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Washington-Dulles-Gateway-Loudoun-County-Virginia

Sentinel Acquires 280 Acres for Data Center Development in Northern Virginia for $82.5M

by Taylor Williams July 9, 2018

LOUDOUN COUNTY, VA. — New York-based Sentinel Data Centers has acquired Washington Dulles Gateway, a 280-acre tract in northern Virginia, for $82.5 million. The site features 140 acres of net developable land for a new data center project, which equates to a purchase price of about $589,000 per developable acre. The site is one of the largest contiguous tracts for data center development in in Loudoun County, located northwest of Washington, D.C. “Seventy percent of the world’s internet activity runs through Loudoun County,” says Jay Taustin, a representative for the seller. “We are extremely pleased to have sold this important land parcel to Sentinel Data Centers, which provides world-class facility infrastructure, engineering acumen, technical personnel and operations protocols to its users.” Mark Levy, Matthew Gallagher and Jonathan Walk of JLL represented the seller, which according to datacenterdynamics.com was developer and majority owner H. Christopher Antigone, in the sale. “Significant demand continues to exist for data center product in Loudoun County,” says Levy. “When we began the conversation with Sentinel, it was clear it had the market knowledge and sophistication necessary to execute a complex transaction such as this.” Sentinel also acquired 65 acres in Loudoun County for the same purpose …

July 9, 2018

Acquisitions Arizona Multifamily Top Stories Western

NexMetro Sells Three Apartment Communities in Suburban Phoenix for $98M

by Kristin Harlow July 6, 2018

CHANDLER AND GOODYEAR, ARIZ. — NexMetro Communities has sold three apartment communities in suburban Phoenix for $98 million. The properties include Avilla Grace and Avilla Heights in Chandler, as well as Avilla Palm Valley in Goodyear. Avilla Grace, which features 194 units, sold for $45 million. An entity of Illinois-based The Inland Real Estate Group of Cos. Inc. was the buyer. Avilla Heights, which features 116 units, sold for $27.8 million. A single-purpose entity formed by California-based The Certe Group was the buyer. The 125-unit Avilla Palm Valley sold for $25.1 million. New York-based RN Falcon LLC was the buyer. Avilla Homes communities feature single-level units for lease. One-, two- and three-bedroom floor plans include private entrances and outdoor patios. The Class A communities each offer a pool, dog park and recreation area. NexMetro partnered with MEB Management Services in 2014 to manage the lease-up and stabilize operations of its Avilla Homes Arizona portfolio. NexMetro and its affiliated companies have been developing Avilla Homes communities since 2010. With more than 4,000 units completed or under construction, NexMetro plans to expand along the entire Sunbelt region of the country. — Kristin Hiller

July 6, 2018

Acquisitions Hospitality New York Northeast Top Stories

Qatar-Owned Fund Acquires New York’s Historic Plaza Hotel for $600M

by Camren Skelton July 5, 2018

NEW YORK — A hospitality fund controlled by the state of Qatar has acquired New York’s historic Plaza Hotel for $600 million, according to Reuters. Katara Hospitality bought the majority stake held by Indian business group Sahara India Pariwar, along with a 25 percent stake held by New York-based real estate investor Ashkenazy Acquisition Corp. and its partner, Saudi Prince al-Waleed bin Talal, the Wall Street Journal reports. Sahara originally acquired the Plaza Hotel in 2012. Previous owners of the historic property include President Donald Trump, who acquired the asset in 1988 for $390 million, and hotelier Conrad Hilton. The Plaza Hotel is situated on the corner of 5th Avenue and Central Park South. Constructed in 1907, the hotel has hosted famous guests including The Beatles, Marilyn Monroe and Frank Lloyd Wright. The hotel has also been the site of films such as Home Alone 2, The Great Gatsby, Eloise at the Plaza and Alfred Hitchcock’s North by Northwest. The 282-room hotel features multiple on-site dining options including a champagne bar and The Plaza Food Hall, on-site retail, spas and salons. The property underwent a $450 million restoration in 2008. Katara Hospitality is a global hotel owner, developer and operator. …

