Realty News Report
National Gazette |
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$3.6 Million Paid for Retail ARVADA, Colo. - Charles Dunn Company negotiated the purchase of a 20,590-sf retail building at 12505 W. 52nd Ave. for $3.59 million.
.................................................................................................................... $102.8 Million Put In Play for 27 Projects SUNBURY, Pa. – Weis Markets Inc. plans to deploy $102.8 million this year for 27 projects, the bulk of which are major store remodels. The investment represents a 27 percent increase over last year's capital expenditures budget. The chain's vice chairman Jonathan H. Weis said the project list includes two or three new stores, two expansions, 17 major overhauls and six remodels. The cap ex budget includes increased investment in the chain's information technology infrastructure. "We have significantly increased our IT investments over the past two years. Our success as a company will depend on our ability to develop and incorporate rigorous analytics that give us better insight into our business and helps us increase our sales and profits," said David J. Hepfinger, CEO of the Sunbury, Pa.-based grocery chain. Weis Markets operates 164 stores in Maryland, New York, New Jersey, West Virginia and its home state. "For our company and our organization, 2009 was a year of growth and considerable progress," Weis said. "At a time of deep recession and the highest sustained unemployment rate in our country since the Great Depression, we had a strong year." ............................... HEI Hotels Finalizes Deal For 202-Key Le Meridien PHILADELPHIA – HEI Hotels & Resorts has the deed in hand to the 202-room Le Meridien in Center City Philadelphia. The redeveloped property will reopen in May. The hotel, located at 1421 Arch St., was completed in 1912 as a YMCA. Designed by famed architect Horace Trumbauer, the building is a 10-story Georgian revival that was paced through an adaptive reuse project by Development Services Group Inc. of Memphis. The structure is one block from the Pennsylvania Convention Center. "The beautifully constructed adaptive reuse will be a significant addition to the Philadelphia marketplace and a tremendous addition to our growing portfolio," said Steve Mendell, president of the Norwalk, Conn.-based hotel investment firm. The Le Meridien features 5,330 sf of meeting space, including a 2,900-sf ballroom that can accommodate up to 250 people. It also includes a wine bar and gourmet restaurant called Amuse, concierge service and fitness center. HEI will manage the property. ............................... DCT Leases 641,000 SF in Chicago CHICAGO – DCT Industrial Trust Inc. has landed a full-building tenant for a recently redeveloped 439,000-sf bulk distribution center, one of three new leases that pushed occupancy to 90 percent in the REIT's Chicago portfolio. All that the Denver-based company is saying about its largest signing at 250 S. Gary Ave. is that it's a leading provider of freight consolidation services. The building's location in the Central DuPage industrial submarket was the dealmaker, providing the inbound tenant with close proximity to the cargo entrance at Chicago O'Hare International Airport. Roberto Perez of Hilco Real Estate and Geoffrey Eusth of U.S. Equities represented the tenant. The NAI Hiffman team of John Case, Steve Connolly and David Haigh represented DCT Industrial. Also, Laser Technologies Inc. leased 159,000 sf at 1120 Frontenac Rd. in Naperville, Ill. The space will be used as a production center for laser cutting, stamping, fabrication and other services. Manufactured Specialties Inc. took 42,900 sf at 3575 Stern Ave. in the St. Charles Industrial Park. The inbound tenant plans to put its headquarters office in part of the space. Michael Marconi of Newmark Knight Frank Epic negotiated for Laser Technologies and Manufactured Specialties Inc. David Friedland, also with Newmark Knight Frank Epic, represented DCT Industrial for the Laser Technologies lease. ............................... Vail Resorts Pays $31 Million For Full Control of Retail JV BROOMFIELD, Colo. – Vail Resorts Inc. is putting up $31 million to gain full control of its majority-owned Specialty Sports Venture, picking up the 30 percent balance from Tom and Ken Gart. The deal is slated to close today. The Garts and Vail Resorts had a 12-year joint venture agreement in place for SSI Venture LLC. In line with the buyout, the Garts will exit their executive roles. Kat Jobanputra, a 20-year veteran of SSV and current executive vice president and COO, will lead the company. The takeover plan includes relocating the 52 corporate employees in the fall from Denver to Broomfield. The agreement does not affect Gart Properties or Gart Capital Partners. "While our partnership with Vail Resorts always called for an ending, it is certainly a bittersweet moment for both of us and our family," said Ken Gart, SSV's outgoing president. "We have complete confidence in the entire leadership team at SSV, and particularly in Kat's ability to continue the success of the company for years to come. SSV has more than 145 retail/rental locations in the nation's leading ski resorts and slope side shops in Colorado mountain communities such as Vail, Beaver Creek, Breckenridge, Keystone, Aspen and Telluride. The chain also has operations in Lake Tahoe, Park City, Salt Lake City and the San Francisco Bay area. ............................... SOLD: Woodland Park Plaza in Colorado WOODLAND PARK, Colo. – In a short sale, a limited liability company from Aurora, Colo., has paid $1.8 million for the 23,872-sf Woodland Park Plaza. Jon Hendrickson and Garrette Matlock, investment specialists in Marcus & Millichap Real Estate Investment Services' Denver office, represented the seller, a limited liability company from Boulder. The shopping center is located at 1063-99 and 1103-31 E. Highway 24. Its anchor, a Safeway grocery store, was not part of the sale. Barry Higgins, also in the brokerage firm's Denver office, represented the buyer. ............................... HealthSouth Eyes 50-Bed Hospital LAS VEGAS – Alabama-based HealthSouth Corp. has signed a definitive agreement to buy the 50-bed Desert Canyon Rehabilitation Hospital in southwest Las Vegas. The transaction is slated to close before the second quarter ends. When it does, HealthSouth will have three rehabilitation hospitals in Las Vegas, a long-term acute-care hospital and a home health agency in its Nevada portfolio. "The acquisition of Desert Canyon Rehabilitation Hospital is an important acquisition for HealthSouth," said Jay Grinney, HealthSouth president and CEO. "It complements our existing presence in Las Vegas and signals a renewed emphasis on disciplined growth through acquisitions that will bring additional value to our shareholders." Located at 9175 W. Oquendo Rd., the three-year-old Desert Canyon touts itself as providing "white-glove service" for patients. The facility has only private rooms. It also features a therapy garden, fitness center, aquatic center and resort-like atmosphere with a great room and fireplace. ............................... $2.1 Million Refi Wins Nod FISHERS, Ind. – Crosspoint Corner V and VI in suburban Indianapolis have been cleared for a $2.1 million refinance by Shamrock Builders. The fully leased buildings total 27,965 sf. Holliday Fenoglio Fowler LP managing director Jon Everson arranged a non-recourse, fixed-rate loan with a correspondent life insurance company. The borrower retired debt two years out from maturity with the new capital, according to a press release. HFF will service the loan. "The borrower had entered a flexible prepayment window and opted to manage their near term refinance and interest rate risk by refinancing early," the dealmaker noted in the release. ............................... Northrop Grumman HQ Moving to Virginia LOS ANGELES – After scouring the Mid-Atlantic market, Los Angeles-based Northrop Grumman Corp. has decided to park its corporate office in Virginia's Falls Church/Arlington region. "Virginia, Maryland and the District put forward compelling, competitive offers. Our final decision was driven largely by facility considerations, proximity to our customers, and overall economics," said Wes Bush, CEO and president of Northrop Grumman. In a press release, Northrop Grumman said negotiations have begun with building owners, with the precise location to be announced soon. The plan is to open a 300-employee office in summer 2011. The company currently has 40,000 workers in Maryland, Virginia and Washington, D.C. "To gain the corporate headquarters of one of the largest defense and global security contractors in the world is a testament to the strong business climate that we are focused on continually improving," said Gov. Bob McDonnell. "This administration will keep taxes and regulations and litigation at a minimum to attract job creators from around the world to our state to ensure more new opportunities for all Virginians." Northrop Grumman's post-relocation plan will about 30,000 in California, including the headquarters of its aerospace systems sector. "Northrop Grumman is proud of its longstanding involvement with Los Angeles," Bush said, "We will continue to have a strong commitment to Los Angeles and the region and look forward to working with them for many years." ............................... T-Rex Capital Declares Rebirth BOCA RATON, Fla. – T-Rex Capital Group LLC has resurfaced as an investor after lying dormant since 2006 when it sold the majority of its assets. "T-Rex will seek to invest in real estate we believe have solid market fundamentals, limited risk, high barriers to entry, significant potential for appreciation and superior risk adjusted returns," said Tom Mulroy, CEO of the Florida-based investment group. Scouts are sizing up plays with above-average risk-adjusted returns, focusing on timely investments in off-market transactions, undervalued real estate, complex financial restructurings, distressed equity and debt sales, inefficiently capitalized assets, public REIT recapitalizations, strategic partnerships and other value-add opportunities. To jump-start the plan, T-Rex has bought a $35 million mezzanine debt position for a 609,000-sf GSA property in Washington, D.C. It also acquired a B-note for a 450,000-sf, class A office building in Tyson's Corner, Va. ............................... West Shell Commercial Joins Colliers CINCINNATI – In another win for its platform, Colliers International is adding West Shell Commercial to the roster. The Ohio-based company has 88 professionals and manages 9.5 million sf of commercial space. "Colliers International is committed to being the market leader in the United States, and the West Shell Commercial move to our platform is another step in solidifying that position," said Dylan Taylor, CEO of Seattle-based Colliers International. "With the addition of West Shell Commercial's strength in Cincinnati, and Adena Commercial in Columbus, we are able to offer our clients with the highest level of service and depth of local knowledge and expertise throughout Ohio." The re-branding will be completed May 1. As before, there are no plans to