Tag Archives: purchases

CXP Puts Dry Powder to Deal with +$ 1 Billion in Workplace Purchases

Well-off JV Partner Assists Columbia Reorient Towards Top U.S. Markets

After a peaceful very first half of 2017, Columbia Property Trust, Inc. (NYSE: CXP) has fired off more than$1 billion in acquisitions considering that the July 4 holiday including a flurry of offers for buildings in New york city City and Washington, D.C. amounting to $935 million, the company announced Wednesday.

In early July, Atlanta-based Columbia acquired an almost 50% interest in a workplace tower at 114 Fifth Ave. in Manhattan as part of a joint endeavor with German insurance company Allianz SE. Early Wednesday, the partnership closed a $421 million offer to purchase the 10-story, 580,930-square-foot 1800 M St. NW structure from PGIM in the biggest workplace sale finished in Washington, D.C. since early 2015.

By Wednesday afternoon, Columbia had also revealed the purchase of 3 structures in New York City’s Chelsea submarket, two adjacent office buildings totaling 281,294 square feet at 245-249 West 17th St. and the 165,670-square-foot residential or commercial property at 218 West 18th St., from New york city REIT (NYSE: NYRT) for a combined $514 million.

The purchase of the Midtown South homes, which is not connected with the Allianz JV, increases Columbia’s profile in New York City to 7 properties amounting to 2.6 million square feet, representing 44% of CXP’s overall portfolio.

Columbia President and CEO Nelson Mills said this week the buy from New York REIT “further establish Columbia as a considerable gamer in Manhattan’s most dynamic workplace district.”

Just a few weeks back at the EisnerAmper’s Global Real Estate Leaders Summit, nevertheless, Mills characterized New York City workplace financial investment activity as sluggish, with tight yields and workplace REITs being “hammered” compared to West Coast trusts.

Mills is not alone in his evaluation of the New york city transaction market. At another recent conference, NYRT executives kept in mind that the purchaser pool is not as deep in recent months, particularly for larger possessions, with a broadening spread in between asking and bidding costs.

Other experts, however, have actually kept in mind in recent days that recent transactions recommend an uptick in activity after a summer season downturn.

There’s no scarcity of capital seeking deals. Today, independently held L&L Holding Co. and an institutional financier encouraged by J.P. Morgan Property Management revealed the formation of a $500 million collaboration supplying approximately $4 billion in purchasing power to for acquisition and development in NYC. L&L is developing 425 Park Ave., the first full-block workplace tower to increase on the renowned boulevard in half a century.

While Allianz isn’t really involved in the Manhattan offer, Columbia CEO Mills in late July proclaimed the $1.27 billion joint venture as a chance to increase CXP’s market existence in core markets without the need to issue equity or raise debt.

“The value of this joint venture works out beyond these instant benefits,” Mills stated at the business’s second-earnings conference call. “We now have a partner that is active in our markets, has a long-term financial investment focus and has a shared vision for exactly what our technique can provide.”

Today’s purchases, rumored in regional media reports for numerous weeks, validate Columbia’s substantial capital war chest through the Allianz endeavor and by itself account, inning accordance with Mitch Germain, REIT expert with JMP Securities. The deals allow the company to expand in New York City and D.C. by scooping up just recently remodelled properties with strong money streams backed by long-term leases, Germain said.

Columbia’s new entirely owned assets in the Huge Apple have a well-regarded lineup of occupants that include Red Bull, Twitter and Microsoft. The JV’s acquisition of the well-leased 1800 M St. office building in the District’s Golden Triangle, with the sponsorship of Allianz, offers a value-add opportunity, not to point out the ability to hedge the risk of Washington’s presently shaky market principles, Germain included.

Furthermore, the transformation of CXP’s portfolio following more than $2 billion in dispositions in Houston and Cleveland given that the start of 2015 is now complete, with more than 90% of the business’s income now streaming from New York, D.C. and San Francisco, where the venture with Allianz owns 333 Market St. and University Circle in Palo Alto.

UPGRADED: KBS Looking To Cash Out Some Post-Recession Purchases

KBS Cuts Offer to Offer 5 of 10 Residences in one REIT; Fold 11 Workplaces into a New REIT

Crystal Park at Waterford in Frederick, MD, is one of four properties being sold to Elite Capital.
Crystal Park at Waterford in Frederick, MD, is among four properties being sold to Elite Capital. KBS Legacy Partners Apartment REIT has chosen it’s time to squander and offer the staying multifamily residential or commercial properties it acquired through early 2014. The California-based non-traded REIT has already cut different agreements to sell 4 of them and is seeking approval of the sale from investors.

