Tag Archives: equity

Equity Commonwealth Closes on $328M Sale of Centre Square East & & West Towers

Equity Commonwealth (NYSE: EQC), a Chicago-based, self-managed public REIT, has actually closed on its previously announced sale of the Centre Square East and West Towers at 1500 Market St. in Philadelphia, PA.

. Nightingale Properties LLC, a New York-based landlord, has picked up the workplace residential or commercial properties for a gross list prices of $328 million, or about $186 per square foot. CBRE Capital Markets reports that at 1.76 million square feet, it is the biggest single-asset workplace deal by square video footage in the city’s history.

The seller had gotten the home in October 2002 for $183.5 million ($104/ SF) from Metropolitan Life Insurance CC, Inc., inning accordance with CoStar information.

See CoStar COMPS # 698800.

The 43-story West Tower totals 957,804 square feet on 1.5 acres in the Market Street West submarket while the nearby East Tower amounts to 801,389 square feet over 36 floorings. Found adjacent to Dilworth Park and City Hall, the twin towers were 91 percent rented at the time of sale to numerous tenants including the University of Pennsylvania Health System, Towers Watson, PHMC, Saul Ewing, Dilworth Paxson and home loan insurance provider Radian.

Centre Square was developed by designer Vincent G. Kling & & Partners in 1974 and was remodelled in 1991. A renowned part of Philadelphia’s skyline and its CBD, the complex includes covered parking with 450 stalls, a 45-foot Clothespin art sculpture in its expansive front plaza, a 41,000-square-foot retail component with a number of shops and restaurants, 12-foot slab heights in the workplace, 35 guest elevators, on-site conferencing facilities and banking, a glass-domed atrium, access to public transit, on-site management, and LEED registration, Energy Star label and BOMA 360 classification.

Nightingale Characteristic prepares to do a substantial renovation at Centre Square. Founded in 2005, the firm manages a portfolio totaling 11 million square feet of industrial area spanning 22 states, consisting of a number of properties in Philadelphia like 1635 Market St., 1500 Spring Garden St. and 1835 Market St.

The purchaser has actually maintained CBRE’s office leasing group led by Christian Dyer and Nick Gersbach to continue renting efforts at the property, as they have provided for the previous 15 years.

“Centre Square is a major part of Philadelphia’s material and brought in financier interest and capital dedications from around the globe,” said Robert Fahey, executive vice president with CBRE Capital Markets in Philadelphia. “It is the best-located set of office towers in the Philadelphia CBD. We are honored to have actually been chosen to represent Equity Commonwealth in the sale of this landmark property.”

Robert Fahey, Jerry Kranzel, Erin Hannan and Jack Corcoran of CBRE Capital Markets’ institutional properties group represented the seller in marketing and sales negotiations. The buyer managed the deal in-house.

Please see CoStar COMPS # 3962312 for extra info on this deal.

Private Equity Investors Slow Real Estate Purchasing in First Quarter

CRE Purchases Down 60% Year over Year; Fundraising Slows as Financial investment Funds Already Packed with ‘Dry Powder’

The personal equity realty market, which saw exceptionally strong fundraising and dealmaking activity in 2016, seemed to stop briefly and take some profits in early 2017.

CRE-focused equity funds finished 136 major home investments in the very first quarter of 2017 totaling $6.1 billion, according to CoStar Group COMPs data. That total is well off the nearly $15 billion in purchases the exact same set of financiers made in the very first quarter of 2016.

Equity funds were net sellers of CRE home in the first quarter of this year, completing 171 personalities amounting to $7.9 billion – about in line with the very same quarter a year ago.

PE buyers revealed a preference for office property investments finishing 26 buys totaling $2.167 billion. Multifamily was the 2nd biggest property type category with 47 deals totaling $1.607 billion. Retail was third with 29 deals totaling $1.547 billion, and industrial was 4th with 28 offers totaling $811 million.

