Top Stories

COVID-19 Holiday Season Brings Increase in Online Shopping, Big-Ticket Industrial Acquisitions

by Katie Sloan December 4, 2020

As with many other events and rites of passage, the COVID-19 pandemic has transformed the holiday season. With concerns over the safety of in-person gathering top of mind, many have moved their normal brick-and-mortar holiday gift shopping online. Even Black Friday — a hallmark shopping event of the holiday season geared toward big sales for those willing to venture among heavy crowds — moved online this year in order to better suit the needs and safety of shoppers in the current environment. With an increase in online shopping comes an increase in need for logistics and industrial space in order to fulfill orders in a timely fashion. Against the backdrop of a predominantly online holiday shopping season, a flurry of big-ticket industrial acquisitions have filled news headlines during the first week of December. Today, news broke that Rexford Industrial Realty has acquired Van Nuys Airport Industrial Center in California, an 18-building portfolio of industrial properties within the Los Angeles submarket, for $154.6 million. Additionally, KKR acquired two industrial distribution properties in Texas totaling approximately 1.8 million square feet for $171 million. “As more consumers migrate to shopping online and expect a seamless delivery experience, the demand for modern logistics real …

December 4, 2020

Armada Hoffler, Beatty Development to Build $250M Headquarters for T. Rowe Price in Baltimore

by Alex Tostado December 3, 2020

BALTIMORE — A joint venture between Armada Hoffler Properties and Beatty Development Group has unveiled plans for T. Rowe Price’s new office headquarters in Baltimore’s Harbor Point for $250 million. Plans call for the property to span 450,000 square feet and include ground-level retail space, parking and expanded green spaces. T. Rowe Price expects to move its 1,700 employees into the space in the first half of 2024. The initial lease is for 15 years. T. Rowe Price was founded in Baltimore in 1963 and has been headquartered at 100 E. Pratt St. in downtown Baltimore since 1975. According to the Baltimore Sun, T. Rowe Price signed a 10-year lease renewal at 100 E. Pratt in 2017. The newspaper cited T. Rowe Price’s concerns over safety and traffic as the main reasons for the global investment management firm’s move away from downtown. Harbor Point is situated along Patapsco River, two miles south of T. Rowe Price’s current headquarters. Other Armada Hoffler projects within Harbor Point include office buildings Wills Wharf and Thames Street Wharf, and 1405 Point Apartments. “T. Rowe Price further validates Harbor Point as a top-tier destination for world-class companies,” says Lou Haddad, president & CEO of Armada …

December 3, 2020

Acquisitions California Hospitality Top Stories Western

Oxford Capital Group Acquires Five Boutique Hotels in Downtown San Francisco, Silicon Valley

by Kristin Harlow December 2, 2020

SAN FRANCISCO, PALO ALTO AND LOS GATOS, CALIF. — Oxford Capital Group LLC has acquired five boutique hotels in San Francisco and Silicon Valley from Greystone Hotels for an undisclosed price. The company plans to reposition many of the assets. The properties include King George Hotel, Hotel Griffon and The Inn at Union Square in San Francisco, as well as Creekside Inn in Palo Alto and Hotel Los Gatos in Los Gatos. Dating back to 1914, the 53-room King George Hotel includes a lobby bar and 1,150 square feet of meeting space. Hotel Griffon, which opened in 1906, includes 62 rooms as well as 308 square feet of meeting space and Perry’s restaurant. The Inn at Union Square, which features 30 rooms, opened in 1980 and includes Chloe Gallery. Creekside Inn dates back to 1955. It features 136 rooms, 1,400 square feet of meeting space, CIBO restaurant, Driftwood Deli and a Metro PCS store. Opened in 2002, the 72-room Hotel Los Gatos features 2,000 square feet of meeting space, Dio Deka restaurant and a Verde Touch holistic massage center. “We have been value-oriented investors in the lodging sector for nearly 30 years,” says John Rutledge, founder, chairman and CEO of …

