best hotel investment opportunity in a generation," said Leland C. Pillsbury, Thayer's co-chairman and CEO. "Hotel cash flows are being dramatically impacted by record declines in revenue per available room (RevPAR) due to the worst recession since the Great Depression. The current credit market dislocations, combined with the severe deterioration in hotel fundamentals, will create a wide array of acquisition opportunities." Through Fund V, Thayer is targeting upper-upscale and luxury hotels requiring extensive renovations, repositioning, rebranding and operating cost reductions. Target markets are high barriers to entry in the U.S. Quality assets with debt issues also are on Thayer's buy list, using its capital to provide equity to help facilitate workouts and financial restructurings. "We don't anticipate that the U.S. hotel industry will experience a meaningful recovery until 2011, which will result in more assets coming to the market in the immediate future," said Bruce Wiles, Thayer's COO. "We expect the acquisition market to accelerate substantially in 2010 and intend to capitalize on our reputation for a creative, collaborative approach to working with lenders and owners to structure transactions." ................................................................ Ashford Transfers 772-Key Hotel To Court-Appointed Receiver DEARBORN, Mich. – In recent days, Dallas-based Ashford Hospitality Trust Inc. and the special servicer of a $29.1 million first mortgage transferred the 772-room Hyatt Regency Dearborn to a court-appointed receiver. In a press release, Ashford said the move has eliminated the REIT's remaining 2010 debt. It also disclosed talks have been under way since June for a consensual foreclosure or deed in lieu of foreclosure for the hotel at 600 Town Center Dr., right across the street from Ford Motor Co.'s world headquarters and the Henry Ford Museum. Ashford took a $10.9 million impairment on the asset in the second quarter after stopping loan payments in June. In an SEC filing, the REIT concluded "due to the effect of market conditions in the region, the operating cash flows from the hotel property are not anticipated to cover the principal and interest payments on the note and the related capital expenditures on the property." Part of the process in June was to determine fair market value. Based on eight hotel sales in the Midwest, the value range ended up $33,000 per key to $125,000 per key. As a result of the transfer, Ashford's next debt maturity will be in 2011, when $229 million comes due. The REIT's average interest rate is 3.62 percent. At the end of September, Ashford was carrying $197.9 million of unrestricted cash on its books. ................................................................ McCarthy Lands $92 Million Project SAN DIEGO, Calif. – Trustees of San Diego Mesa College have approved a $92 million contract with McCarthy Building Cos. Inc. to build a 180,000-sf math and science building. The addition to the campus at 7250 Mesa College Dr. is being funded by the $1.5 billion Propositions S and N construction bond program, which is funding upgrades at Mesa, City and Miramar colleges. The St. Louis-based McCarthy's California division also built the college's 50,000-sf Allied Health Building. McCarthy is slated to start work in September on the math and science building. Delivery is slated for November 2012.The four-story building was designed by Architects | Delawie Wilkes Rodrigues Barker. It will be constructed of structural steel with concrete shear walls and an exterior curtain wall, with many of the latest sustainable features as part of the design in a bid to win LEED Silver certification. Two campus buildings will be razed on the development site. McCarthy project director Robert Betz said the biggest challenge facing the construction team is the location on a compact 200,000 sf site right in the middle of the campus. "Project access is a major issue that will pose ingress/egress as well as subcontractor scheduling challenges," Betz said. "We are in the process of devising a plan that will allow us to work within the site constraints while minimizing disruption to ongoing traffic and activities at the campus during the construction period." The project team includes Hope Engineering for structural engineering and X-nth for mechanical and electrical engineering. Gafcon is the program manager for the Propositions S and N construction program for the San Diego Community College District. ................................................................ Structural Glazing Leases 32,805 SF TOLLESON, Ariz. – Before the calendar flips, Structural Glazing Systems Inc. will move into 32,805 sf at Westside Business Park. The deal was sealed with a five-year lease. The company has leased space in building one at 8590 W. Buckeye Rd., one of four buildings in the 1.1 million-sf development owned by LBA Realty of Irvine, Calif. Structural Glazing is relocating from 405 N. 75th St. Bill Bayless and Andrew Brigham with CB Richard Ellis' Phoenix team represented the tenant, who is getting additional manufacturing space and new showroom space with the move. Allen Lowe and Matt Hobaica of Lee & Associates Commercial Real Estate Services in Phoenix represent the landlord. ................................................................ Cole Pays $6.1 Million for Publix Store BIRMINGHAM, Ala. – Inland Western Retail REIT, continuing its push to clear non-core assets from its books, has sold a 44,271-sf Publix grocery store in Birmingham's Mountain Brook area. Cole Real Estate Investments of Phoenix paid $6.1 million for the asset at 3141 Overton Rd. in a free-and-clear trade, according to Holliday Fenoglio Fowler LP. Leading the marketing team for the Oak Brook, Ill.-based seller was HFF director Jim Hamilton. The Lakeland, Fla.-based Publix Supermarkets Inc. has leased five-year-old store on 4.8 acres through November 2024. "There are only three competing grocers in the immediate Mountain Brook area, encouraging strong sales and stability at the property," Hamilton said. "In addition, the Mountain Brook area is an extremely affluent area of Birmingham with an average household income of more than $132,000 within a three-mile radius from the property." ................................................................ UPDATE Simon Property, Prime Outlets Working $2.3 Billion Buyout INDIANAPOLIS – Simon Property Group Inc. has set a $2.3 billion plan in motion to add 8.2 million sf in 22 outlet centers to its portfolio in a lock, stock and barrel buyout of Baltimore-based Prime Outlets. Under the agreement, Simon will pay $0.7 billion of equity for the owners' interests in Prime Outlets in an 80-20 split of cash and common operating partnership units. The deal includes Simon's assumption of Prime's debt and preferred stock. "Prime Outlets is an excellent opportunity for Simon as it represents a strong strategic fit for our existing Premium Outlet portfolio and enhances our leadership position in the outlet business," said David Simon, chairman and CEO of the Indianapolis-based company. "Following the completion of this transaction our outlet portfolio will have 63 centers comprising approximately 25 million square feet." Simon will fund the equity cash from existing capital sources. The buyer was advised by UBS Investment Bank and JP Morgan. Its broker was Fried, Frank, Harris, Shriver & Jacobson LLP. Prime's portfolio was 92 percent leased and generates about $370 of annual sales per sf. The seller's properties are located in major metropolitan areas, including the 672,093-sf Prime Outlets San Marcos in Central Texas. Prime's largest center is the 773,368-sf Prime Outlets Orlando and its smallest is the 145,966-sf Prime Outlets Naples, also in Florida. The portfolio's largest concentration is Florida, where it also has outlet centers in Ellenton, St. Augustine and Florida City. In a related move, Simon entered into a new unsecured credit facility to lift its revolving borrowing capacity to $3.56 billion. The new financial agreement has an accordion feature up to $4 billion and matures March 31, 2013. The interest rate is LIBOR plus 210 basis points. Simon also built in a money market competitive bid option so it can hold auctions at lower pricing for short-term borrowings. Simon reported it received lender commitments from 34 financial institutions. ................................................................ Metrocenter Draws $6.2 Million PHOENIX – The 49,302-sf Metrocenter, leased for the long term to 24 Hour Fitness, has sold for $6.2 million to a limited partnership in the metro. Kyle Matthews, senior associate in Marcus & Millichap Real Estate Investment Services' Encino office, represented the buyer of 10046 N. Metro Parkway West, Phoenix Metro Center Fitness LP. Dave and Chris Maling, both vice presidents in the brokerage firm's Los Angeles office, represented the seller, Highland MC LLC. ................................................................ Jekyll Island Revitalization Under Way JEKYLL ISLAND, Ga. – With $50 million earmarked for a revitalization effort, the Jekyll Island Authority has broken ground on the first leg of a multi-phased makeover for the popular tourist island. The first phase is the 20-acre Great Dunes Park, which will include an 8,000-sf environmental area for children and a walkway to the proposed $120 million Jekyll Island Beach Village. The beachfront park will neighbor a new convention center. Great Dunes Park will be developed by Southern Wilderness of Edison, Ga., which won the sealed bid competition at the end of last month with a $2.2 million proposal. Ground will break on Jekyll Island Convention Center after Great Dunes Park is completed. The center will have more than 120,000 sf of meeting and event space and outdoor terraces with views of the ocean and dunes. Other revitalization efforts will include reworking the entry corridors to the island along Jekyll Island Causeway and Beachview Drive and a new service station and food mart to replace one that was closed earlier this year. Verizon Wireless has added a tower to enhance calling capacity and broadband access. The Jekyll Landmark Associates, an affiliate of the island's club hotel, and the authority is undertaking an adaptive reuse of the Morgan Tennis Center, built in 1929. It will be used for meeting and convention activities as the revitalization advances. Jekyll Island Beach Village's developer is planning to invest $120 million into building 30,000 sf of retail space, 60 lofts, 150-room economy hotel and 200-key mid-scale hotel. Also planned is a 160-unit, vacation-ownership or cottage development. In January, the 138-room Hampton Inn & Suites will open, marking the first hotel ribbon-cutting in 35 years on the island. The beachfront hotel will be jointly owned by New Castle and Jekyll Ocean Oaks LLC, owner of Jekyll Island Club Hotel. The revitalization is projected to create 200 construction jobs with a payroll of more than $56 million. "Jekyll Island was first purchased by the state as a wonderful and special place for all Georgians," said Jones Hooks, Jekyll Island executive director. "On completion, Jekyll Island will be back on the map as a spectacular place to live and visit in Georgia, and will once again be known as one of the premier travel destinations in the Southeast." ................................................................ West Hollywood Site Fetches $901 per SF WEST HOLLYWOOD, Calif. – A local investor has pocketed the deed to a retail property owned by the estate of the late Joey Bishop, paying $6.2 million or $901 per sf for a pair of multi-tenant buildings on two lots in West Hollywood. The listing drew 23 offers. Sakhi Properties LLC bought 359-373 Robertson Blvd. to house its business, Amadi Carpets, which currently is located right across the street. The buyer's broker was Mike Tingus, president of Lee & Associates-LA North/Ventura Inc. Representing Joey Bishop Productions Inc. was Jay Martinez, principal in the same Lee & Associates' office as Tingus. "While this $901-per-square-foot price tag may seem huge, it's important to remember that retail properties in this same location were selling for much, much more before the recession set in," Martinez said. In June 2008, a 4,644-sf retail building at 146 S. Robertson Blvd. fetched $3,143 per sf. Sakhi bought two buildings, totaling 6,876 sf on a 13,142-sf, two-lot parcel with 209 feet of frontage along Robertson Boulevard. The property is situated between Beverly Boulevard and Melrose Avenue, just minutes from the city's most prestigious shopping districts. According to a press release, the property was tied up in litigation following the entertainer's death in October 2007. It was listed in April for $8 million in an estate sale, drawing 23 offers that were pared to seven for a best-and-final faceoff. "The majority of offers were from investors," Martinez said, "however, as an owner-user, this buyer was able to finance through Bank of the West with 10 percent down and an SBA loan, making the offer very competitive." ................................................................ Receiver Named for 2600 Michelson IRVINE, Calif. – Orange County Superior Court has appointed Grubb & Ellis Co.'s Hans Mumper as receiver of Maguire Properties Inc.'s 2600 Michelson, a 310,000-sf, class A office building. The asset will be reintroduced to the market with "an intensive marketing campaign," Mumper said. "This property will once again become one of the outstanding assets in the market."Greg May and Oliver Fleener, both senior vice presidents in Grubb & Elli's Newport Beach office, will be responsible for leasing the asset. There is 80,000 sf of open space. "During this current business cycle it is also very important to make the market aware that the ownership structure is fully capable to fund tenant improvement and commissions. We have already received numerous inquiries since we took the leasing assignment and are involved in negotiations with a number of tenants," May said. ................................................................ Rolling Stone Founder, Partners Plan New Hollywood Venue LOS ANGELES – Rolling Stone magazine founder Jann S. Wenner and Lucky Rug Group are teaming to take the brand to the next level, leasing 10,000 sf for a theme restaurant, bar, lounge and upscale private event space. The magazine-inspired venue will open next summer in the Hollywood & Highland Center. Rolling Stone's multi-level location is close to the Hollywood Walk of Fame, Grauman's Chinese Theater and the Kodak Theatre. Wenner and Lucky Rug principals Niall Donnelly and Joe Altounian hired Los Angeles' Brodin Design to create a venue with exposed black brick, tufted leather and vaulted ceilings, with an antique iron staircase as a focal point. "We've been looking for the ideal opportunity to expand the Rolling Stone brand for some time," Wenner said. "Southern California and the city of Los Angeles are deeply entrenched in the history of both Rolling Stone and rock music, and we're excited to bring to life Rolling Stone magazine in Hollywood through what will be a very special place." Donnelly was groomed in the trade in the United Kingdom and Ireland, where he operated several popular bars and clubs. The Irish Times recently named him as one of the Top 10 Irish entrepreneurs to watch. Altounian has spent the past decade working SoCal's commercial and residential real estate markets. The two formed Lucky Rug Group earlier this year, leveraging their combined expertise for entertainment properties and real estate. "We are both excited and determined to bring the spirit of the magazine to life - the edginess, the coolness, the classiness and the timelessness - in making this venue a place to see and be seen in," Donnelly said. The Hollywood & Highland Center draws more than 15 million visitors annually, a destination with more than 60 leading retail shops, nine restaurants, Grauman's Chinese Theatre, two nightclubs, Lucky Strike Lanes and the 640-key Renaissance Hollywood Hotel & Spa. ................................................................ National Health, Care Foundation Ink 2nd Part of $123 Million Plan MURFREESBORO, Tenn. – National Health Investors Inc. (NHI) plans to spend $67 million for six skilled nursing facilities in the Florida portfolio of Care Foundation of America. The deal is slated to close within three months. The nursing homes, totaling 780 beds, are leased to affiliates of Health Services Management Inc. Annual rent is $6.2 million, according to a press release. The buyer's release said the six-property portfolio will result in a dismissal of litigation between buyer and seller, which began with the seller's Chapter 11 bankruptcy filing in the U.S. District Court for the Middle District of Tennessee just prior to a promissory note to NHI coming due. The properties have been part of NHI's mortgage loan portfolio for 16 years. In July, NHI bought four skilled nursing homes in Texas for $55.5 million. The two purchases, costing $122.5 million, result in a 1,275-bed portfolio in Texas and Florida. Under the most recent purchase agreement, the seller will pay off a $22.9 million balance at closing. NHI said the agreement already has won approval from Tennessee's attorney general and is awaiting bankruptcy court's nod. ................................................................ DuPont Fabros Secures $150 Million Loan WASHINGTON, D.C. – Using an Ashburn, Va., asset as collateral, DuPont Fabros Technology Inc. has finalized a $150 million loan with a syndicate of lenders led by TD Bank. The five-year loan has a floating rate of LIBOR plus 4.25 percent and a 1.5 percent floor. DuPont's collateral is the recently finished ACC5 data center. The new capital will be used to retire a $25 million loan secured by the data center, construct the asset's second phase and fund an interest reserve of $10 million. The loan has an accordion feature for new lenders to join the syndicate and expand the facility by another $100 million if certain leasing and other covenants are met. Last month, two new leases pushed occupancy to 79 percent in the 360,000-sf data center on the Ashburn Corporate Campus near Interstate 66 and Dulles Toll Road. The second phase, slated for completion in October, is 50 preleased. "We are pleased to have secured this loan in a challenging credit environment," said Hossein Fateh, president and CEO of the Washington, D.C.-based company. ................................................................ Inland Western REIT Collects $90.5 Million for Data Center SANTA CLARA, Calif. – Inland Western REIT Inc. has reeled in $90.52 million from Digital Realty Trust for bragging rights to Bayshore Data Center, a two-building facility with 185,000 sf of fully leased space in the Silicon Valley. The San Francisco-based buyer has picked up a 160,000-sf building at 1350 Duane Ave. and 25,000-sf structure at 3080 Raymond St. The buildings, sitting on 5.6 acres, are leased to Sprint Communications, Equinix and Layer42.Net. The asset abuts Silicon Valley Power and U.S. Hwy. 101. Bryan Ley and John Crump in Holliday Fenoglio Fowler LP's Los Angeles office and Gerry Rohm and Zane Sweet in San Francisco office marketed the property for the Oak Brook, Ill.-based seller. "This best-in-class data center attracted tremendous interest with its in-place assumable debt, growing demand for the product type and terrific location in Santa Clara," Rohm said. "Demand for data centers such as Bayshore continues to outpace supply by a margin of two to one. There is limited new supply in the data center cluster coming online in the next three years due to a lack of construction financing, which will continue to drive up rents for data center services." ................................................................ Diapers.com Inks 811,000-SF Lease GOULDSBORO, Pa. – Quidsi Inc., parent of Diapers.com, has leased 811,000 sf of a 1.3 million-sf distribution center developed by First Industrial Realty Trust Inc. The pact includes options for the balance of the building in northeast Pennsylvania. The initial move-in, which begins this month, will fill 411,000 sf at 600 First Ave. Diapers.com will use the location as a consolidation site for several locations in central Pennsylvania, according to a press release. "Our facility met Diapers.com's requirements for a sizeable, high quality distribution center, with flexibility for expansion aligned with its strategic plans, that is well-located to serve its growing customer base in the Eastern United States," said Peter O. Schultz Jr., executive vice president of Chicago-based First Industrial's East region. Jeff Thomas, First Industrial's senior regional director and market leader in Pennsylvania, led the leasing team, which included Steve Cooper, Gerry Blinebury and Jeff Williams of Cushman & Wakefield Inc. Bart Anderson of CB Richard Ellis represented the Montclair, N.J.-based Diapers.com. ................................................................ Penzance Nabs 30,000-SF Tenant RESTON, Va. – Reston Associates has leased about 30,000 sf of office space in the 100,000-sf, class A Reston Corner I. The Washington, D.C.-based Penzance owns and manages the four-story building at 12001 Sunrise Valley Dr., one of three in the 300,000-sf Reston Corner office park. Penzance leasing director Matt Pacinelli teamed with Terry Reiley, Jeff Roman and Tom Walsh of CB Richard Ellis to land the new tenant. Rich Rhodes and Rick Meadows with CresaPartners represented Reston Association, a service organization headed by elected members of the community.
Lexington Gets Sheds 456,304-SF Office COLUMBIA, S.C. – Lexington Realty Trust will net $12.3 million from the $36.5 million sale of a 456,304-sf office building, which is net-leased through Sept. 30, 2010, to Blue Cross/Blue Shield of South Carolina Inc. According to a press release, Lexington held a 40 percent stake in the asset and used $22.7 million of the sale price to satisfy the first mortgage. "We believe this disposition successfully mitigated our exposure to a potential vacancy in 2010 while providing us and our partner with a solid return on our investment over the holding period," said T. Wilson Eglin, CEO of the New York-based Lexington Realty Trust. Lexington has banked $5.4 million in three sales since September. "We expect to strategically dispose of non-core assets including retail, vacant and multi-tenant properties to improve our operating efficiencies and use the proceeds primarily to reduce our unsecured indebtedness," Eglin added. ................................................................ Thompson National, Dawson Form New Advisory Firm IRVINE, Calif. – Thompson National Properties and Dawson Co. are joining forces as Thompson Dawson Real Estate Services to target governmental and institutional clients trying to survive today's beleaguered real estate market. Founding partners Anthony W. "Tony" Thompson and Harold A. Dawson Jr. are armed with a business plan to offer asset management and receivership services, real estate investment management and consulting and development services. The initiative includes a specialty suite of services for public sector clients, such as build-to-suits, "green" construction and development management. "This venture is synergistic because of the firms' combined experience and complementary attributes. Our company's skills and background in all aspects of development and real estate endeavors with local, state, and federal governments, coupled with Thompson's asset management and capital-raising capabilities, truly give Thompson Dawson Real Estate Services an unmatched ability to build and deliver value," said Dawson, president and CEO of the Atlanta-based firm. Thompson Dawson Real Estate Services' affiliates are starting out with management duties for 15.7 million sf in 97 properties in 30 states and projected 2009 gross rental revenue of $200 million. The new company, which will maintain headquarters in Irvine and Atlanta, initially will focus on expanding its asset management portfolio, marketing services to government and public-private partnerships and adding to their development pipeline. ................................................................ Investor Plans Movie Studio In Shuttered Exxon Factory STRATFORD, Conn. – An investment group has inked a purchase agreement for a 292,000-sf shuttered manufacturing plant. The vision is to convert the former Exxon factory into a film production studio, Dogstar. "The tax credits for digital media and motion pictures offered by Connecticut played a major role in bringing this deal together," said Allen Christopher, managing member of DMG Studio Holdings LLC. "We believe our adaptive re-use in a high growth industry will create thousands of new jobs in Connecticut over the next few years." The building, sitting on 18.69 acres along Lordship Boulevard, will be retooled with 22,000 sf of office space, 100,000 sf of support services' space, educational space and 12 soundstages ranging from 2,500 sf to 16,800 sf with 37-foot ceilings. Dogstar's general manager will be Doug McAward, former chairman of the Connecticut Film and Television Commission and a veteran producer."Over the next few months we will be making numerous announcements regarding our anchor tenants, our key executives and various projects that will be produced here in 2010," he said. Bruce Wettenstein of Viddal Wettensten LLC in Westport, Conn., brokered the deal for DMG Studio Holdings LLC. The buyer's legal counsel is Edward Marcus of the Marcus Law Firm in North Branford, Conn. "This is a spectacular project for the Town of Stratford," said Bruce Alessie, Stratford's economic development director. "In terms of size and scope it is the largest individual project in our town that has come to fruition over the last few years. It is also doing so in a very tight economy. Christopher and his plan are to be commended." ................................................................ CapitalSource Assembling $495 Million for New Plan CHEVY CHASE, Md. – CapitalSource Inc. has sold the last of its net-leased, skilled nursing homes, collecting $100 million in cash for 37 facilities in the U.S. When all is said and done, the Maryland-based CapitalSource will have banked $495 million in cash from its net lease sales. The company will use $55 million of the 37-asset sale to repay debt related to the properties and park the balance in the corporate till. "This transaction is the final step in the monetization of our net lease portfolio," said John K. Delaney, CapitalSource's chairman and CEO. The company's fiscal moves will generate $331 million in cash and stock from the sale of 143 facilities to Omega Healthcare Investors Inc. and a $119 million net HUD mortgage financing. "With completion of the recently announced asset sales, we will exit the skilled nursing home ownership business, but actively continue to provide financing for owners and operators in the long term-care industry, an area of historic expertise at CapitalSource," said James J. Pieczynski, president of the CapitalSource Healthcare Real Estate Business. ................................................................ JLL Nabs Leasing Rights To Boston CBD Prize BOSTON – The Abbey Group has retained Jones Lang LaSalle to lease Lafayette Corporate Center, a mix of 575,000 sf of class A office space and 35,000 sf of retail in the city's financial district. The six-story building at 2 Avenue de Lafayette has direct access to the 500-room Boston Hyatt Hotel and Macy's. Lafayette Corporate Center has a three-level underground parking garage with 1,056 spaces. The location is supported by two MBTA stations plus nearby on-ramps to the Mass Pike and Interstate 93 and within 10 minutes of Logan Airport. "Lafayette Corporate Center is a highly efficient first class office project. The approximately 150,000 square foot availability offers a powerful infrastructure in a highly accessible location surrounded by Boston's best amenities," said Bill Barrack, JLL's managing director. The leasing team includes senior vice presidents Ben Heller and Tom O'Regan. Boston-based Abbey Group, also managing partner of the Boston Celtics, bought Lafayette Corporate Center in 2002. The asset was developed in 1982 and renovated in 1998-99. ................................................................ GSA Renews HHS Office As 190,000 SF Comes Due CHICAGO – The General Services Administration, facing expiration at month's end, has renewed 190,000 sf, agreeing to a term through Nov. 30, 2020, for the U.S. Department of Health & Human Services office. The deal keeps 233 N. Michigan Ave.'s occupancy at 91 percent. The federal agency's lease works out to an effective rental rate of slightly more than $30.50 per sf, according to the Jackson, Miss.-based landlord, Parkway Properties Inc. The lease terms included 10 months of free rent and $7.8 million of tenant improvements or additional rent concessions. In its press release, Parkway's management team said the $3 million of leasing commissions will be paid before the year ends. The HHS office has been located at 233 N. Michigan since 1999. "Their decision recognizes the long-term attractiveness of the Chicago East Loop market and our building and gives Parkway a stronger market position as we move through the recovery," said Steven G. Rogers, president and CEO of Parkway. ................................................................ Empty Warehouse Buy Opens Relocation Door PHOENIX – Majik Ventures LLC has paid $3.88 million for a vacant 77,778-sf warehouse to house its aluminum extrusion business. Alumizona Inc.'s move to Phoenix from Tempe will take place in August. Joe Porter, Pat Feeney, Dan Calihan and Rusty Kennedy in the Phoenix office of CB Richard Ellis Group Inc. represented the seller, RGR Development Corp. of Scottsdale, Ariz. The Tempe-based buyer of 824 E. University Dr. was represented by Bill Hudson of Ross Property Advisers, also from Scottsdale, and Adam Lopez of Sperry Van Ness in Phoenix. ................................................................ Avid's 203,000-SF Global HQ Heading to Northwest Park BURLINGTON, Mass. – Nordblom Co. and Nordic Properties have gained bragging rights to the largest office lease of the year in suburban Boston, landing a 10-year commitment from Avid for a 203,000-sf world headquarters location in the 285-acre Northwest Park. The global provider of digital audio and video production solutions is planning a June move-in to the class A office and research and development space from Tewksbury. The lease encompasses all of 75 Network Dr. and 10 N. Avenue and the first two floors of 65 Network Dr. Lease terms call for exclusive use of a pedestrian bridge connecting 65 and 75 Network Dr. Brian Hines and Michael Dalton, both partners in FHO Partners, represented Avid while Jones Lang LaSalle managing director Tamie Thompson, executive vice president Dan Cordeau and assistant vice president Dan Kollar represented Nordblom in the transaction. Northwest Park, situated at the interchange of routes 128 and 3, has more than one mile of frontage along Middlesex Turnpike. Development to date exceeds 2.5 million sf, with permits in place to expand to 4.6 million sf. "Avid recognized the value of relocating their headquarters to this world class office park, which is rapidly becoming one of the preeminent addresses on Route 128," said Og Hunnewell, president of Nordic Properties. "They join an exciting and growing group of technology companies in this expansive campus setting." Avid's finish-out will result in private offices, customer presentation space and lab. Erland Construction will build out Avid's offices at the Network Drive campus, with project management services provided by Nordblom Development Co. "This new setting will provide our colleagues with a modern, collaborative workspace and allow us the flexibility to create a state of the art facility to educate and entertain our growing global customer base," said Ken Sexton, Avid's executive vice president, CFO and chief accounting officer. Also, Nordblom Development Co. is on track to deliver a 132,000-sf headquarters building in January for Palomar Medical Technologies Inc. Erland also is the general contractor for the 15 Network Dr. build-to-suit. ................................................................ Report: U.S. Industrial Market Facing Grim Times Until 2011 BOSTON – In a fresh look at the U.S. industrial market, CBRE Econometric Advisors is predicting conditions will remain tepid next year, driving rents lower and increasing vacancies. According to the CBRE-EA researchers, formerly CBRE Torto Wheaton Research, rents will fall throughout 2010. Vacancy is predicted to hit its peak of 15.6 percent by early 2011. At the end of the third quarter, the U.S. industrial vacancy was 13.5 percent."While the worst may be over in terms of declining industrial space demand, the path to recovery will be slow," said Luciana Suran, a CBRE-EA economist. "The recession's combination of weak retail sales, inventory liquidations and a global trade collapse had a profound impact on the industrial market." CBRE-EA's analysis calls for negative absorption all next year although there is evidence that the pace of the decline will slow. Adding to the pressure is the sluggish global trade environment, which continues to battle the credit markets to finance import and export operations.Suran faulted companies for not paying more attention to efficiencies in warehousing and inventory during the good times. "Today many businesses are planning to maintain leaner inventories going forward even when the economy starts to rebound," she adds. On a positive note, CBRE-EA's team found biotech exports have grown throughout the recession, a good sign for markets with high-tech bases like Austin and San Jose. Export-oriented markets like Houston most likely will recover sooner due to export growth surpassing import growth thanks to the weak dollar and low consumer spending activity. ................................................................ $5.4 Million Wins Harris Teeter Store WILMINGTON, N.C. – A 57,320-sf Harris Teeter store has brought $5.4 million from Lake Davidson Village LLC, an affiliate of Chen Development LLC. Holliday Fenoglio Fowler LP directors Jim Hamilton and Richard Reid and associate director Kevin Hurley marketed the asset for Oak Brook, Ill.-based Inland Western REIT. Harris Teeter's lease for the 820 S. College Rd. store extends through 2015. ................................................................ Cornerstone, Babson Merging HARTFORD, Conn. – Cornerstone Real Estate Advisors LLC and Babson Capital Management LLC have set wheels in motion to create a global operation with $30 billion of managed and services assets. The deal, pending additional approvals, is expected to close in first quarter 2010. The plan calls for the integration of Babson Capital's Real Estate Finance Group into Cornerstone, with the buyer becoming a subsidiary of Babson Capital Management. The plan has yet to gain nods from London-based Protego Real Estate Investors LLP, Protego Real Estate Investors Finance LLP and their subsidiaries, all of which are awaiting acquisition to complete another phase of the Cornerstone plan and provide access to the European market. In a press release, Cornerstone said the transaction will make it one of the world's largest real estate investment advisors. The acquisition will provide Cornerstone with a full-service international platform with capabilities in public and private debt and equity. The merged organizations will have about 250 people in offices in the US, UK, Europe and Asia. "The Cornerstone, Babson Capital REFG and Protego teams all share a common goal of providing core and value-added investment and advisory services to institutional and other qualified investors," said Thomas M. Finke, chairman and CEO of Connecticut-based Babson Capital and Cornerstone's chairman. "The integration of these real estate entities enhances our ability to achieve this common goal and will lead to a broader and more comprehensive, seamless approach to real estate investment." ................................................................ NOAA Extends 137,044-SF Lease SUITLAND, Md. – The National Oceanic & Atmospheric Administration will stay anchored in a 137,004-sf office at the World Weather Building. The federal agency extended its lease at 5200 Auth Rd., the long-time location of the National Centers for Environmental Prediction and National Weather Service. Grubb & Ellis Co.'s senior vice president Kurt Stout and vice presidents Charles Dilks and Keith Lavey represented the local owner, Auth Road Associates. ................................................................ 