change leadership or personnel. "Our long track record of delivering superior services to our clients will not only continue -- it will be enhanced significantly," said Shenan Murphy, CCIM, president and CEO of West Shell Commercial. ............................... $73.5 Million Buys Six Hotels PALM BEACH, Fla. – In an all-cash transaction, Chatham Lodging Trust has paid $73.5 million for six Homewood Suites by Hilton hotels from RLJ Development LLC. Hilton Worldwide will continue to manage the 669-room portfolio. The package includes the 137-room Homewood Suites at Market Center in Dallas. Other properties are the 147-suite hotel in Billerica, Mass.; 121-room hotel in Farmington, Conn.; 143-room hotel in Maitland, Fla.; and 121-room hotel in Brentwood, Tenn. Chatham CEO Jeffrey H. Fisher said the plan is to invest roughly $11 million in the next two years to upgrade the hotels, which is the Florida-based REIT's first investment since its IPO launch just six days ago. "These hotels are typical of the type of properties we seek to acquire -- upscale extended-stay hotels and premium-branded select-service properties that are located in major markets with high barriers to entry near strong demand generators for both business and leisure guests," Fisher said. ............................... JV Starts New Chapter for Ireland's Inn FORT LAUDERDALE, Fla. – A joint venture partnership has paid $27.1 million for the former Ireland's Inn, a redevelopment site with 4.6 acres and direct beach access. Entitlements allow a maximum of 611,178 sf of residential, hospitality and retail space. Jorge Perez of New York-based Related Group and a foreign investor are the new owners of the 2220 N. Atlantic Blvd. property, situated about four miles northeast of downtown Fort Lauderdale. Holliday Fenoglio Fowler LP's Manny de Zarraga, executive managing director, and Ike Ojala, director, were the point men for the sale by the original developer, Fortune International, the Ireland family/Fairwinds Group, which retained an interest in the new ownership. The pass had the blessing of the existing lender, according to HFF's press release. "The combination of Jorge Perez, the Ireland family and Fortune International brings together an exceptional development team with the vision, experience and commitment to bring a world-class project to Fort Lauderdale," de Zarraga said. ............................... Ohio Solar Firm Jump-Starts Turnkey Plan BEACHWOOD, Ohio – Tremco Roofing and Building Maintenance and Smart Energy Capital have launched a turnkey plan for rooftop photovoltaic systems and power purchase agreements for the education, healthcare, government and commercial industries. Smart Energy Capital intends to finance the Tremco systems and sell power to the customer under a long-term power purchase agreement. The financial backer also plans to aid customers in securing all applicable state and federal incentives, including the solar investment tax credit. "This is an excellent option for those who want to move toward 'green power' at minimal risk. They do not need to commit any up-front capital, nor do they have to deal with the hassles of building and maintaining the PV system," said Brian Weisman, managing partner of Smart Energy Capital, who described the purchasing agreement as "a hedge against future electricity rate increases." Smart Energy Capital, based in Mount Kisco, N.Y., has raised more than $200 billion of financing. Its management portfolio exceeds 300 megawatts of solar projects in North America. ............................... Retail Management Firm Adds 385,712 SF WOODLAND HILLS, Calif. – NewMark Merrill Cos. has picked up five new retail properties to manage, adding 385,712 sf in Southern California. The pact covers the 58,126-sf Del Amo Plaza at 11877 Del Amo Blvd. in Cerritos; 31,793-sf Lemon Creek Village at 352 N. Lemon Ave. in Walnut; 154,219-sf Park Plaza on Maine at 14483 Ramona Blvd. in Baldwin Park; 117,363-sf Santa Maria Commons at 2401 S. Broadway Blvd. in Santa Maria; and 21,211-sf Capistrano Collection at 27184 Ortega Hwy. in San Juan Capistrano. NewMark Merrill has more than 44 shopping centers under management or owned. "It is worth noting that our overall occupancy still exceeds 94% even in the toughest real estate market in decades," said Sandy Sigal, president and CEO of the SoCal-based company. .............................. Colliers Continues Its Expansion GRAND RAPIDS, Mich. – Paramount Commerce will raise a Colliers International flag in Western Michigan. The re-branding will be done in the summer. "This move will help us enhance and expand the services we provide to our clients, providing a win-win situation for everyone," said Derek Hunderman, managing partner of the now-Grubb & Ellis Co. affiliate, which has 65 professionals in its shop and offices in Grand Rapids, Kalamazoo and Holland. There will be no leadership or personnel changes due to the re-branding. ............................... Macy's Nabs Gottschalk Location PALMDALE, Calif. – Macy's Inc. is eyeing a fall opening in a 110,000-sf store in Antelope Valley Mall in northern Los Angeles County. The single-story store is a former Gottschalk's location. The Cincinnati-based chain is planning to hire about 130 associates for the Palmdale store at 1233 Rancho Vista Blvd. "This will be Macy's first presence in the Antelope Valley, and we will tailor our offering to meet the unique needs of the customers who live and work there. We expect to be active members of the community," said Ron Klein, Macy's chief stores officer. ............................... Harry K Moore Firm Joins Cassidy Turley ST. LOUIS – Cassidy Turley has landed another top name in the industry in Missouri and southern Indiana, inking a deal with Harry K. Moore. The company has been locally owned and operated since 1948. During the transition, the full-service firm will operate as Cassidy Turley Harry K. Moore. In the past decade, the firm has completed 2,042 transactions, totaling 53 million sf, valued at more than $1.27 billion. "We are delighted to join Cassidy Turley," said Powell Spears, managing member, SIOR. "With 162 years of combined commercial real estate sales and leasing experience among our brokers, we share a strategic vision of creating value and opportunities for our clients nationwide." ............................... Off-Market Deal Snags Self-Storage Deed MESA, Ariz. – In an off-market deal, a publicly registered, non-traded REIT has pocketed the deed to the 570-unit Augusta Ranch Self Storage for $3.67 million. Occupancy was 81 percent at sale time. The asset at 9252 E. Guadalupe Rd. was developed in 2002 on a 4.6-acre tract. The complex, with 58,185 sf of rentable space, consists of six single-storage buildings and 65 outside spaces. Michelle Watson, senior associate in Marcus & Millichap Real Estate Investment Services' Phoenix office, and Chico LeClaire, senior vice president, and Matt Tyler, investment associate, both in Denver, represented the Phoenix-based seller and buyer. ............................... 56-Year-Old Retail Building Changes Hands SOUTH PLAINFIELD, N.J. – A 14,129-sf retail building, developed in 1954, has been bought by a New Jersey entrepreneur for slightly more than $1 million. Marcus & Millichap Real Estate Investment Services' associate Lauren Federgreen and senior associate Seth Pollack represented the seller, a New York investor. The South Plainfield building has four retail spaces and a second floor with office space potential, according to the brokers. ............................... Mid-Atlantic Buildings Nab LEED Labels WASHINGTON, D.C. – Shorenstein Properties LLC has banked a LEED Silver for its landmark Hamilton Square, a nine-story office building in the East End less than two blocks from the Capitol. The 250,000-sf structure was redeveloped in the late 1990s. Built it 1929 at the corner of 14th and F streets, it was the flagship location for Garfinkel's department store chain.Hamilton Square is Shorenstein's third property to earn a LEED EB designation. "We have several other existing properties going through the process now," said Stan Roualdes, executive vice president and director of property management and construction services for the New York-based owner. Shorenstein, also an EPA Energy Star partner, has committed to achieving LEED Gold certification for all future construction projects, according to Roualdes. Later this year, the developer will unveil First & Main, the first new office tower for Portland in 10 years. The project is on track for LEED Platinum, the highest accolade. In Williamsburg, Va., Alan B. Miller Hall on the Mason School of Business campus snagged LEED Gold from the U.S. Green Building Council. The hall is a mix of collaborative educational space, including a 400-seat, 4,000-sf multi-purpose room. ............................... Colliers Grabs Nashville Leader NASHVILLE – Mathews Partners LLC, one of the region's top commercial firms, has carved out a new future for its business, signing an agreement to join Seattle-based Colliers International. "We intend to do more than just maintain our position as Nashville's leading real estate services enterprise. As Colliers International, we will continue to build on our strengths and seek to find new ways to serve our customers," said Nate Greene, Mathews managing partner and principal. The 10-year-old firm manages 2.5 million sf of commercial space and controls 35 percent of Nashville's commercial listings. ............................... $7 Million Bags Shopping Center HELLERTOWN, Pa. – The 55,480-sf Shoppes at Hellertown has sold for $6.99 million to a limited liability company. The seller of the 21 Main St. property is a Philadelphia-area partnership, which was represented by Tom Gorman, Matt Gorman and Michael Shover in the Philadelphia office of Marcus & Millichap Real Estate Investment Services. The buyer was brought to the deal by Seth Pollack in the brokerage firm's New Jersey office . "The Shoppes at Hellertown is the kind of solid performing property buyers are pursuing aggressively in today’s market," Tom Gorman said. "We generated strong offer activity and had a choice of buyers. The ultimate buyer was well capitalized and had a strong lender relationship so they were able to perform and close the deal in a timely fashion." ............................... Sold: Mercado Del Rancho Scottsdale, Ariz. – The 71,200-sf Mercado Del Ranchos in North Scottsdale has been sold to ESI Ventures for an undisclosed price. The buy marks its first office acquisition since 2003. The twin two-story buildings are located at 10301 N. 92nd St. Barry Gabel and Mindy Korth in CB Richard Ellis' Phoenix office represented the seller, 10301 North 92nd Street Holdings LLC of Washington D.C., a corporation controlled by CWCapital Asset Management. ESI Ventures, known locally as Black Canyon Place LLC, has been sizing up the metro since last year when it acquired a distressed multifamily complex. Mercado Del Rancho drew the investment group's interest for its location and long-term value proposition, according to a press release. The building is across the street from Scottsdale Healthcare Shea and Medical Center and beside a Sprouts-anchored shopping center. It's also close to executive-level housing, retail and restaurants. "Mercado Del Rancho is a unique opportunity due to its panoramic views, walk-to amenities, proximity to the hospital, ability to accommodate large users and above all its Scottsdale address," said Nathan Thinnes, vice president of acquisitions for ESI, which has offices in Los Angeles and Phoenix. ............................... 