Funds connected with Houston-based Elite Street Capital consented to pay $218.9 million for the homes consisting of 1,273 units, representing a cost of $171,956/ unit. The sale of the portfolio is likewise contingent on shareholder approval of the KBS REIT’s plan of liquidation.

[Editor’s Note: This story was upgraded Friday Sept. 15 at 9:30 am with additonal info on an apartment or condo sale, and extra information on brand-new workplace REIT]

The properties to be sold as part of the Elite trade are Tradition at Valley Cattle ranch, 504 units in Irving for $68.5 million purchase rate; The Residence at Waterstone, a 255-unit complex in Pikesville, MD, for $60.1 million; Crystal Park at Waterford, a 314-unit complex in Frederick, MD selling for $45.9 million; and Lofts at the Highlands, a 200-unit complex in St. Louis costing $44.4 million.

KBS Legacy Partners House REIT kept in mind that there are no limitations on it to negotiate with other prospective purchasers and effort to sell the properties for a higher rate.

Then today, the REIT offered its 228-unit Watertower Apartments in Eden Prairie, MN, to an as of yet unknown purchaser for $41.8 million or about $183,333/ system.

The REIT likewise owns other house homes in the Charlotte, Chicago, and Greenville, SC, markets.Restructuring an Office

REIT. The REIT’s sponsor, KBS Capital Advisors, is refrained from doing looking to reshape its post-recession age purchases. The firm remains in talks with the asset-management arm of Singapore-based Keppel Corp. to form a joint endeavor for listing as a REIT later this year on the Singapore stock exchange. Keppel validated the continuous efforts.

The preliminary portfolio will include 11 workplace possessions to be injected into the REIT by a fund handled by KBS Capital, consisting of office complex in Seattle, Houston, and Denver.

Keppel has gotten a listing with the Monetary Authority of Singapore, which has it under evaluation.

The details of the regards to the IPO are still being finalized and the proposed facility and listing of the REIT will undergo, among other things, market conditions, the appropriate regulatory and other approvals being gotten and the execution of conclusive arrangements by the relevant celebrations, Keppel Corp. noted.


Morgan Residence Purchases $509 Million Mark Center Portfolio from JBG in Largest Transaction in Virginia This Year

Pennsylvania Company Obtains 2,664 Apts. to End up being One of the Largest Multifamily Owners in Washington, D.C. MSA

King of Prussia, PA-based property investment and management company Morgan Properties swung for the fences in its very first financial investment in Northern Virginia, acquiring the Mark Center portfolio from The JBG Cos. in a $509 million offer that signs up as the biggest real estate transaction in Virginia so far in 2017.

The sale likewise positions Morgan Characteristic as one of the biggest owners of multifamily home in the greater Washington, D.C. metropolitan area.

The 150-acre Mark Center includes a multifamily and retail portfolio southwest of downtown Washington, D.C. along N. Beauregard St. in Northern Virginia’s I-395 Corridor. It encompasses 2,664 apartment units in 6 adjacent garden-style neighborhoods. Morgan Characteristic plans to invest $35 million in upgrades to the units.

The sale also includes The Shops at Mark Center, a 63,320-square-foot grocery-anchored retail center real estate CVS, Starbucks, SunTrust Bank and Global Foods, in addition to redevelopment rights protected by JBG in 2012 that increased the maximum allowed density from 2.5 million square feet to 6.4 million square feet.

Morgan Residences stated the purchase ranks as the second largest in its 30-year history. The investment company owns and handles more than 40,000 houses across Pennsylvania, Delaware, New Jersey, New york city, Ohio, Maryland, North Carolina, South Carolina, Virginia and Nebraska.

Over the past 5 years, the business has actually been especially aggressive in expanding in the Baltimore-Washington corridor, having grown its area portfolio from 4,300 to 21,500 houses through a handful of investments, consisting of the $309 million purchase of a portfolio from Berkshire in 2015 and the $247 million acquisition of a 2,000-unit rural Baltimore portfolio earlier this year.

“We felt this offer was an unique financial investment opportunity to get substantial size and scale to generate functional performances and improve the worth of the properties,” said Jonathan Morgan, president of Morgan Residence JV Management. We are on track to acquire over $1 billion of realty in 2017 and anticipate continuing to grow our portfolio.”

William Roohan, Michael Muldowney, Martha Hastings, Michael Rudolph, Robert Dean, Jonathan Greenberg and Brian Margerum of CBRE worked out the disposition on behalf of The JBG Cos., which obtained the Mark Center portfolio from the Mark Winkler Co. in 2006.

