Top Stories

LOS ANGELES — LA Hana OW LLC has acquired DreamWorks Animation’s headquarters and studio campus, a 460,000-square-foot creative office campus in the Los Angeles submarket of Glendale, for $290 million. The five-building campus is located at 1000 Flower St. The property is fully leased on a triple-net basis to DreamWorks Animation SKG, a wholly owned subsidiary of Comcast Corp., through 2035. The Mediterranean-style campus features landscaped courtyards, a manmade river, library, fitness center and screening room, among other amenities. The campus was built on 15 acres in 1997. LA Hana OW, an entity of Hana Asset Management and OceanWest, plans to hold the property long-term. The buyer represented itself in the transaction, while NKF’s Kevin Shannon, Ken White and Laura Stumm represented the seller, The GC Net Lease Investors LLC. GC Net Lease is an entity of Griffin Capital Co., which acquired the property in July 2015 for $215 million. Comcast acquired DreamWorks in August 2016. DreamWorks Animation SKG is an animation studio that has released such children’s films as the Shrek, Kung Fu Panda and Madagascar series. The studio is a subsidiary of Universal Studios, which is itself a division of NBCUniversal. The studio’s feature films have grossed $14.5 billion …

FacebookTwitterLinkedinEmail

BROOMFIELD, COLO. — Inland Real Estate Acquisitions Inc. has facilitated the sale of 8000 Uptown Apartments, a 360-unit multifamily community located in Broomfield, 18 miles northwest of Denver. The property sold for $95 million, according to BizWest. Matthew Tice and Brett Smith of Inland Real Estate facilitated the transaction. The buyer was an unspecified affiliate of Inland. The seller was not disclosed. Constructed in 2015, the property consists of 19 buildings with 160 one-bedroom, 170 two-bedroom and 30 three-bedroom units. The Wolff Company developed the community on a 14-acre site as part of the transit-oriented, master-planned Arista community, according to the Broomfield Patch. The greater Arista community totals 2,000 acres, including $400 million of residential, commercial, retail, hospitality and mixed-use real estate. Each unit features at least 9-foot ceilings, stainless steel appliances, quartz countertops, a washer and dryer, and a private balcony or patio. Community amenities include a clubhouse with coffee and beer on tap, fitness center, business center, playground, resident lounge and a resort-style heated swimming pool. “8000 Uptown Apartments’ prime location places residents just three miles from the Interlocken Technology business park, where many major employers such as Ball Aerospace, Nexus, Vail Resorts and Oracle have their headquarters,” says Tice of Inland. …

FacebookTwitterLinkedinEmail

LOS ANGELES — Office rents across the United States and Canada are getting a big lift from the influence of tech job creation, according to CBRE. All of the submarkets tracked in the brokerage giant’s annual Tech-30 report have experienced rental growth over the past two years. In 13 of those submarkets, asking rental rates have grown by more than 10 percent in the two years tracked between second-quarter 2015 and second-quarter 2017. On the list of 30 submarkets, office rent growth was led by Orange County, Calif. (23.3 percent), Nashville (21.2 percent), Atlanta (17.6 percent), Charlotte (16.9 percent) and Silicon Valley (16.8 percent). According to CBRE’s Tech-30 report, the willingness of tech companies to pay a premium for office space in the hottest tech submarkets is starting to spill over into neighboring submarkets, as available space in tech “hotspots” is dwindling. Adjacent submarkets and traditional downtowns with skylines — rather than the brick-and-beam buildings tech companies have demonstrated a preference for — are primed to benefit, according to the report. “If tech companies that are used to paying a premium for space in the top tech submarkets are forced to move to adjacent submarkets in order to expand, we …

FacebookTwitterLinkedinEmail

CARMEL, IND. — Mainstreet Health Investments (TSX: HLP-U), an Indiana-based seniors housing owner and developer that trades on the Toronto Stock Exchange, has acquired New York-based Care Investment Trust LLC and its portfolio of 42 seniors housing communities for $425 million. Mainstreet is funding the equity portion of the acquisition through the issuance of Mainstreet common shares directly to Tiptree Inc. (NASDAQ: TIPT), a New York-based holding company with roughly $2.4 billion in assets, including Care Investment Trust. Mainstreet will issue 16.8 million shares of its common stock at $9.75 per share to Tiptree. Mainstreet will also assume $261.2 million of Tiptree’s existing mortgage debt, which carries an interest rate with a weighted average of 4.7 percent. Upon closing of the deal, which is expected to occur during the first quarter of 2018, Tiptree will become Mainstreet’s largest shareholder with a 34 percent interest. The Care Investment Trust portfolio consists of 35 independent living, assisted living and memory care properties as well as seven skilled nursing facilities. The 42 properties, 24 of which are leased to long-term, triple-net operators, total 3,178 suites/beds across 11 states. The other 18 properties are leased to seniors housing operators via joint ventures in which …

FacebookTwitterLinkedinEmail

NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has agreed to sell 600 Lexington Ave. in Midtown Manhattan for $305 million. The 36-story, 303,515-square-foot office building is located on the corner of 52nd Street and Lexington Avenue in the heart of the Plaza District. The property is 99 percent leased to tenants such as MKP Management, Element Capital Management and Hawkins Parnell Thackston & Young. The sale is expected to close by the first quarter of 2018, and generate net cash proceeds of approximately $292 million, according to a news release. Darcy Stacom of CBRE represented SL Green in the transaction. The buyer was not disclosed. SL Green acquired 600 Lexington Ave. through a joint venture in May 2010 for $193 million, and took full ownership of the property in December 2015. SL Green is a fully integrated real estate investment trust, focused on acquiring and managing retail and office properties in Manhattan. The company’s stock price closed on Thursday, Nov. 16 at $100.81 per share, down from $104.49 per share one year ago. — Kristin Hiller

