Top Stories

Kroenke Sports, Revesco Receive $124.6M Refinancing for Elitch Gardens Theme Park in Denver

by John Nelson March 17, 2020

DENVER — Kroenke Sports and Entertainment (KSE) and Revesco Properties have received a $124.6 million loan to refinance Elitch Gardens Theme and Water Park in downtown Denver. The 130-year-old property is Colorado’s only combination amusement park and water park. The park is set to open for its 2020 season in April, but no word has come out if the outbreak of COVID-19 has changed that plan. Eric Tupler and Tyler Dumon of JLL arranged the five-year, floating-rate loan through Pacific Western Bank. KSE and Revesco, both based in Denver, plan to use the loan to retire existing debt and fund predevelopment work for the future River Mile project. Expected to take 25 years to fully come to fruition, River Mile is Revesco’s planned mixed-use district that will span 62 acres along a one-mile stretch of the South Platte River. KSE is a partner on the project. River Mile will eventually replace the amusement park, according to local media outlets. The redevelopment is expected to span 14 million square feet of residential and commercial mixed-use space, as well as public space along the riverfront. The River Mile project will include Meow Wolf, a 90,000-square-foot art installation attraction that is expected to …

March 17, 2020

Loans New York Northeast Office Top Stories

JLL Arranges $545M Refinancing for Historic 711 Fifth Avenue Office Building in Manhattan

by Taylor Williams March 16, 2020

NEW YORK CITY — JLL has arranged a $545 million loan for the refinancing of 711 Fifth Avenue, a 340,024-square-foot office building in Manhattan. Originally built in 1927, the 18-story building consists of 284,061 square feet of office space and 55,963 square feet of retail space. In its 93-year history, 711 Fifth Avenue has served as the both the corporate and regional headquarters of companies such as NBC, Columbia Pictures and Coca-Cola. The building is located near Central Park and the world-renowned 57th Street luxury residential corridor, also known as Billionaires’ Row. Goldman Sachs served as the senior lender on the deal. The borrower was a partnership between locally based development firm SVHO, Deutsche Finance America and BLG Capital. The partnership acquired the building in September 2019. A portion of the proceeds will be used to fund capital improvements, including upgrades to the lobby, mechanical systems, terraces and other outdoor common areas. The SHVO-led development team has acquired seven properties during the past 18 months, including 685 Fifth Avenue, 711 Fifth Avenue and 530 Broadway in New York City. Michael Tepedino, David Sitt, Robert Tonnessen, Kristen Knapp and Sophie Gaylor led the JLL team that placed the debt. Wachtel Missry LLP served as the borrower’s legal …

March 16, 2020

Illinois Loans Midwest Top Stories

Oaktree, GlenStar Receive $256M Refinancing for Board of Trade Office Building in Downtown Chicago

by Alex Patton March 13, 2020

CHICAGO — A partnership between funds managed by Oaktree Capital Management LP and GlenStar Properties has received a $256 million loan to refinance 141 W. Jackson, a historic, 1.3 million-square-foot office tower in Chicago’s central business district. Known as the Chicago Board of Trade Building, the 44-story skyscraper is the primary trading venue of the CME Group, a global markets company formed by a merger of the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange. JLL arranged the financing provided by a domestic financial institution. Ownership plans to allocate a portion of the loan proceeds toward future leasing. The Chicago Board of Trade Building was originally constructed in 1930 for CBOT and was designated a National Historic Landmark on June 2, 1978. The building is a popular sightseeing attraction and has appeared in several films, including as the headquarters of Wayne Enterprises in “Batman Begins” (2005). Ownership has maintained and updated the building with modern amenities and technology, including a 24/7 fitness center; video conference center; rooftop deck and game room; Ceres Café Bar and Patio; Cellars Market; and a tenant lobby with concierge services. The building is home to a roster of retail, banking, healthcare, legal and …

March 13, 2020

Company News New York Northeast Retail Top Stories

Modell’s Sporting Goods to Close All 153 Stores

by Alex Tostado March 12, 2020

NEW YORK CITY — Modell’s Sporting Goods has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of New Jersey. The fourth-generation, family-owned retailer will close all of its 153 stores throughout New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Massachusetts, New Hampshire, Delaware, Maryland, Virginia and Washington, D.C. The New York City-based sporting goods, athletic footwear, active apparel and fan gear retailer was founded in 1889. The company will begin liquidation sales Friday, March 13 and plans to continue operating its online platform. Modell’s lenders, which include Wells Fargo and JP Morgan Chase, will provide the company with the financial flexibility to operate the business in the near term, including paying employee wages and benefits. According to the New York Post, Modell’s employs 3,623 workers. With the rising competition and plethora of online options to shop for athletic gear, CEO Mitchell Modell cites an “extremely challenging environment for retailers” as a reason for the bankruptcy. “Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations,” says Modell. “While we achieved some success, in partnership with our landlords and vendors, it was not enough to …

