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Joint Venture Unveils $600M Mixed-Use Project in Savannah, Georgia

by Camren Skelton May 10, 2018

SAVANNAH, GA. — A joint venture between ELV Associates, Mariner Group and Regent Partners has unveiled the development plans for a $600 million mixed-use project in Savannah. The joint venture originally acquired the site — formerly known as Savannah River Landing — in September 2017. The project will be renamed Eastern Wharf, a nod to the site’s history. The Savannah Eastern Wharves date back to the early 1800s, when Savannah was on the rise as one of the major ports on the East Coast. “It was important to our team that we were respectful of Savannah’s history,” says Trent Germano, a principal with Mariner Group. “When we started to learn about the site and the significant role it played in the early commerce of Savannah, we knew what direction we wanted to go.” The 57-acre site is located adjacent to downtown Savannah’s Landmark Historic District. The development plan outlines approximately seven acres of public open space including squares and a park along the Savannah River. The group plans to break ground on the first phase of Eastern Wharf this summer. Representing a $225 million investment, the first phase will include more than 300 apartment units; a 1,100-space parking garage; 40,000 square feet …

May 10, 2018

Development Multifamily New York Northeast Top Stories

JD Carlisle, Fosun International Receive $350M Loan to Build Luxury Multifamily Tower in Manhattan

by Kristin Harlow May 9, 2018

NEW YORK CITY — JD Carlisle Development Group and Fosun International have received a $350 million loan for the construction of a 66-story luxury condominium project in Manhattan’s NoMad neighborhood. The 199-unit tower will be located at 126 Madison Ave., also known as 15 East 30th St. Once known for its wholesale stores along Broadway Street, NoMad is now a hotbed for luxury condo buildings. Designed by Handel Architects, the project will span 400,408 square feet and include 4,093 square feet of retail space. Amenities will include an indoor pool, private party room, dining room, lounge, fitness center and full-time doorman. The building is slated for completion in 2021. Adam Hakim, James Murad and Andrew Ladeluca of Eastern Consolidated arranged the construction loan, which was provided by Bank of the Ozarks. Jon Mechanic, Nathaniel Lifschitz, Danielle Frank and Shelby Smith of Fried Frank acted as counsel on behalf of the developers. Other recent luxury residential developments for JD Carlisle in Manhattan include 160 Madison Ave., the Beatrice, Centria, Cielo and Morton Square. The New York-based firm was founded in 1946. In addition to 126-132 Madison Ave., Shanghai-based Fosun International owns 28 Liberty St. in Manhattan. — Kristin Hiller

May 9, 2018

California Development Healthcare Property Type Top Stories Western

CHA Health Systems Breaks Ground on $291M Hospital Tower in Hollywood

by John Nelson May 8, 2018

LOS ANGELES — CHA Health Systems Inc. has broken ground on a new patient care tower within CHA Hollywood Presbyterian Medical Center (HPMC), a private hospital campus in Hollywood. The nearly 175,000-square-foot tower will replace an existing building at an estimated cost of $291 million. The tower is part of HPMC’s three-phase, $350 million overhaul that includes retrofitting the existing Doctor’s Tower and South Wing to satisfy California’s seismic requirements. The state passed a seismic retrofitting law in the wake of the 1994 Northridge earthquake that requires all acute care medical centers and hospitals to adhere to seismic-specific structural standards by 2030. The goal of the law is for all California hospitals to remain operational in the event of an earthquake, such as the 4.5-magnitude tremor that shook regions of Southern California early this morning. KMD Architects designed the new tower to meet the state’s seismic requirements as well. Doctor’s Tower, South Wing and HPMC’s new parking deck are set to open this year. The tower will double the hospital’s current emergency department with a 26,000-square-foot space that features 20 exam rooms and a private room for women’s services, as well as areas designated for chest pain observation and detox …

