Tag Archives: sells

Disney to Spend $650 Million on Development Rights for Downtown New York City Site As It Sells Upper West Side Holdings

In preparation for the relocation, Walt Disney has actually sold holdings on the Upper West Side along West End and Columbus opportunities to Silverstein Properties for about $1.155 billion, the property manager validated to CoStar news. The parcels consist of ABC’s headquarters at 77 West 66th St. (above).

Walt Disney Co. is selling holdings on the Upper West Side and plans to build its next New York head office to host early morning talk programs and other programs over a complete downtown city block at 4 Hudson Square in a deal that might spark increased demand for commercial realty in the area.

Disney is paying Trinity Church Wall Street $650 million for the rights to establish the block bordered by Hudson, Varick, Van Dam and Spring Streets for 99 years. The job will house an advancement with 1 million square feet of area in an LEED-certified building with a maximum height of 290 feet, according to a source close to the offer, who warned the company was in the early phases of advancement.

Disney President Rob Iger stated its consolidation will consist of Disney Streaming Providers leaving Chelsea Market and the addition of ABC News, and morning talk reveals Cope with Kelly and Ryan and The View. The move would attract employees, audiences and increase the profile of the neighborhood, which normally increases need.

In preparation for the move, Walt Disney has sold holdings on the Upper West Side along West End Opportunity and Columbus Avenue to Silverstein Residence for about $1.155 billion, the property owner verified to CoStar news. The parcels consist of ABC’s head office at 77 West 66th Street.

The West End Avenue homes cover 148,000 square feet of website location and 517,000 in rentable square feet. They incorporate 125 West End Avenue, 320 West 66th Street and the 64th Street Parking Lot.

The Columbus Avenue properties total 115,000 square feet of site area and 1.148 million rentable square feet. They include 149 Columbus, 147 Columbus, 77 West 66th Street, 30 West 67th Street, 47 West 66th Street and 7 West 66th Street.

Deutsche Bank holds the mortgage for the Upper West side deal, on which Silverstein took $900 million in debt.

Disney stated it will rent back those facilities for as long as five years while the brand-new head office at 4 Hudson Square is under building and construction.

Industrial property services firm Eastdil Secured recommended Disney on both deals.

Trinity Church Wall Street partnered with Norges Bank in 2015 on a joint endeavor partnership covering 11 structures and 4.9 million square feet downtown. Proceeds from the sale will benefit the parish, according to an agent for Trinity. The church said it initially got the residential or commercial property in a land grant in 1705.

Clark County sells bonds to help construct Raiders stadium

Image

Courtesy An artist’s rendering of the stadium being built in Las Vegas where the Raiders and UNLV will play football.

Wednesday, April 11, 2018|3:02 p.m.

Clark County on Wednesday sold bonds to finance the public’s $750 million contribution towards building of a 65,000-seat arena where the Raiders and UNLV will play football.

An overall of $645 million in bonds were sold in 90 minutes to 43 different institutional and retail investors, Clark County Manager Yolanda King said. The funds will not be available till May 1, when the sale is settled.

The rest of the $750 million was gathered through the Clark County hotel room tax before Wednesday’s bond sale.

The 30-year bonds have a maturity date of 2048. They are being paid off with revenue from the space tax.

Members of the county Finance Department, including Chief Financial Officer Jessica Colvin, were in New york city for the sale with agents of RBC Bank and JP Morgan.

The $1.8 billion arena is being moneyed by $750 million in space tax profits, $850 million from the Raiders and a $200 million loan from the NFL.

If the Raiders were to leave Las Vegas before their 30-year lease is up, the group would be responsible for any outstanding debt related to the stadium, Colvin stated.

The Clark County Commission authorized the bond sale earlier this month on a 6-1 vote, with Commissioner Chris Giunchigliani casting the only vote in opposition.

Re/Max World HQ Structure Sells for $115 Million

Equity Commonwealth Finishes Sale of 12-Story Trophy Tower in Denver Tech Center

In the most significant workplace sale so far in 2018, the property that houses Re/Max LLC’s global headquarters has traded for $115 million, according to Denver County public records.

