Archive for ‘Capital Markets’

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May 16, 2013

Multi-Family Wire

LOS ANGELES – Trion Properties,  a Los Angeles-based real estate investment company acquired two multifamily properties in the California cities of El Cajon and Sacramento.In El Cajon, Trion acquired a 22-unit apartment building for $2,350,000, or $106,818 per unit. In Sacramento, the company acquired a 128-unit apartment building from a lender for $4,900,000, or $38,281 per unit.

SAN DIEGO – OliverMcMillan, a San Diego-based real estate development firm,  and Capri Capital Partners, are building The Lofts at 688 13th Street, with a two-year construction schedule. The Lofts at 688 13th Street is planned as a five-story residential building fronting 13th Street between Market and G Streets in the East Village Arts District of downtown San Diego. Covering three-quarters of a city block, the new construction includes 208 mid-rise and ground-level apartments with studio, one-bedroom and two-bedroom residences and about 5,000 sf ground-level retail.

FORT LAUDERDALE, Fla. – The Morgan Group, a Houston-based multifamily developer has broken ground on a 331-unit midrise apartment development in Flagler Village in south Florida. Morgan acquired the site, which is located just north of the Las Olas River in downtown Fort Lauderdale, in December 2012. First move-ins are projected for Summer 2014. The site, which fronts Federal Highway, marks the return of The Morgan Group to south Florida and the company’s first development within Broward County. Said Chairman and CEO Mike Morgan. “We were very active in the area until the late 1990s and are looking forward to growing our presence here once again. Richard A. Buck is leading our regional development efforts and we’ve recently opened an office in Fort Lauderdale.”

PLAYA DEL REY, Calif. – Hendricks-Berkadia announced the sale of Tiffany Apartments, located at 8040 W. 83rd Street in Playa Del Rey. The 18-unit apartment community was sold for $4,325,000, $125,000 over asking price. The sellers had received 25 offers on the building, eight of which were at or over asking price. The transaction was negotiated by Steffan Braunlich and Mike McKinney of the South Bay Los Angeles office of Hendricks-Berkadia.

 

 

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April 26, 2013

Korean Capital Flees to Houston with $480 Million Purchase of Hines Tower

By Ralph Bivins

HOUSTON – The 46-story BG Group Place in downtown Houston is being acquired by Invesco Real Estate, with backing reportedly from Korean institutional investors, for $480 million, according to Real Estate Alert, an investment newsletter.

Invesco is believed to be acting on behalf of the National Pension Service of Korea, the newsletter reported. Korean money is been reallocated and invested in U.S. realty in a fast pace recently because of political unrest and nuclear threats.

The sellers of BG Group Place, Hines and Calpers, were represented by Eastdil Secured. The 973,000-sf tower is expected to close for $485 per square foot, the second-highest sales price ever in Houston, Real Estate Alert reported. The record sales price in Houston was set when H&R REIT paid $524 sf of $442 million for the 845,000-sf Hess Tower in 2011. The highest dollar price was set when the 1.8-million-sf One and Two Shell Plaza traded for $550 million last summer, Real Estate Alert said.

The tower is 92 percent leased with BG Group occupying 354,000 sf.  KPMG and the BakerHostetler law firm are major tenants also. The building, completed in 2011, is located at 801 Main Street.

The BG Group Place building is LEED Platinum. Urban Land magazine recently reported that investors pay more for sustainable buildings, rather than “brown” properties. http://urbanland.uli.org/Articles/2013/Apr/BivensHouston

In developing BG Group Place, Hines blessed Main Street as a viable location for new office development in the current era.  Years ago Main Street had been ceded to transit domination, making Main Street little more than an elongated bus stop surrounded by low-end retail and grease-coated restaurants. But Main Street has enjoyed a revival in recent years.

Hines has proposed to build another Main Street tower on Block 69, just a couple of blocks from BG Group Place, at the southeast corner of Main and Texas Avenue.

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January 7, 2013

Shorenstein Buys Exxon Mobil Tower for $50 Million

By Ralph Bivins

HOUSTON – Shorenstein Properties has acquired the 45-story Exxon Mobil building in downtown Houston for a redevelopment that will restore the property to Class A status.

The Exxon Mobil building, located at 800 Bell at Travis, was built in 1962 as the headquarters of Humble Oil & Refining, a predecessor to Exxon Mobil.

The sales price was not disclosed. As part of the deal, Exxon Mobil, the seller, agreed to lease back the entire building until 2015, when it will relocate its employees to its new 385-acre corporate campus on the far northern suburbs of Houston, not far from The Woodlands.

Shorenstein’s renovations may include linking the building into the downtown tunnel system which connects many of the skyscrapers and hotels in downtown Houston.

The 1.2 million square-foot Exxon Mobil tower and its seven-story garage cover two downtown blocks.

The price paid for the building was not disclosed, but people in the real estate community said it was around $50 million. By comparison, the 1.8-million square-foot Shell Plaza in downtown recently sold for around $550 million.

“We purchased this property markedly below current replacement cost, which gives us the opportunity, once the current user vacates, to employ all our company’s core skills in capital transaction execution, redevelopment, leasing and operations to increase the property’s value by establishing its long term position and further enhancing its reputation in the market,” Douglas Shorenstein, chairman and CEO of Shorenstein Properties said in a written statement.

San Francisco-based Shorenstein owns dozens of office buildings across the nation including two others in Houston near the intersection of San Felipe and Loop 610: the 28-story Five Post Oak Park building, which is across the street from the St. Regis Hotel, as well as the 21-story 2000 West Loop South tower on the freeway’s west side frontage road.

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January 7, 2013

Wells REIT Buys San Fran Tower

SAN FRANCISCO – Wells Real Estate Investment Trust II has acquired 333 Market Street, a 33-story office tower in the heart of San Francisco’s Financial District. The Class A asset was purchased from the Korean Federation of Community Credit Cooperatives.  The 657,000-sf building, constructed in 1979, has undergone over $80 million in capital investments and tenant improvements over the past eight years. The building is fully leased to Wells Fargo Bank.

“We are pleased to add this trophy-quality asset to the Wells REIT II portfolio,” said Nelson Mills, president of Atlanta-based Wells REIT II. “This strategic acquisition in one of the nation’s premier office markets helps to further improve the institutional-quality of the portfolio overall.”

Wells REIT II was represented internally by Keith Willby, senior vice president, capital markets. The Wells REIT II portfolio includes 82 office buildings in 20 states and Washington, D.C., and one international property, totaling 21 million sf.

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