34,000-SF Lease Crosses Finish Line RESTON, Va. – Global Computer Enterprises Inc. has expanded and extended its lease in the Parkridge Center Five, one of sic class A office building in the business park. The tenant has roped off 34,000 sf with the deal. Parkridge Center Five is a four-story building totaling 200,000 sf with direct access to the Dulles Toll Road. The park is owned and managed by Penzance. "GCE is a valued Penzance tenant and client and we are pleased that we could accommodate their expansion needs," said Julia Springer Tolkan, Penzance's managing partner and founder. Penzance leasing director Matt Pacinelli spearheaded the talks along with Andy Klaff, Jake McInerney and John Dettleff, all with Grubb & Ellis Co. CresaPartners' brokers Rich Rhodes, Tom Birnbach and Russell Canard represented GCE. Developer Ready to Break Ground On $250 Million Sustainable Plan SOUTH FAYETTE, Pa. – EQA Landmark Communities has picked up Whirlpool Corp. as a partner for its 350-acre sustainable mixed-use development. The $250 million Newbury Market in the South Hills is one of the largest brownfield projects in Pennsylvania. Site work is under way, with the official groundbreaking coming in May. Newbury Market's build-out will be anchored by a 1.2 million-sf town center with commercial space for big-box and small-shop retail, restaurants, banks, offices and hotel. The residential component will boast 225 single-family homes, including the first zero-energy homes available communitywide in the state, and 225 apartments. The development will include a sledding hill, pool and clubhouse. Model homes will be ready in the summer. To date, 15 homes have been presold. The commercial space will begin its rounds of openings in fall 2011. Single-family homes range from 1,700 sf to 5,000 sf, with prices from $200,000 to more than $800,000. Apartment rent is projected at $900 to $2,000 per month. Whirlpool Gold appliances will be in the single-family homes and KitchenAid appliances in the multifamily units. "Newbury Market is one of the best examples available of what hard work and extraordinary vision can create within a community," said Tom Halford, general manager, contract sales and marketing for Michigan-based Whirlpool. "To say that this project aligns with Whirlpool Corporation's commitment to sustainable values, high performance and quality is an understatement. We're happy to be part of this project and feel connected to the community." EQA Landmark has spent the past seven years working with the former landowner, Beazer East, to develop and clean up Newbury Market's land, once a major manufacturing center. ............................... Plan Advances for 315,000-SF Data Center CHICAGO – JRMTechnology LLC has garnered city approval to develop a 315,000-sf data cent on Chicago's Near South Side. Construction is penciled to start in the fall, with completion eyed for late 2011. The development site is located at 111 E. Cermak Rd., just two blocks from a 1.1 million-sf data carrier site at the former RR Donnelly printing plant. The 350 Cermak Rd. property has reached 95 percent occupancy.James R. McHugh, principal of the Chicago-based development group, pointed out that tenants at 350 Cermak Rd. are seeing nearby data center space. And the developer is actively negotiating with tenants for the new six-story facility, which will feature 143,000 sf of raised-floor space, 18-foot ceiling heights and all the bells and whistles for 21st century needs. James McHugh Construction Co. of Chicago is the design/build contract and ESD Inc., also Chicago, is the lead architect and engineer. Archideas is the project's consulting architect and Chris Stefanos & Associates is structural engineer. The plan is to seek LEED Gold certification. "This will be the first data center in the downtown area designed and built specifically as a data center from the ground up," said James R. McHugh, principal of JRMTechnology LLC. "Every aspect of the building will be tailored to clients' needs, from robust redundant power sourcing to cooling systems and security." James McHugh Construction Co. of Chicago is the design/build contract and ESD Inc., also Chicago, is the lead architect and engineer. Archideas is the project's consulting architect and Chris Stefanos & Associates is structural engineer. The plan is to seek LEED Gold certification. ............................... Stewards Mapping Out New Plan For Treasured Ford Properties DEARBORN, Mich. – The Henry Ford Estate and Ford House, national historic landmarks, will become a national model of sustainability under an agreement between the University of Michigan-Dearborn and Edsel & Eleanor Ford House in Grosse Pointe Shores, Mich. After 53 years, the university will transfer ownership of the Henry Ford Estate to the Ford House. The official transfer is slated for July 1, 2011. The estate has undergone an extensive comprehensive analysis by historic restoration architectural firm of Chambers, Murphy, Burge to begin the process for restoration and reinterpretation to catapult the property into a greater educational and cultural resource for the community. The estate will close prior to the transfer so restoration can begin on the buildings and grounds. The stewards are planning to complete the project in phases to celebrate milestones in the Ford family history: Henry Ford's 150th birthday in 2013, the estate's 100th anniversary in 2015 and Clara Ford's 150th birthday in 2017. "Bringing together the estates of Henry Ford and his only child, Edsel offers a multitude of new opportunities," said Kathleen Mullins, president of Ford House. "This is the family that put the world on wheels and dedicated itself to the community; it is a story of innovation and design, inspiration and reflection, philanthropy and responsibility; it is a story that will be more effectively shared with a national and international audience with the coming together of these important properties." From the university's perspective, the transfer opens the door for the Henry Ford Estate to "achieve its full potential as a first-rate historic attraction and allow the university to remain committed to its core academic mission," said UM-Dearborn Chancellor Daniel Little. Richard Moe, president of the National Trust, said the combined properties "have a unique opportunity to become a testing ground for bold ideas, innovative approaches and new ways of thinking about how we preserve and present historic sites. The initiative also has the support of the American Association of Museums. ............................... Colliers Expands in Ohio, Chicago SEATTLE – Colliers International has added Adena Commercial in Central Ohio and Colliers Bennett & Kahnweiler in Chicago. The Ohio firm joins Colliers' ranks May 1, getting an official re-branding as part of the transition. Adena's entire team is staying in place as are the headquarters offices in the suburbs and downtown Columbus. Founded in 1997, Adema Commercial is led by Richard Schuen, president. "With Adena Commercial working with us shoulder-to-shoulder, we have a market-leading presence in Central Ohio. We intend to build on this strength by actively seeking out opportunities to further grow our company in regional markets across the country," said Dylan Taylor, CEO for Colliers International. Chicago's Colliers Bennett & Kahnweiler will act as the Midwestern regional hub for Colliers International. "While the firm has been collaborating with Colliers International for over a decade, this integration will allow us to more seamlessly tie into the vast array of services which Colliers International provides on a global basis," said David Kahnweiler, chairman of the Chicago firm. ............................... Hampshire Cos. Bags $11.3 Million Refi HACKETTSTOWN, N.J. – The Hampshire Cos. has secured $11.3 million in a refinance of the 200,860-sf Hackettstown Commerce Center. The industrial flex complex has three buildings and room for more on a 5.13 developable tract of land. The existing buildings are leased to eight tenants, resulting in 79 percent occupancy for the owner. Holliday Fenoglio Fowler LP senior managing director Jon Mikula and associate director Michael Klein arranged a five-year, fixed-rate loan through M&T Bank for the Morristown, N.J.-based borrower. In a press release, HFF said the loan proceeds retired mortgages on two properties and covered closing costs. ............................... $5 Million Loan Clears for Historic Building SAN FRANCISCO – ATC Partners LLC has retired a maturing CMBS loan with a five-year, fixed-rate financial package from Wells Fargo Real Estate Group. The collateral is a 61,680-sf historic office building in the North Waterfront District. Holliday Fenoglio Fowler LP managing director Peter Smyslowski and senior managing director Paul Brindley arranged the $5.18 million of new financing for the San Francisco-based owner of 1000 Sansome St. The four-story building sits at the base of Coit Tower near Pier 39. The office building, built in 1910, was renovated in the early 1990s. The building is 92 percent leased to a tenant mix weighted by engineering and technology firms. ............................... Turner Nabs $300 Million Project SAN JOSE, Calif. – Santa Clara County has selected Turner Construction Co. to manage a $300 million replacement hospital project for the Santa Clara Valley Health and Hospital System. Work begins in the summer on the 375,000-sf project, with completion penciled for 2012. The hospital, featuring a 168-bed tower, will be classified as a Level 1 adult and pediatric trauma center, specializing in burn, traumatic brain and spinal injuries. The project is designed to achieve LEED certification. The existing public hospital is located at 751 S. Bascom Ave. ............................... Cole Portfolio Secures $51.6 Million PHOENIX – The Cole Real Estate Investments has closed on a $16 million mezzanine loan with New York-based Investcorp Real Estate in a piggybacked transaction with Royal Bank of Scotland for $35.6 million. The capital is secured by a 22-property portfolio totaling 599,209 sf. Through its Cole Credit Property Trust Retail Portfolio I, the investment group has been amassing single-tenant properties in central, eastern and southern states. The portfolio spans 11 states, with the mix consisting of 21 retail assets and one office building.According to a press release, the combined $51.6 million was used by the Phoenix-based borrower to refinance outstanding debt on the portfolio. The Cole I portfolio is fully leased to seven national and regional tenants. "Cole I Portfolio signals an awakening in the market for real estate debt and as the market continues to open up, Investcorp expects to remain a prominent and active participant," said Christopher Hoeffel, Investcorp managing director. The deal is being touted as the first multi-borrower commercial mortgage-backed securities transaction since 2008. ............................... Work Starts on Verizon Tech Center WALTHAM, Mass. – A joint venture partnership has broken ground on a 60,000-sf three-story project for Verizon Communications Inc., which already has 136,000 sf in the city. The Verizon Technology Innovation Center is slated for completion in early 2011. The developer is Davis Marcus Partners, a JV between Marcus Partners and the Davis Cos. in partnership with Parsippany, N.J.