Equity Commonwealth, a property investment trust that is part of Sam Zell’s Chicago-based Equity Group Investments, sold the home to KORE Investments, a Centennial, CO-based real estate business.

A representative of KORE Investments did not respond to a request for remark.

Re/Max Plaza, at 5075 S. Syracuse St., is a 233,998-square-foot, Class AA office complex that is nearly 80 percent inhabited by Re/Max, the property real estate brokerage franchisor, on a long-term lease.

Re/Max owned the building until 2010, when it offered the property to Zell’s business for $75 million, according to CoStar research study.

Equity Commonwealth sold the residential or commercial property for $491 per square foot, a prices that fits in much better with main enterprise zone rates than southern city Denver.

Equity Group Investments’ multifamily arm, Equity Residential, sold all its city Denver apartment complexes to Starwood Capital Group in 2016, however the company’s other divisions still own homes around the metro location, including 17th Street Plaza and the Boulder County Service Center.

KORE owns two other residential or commercial properties, according to CoStar research study, each obtained for around $11 million in 2017. In your area, the business owns Republic Park, a 91,000-square-foot office property in Greenwood Village. The other home lies in Skokie, IL, north of Chicago.

To purchase Re/Max Plaza, KORE secured a $65.5 million loan from Ladder Capital Securities LLC, inning accordance with public records.

2 various South Korean funds bought shares in an unique function business established to purchase the property, offering equity for the offer.

This marks the 2nd major office purchase in the Denver Tech Center involving South Korean capital in recent memory. In 2016, a pension fund and an investment company based in South Korea paid $113 million for CoBank’s headquarters structure at 6340 S. Fiddler’s Green Circle in Greenwood Village.

Mike Winn, Tim Richey, Chad Flynn, Jenny Knowlton and Charlie Will of CBRE Capital Markets brokered the sale for Equity Commonwealth.

For more information on the deal, please see CoStar Compensation # 4175662.

Brookfield Sells 50% Stake in Bay Adelaide

U.K. Purchaser Emerges with $850 Million Deal for Half Share in 2.2 Million-SF Complex

A purchaser from the United Kingdom has actually paid $850 million to obtain a 50 percent stake in the Bay Adelaide Centre in what is the biggest business realty offer year to date in 2018, CoStar News can validate.

Home transfer documents indicate VPMA Bay Adelaide Home Ltd. got a HALF interest in the 2.2 million-square-foot complex, the documents on the deal being sent out to Guernsey-based Dadco Investments Ltd.

. The company’s president, Victor Dahdaleh, has actually been connected to the so-called Panama Documents, a leaked stash of legal files supposedly exposing the number of rich people and personal families hold money offshore to avoid taxes, in most cases legally.

” It’s ultimately a U.K. buyer,” stated one source.

Dahdaleh lists himself as owner and chairman of Dadco and affiliated companies. “Dadco is an independently owned financial investment, manufacturing and trading group. Its founding company was developed in 1915 with operations and investments in Europe, The United States And Canada, the Middle East, Africa and Australia,” the company site says.

Sources show the offer for the existing structures at Bay Adelaide was done at about a 4.3 percent cap rate that does not consist of advancement rights at the complex, amidst indications that Brookfield might be poised to set up a north tower in exactly what is still a tight downtown office market.

Transfer documents show VPMA purchased a HALF interest in 333 Bay St. from BPO Ontario Characteristic Ltd for $421,700,000, with another $26,181,500 paid to BAC West Below Grade Sub GP Inc. in the care of Brookfield Properties, for the underground retail that becomes part of Toronto’s COURSE system.

At 22 Adelaide St. W, VPMA is purchasing a 50 percent stake from Brookfield entity Bay Adelaide East Ltd. for $378,957,500, then paying $23,161,000 for the COURSE retail underground.

Brookfield and Dadco officials could not be grabbed remark.

The 50 percent passive stake offered by Brookfield Residence closed on March 6 after reports initially put the home up for sale last October. RBC Capital Markets Real Estate Inc., Brookfield Financial Property Group LP and TD Securities Inc. recommended on the offer, but authorities from all three companies decreased to comment.