207,000-SF Office Campus Earns $16.3 Million Refi MARLBOROUGH, Mass. – Great Point Investors LLC has replaced life insurance company debt with a five-year, fixed-rate loan for $16.3 million from Danvers Bank. The collateral is 207,000 sf of class A office space in two buildings inside the boundaries of Lake Williams Corporate Center. Holliday Fenoglio Fowler LP senior managing director Riaz Cassum and senior real estate analyst Lauren O'Neil in the Boston office arranged the financing. The Boston-based investor escaped a loan maturity with the refinance for 26 and 62 Forest St. The borrower's 119,016-sf building at 26 Forest St. and 88,324-sf structure at 62 Forest St. are 90 percent leased to four tenants: Advanced Micro Devices, International Power America, Netezza and Navilyst Medical. The buildings were completed in 2001. "HFF was able to secure a loan that was equal to the existing debt on the property, which was a major accomplishment in today's challenging capital market," Cassum said. "Additionally, the borrower was able to fix its cost of capital for the next five years at a very attractive interest rate." ................................................................ $29.50 Million Cash Buys Garment Center Building MANHATTAN – Savanna Investment Management LLC has sold a 144,000-sf office building in Midtown Manhattan's Garment Center for $29.5 million in cash to a pair of local entrepreneurs, who have started their reign with 15 percent occupancy. The 12-story building at 63-67 W. 39th St. came with 37,000 sf of air rights. Built in 1930, the property is zoned for commercial and residential uses. Marty and Eric Meyer, a father and son team at FirstService Williams, represented the seller. According to a press release, Savanna invested in the property 18 months ago, starting as a partner to a hedge fund and subsequently took full control by negotiating a deed in lieu of foreclosure with their lender. With the deed in hand, Savanna began a repositioning plan and aggressive marketing campaign to sell the structure. "We are pleased with the outcome of this transaction," said Kevin Chisholm, principal of the New York-based Savanna. "Our platform's capacity to originate a high-yield loan, buy out our partner, complete a deed-in-lieu with the borrower and then successfully sell the property while dual-tracking a repositioning plan has enabled us to turn a profit despite the horrific real estate market." ................................................................ APAC Adds 101,400 SF in Tucson TUCSON – APAC Customer Services Inc. has signed a five-year lease to add a second call center in the city, leasing 101,400 sf in Tucson Commerce Center I. Robert Mohr, chairman and CEO of Dallas-based Mohr Partners and Jarrett Dunaway, Mohr's business development manager, represented the Bannockburn, Ill.-based APAC along with the tenant's in-house representative, Scott Wilson. Tucson Commerce Center I, located at 2929 E. Corona Rd., is owned by Boston-based Intercontinental Real Estate Corp., which had Howard Kong and Bill Divito of Grubb & Ellis Co. as its brokers. "This was a great opportunity in this market to secure a beneficial, long-term lease rate for APAC. We recognize that time is critical for our clients, and we were able to complete this transaction in 60 days from start to finish," Mohr said. ................................................................ 676 Acres on Staten Island Under $80 Million Option STATEN ISLAND, N.Y. – International Speedway Corp. (ISC) has inked a definitive agreement to sell 676 acres of Staten Island land to KB Marine Holdings LLC for $80 million. The terms call for a closing before Feb. 25. The plan calls for Lorain, Ohio-based KB Marine to buy the full equity interest of 380 Development LLC, a wholly owned and indirect subsidiary of the Daytona Beach, Fla.-based ISC. The seller received $1 million of non-refundable earnest money at the signing of the agreement. In a press release, the seller said the buyer is eligible for a $5 million discount if the deal closes on or before New Year's Eve 2009. Brian K. Wilson, ISC's vice president of corporate development, said the goal has been to find a buyer that wanted to redevelop the site for its highest and best use, "which would be for port-related and logistic activities." He said KB Marine plans to do just that, creating jobs and economic benefits for Staten Island and the entire region. The seller took an $85 million impairment for its fiscal 2006 fourth quarter when it scuttled plans to develop a speedway on the land. It's also taking a $13 million impairment for third quarter 2009 due to the reduction in the land value. ISC estimates its total net proceeds, including the tax benefit, will result in $110 million to $115 million of incremental cash flow. ................................................................ $16.2 Million Offer Pending SPARTANBURG, S.C. – Healthcare Trust of America Inc. has placed a $16.25 million purchase option on the 108,500-sf medical office building on the campus of Mary Black Memorial Hospital. The three-year-old Mary Black Medical Office Building, connected to the 209-bed hospital, is 65 percent leased for the long term to the Mary Black Health System, an affiliate of Brentwood, Tenn.-based Community Health System. "This acquisition allows us to continue the growth we started in the South Carolina marketplace in September with a strategically located on-campus property that has significant tenant occupancy," said Mark D. Engstrom, executive vice president of acquisitions for the Scottsdale, Ariz.-based REIT. ............................................................... . HQ Global Finds Three More Offices WASHINGTON, D.C. – Dallas-based HQ Global Workplaces LLC has leased 53,391 sf of class A office space in the nation's capital and California. The tenant representatives are Steve Rigby, Peter Danna, Baron Aldrine and Mike Kay, all with CB Richard Ellis in Dallas. The Washington, D.C. lease was the largest of the triple play: 20,493 sf at 2300 M Street NW, owned by M Street Partners Holdings LLC. In Rosemont, Calif., HQ Global took 20,137 sf at 3017 Douglas Blvd., owned by GRAM Properties LLC and Paul Hulme. In Pleasanton, the team worked out a 10,761-sf lease for 4900 Hopyard Rd. with Principal Life Insurance Co. ................................................................ CBRE Gets $300 Million From Stock Sale LOS ANGELES – In an eight-day run on the market, CB Richard Ellis Group Inc. has sold more than 28.2 million shares of stock, ringing up about $300 million for the corporate till. BofA Merrill Lynch was the sales agent for offering. In a press release, the company said it will apply net proceeds to repayment of a portion of its outstanding debt of a senior secured credit agreement and general corporate services. In an SEC filing, CBRE acknowledge that it is "highly leveraged" and shouldering "significant" debt service obligations. In December 2006, the company borrowed about $2.1 billion of term loans to acquire Dallas-based Trammell Crow Co. It also took out an additional $300 million of term loans in March 2008. Interest payments totaled $167.2 million on the larger debt and $82.2 million for the 2008 loan. As of Nov. 2, interest rate on the senior secured agreement ranged from 3.75 percent to 6.35 percent. The senior facility matures between December 2011 and December 2015. In addition, CBRE has revolving credit loans related to the senior agreement coming due in June 2011 and 2013. The lenders are affiliates of Merrill Lynch. ................................................................ Dividend Capital Buys 166,991-SF Trophy PRINCETON, N.J. – Denver-based Dividend Capital Total Realty Trust Inc., keeping the price under wraps, has acquired a landmark office building, totaling 166,991 sf, in Central New Jersey's Princeton Corporate Campus. The five-story building at 1100 Campus Rd. is fully leased through May 2023 to Novo Nordisk Inc., which inked its lease in March 2008. The seller was the Patrinely Group of Houston and San Antonio-based USAA Real Estate Co. Holliday Fenoglio Fowler LP brokers in New York and Washington, D.C., negotiated the sale. The seller's team consisted of executive managing director Stephen Conley, senior managing director Andrew Scandalios, managing director Andrew Weir and directors Jeffrey Julien and Elizabeth Taylor. The three-year-old building has Route 1 visibility and direct access. "Princeton is a core, institutional submarket that continues to attract corporate tenants and owners due to the proximity to New York and Philadelphia and its access to a highly educated labor pool," Scandalios said. Princeton Corporate Campus is master-planned for five five-story buildings with 800,000 sf on 75 acres in the heart of the city's office market. ................................................................ Regency Secures Its Position In $1.73 Billion Partnership JACKSONVILLE, Fla. – Regency Centers Corp. is upping its ante in Macquarie CountryWide-Regency II LLC, exercising an option so it can remain the managing member. At the end of day, Regency will hold a 40 percent stake in a partnership valued at $1.73 billion. The partnership consists of Global Retail Investors LLC, Macquarie CountryWide and the Jacksonville, Fla.-based Regency. Global Retail is a JV between CalPERS and an affiliate of First Washington Realty Inc., which agreed last July to buy the majority of Macquarie's interest in the partnership. The first leg of the deal for 45 percent closed in late July, with an additional 15 percent awaiting lender consents. As part of the deal, Regency secured two options to buy the balance of Macquarie's interest at a 7.7 percent discount. If all goes as planned, Regency will get its extra stake in a Dec. 1 closing. And with it, Regency will remain the partnership's managing member and retain leasing and management rights to the 86-property portfolio. ............................................................... RICS Survey Finds Less Negativity NEW YORK – The Royal Institution of Chartered Surveyors' Global Commercial Property Survey has found North and South American professionals are less negative about conditions than they had been. The third-quarter survey focused on office, retail and industrial sectors. Real estate activity in the U.S. appears aligned with most countries in the Americas. Brazil, Chile, Colombia and Peru have exhibited gradual strengthening of their markets for most types of space, according to RICS. "General economic indices look slightly more positive and confidence is guardedly returning, but tempered by concerns of rising short-term unemployment and long-term inflationary fears," said Steve Williams, FRICS, global adviser to Real Capital Analytics and founding partner of New York consultants, Williams-Murdoch. "While recovery theorists abound, the market has yet to confirm the veracity or resilience of the market's green-shoots." RICS reported worldwide sentiment seems to be improving, particularly in Asia. In the U.S., survey findings showed commercial real estate professionals believe investor concerns are easing. Only 24 percent of the respondents expect investors to delay decisions versus 43 percent at the end of the second quarter. "Brokers report little or no improvement in commercial real estate in general," said Stephen Crosson, MRICS, senior partner of Dallas-based Crosson Dannis Inc. "There are many investors ready to purchase, albeit at significantly lower values than sellers are willing to accept." ................................................................ $13.2 Million Buys 93,372-SF Val Vista GILBERT, Ariz. – Houston-based Weingarten Realty Investors has bagged $13.2 million from the sale of the 93,372-sf Val Vista Towne Center to North American Development Group. The Markham, Ontario-based buyer, which has a divisional office in Scottsdale, Ariz., got a 96 percent-leased center at the crossroads of Val Vista Drive and Warner Road. Bob Young, Steve Brabant, Glenn Smigiel and Rick Abraham of CB Richard Ellis' Phoenix office represented the seller of the nine-year-old center. "Val Vista Towne Center has bucked the current trend and many of its retailers are performing well despite the recession," Young said. Its tenant mix includes Target, Ross Dress for Less, Staples and Petco. ................................................................ Six Leases Rope Off 67,348 SF CHICAGO – A six-pack of leases has been completed for Greater Chicago's east-west corridor, with the largest in the stack roping off 30,100 sf for the headquarters of Support Techs. Support Techs will move to 80 Exchange Court in a deal arranged by Ellen Steinbrecher and C.J. Kuehl, principals of Lee & Associates of Illinois LLC and Newmark Knight Frank Epic. The other five leases were negotiated by the Lee & Associates' team and CB Richard Ellis. At 700 Commerce Dr. in Oak Brook, marketing company Straight North renewed and expanded its lease to 4,288 sf. LineCo renewed 14,426 sf of office space at 2000-80 Springer Dr. in Lombard. In a third renewal, Purchase, NY-based IntegraMed re-upped 2,888 sf at 2056 Westings Ave. in Naperville. In new deals, Hearthside Food Solutions took 4,300 sf of office space at 1901 Butterfield Rd. in Downers Grove for its headquarters. Also, Ygomi LLC, a software provider, took 11,346 sf at 1420 Kensington Dr., also in Oak Brook. ................................................................ National Retail Properties Swaps $400 Million Line ORLANDO, Fla. – National Retail Properties Inc. has replaced a $400 million credit line, set to mature in May, with a comparably sized facility. The Orlando-based REIT's new line matures in November 2012 and is embedded with a one-year extension, according to a press release. The capital is priced at Libor plus 280 basis points with a 1 percent floor. National Realty also secured an accordion feature in the new deal, pushing the cap to $500 million. In spreading the word, the company said it isn't shouldering any outstanding borrowings on the existing line. Wells Fargo Securities and Banc of America Securities LLC were joint lead arrangers. Documentation agents were PNC Bank, National Association and U..S. Bank, National Association. Other participants included BB&T, Citicorp, Royal Bank of Canada, SunTrust Bank, Chevy Chase Bank, a Capital One Company, and Raymond James Bank. "We greatly appreciate the strong support of our bank group and the confidence they have in our business," said Kevin B. Habicht, executive vice president and CFO of National Retail Properties. "This facility gives us significant financial flexibility and enhances our ability to take advantage of acquisition opportunities." National Retail Properties' portfolio totals 11.4 million sf in 999 income-producing properties in 44 states. ................................................................ E&Y: Surviving the Commercial Fall NEW YORK – In a new white paper, Ernst & Young LLP is reporting an uptick in defaults and more bleak news on the horizon for the commercial property market in the US. The housing market, though, could be on the road to recovery. Citing Real Capital Analytics statistics, E&Y pointed out that the US has the highest level of distressed assets in the world, with the total pushing $140 billion and at least double that of Europe, the Middle East, India, Africa and Asia Pacific. "In Europe, commercial property markets in a few countries may be showing signs of green shoots," the E&Y experts concluded, adding China, Japan and Australia are again attracting international investment. "The US commercial property market downturn is generally forecast to worsen in the coming months," E&Y's team said. As the nation faces a slow recovery from the recession, demand for commercial space will weaken, vacancy rates will climb and more rent reductions are likely. Meanwhile, property values are more than one-third below their October 2007 peak. E&Y, citing Forbes, said US banks could end up shouldering roughly $240 billion of commercial loan losses, which could result in another 700 bank failures. E&Y pointed out that companies that acted quickly to refinance debt, even at the expense of a prepayment penalty, most likely are in better position to weather the long haul. Among those survivors are large homebuilding companies that used this year to build up significant cash reserves through capital raises. "These builders are well positioned for a turnaround," said Mike Gillmore, head of E&Y's real estate practice in the US Pacific Southwest region. In conclusion, E&Y's team concluded "the credit crisis and global recession have highlighted the need for companies to develop a plan of action to capitalize on opportunities, address the risks in their investment portfolios and operations and position their organizations to grow and compete in global property markets." Digital Realty Trust Gets Two Data Centers for $90.5 Million SANTA CLARA, Calif. – Digital Realty Trust Inc. has paid $90.5 million for a fully leased pair of data centers in the Silicon Valley. The buildings are located on 5.56 acres at 1350 Duane Ave. and 3080 Raymond St., across from the Silicon Valley Power substation in Santa Clara. To make the close, the San Francisco-based buyer assumed a $52.8 million mortgage with a 5.4 percent interest rate. The loan carries interest-only payments through its Oct. 1, 2012 maturity. The Duane Avenue building, totaling 160,000 sf, is triple net leased to a major telecommunications firm, which subleased the space to a leading collocation and IT services provider in 2004. The Raymond Street building, with 25,000 sf, is triple net leased to a local provider of Internet services and applications for businesses in California. "The buildings are strategically located near our existing Santa Clara facilities and should benefit from our operational efficiencies," said Scott Peterson, senior vice president of acquisitions for the buyer. ................................................................ Encore Plans $16 Million Courtyard D'IBERVILLE, Miss. – Dallas-based Encore Hospitality, targeting a May opening, is jump-starting construction on a $16 million, 125-room Courtyard by Marriott hotel in the 150-acre mixed-use Lakeview Village, an integral part of the city's Gulf Opportunity Zone. Encore Hospitality, a subsidiary of Encore Enterprises, expects to generate a $6 million construction payroll with 150 jobs for the project, which will be positioned along the five-lane Sangani Boulevard at an Interstate 10 junction. The hotel also will be located close to a new city park and Gulf Coast beaches. Pineapple Management Services Inc., also an Encore subsidiary, will oversee the property. "As the fast-growing gateway to Biloxi, D'Iberville is ideally situated in the I-10 corridor and a convenient stop for visitors traveling east and west. It has been rewarding to see all of the growth and investment taking place in D'Iberville over the last several years," said Dr. Bharat Sangani, chairman and CEO of Encore Enterprises, "and we look forward to continued growth in the future." ................................................................ Pax River Park Earns $8 Million Refi LEXINGTON PARK, Md. – The Hampshire Cos. has completed an $8 million refinance of Pax River Office Park, a seven building asset with 172,235 sf and 97 percent occupancy. The fresh capital will be used for upgrades, tenant improvements and leasing commissions, according to a press release from Holliday Fenoglio Fowler LP. The office park has five low-rise office buildings and two flex structures along Great Mills Road and one mile from the Patuxent River Naval Air Station. The asset's tenant roster includes Naval Air Systems Command, Lockheed Martin Corp., EMA, CACI and Serco. "Pax River Office Park's proximity to the NAS provides it with a distinct competitive advantage as fierce competition for government contracts draws and retains tenants to the office park," said Jon Mikula, an HFF senior managing director who teamed with associate director Michael Klein to arrange the fixed-rate financing with Maryland Bank & Trust Co. for the Morristown, NJ-based borrower. ................................................................ Palms Center Fetches $2.7 Million TAMPA – Putting a $2.7 million deal to bed, a Marcus & Millichap Real Estate Investment Services' broker has parked the fully leased 25,088-sf Palms Center with a local investor. Michael J. Jaworksi, an investment specialist in the firm's Tampa office, represented the local partnership that sold Palms Center at 15043 Bruce B. Downs Blvd. "The property has long-term leases and a great tenant history," he said. "The price was approximately $125 per rentable square foot on the two buildings." ................................................................ USAA, Regency Centers Strike $134 Million Deal SAN ANTONIO – USAA Real Estate Co. has taken an 80 percent piece of an eight-property, grocery-anchored portfolio from Jacksonville, Fla.-based Regency Centers Corp. The stake in the 813,193-sf portfolio cost $133.9 million. The Regency portfolio is 94 percent leased to 153 tenants. The properties are situated in Los Angeles and the San Francisco Bay Area, Houston and Dallas/Fort Worth, Orlando, Atlanta and Raleigh/Durham, NC. Grocery anchors include Kroger/Ralphs, Safeway Inc., Publix Super Markets while other leading space takers are the U.S. Postal Service, Longs Drugs (CVS/Pharmacy), Hallmark Gold Crown Stores and Subway. "The grocery-anchored portfolio, with long term leases in strong market locations will produce excellent cash flow and strong yields," said Pat Duncan, chairman and CEO of San Antonio-based USAA Real Estate Co. Hap Stein, chairman and CEO of Regency, said the eight properties have been in Regency's portfolio for several years, with all featuring "a strong operating history." Grocery anchors provide 42 percent of the portfolio's in-place revenue. The news hit the streets on the same day that Regency released its earnings, in which it reported that USAA paid $133.9 million for the portfolio. The cap rate was 8.75 percent. The seller also reported that USAA has secured a seven-year, interest-only mortgage with a 6.8 percent coupon in a 50 percent loan-to-value financing. In other third-quarter activity, Regency reported closing 1,139 new leases and renewals, totaling 3.8 million sf in its 440-property portfolio. It also disclosed it acquired two properties in a joint venture for $17.9 million and sold one for $20.2 million. The REIT also sold four out-parcels for $4.1 million. ................................................................ Private Buyer Gets Class A Office Pair SACRAMENTO, Calif. – A private investor has claimed two class A office buildings, totaling 190,000 sf, from an institutional joint venture. Edward Suharski, executive vice president, and Steven Golubchik and Seth McKinnon, both vice presidents, all with Grubb & Ellis Co.'s Institutional Capital Markets group, represented the seller of 10000 Goethe Rd. in Sacramento and 1650 Harbor Bay Parkway in Alameda. The buyer used in-house representation to negotiate the deal. The Grubb & Ellis team is touting the Sacramento sale as the largest single office deal this year in the county, but is not disclosing the sale price. Suharski said the real estate attracted private and institutional investment groups. "Ultimately a private buyer was selected due to their offering structure and their quick close," he explained. The Sacramento building sits within the bounds of the South Bradshaw Business Center. The 126,000-sf building, built in 1997, is fully leased for the long term to the state. The Alameda building, developed in 2001, totals 64,000 sf. It was 89 percent leased at sale time. ................................................................ Brennan Forms Investment Group CHICAGO – The co-founder and former president and CEO of First Industrial Trust has formed Brennan Investment Group LLC, adding a privately held industrial real estate investment company to the market. "We established Brennan Investment Group at one of the most opportune periods the industrial real estate market has ever seen," said Michael W. Brennan, chairman and managing principal of the new Chicago-based company. "With no legacy burdens, our firm is well positioned to capitalize on current and future market conditions in order to achieve outstanding risk-adjusted returns." The game plan is to acquire, develop and operate industrial properties in select major metropolitan US markets. The company's executive team includes Peter F. Murphy as co-founder, vice chairman and managing principal. He was principal of First Highland Management & Development Corp. of Boston. Also on board as co-founders and managing principals are Kareem M. Fikri, Robert J. Krueger, Britten Shuford and Kevin Smith. "Many of us have worked shoulder-to-shoulder and share a mutual hunger and vision for creating value for investors," Brennan said. "I'm thrilled such strong talent has joined me to build the new gold standard in industrial real estate firms." Fikri is credited with managing the first Sharia-compliant industrial fund in the US, a joint venture between First Industrial and the Kuwait Finance House. He was founder and president of Fik Investment Corp. prior to Brennan Investment's formation. Krueger came on board directly from First Industrial while Shuford had been co-managing partner and principal of Los Angeles-based Pacifica Capital Group. Smith also came from the First Highland camp, where he was a principal. ................................................................ BioMed, Progenics Redo Lease With 10-Year Term TARRYTOWN, N.Y. – Progenics Pharmaceuticals Inc. has reworked its leases with BioMed Realty Trust Inc., ending with a 148,000-sf agreement and a new 10-year term. The tenant's other pacts had expiration dates from 2009 to 2012. The pharmaceuticals company leases space on the Landmark at Eastview campus at 777 Old Saw Mill Rd. in Westchester County. Tarrytown's life sciences' campus is one of the largest privately owned science parks in New York, a package of five buildings and more than 751,000 sf. "We are very pleased with our expanding relationship with Progenics, one of BioMed's premier large, publicly traded life science tenants," said Alan D. Gold, the San Diego-based company's chairman and CEO. The reworked lease is a renewal, consolidation and extension rolled into one. Robert W. Baird & Co. analyst David AuBuchon reported that BioMed's third quarter leasing activity totaled 272,000 sf, of which 43,000 sf came through as renewals and extensions. BioMed's other quarter-end deal was an 80,000-sf lease at 301 Binney St. with the Broad Institute of MIT and Harvard. It too carried a 10-year term, according to the analyst. ................................................................ De Longhi Re-Ups 200,000 SF WOOD-RIDGE, N.J. – De Longhi America Inc. is holding firm to 200,000 sf of warehouse/distribution space. The Italian maker of high-end kitchen and home products leases space at 24 and 30 Passaic St., buildings owned by Wood-Ridge Industrial Associates in Wood-Ridge, NJ. The Grubb & Ellis team of Frank Lopriore, senior vice president, and John Donnelly, vice president, in Fairfield, NJ, represented the tenant. Team Resources handled negotiations for the landlord. ................................................................ Grubb & Ellis Raises $90 Million SANTA ANA, Calif. – In a resounding win for its latest stock sale, Grubb & Ellis Co. has collected definitive agreements to raise $90 million in gross proceeds from institutional buyers and accredited investors. A 45-day option is in play to sell another 100,000 shares of preferred stock on top of the 900,000 shares of a new issuance. The closing will be held on or about Nov. 6. The news sent the company's stock to $2.08 per share at Friday's closing after opening at $1.62 per share.In a press release, the company declared its intent to repay in full its credit facility at the agreed reduced principal amount equal to about 65 percent of the outstanding principal. The balance of the offering will be applied to general working capital and transaction costs. As part of the preferred stock offering, Grubb & Ellis' management said it will convert a $5 million subordinated loan, secured Oct. 2, to preferred stock plus pay any accrued interest. "This is a transformational event for Grubb & Ellis. Upon closing, Grubb & Ellis will be one of the stronger capitalized companies in the real estate services industry," said C. Michael Kojaian, the company's chairman and largest stockholder. "We are extremely pleased with the demand for the security and the quality of the institutional investors attracted to the company." JMP Securities acted as the initial purchaser and sole placement agent on the preferred equity offering. In another fiscal move, Grubb & Ellis plans to seek stockholder approval to amend its certificate of incorporation to increase the authorized capital of the company. "Upon completion of the transaction, the company will have a much improved balance sheet, with minimal debt obligations and additional working capital to fund our growth initiatives," said Richard W. Pehlke, executive vice president and CFO. "This positions us well to build on the strengths of our service and investment capabilities with increased operating flexibility." ................................................................ $98 Million Gaming Project Advances PERRYVILLE, Va. – Fraser Forbes Real Estate Services has arranged the acquisition of 36 acres in Cecil County to develop a $97.5 million, Hollywood-theme video lottery terminal facility. The developer is Penn Cecil Maryland Inc., a wholly owned subsidiary of Penn National Gaming. The Washington, DC-based Fraser Forbes negotiated the $14.6 million acquisition from Principio Iron Co. LP. "We are very pleased to have been involved in this exciting transaction as we believe it will yield great benefits for the citizens of the State of Maryland, the stockholders of Penn National Gaming and the Principio Iron Company," says Fraser Forbes CEO Rich Samit. Penn National plans to build a gaming facility with 75,000 sf of gaming space, 1,500 video lottery terminals and dining and lounge venues. The opening is slated for late 2010. ................................................................ 600,000-SF Retail Project Scuttled; Land Up for Sale LINDENHURST, Ill. – Putting the blame squarely on the recession, the owner of the proposed 600,000-sf Lindenhurst Village Green is selling 64-acre development site in northeastern Illinois. "With the state of the current economic and real estate climate, the decision has been made to list the planned Lindenhurst Village Green property for sale," explained Paul Buss, president of OliverMcMillan, part of the limited liability company planning the development. "The slowing of retail sales throughout the nation extended the property's project timeline and, ultimately, resulted in this decision." Lindenhurst Village Green's retail land sits at the intersection of Route 45 and West Grand Avenue, just west of the Interstate 94 Tri-State Tollway in Lake County. OliverMcMillan Lindenhurst LLC acquired the development site in April 2007.The 600,000-sf project was envisioned as an open-air lifestyle center connected to a 190-acre mixed-used urban village with 838 residential units, walking trails and open space. Lindenhurst Village Mayor Susan Lahr said leaders "understand" the developer's decision, but pointed out that any buyer would be required to "follow the same development plan" or start anew with working through the approval process. "Residents of Lindenhurst can be assured we will continue to work aggressively to attract a high quality, non-residential project to this property," she said. ................................................................ November Auction Set For 9,813-Acre Farm CLAYTON, N.M.- The 9,813-acre Seneca Valley Farm in northeastern New Mexico will come to auction in 19 tracts, ranging from six to 2,797 acres. The auction will be held Nov. 19. Champaign, Ill.-based Westchester Auctions will start the auction at 1 p.m. at the Clayton Municipal Airpark. "The Seneca Valley Farm offers a wide variety of investment options, appealing to a variety of interested buyers," said Scott Shuman, marketing director of the auction house's Western Region. " The farm provides opportunities for a successful crop and livestock operation on all of the various tracts."The Union County farm consists of 6,256 deeded acres and 3,557 acres of leased land, predominately irrigated acres and grassland. According to a press release, the farm's 10-year corn production averages 239 bushels per acre and wheat yield, 70 bushels per acre. "The Seneca Valley Farm is some of the most profitable farmland in northeastern New Mexico and will truly offer buyers great potential," Shuman said. "This investment will have the potential to prove profitable at the turn of ownership." ................................................................ $689 Million Data Center Sale Brewing FOSTER CITY, Calif. – Equinix Inc. has solidified a $689 million offer in cash and stock for Tampa-based Switch and Data Facilities Co. Inc., owner of 34 data centers in 22 markets in the US and Canada. The acquisition will add more than one million sf to the buyer's five million-sf portfolio. When the deal closes in first quarter 2010, Equinix will gain inroads to 16 additional markets, including strategic hubs such as Atlanta, Denver, Miami, Seattle and Toronto. Its existing portfolio consists of 45 data centers in 18 markets in North America, Europe and Asia Pacific. Switch & Data's return is the opportunity to expand, according to a press release. Buyer and seller said customers on both sides will benefit from "a stronger product portfolio and capacity pipeline in a market where demand continues to outpace supply.""Our complementary business models, coupled with Switch & Data's broad North American market coverage, provide a platform for strong growth as well as an opportunity to accommodate our customers' demands for additional services," said Steve Smith, president and CEO of Foster City, Calif.-based Equinix. Equinix's adviser is JP Morgan Securities Inc. and Davis Polk & Wardwell LLP. Switch and Data's lead financial adviser is Piper Jaffray & Co., with Deutsche Bank Securities Inc. and RBC Capital Markets as co-advisers. Switch and Data's legal adviser is Holland & Knight LLP. Raymond James & Associates Inc. provided a fairness opinion to the seller's board of directors. ................................................................ Wal-Mart Games Out Expansion BENTONVILLE, Ark. – Wal-Mart Stores Inc., outlining its global expansion plan, expects to spend $13 billion to $15 billion on capital expenditures in fiscal year 2011. This fiscal year, which closes Jan. 31, has resulted in $12.5 billion to $13.1 billion of cap ex. "Our plan for growth is clearly intended to increase shareholder value," said Tom Schoewe, executive vice president and CFO of the Bentonville, Ark.-based mega-retailer. "In the U.S., we're building new stores and accelerating the pace of our remodels because they have been so successful at winning and retaining customers." The retailer intends to target emerging international markets as well, including China and Brazil. The Walmart US' expansion will account for $7 billion to $8 billion of the 2011 projection while Sam's Club US is $700 million to $1 billion. Walmart International has been allocated $4.5 billion to $5 billion and the balance is set aside for corporate expansion. In the current fiscal year, the retailer has added 38 million sf worldwide, down six million from the year before. In fiscal year 2011, management expects to add about 37 million sf: Walmart US, 11 million sf; Sam's Club US, one million sf; Walmart International, 25 million sf.The US cap-ex plan will focus on remodels and building more efficient Supercenters. Under its Project Impact initiative, roughly 70 percent of the chain's US stores will be updated. The international expansion is being advanced through "organic growth," said Doug McMillion, president and CEO of Walmart International. "We will allocate capital, by country and by format, to improve returns from these investments." Walmart's existing portfolio has more than 8,000 retail units, representing 53 formats, in 15 countries. ................................................................ Crystals Earns LEED Gold C&S LAS VEGAS – Crystal's, the 500,000-sf retail and entertainment district for CityCenter, has achieved LEED Gold Core & Shell certification. It's the project's fourth LEED Gold. "From CityCenter's inception, we aimed to create a vibrant destination to demonstrate that a community can be both beautiful and sustainable for today and for future generations," said Cindy Ortega, MGM MIRAGE's senior vice president of Energy and Environmental Services. Designers estimate Crystals will save 1.8 million gallons of water through the installation of efficient water fixtures, a 38 percent savings over existing building codes. Other green initiatives include preferred parking for alternative fuel vehicles and use of wood from forests with sustainable management practices in place. Crystals' exterior was designed by Studio Daniel Libeskind and its interior by David Rockwell and Rockwell Group. CTG Energetics, Green Building Services, Viridian Energy & Environmental, Fore Solutions and Simon & Associates were Crystals' sustainability consultants. The 68-acre CityCenter, set to open in December, is a joint venture project of MGM Mirage and Infinity World Development Corp., a subsidiary of Dubai World. The developers have relied on eight internationally acclaimed architects to create the newest addition to the Strip. CityCenter's components include the Aria, a 61-story, 4,004-room gaming resort, and the city's first Mandarin Oriental and Vdara Hotel & Spa. The build-out calls for 2,400 residences and a 400-room luxury boutique hotel, The Harmon, which will open in late 2010. The project is being touted as one of the largest green developments in the world. Crystals' tenant roster includes Louis Vuitton, Prada, TIFFANY & CO., Ermenegildo Zegna, Roberto Cavalli, Christian Dior, Versace, Bulgari, Cartier, Hermes, Bally, Van Cleef & Arpels, Mikimoto, Emilio Pucci and ILORI. The project also will hold Eva Longoria Parker's first restaurant in Las Vegas, new dining concepts from Wolfgang Puck, a new pub by Todd English and Mastro's Ocean Club. ................................................................ Report: Green Building Gaining Favor NEW YORK – In a new report, McGraw-Hill Construction projects that green building retrofits will climb to 20 percent to 30 percent by 2014, estimating the market will generate $10 billion to $15 billion of business for the industry. Green retrofits and renovations now account for 5 percent to 9 percent or $2 billion to $4 billion, according to the report. "It is critically important that 20-30% of all retrofit and renovation activity will be green in five years because 98% of our buildings already exist, and they represent some of our most inefficient buildings," said Harvey Bernstein, vice president of global thought leadership and business development of McGraw-Hill Construction. The Green Building Retrofit & Renovation SmartMarket Report profiles more than 20 projects. Among the conclusions are half of all retrofits and renovations will be green in 10 to 15 years and the recession has encouraged adoption of energy- and water-efficient practices for renovation projects. The McGraw-Hill Construction report included input from Autodesk, CB Richard Ellis Group Inc., Siemens, UL Environment Inc. and the US Green Building Council. The full report is available at http://construction.ecnext.com/coms2/analyticshttp://construction.com/market_research/. ................................................................ $8 Million Buys Empty 48-Room Hotel MIAMI BEACH, Fla. – A Miami-based hotel owner has added to its portfolio, buying the vacant 48-room Leslie Hotel along Ocean Drive for slightly more than $8 million. "We were able to procure 15 offers from highly qualified buyers with various visions for the property," said Jason C. Goldfarb, senior associate for Marcus & Millichap Real Estate Investment Services in Miami. He teamed with vice president Mark J. Wohl and associate Lawrence M. Usher to represent Leslie Beach Associates LLC, seller of the 1244 Ocean Dr. property. The new owner plans to fully rehab the hotel, with an eye on reopening it in two years or less. "The buyers feel very optimistic and see this new acquisition as a great addition to their hotel portfolio through economies of scale," Wohl said. ................................................................ Wal-Mart Neighbor Fetches $1.4 Million GROVE CITY, Ohio – A private investor from Columbus, Ohio, has paid $1.45 million for a 2,381-sf net-leased retail building, with Chipotle Mexican Grill's name on the lease. The seller is a Dallas-based developer. John Reehil and Dan Yozwiak, investment specialists for Marcus & Millichap Real Estate Investment Services, represented the seller and seated the buyer at the table in a 60-day start to finish for the marketing. The restaurant, marking its fourth year at 1671 Stringtown Rd., has 15 years left on an absolute net lease, according to a press release. The sale closed at a 7.57 percent cap rate, giving the buyer an out-parcel property beside a Wal-Mart Supercenter. ................................................................ Homebuilder Gets $206 Million Backing LOS ANGELES – William Lyon Homes has secured $206 million from Colony Capital LLC and Colony Financial Inc. Colony Financial is kicking in $50 million, with the balance coming from other participating investment funds that it manages. "The liquidity provided by this facility provides William Lyon Homes with the resources and flexibility to capitalize on opportunities in the marketplace and to continue with our strategic initiatives," said Bill H. Lyon, president and COO of the 50-year-old homebuilding company headquartered in Newport Beach, Calif. In a press release, the borrower said the funds will be used to repurchase debt, restructure the balance sheet, general corporate purposes and opportunistic land purchases. The investment was made three weeks after Colony launched its IPO. “This first major investment is a testament to the relationships we enjoy in the commercial real estate marketplace and is viewed as a prototype for future transactions within the REIT," said Richard Saltzman, CEO and president of the Los Angeles-based Colony. "The attractive yield profile, high cash pay feature and first-lien security within the capital structure are what make this transaction attractive to Colony Financial." ................................................................ CBRE Brings Investment Banking to Americas LOS ANGELES – CB Richard Ellis Group has brought its UK-based investment banking platform to the Americas. The expansion play targets real estate owners and lodging and gaming companies eyeing recapitalization and restructuring strategies, mergers and acquisitions and capital fund raising. Glenn A. Carlin and John R. Perkins will lead the Americas investment banking business for CBRE. The veteran investment bankers have been named senior managing directors to head up the division. Carlin founded JP Morgan's lodging business in 1999 and its gaming group in 2002. Perkins spent the past two years at Banc of America Securities. Joining as a managing director is Eric Tanjeloff, who also came from JP Morgan to join the New York City-based investment banking group. ................................................................ TechTarget Takes 87,875 SF for HQ NEWTON, Mass. – Setting a relocation plan into motion, TechTarget Inc. has signed an 87,875-sf, class A office lease for Riverside Center. The keys turn to three floors in early 2010. TechTarget has picked Riverside Center's Building 1 at 275 Grove St. for its new headquarters office. The technology media company now leases space at 117 Kendrick St. in nearby Needham.Jones Lang LaSalle managing director Alex Dauria, senior vice president Keith Gurtler and associate Brendan Cohn negotiated the long-term lease for the landlord, Chicago-based Equity Office Properties. Colliers Meredith & Grew executive vice president Jim Elcock and vice president Elias Demakes represented TechTarget. The 500,000-sf Riverside Center campus abuts Riverside Station. The campus, located at the crossroads of the Mass Pike and Route 128, has three class A office buildings connected by a four-story, glass-enclosed atrium and parking for more than 1,500 vehicles in underground, structured and surface spaces. There is roughly 110,000 sf of contiguous space left to fill on the campus, which boasts a tenant roster that includes McKesson Corp., Rocket Software, Harvard Vanguard Medical Associates, UGL Unicco and Regus Business Centers. ................................................................ Brandywine Fills 72,173 SF RICHMOND, Va. – Brandywine Realty Trust has completed 72,173 sf in new leases and renewals for its office portfolio in Greater Richmond. Bon Secours Richmond Health System leased 12,218 sf of the 48,012-sf Arboretum V at 9210 Arboretum Parkway, one of eight buildings on the office campus. The tenant's broker was Birck Turnbull of Thalhimer/Cushman & Wakefield while Brandywine's in-house negotiator was Joey Caperton. Caperton also secured a new lease for 11,407 sf with Med Inc. at the Radnor, Pa.-based owner's 49,542-sf Arboretum II at 9200 Arboretum Parkway.Brandywine broker Rick Miller secured a 9,034-sf signing from Golder Associates for the 13,823-sf Interstate Center at 2100 W. Laburnum Ave. in the west end. The tenant's representatives were Joel Oppenheim and John Snow of the Oppenheim Group. "Lease renewal levels are consistent with what we have been able to accomplish historically and the pace of new lease executions is remaining stable," said Bill Redd, senior vice president and managing director for Brandywine's Central Virginia Region. ................................................................ Tanglewood Buys Under-Construction Lowe's LOWELL, Mass. – With delivery not due until April, National Development has sold a 153,000-sf Lowe's Home Improvement Center to Tanglewood Investors of Massachusetts. The under-construction retail store sits along Chelmsford Street at the junction of Interstate 495, Route 3 and the Lowell Connector. Jones Lang LaSalle's managing director Jim Koury, assistant vice president Nathaniel Heald and associate Brandon Dickason represented the seller and procured the buyer. "This is a prime location and one of the few new investment-grade retail sites coming on line in this market," said John J. O'Neil III, managing partner of National Development in Newton Lower Falls, Mass. "The aggressive cap rate generated by Jones Lang LaSalle is further evidence that there is active and ongoing interest from buyers in acquiring quality retail property in this market at attractive pricing." ................................................................ Grand Strand Hotel Distress Opens Door for New Shop MYRTLE BEACH, S.C. – Looking to aid the recovery of the Grand Strand's hospitality market, Tradd Commercial has launched a sister company to work through what has been labeled as the worst crisis in 50 years for the 60-mile stretch of Atlantic Ocean resort towns along the South Carolina coast. Tradd Hospitality Resources will be led by Doug Billings, Scott McNew and Brown Bethune. The Myrtle Beach, SC-based company will include 12 hotel and real estate executives with more than 175 years of industry experience. The hotel asset recovery company will target owners, lenders and special servicers. It is touting the launch as the only firm in the Grand Strand market to offer a full range of recovery services, including Home Owners Association management and brokerage. "I have been through four major hotel real estate cycles and this is a once-in-a-generation situation," Billings said. "On a national basis, it is expected that this will be the largest transfer of hotel wealth in history, as bankruptcies and foreclosures escalate. Billings cited the Wall Street Journal's report that more than $125 billion of commercial loans are in default, of which more than $10 billion of hotel debt will come due in the next 18 months. The impact to the Grand Strand is unclear at this time, he said. What is clear is occupancy has been 50 percent for a beach stretch with roughly 100,000 rooms. "We have spoken to a number of lenders with properties in the market," he said, "and they have significant concerns about the market." Billings cited Tradd's local presence as a clear-cut advantage. "In my years operating in this market, I have learned that outsiders coming into the market have an extraordinarily difficult time operating here," he said. ................................................................ Federal Realty, IKEA Swap Land SOMERVILLE, Mass. – Federal Realty Investment Trust and IKEA have swapped acreage in Assembly Square, giving the Rockville, Md.-based developer an additional 16.6 acres of frontage on the Mystic River. "Today's closing on the land exchange is one more step in the steady progress that we continue to make towards our vision for Assembly Square," said Don Briggs, senior vice president of development for Federal Realty. IKEA, in turn, got an 11.9-acre piece of entitled inland dirt for a 340,000-sf store. The land swap has been under negotiation since February 2007. Federal Realty plans to develop a mixed-use, transit-oriented urban village, Assembly on the Mystic. As part of the agreement with the Swedish retailer, Federal Realty did the site preparation for the inland tract, which has easy access to Interstate 93. The developer has also started work on Assembly Square Drive. ................................................................ Real Estate Sector Gets New Investment Banker NEW YORK – FTI Consulting Inc. and Compass Advisers LLP have debuted EdgeRock Realty Advisors, an investment banking firm dedicated to real estate worldwide. The business plan calls for EdgeRock to be led by Bruce Schonbraun, whose firm was acquired last year by the West Palm Beach, Fla.-based FTI and Compass. Schonbraun has been named senior managing director and head of global real estate. The co-CEO is Stephen Waters, founder and managing partner of Compass Advisers. David Lazarus, former managing director for Lehman Brothers/Barclays Capital, also has been named senior managing director. "With the capabilities and support of our two strategic partners, EdgeRock is built on a unique and powerful platform tailor-made for this new era," Schonbraun said. "We are confident that this is the right offering at the right time." ................................................................ Budd Larner Pushes Lease to 2024 SHORT HILLS, N.J. – One of the state's most prestigious law firms, Budd Larner, has extended a 54,931-sf, class A office lease through October 2024. The firm's office is marking its 21st year as a tenant in the 247,476-sf Mack-Cali Short Hills at 150 John F. Kennedy Parkway. The transaction keeps the building's occupancy at 100 percent for the Edison, NJ-based owner, Mack-Cali Realty Corp. Roger Cantor and Eric Ladden of Cornerstone Real Estate Group in New Jersey represented the law firm in the negotiations. Mack-Cali was represented in-house by Diane Chayes, vice president of leasing. ................................................................ Wachovia-Leased Site Fetches $3.6 Million PHOENIX – A 38,333-sf tract has banked $3.6 million for its Arizona seller, CDC-Bell LP. The site is leased for the long term to Wachovia Bank, now Wells Fargo. The buyer of the 4750 E. Bell Rd. land is Roddimeyer III LLC, which was represented by Mark Ruble in Marcus & Millichap Real Estate Investment Services' Phoenix office. Representing the seller were Jamie Medress in the brokerage firm's Phoenix office and Tommy Tucker with its Dallas team. ................................................................ Rolls-Royce Breaking Ground On 1,000-Acre Crosspointe RESTON, Va. – Rolls-Royce Monday will break ground on its first ground-up aerospace manufacturing plant in the US. Rolls-Royce Crosspointe Centre will be set on 1,000 acres along Hardware Drive in Prince George County, making it the largest Rolls-Royce campus in North America. In addition to manufacturing, the campus will provide home turfs for the Commonwealth Center of Advanced Manufacturing and Commonwealth Center for Aerospace Propulsion Systems, which were founded by the Commonwealth of Virginia, University of Virginia, Virginia Tech and Rolls-Royce. The dignitaries' roster includes James M. Guyette, president and CEO of Rolls-Royce North America, Gov. Tim Kaine, and Tom Loehr, executive vice president of Rolls-Royce Crosspointe. Also on hand will be the president of Virginia Tech, Dr. Charles W. Steger, and executive vice president and COO of the University of Virginia, Leonard Sandridge, along with Henry Parker, chairman of the Prince George County board of supervisors. ................................................................ Morgans, Yucaipa Start Investment Partnership NEW YORK – Setting a new plan into action, Morgans Hotel Group Co. has secured $75 million from the Yucaipa Cos. In the past two months, the hotelier's financial moves have added nearly $200 million of liquidity to the corporate till. Ronald Burkle, founder of the Yucaipa Cos., and Morgans Hotel Group also plan to launch a real estate opportunity fund to invest in the hotelier's new projects. Morgans has secured long-term management rights for the fund's portfolio. Yucaipa will seed the fund and raise the remaining capital through an offering, according to a press release. Yucaipa can earn additional shares in the venture by meeting investment thresholds. As part of the new plan, Marc Gordon has been promoted to president from chief investment officers. Also, Michael Gross, Burkle's five-year business sidekick, was named to the board of directors while Deepak Chopra and David Moore have resigned from the board.Morgans did get the right to redeem the $75 million of preferred securities issued to Yucaipa at any point, minus any pre-payment penalty. Yucaipa's purchase warrant for 12.5 million shares of Morgans stock expires in 7.5 years."I am confident that this partnership will benefit all of Morgans' key stakeholders," said Morgans CEO Fred Kleisner. Gordon, marking his 12th year with Morgans, said he is "honored by the confidence that has been placed in me." He cited the flexibility of the agreement's terms, adding "these additional dollars and friendly terms should help us see the company through the remainder of the economic downturn and allow us to position Morgans to capitalize on the ultimate recovery." ................................................................ Liberty Gives Leasing Keys to JLL WEST BRIDGEWATER, Mass. – Jones Lang LaSalle has taken over leasing duties for the 315,000-sf One United Drive, a combo of office and industrial space near the junction of Interstate 495 and Route 24. Liberty Cos. has 226,510 sf of open space in the 22-year-old building, a bi-level design with 30,000 sf office space and the balance as manufacturing and warehouse space. The structure, featuring 49 docks and 327 parking spaces, sits on 30 acres. "With its exceptional accessibility, convenient location, and prominent corporate neighbors, we expect that One United Way will generate significant interest from tenants," said Bill Bailey, managing director for Jones Lang LaSalle. The marketing team also includes JLL vice president Rick Schuhwerk and associates Anthony Coskren and Michael Orr. ................................................................ 185,279-SF Speedway Plaza Backing $10 Million Loan WESTBOROUGH, Mass. – Regency Centers Corp. has refinanced the 185,279-sf Speedway Plaza Shopping Center, getting $10 million of new capital in a five-year loan at a fixed-rate interest. Commerce Bank & Trust of Worcester, Mass., funded the deal. The fully leased center sits on slightly more than 32 acres at State Route 9 near Interstate 495. The anchor tenants are Stop & Shop and BJ's Wholesale Club. "We were pleased to utilize our national network of capital relationships on behalf of Regency Centers to identify the ideal local lender that recognized the long-term value and stability of Speedway Plaza," said Jim Cadranell, a managing director of Holliday Fenoglio Fowler LP who arranged the loan for the Jacksonville, Fla.