Top Stories

OAK BROOK, ILL. — Inland American Real Estate Trust Inc. has announced its plan to spin off a significant portion of its lodging portfolio into a standalone, publicly traded company to be called Xenia Hotels & Resorts Inc. The new real estate investment trust (REIT) intends to list its shares of common stock on the New York Stock Exchange (NYSE) under the symbol “XHR.” Xenia Hotels & Resorts was formerly known as Inland American Lodging Group Inc. Upon completion of the proposed spin-off, Xenia will be headquartered in Orlando, Fla., and focus solely on the lodging sector. It is expected to own 46 hotels, comprising 12,636 rooms, across 19 states and the District of Columbia, and a majority interest in two hotels under development. Xenia will own and continue to invest primarily in premium full-service, lifestyle and urban upscale hotels in the top 25 U.S. lodging markets throughout the United States, focusing on urban and densely populated suburban markets with multiple demand generators and high barriers to entry. The company’s portfolio will include premium brands such as Marriott, Hilton, Hyatt, Starwood, Kimpton, Aston, Fairmont and Loews. “We are pleased to announce our intent to spin off Xenia Hotels & Resorts …

GLOUCESTER TOWNSHIP, N.J. — The popularity of outlet malls shows no signs of abating. Retail real estate giant Simon Property Group (NYSE: SPG) broke ground Thursday on Gloucester Premium Outlets in Gloucester Township. Slated to open in the summer of 2015, the multi-million dollar project will offer a diverse mix of more than 80 retailers “delivering great brands at extraordinary savings,” according to the company. Leaders from Simon and several political dignitaries commemorated the project with an official groundbreaking ceremony on Thursday morning for the 375,000-square-foot property. The dignitaries included Gloucester Township Mayor David Mayer and New Jersey State Senators Donald Norcross and Fred Madden. Gloucester Premium Outlets is a joint venture between Simon and PREIT-Rubin Inc., and will be developed and managed by Simon. The outlets will be located at the intersection of Robert Kelly Drive and Cooper Road in Blackwood, an unincorporated community within Gloucester Township. When completed, the outlet center will complement the other Simon Premium Outlets located in Limerick, Pa., sharing the greater Philadelphia market. The outlet center will feature designer and name brands at savings of 25 percent to 65 percent. With the center's proximity to both the Atlantic City Expressway and the Black Horse …

NEW YORK — A wholly owned subsidiary of Hyatt Hotels Corp. (NYSE:H) has acquired 100 percent of the 210-room Park Hyatt New York for $390 million. Park Hyatt New York is expected to open later this month. Located between 6th and 7th Avenues on West 57th Street in Manhattan, the hotel is within walking distance of Central Park and Carnegie Hall. “With its prominent location in one of the world’s most important markets and its elegant aesthetic, Park Hyatt New York will have a meaningful impact on the visibility and reputation of the Park Hyatt brand,” says Steve Haggerty, global head of capital strategy, franchising and select service for Hyatt Hotels Corp. “Park Hyatt New York is an excellent example of Hyatt using the strength of its balance sheet to enter markets like New York that have high barriers to entry. Acquiring whole ownership of the hotel gives us the flexibility to recycle the asset at the appropriate time,” adds Haggerty. Located within the 90-story glass tower that also houses One57, a luxury condominium residential development, the hotel was designed by Pritzker Prize-winning architect Christian de Portzamparc and developed by Extell Development Co. Yabu Pushelberg provided interior design for the …

SAN FRANCISCO­ ­— HFF (NYSE: HF) has arranged $480 million in construction financing for the development of a Class A office and luxury condominium in downtown San Francisco. HFF secured the loan for Jay Paul Co., a West Coast-based real estate development firm, through Starwood Property Trust. The LEED Platinum-certified, fully entitled property is located at 181 Fremont St. in the South Financial District. HFF brokered the sale of the asset in 2013 for an undisclosed amount. Jay Paul began construction on the tower shortly thereafter. The site is situated on approximately one-third of an acre and is connected to the new business district known as Transit Center District. Upon completion, the 55-story, mixed-use property will rise 802 feet and will be the tallest office and residential tower on the West Coast. The project features a state-of-the-art exoskeleton design with efficient column-free floor plates, panoramic city and bay views, and a direct connection via sky-bridge to the Transbay Transit Center’s 5.4-acre rooftop city park. Peter Smyslowski, Chris Gandy, Walter Chui and Brandon Roth of HFF led the debt placement team. “It was a privilege to play a small part in the development of what will be one of the most …

NEW YORK — The boards of directors of NorthStar Realty Finance Corp. (NYSE: NRF) and Griffin-American Healthcare REIT II Inc. have unanimously approved a definitive merger agreement under which NorthStar Realty will acquire all of the outstanding shares of Griffin-American in a stock and cash transaction valued at $4 billion, including approximately $600 million of debt. “We set out to build a premium portfolio of diversified healthcare real estate in order to provide investors with an opportunity to realize a compelling return on their investment,” says Jeff Hanson, chairman and CEO of Griffin-American. “With this transaction, we have executed on our strategy, validating our investment thesis and delivering a strong result for stockholders.” Griffin-American’s portfolio is comprised of predominantly medical office buildings (43 percent) and seniors housing facilities (30 percent) in the United States and the United Kingdom, and is being acquired at an approximate 6.4 percent capitalization rate. Subject to the terms and conditions of the merger agreement, Griffin-American stockholders will receive $11.50 per Griffin-American share, comprised of $7.75 per share in cash and $3.75 per share in NorthStar Realty common stock. The stock portion will be subject to a collar so that Griffin-American shareholders will receive 0.1859 NorthStar …