While PE financiers were hectic stockpiling on workplace offers, they were offering multifamily and commercial homes. PE sellers unloaded $3.6 billion of multifamily homes in 49 transactions, and $2.3 billion of industrial properties in 22 deals. PE funds also sold $1.4 billion in retail residential or commercial property in 32 offers, and $1.5 billion in workplace residential or commercial properties in 35 deals.First Quarter Fundraising Likewise Slowed PE realty funds internationally raised about$ 16 billion in the very first quarter, inning accordance with Preqin, an alternative possessions industry information supplier. This represents a decrease from fundraising overalls seen in the very first quarter of in 2015 ($ 26 billion ), and is well short of the$ 32 billion raised by realty funds in the fourth quarter of last year. The number of CRE investment funds reaching a final close likewise declined dramatically throughout the very first quarter, falling from 72 in the last quarter of 2016 to simply 38 in the first quarter this year. More of that cash and a great deal of the formerly raised loan has yet to be used. Dry powder available to personal property fund managers rose a little in the quarter, from$ 237 billion at the end of 2016 to a new record of$ 245 billion at the end of Q1, Preqin reported. While it appears financial investment and fundraising momentum might be

slowing, Andrew Moylan, head of real estate items at Preqin, said we are simply in the early innings of the game. “Of specific note are the multibillion-dollar funds currently in market. A number of have already held interim closes, and may well be on course to reach a last close prior to the end of the year, “Moylan stated.” If this does take place, we might see 2017 rise to match 2016 as another landmark year for the industry.” More than half( 58%) of the funds presently in fundraising mode stated they plan to mainly purchase The United States and Canada and are looking for to raise $107 billion from institutional financiers. This is more than the combined capital targeted( $82 billion) by funds concentrated on realty investment in other global regions.

Greybrook Announces Equity Positioning For Mixed-Use Task In Toronto'' s Lower Junction

Museum of Contemporary Canadian Art to Relocate to Remodelled Tower Automotive Building As Part of Advancement Deal

Affiliates of Greybrook Capital have closed a $22.4 million private equity placement which will certainly be used to purchase an eight-acre site in Toronto’s Junction Triangle community and establish a mixed-use property and industrial project.

Advancement plans call for 665 property condo units and townhomes and approximately 550,000 square feet of retail and workplace on the website, which is currently occupied by the 10-story, to-be-renovated Tower Automotive Building.

Greybrook Securities Inc. and Greybrook Real estate Partners Inc. closed the placement for the task to be established with Castlepoint Group. The Museum of Contemporary Canadian Art (MOCCA) recently announced it will certainly be moving its gallery and head office to the Tower Automotive Structure at 158 Sterling Roadway– built in 1919 and when the tallest building in Toronto. The building will certainly be totally remodelled in a job beginning later on this year and targeted for conclusion in late 2016 or early 2017.

Obtaining a property with over 1 million buildable feet of mixed use space “will certainly provide Castlepoint and Greybrook a blank canvas to change a previously underutilized area within the core of Toronto into a community where people will certainly live, work and play,” said Greybrook Securities CEO Sasha Cucuz.

“This advancement has comparable attributes to Greybrook’s initial financial investment in the previously underdeveloped Toronto area of Liberty Village in mid-2007,” Cucuz stated in a release.

Greybrook and its development partners have actually completed over 1,600 property units in Liberty Town and have another 700 systems actively in advancement.

Downtown Toronto is the most popular industrial real estate market in Canada, with development activity more powerful than at any point in the last 15-20 years, with nearly 4 million square feet of construction under method.

Because in 2013, affiliates of Greybrook Real estate Partners and the Castlepoint Group of Companies have collectively acquired over 2.5 million square feet of mixed-use residential/commercial development land in Toronto’s downtown core, and an extra 200 acres of single-family housing in the surrounding greater Toronto area. Greybrook has actually co-invested nearly $90 countless equity into the developments, Cucuz stated.

Equity Commonwealth Verifies Written agreement to Sell Illinois Center Bldgs. for $376 Million

Equity Commonwealth (NYSE:EQC), the Chicago-based REIT headed by Sam Zell, confirmed reports that it is under contract to sell its 2 Illinois Center structures in Chicago’s East Loop at 111 East Wacker Dr. and 233 North Michigan Ave. for a gross list price of $376 million, or roughly $185 per square foot.

The buyer of the two inter-connected, 32-story towers is reported to be New York-based AmTrust Real estate Corp. The two-building equipment totals 2.1 million square feet of office and retail area that was 73.5 % leased at the end of the very first quarter. The equipment had actually been listed with Eastdil Secured.

