Top Stories

Prime Healthcare Agrees to Acquire Hospital in Los Angeles County for Over $350M

by John Nelson April 14, 2020

LYNWOOD, CALIF. — Prime Healthcare, a private healthcare system based in Ontario, Calif., has agreed to acquire St. Francis Medical Center, a 384-bed hospital in the Los Angeles County suburb of Lynwood. The U.S. Bankruptcy Court for the Central District of California in Los Angeles recently approved Prime Healthcare’s purchase agreement with the seller, Verity Health System, a California-based healthcare system that filed for bankruptcy in summer 2018. As part of the agreement, Prime Healthcare will purchase St. Francis Medical Center for more than $350 million, which includes a $200 million base price and a $15 million in payroll and benefits for staff. The firm will also invest $47 million to make technological and system upgrades, as well as finalize employee agreements with the hospital’s current staff. The remaining balance of the purchase price was not specifically categorized. Prime Healthcare has agreed to honor the Attorney General and Bankruptcy Court conditions recently issued for this sale to preserve the hospital, trauma care, service lines, charity commitments and community benefit programs. “Our agreement with Verity reflects our decades-long mission of saving, improving and investing in community hospitals,” said Dr. Sunny Bhatia, Prime Healthcare’s Region 1 CEO and corporate chief medical officer. …

April 14, 2020

Acquisitions California Multifamily Top Stories Western

TMG Negotiates $45.5M Sale of Heights at Grand Terrace Apartments in California

by Amy Works April 13, 2020

GRAND TERRACE, CALIF. — The Mogharebi Group (TMG), a multifamily brokerage firm serving the markets of California, has arranged the sale of The Heights at Grand Terrace, a 228-unit multifamily property located at 22491 De Berry St. in Grand Terrace. The community is located in San Bernardino County, approximately 60 miles east of Los Angeles. A San Diego-based private group sold the asset to an East Coast-based buyer for $45.5 million, which translates to $199,561 per unit or $237 per square foot. Both parties involved in the transaction requested anonymity. Built in the 1970s, The Heights at Grand Terrace features apartments that are spread across 19 residential buildings on nine acres. The property features one- and two-bedroom floor plans with an average unit size of 842 square feet, as well as private patios and garages. Community amenities include a resort-style pool and spa, fitness center, private clubhouse, multimedia room, semi-private patios and private garages. Alex Mogharebi and Otto Ozen of TMG represented both the seller and buyer in the deal. “At a price of $199,561 per unit, this transaction represents a record for apartment communities in Grand Terrace,” says Ozen, who serves as executive vice president of TMG. “The record-setting …

April 13, 2020

Acquisitions Georgia Southeast Top Stories

Domain Capital, Simpson Housing Form $1B Joint Venture REIT with PFA Pension

by Alex Patton April 10, 2020

ATLANTA — Domain Capital Advisors and property management firm Simpson Housing have formed a joint venture with PFA Pension, an insurance company headquartered in Copenhagen, Denmark. PFA acquired a 49 percent equity interest in a 13-asset, Class A multifamily portfolio for an aggregate value of $1.05 billion. Simpson Housing will own the remaining 51 percent, while Domain Capital Advisors will provide oversight and asset management of the newly formed REIT joint venture. Simpson Housing formerly owned 100 percent of the 3,487-unit portfolio, which is located across multiple urban and suburban U.S. markets including Austin, Charlotte, Denver, Houston, Nashville, Phoenix, Portland and Seattle. The portfolio was 95 percent leased at the time of closing, and features both newly built and refurbished assets that are approximately six years old. “We are excited about our new relationship with PFA Pension and look forward to growing our relationship with them through further acquisitions,” says Patrick Leardo, executive managing director and chief executive officer of Domain Capital Group. “Our team is also proud to continue its longstanding partnership with Simpson Housing. We have managed equity investments in their portfolio for more than 10 years, while providing asset management and advisory support to our operating partner.” Simpson Housing …