FacebookTwitterLinkedinEmail

SAN JOSE, CALIF. — Bayview Development Group, a privately held commercial real estate development and investment firm based in Northern California, has received a $288.8 million construction loan to develop MIRO in downtown San Jose. The project will include a pair of 28-story luxury apartment towers housing more than 600 residences and 20,000 square feet of retail and commercial space. Situated in one of the top markets in the Silicon Valley, MIRO will feature one-, two- and three-bedroom layouts, including 16 penthouses. The project will also include more than 50,000 square feet of amenities, such as a rooftop pool, concierge services, fitness center, spa facilities, pet facilities, fire pits and rooftop lounges. Bayview Development expects to deliver MIRO in 2020 at 167 E. Santa Clara St., within walking distance of the future downtown San Jose BART station. In addition to Bayview, the design team includes architect Steinberg and general contractor Suffolk. Charles Halladay, Brandon Roth and Jason Carlos of HFF arranged the five-year, interest-only loan through Broad Street Real Estate Credit Partners III, a debt fund managed by the Goldman Sachs Merchant Banking Division. The fund provides senior and mezzanine lending and preferred equity, according to Forbes. “There was a …

FacebookTwitterLinkedinEmail

NEW ORLEANS — Many seniors housing developers, owners and operators are already looking forward to the “silver tsunami” of Baby Boomers reaching the proper age to enter seniors housing. However, if current trends continue, many of those seniors won’t be able to afford seniors housing anyway, according to panelists at the LeadingAge Annual Meeting and Expo. The panel, titled “Understanding the Economics & Financing Structures of Moderately Priced Life Plan Communities,” took place at the event in New Orleans on Oct. 30. The panelists included Mark Landreville, executive vice president with bond financing specialists HJ Sims; and Steve Kuhns, a partner with seniors housing consulting firm Essential Decisions Inc. Wayne Olson, executive vice president of Volunteers of America National Services, contributed to the presentation but was unable to attend the event. Landreville led the discussion and called affordability “the single biggest issue facing the seniors housing industry.” He cited a recent Time magazine study showing that 30 percent of U.S. households headed by people 55 and older have no retirement account at all, and the remaining 70 percent have a median account balance of just $104,000. “Everyone talks about the Baby Boomers, but they don’t have the resources they want …

FacebookTwitterLinkedinEmail
Wells Fargo Center, Portland, Ore.

PORTLAND, ORE. — Starwood Capital Group has purchased the 40-story Wells Fargo Center in downtown Portland. The transaction includes an adjacent five-story former data processing building. The price was not disclosed, though county tax records put the value of the tower at $163 million and the adjacent property at $33 million, according to The Oregonian. In June, Wells Fargo announced plans to sell the buildings and relocate some of the 900 employees working there to other local offices, added The Oregonian. The two structures total 725,000 square feet. The asset is located at 1300 SW 5th Ave. The Class A creative office space is the tallest building in Oregon. It offers views of Mt. Hood, the Willamette River, Mount St. Helens, downtown Portland and the West Hills. Starwood plans to reposition the property into a premier Class A asset. The lobbies and entries will undergo major renovations. The investment firm will also add new tenant amenities, including conference facilities, a tenant lounge, reimagined retail areas, fitness center and bike hub. “We are confident that our ambitious renovation plans will restore this building to its former status as one of the most iconic Class A office towers not just in Portland, …

FacebookTwitterLinkedinEmail

HOUSTON — The number of American manufacturing jobs has been decreasing for more than a decade, radically enough that the pledge to return them became a cornerstone of President Donald Trump’s campaign. Between 2004 and 2014, the country lost about 2.1 million manufacturing jobs, according to the U.S. Bureau of Labor Statistics (BLS), which also projects that another 814,000 manufacturing jobs will be cut by 2024. The decline in manufacturing jobs has coincided with job growth in other industrial subfields, particularly transportation and warehousing. The total number of jobs in this sector increased by about 391,000 between 2004 and 2014, with an additional 137,000 new positions expected to be created by 2024, per the BLS. Analyzed in the context of e-commerce, these trends suggest that industrial activity is still robust throughout the country, but that distribution is outstripping manufacturing as the primary form of industrial-using employment. Yet the growth of e-commerce alone does not account for the radical dip in the number of manufacturing jobs available. The substitution of human labor for automated robot workers has also been a driving force behind sluggish job growth in the manufacturing sector, according to a panel of industrial real estate professionals who gathered …

FacebookTwitterLinkedinEmail

SAYREVILLE, N.J. — A joint venture between North American Properties (NAP) and PGIM Real Estate is set to break ground on Riverton, a $2.5 billion, 418-acre, mixed-use development located roughly 33 miles south of Manhattan along the Raritan River in Sayreville. Upon completion, the project is set to include residential, retail, entertainment, office and hotel space alongside a marina. The development will also incorporate passive recreation and open space along the riverfront, programmed gathering spaces and street-level commercial space. Key approvals for the site were initially obtained in 2014. NAP has updated the redevelopment plan for the property, and is in the process of securing the necessary state and local approvals required to begin development. A critical component of the project’s financing will be support from the New Jersey Economic Development Authority through the Economic Redevelopment & Growth Program, which the EDA approved in 2014 and will be asked to reaffirm for the updated development plan. Pending approvals and financing, the project is scheduled for completion in 2021. NAP recently appointed David Weinert as partner and senior vice president of leasing. Weinert will lead the leasing efforts for Riverton, alongside the other properties in NAP’s development pipeline. North American Properties …

FacebookTwitterLinkedinEmail