FAIRFAX, VA. — Grosvenor Americas, a privately owned commercial property investor and developer, has purchased Avalon Fair Oaks, a 491-unit apartment community in Fairfax, for $108.2 million. The asset is located on 13.5 acres at the corner of West Ox Road and Monument Drive in the Washington, D.C., suburb. “This acquisition expands our residential investment portfolio across the U.S. It fits well with our strategic objective to acquire value-add apartments in strong markets within the Washington, D.C., region, where we continue to seek additional opportunities,” says Scott Brody, senior vice president and general manager of Grosvenor Americas. After renaming the community Wheelhouse of Fair Oaks, the new ownership plans to undertake significant renovations that include upgrades to interior home finishings, the fitness club, leasing office and other public spaces. Grosvenor Americas has tapped Thrive Communities Inc. to oversee renovations, leasing, property management and rebranding for the apartment community. Built in 1987, Avalon Fair Oaks features a swimming pool and sundeck, clubhouse with free Wi-Fi, picnic area, 24-hour fitness center, tennis court, racquetball court and structured parking. In addition to the new multifamily community, Grosvenor’s portfolio includes office, retail and hotel space in the Washington, D.C., metropolitan area. The company is …

HENDERSON, NEV. — A joint venture between the Bascom Group and funds managed by Oaktree Capital Management has acquired The Edge at Traverse Point, a 296-unit apartment community in Henderson for $250 million. The Class A community is located at 1131 Wigwam Parkway in the Las Vegas suburb. The property was built in 2013. It contains a mix of one-, two- and three-bedroom units, though more than half the units come with two bedrooms. Community amenities include a clubhouse, resort-style pool with cabanas, café, business center, and 24-hour fitness center with towel and water service. “The Edge is a high-quality community located in one the best submarkets in Las Vegas,” says Tim Whiting, Bascom’s senior vice president of operations. “We plan to make upgrades to the common areas and interiors to make it best-in-class in its submarket.” Major employers in the area include Zappos, St. Rose Dominican Hospital, Ocean Spray and WinCo Foods, not to mention the casinos, hotels and services located on the Las Vegas Strip, about 15 minutes from The Edge. This is the second multifamily acquisition the JV has closed in the past month. It also acquired The Springs Apartments, a 320-unit, garden-style community in Corona, Calif., …

CHICAGO — The University of Chicago has sold the mixed-use development Harper Court to Clal Insurance Co. and its affiliated companies, for $112 million. The city of Chicago approved the transaction, which closed on July 25. Developed in partnership with the University of Chicago and the City of Chicago, Harper Court is a two-phase, 1.1 million square foot mixed-use development located at 53rd Street and Lake Park Avenue in Chicago's Hyde Park neighborhood. As part of the transaction, the University signed a long-term master lease for all office retail and parking space in Harper Court and will sublease space to the other current and future tenants. Tenants in Harper Court include the University of Chicago, LA Fitness, Starbucks, Chipotle and others. The University and the city, in consultation with residents and local leaders, launched the Harper Court project in 2008. After its completion in November 2013, University officials announced that they intended to seek a long-term owner for Harper Court that would support the community amenities and economic opportunities that motivated the development. Clal is a publicly traded insurance company and pension fund manager. The Israel-based financial institution has more than $40 billion in assets under management. — Danielle Everson

CHARLOTTE, N.C. — Cousins Properties Inc. (NYSE: CUZ) is under contract to buy Fifth Third Center in Charlotte for $215 million from Parmenter Realty Partners. The 30-story, 697,817-square-foot building is located at 201 N. Tryon St. in uptown Charlotte and was purchased by Parmenter Realty Fund IV in 2012. Will Yowell, Jay O’Meara and Patrick Gildea from CBRE represented Parmenter in the sale. “Fifth Third Center is a premier and iconic asset and was a solid performer in Parmenter Fund IV,” says Darryl Parmenter, chairman and chief executive officer of Parmenter Realty Partners. “We accelerated our business plan at the property and felt the time was right to sell. This will be the second asset from Parmenter Realty Fund IV that we have sold.” Parmenter made cosmetic improvements to the building and courtyard, renovated the main lobby, upgraded the elevators and mechanical systems and recommissioned the building’s energy management system. The building has been named one of the top three energy saving buildings for 2013 in Duke Energy’s Smart Energy Now program. Parmenter Realty Partners is a real estate investment, management and development firm headquartered in Miami with regional offices in Dallas, Atlanta and Washington D.C. For more information, visit …

CHICAGO — The University of Chicago has sold the mixed-use development Harper Court to Clal Insurance Co. and its affiliated companies for $112 million. The city of Chicago approved the transaction, which closed on July 25. Developed in partnership with the University of Chicago and the City of Chicago, Harper Court is a two-phase, 1.1 million square foot mixed-use development located at 53rd Street and Lake Park Avenue in Chicago's Hyde Park neighborhood. As part of the transaction, the University signed a long-term master lease for all office retail and parking space in Harper Court and will sublease space to the other current and future tenants. Tenants in Harper Court include the University of Chicago, LA Fitness, Starbucks, Chipotle and others. The University and the city, in consultation with residents and local leaders, launched the Harper Court project in 2008. After its completion in November 2013, University officials announced that they intended to seek a long-term owner for Harper Court that would support the community amenities and economic opportunities that motivated the development. Clal is a publicly traded insurance company and pension fund manager. The Israel-based financial institution has more than $40 billion in assets under management. — Danielle Everson