For more details on Morgan Properties’ acquisition of the Mark Center portfolio, please see CoStar Compensation # 3992026.

Cushman & & Wakefield Purchases Out NorthMarq JVs in 4 US Markets

Global CRE Business Rolling Up 10 NorthMarq Workplaces; Likewise Acquires Toronto-Based Advisory Company

Cushman & Wakefield is buying out its joint-venture partner to take complete ownership of its top quality operations in Minneapolis, Seattle, Salt Lake City and Las Vegas from NorthMarq Cos., a private holding business owned by the Minneapolis-based Pohlad household.

In a different transaction revealed Tuesday, Chicago-based Cushman said that it has acquired Toronto-based 20 VIC Management Inc., one of Canada’s leading industrial realty advisory and management firms.

In the United States, Cushman will obtain 10 workplaces with 750 employees which in aggregate, manage nearly 50 million square feet of residential or commercial property. The acquisition will bring Cushman & & Wakefield NorthMarq (CWN) in Minnesota, one of the Twin Cities’ largest business brokerage and property management companies, completely under the corporate umbrella. Cushman will likewise purchase out NorthMarq’s interest in Cushman & & Wakefield Commerce (CWC) operations and workplaces in the Las Vegas, Salt Lake City and Seattle markets.

Cushman & & Wakefield did not divulge regards to the U.S. acquisitions but stated the sale, based on customary closing conditions, is anticipated to close within the next 3 weeks. Leadership groups in the four markets will stay in place, the company said in a declaration.

In the statement, Eduardo Padilla, CEO of NorthMarq Cos. (formerly Marquette Property Group), stated NorthMarq believes there’s “a logical and engaging reason to sell our operations to Cushman & & Wakefield at this time.”

“The industry is combining, with advanced customers needing a smooth platform, regardless of location or service,” Padilla said. NorthMarq Companies and NorthMarq Capital are not consisted of in the transaction.

Cushman & & Wakefield, among the biggest worldwide CRE services companies with revenues of $6 billion, is widely speculated in the industry to be exploring an initial public offering that could be introduced as early as the existing quarter. The company, marking its 100-year anniversary as a brand name, has 45,000 staff members in more than 70 countries with company operations that include leasing, asset services, capital markets, facility services, international occupier services, investment and possession management, task and advancement services, and appraisal and advisory services.

Jeff Eaton, president of Cushman & & Wakefield NorthMarq, that includes Cushman & & Wakefield NorthMarq (CWN) and Cushman & & Wakefield Commerce (CWC) operations, will expand his leadership role to include Cushman’s North Central Area, which includes oversight of Chicago, Minneapolis, and Detroit operations. Eaton will report to Cushman & & Wakefield East Region President Shawn Mobley.

Eaton has actually led NorthMarq through a number of organizational changes since ending up being president of NorthMarq Real Estate Solutions in 2008, including the 2009 acquisition of the property management division of Opus Corp.; the 2011 launch of NorthMarq’s joint venture with Cushman & & Wakefield, and the acquisition of CWC in 2013.

Cushman also did not release regards to its closed acquisition of 20 VIC Management, a boutique firm that recommends an exclusive group of pension funds, personal equity firms and high-net-worth financiers. The move considerably broadens Cushman’s Canadian existence, including its entry into the Canadian home management organisation, with 20 VIC handling more than 21 million square feet on behalf of a few of the country’s leading institutional and personal financiers.

George Buckles and Randy Scharf, who co-founded the business in 1995, will join Cushman as executive handling directors of possession services.

Mobley tells CoStar that the NorthMarq acquisitions will help Cushman support service lines and geographical coverage recognized as part of a “space analysis” following the business’s $2 billion acquisition by the group led by private-equity firm TPG from Italy’s Exor MEDSPA and merger with DTZ in September 2015.

“We did our research and found some white area and locations in which to grow, which ultimately led us to deals where we presently have alliance or JV relationships, but think we must maintain owned offices,” Mobley said.

Both the NorthMarq and 20 VIC transactions include a significant property management element, Mobley included.

The 20 VIC acquisitions is the very first venture into Canadian residential or commercial property management for Cushman. Like other large CRE service providers, Cushman intends to grow its global home and facilities management service to enhance more volatile sales and renting profits with a constant and long lasting source of recurring earnings.

“Home management holds up well throughout the realty cycle. It’s a strong performer during great times and bad,” Mobley kept in mind.

