Top Stories

KBS Sells Park Avenue at Morris County Office Park in New Jersey for $311M

by Taylor Williams January 29, 2020

FLORHAM PARK, N.J. — California-based investment firm KBS has sold Park Avenue at Morris County, a trophy office park in Florham Park for $311 million. The deal marks the highest price for a multi-tenant office building in suburban New Jersey since 2008, according to CBRE, which brokered the deal. The buyer was a New York City-based private investor. Situated on 135 acres, Park Avenue at Morris County consists of six Class A office buildings totaling just under 1.2 million square feet. The campus, located in Northern New Jersey approximately 20 miles west of Manhattan, was developed in phases between 1989 and 1999. The property also features a 7,000 square-foot private daycare and preschool facility. During its ownership period, KBS introduced new amenities such as a fitness center with personal training spaces, basketball courts, volleyball courts and a soccer field, as well we service-based amenities like a car wash and a dry cleaner. KBS also upgraded the buildings’ roofs, HVAC systems, elevators and conference centers while adding transportation amenities such as electric car charging stations and shuttle service to nearby public transit lines. The property was 89 percent occupied at the time of sale. “Though we purchased this property during the economic …

January 29, 2020

Development Illinois Midwest Office Top Stories

Friedman Properties, City of Chicago Move Forward with High-Rise Office Tower in Downtown’s River North District

by John Nelson January 28, 2020

CHICAGO — Friedman Properties and the City of Chicago have finalized the development agreement of their public-private partnership for Rivere, a 30-story high-rise office building coming to downtown Chicago’s River North district. The 674,000-square-foot tower will be situated at 450 N. Dearborn St., a block south of the intersection of Illinois and Dearborn streets. Rivere will feature a little more than 50,000 square feet of retail space, as well as high-end amenities including concierge services, meditation space, on-demand meeting space, an upscale fitness and wellness center, secure bike room with shower facilities, onsite valet, below-grade garage parking and a food and beverage program operated by Lettuce Entertain You Enterprises. The property will also house a new engine house for Engine Co. 42, the District 1 headquarters for the Chicago Fire Department. Designed by Goettsch Partners, Rivere will feature a glass façade with activated rooftops and sustainable features, including efficient mechanical systems that will help reduce water and energy use. Other design team members include construction management firm Lendlease and engineer DLR Group. Office managers and staff at Rivere will be able use an app to facilitate parking, concierge services, fitness class appointments, guest passes, thermostat control, restaurant reservations and conference …

January 28, 2020

Acquisitions Midwest Ohio Retail Top Stories

VICI Properties Completes Acquisition of JACK Cleveland Casino, Thistledown Racino for $843.3M

by Kristin Harlow January 27, 2020

CLEVELAND AND NORTH RANDALL, OHIO — VICI Properties Inc. (NYSE: VICI) has completed the acquisition of JACK Cleveland Casino and JACK Thistledown Racino for approximately $843.3 million. The company financed the transaction with cash on hand. JACK Cleveland Casino opened in May 2012 in the historic Higbee Building in downtown Cleveland. The property features approximately 96,000 square feet of gaming space, 1,300 gaming machines, 120 table games and eight food and beverage outlets. The casino is connected to both the 205-room Ritz-Carlton hotel and the 440-room Renaissance hotel. JACK Thistledown Racino is located in North Randall, about 10 miles southeast of Cleveland. The racino — a combination of a horse racing track and a casino — opened in April 2013. Situated on 129 acres, it features the race track, approximately 57,000 square feet of gaming space, 1,459 gaming machines and six food and beverage outlets. The venue hosts the Ohio Derby horse racing event every summer. The transaction increases VICI’s “exposure to the limited license state of Ohio, which continues to be one of the healthiest gaming markets across the country,” according to John Payne, president and COO of VICI. Simultaneous with the closing of the transaction, VICI entered into …