December 2, 2020

Acquisitions Office Top Stories Washington Western

Hudson Pacific, CPP Investments Agree to Acquire Amazon-Leased Office Tower in Downtown Seattle for $625M

by John Nelson December 1, 2020

SEATTLE — Hudson Pacific Properties (NYSE: HPP) and Canada Pension Plan Investment Board (CPP Investments) have agreed to acquire a 36-story office tower anchored by Amazon in Seattle. The companies plan to form a joint venture to purchase the 668,000-square-foot property located at 1918 8th Ave. for $625 million. CPP Investments will own a 45 percent interest in the joint venture, while Hudson Pacific will own 55 percent and act as general partner and as property, leasing and construction manager. The seller was not disclosed, but multiple media outlets report J.P. Morgan Chase has owned the property since 2011 when affiliates bought the asset from developer Schnitzer West LLC. The property is 98 percent leased with an average remaining lease term of 10 years. Amazon is the largest tenant and occupies a majority of the building, which the Seattle-based e-commerce giant dubs the Blackfoot building. The LEED Platinum-certified tower features a multi-level lobby, great room, central conferencing facility and large fitness center. The office tower is situated in downtown Seattle’s Denny Triangle neighborhood near Hill7, an office tower that Hudson Pacific and CPP Investments purchased in 2016. The property is also near Washington 1000, an office development that Hudson Pacific …

December 1, 2020

Acquisitions Company News New Jersey New York Northeast Retail Top Stories

Premium Apparel Agrees to Acquire Multiple Clothing Brands from Ascena Retail Group for $540M

by Taylor Williams November 30, 2020

NEW YORK CITY AND MAHWAH, N.J. — Premium Apparel LLC, an affiliate of New York City-based private equity firm Sycamore Partners, has entered into an agreement to purchase multiple clothing brands from Mahwah-based Ascena Retail Group (OTCMKTS: ASNAQ) for $540 million. The apparel and footwear brands in question include Ann Taylor, LOFT, Lane Bryant and Lou & Grey. Under the terms of the deal, which is expected to close by mid-December, Premium Apparel will acquire the brands on a cash-free and debt-free basis. Premium Apparel did not specify how many of brick-and-mortar stores will be affected by the transaction, but the new ownership did say that it remains committed to retaining a “substantial portion” of stores and employees affiliated with these brands. “Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” says Stefan Kaluzny, managing director of Sycamore Partners. “These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers.” Ascena Retail Group, which operated about 1,500 stores throughout the country as of late August, filed for Chapter 11 bankruptcy in July. In September, …

November 30, 2020

Loans Michigan Midwest Multifamily Top Stories

ACRE Provides $78.5M Bridge Loan for Final-Phase Construction of Detroit City Club Apartments

by Kristin Harlow November 25, 2020

DETROIT — Asia Capital Real Estate (ACRE) has provided a $78.5 million bridge loan to City Club Apartments (CCA) for the developer’s multifamily project in Detroit. The loan, provided through ACRE’s latest debt fund, will fund the final phase of construction on the six-story, 288-unit development in the city’s central business district. Located at 1501 Washington Blvd., Detroit City Club Apartments is currently 95 percent complete. Residents are expected to begin taking occupancy as early as December with 40 percent of the units pre-leased. “Detroit’s downtown has been growing rapidly in recent years and is showing strong fundamentals that support precisely this kind of luxury multifamily development,” says Daniel Jacobs, ACRE’s head of origination. The project includes 11,291 square feet of retail space. Two tenants, Premier Pet Supply and French-American restaurant Statler Bistro, have already secured leases for the retail portion. Amenities for the apartments include a fitness center, business center, clubroom, pool with hot tub, outdoor movie theater, event space and underground valet parking. The luxury, Class A project also includes duplex and townhome units. Monthly rents start around $1,210. Based in Detroit, CCA specializes in the development and management of apartment communities throughout the Midwest and East Coast. …

November 25, 2020

California Company News Retail Top Stories Western

Guitar Center Files for Chapter 11 Bankruptcy Protection, Hires A&G to Evaluate Store Footprint

by John Nelson November 24, 2020

WESTLAKE VILLAGE, CALIF. — Musical instrument retailer Guitar Center has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Eastern District of Virginia. The Westlake Village-based company did not announce plans to close any of its 297 stores, but it has retained A&G Real Estate Partners to explore opportunities for its real estate portfolio. In court filings, Guitar Center cited its business of instrument purchases, rentals, repairs and music lessons suffered amid the upheaval stemming from government-mandated shutdowns in response to the COVID-19 pandemic, according to The New York Times. Approximately 75 percent of its stores were shuttered at one point in the spring. Additionally, the company cited its “significant debt burden” in the court filings. In addition to Guitar Center stores, the company operates four sister brands: Music & Arts, Musician’s Friend, Woodwind & Brasswind and AVDG. Music & Arts, a Maryland-based chain that Guitar Center acquired in 2005, operates 200 stores and 300 affiliate locations that provide band and orchestra instruments and equipment for sale or rentals. Musician’s Friend, which Guitar Center acquired in 1999, is a direct marketer of musical instruments. Likewise Woodwind & Brasswind is a catalogue musical instrument merchant with a …

