NEW YORK CITY — PGIM Realty Estate has acquired a 40 percent interest in Eleven Madison Avenue, a 2.3 million-square-foot office property in Midtown South, from SL Green Realty Corp. for $480 million. The new ownership joint venture is seeking a modification to the mortgage on the property. If the modification is not obtained within six months after the closing, SL Green may repurchase the sold interest from PGIM Real Estate. The partnership expects the modification to be granted during the fourth quarter of 2016. PGIM Real Estate has a one-year option to acquire an additional 9 percent stake in the venture at the same gross property valuation of $2.6 million. Darcy Stacom and William Shanahan of CBRE advised SL Green on the deal.
NEW YORK CITY — An affiliate of RXR Realty has acquired the long-term leasehold of 810 Fulton Street in Brooklyn from an affiliate of GFI Development Co. for $28.7 million. Located in Brooklyn’s Fort Greene neighborhood, the property includes approved plans for a 363-unit, 328,000-zoning-square-foot residential building. Totaling 393,000 gross square feet, the property will also feature below-grade parking and 33,235 square feet of retail space facing Vanderbilt Avenue, Fulton Street and Clermont Avenue. Initial site work for the project began in 2015. Broadway Construction Group, an affiliate of GFI Capital Resources Group, and RXR have entered into a construction management agreement for the construction of the property. Construction is expected to begin in earnest this fall, with leasing slated to start in 2018.
MT. LAUREL, N.J. — Four Springs Capital Trust has acquired a single-tenant office building located in Mt. Laurel. An undisclosed seller sold the property for $19.4 million. The 87,460-square-foot office building is home to the Southern New Jersey operations of Blue Cross Blue Shield of New Jersey, which serves approximately 3.8 million members. Four Springs Capital Trust’s portfolio now contains 44 properties, which are leased to 22 tenants, in located 20 states.
NEW YORK CITY — GFI Realty Services has arranged the sale of a four-story, walk-up apartment building, located at 2105 Foster Ave. in Brooklyn’s Flatbush section. An undisclosed buyer purchased the property for $6.5 million, or $311,900 per unit. The pre-war building totals 26,640 square feet and features 21 apartment units. Erik Yankelovich of GFI Realty represented the undisclosed seller and buyer in the deal.
HOBOKEN, N.J. — Marsh & McLennan has renewed its long-term lease at Waterfront Corporate Center II in Hoboken. The global professional services firm will occupy 138,000 square feet of office space at the building for the next 15 years. David Falk, Andrew Sachs, Timothy Greiner and Hope Brodsky of Newmark Grubb Knight Frank represented the tenant, while Jeff Schotz and Peter Bronsnick provided in-house representation for the landlord, SJP Properties.
AUBURN, WASH. — Domino’s Pizza has opened its 13,000th store in the world, located in Auburn, outside of Seattle. The new store features the pizza theater design, which includes a comfortable lobby, open-area viewing of the food preparation process and the ability to track carryout orders electronically on a lobby screen. The store also features energy-efficient electric bikes and a Domino’s DXP, the company’s new specialized delivery car.
MEMPHIS, TENN., AND ATLANTA — Mid-America Apartment Communities (NYSE: MAA) has agreed to acquire Post Properties (NYSE: PPS) in an all-stock deal that values Post, a developer and operator of upscale multifamily communities, at nearly $4 billion. The merger will create a Sunbelt-focused, publicly traded multifamily REIT. The acquisition brings together two multifamily portfolios totaling approximately 105,000 multifamily units in 317 properties. The combined company plans to focus on urban and suburban locations in large and secondary markets within the Sunbelt region, which stretches from coast to coast along the southern United States. The combined company’s 10 largest markets by unit count will be Atlanta; Dallas, Fort Worth, Austin and Houston, Texas; Charlotte and Raleigh, N.C.; Orlando and Tampa, Fla.; and Washington, DC. Each share of Post common stock will be converted into 0.71 shares of newly issued MAA common stock, per the agreement. Former MAA equity holders will maintain about 67.7 percent of the combined company’s equity, while former Post equity holders will hold the remaining 32.3 percent on a pro-forma basis. The all-stock merger is intended to be a tax-deferred transaction. The combined company is expected to have a pro-forma equity market capitalization of about $12 billion, as …
Miami is coming into its own as an increasingly international city that continues to attract new residents, visitors and investment and development activity. The city’s urban core is flourishing, with residents gravitating toward a downtown area that allows them to live, work and play in the same neighborhood. The Miami retail market is experiencing a development surge to accommodate the city’s growth. Through the end of the first quarter of 2016, about 2.3 million square feet of retail space was under construction, according to CoStar. The developments are bringing a new class of retailers to the market. Major projects include Brickell City Centre, a 500,000-square-foot shopping center with a roster of tenants that includes Armani Collezioni, anchor tenant Saks Fifth Avenue and Valentino. North of downtown Miami, the $1.7 billion Miami Worldcenter project will introduce a high-street retail concept that is similar to the popular Lincoln Road open-air mall in Miami Beach. In Miami’s Design District, the $1 billion redevelopment of the neighborhood is attracting luxury retailers like Hermès, Louis Vuitton and Cartier. Downtown residents will have easy access to all of these retail destinations. Retail operating fundamentals remain strong in the Miami market. Vacancies closed the first quarter of …
SAN ANTONIO — CBRE has arranged the sale of Northwest Atrium, a three-story, 93,540-square-foot office building in San Antonio. Austin-based Kennedy Wilson purchased the asset from San Antonio-based NWA Limited Partnership for an undisclosed price. Carrie Caesar, Todd Mills and Hunter Mills of CBRE’s San Antonio office represented the seller. The property, located at 11550 W. Interstate Highway 10 in the northwest San Antonio submarket, is adjacent to University Park, a 3.2-million-square-foot master-planned business park. The asset was 89 percent occupied at closing to tenants including Civil Engineering Consultants, Benefit Management and NovaTel.
PASADENA, TEXAS — Colliers International represented John Harris Ventures LP in the sale of Fairmont Central Shopping Center, located at 4118 Fairmont Parkway in Pasadena. Marshall Clinkscales of Colliers represented John Harris Ventures. Bill Pyle with Edge Realty Capital Markets and Ray Orazani of Main Realty represented the buyer, Fairmont Central LLC. Bill Barnett with Charter Title Co. handled the closing.