In a marketing pamphlet for the property, the trio had stated, “Bay Adelaide Centre represents among the most engaging financial investment offerings ever to come to market in Canada. The offering consists of 2.2 million square feet of Class AAA office, including Bay Adelaide West workplace tower, Bay Adelaide East workplace tower, a PATH linked retail concourse and a 1,000-stall parking center, but leaves out the Bay Adelaide North workplace development.”

The offer for the passive stake values the existing complex at $1.7 billion. With the offer done, the focus will now move to whether Brookfield will proceed with advancement of the north tower.

” They don’t require the capital (from this offer) to fund the tower,” said one source, in recommendation to Brookfield’s strong balance sheet. “Brookfield is doing the needed work underground to get as much as the surface so they will be ready to go. They are speeding up the process (for the north tower) so they are all set to go when they have a tenant.”

Stuart Barron, nationwide director of research study for Cushman & & Wakefield in Canada, said that the Class A vacancy rate at 2.2 percent in the downtown core is the tightest in 40 years, and the market might absorb another tower quickly, however it depends upon the number of projects proceed. Oxford Characteristic Corp. has said it is < a href= "http://gateway.costar.com/home/news/188304?keywords=Hub&market=178" target=" _ blank" > ready to move forward on its 1.4 million-square-foot tower called the HUB near Union station, even without a tenant.

” There will be a point in time where there will be less certainty about the market’s capability to soak up in the duration between 2021 to 2023, however it depends upon the number of statements we hear,” stated Barron, who has actually operated in realty for 25 years. “These are the greatest incentives (to construct) I have actually ever seen.”

Please see CoStar Comp # 4168877 for additional info on the sale.

Garry Marr, Toronto Market Reporter CoStar Group.

ASB Real Estate Sells Capella Tower to Shorenstein for $255 Million

DC-Based Investment Company Trimming Workplace Holdings as Part of Portfolio Rebalancing Effort

San Francisco-based Shorenstein has bought the Capella Tower, one of the most distinctive buildings in downtown Minneapolis, from ASB Realty Investments.

Washington D.C.-based ASB on Friday announced the deal to sell the 58-story Class A structure at 225 S. Sixth St., which it has actually owned since 2006. The sale included an adjoining 20-story structure occupied by the Star Tribune newspaper.

The 2 structures cover 1.4 million square feet, which exercises to about $182 per square foot. Capella Tower was valued at $244.6 million for taxes payable in 2018, according to Hennepin County records.

The tower’s illuminated crown has actually beautified the city’s horizon because building on the structure involved the early 1990s. Its namesake, Capella University, occupies about 348,000 square feet and has actually had naming rights to the structure given that 2008.

The building is 86% occupied, inning accordance with recent CoStar information.

ASB bought the structure for $245 million from then-owner Hines, based in Houston. Executives from ASB and Shorenstein were not immediately readily available for remark, but in the announcement, ASB stated the company was encouraged to offer in an effort to rebalance its portfolio. Workplace stock made up about 36.3% of its holdings since Dec. 31, inning accordance with the ASB website, which also indicated that the companies is looking to cut that proportion down to 20%.

“Capella had become a less tactical investment from a portfolio diversity standpoint, and the current market characteristics provided a great chance to sell and redeploy capital,” Larry Braithwaite, senior vice president and portfolio manager of ASB’s Allegiance Fund, stated in the release.

This seems the 3rd big workplace sale by ASB in 2018. In late January, ASB offered 900 G Street, a 112,635-square-foot office complex in Washington DC’s East End submarket for $144 million to an affiliate of Masaveu Real Estate US. ASB likewise is under contract to offer the 1.6 million-square-foot Infomart data center and office complex in Dallas to Equinix for $800 million. Nevertheless, ASB also purchased an office building at 64 New York Ave. NE in Washington DC in December for $186.3 million.