Significant tenants consist of Bankers Life and Casualty Co., Combined Insurance Co. of America, Taft Stettinius & & Hollister, LLP, Clear Channel Communications, Young & & Rubicam and the U.S. Department of Health & & Human Services.

The sale is part of an approach by the REIT’s brand-new management under Zell and CEO David Helfand to sell off much of the REIT’s property profile generated under its previous management.

For AmTrust, the pending acquisition will certainly contribute to its growing Chicago presence. The private realty financial investment supervisor bought Kemper Insurance coverage’s 41-story headquarters at 1 E. Wacker Drive in July 2013, and in June 2014 bought the 43-story tower at 30 N. LaSalle St., before receiving the smaller 24-story 33 N. Dearborn St. previously this year. The REIT has two other Chicago office buildings, 33 W. Monroe St. and 135 S. LaSalle St.

CLEANING HOME: Asset Sales Spotlight New Chapter For Sam Zell-Led Equity Commonwealth

Major Personalities Consist of 1.25-Million-SF New Orleans Tower to Hertz Investment Group in Six-Pack of Office Properties

Sam Zell, left, and David Helfand seek to turn around Equity Commonwealth Real Estate Trust after a shareholder revolt led to the ouster of the former board and management.
Sam Zell, left, and David Helfand look for to reverse Equity Commonwealth Realty Trust after a shareholder revolt led to the ouster of the former board and management.

Activist investors in the company previously referred to as Commonwealth REIT had business and profile house-cleaning in mind last year when they did the unheard of in REIT circles and brought in a brand-new board of trustees and a management group led by distinguished real estate investor Sam Zell and his long time deputy David Helfand.

Shareholders were hoping for a few of the legendary market timing that made Zell a billionaire investor and CRE market legend, and the duo immediately set to deal with a business reorganization and possession disposition strategy. They altered the company’s name to Equity Commonwealth Real Estate Trust (NYSE: EQC) and moved its headquarters from Newton, MA, to Chicago.

In February, Zell and Helfand, who functions as the repositioned company’s CEO, unveiled a strategy to sell a $2 billion to $3 billion chunk of EQC’s vast portfolio of mainly suburban workplace assets and a few scattered commercial equipments.

The liquidation plan is proceeding ahead of schedule, inning accordance with Wall Street experts, as Equity Commonwealth ramps up building sales. In current days the Chicago-based company has sold two profiles totaling 51 buildings and 8.3 million square feet in 18 states for a combined prices of $793 million, making up the bulk of the REIT’s $817 million in sales of 56 possessions so far this year. The top reward appears to be the $417.5 million sale of 6 office buildings in 4 southeast U.S. markets to Santa Monica, CA-based Hertz Investment Group. Profits from the sale to Hertz, subtracting home loan financial obligation repayments and lease credits, totaled $320 million.

Equity Commonwealth sold a 45-property portfolio of smaller office and commercial possessions totaling 5.3 million square feet across 19 markets in 13 states to a fund managed by Dallas-based personal equity financier John Grayken for $376 million. The portfolio was 77.5 % rented since the end of the very first quarter. (Please see CoStar COMPs # 3310525 for more details on the transaction).

The 6 workplace structures offered to Hertz Investment total more than 3 million square feet and include One Shell Square, the tallest structure in Louisiana, a 51-story, 1.26-million-square-foot workplace tower at 701 Poydras St. in New Orleans’ CBD (Please see CoStar COMPs # 3314730 to learn more on the deal).

Equity Commonwealth said it currently has three extra office buildings under written agreement for about $35 million totaling 270,000 square feet, and 32 buildings comprising 10 million square feet in various phases of marketing for sale.

“Generally, we see this development on possession sales as beneficial,” JMP Securities analyst Mitch Germain said this week in an investor note, including that pricing is clearly going beyond expectations considered that the culled buildings were occupancy challenged and most likely saddled with deferred upkeep as the business decreases its exposures to several suburban and tertiary markets.

Germain stated EQC’s share evaluations have yet to factor in the brand-new disposition and debt reduction strategy, which he said will make it possible for the company to stockpile cash for future office purchases.

