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SAN FRANCISCO AND NEW YORK — Prologis Inc. (NYSE: PLD), a global owner and developer of industrial real estate, has signed definitive agreements to acquire the real estate assets and operating platform of KTR Capital Partners (KTR) and its affiliates for a total purchase price of $5.9 billion. Prologis has obtained a commitment from Morgan Stanley Senior Funding Inc. to provide a $1 billion bridge loan for the transaction. The 60 million-square-foot operating portfolio comprises 322 industrial properties in markets such as Southern California, New Jersey, Chicago, South Florida, Seattle and Dallas. The acquisition also includes 3.6 million square feet of industrial properties that are currently under construction and a well-located land bank with a build-out potential of 6.8 million square feet. The properties comprise KTR’s three co-investment funds and will be acquired by Prologis U.S. Logistics Venture (USLV), a 55-45 consolidated joint venture with Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global. “It is rare to have the opportunity to acquire a portfolio of such high asset quality, customer profile and market composition that is so consistent with our own,” says Hamid Moghadam, chairman and CEO of Prologis. “I have known KTR’s leadership for …

PHILADELPHIA — Pennsylvania Real Estate Investment Trust (PREIT) (NYSE: PEI) and The Macerich Co. (NYSE: MAC) have reached a tentative agreement with the city of Philadelphia on a redevelopment and rebranding of The Gallery shopping mall and transit center in Philadelphia’s Center City district. If approved by Philadelphia City Council, the Philadelphia School Reform Commission and the Philadelphia Redevelopment Authority, The Gallery will be rebranded as the Fashion Outlets of Philadelphia at Market East following a two-year renovation that will open the site to Market Street. “We believe that the proposed redevelopment will position The Gallery as the next great urban marketplace in the United States, capitalizing on its central location where mass transit, tourism, the residential population and employment bases converge,” says Joseph Coradino, CEO of PREIT. “The redeveloped property will become the foundation of a new, vibrant Market East District, and we are excited to lead this effort.” The project will offer a combination of outlet retail in the form of luxury and moderate brands, traditional mall retail, flagship retail, artisanal food experiences and entertainment offerings. “The exciting plans for The Gallery are a strong strategic fit for Macerich’s proven redevelopment expertise, our leadership in the growing outlet sector and …

PHILADELPHIA — Tutor Perini Building Corp., a subsidiary of Tutor Perini Corp. (NYSE: TPC), has been awarded a contract to build the first phase of the East Market redevelopment project for National Real Estate Development in Philadelphia. The initial contract, which includes demolition and abatement, is valued at approximately $5.5 million and is currently underway. The construction phase of the contract, which will follow, is valued at approximately $112 million. The mixed-use development is located in Center City Philadelphia. At full build-out, Phase I of East Market will include an 18-story, 500,000-square-foot mixed-use complex that will encompass the entire city block between Market and Ludlow, 11th and 12th streets. “We’re pleased to be building again for this owner and proud to be making our contribution to the growth and revitalization of Girard Square,” says Peter Sukalo, executive vice president of Tutor Perini Building Corp.’s Philadelphia office. East Market will feature a 16-story, 322-unit apartment building spanning 230,000-square feet, a 19,000-square-foot amenity level, and an outdoor deck above a two-story, 105,000 square-foot split retail podium. In addition, the property will include 114,000 square feet of parking. National Real Estate Advisors, JOSS Realty Partners LLC, Young Capital LLC, and SSH Real Estate …

HOFFMAN ESTATES, ILL. AND INDIANAPOLIS — Sears Holdings Corp. and Simon Property Group Inc. have created a 50/50 joint venture valued at $228 million whereby Sears will sell and lease back several of its stores in Simon-owned malls. Sears Holdings has contributed 10 properties, including properties leased to outside parties, in exchange for $114 million in cash and a 50 percent interest in the joint venture. The deal is similar to the $330 million joint venture agreement that Sears Holdings Corp. and General Growth Properties announced on April 1. Sears Holdings (NASDAQ: SHLD) will subsequently lease back and operate the existing Sears Holdings stores at those malls. The triple-net master lease agreements have a 10-year initial term and two five-year renewal options. Sears Holdings expects to pay initial base rent of $13.4 million under the master lease. “We are pleased to reach this agreement with Simon Property Group, which is an important step in Sears Holdings’ continued transformation to a membership company, without the significant asset intensity of its traditional retail business,” says Edward Lampert, chairman and CEO of Sears Holdings. “This transaction, taken together with our other initiatives to create shareholder value through our vast real estate portfolio, enhances …

NEW YORK AND SAN FRANCISCO — Blackstone and Wells Fargo Co. have signed agreements to purchase most of the assets of GE Capital Real Estate in a transaction valued at approximately $23 billion. The transaction breaks down as follows: – Wells Fargo has agreed to purchase performing first mortgage commercial real estate loans valued at $9 billion in the United States, UK and Canada. – Blackstone’s latest flagship global real estate fund, BREP VIII, has agreed to purchase the US equity assets for $3.3 billion. These assets are primarily office properties in Southern California, Seattle and Chicago. – Blackstone’s European real estate fund, BREP Europe IV, has agreed to purchase the European equity real estate assets, for €1.9 billion. These consist of office, logistics and retail assets, largely in the UK, France and Spain. The logistics assets will be integrated into Blackstone’s European logistics platform, Logicor, and the retail assets into its European retail platform, Multi. – BREDS, Blackstone’s real estate debt fund, has agreed to purchase performing first mortgage loans in Mexico and Australia for $4.2 billion. – BXMT, Blackstone’s publicly traded commercial mortgage REIT, has agreed to purchase a $4.6 billion portfolio of first mortgage loans primarily in …

CARROLLTON, OHIO — Advanced Power, the Swiss energy giant, has secured $899 million in financing for a power plant in northeast Ohio set to begin operations in late 2017. TIAA-CREF, Chubu Electric Power Co., Ullico and Prudential Capital Group are providing $411 million in equity commitments, while BNP Paribas, Credit Agricole and eight other commercial banks are providing $488 million in senior secured credit facilities for construction of the Carroll County Energy plant. The 700-megawatt plant will sell energy, capacity and ancillary services into all or part of 13 states in the eastern U.S., along with the District of Columbia. It will be powered by natural gas from eastern Ohio’s Utica Shale and could provide electricity to 750,000 homes. Plans for the project were first announced in July 2013 and site work has already begun. The facility will feature two General Electric 7F.05 gas turbines and a D602 steam turbine, which has the capacity to generate electricity for approximately 750,000 homes. Bechtel Corp. is building the project under a turnkey construction contract. EthosEnergy will operate the facility and Advanced Power will remain as the construction and asset manager. The new plant will be near Kinder Morgan’s Tennessee Gas Pipeline plus American Electric …