November 24, 2020

Acquisitions Georgia Industrial Southeast Top Stories

KKR Acquires 1.6 MSF Industrial Portfolio in Atlanta for $136M

by Taylor Williams November 23, 2020

ATLANTA — Global investment firm KKR (NYSE: KKR) has acquired a four-building, 1.6 million-square-foot industrial portfolio located throughout the greater Atlanta area for $136 million. The properties were acquired from four different undisclosed sellers. The newly acquired properties consist of three shallow-bay, last-mile distribution assets with an average completion date of 2006. The fourth property is a fulfillment center that was completed in 2020 and is leased to an investment-grade tenant on a long-term basis. “These acquisitions are part of our ongoing effort to expand our industrial portfolio across high-growth Sun Belt markets,” says Roger Morales, partner at KKR and head of the firm’s commercial acquisitions in the Americas. “We are excited to increase our footprint in Atlanta, given the market’s strong supply-demand fundamentals and long-term growth trajectory,” adds Ben Brudney, director at KKR. “These are important acquisitions for us as we continue to develop and diversify our industrial footprint to include both infill and multi-tenant assets, as well as larger, single-tenant fulfillment centers.” KKR is making the investment in the three smaller properties through its Real Estate Partners Americas Fund II. The fourth property represents an investment by KKR’s core plus real estate strategy, its first in Atlanta. KKR’s …

November 23, 2020

California Healthcare Life Sciences Massachusetts Northeast Office Top Stories Western

IQHQ Completes $1.7B Capital Raise to Fund 4.4 MSF Life Sciences Development Pipeline

by Katie Sloan November 20, 2020

SAN DIEGO AND BOSTON — Life sciences real estate development firm IQHQ Inc. has completed a $1.7 billion equity raise. The company — which completed an initial equity raise of $770 million earlier this year — plans to use the combined funds to build 4.4 million square feet of projects that are currently in its development pipeline. The company has offices in San Diego and Boston, both hubs for life sciences companies. The demand for life sciences real estate continues to increase as the need for vaccines, therapeutics and diagnostics intensifies amid the COVID-19 pandemic, according to an October report by CBRE. Plymouth Meeting, Pa.-based CenterSquare Investment Management invested $158 million in IQHQ’s latest funding round, alongside a group of undisclosed new and existing strategic partners. Madison International Realty, a real estate private equity firm, invested $100 million with an option to invest an incremental $100 million in IQHQ. IQHQ’s current projects include sites in Boston, San Francisco and San Diego. The company announced plans to develop the San Diego Research and Development District (RaDD), a $1.5 billion life science campus located along San Diego’s waterfront, in September. The RaDD will span eight acres and three city blocks, making it …

November 20, 2020

Development Michigan Midwest Top Stories

Ford Unveils Plans for 30-Acre Redevelopment of Michigan Central Station in Detroit

by Alex Tostado November 19, 2020

DETROIT — Ford Motor Co. has unveiled its plans for Michigan Central Station, a 30-acre redevelopment in Detroit’s Corktown neighborhood. The project will entail four buildings — Michigan Central Station, the Book Depository, Building West and The Factory — which are slated for completion throughout 2022. In addition, there will be a 1,250-space parking deck dubbed Bagley Parking Hub. The train station was originally built in 1913 and has sat vacant since 2012. Ford acquired the site and initially announced the project in June 2018. Project costs were not disclosed. Ford plans to house 5,000 employees at the site. The campus will serve as a factory to work on autonomous and electric vehicles, as well as design urban mobility services and solutions that includes smart, connected vehicles, roads, parking and public transit. “This project is about preparing Ford for another century of innovation and success,” says Mary Culler, Ford’s Detroit development director and Ford Fund president. “At Michigan Central, we are taking a collaborative approach to innovation, including providing flexible workspaces that attract and engage the best minds to solve complex transportation and related challenges as we shape the future of mobility together.” Practice for Architecture and Urbanism is the …

November 19, 2020

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