May 8, 2018

Acquisitions Industrial Top Stories

Blackstone Agrees to Acquire Gramercy Property Trust in $7.6B, All-Cash Transaction

by Taylor Williams May 7, 2018

NEW YORK — Affiliates of Blackstone Real Estate Partners VIII have agreed to acquire Gramercy Property Trust (NYSE: GPT) for $7.6 billion in an all-cash transaction. The sale is expected to close before the end of the year. Shortly after the announcement of the merger, shareholder rights law firm Johnson Fistel LLP launched an investigation into whether the board members of Gramercy breached their fiduciary duties in valuing the transaction at this level. One Wall Street analyst has set a price target of $33 per share for Gramercy’s common stock, the 52-week high of which was $31.26 per share. Under the terms of the deal, Blackstone will acquire all outstanding shares of New York-based Gramercy’s common stock for $27.50 per share. This figure represents a 15 percent markup of Gramercy’s current stock price, which closed at $23.82 per share on Friday, May 4. Shareholders of Gramercy will still be entitled to receive second-quarter dividends of 37.5 cents per share. Should the deal close after Oct. 15, shareholders will receive a per diem payment of approximately $.004 per share on each day between Oct. 15 and the closing date. “We believe this transaction validates the quality of the portfolio and platform …

May 7, 2018

Acquisitions California Multifamily Top Stories Western

IPA Brokers $161.9M Sale of Multifamily Portfolio in Los Angeles County

by Kristin Harlow May 4, 2018

LOS ANGELES — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the sale of an eight-property, 644-unit multifamily portfolio in Los Angeles County for $161.9 million. The properties include: Oaktree Apartments and Stillmore Apartments in Santa Clarita; Tamarind Terrace Apartments in Hollywood; Regency Apartments, Woodley Court and Sylvan Apartments in Van Nuys; Vista Del Madre in Pasadena; and Foothill Village in Sylmar. Seven of the eight assets were not subject to rent control. Greg Harris, Ron Harris, Kevin Green, Joseph Grabiec and Bryan Schellinger of IPA represented the seller, a private ownership group. The team also procured the five separate buyers, which include an institutional discretionary fund, regional syndicators and private investors. Renovations are currently planned for the properties. “It is rare to find a sizeable, almost completely non-rent-controlled, value-add portfolio where the upside can be immediately realized,” says Green. Cap rates ranged between 3.5 percent and 4.5 percent based on current net operating income, according to Harris. Projected cap rates following renovations are between 5 percent and 6 percent. — Kristin Hiller

May 4, 2018

Company News Maryland Multifamily New York Northeast Seniors Housing Southeast Top Stories

Annaly to Acquire Healthcare Real Estate Specialist MTGE for $900M in REIT Merger

by Camren Skelton May 3, 2018

NEW YORK AND BETHESDA, MD. — New York-based Annaly Capital Management Inc. (NYSE: NLY) has agreed to acquire Bethesda-based real estate investment trust MTGE Investment Corp. (NASDAQ: MTGE) for $900 million in cash and stock. The transaction values healthcare real estate specialist MTGE at $19.65 per share. Under the deal, MTGE shareholders will have the option to receive cash, stock or a combination of the two. In addition, Annaly will assume the existing $55 million in MTGE preferred stock. The transaction is expected to close in the third quarter. “The acquisition of MTGE adds complementary assets, deepens the breadth of our investment alternatives, is accretive to earnings and provides immediate cost savings and efficiencies to shareholders,” says Kevin Keyes, chairman, CEO and president of Annaly. MTGE invests in and manages a portfolio of mortgage-backed securities and investments in triple net leased healthcare real estate. The company is externally managed and advised by MTGE Management LLC, an affiliate of AGNC Investment Corp. As of Dec. 31, MTGE’s portfolio included $6.6 billion in assets. With approximately $104.3 billion in assets as of March 31, Annaly’s portfolio includes securities, loans and equity in the residential and commercial markets. The transaction marks Annaly’s third …

May 3, 2018

Development Mixed-Use New York Northeast Top Stories

Winthrop Realty Sells $1.5B Stake in 20 Times Square to Partner Maefield Development

by David Cohen May 2, 2018

NEW YORK CITY — Winthrop Realty Liquidating Trust has sold its stake in 701 Seventh Avenue, also known as 20 Times Square, to Maefield Development for $1.53 billion. Maefield was Winthrop’s former investment partner in the building currently under construction in Manhattan’s bustling Times Square district. The 400,000-square-foot development will feature a 39-story tower with 120,000 square feet of retail, attraction and entertainment spaces. The project will also include a 452-room Marriott-Edition hotel tower and an 18,000-square-foot video screen, which will be the highest resolution screen in Times Square. Maefield will finish the development as sole owner. To finance the buyout, a group of lenders led by French bank Natixis provided around $2 billion in financing and refinancing for the property, according to The Real Deal. In 2012, a group of investors led by Maefield that included Winthrop acquired an existing 11-story office building at the location for $430 million. Mark Siffin, chairman of Maefield, first began assembling the site in 2010. The project’s long-term tenants already include the National Football League and Hershey’s. In addition to Winthrop, Maefield also bought out the investment stake of Steve Witkoff, Ian Schrager and Howard Lorber’s New Valley investment company. The terms of …