-based Prudential Real Estate Investors. Howard Elkus of Elkus-Manfredi is the project architect, designing the building to LEED Silver standards. The Innovation Center will be situated in the Reservoir Woods East Campus off Winter Street. Verizon's goal with the centers is to create a catalyst for delivering new and innovative devices and services and provide a central base for Verizon's advanced technology initiatives. The building will feature lab and office space as well as an executive briefing center. ............................... Saddle Creek Signs Five-Year Lease ONTARIO, Calif. – Saddle Creek Corp. of Lakeland, Fla., has taken control of a 432,308-sf warehouse/distribution building in the Inland Empire, signing a five-year lease for the site. The third party logistics firm's new shop will be 5431 E. Philadelphia St. Ron Washle and Mark Kegans, both SIOR and senior vice presidents for Grubb & Ellis Co., and Ladson Montgomery, senior vice president of G&E affiliate Phoenix Realty Group, represented the tenant. ProLogis had its in-house team at point. ............................... Colliers Barry Joins Cassidy Turley MILWAUKEE – The Colliers Barry team has joined St. Louis-based Cassidy Turley. During the transition, the office will be flagged Cassidy Turley Barry. "This union offers benefits not just to Cassidy Turley but, most importantly, to our clients as we strategically expand our service offerings and our geographic footprint," said Mark E. Burkhart, CEO of Cassidy Turley. The Milwaukee-based firm is nearing its 90th year in the commercial markets, exceeding more than one billion sf of sold and leased real estate and tens of thousands of acres of land sale in Wisconsin. Its more recent accolades include the First Place Deal of the Year Award from the Milwaukee Business Journal. ............................... Dacor Plans HQ Relocation COSTA MESA, Calif. – Dacor is relocating its headquarters team to Plaza Tower after spending eight years as a corporate tenant of a neighboring city. Industry sources are reporting the firm leased about 7,000 sf at 600 Anton in Costa Mesa. Garrick Shupe of Jones Lang LaSalle represented the luxury kitchen appliance designer, manufacturer and distributor, which is moving from Diamond Bar. Dick Frost of South Coast Plaza represented Plaza Tower's owner, C.J. Segerstrom & Sons. The LEED-EB Gold asset is situated within walking distance of 40 restaurants. ............................... Grubb & Ellis REIT II Pockets More Medical Office Assets SCOTTSDALE, Ariz. – Keeping up its buying spree, Grubb & Ellis Healthcare REIT II Inc. has closed on the $10.97 million purchase of the 88,000-sf Parkway Medical Center, which has been under contract since late January. The two-building medical office property is located at 3609 and 3619 Park East Dr., in Beachwood, Ohio, about 10 miles from Cleveland's CBD and a half-mile from the 53-acre Ahuja Medical Center, an under-construction project of University Hospitals. Parkway Medical Center, situated on 5.1 acres, is 87 percent leased to University Hospitals and several physicians. The property consists of a 51,000-sf building constructed in 1972 and a 37,000-sf structure that delivered in 1987. Bob Nosal of Grubb & Ellis Co. represented the seller, Parkway Medical Center LLC. "Parkway Medical Center is well located in a major metropolitan region and less than one mile from what will be a significant new hospital," said Danny Prosky, president and COO of the Scottsdale, Ariz.-based REIT. "As we build Grubb & Ellis Healthcare REIT II, we are not only targeting attractive, performing medical-related assets located near significant medical campuses, we are also seeking to attain geographic diversification, which we are clearly achieving with our initial acquisitions." Still to come is the $8.4 million purchase of the 37,000-sf Highlands Ranch Medical Pavilion in Highlands Ranch, Colo., according to an SEC filing. The REIT also put the asset under contract in late January. The Colorado property, sitting on a 3.5-acre tract, was developed in 1999. It is 94 percent leased. In other recent purchases, the REIT reported in the SEC filing that it paid $6.5 million to Stingray Properties LLC for the fully leased Center for Neurosurgery and Spine in Sartell, Minn. The 37,000-sf building was developed in 2006 on a 3.7-acre tract. All leases expire in spring 2016. In Lacombe, La., the REIT doled out $6.9 million for a 34,000-sf office building built in 2004 on the campus of the Louisiana Medical Center and Heart Hospital. ............................... 105,000-SF Office Building Brings $3.3 Million CHELMSFORD, Mass. – Hittite Microwave Corp. has paid $3.3 million for a 105,000-sf office building to Sovereign Bank. The asset at 2 Elizabeth Dr. is less than a mile from Hittite's world headquarters at 20 Alpha Rd. "This building perfectly met Hittite's needs and will accommodate their growth program going forward," said Peter Richardson, senior vice president of Jones Lang LaSalle, who was teamed with former vice president Flory McCarthy on the sales assignment. Hittite's new property consists of two 50,000-sf buildings connected by a three-story atrium. The proximity to the buyer's headquarters "was a major factor in the decision," Richardson added. ............................... $50 Million Wartime Museum Site Revealed PRINCE WILLIAM COUNTY, Va. – The $50 million Wartime Museum will be built on 70 acres of donated land near Interstate 95 in Prince William County. The national museum's grand opening is slated for Veterans Day 2014. The Hylton family donated the land for the national museum. "It is fitting that The Wartime Museum will be located in Prince William County where the military has played a significant role in our community's history," said Corey A. Stewart, chairman of Prince William County's board of county supervisors. "The museum will complement the existing resources of The National Museum of the Marine Corps and Manassas National Battlefield Park, and provide continued confirmation that Prince William County is a premier destination for anyone interested in military heritage." The Wartime Museum is estimated to create 85 direct and indirect jobs and attract upward of 300,000 tourists per year. The projected economic impact is $10 million to $25 million annually for hotels, restaurants and other businesses in the area. Site preparation will start later this year. The museum will honor all veterans from World War I to present day. Indoor and outdoor exhibits will recreate battlefront scenes in an interactive format, including displays of military vehicles and artifacts. ............................... Tropicana's $165 Million Facelift Gets Under Way LAS VEGAS – A $165 million overhaul is under way on Las Vegas landmark, the Tropicana. Construction is to be completed in April 2011. Planned to mimic Florida's South Beach, the overhaul includes a redesigned façade, all new rooms and suites, restaurants, bars and entertainment options. "We are changing everything. We are turning great spaces into emotionally engaging environments. This transformation will revitalize our brand while redefining the ultimate resort experience, bringing the best of South Beach to the heart of Las Vegas," said Alex Yemenidjian, chairman and CEO of Tropicana Las Vegas. The pool area, totaling four acres, will be transformed into a tropical beach, complete with gaming, bars and restaurants. Details about a new nightclub and beach club will be announced May 11. Dining venues will include a 1,000-seat showroom, 300-seat cabaret and 150-seat bar and lounge. The 50,000-sf casino will include a poker room plus a race and sports book. The repackaged design will feature more than 100,000 sf of meeting and function space to accommodate up to 3,000 people. The conference center's main ballroom will have more than 25,000 sf and 11 breakout meeting rooms along with 10,000 sf of additional function space and eight smaller breakout rooms and a 54,000-sf exhibition hall. ............................... 43 Million Science Project Ready to Start EAST LANSING, Mich. – Michigan State University is gearing up to break ground on a $43 million Plant Sciences building. The 90,000-sf expansion to the campus is slated for completion in 2012. The groundbreaking ceremony will be held Friday. The building was designed by Detroit-based SmithGroup, which also provided engineering and site design services. The building is being outfitted with open lab spaces, growth chambers, a 220-seat auditorium and central collaborative space for meetings. Plant Sciences was founded in 1856, one of the first programs to be established at Michigan State University. The new research facility is envisioned as "a new front door" for Plant Sciences' programs and used as a recruiting tool to attract prestigious faculty and staff. ............................... Grubb & Ellis Making Ohio Drive SANTA ANA, Calif. – Grubb & Ellis Co. has put Columbus and Cincinnati on its itinerary for corporate-owned offices as part of its two-year expansion push. Vineet Sahgal, executive vice president in Grubb & Ellis' Chicago office, will work with Bob Nosal, the Cleveland market leader, to establish a corporate-owned presence instead of affiliate offices. "We've successfully leveraged our affiliate relationships for many years and today's announcement doesn't mean we are abandoning our affiliate strategy," said Jack Van Berkel, president of the Santa Ana, Calif.-based Grubb & Ellis. "Affiliate relationships make sense in many markets, but we are intent on increasing our owned-office presence." Grubb & Ellis has affiliations in 63 markets with independently owned commercial real estate companies. The decision to open corporate-owned locations in Ohio resulted from a market-by-market review conducted in the past two years, according to a press release. Similar moves were orchestrated in the first quarter for Phoenix and San Diego. ............................... Developer Eyes 21 Krispy Kreme Stores PHILADELPHIA – Dough Nut LLC and Krispy Kreme Doughnut Corp. have signed a development agreement to add 21 stores within seven years in southeastern Pennsylvania, southern New Jersey and northern Delaware. The Krispy Kreme shop will open by year's end. The area developer, Dough Nut, is owned by Keith Morgan, former CEO of AAMCO Transmissions, and Brian Zaslow, who is the franchise company's managing director and most recently was vice president of marketing for Aramark Corp. "We are delighted that a franchise industry veteran of Keith's caliber has committed to making a significant investment in our brand," said Steve Lineberger, president of US stores for the Winston-Salem, N.C.