April 10, 2020

Acquisitions Illinois Loans Midwest Mixed-Use Top Stories

Newmark Knight Frank Provides $102.5M Acquisition Loan for Cityfront Place Apartments in Chicago

by Alex Tostado April 9, 2020

CHICAGO — Newmark Knight Frank has provided a $102.5 million Freddie Mac loan for the acquisition of Cityfront Place, a 39-story, 480-unit multifamily community in Chicago’s Streeterville neighborhood. Built in 1991, Cityfront Place is located along the Chicago River less than a mile from Lake Michigan. The property offers studio, one- and two-bedroom floor plans. Communal amenities include a business center, lounge, rooftop terrace, pool, sundeck, fitness center and a pet washing station. Unit interiors include marble floors in the bathrooms, walk-in closets, wood-flooring in select units and balconies. According to Apartments.com, rents range from $1,826 to $4,553 per month. Landmarks in Streeterville include the Wrigley Building, Tribune Tower, Museum of Contemporary Art, Chicago Children’s Museum and the Navy Pier. The neighborhood is bordered by Lake Michigan to the east, the Chicago River to the south, North Rush Street to the west and East Lake Shore Drive to the north. Henry Stimler and Charles Han of NKF originated the loan on behalf of a partnership between Chicago-based Strategic Properties of North America, Integrated Capital Management and South Korea-based Mirae Asset Daewoo. The loan features a five-year term with interest-only payments and a fixed interest rate of 3 percent. CBRE represented …

April 9, 2020

Acquisitions Industrial Maryland Southeast Top Stories

GLL Real Estate Partners Acquires 1.1 MSF Industrial Development Near Baltimore for $90M

by Kristin Harlow April 8, 2020

CURTIS BAY, MD. — Germany-based GLL Real Estate Partners has acquired Brandon Woods III, a two-building industrial development in Curtis Bay, for $90 million. Chesapeake Real Estate Group LLC (CREG) and EverWest Real Estate Investors LLC sold the buildings. The sale also includes two land parcels with the potential for another 250,000 square feet of development. The two assets span 840,000 square feet at 7550 Perryman Court and 7659 Solley Road, just south of Baltimore near the Patapsco River. The building at 7550 Perryman Court is considered the largest speculative industrial building ever constructed in Anne Arundel County, according to CREG. Best Buy leased the entire building in summer 2018 and currently employs approximately 300 workers at the facility. The building is used as a warehouse and distribution center for large products, as well as a repair site for major appliances and televisions. The other building, 7659 Solley Road, is a recently delivered, 340,000-square-foot speculative property. It features a clear height of 36 feet, 87 dock doors, four drive-in doors, a 130-foot truck court and parking for 257 cars and 61 trailers. CREG was retained to oversee the construction, leasing and management at Brandon Woods III, which should total approximately …

April 8, 2020

Colorado Development Multifamily Top Stories Western

AMLI Buys Multifamily Development Site on South Broadway in Denver

by Amy Works April 7, 2020

DENVER — AMLI Residential, a multifamily developer and owner based in Chicago, has purchased 2.7 acres of land on South Broadway in Denver for a new 300-unit apartment community. The property is situated within Broadway Park, a mixed-use, infill redevelopment totaling 75 acres and entitled for up to 10 million square feet of development. Denver-based D4 Urban is the master developer of Broadway Park and sold the land to AMLI. Chris Cowan and Mackenzie Walker of Newmark Knight Frank (NKF) Multifamily represented D4 Urban in the land sale. The sales price was not disclosed. Community amenities at the project, named AMLI Broadway Park, will include a rooftop deck; two-story fitness and clubhouse area; pool; barbecue and lounge area; dog run; and several courtyards. The property is designed to achieve LEED Gold certification, which is a hallmark of AMLI communities nationwide. The new community is the second vertical development within the Northwest District at Broadway Park. The site is adjacent to Price Development Group’s 345-unit multifamily property currently under construction, as well as a public plaza developed by D4 Urban on behalf of the Broadway Park North Metropolitan District, according to Dan Cohen, development partner at D4 Urban. The property will …

April 7, 2020

Company News Maryland Southeast Top Stories

Under Armour to Furlough 6,600 Workers Beginning April 12

by Taylor Williams April 6, 2020

BALTIMORE — In response to the spread of COVID-19, Under Armour Inc. (NYSE: UA) will temporarily lay off some 6,000 employees at its outlet stores around the country and approximately 600 workers at its U.S. distribution centers, effective Sunday, April 12. The Baltimore-based sports apparel retailer also said it would extend current store closures until further notice. In addition, the company’s board of directors and executive vice presidents will be taking 25 percent pay cuts during the public health crisis. Under Armour workers at distribution centers that continue to work will be paid premium bonuses. The company will cover full health benefits for employees for approximately two months during the layoff period. “In these unprecedented and challenging times, the majority of stores where Under Armour is available remain closed, contributing to a significant decline in revenue,” says Patrik Frisk, the company’s president and CEO. “While we’re thankful for the meaningful balance sheet improvements we’ve driven over the past two years and are seeing some early signs of recovery in our Asian-Pacific region, this unanticipated shock to our business has been acute, forcing us to make difficult decisions to ensure that Under Armour is positioned to participate in the eventual recovery of demand.” Prior to …