Shorenstein owns two other residential or commercial properties in Minneapolis in addition to Capella: Washington Square, a 1.1 million-square-foot workplace complex at 100 Washington Ave. S., and the Maverick Apts., a 168-unit high-end apartment in the North Loop district.

Please describe CoStar Compensation # 4144482 for additional information on this transaction.

MCR Sells 18 Marriott and Hilton Hotels for $407.4 Million

Courtyard by Marriott Wall at Monmouth Shores Corporate Park, Wall Township, NJ
Yard by Marriott Wall at Monmouth Shores Corporate Park, Wall Town, NJ MCR finished the sale of 18 Marriott and Hilton possessions to American Hotel Income Residence REIT LP (TSX: HOT.UN) (TSX: HOT.DB.U) (OTCQX: AHOTF)for$407.4 million ($186,283/ room).

The sale incorporated 2,187 spaces. The assets offered are in Maryland, New Jersey, New york city, Connecticut and Pennsylvania.

The Eastern Coast portfolio includes 10 Marriott branded hotels amounting to 1,206 guestrooms (5 House Inns, 2 SpringHill Suites, one Courtyard, one Fairfield Inn and Suites and one TownePlace Suites) and 8 Hilton branded hotels totaling 981 guestrooms (4 Homewood Suites, 2 Hampton Inns and two Hilton Garden Inns).

The average age of the hotels is 10 years and each hotel has actually either been recently built or renovated.

The typical capitalization rate of the portfolio personality was 7.9% on a routing 12 months net operating income basis, or approximately $186,000 per space.

“The sale of this portfolio is a reflection of MCR’s investment thesis: to buy superior branded select service and extended stay hotels, enhance operations, and offer opportunistically,” said Tyler Morse, CEO and handling partner of New York-based MCR.

Rob O’Neill, CEO of Vancouver, BC-based American Hotel Income Properties, said, “During the first half of 2017, we have been disciplined in our financial investment strategy to acquire premium branded, select-service hotels with supported in-place income, which are younger and well-maintained and where acquisition costs are listed below replacement cost.

AHIP has actually now acquired 23 hotels in the first 6 months of 2017 for approximately $589 million. Other markets it has actually finished purchases in are: Ohio, Texas, and Arizona.

Hampshire Cos. Sells Six-Bldg Industrial Portfolio for $147 Million

AEW Capital Management Obtains 1.2 Million SF Across Northern New Jersey

June 20, 2017

Boston-based AEW Capital Management acquired a six-property Northern New Jersey industrial portfolio from The Hampshire Cos. for $146.85 million, or about $121 per square foot.This deal totals about 1.22 million square feet in structures situated across the Route 46 Corridor, Teterboro Airport, Fairfield, and Carteret/Avenel commercial submarkets. Of the six properties, 200 Middlesex Ave. in Carteret, NJ, is the biggest at 408,437 square feet and is currently inhabited by Continental Terminals.Other prominent occupants that are included within the portfolio are R.R. Donnelley, RLB Food Distributers and Sealed Air.” With demand high and product restricted, now was the right time to perform our financial investment strategy and sell the portfolio,”Todd Anderson of The Hampshire Cos. said in a release.The vacancy rate in the market is a tight 5% and asking rental rates averages$6.64 per square foot in the existing quarter, inning accordance with CoStar data.Jody Thornton, Jon Mikula, Jose Cruz, David Giancola, and Rob Borny of HFF, Inc. represented Hampshire Cos. in the transaction. Andrew Zak supplied in-house representation for AEW Capital Management.Please see CoStar COMPS # 3929541 for more information on the transaction. “Go To National News Page

Blackstone Sells Pair of Santa Monica Office Bldgs. to Douglas Emmett, Qatar Financial investment Authority JV for Top Dollar

PE Giant Sells 1299 Ocean Ave. and 429 Santa Monica Blvd. for $352.8 Million

Blackstone Group today offered a pair of Santa Monica office buildings amounting to about 292,667 square feet to a joint venture of Los Angeles-based Douglas Emmett, Inc. and the Qatar Investment Authority, commanding a premium list price of roughly $352.8 million. At about $1,205 per square foot, the workplace offer ranks as one of the most expensive in Southern California to close this year.