May 2, 2018

Acquisitions Illinois Midwest Office Property Type Top Stories

Brookfield Purchases 22-Story Office Tower in Downtown Chicago for $305M

by John Nelson May 1, 2018

CHICAGO — A private fund sponsored by Brookfield Asset Management (NYSE: BAM) has purchased 175 West Jackson, a 22-story office tower in downtown Chicago’s Central Loop district, for $305 million. JLL Capital Markets represented the seller, a high-net-worth European family advised by Extell Development. Built in 1912 and designed by Chicago-based architect Daniel H. Burnham, the Class A office tower spans 1.4 million square feet, encompassing a full city block. The property features rooftop decks, conference facilities and a recently renovated, 7,500-square-foot athletic club. The building also features retail and dining space, including Starbucks Coffee, Fifth Third Bank and CVS on the street level. The office tower provides tenants access to public transit and is one block from the Brown, Red, Blue, Pink and Purple El lines. The building is also within walking distance to Chicago Union Station and Ogilvie Transportation Center. Extell Development invested heavily in the redevelopment of 175 West Jackson after purchasing the neo-classical building in the late 1990s, according to Crain’s Chicago. The redevelopment included the addition of a two-story atrium lobby, exterior restoration and common area upgrades, according to Extell’s website. Lucien Lagrange Architects Studio designed the upgrades to include wood, granite, marble and metal …

May 1, 2018

Acquisitions Industrial Top Stories

Prologis to Acquire DCT Industrial Trust in $8.4B, All-Stock Transaction

by Taylor Williams April 30, 2018

SAN FRANCISCO AND DENVER — San Francisco-based Prologis Inc. (NYSE: PLD) and Denver-based DCT Industrial Trust Inc. (NYSE: DCT) have entered into a definitive merger agreement wherein Prologis will acquire DCT Industrial Trust for $8.4 billion. The sale will be structured as an all-stock transaction. DCT shareholders will receive 1.02 shares of Prologis stock for each share of DCT stock they own. Under the terms of the transaction, which is expected to close during the third quarter, Prologis will assume all of DCT’s outstanding debt. During a conference call on the morning of April 30, the leaders of both companies pointed to the similarities in their operating strategies as key incentives behind the merger. “For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” said Hamid Moghadam, Prologis’ chairman and CEO. “This high level of strategic fit will allow us to capture significant economies of scale immediately.” “We competed against Prologis for many years and it has always been apparent that their approach to developing and operating is very similar to ours,” said Phil Hawkins, president and CEO of DCT. “This merger represents …

April 30, 2018

Development Illinois Midwest Office Top Stories

Sterling Bay Receives $181.5M Construction Loan for Office Tower in Chicago’s Fulton Market

by Kristin Harlow April 27, 2018

CHICAGO — Sterling Bay has received a $181.5 million loan for the construction of 333 N. Green St., a 548,932-square-foot office tower in Chicago’s Fulton Market district. The Class A office tower will rise 19 stories, with floor plates ranging from 13,634 to 40,589 square feet. The property will feature 31,521 square feet of street-level retail space and a four-floor parking garage. Amenities will include a fitness center, conference area, tenant lounge and private rooftop. The LEED Silver-certified building is 47.2 percent preleased to GroupM and will serve as the advertising media company’s North American headquarters. The building will also serve as the regional headquarters for GroupM’s parent company, WPP. Other big-name companies that have chosen to open offices in the bustling Fulton Market district include Google, McDonald’s and Dyson. Timothy Joyce, Danny Kaufman and Christopher Knight of HFF arranged the floating-rate loan through Wells Fargo. Sterling Bay is a real estate investment and development firm with over 10 million square feet in its portfolio. The Chicago-based company currently has a pipeline of over $10 billion in development. — Kristin Hiller

April 27, 2018

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