January 27, 2020

Development Massachusetts Mixed-Use Northeast Top Stories

JLL Arranges $870M Construction Loan for South Station Redevelopment Project in Boston

by Taylor Williams January 24, 2020

BOSTON — JLL has arranged an $870 million construction loan for the first phase of the redevelopment of Boston’s South Station transit hub. Upon completion, the project will ultimately comprise 1.9 million square feet of commercial and residential space. The initial phase will feature a 1.2 million-square-foot, 51-story mixed-use tower rising above the historic transit station, which was built in 1898. Scheduled for completion in 2024, the tower will house approximately 660,000 square feet of Class A office space, 166 condominium units and more than 500 parking spaces. Pelli Clark Pelli Architects is designing the project. The office component will feature 26,000-square-foot floor plates, 13-foot floor-to-ceiling windows and unobstructed views of downtown Boston and Boston Harbor. The residential component will include one-, two- and three-bedroom units, as well as penthouse duplex units, and amenities such as an outdoor pool, fitness center, conference center and onsite restaurant. Riaz Cassum and Jennifer Kelly of JLL arranged the loan through The Children’s Investment Fund on behalf of the borrower, a joint venture between Hines, APG Groep NV and Dune Real Estate Partners. “Developments of this quality and magnitude arise infrequently in a mature market such as Boston,” says Cassum. “The tower at South Station …

January 24, 2020

Development Mixed-Use North Carolina Southeast Top Stories

Joint Venture to Develop $95M Mixed-Use Tower in Charlotte

by Alex Tostado January 23, 2020

CHARLOTTE, N.C. — A joint venture between Armada Hoffler Properties Inc. (NYSE: AHH), David Furman of Centro City Works and Charles Campbell of Flagship Healthcare Properties has unveiled plans for Ten Tryon, a 215,000-square-foot mixed-use development in Charlotte. The building will feature a Publix grocery store as well as a Fortune 100 office tenant. The developers expect the project will cost $95 million. The 15-story building, which is being designed to LEED standards, will feature 175,000 square feet of office space, a 340-space parking garage and a 9,000-square-foot indoor/outdoor rooftop restaurant. The project will be situated between 9th and 10th streets on North Tryon Street as part of the larger North Tryon Vision Plan that is geared toward developing and sustaining growth in the neighborhood. Armada Hoffler Construction Co., a wholly owned subsidiary of Armada Hoffler Properties, will serve as the general contractor for the project. The company anticipates breaking ground during the second quarter of 2020 with expected completion in summer 2022. The site is two blocks from the Ninth Street light rail station, providing tenants with multiple transportation options, and offers easy access to Interstate 277 for commuters. “Ten Tryon has everything we look for in a new ground-up development …

January 23, 2020

Development Florida Mixed-Use Southeast Top Stories

Forest Development to Build 1.1 MSF Nautilus 211 Mixed-Use Project in Lake Park, Florida

by Kristin Harlow January 22, 2020

LAKE PARK, FLA. — Forest Development has received unanimous approval from the City of Lake Park to build Nautilus 211, a mixed-use project featuring condominiums, office space, retail and restaurants. The 1.1 million-square-foot development will rise along the Intracoastal Waterway and overlook the Lake Park Harbor Marina. The project’s two 23-story towers will house 332 condo units. Amenities for residents will include two pools, pickleball courts, a putting green, game room, children’s play center, private theater, clubroom, resident bowling alley, library and fitness center. A fifth-floor entertainment area will offer a music studio, arts and crafts room, billiards room and Pilates studio. Four guest suites will be available for rent. In addition to the 332 condos, the project will include 13,000 square feet of office space, 8,058 square feet of retail space and 14,550 square feet of waterfront restaurant space. Five floors of parking will offer 863 spots for both residents and the public. Construction is scheduled to begin this fall, with completion slated for summer 2023. The project is the result of five years of planning, according to Peter Baytarian, managing partner of Lake Park-based Forest Development. Pricing has not yet been released, but Baytarian says the initial unit …

January 22, 2020

Loans Multifamily New York Northeast Top Stories

Morgan Stanley Provides $142.6M Refinancing for Multifamily Portfolio in The Bronx

by John Nelson January 21, 2020

NEW YORK CITY — Morgan Stanley (NYSE: MS) has provided $142.6 million in permanent financing for an 18-property multifamily portfolio in the Bronx. The Greenwich, Conn.-based borrower, The Morgan Group, will use the loans to refinance the nearly 1,000-unit portfolio, which includes 29 commercial units. Black Bear Capital Partners (BBCP) arranged the financing in three separate 10-year, interest-only loans. The financing includes a $77 million loan with a fixed interest rate of 3.78 percent; a $33.3 million loan fixed at 3.92 percent; and a $32.3 million loan fixed at 3.65 percent. The low-leverage loan package replaces Morgan Group’s existing debt, which was close to maturation. Bryan Manz, Rob Serra and Emil DePasquale of BBCP arranged the financing for Morgan Group, which owns a large multifamily rental portfolio in the Bronx, Manhattan, Queens, Brooklyn and Westchester County. “BBCP, The Morgan Group, and Morgan Stanley worked diligently to close this complex refinancing package in timely and efficient manner,” says Manz. “We look forward to arranging additional transactions with both parties.” Morgan Stanley is a global financial services firm that operates in more than 41 countries. The company provides investment banking, securities, wealth management and investment management services. Morgan Stanley’s stock price closed …