Group RMC Purchases Corporate Woods in Largest Deal in KC Metro This Year

Company’s Acquisition of 2.2 Million-SF Office Park in Overland Park Boosts Location Holdings to More Than 3 Million

Group RMC Corp., a New york city-and Montreal-based co-investment group that supervises more than nine million square feet of business space valued at roughly $1 billion, made its 2nd ever investment in the Kansas City market count with the purchase of Business Woods, a 2.2 million-square-foot, 29-building workplace park located in Overland Park, KS.

Kansas City’s premier office park, Corporate Woods is found on 300 acres in the southeast quadrant of the I-435/ U.S. Path 69 interchange in south Kansas City’s College Blvd. submarket.

Group RMC got the park from Stoltz Property Partners, a property fund supervisor based from rural Philadelphia that purchased the portfolio more than decade ago from New york city State Educators’ Retirement. The acquisition consists of 21 structures and The Shops at Corporate Woods retail center – the other 7 structures, consisting of a DoubleTree Hotel, are separately owned.

The acquisition is the largest in the Kansas City urbane this year and the biggest because Taubman Centers and The Macerich Co. collaborated in early 2016 to get the Country Club Plaza in Kansas City for $660 million.

Group RMC made its entry into the Kansas City market last year with the firm’s acquisition of a seven-property office portfolio, likewise in Overland Park, from Colony Realty Partners for $94 million. The two acquisitions give the firm ownership of more than three million square feet in the Kansas City suburb.

Block Property Services acted as a consultant in the transaction and has actually been kept to supply unique leasing and property management obligations on behalf of the brand-new owner.

For additional information on the deal, please see CoStar Compensation # 3976035.

Brookfield Purchases $854.5 Million of Properties from TA Real estate

JLL Finishes Sale of National Workplace, Industrial Portfolios; Secures $475.5 Million Financing

Brookfield-sponsored private equity funds completed their purchase of a 46-property portfolio from TA Realty for $854.5 million.

The portfolio consists of a mix of commercial and office homes amounting to 8.6 million square feet topped 12 states, with the huge majority of the homes found in Los Angeles, Dallas, Chicago and Washington, DC metros, according to TA Real estate. The list of homes offered to Brookfield was not released.

A JLL Capital Markets group arranged the sales of a 37-property, 7.6 million-square-foot national logistics portfolio and a nine-property, 1.1 million-square-foot varied office portfolio on behalf of TA. JLL also secured $475.5 million in acquisition financing as part of the transactions.

TA Realty partners Nicole Dutra Grinnell, Michael Haggerty, Jim Raisides and dispositions officer Luke Marchand worked out the deals on the part of the seller.


Waypoint Residential Purchases $102 Million Portfolio for New Trainee Housing Unit

Waypoint Residential, a realty financial investment supervisor that partners with personal financiers to acquire home residential or commercial properties, has actually established a different affiliate to broaden its student real estate company after going into the sector last year.

The affiliate, Waypoint Campus Real estate LLC, got off to a good start, buying four homes of a five-property student housing portfolio consisting of 2,638 beds from Blue Vista Capital Management for $102 million.

The freshly acquired residential or commercial properties include High View Location, serving the University of Texas at San Antonio; Maverick Location, serving the University of Texas at Arlington; Rebel Place, serving the University of Nevada at Las Vegas; and Spring Location, serving the University of North Carolina at Greensboro.

Waypoint is planning to close on the fifth and largest student-housing home in the portfolio next month.

Scott Lawlor, CEO of Waypoint Residential, announced that student real estate is now part of the business’s core business, broadening its focus in the rental housing sector.

“The addition of trainee housing aligns with our overall technique to diversify our item offerings within the rental real estate market, and we believe it provides excellent risk-adjusted opportunities,” said Lawlor.

Waypoint entered the trainee housing sector in 2016 when it got its very first three residential or commercial properties consisting of 1,122 beds for $58.3 million. With the conclusion of all 5 portfolio assets in this acquisition, Waypoint will have obtained 3,760 trainee housing beds for around $160 million.

Jeremy Pemberton, who formerly concentrated on acquisitions and sourcing capital for Waypoint Residential, has actually been named to lead the new Waypoint School Housing affiliate.

“The student housing sector continues to demonstrate strong principles, significantly enrollment growth and continued strong tenancy,” Pemberton noted, while adding he believes trainee housing has become a more noticeable property class with strong financier demand.

For more information on the transaction, see CoStar Sale Comp ID # 3882652.

Hong Kong Financier Purchases Rosemont Realty to Acquire Prime Workplace Profile

New Venture to Invest $3 Billion in U.S. Entrance Office Market Over 3 Years

Hong Kong-based Gemini Investments (Holdings) Ltd. got Santa Fe, NM-based Rosemont Real estate and formed a joint endeavor with Rosemont’s personnel to obtain and manage office buildings in major U.S. markets.

