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

Company News Illinois Midwest Top Stories

Cushman & Wakefield Files for IPO

by Kristin Harlow June 22, 2018

CHICAGO — Cushman & Wakefield has filed registration with the SEC for an initial public offering (IPO). The number of shares to be offered and the price range for the proposed offering have yet to be determined. Chicago-based Cushman & Wakefield is among the largest real estate services firms in the world with 48,000 employees in approximately 400 offices and 70 countries. The 101-year-old firm, which reported revenues of $6.9 billion last year, manages approximately 3.5 billion square feet of commercial real estate space on behalf of institutional, corporate and private clients. The company could seek to raise about $1 billion in the IPO and seek a valuation in excess of $5 billion, according to The Wall Street Journal. In its filing, Cushman & Wakefield states five strategies for growing revenue and profitability: hiring top talent; expanding margins; leveraging breadth of services; deploying capital around its infill M&A strategy; and utilizing technology. The decision is likely a move to better compete with CBRE and JLL, both of which are publicly traded entities. CBRE’s revenue for 2017 was $14.2 billion while JLL’s was $7.9 billion. Cushman & Wakefield ranked No. 3 on Lipsey’s 2017 Top 25 Commercial Real Estate Brand Survey. Cushman & …

June 22, 2018

Acquisitions Retail Texas Top Stories

Rent-A-Center Stock Rebounds Following News of Buyout

by Taylor Williams June 21, 2018

PLANO, TEXAS — After announcing on Monday, June 18, it had entered into an agreement to be acquired by Vintage Capital Management, Rent-A-Center Inc. (NASDAQ/NGS: RCII) has seen its stock price increase steadily throughout the week. The company’s stock price opened at $14.78 per share on Thursday, June 21. This figure represents a nearly 23 percent increase in the span of just one week, but remains a far cry from the peak price of $40 per share in summer 2013. Vintage Capital agreed to acquire Rent-A-Center for $15 per share in a transaction that is valued at approximately $1.4 billion and which will take the Plano-based retailer private. The deal is expected to close before year’s end. The price represents a premium of approximately 49 percent over Rent-A-Center’s closing stock price of $10.07 per share on Oct. 30, 2017. According to one retail analyst, Rent-A-Center’s struggles stemmed from several factors, including a high number of new competitors in the home goods sector and the lack of financial resources to establish robust online sales. “Rent-A-Center is an interesting case because it kind of bleeds into that personal services category, yet it’s not especially resistant to e-commerce because of the physical goods …

June 21, 2018

Acquisitions Florida Hospitality Southeast Top Stories

CBRE Brokers $170.6M Sale of Hilton Fort Lauderdale Marina

by David Cohen June 20, 2018

FORT LAUDERDALE, FLA. — CBRE Hotels has brokered the sale of the Hilton Fort Lauderdale Marina, a 589-room hotel located at 1881 17th St. in Fort Lauderdale. Situated along the Intracoastal Waterway, the nine-acre property is third-largest hotel in Broward County. The Blackstone Group sold the asset to Thayer Lodging Group, a subsidiary of Brookfield Asset Management, for $170.6 million, according to reports by the South Florida Business Journal. The hotel was built in 1980 and 1981, and has been renovated several times, most significantly in 2008. The property includes a 33-slip marina, business center, meeting rooms, fitness center, jogging track and a swimming pool. Christian Charre, Paul Weimer, Natalie Castillo and Jennifer Jin of CBRE arranged the transaction on behalf of the seller. “The Hilton Marina is a strategic property in an area with extremely high barriers to entry,” says Charre. “We encountered a great amount of interest from the investor community and had multiple rounds of competitive bidding.” Located in the Fort Lauderdale Marina, the hotel is surrounded by multiple demand generators that include the Greater Fort Lauderdale/Broward County Convention Center, Port Everglades and the Fort Lauderdale-Hollywood International Airport. “With tremendous potential for future redevelopment, this truly unique investment …