“Further, we believe the share price has supplied no acknowledgment of change in management to an internalized team led by Sam Zell,” Germain added.

The acquisition from Equity Commonwealth marks Hertz’s entry into three brand-new markets: Birmingham, AL, Columbia, SC and Greensboro, NC.

One Shell Square is 93.5 % leased, with significant renters Shell Oil, Adams and Reese, LLP, and Liskow & & Lewis. As part of the offer, Hertz likewise obtained:

Wells Fargo Tower, 30 stories, 514,893 square feet, Birmingham CBD.

Inverness Central, a four-building complex with 475,895 square feet, suburban Birmingham

Meridian, 17 stories, 334,075 square feet, Columbia

300 N. Greene Street, 21 stories, 324,075 square feet, Greensboro

20th Place South, 4 stories, 125,722 square feet, suburban Birmingham.

The 45 smaller sized office and industrial properties are spread across markets in Colorado, Connecticut, Florida, Illinois, Kansas, Massachusetts, Maryland, Minnesota, New Jersey, Missouri, Ohio, Pennsylvania and Virginia.

Equity Commonwealth Sells 2 Portfolios For $793M.

Hertz Financial investment Group Receives Six Southeast Workplace Characteristic, Including 1.25-Million-SF New Orleans Tower

Continuing its partial liquidation method ahead of schedule, the new business produced from the former Commonwealth REIT has actually offered two portfolios totaling 51 buildings and 8.3 million square feet in 18 states for a combined sales price of $793 million, consisting of the $417.5 million sale of six workplace structures in four Southeast markets to Santa Monica, CA-based Hertz Investment Group.

The 2 geographically varied profiles make up the bulk of the % 817 million in sales this year by Chicago-based Equity Commonwealth (NYSE: EQC). A team led by Sam Zell took over Commonwealth REIT after management was ousted in a board revolt in 2013.

Equity Commonwealth offered a 45-property portfolio of small office and industrial possessions totaling 5.3 million square feet across 19 markets in 13 states to a fund managed by Dallas-based private equity financier John Grayken for $376 million. The portfolio was 77.5 % rented since completion of the very first quarter.

The portfolio was 77.5 % leased since completion of the first quarter (Please see CoStar COMPs # 3310525 for more details on the deal).

The 6 office buildings totaling more than 3 million square feet sold to Hertz Financial investment includes the highest building in Louisiana, the 51-story, 1.26-million-square-foot One Shell Square at 701 Poydras St. in the New Orleans CBD (Please see CoStar COMPs # 3314730 for more details on the transaction).

The business offered a 45-property portfolio of little workplace and commercial assets totaling 5.3 million square feet across 19 markets in 13 states, for a gross list prices of $376 million. As of March 31, 2015, the little office and industrial portfolio was 77.5 % leased. Earnings from the six-property portfolio sale, subtracting home mortgage financial obligation payments and lease credits, totaled $320 million.

Year-to-date, Equity Commonwealth has actually offered $817 million of assets, incorporating 56 buildings and 9 million square feet. The company currently has 3 workplace apartments under written agreement for about $35 million totaling 270,000 square feet. Equity has 32 properties making up 10 million square feet in different phases of marketing.

The purchase by independently held Hertz offers the business’s entry into three brand-new markets: Birmingham, AL, Columbia, SC and Greensboro, NC.

One Shell Square is 93.5 % rented, with major tenants including Shell Oil, Adams and Reese, LLP, and Liskow & & Lewis. The possessions acquired by Hertz also consist of the following:

Wells Fargo Tower, 30 stories, 514,893 square feet, Birmingham CBD

Inverness Central, a four-building complex with 475,895 square feet, suburban Birmingham

Meridian, 17 stories, 334,075 square feet, Columbia

300 N. Greene Street, 21 stories, 324,075 square feet, Greensboro

20th Location South, four stories, 125,722 square feet, suburban Birmingham.

The 45 smaller workplace and industrial apartments are spread out throughout markets in Colorado, Connecticut, Florida, Illinois, Kansas, Massachusetts, Maryland, Minnesota, New Jersey, Missouri, Ohio, Pennsylvania and Virginia.