The joint venture produces a major national CRE entity, Gemini-Rosemont Realty LLC, which will introduce a three-year, $3 billion acquisition program with a strategy built on Rosemont’s acquisition performance history targeting Class A buildings in gateway and specific secondary U.S. markets.

As part of the offer, a substantial part of Rosemont’s existing profile, comprised of 135 buildings totaling about 15.9 million square feet in 22 states, will be moved to Gemini Rosemont. The existing Rosemont group will continue to be in place to run the joint venture.

The other significant partners in the Gemini Rosemont venture are Dan Burrell, chairman and CEO of The Burrell Group, and previous Rosemont CEO; existing Rosemont senior management; and Neutron Property Fund Ltd., a realty investment fund.

“We see terrific chances to continue getting top quality real estate in the united state market while likewise gathering value for our investors, both existing and new,” stated Michael Mahony, ceo of Gemini Rosemont, in a release. “The possibilities for this endeavor are incredible.”

CBRE Capital Advisors recommended Gemini Investments, the investment arm of Sino-Ocean Land, in its acquisition of Rosemont Realty.

“Sino-Ocean Land and Gemini Investments together represent among Asia Pacific’s leading business property platforms, possessing substantial capital and strategic long-lasting vision,” said Nick Crockett, executive director, CBRE Capital Advisors, Asia Pacific.

The new endeavor is part of a wave of Chinese financial investment in U.S. business properties. Gemini Investments is an investment arm of Sino-Ocean Land, one of the biggest property companies in China, with an equity market cap of over $4.3 billion.

Sino-Ocean has obtained and established millions of square feet of office home in China and plans to use Gemini Investments as an automobile for direct financial investment in the united state and other parts of the world. Gemini reportedly invested more than $100 million into its stake in Rosemont.

“Rosemont, with its thorough realty platform and superior efficiency history, was specifically the financial investment chance Gemini Investments was looking for in order to buy the U.S. realty market,” stated Li Ming, chairman of Sino-Ocean Land Holdings Limited and Gemini Investments.

Bartender discovers $20, purchases winning $1 million lotto ticket

Monday, Aug. 31, 2015|11:24 a.m.

SAN FRANCISCO– A San Francisco Bay Area male won $1 million in the California Lotto after purchasing a winning ticket with cash he discovered at the airport.

The California Lotto stated Sunday that Hubert Tang had not bought a lottery ticket in 10 years.

When he discovered a $20 bill on the street outside San Francisco International Airport last week, he utilized it to purchase two scratch-off tickets at a market in Millbrae.

One of them resulted in the $1 million top reward.

He told the California Lotto that he remained in shock when he won.

“I scratched the ticket beyond the store. I told my pal who I was with that I didn’t know if it was real but, ‘I believe I simply won a million dollars,'” Tang stated in a statement. He had not been right away available for remark Monday.

Tang, who works as a bartender, prepares to save the money for now. Lottery officials said the shop will certainly receive a $5,000 bonus offer for selling the winning ticket last Wednesday.

He also has a 2nd possibility to win up to $25,000 for the other ticket he purchased that was not a winner.

Tang says he may begin leaving $20 costs on the street in random locations to spread his good luck.

Home purchases by financiers in Las Vegas now on par with national rate

Investors are buying houses as commonly in Las Vegas as they are nationally, a new report programs, a stark change from current years when regional deals far exceeded the national average.

Institutional financiers– those who buy a minimum of 10 houses each year– purchased 1.9 percent of houses sold in the Las Vegas area in the very first half of the year. That’s down from 8.6 percent of sales in the exact same period in 2014 and 14 percent in the very first half of 2013, according to RealtyTrac.

Nationally, investors bought 1.9 percent of houses sold in the first half of 2015. That’s below 4.1 percent in the very same period in 2014 and 5.7 percent in the first half of 2013, the business found.

Bargain-hunting financiers swarmed Las Vegas after the bubble burst to buy cheap houses, typically wholesale, to turn into rentals. They revived the marketplace and drove up rates at some of the fastest rates nationally, raising fears of another housing bubble.

But confronted with increasing costs they helped create, financiers have been progressively pulling back.

Some 28 percent of homes sold in June in Southern Nevada were bought with cash. That’s down from 35 percent a year earlier and far listed below the peak of virtually 60 percent in February 2013, according to the Greater Las Vegas Association of Realtors, which mostly tracks formerly had houses.

The drop-off suggests that “money buyers and financiers are still a factor in the local real estate market however that their influence is waning with each passing month,” the GLVAR just recently stated.