-based company. "Having the right franchise partner in the greater Philadelphia market was critical for us, and because of his years of franchise experience and deep commitment to the community, we believe Keith Morgan is the right partner for Krispy Kreme." ............................... GMAC Exits Europe; Sells ResCap Piece to Fortress MINNEAPOLIS – GMAC Financial Services is selling its European mortgage platform and assets to Fortress Investment Group LLC. The transaction includes about 6,000 residential mortgage whole loans. The deal, awaiting regulatory approval, represents about 10 percent of Residential Capital LLC's total assets at 2009's close and about 40 percent of its total on a pro forma basis. In a press release, the Minneapolis-based seller said it expects no material gain or loss in the sale of its business in the United Kingdom, Germany and The Netherlands. "The agreements to sell the European mortgage assets and businesses are key steps toward our objective of reducing the ongoing exposure for GMAC from the legacy mortgage operation. This is a significant achievement and will contribute in putting GMAC on a path toward improved performance," said GMAC's CEO Michael A. Carpenter. Fortress is acquiring seven ResCap companies. As a portfolio investment, each company will be kept financially and operationally separate from Fortress Investment Group LLC, Fortress managed funds and their affiliates. Peter L. Briger, co-chairman of New York-headquartered Fortress Investment Group, said the acquisition "provides us with an increased ability to source and identify attractive investment opportunities." Fortress has a presence in Europe, but the deal greatly expands its footprint. The buyer has $31.8 billion of assets under management for private equity funds and hedge funds worldwide. In a separate transaction, GMAC closed a $177 million whole loan transaction in the U.K. The sale and others in the pipeline have set up GMAC's exit from the European mortgage market. ............................... Monsanto Closes $435 Million Buy Of Pfizer's 1.5 Million-SF Campus CHESTERFIELD, Mo. – As promised last November, Monsanto Co. has regained ownership of the 1.5 million-sf Chesterfield Village Research Center from Pfizer Inc. in a $435 million deal. The center was built by Monsanto and opened in 1984, then transferred in 2000 as part of a merger. The deal was slated to close by midyear. The campus features 250 laboratories, 108 plant growth chambers and two acres of greenhouses. Pfizer has signed a lease for part of the space to continue its Biotherapeutic Pharmaceutical research. The agreement calls for Monsanto to pay the $435 million in stages for the 210-acre complex at 700 Chesterfield Parkway North in West Chesterfield. "This Chesterfield Village Research Center is truly a world-class facility and our agreement with Pfizer will enable both of our companies to maintain our deep research roots in St. Louis for years to come," said Robb Fraley, Ph.D., Monsanto's chief technology officer. "The research we do at this facility is the foundation of our business, paving the way for next-generation products that create real benefits on the farm and in our world." Monsanto has been leasing 400,000 sf of the campus from Pfizer since 2003 when it acquired Pharmacia Corp., once Monsanto's parent. It has 400 employees on site, mostly researchers. Monsanto said the expanded resources will allow it to double yields in core crops such as drought-tolerant corn and higher-yielding soybeans by 2030. ............................... Investors Expecting Distressed Loan Sales to Climb in 2010 NEW YORK – In a new pulse reading of the investment market, Ernst & Young LLP has found optimism is riding high that non-performing loan sales will pick up later this year. In 2009, more than 60 percent of a survey group bid on distressed loans, but less than 17.5 percent were successful in completing transactions. E&Y's Real Estate Distress Services Group had surveyed investment and opportunity funds, private equity funds, institutional investors and real estate developers, only to discover that investors were "foiled" more than fulfilled due to sellers being unwilling or unable to sell. In the new survey, two-thirds of the respondents said they had up to $500 million each to invest and nearly five percent had $500 million or more to place. "The continued development of an efficient market for nonperforming loans here in the US will depend on sellers being prepared to enter the process over the next six months," said Chris Seyfarth, partner in the E&Y practice group. More than half of the surveyed investors are positioning themselves for the pickup, of which 40 percent expect to be in the market after June 1. The bullish attitude is tied to the premise that the nation's economic recovery will be well underway and commercial real estate's bottoming out will be within sight. Seventy-five percent of the respondents said they are eyeing distressed whole loans backed by office, industrial and multifamily properties. About one-third of the investors are leaning toward distressed residential loans, i.e. single family and condos, and acquisition and development and construction loans. There are investors in the survey group who are eyeing hotel, CMBS and land loans. No one admitted to interest in residential MBS loans. Despite the optimism, E&Y said "a critical piece of the puzzle for a robust market in distressed loans in 2010 is still absent." And that is the fault of the banks, which "generally have been slow to deal with their problem loan portfolios," researchers concluded. The E&Y survey concluded regional banks and thrifts will be the most likely sellers of commercial real estate loans this year. ............................... Dow Jones' 200-Acre Campus To Get Solar Power Retooling SOUTH BRUNSWICK, N.J. – Dow Jones & Co. is making plans to outfit its 200-acre Bernard Kilgore campus in central New Jersey office with one of the largest solar power installations in the U.S. The system will generate 4.1 megawatts. The Dow Jones campus, located along U.S. Route 1, houses nearly 2,000 workers, the publisher's largest facility in the nation. The investment is part of a global energy initiative by its parent, News Corp., and is the largest commitment to date to install on-site renewable power systems. "What makes this investment attractive is that not only are there meaningful environmental benefits but we also will see significant tax incentives and a substantial reduction in our annual energy costs," said Stephen Daintith, Dow Jones' COO. The plan calls for 13,000 solar panels on nearly 230,000 sf of parking space. The system is projected to generate the equivalent of five million kilowatt-hours of electricity per year. The energy will be used to power servers and computers. At peak performance, the system will be able to supply half of the site's energy needs. "New Jersey is a leader nationwide in supporting solar-power installation, and we're grateful for the support of the state as well as PSE&G and the township of South Brunswick for assisting us in sourcing alternative, renewable energy such as solar," Daintith said. Dow Jones is partially funding the installation through PSE&G's solar loan program. ............................... Claire's Pockets $18.1 Million In Sale-Leaseback Deal HOFFMAN ESTATES, Ill. – Claire's Stores Inc. has completed a sale-leaseback of its headquarters and distribution center, collecting $18.1 million from Angelo, Gordon & Co.'s net-lease group. J. Per Brodin, Claire's CFO, said the transaction closed on "terms and timing" as originally proposed. CB Richard Ellis represented Claire's, which has been a portfolio investment of Apollo Management since 2007. The Claire's property is located at 2400 W. Central Rd. in Hoffman Estates, Ill. "The transaction is among the last we will have done in our first fund. We expect 2010 to be a very active year for us and the market as a whole and are looking to invest as much as $400 million," said Gordon J. Whiting, founder and chief portfolio of AG Net Lease. ............................... A&B Buys 88,300-SF Center KAILUA-KONA, Hawaii – A& B Properties Inc. once again is holding the reins to the 88,300-sf Lanihau Marketplace after a four-year hiatus. The Honolulu-based A&B's new portfolio piece is 99 percent leased. "We sold Lanihau at a good point in the market cycle, but we've always liked the center," said Norbert M. Buelsing, president of the investment group. "We are fortunate to have this opportunity to add this property back to the portfolio." The buyer deployed 1031 exchange funds to make the close. The center's roster includes Sack N Save, Longs Drugs, Bank of Hawaii and American Savings. ............................... Strategic Storage Trust Makes 570-Unit Purchase in Arizona MESA, Ariz. – Strategic Storage Trust Inc. has taken title to the 570-unit Augusta Ranch Self Storage, an 81 percent-leased property with 75,600 sf of rentable space. The class A asset, positioned on 4.6 acres at 9252 E. Guadalupe Rd., will be re-branded as a SmartStop. The property, developed in 2002, is 20 miles east of Phoenix Sky Harbor International Airport and one mile east of Loop 202. The property features drive-up units, climate-control units, RV/boat parking, a retail office and truck rental dealership. "This site provides an excellent self storage experience our management team can enhance and capitalize on to meet the growing needs of the surrounding area," said Wayne Johnson, senior vice president of acquisitions for the publicly traded company based in Ladera Ranch, Calif. ............................... 111,794-SF Warehouse Bags $9.9 Million CITY OF INDUSTRY, Calif. – Sun Hing Foods Inc., a food wholesaler, has bought a 111,794-sf warehouse and distribution center for $9.9 million from a local seller, Bechler Corp. Adam Dzierzynski, vice president for Lee & Associates in the City of Industry office, and associate Dennis Keane represented the buyer of 14841 Don Julian Rd. Designed with a 30-foot clear height and two-story office, the building delivered in 2002. "The market has started to show signs of improvement and a transaction of this magnitude proves that there are still buyers with capital," Dzierzynski said. "With more deals getting done, it appears that the gap between buyers and sellers has dwindled and sellers are coming to terms with market values." ............................... Hilton Restructures, Axes $4 Billion of Debt MCLEAN, Va. – Hilton Worldwide has restructured nearly all of its existing debt, pushing all maturities until November 2015. In a press release, the hotelier said the action cut its debt load by nearly $4 billion. The transaction involved the purchase and retirement of $1.8 billion of debt and conversion of $2.1 billion of junior mezzanine debt to preferred equity. "This debt restructuring is another important step forward for the company, and I would like to thank all of our lenders as well as our investors, led by Blackstone, for their tremendous efforts in completing this transaction," said Christopher J. Nassetta, president and CEO of the McLean, Va.-based Hilton Worldwide. "Together with several recent achievements, Hilton Worldwide is positioned very well to capitalize on the recovery in the hospitality industry." ............................... 