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NEW YORK — Massey Knakal has arranged the sale of The East Side Elevator Portfolio, consisting of five trophy assets on the east side of Manhattan, for $126 million. Stonestreet Properties sold the portfolio, which features one property in the East Village on 3rd Street and four properties on the Upper East Side and includes a total of 267 units. The properties were sold in two separate transactions. Trevi Retail purchased the four Upper East Side properties and buyers Nader and Lisa Shalom purchased the 3rd Street property. “The multifamily sector has always been the most active in the city, and today is no different. The interest in these properties was from every corner of the globe and from a widespread array of buyer types,” says Bob Knakal, chairman of Massey Knakal. Thomas Gammino Jr., Guthrie Garvin, Michael DeCheser and Knakal exclusively handled the transactions. The portfolio consists of 264 residential units, two commercial units, and one professional unit totaling approximately 144,043 square feet. Of the 264 units, 196 are fair market while 68 are rent stabilized. The unit mix consists of 59 studios, 152 one-bedrooms, 28 two-bedrooms, 19 three-bedrooms, and six four-bedrooms. The properties represent some of the most …

NEW YORK — Paramount Group Inc. (NYSE: PGRE), which specializes in owning and managing office properties in major markets, has completed its initial public offering of nearly 150.6 million shares of its common stock at a public offering price of $17.50 per share. The IPO has resulted in gross proceeds of $2.6 billion. The offering is the largest IPO ever for a U.S. real estate investment trust, according to Bloomberg, exceeding Douglas Emmett Inc.’s IPO in 2006, which raised $1.6 billion. According to Bloomberg, the shares climbed 3.9 percent to $18.18 on their first day of trading (Nov. 19) after the company sold them for $17.50 each. The IPO includes the full exercise of the underwriters’ option to purchase an additional 19.6 million shares of common stock. New York-based Paramount intends to use the net proceeds from the offering of $2.6 billion, after deducting underwriting discounts, commissions and offering expenses, to repay outstanding indebtedness and any applicable prepayment costs, exit fees, defeasance costs and settlement of interest rate swap liabilities associated with such repayment, as well as pay cash consideration in connection with its formation transactions. The company expects to use any remaining net proceeds for general corporate purposes, capital …

MILWAUKEE — Physicians Realty Trust (NYSE: DOC), a self-managed healthcare REIT based in Milwaukee, has entered into four separate purchase agreements in Georgia, Alabama, Washington, New York and Illinois totaling $123.2 million. In the Southeast, the REIT has partially closed on the purchase of a 309,865-square-foot portfolio of 13 medical office buildings for $34.5 million. Known as the Columbus Regional Medical Office Portfolio, 12 of the properties are located in Columbus, Ga., and one is located in Phenix City, Ala. The portfolio is 88 percent occupied, and 11 of the 13 properties are located adjacent to the 413-bed Columbus Regional Medical Center (CRMC) and the 219-bed Doctors Hospital, two of Columbus Regional Healthcare System’s (CRHS) short-term acute care hospitals. The portfolio features a mix of healthcare providers anchored by physician practice groups that are affiliated with CRHS and the Columbus Clinic. As part of the transaction, the CRHS-related leases totaling 45 percent of the overall portfolio’s base rental revenue have been renegotiated and extended to 10-year lease terms. Physicians Realty Trust has closed on 12 of the 13 buildings, with the final building expected to close by the end of 2014. “We are pleased to have the opportunity to work …

LOS ANGELES — Pebblebrook Hotel Trust (NYSE: PEB) has acquired the 264-room Hotel Palomar Los Angeles – Westwood for $78.7 million. The full-service boutique hotel is located at 10740 Wilshire Blvd. in the Los Angeles submarket of Westwood. The seller was undisclosed. The hotel is situated near the University of California, Los Angeles (UCLA), the Wilshire Corridor, and Westwood Village’s many shopping, dining and entertainment options. “The hotel is ideally located at the corner of Wilshire Boulevard and Selby Avenue, with proximity to all of the major motion picture studios, prominent dining, retail and museums and the Wilshire Corridor, which contains some of the highest-quality residential and office space in Los Angeles,” says Jon Bortz, Pebblebrook’s chairman, president and CEO. “The healthy economic environment in the West Los Angeles market, which has benefitted from increased international inbound travel, provides excellent long-term operating fundamentals for the hotel.” Hotel amenities include a 40-foot outdoor pool and deck with poolside food and beverage service, a fitness center, a five-story, 435-space parking garage with valet parking, a 24-hour business center and in-room spa services. It also contains eight meeting rooms with more than 5,000 square feet of flexible meeting space. The property’s signature dining …

KANSAS CITY — Carey Watermark Investors Inc., a non-traded REIT, has acquired the Kansas City Marriott Country Club Plaza for $57 million. The hotel is located in the Country Club Plaza, a 55-acre, 15-block shopping district located four miles from downtown Kansas City and comprised of 150 retail establishments, restaurants and entertainment venues. The University of Missouri-Kansas City is also nearby. According to the Kansas City Star, the seller was an affiliate of Noble Investment Group. Country Club Plaza has experienced a cumulative average growth rate in revenue per available room (RevPAR) of 4.4 percent since 2009. Planned improvements to the property include updates to food and beverage outlets, meeting spaces and the hotel’s exterior. The hotel will also implement Marriott Hotels’ signature “Greatroom” lobby concept, which features modern lobby space for guests to use. Along with the $57 million purchase, CWI invested $15 million in other acquisition-related costs and planned capital expenditures, bringing the total price to $71.5 million. The acquisition was financed with $38.5 million in debt. The hotel will continue to be managed by Interstate Hotels & Resorts. The 19-story hotel includes 295 rooms, 16,000 square feet of meeting space, three food and beverage outlets, a fitness …