-based borrower. ................................................................ Colorado Investors Swap Retail Center, $2.8 Million SALIDA, Colo. – A private investor from Highlands Ranch, Colo., has claimed the 20,400-sf Salida Center, delivering the close with a top offer of $2.78 million. Jason Burns, an investment specialist in Marcus & Millichap’s Denver office, represented the local developer of the 101 W. Highway 50 center. He said the sale closed about 130 days after the listing hit the market. According to Burns, the sale price reflected an 8.43 percent cap rate, with leases in place for 10- and 15-year terms. The center is net leased to Family Dollar, Sherwin Williams and Autozone. ................................................................ GSA Takes 37,660 SF in Virginia ARLINGTON, Va. – Lowe Enterprises and the GSA have finalized a 37,660-sf lease for Jefferson Plaza, filling the last available space in the 550,000-sf class A complex. Lowe bought the two-building complex at 1411 and 1421 Jefferson Davis Highway in early 2008 and is its property manager. The connected buildings share a three-story underground parking garage. Charles Dilks, Keith Lavey and Kurt Stout of the Grubb & Ellis Government Services Group represented the Los Angeles-based owner in the transaction. ............................................................. Featured Property 3,420-Acre Working Ranch Up for Grabs HARRISONVILLE, Mo. – The historic 3,420-acre Irvin Ranch in western Missouri will be auction Nov. 10. The holding has been divvied into 28 tracts, ranging from five to 320 acres. Westchester Auctions LLC of Champaign, Ill., is in charge of the sale. The ranch, situated 30 miles south of Kansas City, is one of the largest working ranches in western part of the state and has been in the Cole family for four generations."My great-grandfather was a well-known doctor in the area and began buying land in Missouri in the early 1940s," said Tracey Cole, who added that it's "now is one of the largest contiguous ranches in the region." The ranch features a 12-acre lake and three country homes. The cow-calf operation boasts 300 head of Black Angus beef cattle, which along with the machinery and hay are available for sale after the auction. Patrick Trainor, Midwest marketing director for Westchester Auctions, said the offering has attracted significant interest from would-be buyers. A sneak preview is slated for 5 p.m. Oct. 27 at the property. Additional details are available at www.westchester-auctions.com. The auction begins at 4 p.m. Nov. 10 in the Harrisonville Community Center. ................................................................ Hilton Raises Downtown Lexington Flag LEXINGTON, Ky. – Hilton Hotels has unwrapped its newest downtown gem, a 367-key hotel midway through a $13 million renovation that began in March. Construction on the Hilton Lexington Downtown won't be done until 2010. The hotel at 369 W. Vine St. was re-branded from the Lexington Downtown Hotel & Conference Center, becoming the second flag to fly in the city for the McLean, Va.-based hotelier. Design Continuum of Atlanta redressed the 22-story hotel with a traditional Kentucky design, including a unique collection of locally inspired art, color palettes reminiscent of the regional countryside and a five-story atrium. The 290,362-sf hotel features more than 16,000 sf of meeting and event space, fitness center, spa and business center. "A landmark in downtown Lexington for decades, the hotel now offers a distinct and enhanced experience for travelers visiting this unique region," Peter C. Lewis, president and chief investment officer of Madison W Properties. "An exclusive interior design that infuses the local flavor of the city combined with Hilton’s superior service will ensure that the hotel remains the premier destination for tourists and business travelers." ................................................................ ProLogis Completes $123 Million in Refis DENVER – ProLogis has obtained $123 million from the capital markets, securing the new debt with properties in its California and European funds. In both cases, the fresh capital retired debt maturities that were hanging overhead. ProLogis cornered $52.5 million from a major life insurance company on behalf of ProLogis California Fund. The loan, secured by 11 industrial properties in the Los Angeles Basis, carries a seven-year term at a 6.6 percent fixed-rate interest. The loan-to-value ratio was 50 percent.As previously reported, ProLogis secured $70.5 million in a five-year loan collateralized by four properties in Sweden. A German Landesbank provided the capital for the ProLogis European Properties Fund. In a press release, the Denver-based development group said the deals have cleared all maturities from its books until 2014. "So far this year, we have successfully addressed, refinanced or paid off $2.2 billion of 2009 and 2010 fund debt maturities, including virtually 100 percent of $1.4 billion of 2009 maturities," said CFO William E. Sullivan. ................................................................ Hilton Wins Columbus' Nod COLUMBUS, Ohio – Hilton Worldwide will fly its flag over the 500-room convention center headquarters hotel in downtown Columbus, inking a long-term agreement with the project's public-private development partnership. The $140 million project will break ground in summer 2010. The hotel project is a collaborative effort of Franklin County Commissioners, Franklin County Conventions Facilities Authority, City of Columbus and Nationwide Realty Investors Inc. The development site is along High Street beside the SMG-managed Greater Columbus Convention Center and Nationwide Arena. The hotel's grand opening is penciled for fall 2012. "After carefully analyzing all proposals on the table, we made the decision to go with Hilton Worldwide because their proposal was the best fit financially and programmatically for our project," said Bill Jennison, executive director of the Franklin County Convention Facilities Authority. Jeff Sachs of Strategic Advisory Group was the joint venture partners' adviser for the hotel's branding search. John Christie, chairman of the facilities authority, added that the Hilton selection increases the opportunities for the 1.7 million-sf convention center. "This partnership significantly strengthens our product offering in the global market," he said. ................................................................ Berkshire Investing in Grocery Outlets BOSTON – Berkshire Partners LLC and Grocery Outlet Inc. have signed a definitive agreement for an equity investment in the 135-store chain. The family-owned chain, headquartered in Berkeley, Calif., operates in the Western US, with its stores independently operated. The outlets offer up to 60 percent discounts over its competitors for name-brand products. "We believe Grocery Outlet has a unique operating model. Over the past few years, Grocery Outlet has successfully invested in broadening its product offering, improving its marketing efforts, and opening new stores," said Chris Hadley, managing director of Boston-based Berkshire Partners. The amount of the investment is being kept under wraps. ................................................................ Focus Gets Keys to Office Park CARROLLWOOD, Fla. – Focus Real Estate Services LLC has won property management rights to the 165,105-sf Cypress Point Office Park and Executive Suites. The Tampa-based real estate company, led by Pam Winchester and Mary Crino, picked up the contract for the six-building park at 10004-14 N. Dale Mabry Hwy. from BGK Group of Santa Fe, NM, which bought the park in July 2004. ................................................................ GI Partners Closes $1.9 Billion Fund MENLO PARK, Calif. – GI Partners has raised more than $1.9 billion in less than one year, a milestone that allowed it to close its third private equity fund. GI Partners Fund III LP, backed by institutional private equity and real estate investors, is 35 percent larger than the investment group's last fund. In its press release, GI Partners' management said the new fund received equity from several new investors, including the Florida Retirement System Trust Fund, Teachers' Retirement System of the State of Illinois and Capital Dynamics and Partners Group in Europe. "Given the difficult economic environment, we are extremely pleased to have grown our base of new investor relationships by more than 50 percent and to have secured larger capital commitments from almost all of our existing limited partners," said Rick Magnuson, executive managing director of GI Partners, which maintains headquarters offices in Menlo Park, Calif., and London. To date, the capital fund raising has resulted investments in Ladder Capital Finance, a US-based specialty finance company focused on commercial real estate opportunities; Care Aspirations, a UK-based provider of specialty care for severe learning disabilities; and the recently reported FlatIron Crossing, a joint venture with Los Angeles-based Macerich Co. Founded in 2001, GI Partners has about $4 billion of assets under management. Its past investments included Digital Realty Trust Inc. of San Francisco and the Cambian Group, also a UK-based specialty provider of healthcare services and education. ................................................................ RiskMetrics Uncovers Changes For Sovereign Wealth Funds NEW YORK – RiskMetrics Group, rolling out findings of a new study, has discovered Sovereign Wealth Funds (SWFs) are becoming more transparent albeit varying degrees of embracing the Santiago Principles, which has just marked its first anniversary. The New York City-based research group found five of the 10 leading SWFs have shown a "relatively high level" of disclosures. Other funds have yet to adopt meaningful initiatives to improve compliance, according to RiskMetrics. The report also supports claims that substantial pools of capital remain sidelined by the global recession. The largest 10 SWFs represent an aggregate $2.2 trillion yet the impact of their investments to date hovers $1 trillion. The IRRC Institute of New York commissioned the study, "An Analysis of Proxy Voting and Engagement Policies and Practices of the Sovereign Wealth Funds." The purpose was to determine acceptance of the voluntary code of conduct of the Santiago Principles, adopted to ease suspicion and criticism of their investments, particularly cross-border. The study is the first in-depth analysis of the SWFs' compliance. "SWFs are not inherently 'good' or 'bad.' But, their massive size draws attention and enables the funds to move markets and affect economies," said Jon Lukomnik, program director for the IRRC Institute. "At this milestone, the report provides encouraging indications that some funds take disclosure and the principles seriously, but much work remains for other funds. Perhaps this report will spur action for funds that have failed to meet their self-imposed code of conduct." Lukomnik explained that the report was commissioned to provide investors, regulators and others with "clear and accurate" information about the funds and their potential impact on global capital markets. IRRC's goal is to create a benchmark for SWFs and identify emerging best practices. Other findings include that the SWF investment size is less than is generally reported in the media; SWF capital pools have declined due to drops in demand for exports from their home countries; generalizations about funds' practices can be misleading because SWFs have different missions, some as arms of governments and others capital preservation for families; and few funds issue performance data for individual investments. Likewise few funds have strategically focused on environmental and social risk management and investments although most are in for the long investment haul. RiskMetrics analyzed Abu Dhabi Investment Authority (ADIA); Australian Government Future Fund (AGFF); China Investment Corporation (CIC); Government Pension Fund Global (GPFG); Government of Singapore Investment Corporation (GIC); Kuwait Investment Authority (KIA); Libyan Investment Authority (LIA); Russian Reserve Fund and National Wealth Fund; Qatar Investment Authority (QIA); and Temasek Holdings (Temasek). The full report is available at www.irrcinstitute.org and www.riskmetrics.com. ................................................................ $5 Million Hotel Redo Nearly Done CHICAGO – Starwood Hotels & Resorts Worldwide Inc. is putting the finishing touches on a $5 million renovation of the 295-room Four Points by Sheraton Chicago O'Hare Airport. The White Plains, NY-based hotelier has invested $1 billion into upgrading its properties in the past five years. The Chicago hotel recently won a top business honor by Crain's for its additions, which includes 30-passenger airport shuttles that run every 20 minutes and 12,000 sf of retooled meeting space. The meeting space features two ballrooms and executive boardroom. The makeover also included its full-service restaurant and fitness facility. The hotel, situated at 12409 Irving Park Rd., is along Chicago's Magnificent Mile and just 1.5 miles from O'Hare's baggage claim. "We upgraded not only our guest rooms, but also the lobby, restaurant and meeting facilities to create an open, relaxing atmosphere for travelers," said Arun Sharma, general manager of the Chicago hotel. ................................................................ Oahu Center Gets Traditional Blessing OAHU, Hawaii – Robertson Properties Group today is holding a traditional Hawaiian blessing for its 150,000-sf Pearl City Gateway, which is slated to open in early 2010. The power center has been set on 13.5 acres at the corner of Kuala and Acacia streets close to Pearl Harbor. The Los Angeles-based developer's project has created inroads to the Islands for Babies "R" Us, David's Bridal and Petco. Offering the blessing is Kahu David Kaupu. ................................................................ $2.4 Million Lands Single-Tenant Asset MESA, Ariz. – A local limited liability company has paid $2.4 million for a 45,500-sf single-tenant building leased for the long term to Goodwill of Central Arizona. The building is located at the corner of Main and 63rd streets. Sanford Burstyn, investment specialist for Marcus & Millichap Real Estate Investment Services in Phoenix, represented the local seller, Plaza Properties Inc. ................................................................ Brookdale, Sunrise Plan $204 Million Asset Sale NASHVILLE – Brookdale Senior Living Inc. will pay $204 million to Sunrise Senior Living Inc. for a 1,389-unit portfolio in 11 states. The transaction is slated to close Nov. 16. The portfolio consists of 92 independent living units, 876 assisted living and 421 Alzheimer's units. The largest concentration is in Ohio, which has six properties in the portfolio. Indiana has four while Connecticut and Pennsylvania have two each. States with one property each are California, Colorado, Georgia, Michigan, New Mexico, North Carolina and Virginia. "Many of these communities are in markets where we have either built or are building a continuum network," said Bill Sheriff, CEO of Nashville-based Brookdale. He pointed out that 80 percent of the units are in markets that can be immediately served by Brookdale's therapy services and 55 percent in its home health markets. In a press release, Brookdale's executive team said it will end up with $134 million of mortgage debt, a large portion of which is being assumed. The balance will be paid with cash from the company's till. The McLean, Va.-based seller said the buyer put $5 million of earnest money into an escrow account to solidify its purchase intent. At the November closing, Sunrise Senior Living is slated to clear $60 million after Brookdale's assumption of the existing loan stack. Sunrise's team reported it will record an impairment charge of nearly $7 million this quarter to write down five of the 21 assets to fair value. Upon closing, it expects to bank a $50 million gain from the $204 million transaction. Sunrise's adviser was Goldman, Sachs & Co. of New York City. "This is another important step in our restructuring process and provides us with needed funds to pay down our bank line and with additional working capital," said Sunrise CEO Mark Ordan. ................................................................ $175 Million Project Back on Track EVERGREEN PARK, Ill. – The Little Company of Mary Hospital and Health Care Centers plans to push ahead on a five-year campus transformation, estimated to cost $150 million to $175 million. The first project is the West Pavilion Tower, which will house 96 private rooms for medical and surgical patients. The campus redo includes construction of the Women's Center for Life and Health. The West Pavilion is slated to break ground in fall 2010. The board of directors wants to create Southwest Chicago's first all-private room/bath, acute-care hospital, but had opted in late winter to delay the project's start until the economy improved, according to published accounts. The campus overhaul is being funded through a fund-raising campaign, debt and internal resources. The original hospital at 2800 W. 95th St. will mark its 80th anniversary in January. ................................................................ NC State Awards $87 Million Project RALEIGH, N.C. – North Carolina State University has awarded an $87 million contract to Skanska USA Building Inc. to construct the James B. Hunt Jr. Library. The 220,660-sf library will be positioned at 911 Oval Dr., envisioned as a critical link between the campus and a future town center. The Stockholm-based contractor's contact includes a 500-space parking deck and infrastructure utilities. Work begins this fall, with completion penciled for July 2012. Snohetta is the lead designer of the library, which will meet LEED Silver certification standards. The design team includes Pearce Brinkley Cease + Lee of North Carolina. The library is envisioned as "an iconic heart" for NC State's Centennial Campus. It also will house the Institute for Emerging Issues, a public policy "think and do" tank. ................................................................ Developers Diversified Gets $400 Million Lifesaver CLEVELAND – Developers Diversified Realty Corp. has banked a $400 million loan with a five-year term, collateralizing the debt with a portfolio of 28 stabilized shopping centers. The first mortgage financing came from Goldman Sachs Commercial Mortgage Capital LP. The Cleveland-based borrower and New York City-based lender are working with the Federal Reserve to qualify the loan for funding through the Term Asset-Backed Securities Loan Facility, according to a press release. Developers Diversified said the proceeds from the Goldman Sachs loan will be used to repay debt on some properties in the portfolio, retire first mortgage debt that's on the verge of expiring and reducing its revolving credit facilities. "We are pleased to announce continued progress raising long-term capital to retire short-term debt, and we look forward to announcing additional progress in the coming months," said David Oakes, senior executive vice president and chief investment officer. The REIT owns and manages about 690 retail and development properties in 45 states. The 151 million-sf portfolio also includes properties in Puerto Rico, Brazil and Canada. ................................................................ Merchant's Exchange Draws $17 Million MARIETTA, Ga. – In a free and clear sale, Columbia Properties Inc. has bought the 130,013-sf Merchant's Exchange in northern Atlanta for $17 million from Australian-based Centro Properties Group. Whitney Knoll, senior managing director of Holliday Fenoglio Fowler LP in Atlanta, and colleague Richard Reid, a director, represented Centro in the sale of the 11.2-acre asset at 4400 Roswell Rd. The shopping center, developed in 1986 and renovated in 1997, was 98.9 percent leased at sale time. "Merchant's Exchange has an irreplaceable location in the hub of retail activity for East Cobb County," Knoll said. The Marietta, Ga.-based buyer's new center is anchored by LA Fitness and Picture Show movie theater. "Through our long-standing relationship with BB&T, we were able to secure a below-market loan providing our investors with a well-located, stabilized asset generating a high return," said Andy Campbell, partner in Columbia Properties. Columbia Properties controls more than one million sf of retail space in centers from 15,000 sf to more than 100,000 sf in Greater Atlanta and elsewhere in Georgia. In its press release, Campbell said more retail properties will be acquired in the next 12 to 18 months. "Great investment opportunities in retail real estate are beginning to present themselves and we feel we’re well positioned to take advantage of those opportunities," he said. ................................................................ Class A Business Park Brings $25.5 Million GERMANTOWN, Md. – First Potomac Realty Trust has shelled out $25.5 million for the 173,655-sf Cloverleaf Center, a class A business park in the Interstate 270 corridor of Montgomery County. The Bethesda-based buyer's new portfolio piece is a quartet of one- and two-story office buildings developed in 2000. The multi-tenant asset is 97 percent leased, with no significant lease expirations until August 2012, the buyer said in a press release. The tenant roster is primarily filled with government contractors and technology companies. First Potomac made the close with a $17.5 million loan and paid the balance with part of its net proceeds from a $17 million offering. The five-year note has a fixed-rate interest of 6.75 percent and two one-year extension options. According to projections, the asset will generate un-leveraged first-year return of about 10.7 percent on a cash basis and 11.5 percent on an accrual basis. "This transaction is unique in that it was sourced during the extreme dislocation of the economy in early 2009," said Douglas J. Donatelli, the REIT's CEO. "The park is strategically well-positioned in Montgomery County, where we already have a significant presence, and it complements our existing portfolio in the submarket." ................................................................ Jones Lang LaSalle Gets 16 Million-SF Job CHICAGO – Atlanta-based SunTrust Banks Inc. has seated Jones Lang LaSalle for facility management of its 16 million-sf portfolio in eight states. "SunTrust has an outstanding leadership team in place and we look forward to helping them achieve greater operational efficiencies across their entire portfolio," said Doug Sharp, group executive of Chicago-based JLL. The SunTrust properties are located in Florida, Georgia, Maryland, North and South Carolina, Tennessee, Virginia and Washington, D.C. ................................................................ United Residential Adding Offices In California, Texas, New Mexico SAN DIEGO – United Residential Lending LLC, an affiliate of National Asset Direct Inc., will open branches in Sacramento, San Ramon and Ripon, Calif., plus Arlington, Texas, and Albuquerque. National Asset Direct, based in San Diego, is a service provider for buyers of performing and distressed residential mortgage loans and assets. The residential lending affiliate has operations in 19 states. As part of the plan, the lender named 16-year veteran Ken Stiles of Arlington as the south central regional manager and Ken Michael, who is based in Murfreesboro, Tenn., as southeast regional manager. Arlington's branch manager is Debra Stiles; Albuquerque, Veronica Gomez; San Ramon, Anthony Deffina; Ripon, John Killingbeck; and Sacramento, Susan Sieve. "The addition of these offices will allow us to expand our footprint and strengthen our 'one-stop shop' model while filling the void left by players who have exited the origination market," said Jeffrey Kaplan, president and CEO of National Asset Direct. ................................................................ MoranDownes Firm Launches PHOENIX – Graham Downes, a leading architect and entrepreneur from San Diego, and Gregoria Moran, formerly with Moran Architects, have launched a new firm focused on sustainable designs for hospitality, spa/wellness, multifamily and residential developments. MoranDownes Architecture will be based in Phoenix, with Moran at the helm of a cadre of experienced Arizona architects. "Attracting Gregoria Moran and several key former managers from Moran Architects bolsters our overall group's sustainable design expertise and aids our penetration into the spa and wellness market, further immersing us in hospitality and multi-family markets," said Downes, whose principal firm also has offices in Las Vegas and Phoenix. Downes is CEO and principal of the new five-member and will direct its operations. Moran is responsible for marketing and management. ................................................................ TPG, Partners Package $4.5 Billion Investment By Connie Gore FORT WORTH – Locally based TPG Capital is part of four-way partnership to acquire an equity interest in a $4.5 billion of construction loans and real estate-owned assets formerly owned by Chicago-based Corus Bank. TPG Capital's partners are Starwood Capital Group, Perry Capital and WLR LeFrak. The quartet has signed a definitive agreement with the FDIC for equity interest in Corus Construction Ventures LLC, of which the FDIC will control 60 percent. The 23 million-sf portfolio contains 102 loans and REO assets for top-tier condominiums, multifamily housing, office buildings and land. TPG and Starwood are funding the majority of equity. The $2.77 billion transaction is considered one of the largest distressed commercial real estate asset sales to date. The value is tantamount to 60 percent of the unpaid principal balance and is a significant discount to replacement costs. In a press release, the buyers said the portfolio has a high number of performing loans, which are expected to continue as such. In addition to the REO component, there is a subset of loans that may or may not be performing, but titles are expected to be recovered.Under the agreement, the FDIC will provide financing with a 0 percent coupon for 50 percent of the purchase price to Corus Construction Ventures. The FDIC also will provide a facility with a $1 billion cap to fund project completions and working capital. Starwood Capital will oversee day-to-day management of the portfolio. A newly formed board of directors will be formed, with Starwood and TPG having two members each and Perry Capital getting one seat. "This is a unique opportunity to purchase a sizeable portfolio of high-quality assets with strong recovery potential in key U.S. markets," said Kelvin Davis, a partner at TPG. "A number of TPG principals were very active in real estate investing during the last distressed cycle in the early 1990s and we are excited to be participating in this promising opportunity as part of our broader real estate interests." The FDIC seized Corus Bank Sept. 11, selling its deposits and jump-starting a private auction on its remaining assets. The 102 loans include of 79 condominium buildings with 12,000 units and 15 million sf, 14 multifamily complexes, eight office buildings and one land development. The properties' locations include Los Angeles, Miami, Washington, D.C., New York City, Chicago and Atlanta. As for the deal's backers, Greenwich, Conn.-based Starwood Capital is a private firm with $13 billion of assets under management worldwide. TPG Capital has $45 billion of assets under management globally, including businesses such as Harrah's, Neiman Marcus, ParkwayLife REIT, PETCO and Surgical Care Affiliates. Perry Capital manages about $7 billion of assets from its offices in New York, London and Hong Kong. WLR LeFrak is a joint venture of the LeFrak Organization, which owns more than 20,000 residential units and nine million sf of office and retail space, primarily in Los Angeles and New York, and WL Ross & Co. LLC, a New York City-based company that's sponsored more than $8 billion of equity-linked investments since 2000. ................................................................ Cisco Entrusts CBRE With 23.6 Million SF LOS ANGELES – CB Richard Ellis Group Inc. has come out on top of a competitive face-off for bragging rights to a 23.6 million-sf portfolio of 506 locations in 87 countries. Cisco Systems has blessed the deal with a multi-year agreement for CBRE to manage global coordination and delivery of all real estate projects. The management services will span fit-outs of small field offices to large-scale campus development as well as complex data center construction. The deal covers Cisco's San Jose, Calif. Headquarters campus. CBRE's first business deal with Cisco was inked in 1999. The new deal is part of a corporate-wide optimization program, Cisco Workplace Resources, which is aimed at leveraging outsourcing partners, improving cost, enhancing performance and creating worldwide consistencies. "Global project management is core to our resource optimization mission. CBRE's track record of performance and their strong leadership team made us confident in their ability to manage our projects seamlessly through market-driven practices and to create strategic value globally," said Alan McGinty, director of Cisco Global Partner Strategy. ................................................................ Update $2.3 Billion in Cash, Rights to Returns Backing Blackstone's Busch Buyout NEW YORK – In one of the year's largest real estate deals, New York City-based Blackstone Group has put a $2.7 billion deal on the table to buy 10 theme parks in the U.S. from Anheuser-Busch InBev. The buyer has proposed $2.3 billion in cash and a participation right on its return up to $400 million for Busch Entertainment Corp., a wholly owned subsidiary of the Belgium-based seller and second largest entertainment park operator in America. The properties are three SeaWorld parks in Orlando, San Antonio and San Diego; two Busch Gardens parks in Tampa, Fla., and Williamsburg, Va.; and other entertainment centers in Orlando, Tampa and Williamsburg plus Langhorne, Pa. The theme parks' fate has been in question since InBev's merger with St. Louis-based Anheuser-Busch in 2008. Carlos Brito, CEO of the beverage company, categorized the subsidiary "as a high-performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev. The sale is viewed as a de-leveraging move and opportunity to focus on its core business, he added. “This transaction represents an exciting new chapter for BEC and the thousands of dedicated employees of our team," said Jim Atchinson, president of Busch Entertainment Corp. "Blackstone is uniquely experienced to help us take the company to new heights." Blackstone's financial advisers are Deutsche Bank Securities Inc. and Goldman Sachs & Co. The buyer will use senior secured credit facilities and mezzanine debt for the acquisition. The senior credit facilities will be provided by Bank of America, Merrill Lynch, Barclays Capital, Deutsche Bank Securities Inc., Goldman Sachs Loan Partners and Mizuho Corporate Bank Ltd. The mezzanine financing is being provided by Goldman Sachs Mezzanine Partners and funds managed by GSO Capital Partners LP. Blackstone's legal counsel is Simpson Thacher & Bartlett LLP. Anheuser-Busch InBev's financial advisers are J.P. Morgan and Lazard. Its legal counsel is Sullivan & Cromwell LLP. ................................................................ Day Pitney, Mack-Cali Sign 100,000-SF Class A Lease PARSIPPANY, N.J. – Touted as perhaps the largest new lease in northern New Jersey this year, Day Pitney LLP has leased a 100,000-sf, class A office building from a partnership led by Mack-Cali Realty Corp. The 375-attorney firm will move into 1 Jefferson Rd., one of four buildings on the 850,000-sf corporate campus. Day Pitney will relocate from 200 Campus Dr. in the Park Avenue at Morris County office campus in Florham Park.The full-building lease not only provides room to grow, but also "the ability to control our expenses more closely," said Dennis R. LaFiura, managing partner at Day Pitney, adding it also promotes the identity that the firm is seeking. The new office building is owned in a joint venture partnership of institutional investors advised by New York City-based J.P. Morgan Asset Management, The Hampshire Generational Fund LLC of Morristown, N.J., and Mack-Cali. Mack-Cali is responsible for the leasing and management of this class A office building. Thomas P. Welsh of Welsh Chester Galiney Matone Inc. represented the tenant and Edison, N.J.-based Mack-Cali was represented in-house by James Nugent, senior leasing director. ................................................................ 222,000 SF Filled in Atlanta ATLANTA – Innotrac Corp. and Auto Metal Direct have leased 115,000 sf and 107,000, respectively, sf in back-to-back signings for ProLogis-owned industrial properties in the Greater Atlanta area. Innotrac, a customer-care solutions provider for direct-to-consumer marketers, will set up shop in Progress Distribution Center Building One along Highway 316 in Lawrenceville. Auto Metal Direct, a sheet metal supplier, roped off space in the newly delivered Buford Distribution Center Building One, located off Interstate 95. ................................................................ 2.5 Million-SF NYC Building Gets LEED-EB Certification NEW YORK CITY – The Rockefeller Group Development Corp.'s 2.5 million-sf McGraw-Hill Building has earned LEED-EB certification from the U.S. Green Building Council. The signature building is the largest building in New York City to attain the milestone. "This accomplishment was important to us as well as our tenants, who worked with us to incorporate sustainable best management practices for the building for site maintenance, water usage, energy management, waste diversion, cleaning and indoor air quality," said Kevin R. Hackett, president and CEO of Rockefeller Group International. CodeGreen Solutions of New York City was the owner's sustainable building consultant for the project. The team also included AKF Engineers, also based in the city. The McGraw-Hill Building is the 10th one in the city to earn the certification.The accreditation was earned through energy-reduction efforts, waste reduction with an emphasis on recycling and high-efficiency HEPA filtration media to reduce air particulates. Also, more than 75 percent of the building's cleaning projects meet green standards. "We would like to recognize the building's vendors who document their procedures so that the building could be LEED-certified," added James Haviaris, Rockefeller's senior vice president of operations and management. The list includes TAC by Schneider Electric, Pritchard Industries, IESI, Knight Electrical, JamesTown Technologies, Ambient Group, Assured Environments and Julius Roehrs. ............................................................... Featured Property No Reserve Auction Opens For 80,311-Seat Silverdome PONTIAC, Mich. – Williams & Williams Worldwide Real Estate Auction has started accepting sealed bids for the 80,311-seat Silverdome. The call for offers is Nov. 12 at 4 p.m. EST. The auctioneers and CB Richard Ellis Group Inc. have packaged an absolute, no reserve auction of the 127-acre Silverdome. As part of the terms, city officials can declare a winner or call for a live "best and final" face-off with no more than the top five offers. If a "best and final" is elected, it will be held Nov. 16 at 1 p.m. EST at the Marriott Hotel in Pontiac. "The decision to sell via absolute auction illustrates our commitment to sell the stadium and convert an expense into a vibrant future development," said Fred Leeb, the city's emergency financial manager. "What's important for bidders to realize is that this is not just a large site. This is a prominent location and it is in a city that will do all it can do to welcome business and foster a new way of operating in the state of Michigan." The stadium property is considered a "gateway site" accessible from Interstate 75, Michigan 59, University Drive and Woodward Avenue. The stadium, which opened in 1975, cost $55.7 million to build. At the time, it was the largest dome in the NFL, with its history including the host stadium for Super Bowl 16 and 1994 FIFA World Cup. "We are pleased to sell and find a steward for this property," said Dean C. Williams, chairman and CEO of the Tulsa, Okla.-based Williams & Williams. "It is an excellent opportunity for the people of Pontiac and investors worldwide." Additional information is available at www.williamsauction.com/silverdome. ................................................................ Phillips Edison Buys 600,000-SF Center HAMILTON, Ohio – Phillips Edison & Co. has bought the 600,000-sf Bridgewater Falls in Fairfield Township for its strategic investment fund. The 54-acre regional shopping center was built in 2005 for a reported $100 million. It sits at 3385 Princeton Rd., right at the hard corner of Princeton Road and Bypass 4. The deal includes ground leases with JCPenney, Chili's, Max & Erma's and Huntington Bank. The buyer put cash on the line for the seven-anchor center, according to a press release. "This is a significant purchase not only due to the fact that it is one of the few REO assets to close this year, but also because very few companies have the ability to close something of this magnitude at a time of severe market contraction," said David Birdsall, chief development officer for the Cincinnati-based private investment group. Bridgewater Falls had been marketed by Chris Hodge, first vice president of CB Richard Ellis Group Inc. in Cincinnati. The retail center is part of a master-planned development that included 872,000 sf of office space. Internet publications reported The acquisition is the third one for Phillips Edison's $70 million Strategic Investment Fund has bought three properties. The target retail properties are 150,000 sf or more in major metro markets. ................................................. Perks Underwrite 62-Month Renewal PARAMOUNT, Calif. – Surface Preparations Solutions LLC has renewed a 31,000-sf industrial lease in the Orange Avenue corridor, reeling in a 62-month lease with perks for signing the deal. Brandon Carrillo in Los Angeles-based Charles Dunn Co.'s Long Beach office represented the tenant, winning two months of free rent and a low lease rate as incentives to sign with One Fam LLC, owner of the fully leased warehouse at 13900 Orange Ave. The broker said the tenant had several options in the market, including lower priced locations. "The SPS transaction seems to be a reoccurring theme in our market, as businesses are being forced by the market to reevaluate costs," Carrillo said. "Businesses need to save money where they can and operate at the highest level of efficiency to survive to the next upturn." ................................................. Food Lion's Parent Offers $425 Million for BI-LO MAULDIN, S.C. – Brussels-based Delhaize Group, parent of Food Lion LLC, is offering $425 million in cash for majority interest in the assets of BI-LO LLC. The would-be buyer made the offer to the U.S. Bankruptcy Court for the District of South Carolina. BI-LO operates 214 grocery stores in North and South Carolina, Tennessee and Georgia. The Mauldin, S.C.-based grocer has about 15,500 employees. In a press release, Delhaize Group reported the BI-LO assets realized more than $2 billion of sales in 2008. The assets would be merged into Food Lion's portfolio of 1,300 stores in 11 states. Food Lion workforce exceeds 74,000 employees. "We at Food Lion, LLC have great admiration for the associates and stores at BI-LO. We believe our markets and service philosophy are complementary and we look forward to continuing our discussions with BI-LO," said Rick Anicetti, executive vice president of Delhaize Group and president and CEO of Food Lion. .............................................................................. New Orleans' Windsor Sells for $44.25 Million NEW ORLEANS – Orient-Express Hotels Ltd. has completed the sale of its Windsor Court Hotel to Berger Co. Inc. The deed changed hands for $44.25 million. The 266-suite hotel sits at 300 Gravier St., just two blocks from the French Quarter, Mississippi River and Warehouse/Arts District. Paul White, the Bermuda-based seller's president and CEO, said the sale price equaled 15 times the hotel's 2007 EBITDA and more than 50 times the 2008 EBITDA. In recent months, Orient-Express Hotels also sold a property in Lisbon. White said the two trades demonstrate "the inherent values of quality lodging real estate across the world."The hotel features a 2,000-sf penthouse suite with landscaped terraces on the 22nd floor. It also has 10,000 sf of meeting space plus an array of upscale dining and amenities. The local buyer owns and is developing more than $500 million of hotel projects, Canal Place Phase III, a $220 million development with a 242-key, five-star hotel. Berger also owns the 112-room Hampton Inn in Metairie. .............................................................................. Featured Property KPMG Marketing Vacant Shipyard SAVANNAH, Ga. – A former shipyard and mega-yacht repair facility along the Savannah River is being marketed by KPMG Corporate Finance LLC, KPMG CF Realty LLC and local broker Melaver Mouchet. The 15.56-acre site houses 10 buildings with more than 285,000 sf of industrial space. The 301 N. Lathrop Ave. property previously was marketed in early 2008. The site was an operations hub for Global Ship Systems, which shuttered the operation in July 2007.The property's access to air, water, rail and highway makes it a likely candidate for government or commercial marine vessel manufacturing and repairs, green energy manufacturing or import/export distribution center. "This is a prized property and making it available at a discounted price presents a truly unique opportunity for a buyer to add considerable value to its operations," said Matthew Bordwin, managing director of the Melville, N.Y.-based sales group. According to a press release, the Savannah port is the only on-terminal intermodal container transfer facility in the U.S. It's also being primed for a $100 million expansion to handle increased traffic that is expected to result from a channel-deepening project slated for completion in 2011. .............................................................................. Hotel Investment Group Gets Loan TAMPA, Fla. – The LCP Group LP, led by Crescent Hotels & Resorts' chairman, has secured a 10-year permanent loan for a 16.3-acre ground lease near the University of South Florida. The fixed-rate financing with a national life insurance company was arranged by Holliday Fenoglio Fowler LP managing director Mark West in Dallas. The White Plains, NY-based LCP Group holds a 49-year ground lease with five 10-year extensions on the site. The lease term began in August 2008. Crescent Chairman Robert Roskind, through controlled partnerships of LCP Group, has owned the Arizona Biltmore in Phoenix, King Edward Hotel in Toronto, Canada, and Hyatt Regency hotels in Savannah, Ga., Phoenix and Washington, D.C. .............................................................................. Brandywine Gets $85 Million For 747,000-SF Office Pair TRENTON, N.J. – Brandywine Realty Trust has collected $85 million from the sale of two office properties, totaling 474,000 sf, to an unidentified private investment group. The buildings at 33 W. State St. and 50 E. State St. were 96.5 percent leased at sale time. The Radnor, Pa.-based seller deferred $22.5 million of the sale price as a seven-year, 6 percent cash-pay/7.64 percent accrual second mortgage loan to the buyer, which took out a $45.5 million first mortgage loan to fund the acquisition, according to a press release. At closing, Brandywine realized $62.5 million of cash proceeds and will pick up another $27.8 million when the second mortgage is repaid Sept. 30, 2017. The agreement carries a three-year extension option. In turn, a Brandywine affiliate will manage and lease the assets for the next seven years. Jones Lang LaSalle marketed the properties for sale on behalf of Brandywine. .............................................................................. Featured Property Tempe Town Lake Land for Sale TEMPE, Ariz. – A 9.4-acre tract at the epicenter of Tempe Town Lake is on the market for $20 million. A call for offers is set for Nov. 2. Cushman & Wakefield of Arizona Inc.'s Karsten Peterson, Darren Tappen and Jim Crews are leading the marketing campaign. Key to the market run is the property's location – within walking distance of Arizona State University and 1.5 million sf of top-tier retail in the Mill Avenue District and Tempe Marketplace. The tract also sits within a five-minute drive of Sky Harbor International Airport. The land is zoned for multifamily and mixed-use development. Entitlement rights include heights of 330 feet in a high-density design, with frontage along Rio Salado Parkway. Tempe Town Lake is a regional and national destination that attracts 2.7 million visitors each year. According to published accounts, the 10-year-old redevelopment project has generated about $415 million of revenue to date. The Urban Land Institute has ranked the Rio Salado-Mill Avenue junction as one of the top intersections in the US. .............................................................................. Ohio Firm Adding Nevada Location McCARRAN, Nev. – Chart Industries Inc. has jump-started work on a 40,000-sf repair facility on a 15-acre tract in the city. Panattoni Construction Co. is the general contractor for Chart Industries of Garfield Acres, Ohio. The build-to-suit, going up at 1995 Peru Dr., is slated to be fully operational by January. Lee & Associates managing partner Dean Krieger and senior associate Clint Steele in the Reno office represented the buyer and the seller, DP Partners, in the land transaction. Krieger will act as Chart's adviser during the construction process. .............................................................................. Douglas Wilson Cos. Tapped To Complete Half-Built DC Office Tower
Currently handling assets representing nearly $2 billion in defaulted commercial loans, Douglas Wilson Companies most recently was appointed receiver for several high profile projects in Washington, D.C. According to company founder and CEO Douglas P. Wilson, his firm was appointed receiver by the Superior Court for the District of Columbia for a 442,000-sf office building under construction on Half Street in the revitalizing Capital Riverfront neighborhood. Approximately 50 percent complete, the silver LEED-certified freestanding modern build has 360-degree city views and is close to the new Nationals Park baseball stadium and metro system. “The building is topped out and the skin is going on within the next week,” says Wilson, noting his firm’s multi-faceted role of coordinating construction and property management as well as providing lender consultation services. “Concurrent to our construction work, we’ll be aggressively marketing and leasing the building.” Additionally, Douglas Wilson Companies is overseeing a 12-story, 243,000 sf building at 100 M St. that is 45 percent leased and expects to have a disposition strategy in place later this month. According to Wilson, the need for experienced, knowledgeable court-appointed receivers is surging on the East Coast and around the country due to the increasing failure rate of commercial loans. “The default rate of U.S. commercial real estate loans has reached its highest level in 15 years and may climb even higher in the coming months,” says Wilson. “Rising vacancy rates, falling rents and increasing operating expenses all make it difficult for borrowers to meet principal and interest obligations.” With offices in San Diego, San Francisco, Las Vegas, Atlanta, Orlando and Miami, Douglas Wilson Companies is well positioned to meet the growing demand and already has been an appointed fiduciary in more than 500 matters in both state and federal courts and overseen nearly $8 billion in assets for clients such as Bank of America, Wells Fargo, JP Morgan Chase and Credit Suisse. Additionally, it provides real estate development, brokerage, leasing and property management services to investors and institutional clients throughout the United States and the Caribbean. .............................................................................. Macerich, Heitman Finalize $167.5 Million Retail Deal SANTA MONICA, Calif. – In a $167.5 million transaction, the Macerich Partnership LP has added Heitman as an investment partner in the 1.6 million-sf Freehold Raceway Mall in New Jersey and 1.3 million-sf Chandler Fashion Center in Arizona. Heitman banked a 49.9 percent stake for its equity contribution. "We have done business with Macerich and its principals for almost 20 years. We view this as an attractive opportunity to expand the relationship by partnering with one of the industry's premier regional mall operators in two established and irreplaceable fortress malls situated in affluent markets," said Maury Tognarelli, CEO of Chicago-based Heitman. Both properties had 2008 tenant sales of about $500 per sf. Freehold Raceway Mall was 95 percent leased at year-end 2008, marking the milestone about one year after a 96,000-sf expansion and interior retooling. The Monmouth County mall is anchored by Nordstrom, Macy's, Lord & Taylor, JCPenney and Sears.Chandler Fashion Center's occupancy was 96 percent at the end of 2008. Its anchors are Nordstrom, Dillard's, Sears and Macy's. In a press release, the JV partners reported that Heitman is assuming a pro rata share of the properties' debt. Macerich has sold minority interests in other high-profile properties this summer in a bid to realign its debt. ............................................................. Digital Realty Buys Calif. Properties for $44.3 Million
SAN FRANCISCO-- Digital Realty Trust has acquired 444 Toyama Drive, an operating datacenter located in Sunnyvale, California. The two-story facility totals approximately 42,000 rentable sf, including 32,000 sf of raised floor space. The property is 100 percent leased through mid-2022 on a triple net basis to a leading provider of network neutral data center and Internet exchange services. The company also announced that it has acquired the ownership interest in 1525 Comstock Street located in Santa Clara, California from its joint venture partner. The property totals approximately 42,000 sf. The properties were acquired for a total purchase price of approximately $44.3 million. ............................................................. Consultatio Establishes U.S. Beachhead for $78 Million KEY BISCAYNE, Fla. – A Buenos Aires-based investment and development group has paid $78 million for 10.3 acres with more than 500 linear feet of Atlantic Ocean beachfront. The site of the former 294-room Sonesta Beach Resort is entitled for 165 residential units. "The former Sonesta site in Key Biscayne is the premier oceanfront development site along the eastern seaboard of the U.S. in what is far and away Florida's most vibrant residential and hotel market catering to the affluent markets of South America and Europe," said Manuel de Zárraga, executive managing director for Holliday Fenoglio Fowler LP in Miami. He added that the prominence of the international buyer is "a testament" to foreign investors' perceptions that the Greater Miami marketplace is "a very desirable venue for long-term investments." The portfolio properties of the buyer, Consultatio S.A., primarily are located in Buenos Aires. It has three divisions and two subsidiaries. The developer primarily is focused on apartments and office buildings, but it does have a 45.02 percent stake in Las Garzas Blancas S.A., which is developing a tourist-related real estate project in Uruguay. In addition to de Zarraga, the HFF team included senior managing directors Dan Carlo and Dan Peek and associate directors Jaret Turkell and Luis Castillo marketed the property for SBR-Fortune Associates LLLP, a 50-50 percent partnership of affiliates of Sonesta International Hotels Corp. and Miami-based Fortune International Realty, headed by Edgardro de Fortuna. Internet research shows the resort at 350 Ocean Dr. was demolished in late 2006. The plan at the time was to replace the 36-year-old resort with a $300 million condo-hotel. .......................................................................................... FEATURED PROPERTY Receiver Seats Marketing Team For 336,000-SF Mervyn's HQ HAYWARD, Calif. – John Connolly Partners has tapped Holliday Fenoglio Fowler LP to market Mervyn's 336,000-sf headquarters office. The asset has 1,100 plug 'n play workstations. The four-story building is situated on 8.8 acres at 22301 Foothill Blvd. The campus includes a four-story, 720-space parking garage and 1,047 surface spaces. The property is positioned close to Interstates 238 and 580, about 15 miles south of Oakland. "22301 Foothill Boulevard is being offered for sale at a fraction of replacement cost, and provides an owner or investor a generational buying opportunity," said Gerry Rohm, HFF's senior managing director in San Francisco. He and senior managing director Michael Leggett are leading a team that includes associate director Christopher Pawlik and senior real estate analyst David Karol. The sale process will be overseen by John Connolly Partners, the Larkspur, Calif.-based, court-appointed receiver for the seller by the Superior Court of California, Alameda County, which has the final say over the sale. According to Internet research, Mervyn's headquarters building was sold in March 2007 for $62 million to MDS Realty II LLC, which acquired all Mervyn's development sites in 2004 when the chain was spun off from Minneapolis-based Target Corp. The Hayward building, developed in 1984, underwent a top-to-bottom retooling in 1997. .......................................................................................... O'Neill Nears Milestone For 667,000-SF Project PHILADELPHIA – O'Neill Properties Group has set Oct. 14 for the topping off ceremony for a 667,000-sf distribution center for the Philadelphia Regional Produce Market. The building is touted as the only one of its size that's fully refrigerated in the U.S. The King of Prussia, Pa.-based developer of 6750 Essington Ave. said the building's design prevents the cold chain from being broken from truck transport to loading docks to cold storage. It's constructed of steel, concrete and five-inch thick insulated metal panels and features 228 enclosed and fully refrigerated 50-foot wide dock areas. The distribution center's clear height is 40 feet. The development includes an 18,000-sf auxiliary building for recycling pallets and food. Delivery is penciled for summer 2010. "We believe that this facility will be without equal, and as a result we will be able to grow our business, add new jobs, attract new distribution opportunities, and enable Philadelphia to set the worldwide standard for best practices in the food distribution industry," said Sonny DiCrecchio, executive director of the Philadelphia Regional Produce Market. The distribution center is situated close to Interstates 95, 476 and 76. To date, 32 vendors have reserved spaces in the 68 new units. The development site once held five junk and scrap yards. Essington Avenue Partners II signed a voluntary agreement with the Pennsylvania Department of Environmental Protection for surface remediation, which includes 400,000 tires and scrapped vehicles. .......................................................................................... Regus Opens in Princeton, N.J. |