600,000-SF Manufacturing Site Nails LEED EB Gold Status TOPEKA, Kansas – Texas-based PepsiCo's Frito-Lay manufacturing site has earned LEED Existing Building Gold Certification from the U.S. Green Building Council. The building sits on 188 acres in Shawnee County. "It's only through the efforts of our associates and business partners that we were able to retrofit this nearly 30-year-old building and make it more environmentally friendly," said Allen Moore, technical manager, Frito-Lay Topeka. "Achieving LEED EB Gold standards is another significant step on our company's sustainability journey, and solidifies our place as a leader in Kansas and in the U.S." ............................... Nordstrom Plans First Tucson Store TUCSON – In fall 2011, Seattle-based Nordstrom Inc. will open its first store in Tucson – a 33,200-sf Nordstrom Rack. The retailer has inked a lease for The Corner, a new open-air center at the intersection of Oracle and Wetmore roads being developed by BP Wetmore Phase III Investors LLC, an affiliate of Tucson-based Bourn Cos. LLC. The 79,000-sf center neighbors Tucson Mall. The retailer has two Nordstrom stores and two Racks in Scottsdale and Chandler. Coming this fall is a Nordstrom Rack at Arrowhead Crossing in Peoria. ............................... West Hollywood Plan Stirs Controversy WEST HOLLYWOOD, Calif. – A Chicago developer has unveiled a plan to raze the Tower Records' store and redevelop the Sunset Strip tract with a five-story office and retail building. The tear-down is slated for January 2011. Developer Sol Barket said the new building will feature electronic billboards with streaming advertising as a revenue source for the project. The development plan includes a David Barton gym. West Hollywood residents and business people are lobbying to protect the building, which historically has been dedicated to the music industry. "Here we have a world famous record store that became an icon and so easily our community will allow it to disappear entirely," said Jerome Cleary, a local resident. ............................... Dealmakers Ink 217,712-SF Lease JOLIET, Ill. – Stepan Co. has signed a 217,712-sf lease for a build-to-suit building on 16.4 acres in CIC-Joliet business park. CenterPoint Properties Trust will develop the building for the Northpoint, Ill.-based Stepan, a manufacturer of specialty and intermediate chemicals used in the production of household, industrial, personal care, agricultural, food and insulation products. The publicly traded company has more than 1,500 workers worldwide. Dan Leahy of NAI Hiffman represented the tenant. "The transportation savings and flexibility realized through the intermodal location will benefit Stepan and their global supply chain now and in the future," said Michael Murphy of Oak Brook, Ill.-based CenterPoint Properties. ............................... Blackstone-Led JV Gets Court OK For $1.3 Billion Take-Over Plan PORTLAND, Ore. – Stayton SW Assisted Living, formerly Sunwest Management, has secured a bankruptcy judge's nod to sell 149 senior housing facilities for $1.3 billion to a stalking horse bidder that includes the New York powerhouse, Blackstone Real Estate Advisors VI LP. A bankruptcy auction will be held on or about May 17, with a closing penciled for July. In early March, the court appointed Bettina Whyte of Bridge Associates LLC to evaluate the proposal by Blackstone, Emeritus Senior Living and Columbia Pacific Advisors LLC, both headquartered in Seattle, and an offer from Boston-based AEW Capital Management LP. The JV's $1.3 billion offer is made up of cash, securities and the assumption of debt. Throughout the process, the bidders kept upping the ante to emerge victorious, according to a press release. US District Court Judge Michael Hogan blessed an agreement for the Blackstone/Emeritus Joint Venture to take controlling interest and permit other claimants to exchange their interests for cash or up to 49 percent of JV partnership units. Other professionals involved in the resolution were retired Lane County Circuit Court Judge Lyle Velure and Michael Grassmueck of the Grassmueck Group as receiver. "If it were not for Judge Hogan's concern for investors, his belief in the company, and his willingness to stand up to secured lenders seeking to foreclose on their collateral, most of us investors would have lost everything," said Bill Bryan, chairman of the management committee for the investors. "Instead, we are looking forward to prospects of a meaningful return of our investments. Judges Hogan and Velure, the professionals working on this case, and the combined creditors' committees have done a terrific job in making that possible." In the coming weeks, the court plans to appoint an investment banker to advise the estate during the bidding and auction process. As lead bidder, the JV will have customary overbid protection and will receive break-up fees if it's outbid. The sale is contingent upon confirmation of Sunwest's reorganization plan, completion of loan modifications and transfers of operating licenses. ............................... Siemens Signs Louisiana Lease ST. ROSE, La. – Siemens Corp. has leased 25,498 sf of office space in Service Center 24 in the James Business Park near New Orleans from the Lightstone Group. The business park, fronting Airline Drive, is located between the New Orleans International Airport and Interstate 310. Sealy & Co. Inc. manages Lightstone's South Louisiana portfolio, which is now 92 percent leased. "This deal brings together Siemens Corporation and Siemens Sylvania and allows them to work efficiently," said Jennifer Lee, director of marketing and leasing for Sealy & Co., who brokered the lease for the New York-based landlord. ............................... $17 Million Off-Market Transaction Takes Fire Island Commercial FIRE ISLAND PINES, N.Y. – In an off-market transaction, three investors have banded together to pay $17 million for the majority of commercial property and establishments in Fire Island Pines. The backers of FIP Ventures are Matthew Blesso, president of New York-based Blesso Properties; Andrew Kirtzman, a well-known New York journalist and owner of the Madison Fire Island Pines bed and breakfast; and Seth Weissman, managing partner of Weissman Equities of Manhattan and summer renter on the island. The trio has taken over the Pavilion nightclub complex, Blue Whale and Bay Bar restaurants, Hotel Ciel, a grocery store, gym, clothing store and other retail spaces in addition to residential properties. "This no-bid deal provided a rare opportunity to acquire a highly profitable set of properties at a below-market price," Weissman said. "We weren't surprised when appraisers valued the properties significantly higher than our purchase price." The new owners plan to keep major Pines institutions intact, but undertake a top-to-bottom renovation of Hotel Ciel. Blesso and architect Andrea Steele will collaborate on the renovation design. A reopening tentatively is set for May 2011. Also, New York restaurateurs Jason Weiner and Eric Lemonides will have a role in the redo of the Blue Whale restaurant. ............................... Healthcare REIT, Deaconess Complete $45.2 Million Deal SCOTTSDALE, Ariz. – Healthcare Trust of America Inc. and Deaconess Health System Inc. have finalized the $45.2 million sale of a 260,500-sf, five-building medical office portfolio in Indiana. The deal is the second one in the past year between the Scottsdale-based REIT and Evansville, Ind.-based Deaconess, which previously sold its properties in Oklahoma City. The REIT's new purchase is fully leased Deaconess buildings in Evansville and Newburgh, Ind., all adjacent to the 365-bed Deaconess Hospital and 116-bed Deaconess Gateway Hospital, a new six-story building. "The Deaconess Portfolio provides us with the opportunity to own core real estate assets essential to the healthcare delivery model in Southern Indiana," said Mark D. Engstrom, the REIT's executive vice president of acquisitions. ............................... Florida Law Firm Inks 11-Year Renewal WEST PALM BEACH, Fla. – The law firm of Casey Ciklin Lubitz Martens & O'Connell has signed an 11-year renewal for two floors, totaling 24,054 sf, at Northbridge Centre. The firm, marking its 25th anniversary, is an original tenant in the 25-year-old high rise. The 32-attorney firm will occupy floors 19 and 20 in the 21-story, 288,131-sf office building at 515 N. Flagler Dr., owned by Dallas-based Gaedeke Group LLC. The firm's partners spent nearly two years exploring options, including development. The new headquarters lease substitutes the 20th floor for the 18th floor. "The availability of the 20th floor changed the dynamics," said Alan Ciklin, managing partner of the firm. "It was already built out as law firm space. It worked for us, with very few renovations, and will be an easy move." The perks included high-end furniture that the former tenant left behind. Casey Ciklin Lubitz Martens & O'Connell historically has been one of the largest tenants at Northbridge Centre, a favored office location for law firms because it is one block from the Palm Beach County Judicial Center complex. The lease was set to expire at year's end. Greg Katz in Studley's Miami office represented the tenant while Gaedeke vice president Kirk Fetter handled the owner's side of the talks. In other Northbridge Centre news, the office building won its second consecutive Energy Star designation, attaining 91 points out of a possible 100. It also is a regional winner in BOMA's office building of the year award for the 250,000-sf to 499,000-sf category and will compete in the nationals later this year. ............................... COPT-Led Partnership Plans 5 Million SF of Office, Retail HUNTSVILLE, Ala. – Corporate Office Properties Trust Inc. (COPT) and Alabama-based Jim Wilson & Associates LLC will joint venture on the development of Redstone Gateway, a 468-acre tract adjacent to Redstone Arsenal that the partners have leased for the long-term from the federal government. The JV plans to develop a business park, adding roughly 4.6 million sf of office and retail space at the entrance to Redstone Arsenal, which is being expanded due to the 2005 Base Realignment and Closure (BRAC) plan. The development, including a hotel, will be built out in three phases. The office component, totaling 4.4 million sf, will have three- to six-story office buildings, each 80,000 sf to 165,000 sf, of which 1.2 million sf will be secured space. As part of the initiative, Jim Wilson & Associates succeeded in getting the site annexed by the city of Huntsville, which also created at $76 million Tax Incremental Financing district to fund the majority of infrastructure costs. COPT, headquartered in Columbia, Md., is the JV's managing partner with a controlling interest and responsibility for development, leasing and management of Redstone Gateway's office component. The 38,000-acre Redstone Arsenal now employs more than 30,000 workers, but is slated to add 4,700 military and civilian workers on base and nearly 15,000 indirect jobs in the region as a result of the initiative. Nearly $450 million of military