March 12, 2020

Acquisitions California Multifamily Top Stories Western

Acacia Capital Buys Park Hacienda Apartment Community in Bay Area for $248M

by Kristin Harlow March 11, 2020

PLEASANTON, CALIF. — JLL Capital Markets has arranged the $248 million sale of Park Hacienda, a 540-unit apartment community within the Hacienda Business Park in Pleasanton, about 30 miles north of San Jose. Equity Residential (NYSE: EQR) sold the property to Acacia Capital Corp. The garden-style community is situated on 24 acres at 5650 Owens Drive. Originally completed in 2000, the property has been partially renovated and features one-, two- and three-bedroom floor plans averaging 998 square feet. Renovated units feature stainless-steel appliances, full-size washers and dryers, and personal patios with storage. Community amenities include two swimming pools, a fitness center, covered parking and direct public park access. Scott Bales, Peter Yorck, Nolan Moore and Max Machiorlette of JLL represented the seller. The sales price of $459,000 per unit makes it one of the largest single-asset, value-add, multifamily sales in Bay Area history, according to JLL. Chicago-based Equity Residential is a publicly traded real estate investment trust focused on the acquisition, development and management of rental apartment properties. The company owns or has investments in 309 properties consisting of 79,962 units, primarily located in Boston, New York, Washington D.C., Seattle, San Francisco, Southern California and Denver. Equity’s stock price closed …

March 11, 2020

Acquisitions Development Mixed-Use Northeast Pennsylvania Top Stories

SomeraRoad Buys Out Partners for SouthSide Works in Pittsburgh, Plans $167M Development and Renovation

by John Nelson March 10, 2020

PITTSBURGH — SomeraRoad Inc., a value-add investment and development firm based in New York City, has taken full ownership of SouthSide Works in Pittsburgh’s South Side neighborhood. The adaptive reuse project was formerly the site of J&L Steel Works and now houses approximately 280,000 square feet of retail space, 180,000 square feet of office space and 85 apartments. The project opened in 2004. SomeraRoad plans to undertake more than $37 million in capital improvements and invest $130 million in new development at the project, including 230 apartments and 200,000 square feet of office space fronting the Monongahela River. Another key feature of the new development plan is the conversion of the SouthSide Works Cinema to a 77,000-square-foot creative office space dubbed Box Office. SomeraRoad plans for the new office space to house about 500 office workers. The Kansas City office of HOK Architecture will design Box Office, which SomeraRoad will begin work on this summer. “The cinema’s grand entry, high ceilings and efficient useable floorplate, coupled with steel and glass improvements and the adaptive reuse appeal, creates a unique office conversion opportunity Pittsburgh hasn’t seen before,” says Jon Reeser, SomeraRoad’s vice president of acquisitions and head of its Pittsburgh office. …

March 10, 2020

Acquisitions District of Columbia Office Southeast Top Stories

Paramount Group to Sell Pennsylvania Avenue Office Building for $115M

by Taylor Williams March 9, 2020

WASHINGTON, D.C. — Paramount Group Inc. has agreed to sell 1899 Pennsylvania Ave., a 191,000-square-foot office building in Washington, D.C., for $115 million. Originally built in 1915 and most recently renovated in 2002, the 11-story building is located just three blocks from The White House in the city’s central business district. The property features 18,200-square-foot floor plates and floor-to-ceiling glass façades, as well as amenities such as a fitness center, rooftop terrace and 64 covered parking spaces. In addition, four Metrorail lines serve the building. “With the sale of 1899 Pennsylvania Ave., we have now strategically sold all five of our wholly owned assets in Washington, D.C.,” says Albert Behler, chairman, CEO and president of Paramount Group. “This transaction demonstrates our determination to sell stabilized or non-core assets and redeploy that capital into higher-growth opportunities.” The transaction is expected to close during the fourth quarter. The buyer was not disclosed. The Washington Business Journal reported in 2010 that Paramount Group had acquired the asset for $149 million. Paramount Group is a New York City-based investment and management firm that specializes in owning and operating Class A office properties in the core markets of New York City, San Francisco and Washington, D.C. …