Blackstone has owned the buildings because its 2007 acquisition of Equity Office Characteristic Trust, which lots of analysts consider the top of the previous cycle in industrial residential or commercial property. Eastdil Protected brokered the transaction.

The buyers moneyed a portion of the purchase price through a $142 million protected, non-recourse, interest-only loan that develops in July 2019 and bears interest at Libor plus 1.55%. Douglas Emmett devoted 20% of the equity capital and handles the joint venture with QIA.

The traded office complex are 1299 Ocean Ave., an 11-story, 205,713-square-foot office complex, and 429 Santa Monica Blvd., a seven-story office complex located one block from Santa Monica’s 3rd Street Boardwalk and 3 blocks from the city line.

In spite of the sky-high cost, Douglas Emmett highlighted exactly what it called the “considerable lease-up chance” associated with the buildings, with 1299 Ocean at 79% rented and 429 Santa Monica at 70% leased, representing tenants that have actually validated they plan to vacate.

The offer likewise increases Douglas Emmett’s financial investment concentration in the downtown Santa Monica workplace market. Last year, the Douglas Emmett/QIA joint endeavor acquired 233 Wilshire Boulevard, a 129,000-square-foot office home for $139.5 million, and 12100 Wilshire Boulevard. With its most current purchase, Douglas Emmett said it increased its ownership of the Santa Monica Class An office market from 55% to 71%.

Douglas Emmett’s overall office portfolio now consists of 69 office residential or commercial properties amounting to approximately 18 million square feet. The firm likewise owns 10 apartment communities in Los Angeles and Honolulu making up 3,320 units, with another 850 systems under development.

The Quatar Financial investment Authority partnered with Douglas Emmett as part of its strategies to substantially broaden its financial investment in United States property. Other major current financial investments consist of the Manhattan West project it obtained in New York City in 2015, and a 9.9% interest in Empire State Real estate Rely on 2016. QIA has set an objective of getting $35 billion of North American realty over the next five years.

To find out more, please refer to CoStar COMPS # 3889796.

Updated: TA Realty Continues Squandering Property Fund; Sells Multifamily Portfolio to Blackstone REIT for $430 Million

Portfolio Comprised of Six Apt. Communities Totaling 2,514 Systems


In its 2nd big property personality this spring, TA Realty LLC offered a six-property, 2,514-unit multifamily portfolio to Blackstone Real Estate Earnings Trust for $430 million.

TA Real estate offered the portfolio on behalf of The Real estate Associates Fund IX LP. Previously this month, TA Realty offered a 45-property industrial and workplace portfolio from the fund to Brookfield-managed realty funds for $854.5 million.

Realty Associates Fund IX was formed in 2007 and has hit a 10-year financial investment cycle.

“Our company believe the result of this transaction represents engaging value for Fund IX investors,” said Tom Landry, handling partner at TA Realty. “The rate we had the ability to command for this well-located portfolio of apartment communities reflects the considerable value created through strategic functional and capital enhancements over the ownership period.”

The apartment or condo communities that comprise the portfolio are located across four states in such major markets as Dallas, Chicago and Orlando. Though TA did not recognize the private homes, the offer includes a 461-unit complex in Orlando that sold for $105 million ($227,765/ unit) last week, according to CoStar (See Sales COMPENSATION # 3882359).

Blackstone REIT is likewise accquring the following properties.The Maintain at Osprey,

Gurnee, IL, 483 systems;
San Merano at Mirasol, Palm Beach Gardens, FL, 479 units;
Estates at Park Opportunity, Orlando, FL, 432 systems;
Keller Springs Apartments, Dallas, TX, 353 units; and
West End at City Center, Lenexa, KS, 309 systems.

[Editor’s Note: This story was upgraded April 20 with the full list of homes acquired.]

The TA Real estate staff member involved in the deals consist of partners Nicole Dutra Grinnell, Michael Haggerty, Jim Raisides and dispositions officer Luke Marchand. JLL represented TA Realty in the sale.