construction is under way and slated for completion by September 2011 to support Redstone Arsenal's role in the BRAC relocation plan, which will make it the epicenter of all research, development, procurement and sustainment as well as the home base of the U.S. Army Materiel Command. Also moving to Redstone will be the headquarters for the U.S. Army Space and Missile Defense Command, U.S. Army Security Assistance Command, Missile Defense Agency, Army Contracting Command and the Expedition Contracting Command. It also houses NASA's George C. Marshall Space Flight Center. "Our expansion to the City of Huntsville fits within our Super Core strategy of locating adjacent to government demand drivers," said Randall M. Griffin, COPT's president and CEO. "We plan to build a Class A office park that will capture this demand as well as support the needs of existing COPT tenants located at the base." COPT has scheduled a conference call Monday at 10 a.m. EST to provide additional project details. ............................... USAA, IDI Team on 1.1 Million-SF Project FAIRBURN, Ga. – San Antonio-based USAA Real Estate Co. and Industrial Developments International Inc. (IDI) will build a 1.14 million-sf distribution warehouse for Clorox Sales Co., which signed a 10-year lease for the 72-acre project at Southcreek Industrial Park. The cross-dock building is slated for completion in February 2011. Clorox's new distribution center will have 164 docks, 328 trailer storage spaces and 223 parking spaces for non-commercial vehicles. The owner of record is US Industrial REIT III Distribution. Southcreek Industrial Park is located along Interstate 85 south of Atlanta's Hartsfield-Jackson International Airport. It is the second-largest industrial park in Greater Atlanta. USAA and Clorox have a longtime landlord-tenant relationship. Their recent deals include a 10-year lease in Redlands, Calif., and build-to-suits in Chicago. Atlanta-based IDI and USAAA recently partnered on a build-to-suit project for Home Depot in Columbia, S.C. ............................... New Firms Emerge in L.A., Denver LOS ANGELES – In unrelated moves, veterans in California and Colorado have formed commercial real estate ventures. In Los Angeles, Farzin Emrani, Shlomi Ronen and Steven Yazdani have rolled out Lucent Capital to seal a six-year business relationship that began at George Smith Partners and carried over to Carlton Advisory Services. The executives have arranged and structure more than $4 billion of real estate capital and marketed more than $1 billion of loan sales last year in the U.S. and Mexico. Lucent Capital's focus will be loan sale advisory and equity and debt placement. The firm has affiliate offices in Mexico and London and is planning to expand to select U.S. and international markets such as Orlando, Tel Aviv and Hong Kong. "With our broad experience and relationships we have the ability to connect the right capital with the right opportunity, which is a strong advantage for our clients," said Ronen, managing director of Lucent's equity and debt placement group. In Denver, Jennifer Aleman Hutter and Elizabeth Weiner formed KAP Group, a marketing firm that advises real estate private equity managers seeking institutional capital. With a combined 20 years of experience, KAP's founders previously were part of the real estate private fund group at Credit Suisse, assisting 14 real estate managers through each stage of raising more than $8 billion of equity. "As investors are again considering new real estate investments, managers need to be prepared for increased due diligence and higher standards of transparency," Weiner said, citing their experience in navigating the process to get through due diligence and "get to a close as quickly as possible." ............................... DCT Lands Deals in Tennessee, New Jersey DENVER – In a double signing, DCT Industrial Trust Inc. has signed a 472,000-sf tenant at its Deltapoint Business Park in Memphis and committed to a 150,000-sf acquisition in Sayreville, N.J. DCT is keeping the new tenant's ID under wraps, but did disclose that it's an international producer of soy-based technologies and ingredients. The lease bumps the Getwell Road building to full and the Denver-based developer's Memphis portfolio to 93 percent occupancy. Mark Jenkins and Phil Dagastino Jr. of Commercial Alliance Management represented DCT Industrial. Tracy Speake of Paradigm Realty Advisors was the tenant representative. In New Jersey, DCT is in line to buy a class A bulk distribution building at 400 Kennedy Dr. in the Sayreville Business Park in the Route 287/New Jersey Turnpike Exit 10 submarket. The building is fully leased to three tenants, all holding long-term leases. The deal is scheduled to close in the second quarter, bumping DCT's New Jersey portfolio to nine buildings with 1.1 million sf. ............................... Starwood Capital JV Eyes $905 Million Take-Over GREENWICH, Conn. – Starwood Capital Group, TPG Capital and Five Mile Capital Partners are planning to invest up to $905 million to acquire and recapitalize Extended Stay Hotels Inc. The proposal has been filed with the U.S. Bankruptcy Court, Southern District of New York and is awaiting approval. According to a press release, the recapitalization would enable Extend Stay to emerge from bankruptcy at a reduced debt load and cash reserves for operating and property investment. The hotel chain would be valued at $3.9 billion post-transaction. With the consortium's proposal in hand, Extended Stay reported it has terminated a previous agreement with Centerbridge Partners and Paulson & Co."We believe we have made a very compelling offer with the specific intent of balancing and considering the interests of all stakeholders involved here," said Barry Sternlicht, chairman and CEO of the Connecticut-based Starwood Capital Group. If the plan is approved, he will be Extended Stay's chairman. The consortium is planning to invest $450 million of equity directly into the hotel chain and agreed to backstop a $200 million equity rights offering, according to the release. It also has committed to providing $225 million as a cash alternative for creditors who don't want the equity position as part of the reorganization plan. At the end of the day, Extended Stay's total debt is expected to be $2.8 billion instead of $7.4 billion. Starwood is slated to contribute about half of the equity, with affiliates of TPG and Five Mile Capital splitting the difference on a 50-50 ratio. ............................... Starwood Hotels Maps Out Aloft's 2010 Expansion WHITE PLAINS, N.Y. – Starwood Hotels & Resorts Worldwide Inc. is planning to cut ribbons on 10 Aloft hotels this year, of which half will be on foreign soil. Since its June 2008 debut, the hotelier has opened 40 Aloft-flagged hotels. "The brand, which has an existing presence in four countries, is at a pivotal point in its growth cycle and is poised to continue to break new ground in 2010 as it debuts in India and Europe, while further establishing its presence in the U.S. and China," said Simon Turner, president of global development for the White Plains, N.Y.-based Starwood. Three of this year's openings will be in India, where the corporate travel market is projected at more than $3 billion. The targeted markets are Chennai, Bangalore and Coimbatore. The first European Aloft hotel will open in Brussels. Meanwhile, the U.S. plan calls for openings in Brooklyn and Harlem. ............................... $5.5 Million Takes MOB PHOENIX – Snowflake Holdings LLC and Phoenix North Star LP have sold the 81,332-sf North Valley Medical Plaza in northeast Phoenix, banking $5.5 million from the sale to 3811 Bell Medical Properties LLC. Developed in 1993, North Valley Medical Plaza is situated at 3811 E. Bell Rd. on the campus of Paradise Valley Hospital. Steve Gonzalez, first vice president of investments for Marcus & Millichap Real Estate Investment Services, represent the sellers. ............................... MGM Mirage Reels In $845 Million LAS VEGAS – MGM Mirage has closed an $845 million private offering of senior notes secured by a mortgage on the MGM Grad Las Vegas and all existing and future property of MGM Grand Hotel LLC. The collateral includes a pledge of limited liability interests in MGM Grand Hotel LLC. The notes were issued with a four-year, no-call clause. In a press release, MGM Mirage reported it will receive about $826 million of net proceeds. The funds have been applied to the prepayment of about $820 million of loans under its senior credit facility plus related fees and expenses. The prepayment resulted in a 20 percent reduction in MGM Mirage's credit exposure and a re-tranching of its senior credit facility. "The closing of this much anticipated transaction is a milestone for our company and its shareholders. It is a re-affirmation of our bank partners' commitments and their long term view of our prospects," said Jim Murren, chairman and CEO of MGM Mirage. "These transactions punctuate our many achievements over the last several months and provide our company with a solid financial foundation." The Las Vegas-based company owns and operates 15 properties in Nevada, Mississippi and Michigan and 50 percent investments in four assets in Nevada, New Jersey, Illinois and Macau. ............................... New Team In Charge of 1.3 Million SF SEATTLE – AMB Property Corp. is turning over 1.3 million sf of class A industrial properties in Greater Seattle to Grubb & Ellis Co. to lease and manage. The properties are the 326,959-sf AMB Upland Distribution Center at 1133 Andover Park West in Tukwila; 407,491-sf AMB Portside Distribution Center at 4090 E. Marginal Way in South Seattle; 325,655-sf Northwest Distribution Center at 20844 72nd Ave. South in Kent; and 284,340-sf NW Corporate Park Renton in the city of Renton. The assets' occupancies range from 58 percent to 100 percent. Matt McGregor, senior vice president for Grubb & Ellis' industrial group, who has had a long-standing relationship with San Francisco-based AMB Property, is the lead broker for the assignment. The team includes managing director Bill Condon and vice president Andrew Hitchcock. AMB is the largest industrial landlord in Seattle. "The company has a fantastic retention rate from providing its tenants with excellent service that is second to none," McGregor said. "We couldn't be more pleased to be awarded this leasing assignment." ............................... Turner Leading $160 Million Stadium Project KANSAS CITY, Kan. – OnGoal LLC, owner of the Kansas City Wizards, has put Turner Construction Co. on the field to oversee pre-construction and construction services for its $160 million stadium project in Village West. Construction is under way on the 18,000-seat and 34-suite stadium. Completion is penciled for summer 2011. The 365,000-sf stadium is ticketed as a multi-use venue for Major League Soccer and other field sports. It also will be used for concerts. ............................... CBRE Launches Solar Group LOS ANGELES – CB Richard Ellis Group Inc. has expanded its solar energy services in the U.S. and Canada, launching CBRE Solar in a platform targeting investors, developers and tenants. The myriad advisory and consulting services include solar power purchasing agreements, roof leases, solar project investment opportunities and project management. The plan calls for aggregating solar projects to achieve economies of scale for equipment, installation and financing costs for CBRE clients. "CBRE Solar puts us in an ideal position to assist our corporate services and asset services clients in understanding and navigating the complexities of the solar market to efficiently maximize their real estate and achieve their sustainability and energy-cost reduction goals," said Mike Lafitte, president of the Americas for CBRE. CBRE Solar will align with Mount Kisco, N.Y.