Top Stories

WASHINGTON, D.C. — Global alternative asset manager The Carlyle Group (NASDAQ: CG) has raised $4.2 billion for its seventh U.S. real estate fund, Carlyle Realty Partners VII (CRP VII), reaching the fund’s hard cap. The CRP team of 85 investment professionals focuses on investments across all major real estate sectors and major metropolitan areas in the United States. Nationally, Carlyle has completed more than 500 real estate investments across its seven funds, seeking to identify investments that benefit from strong fundamentals across 11 sectors and 30 markets. Carlyle Realty Partners’ six prior funds have been active in both residential and commercial real estate. In residential, the group has invested in a total of 62,000 housing units, including 42,000 multifamily apartment units and more than 20,000 senior living, student housing and for-sale residential units. CRP has also invested in approximately 41 million square feet of office, industrial, data center and retail, including investments in the San Francisco Bay Area/Silicon Valley, New York City and Washington, D.C. markets. “We believe the robust interest in CRP VII is acknowledgement of our successful focus on opportunistic investments in U.S. real estate, and we look forward to continuing to create value in our portfolio,” says …

LOUISVILLE, Ky. — A joint venture consisting of Griffin-American Healthcare REIT III Inc. and NorthStar Healthcare Income Inc. has agreed to acquire Trilogy Investors LLC, the parent company of Trilogy Health Services LLC, for approximately $1.1 billion. Griffin will own 70 percent of the joint venture while NorthStar will own the remaining 30 percent. Randy Bufford, Trilogy’s founder and CEO, along with other members of Trilogy’s management will maintain an investment of approximately $24 million in the company. Founded in 1997, Louisville-based Trilogy is an owner-operator of 96 seniors housing campuses throughout Indiana, Ohio, Michigan and Kentucky. The portfolio comprises more than 10,000 beds, and most campuses were built or renovated within the past 10 years. Trilogy’s communities offer a range of care, including assisted living, memory care, independent living and skilled nursing services. Griffin and NorthStar are both public, non-traded real estate investment trusts. NorthStar is based in Greenwood Village, Colo., and sponsored by NorthStar Asset Management Group Inc. Griffin is based in Irvine, Calif., and sponsored by American Healthcare Investors and Griffin Capital Corp.

MIAMI — Capital One has closed an $88.7 million refinance of ECI Group Inc. and Harbor Group International’s Shorecrest Club Apartments, a 467-unit, 20-story multifamily project located on the west shore of Biscayne Bay in Miami. Loan proceeds will be used to refinance a syndicated construction loan, also from Capital One, used to build the complex. As with the construction loan that preceded it, 50 percent of the current loan has been syndicated with SunTrust Bank. Capital One served as joint lead arranger, joint book runner and administrative agent for the syndicated loan. With the project still under construction, Capital One issued terms for a takeout loan that would close shortly after construction was completed. Located adjacent to the John F. Kennedy Causeway, the Shorecrest Club offers expansive views of Biscayne Bay, North Miami Beach and Bal Harbor from each of its two towers. Amenities at the complex include a waterfront restaurant, lap and resort pools, cabanas and a sundeck overlooking the bay. ECI Group is a privately owned development, construction, brokerage and management real estate company primarily focused on the multifamily sector. Harbor Group International is a diversified real estate investment and financial services company with a portfolio of …

NEW YORK — Paramount Group Inc. (NYSE: PGRE) has agreed to acquire the remaining 35.8 percent ownership interest in 31 W. 52nd St. in New York City from its joint venture partner for approximately $230 million in cash. The acquisition is expected to be completed in the fourth quarter of 2015. The 29-story, 786,647-square-foot office building is located between Fifth Avenue and Avenue of the Americas in Midtown Manhattan. Paramount Group originally purchased the asset in late 2007 from Hines, Deutsche Bank and RREEF for $595 million, according to media reports. The company declined to name its joint venture partner. “The acquisition of the remaining ownership interest in this distinctive trophy asset offers Paramount an outstanding opportunity to execute on our embedded growth strategy,” says Albert Behler, chairman, CEO and president of Paramount Group. “We believe full ownership of the property is in the best long-term interests of our shareholders, as we continue to focus our efforts on driving NOI [net operating income] growth through strategic and creative leasing and other key initiatives.” The property is currently leased to a number of high-profile tenants including Clifford Chance, Toronto-Dominion Bank, Morgan Stanley, Centerview Partners and an upscale steakhouse, Fogo de Chao. …

BOCA RATON, FLA. — Regency Centers Corp. (NYSE: REG) has acquired University Commons, a 180,323-square-foot grocery-anchored shopping center located in Boca Raton, for $80.5 million. University Commons is fully occupied by tenants including Whole Foods Market, Nordstrom Rack, Barnes & Noble, Bed Bath & Beyond, P.F. Chang’s China Bistro, J. Alexander’s, Mario’s Osteria and Shake Shack. The center, which was developed in 2001, is situated on 22.4 acres at the I-95 interchange at 1400 Glades Road and consists of one primary building with four outparcel buildings and 1,156 parking spaces. “University Commons is a trophy asset that we are extremely excited about,” says Scott Porter, vice president of transactions for Regency Centers. “It’s rare that you find a property with its mixture of fundamental retail drivers.” Daniel Finkle, Luis Castillo and Nat Scarmazzi of HFF worked on behalf of the seller, an entity controlled by Boca Raton-based Schmier & Feurring Properties, in the transaction. “University Commons is one of the premier retail centers in the country,” says Finkle. “Its combination of location, tenancy and design are impeccable and highlighted by the tenants’ outstanding sales performance.” Regency Centers purchased the asset subject to an existing loan. Regency Centers owns, operates and …

CHICAGO — Blackstone Real Estate Partners VIII LP and Strategic Hotels & Resorts Inc. (NYSE: BEE) have entered into a definitive agreement in which Blackstone will acquire all outstanding Strategic common stock, in a transaction totaling approximately $6 billion. Blackstone will acquire the shares in cash at a share price of $14.25. The transaction will also include all outstanding membership units of Strategic’s subsidiary, Strategic Hotels Funding LLC, for the same cash price. “We believe this transaction capitalizes on our unique portfolio, strong asset management platform and continued operating outperformance over the past several years,” said Raymond “Rip” Gellein, chairman and CEO of Strategic Hotels. “The board thoroughly considered various alternatives over the course of the past few years, and this all-cash offer from Blackstone creates significant stockholder value with a high degree of execution certainty.” The transaction is expected to be completed by the first quarter of 2016, and is contingent upon customary closing conditions, including the approval of Strategic Hotel’s stockholders, who will vote on the transaction on a date to be announced. Strategic Hotels’ board of directors has unanimously approved the merger agreement. The offer price represents a premium of approximately 13 percent over the unaffected intra-day …