June 20, 2018

Acquisitions Civic District of Columbia Office Southeast Top Stories

Easterly Government Properties Agrees to Buy 1.5 MSF Government-Leased Office Portfolio for $430M

by John Nelson June 19, 2018

WASHINGTON, D.C. — Easterly Government Properties (NYSE: DEA) has agreed to purchase a 14-property office portfolio across the United States for $430 million. The nearly 1.5 million-square-foot portfolio is 94 percent leased by the U.S. government and 99 percent leased overall. The seller was undisclosed. “We believe the acquisition of this portfolio is a wonderful opportunity for the company,” says William C. Trimble III, CEO of Easterly. “This acquisition is expected to grow our portfolio by approximately 39 percent on a rentable-square-foot basis, while still maintaining the same high-quality standard of assets Easterly is known for.” The portfolio includes the following assets: • A 267,766-square-foot office building in Buffalo, N.Y., housing Department of Veterans Affairs (VA), Internal Revenue Service (IRS) and a regional office for the National Labor Relations Board • A 239,331-square-foot building next to Chicago O’Hare International Airport that houses the Federal Aviation Administration’s (FAA) Great Lakes Regional Office and the U.S. Department of Agriculture (USDA) • A 225,057-square-foot facility in Portland, Ore.’s Central City Plan District housing the USDA, U.S. Army Corp of Engineers (ACOE), Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) • A 182,500-square-foot build-to-suit property in Parkersburg, …

June 19, 2018

Development Florida Mixed-Use Southeast Top Stories

Joint Venture Acquires 38 Acres in South Florida for $200M Mixed-Use Project

by Camren Skelton June 18, 2018

BOCA RATON, FLA. — Giles Capital Group, Rosemurgy Properties, Schmier Property Group and Wheelock Street Capital have acquired 38 acres at the intersection of Glades Road and 95th Avenue South in Boca Raton for a $200 million mixed-use project. Dubbed Uptown Boca Raton, the 1.1 million-square-foot, pedestrian-friendly project will feature 150,591 square feet of retail space and 456 apartment units. Lucky’s Market and Silverspot Cinema will anchor the development, which will also house tenants such as Chick-fil-A and BankUnited. Katz & Associates is handling the project’s leasing assignment. “We are pleased to close on the property and to have the opportunity to deliver to West Boca Raton a lifestyle and entertainment project that will serve as a much-needed destination for the local community,” says Brian Schmier, CEO of Schmier Property Group. Developers will break ground on Uptown Boca Raton this month, with a projected retail opening in summer 2019. The multifamily portion of the project is expected to open in early 2020. Giles Capital Group is a real estate investment and development firm focused on multifamily communities in Florida. Founded in 1977, Boca Raton-based Rosemurgy Properties is a privately owned commercial real estate development, investment and management firm. Portfolio assets include multifamily, self-storage, …

June 18, 2018

Development Illinois Midwest Top Stories

Chicago Selects Elon Musk’s Boring Co. to Build, Operate Express Transit Line from Downtown to O’Hare Airport

by Kristin Harlow June 15, 2018

CHICAGO — City of Chicago Mayor Rahm Emanuel has selected The Boring Company to build and operate a high-speed transit service between downtown Chicago and O’Hare International Airport. Founded by entrepreneur and Tesla CEO Elon Musk, Boring plans to transport passengers between O’Hare and Block 37 in the Loop in approximately 12 minutes each way by utilizing electric vehicles that run through new twin underground tunnels. The project will be funded entirely by the company with no taxpayer subsidy. Crain’s Chicago Business reports that the project cost could be anywhere from $500 million to $1 billion. Boring was one of two final teams selected to respond to a request for proposals (RFP) issued in March by the Chicago Infrastructure Trust. The RFP was seeking a candidate to design, build, finance, operate and maintain an O’Hare Express service. The city will now begin one-on-one contract negotiations with Boring and present the agreement to the city council. The RFP required bidders to deliver express service from downtown to O’Hare in 20 minutes or less, cutting more than 50 percent off current travel times. Boring plans to reduce the trip even further to 12 minutes by utilizing autonomous “electric skates” that travel 125 …

June 15, 2018

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