-based Smart Energy Capital LLC, a finance, development and advisory firm, as part of the plan. CBRE's new partner has raised more than $200 billion for innovative energy initiatives. Smart Energy Capital's management team consists of Konstantin Braun, Mike Grenier, Rob Krugel and Brian Weisman. ............................... Grubb & Ellis' Bach Starts Blog SANTA ANA, Calif. – Grubb & Ellis Co.'s renowned economist Robert Bach has launched a blog, Building Knowledge, to widen the audience for industry-leading research of the commercial real estate markets. "This blog enables Grubb & Ellis to increase the value of the market research expertise we provide to clients and the business community at large," said Jack Van Berkel, COO and president of the California-based brokerage firm's real estate services, adding the blog "gives Bob the platform to do more of what our clients rely on him for most – looking at economic news and trends of the day through the lens of the commercial real estate industry’s most respected market analyst." The 35-year veteran's first post focused on debt, the federal deficit and the long-term effect they will have on the economy. For this and future blog posts, visit http://bobbach.wordpress.com. ............................... 1031 Exchange Buyer Stakes Claim OAK BROOK, Ill. – Using 1031 exchange funds to close the deal, A private investor from Arlington, Va., has paid $6.65 million or $120 per sf for bragging rights to Midwest Plaza South, a 55,993-sf, multi-tenant office building. Howard Wiese, vice president and senior director of Marcus & Millichap Real Estate Investment Services' national office and industrial group, and Rasto Gallo, an investment specialist, represented the local seller. The 31-year-old building, with access to Interstate 88, has maintained an average occupancy of 95 percent for the past decade, according to the dealmakers. "This is really a remarkable story," said Gregory LaBerge, regional manager of the brokerage firm's Chicago office. "In this very challenging office sales market, Midwest Plaza South is the sixth multimillion-dollar office building that Howard has closed in the past 12 months." He added that five of the six deals involved all-cash buyers. ............................... Online Trading Renews, Expands IRVINE, Calif. – In a renewal and expansion, the Online Trading Academy has inked a five-year agreement for 17,111 sf of office space. The new deal adds 11,000 sf to the company's operating space. Joe Bevan and Ronda Clark of Jones Lang LaSalle's Irvine office represented Online Trading Academy. Brian Dineen of Dineen Properties represented the landlord of 18004 Skypark Circle, JKE Properties. "The current commercial real estate market allowed Online Trading Academy the opportunity to add additional space at favorable lease terms to accommodate its rapid growth," said Bevan, a JLL vice president. He added that a market search proved that "the existing building was the best fit for their business needs and goals." ............................... Saab North America HQ Stays in Michigan ROYAL OAK, Mich. – In a stunning win for the beleaguered Detroit area, Saab Cars North America will invest $2.4 million to retain or create more than 2,000 jobs at its new headquarters location for sales and marketing in Oakland County. Saab Automobile AB recently was purchased by Spyker Cars NV, a leading Dutch automobile company. "Saab Cars North America appreciates the assistance and cooperation of the City of Royal Oak and the Governor's office in helping make the company's decision a reality during tough economic times," said Mike Colleran, president and COO of Saab Cars North America. "As a direct result in acquiring local and state assistance, we look forward to renewing our U.S. presence as an independent, premium luxury automotive brand with Swedish heritage while maintaining our loyal following and potentially attracting new customers." Saab will get five years of tax credits, totaling $1.4 million, from the Michigan Economic Development Council and city of Royal Oak. GM initially bought half of Saab in 1990 and grabbed the balance in 2000. Saab was put in the sales block in January 2009 as part of GM's reconstruction. "This is tremendous news for Oakland County. This affirms that we remain the global center of the auto industry," said L. Brooks Patterson, Oakland County executive. ............................... Report: CRE Investors Show Renewed Sense of Recovery NEW YORK – PricewaterhouseCoopers' Korpacz Real Estate Investor Survey has found that investors are more optimistic today than two years ago about the recovery of the commercial real estate markets. But, that doesn't mean that challenges and concerns are gone from the marketplace. In the first quarter survey, the research team said investors revealed "a sense of hopefulness and improved sentiment" due to signs of improvement in the U.S. economy. The team concluded that cap rates overall have started to stabilize and slightly decline in some markets and for some quality assets. The six-month forecast calls for rates to hold steady in 19 of the 30 survey markets in comparison to last quarter's report when only two markets were predicted to hold fast. "The worst seems to be over, according to survey participants, as investors suggest that the bottom is near, if not here, particularly for better-positioned markets and assets," said Susan Smith, real estate advisory practice leader for PwC and editor-in-chief of the quarterly survey. Still, report findings concluded that 2010 will be a slow year for sales activity although it will be better than last year. "The industry keeps looking to lending institutions and special servicers of commercial mortgage-backed securities to provide forced sales, but some investors surveyed cite that more distressed selling will likely come from borrowers, who are more comfortable with where the market is now and will accept a loss in order to move on," Smith said. The survey also found that investors are braced for vacancy rates to continue to climb and rental rates continuing to decline in most markets. However, there has been slight improvement in property tours and tenant interest nationwide. More than 91 percent of the respondents reported using free rent as a signing incentive. Last year, it was 84 percent of the survey group. The highest levels of free rent were reported in Phoenix with as long as two years being offered; Atlanta and Chicago, up to 18 months; and Dallas, up to 15 months. San Diego, Los Angeles and Denver were at the bottom of the ranking with up to seven months being offered as bargaining chips. The multifamily sector is projected to lead the recovery, with respondents saying value losses have been almost fully recognized and prices for some assets actually increasing. The industrial sector remains weak while office and retail continue to struggle, according to the findings. ............................... Lincoln Property, Angelo Gordon Finalize Deal for Griffin Towers SANTA ANA, Calif. – Maguire Properties Inc. has completed the sale of Griffin Towers to joint venture partners, Dallas-based Lincoln Property Co. and Angelo Gordon & Co. of New York. A $22 million loan against the Orange County twins was set to mature May 1. In a press release, the seller said it was relieved of the non-recourse project debt and the repurchase facility was converted to an unsecured term loan, remaining as an obligation of the operating partnership. "This transaction eliminated a near-term debt maturity and eliminated any future leasing costs and potential future cash short falls at the project," said Nelson C. Rising, president and CEO of the Los Angeles-based Maquire. The pair of 14-story towers at 5 and 6 Hutton Centre Dr. has about 547,000 sf of class A office space. ............................... Logistics Firm Leases 320,000 SF SAVANNAH, Ga. – Coastal Logistics Group Inc. is keeping its headquarters in CenterPoint Intermodal Center-Savannah, signing a long-term lease for a 320,000-sf build-to-suit project. It is the first build-to-suit in the 233-acre intermodal facility, located four miles from the Georgia Port Authority. Construction has begun on a building with 32-foot clear heights, 69 trailer parking spaces, 41 dock doors and two drive-in doors. Coastal Logistics is getting direct access to the Norfolk Southern rail and Norfolk Southern Dillard Intermodal Yard. "We are confident that the transportation advantages achieved by locating within the park will grow significantly over time which will underscore the forward-thinking mentality they displayed in this decision," said Brian McKiernan, vice president of Oak Brook, Ill.-based CenterPoint Properties. Bob Robers of Jones Lang LaSalle and Jeremy Merklinger of Hostetter Schneider Realty Partners represented Coastal Logistics in the talks. John Neely of Colliers Neely Dales was CenterPoint Properties' point man. ............................... Bridgepoint Expands in San Diego SAN DIEGO – Bridgepoint Education Inc. has leased its fifth location in San Diego, taking 28,000 sf of office space in the downtown. The office at 600 B St. will be used for administrative purposes to support Bridgepoint's Ashford University and University of the Rockies online courses and the company's education foundation. More than 100 employees will be housed in the space. One of the lease perks is a top of the building sign for the company, which now leases nearly 600,000 sf in the region and employs 2,600 full-time, non-faculty workers. "The purpose of our new downtown location is to tell our San Diego story and to partner with community organizations that serve the San Diego region," said Bridgepoint Education CEO Andrew Clark. "We take social responsibility very seriously and we look forward to contributing even more to the San Diego community in the future. It is my hope that our downtown San Diego location will help facilitate even more ideas and initiatives to improve the lives of others." ............................... $1.4 Million Buys Mini-Storage Asset TAMPA, Fla. – A limited liability company from Lake Forrest, Ill., has acquired a 52,896-sf self-storage property for slightly more than $1.4 million. The asset was 68 percent leased at sale time. Michael A. Mele, vice president in Marcus & Millichap Real Estate Investment Services' Tampa office, arranged the deal for the local private investor. The Discount Mini Storage at 8328 W. Hillsborough Ave. was developed in 1998 on a 1.67-acre tract. ............................... 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 fourt |