January 21, 2020

Acquisitions Florida Office Southeast Top Stories

TPG Real Estate Acquires Jacksonville Town Center Office Campus for $107M

by Taylor Williams January 20, 2020

JACKSONVILLE, FLA. — TPG Real Estate, a San Francisco-based investment firm, has acquired Town Center One and Two, a 374,123-square-foot office campus in Jacksonville, for $107 million. The property spans 25 acres. It is located in the Deerwood Park area and features proximity to the Southside Quarter mixed-use development and St. Johns Town Center, an open-air shopping and dining destination. Town Center One is a five-story, 155,423-square-foot building that was 94 percent leased at time of sale to tenants including Availity, UBS Bank and Insight Global. Town Center Two is a six-story, 218,700-square-foot building that is fully leased to Web.com. A state-of-the-art common area with a cafe and conference center is located in Town Center Two, while Town Center One features a tenant amenity hub on the first floor. Both buildings were constructed with above-code hurricane resistance. Mike Davis, Rick Brugge, Karl Johnston, Rick Colon, Zachary Eicholtz and Steve Aiken of Cushman & Wakefield represented the seller, Kansas City, Mo.-based developer VanTrust, in the transaction. “With an influx of new multifamily and mixed-use development, the Deerwood Park submarket is experiencing a rapid transformation from suburban to a more densely populated urban landscape,” says Johnston. “Town Center One and Two have played a significant role in …

January 20, 2020

Acquisitions Multifamily Southeast Texas Top Stories Virginia

Harbor Group Acquires 36-Property Multifamily Portfolio for $1.85B

by Alex Patton January 17, 2020

NORFOLK, VA. — Harbor Group International LLC (HGI), a privately owned real estate investment and management firm based in Norfolk, has acquired a 36-property multifamily portfolio for $1.85 billion. The portfolio comprises 13,243 units, most highly concentrated in the Dallas/Fort Worth and Denver markets. The remaining properties are located in Houston, San Antonio, Atlanta, Orlando, Phoenix, Salt Lake City, Albuquerque, St. Louis and Kansas City. The properties average 350 units each, primarily in two- and three-story buildings. The transaction was the largest multifamily sale since 2016 and the fifth largest ever recorded in the U.S., according to the seller, Los Angeles-based Aragon Holdings LLC. The deal is part of Aragon’s broader $2 billion sale of its entire apartment portfolio, which consists of 15,000 units located in 12 cities and eight states across the nation. “We decided to sell our portfolio because we recognized that, in the present market conditions, the properties would have the greatest value in the hands of a ‘value-add’ operator,” says Larison Clark, founder, chairman and CEO of Aragon Holdings. “Harbor Group targets value-add opportunities, making this an ideal transaction for both firms.” Dan Guy, Aragon’s president and chief operating officer, adds that Aragon initially focused on …

January 17, 2020

Company News Massachusetts Northeast Top Stories

Bose to Close All Remaining U.S. Stores

by Alex Tostado January 16, 2020

FRAMINGHAM, MASS. — Bose Corp. will close all of its 54 stores in the U.S., as well as many remaining locations in Australia, Japan and Europe in the coming months, totaling 119 brick-and-mortar locations. The Framingham-based company, which specializes in audio engineering, said the closures are due to “dramatic” shifts to online shopping. Bose opened its first store in 1993 and currently has its biggest concentration of stores in the Northeast (10), Southern California (nine) and Florida (seven). “Originally, our retail stores gave people a way to experience, test and talk to us about multi-component, CD and DVD-based home entertainment systems,” says Colette Burke, vice president of global sales at Bose. “At the time, it was a radical idea, but we focused on what our customers needed, and where they needed it — and we’re doing the same thing now.” Furthermore, as smartphones changed the industry, Bose focused on mobile, Bluetooth and Wi-Fi solutions. Today, the company said its major products are being purchased through e-commerce channels, including Bose.com. Bose says it will continue to operate 130 stores in China, the United Arab Emirates, India, Southeast Asia and South Korea. The privately held company said it will not disclose how many …

January 16, 2020

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