April 6, 2020

Georgia Loans Multifamily Southeast Top Stories

Cortland Partners Receives $340M Financing for Acquisition of Pure Multi-Family REIT

by Alex Patton April 3, 2020

ATLANTA — Walker & Dunlop has provided a $340 million loan for the acquisition of Pure Multi-Family REIT (TSX: RUF), a publicly traded Canadian real estate investment trust. Atlanta-based real estate firm Cortland Partners LLC acquired Pure late last year in a $1.2 billion all-cash transaction, which included a 22-property multifamily portfolio totaling 7,085 units. All properties in the portfolio are located in the Sun Belt region of the United States, which spans from the southern half of California to South Carolina. A large portion of the portfolio is located in Houston and Dallas, and the deal will make Cortland the largest multifamily owner-operator in the Dallas-Fort Worth area. Cortland plans to implement a capital improvement investment in each of the properties to improve the exteriors, landscaping, amenities and interior unit finishes. “The acquisition of PURE Multi-Family REIT represents our confidence and conviction in multifamily growth,” says Mike Altman, chief investment officer of Cortland. “By executing our financing on this acquisition, [Walker & Dunlop has] allowed us to continue our growth in these markets.” Aaron Appel, Keith Kurland and Jonathan Schwartz led the Walker & Dunlop financing team. Deutsche Bank served as a lending partner. — Alex Patton

April 3, 2020

Development Industrial Loans New York Northeast Top Stories

Innovo Property, Square Mile Capital Receive $305M Construction Financing for Industrial Facility in the Bronx

by Alex Tostado April 2, 2020

NEW YORK CITY — Innovo Property Group (IPG) and equity partner Square Mile Capital Management LLC have received $305 million in financing for the development of a 1 million-square-foot, two-story industrial facility in New York City’s Bronx borough. The joint venture acquired the land in 2017. Construction is underway with completion slated for first-quarter 2022. The last-mile distribution property is situated on 20 acres at 2505 Bruckner Blvd., nine miles from LaGuardia Airport, 15 miles north of John F. Kennedy International Airport and at the intersection of Interstates 95, 278 and 295. Additionally, the facility is located within 30 miles of 9.4 million people. The facility will feature 133 exterior parking spaces for trailers and box trucks as well as 664 interior parking spaces for cars and sprinter vans. The building will offer direct loading on the first and second floors, each with a 130-foot truck court. The first floor will feature 32-foot clear heights, 40-foot-by-40-foot column spacing and cross-docked loading with 74 dock doors and two drive-in doors. The second floor will be accessible to 53-foot tractor-trailers via two double-wide ramps and will feature 28-foot clear heights, 80-foot-by-80-foot column spacing, 37 loading dock doors and two drive-in doors. “As in …

April 2, 2020

Acquisitions New York Northeast Office Top Stories

Paramount Agrees to Sell Interest in $2.4B Midtown Manhattan Skyscraper

by Kristin Harlow April 1, 2020

NEW YORK CITY — Paramount Group Inc. (NYSE: PGRE) has agreed to sell a 10 percent interest in 1633 Broadway, a 2.5 million-square-foot office tower located on Broadway between 50th and 51st streets in Manhattan. While the price and buyer were not disclosed, the seller says the transaction values the property at $2.4 billion and netted a profit of $114 million for the company. The transaction is scheduled to close in the second quarter. Floor plates at the 48-story building range from 37,000 to 54,000 square feet. The property features a newly renovated lobby, 40 elevators, direct access to the New York City subway system and a 250-space parking garage. The property is located in the heart of Manhattan’s Theater District, with both Gershwin Theater and Circle In The Square Theater located in the building. The location is two blocks from Radio City Music Hall and Rockefeller Center, four blocks from Times Square and seven blocks from Central Park. “With this pending sale of a joint venture interest in 1633 Broadway, we have successfully proven the value of this enormous trophy asset at levels well above what is implied by our stock price,” says Albert Behler, chairman, CEO and president …

April 1, 2020

Newer Posts

Older Posts