July 5, 2018

Development Industrial Mixed-Use Southeast Tennessee Top Stories

Urban Story Ventures to Redevelop 112-Acre Site Along Chattanooga’s Tennessee River

by John Nelson July 3, 2018

CHATTANOOGA, TENN. — Urban Story Ventures, a Chattanooga-based commercial real estate developer and owner, is planning the redevelopment of a 112-acre site in Chattanooga’s West End district. Situated along the Tennessee River, the site houses the former Alstom turbine plant, as well as adjacent buildings and land. Preliminary plans call for Urban Story Ventures to preserve the LEED Gold-certified plant and renovate the remaining buildings and land for mixed-use, including office space, restaurants and residences. The developer is also planning a combination distillery, brewery and winery — a first for Tennessee. Urban Story Ventures recently established West End Property LLC to oversee the project. The company hopes to recruit a manufacturer to occupy the space left behind in 2016 by Alstom, a French rail transport company that sold its power and grid business lines to GE Power (NYSE: GE) in 2015. “This is the most significant resurgence of Chattanooga’s riverfront since Mayor Bob Corker implemented the 21st Century Waterfront in 2002,” says Jimmy White, principal of West End Property LLC and owner of Urban Story Ventures. “The development will create hundreds of jobs, connect people to the river and create a whole new district and destination for residents and visitors.” …

July 3, 2018

District of Columbia Loans Office Southeast Top Stories

Cushman & Wakefield Arranges $95M Construction Loan for Office Building in D.C.

by Taylor Williams July 2, 2018

WASHINGTON, D.C. — Cushman & Wakefield has arranged a $95 million construction loan for 1050 17th Street, a 154,000-square-foot office building that will be located in Washington, D.C.’s central business district. Currently occupying the site is a 145,000-square-foot office building that was developed in the mid-1970s and will be demolished. The new property will be developed on a speculative basis, with construction slated to begin later this year. A timeline for completion was not released. The new property will also feature ground-floor retail space and below-grade parking, as well as proximity to nearby public transportation lines. The location also puts the building within walking distance of The White House and the U.S. Treasury Building. Maryland-based EagleBank provided the loan, specific terms of which were not disclosed. Philip Mudd and Brad Geiger of Cushman & Wakefield placed the debt on behalf of The Lenkin Company, a full-service construction and management firm that developed the existing building. “There were several lenders interested in financing this project,” says Mudd. “This was due to the quality, design, ownership and extraordinary location.” — Taylor Williams

July 2, 2018

Acquisitions California Office Top Stories Western

Vanbarton Group Acquires 21-Story Office Tower in San Francisco

by Kristin Harlow June 29, 2018

SAN FRANCISCO — Vanbarton Group LLC has acquired 101 Mission Street in San Francisco. The 206,455-square-foot, 21-story office tower is located in the heart of the South Financial Transbay District. The Class A property is currently 86 percent leased to tenants such as Wells Fargo, Forbes and Pearson. Although the price was not disclosed, Vanbarton received a $116.5 million acquisition loan for the transaction. The building, which is LEED Gold-certified by the U.S. Green Building Council, features views of the San Francisco Bay, column-free office space and 10,500-square-foot floor plates. Services and amenities include on-site property management, 24-hour security, a conference room and building shower. HKS Architects Inc. designed the property. JLL is the leasing agent. Gerry Rohm, Michael Leggett, David Dokko, Ben Bullock and Thomas Foley of HFF represented the undisclosed seller. Peter Smyslowski of HFF arranged acquisition financing. Vanbarton Group is a privately owned real estate investment and advisory firm with corporate offices in New York City and San Francisco. — Kristin Hiller

June 29, 2018

Loans Northeast Office Pennsylvania Top Stories

NKF Capital Markets Arranges $355M Refinancing for Three Office Buildings in Philadelphia

by Camren Skelton June 28, 2018

PHILADELPHIA — NKF Capital Markets has arranged two loans totaling $355 million to refinance three office buildings in Philadelphia’s Central Business District. The portfolio includes 1500 Spring Garden, 1635 Market Street and 1835 Market Street. Dustin Stolly, Jordan Roeschlaub, Nick Scribani and Chris Kramer of NKF Capital Markets arranged the loans on behalf of the borrowers, Nightingale Properties and Wafra Capital Partners. TPG Real Estate Finance Trust provided the financing for 1500 Spring Garden, and KKR & Co. LP provided the loan for 1635 and 1835 Market Street. Nightingale acquired the 1.1 million-square-foot 1500 Spring Garden in 2013. Upon acquisition, the company implemented a $10 million capital improvement program to upgrade the lobby, elevators, restrooms and newly leased spaces. Nearly one-third of the property is leased to data center tenants. Nightingale acquired 1635 and 1835 Market Street in 2014. The buildings total 286,000 square feet and 800,000 square feet, respectively. Since acquisition, Nightingale has invested more than $15 million in capital improvements at 1635 Market Street, signing more than 220,000 square feet of new leases. Over the past three years, the company has signed more than 275,000 square feet of new and renewed leases at 1835 Market Street, taking the …