NEW YORK — TIAA-CREF has acquired 21 Penn Plaza, a prime midtown Manhattan office property, from a joint venture between Savanna and the Feil Organization. The purchase price was undisclosed, but Crain’s New York Business reported the asking price for the property was $250 million in July. Situated on the southeast corner of W. 31st St. and 9th Avenue, 21 Penn Plaza is adjacent to Manhattan’s newest neighborhood, the Hudson Yards District. The 16-story, 380,000-square-foot property is within the epicenter of the $27 billion of investment currently underway on Manhattan’s far west side. “We believe this property is well positioned to take advantage of the rapid changes and revitalization happening in Midtown West,” says Henry Dong, senior director of global real estate for TIAA-CREF. “Rents are on the upswing in the area and we see that trend continuing. The massive redevelopment of the neighborhood should make it a destination for employers, tourists, shoppers and new residents.” Following an investment of close to $5 million in building upgrades, including new lobbies, entrances and mechanical systems, Savanna and the Feil Organization successfully leased more than 225,000 square feet of space to restabilize the property at 98 percent occupancy prior to marketing the …

NEW YORK — HFF has arranged $85 million in financing for a mixed-use portfolio encompassing 19,409 square feet of retail and 82 residential rental units in New York’s Meatpacking District. HFF worked exclusively on behalf of the borrower, a joint venture between Tavros Holdings LLC and Arel Capital, to secure the floating-rate loan through Blackstone Mortgage Trust. Loan proceeds were used to acquire the property. The portfolio is situated on an 18,453-square-foot lot at the corner of West 14th Street and Ninth Avenue near Chelsea Market, High Line Park, Google’s New York headquarters, the new Whitney Museum and Hudson Yards.  The residential component of the property is 100 percent leased and is comprised of three buildings containing a total of 59 studio, 18 one-bedroom and five two-bedroom units. The retail component is leased to tenants such as Scarpetta, The Diner, Le Pain Quotidien, L’Occitane and Solstice Sunglasses. More than 200 feet of total retail street frontage faces the triangular Ninth Avenue Public Plaza, a notable pedestrian space created in the middle of Ninth Avenue. The portfolio also includes available development rights along West 15th Street. HFF managing director Steven Klein and director Jennifer Keller led the team representing the borrower. …

BOSTON — Berkshire Group, WS Development and Boston Global Investors (BGI) have begun construction on One Seaport Square, a three-acre mixed-use development located within the 23-acre Seaport Square. Seaport Square is the largest master-planned project in the city of Boston. According to The Boston Globe, One Seaport Square’s development costs will total roughly $600 million. Upon completion, which is expected in 2017, the development will include two residential towers, named The Benjamin and VIA, constructed above 250,000 square feet of retail space across the towers’ first three floors. “In our view, the Seaport District is an important growth area in Boston with its emphasis on residential, retail and commercial space all in one neighborhood,” says Steve Wood, partner and head of development of Berkshire Group. “With companies moving into the area and creating new employment opportunities, we expect Seaport Square will attract residents who desire urban living in the Seaport District in close proximity to both professional and entertainment options.” Berkshire Group has partnered with BGI to own and develop the residential component of Seaport Square. WS Development will develop, own and manage the retail component of Seaport Square. One Seaport Square is bordered by Seaport Boulevard, Northern Avenue, Fan …

MIAMI — Property Markets Group has acquired the Empire World Towers site, a two-acre development site in Miami’s urban core, for $80 million. The site is located downtown at 300-330 Biscayne Blvd. The Empire World Towers site is approved for two 93-story towers that can contain 1,557 residential units. The mixed-use towers are also approved for 24,741 square feet of retail space and 3,317 square feet of office space. Upon completion, the towers would be the East Coast’s tallest structure south of Manhattan. The development is situated directly across from Bayfront Park. The Empire World Towers enjoy permanently preserved bay and ocean views. The project will be within walking distance to American Airlines Arena, Miami Dade College, Bayside Marketplace and the 765,000-square-foot Miami World Center Mall, which will soon be developed. Luis Flores and Rebecca Sarelson of Arnstein & Lehr LLP represented Property Markets Group in the transaction. The seller, a trust established for the benefit of CDR Creances S.A.S., was represented by HFF’s Jaret Turkell, Hermen Rodriguez, Manuel de Zárraga and Scott Wadler. Marcos Daniel Jiménez and Gregg Fierman of McDermott, Will & Emery represented CDR in the sale and litigation. “This transaction is highly significant in that it …

CORAL GABLES, FLA. — Pebblebrook Hotel Trust (NYSE: PEB) has acquired The Westin Colonnade Coral Gables for $59.4 million. The 157-room hotel is located in Miami on Miracle Mile in the heart of Coral Gables, a suburb of Miami. The hotel will continue to be operated by Davidson Hotels and Resorts. “We’re excited about the acquisition of The Westin Colonnade Coral Gables and the ability to further expand our presence in Miami, one of the fastest growing markets in the country,” says Jon Bortz, chairman and CEO of Pebblebrook. “This hotel is our second hotel investment in Miami and our first in the Coral Gables submarket. The property’s excellent location in this affluent and dynamic market makes the hotel a leader among its competitors, and its upside opportunity makes it an excellent addition to our high-quality portfolio.” The hotel is located in the Coral Gables commercial district, just south of downtown Miami. It is located near Merrick Park, Miami Marlins Park, the University of Miami, Coral Gables Museum, golf courses and abundant shopping. The hotel’s location is also near corporate tenants including Club Med, ExxonMobil, IBM, Bacardi, Intelsat and Del Monte Fresh Produce. The immediate area includes 140 gourmet restaurants, …