March 9, 2020

California Development Retail Top Stories Western

URW Opens Expansion of $1.1B Silicon Valley Retail Destination

by Alex Patton March 6, 2020

SAN JOSE, CALIF. — Unibail-Rodamco-Westfield (URW) has opened a 500,000-square-foot expansion of Westfield Valley Fair, the French developer’s $1.1 billion retail destination in San Jose. The retail center is part of a redevelopment project that replaced two 1950s-era shopping centers. The project now encompasses 2.2 million square feet in total, with more restaurant and store openings planned for 2021. A three-level flagship Bloomingdale’s luxury apparel department store anchors the new expansion, alongside other apparel retailers including Anthropologie, Club Monaco, Fabletics, Indochino, Jimmy Choo, John Varvatos, Longchamp, Rodd and Gunn, Urban Outfitters, UNTUCKit and Zadig & Voltaire. “We envisioned Westfield Valley Fair as a place where prestigious luxury brands, digitally native start-up retailers, and best-in-class dining and entertainment all come together to create a true lifestyle destination and the perfect place to shop, dine and play,” says Larry Green, executive vice president of development at URW. The developer recently partnered with the San José Museum of Art to curate and commission artwork for the property, starting with an outdoor sculpture at the new grand entrance on Stevens Creek Boulevard, which will be unveiled this fall. Entertainment offerings include the recently opened ShowPlace ICON Theatre and the soon-to-open PLAYlive Nation social gaming lounge. Future additions to the retail center this year and into …

March 6, 2020

Acquisitions Hospitality Top Stories

Xenia Hotels Agrees to Sell Seven-Property Hospitality Portfolio for $483M

by Alex Tostado March 5, 2020

ORLANDO, FLA. — Xenia Hotels & Resorts Inc. (NYSE: XHR), an Orlando-based hospitality REIT, has agreed to sell a seven-hotel, 1,124-room portfolio for $483 million, or approximately $430,000 per room. Kimpton manages all seven properties in the portfolio, which comprises the 97-room Canary Hotel Santa Barbara in California; 191-room Hotel Monaco Chicago; 189-room Hotel Monaco Denver; 225-room Hotel Monaco Salt Lake City; 230-room Hotel Palomar Philadelphia; 107-room Lorien Hotel & Spa in Alexandria, Va.; and the 85-room RiverPlace Hotel in Portland, Ore. Orlando-based Xenia acquired RiverPlace Hotel, Hotel Palomar Philadelphia and Canary Hotel Santa Barbara in 2015. The company acquired Hotel Monaco Denver, Lorien Hotel & Spa, Hotel Monaco Salt Lake City and Hotel Monaco Chicago in 2013. Xenia expects the sale to close in May, although the undisclosed buyer can extend the deadline to June with an additional deposit payment. The sales price represents a 5.3 percent capitalization rate, according to Xenia. “While these hotels are high-quality assets that are largely consistent with our long-term investment strategy, we believe that this disposition is an illustration of our ability to opportunistically unlock value within our current portfolio and increase shareholder value through portfolio recycling,” says Marcel Verbaas, chairman and chief executive officer …

March 5, 2020

Acquisitions North Carolina Office Southeast Top Stories

JLL Arranges $102M Sale of Three Office Buildings Within Charlotte’s Coliseum Centre

by Kristin Harlow March 4, 2020

CHARLOTTE, N.C. — JLL Capital Markets has arranged the sale of Coliseum Centre III, V and VI in Charlotte for $102 million. The three Class A office buildings total 511,344 square feet and are located immediately adjacent to Billy Graham Parkway in Charlotte’s Airport submarket. Completed between 1996 and 1998, the six-story buildings are 87 percent occupied overall. Amenities include onsite dining options, three fitness centers, boardrooms, training facilities, a conference facility, tenant lounge and collaboration area. Ryan Clutter, Chris Lingerfelt and Zack Drozda of JLL represented the seller, America’s Capital Partners. Travis Anderson and Taylor Allison of JLL arranged a $79.3 million acquisition loan on behalf of the buyer, Charlotte-based South Street Partners. Brookfield provided the four-year, floating-rate loan. “Given the strong employment growth and corresponding leasing demand in Charlotte, opportunities like Coliseum Centre are very attractive to investors,” says Clutter. “Charlotte has become one of the top markets for office investment nationally and is poised to continue to see significant inbound capital flows.” America’s Capital Partners is a private commercial real estate investment firm headquartered in Coral Gables, Fla. South Street Partners is a private equity real estate investment firm that has deployed $640 million of capital across …

March 4, 2020

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