June 28, 2018

Colorado Development Office Top Stories Western

Patrinely Group, USAA Real Estate Break Ground on 30-Story Office Tower in Downtown Denver

by David Cohen June 27, 2018

DENVER — Patrinely Group and USAA Real Estate have started construction of Block 162, a 30-story office tower in downtown Denver. Located at 675 15th St., the 595,000-square-foot building will include 20 floors of office space on levels 11-30 with an average floor plate size of 29,500 square feet. The property will also include 9,900 rentable square feet of ground-floor retail, three underground parking levels and a 10-floor, above-grade parking garage. “Given the continued strength of the Denver marketplace and the lack of available large blocks of Class A space, we recognized that now is the right time to bring a prestigious building like Block 162 to the urban Denver market,” says Robert Fields, president and CEO of Patrinely Group. “We believe that this state-of-the-art building will continue the amazing transformation of downtown and provide prospective tenants a true 21st century work environment for their employees.” Planned amenities for office tenants at the building include a fitness center, social lounge, conference and meeting space, and a sky terrace on the 11th floor with an outdoor roof garden, seating areas and fire pits. Patrinely Group, which specializes in commercial office building and build-to-suit corporate headquarters, and USAA Real Estate are the co-developers of Block 162. The architect …

June 27, 2018

California Loans Multifamily Top Stories Western

Walker & Dunlop Provides $392.4M in Green Financing for Los Angeles Multifamily Portfolio

by John Nelson June 26, 2018

LOS ANGELES — Walker & Dunlop (NYSE: WD) has provided approximately $392.4 million in agency financing for three apartment communities in the greater Los Angeles area. The portfolio includes The Medici and The Orsini I in downtown Los Angeles and The Colony Townhomes in Santa Clarita, about 34 miles north of Los Angeles. Walker & Dunlop closed approximately $233.6 million through Freddie Mac’s Green Up program for the two Los Angeles properties. The Bethesda, Md.-based company also provided a $158.8 million loan through Fannie Mae’s Green Rewards program for the 752-unit community in Santa Clarita. G.H. Palmer Associates, the borrower and developer of all three communities, used the funding to refinance the assets. Led by Walker & Dunlop’s Trevor Fase, each transaction provided cash out to the borrower and was structured as a 10-year, non-recourse loan with interest-only payments for the entire term. As part of the green lending programs from the two government-sponsored enterprises (GSEs), G.H. Palmer is also using the proceeds to improve the apartment communities’ energy and/or water efficiency. In order to qualify for the agencies’ green lending programs, borrowers have to plan improvements for at least 25 percent savings in energy or water usage, according to …

June 26, 2018

Acquisitions Multifamily Student Housing Top Stories

Greystar Agrees to Acquire EdR in $4.6B Merger

by Taylor Williams June 25, 2018

CHARLESTON, S.C. — An affiliate of multifamily development firm Greystar has agreed to acquire student housing developer Education Realty Trust Inc. (NYSE: EDR) in an all-cash transaction that will take the company private. The sales price of $4.6 billion includes existing debt. Under the terms of the agreement, which is expected to close during the second half of the year, EdR’s stockholders will receive $41.50 per share in cash. The price represents a premium of 13.6 percent over the May 31 closing share price, the last day before rumors of the sale were published. According to the company’s annual report, in 2017, Memphis-based EdR owned 70 student housing properties totaling 36,420 beds across 24 states. The company also managed 16 communities totaling 9,832 beds across 10 states. “As a public company, one of our priorities is to maximize stockholder value and we believe this transaction with Greystar accomplishes that goal,” says Randy Churchey, CEO and chairman of EdR. “Since the current EdR management team took over on January 1, 2010 — and including this transaction — EdR stockholders will have received a total stockholder return of 293 percent.” According to Alex Goldfarb, managing director and senior REIT analyst at New York-based Sandler …

June 25, 2018

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