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LOS ANGELES — Mack Real Estate Group, Mack Urban and AECOM Capital have formed a new investment partnership with Capri Capital Partners LLC (Capri) for the development of the $144 million multifamily mixed-use project at 1230 South Olive St. and 1231 South Hill St. in the South Park district of downtown Los Angeles. Construction on the two-building property, which will include 362 residential rental units and 4,000 square feet of retail space, began Monday. Construction is scheduled for completion in the first quarter of 2017, with pre-leasing beginning in the fourth quarter of 2016. “This modern apartment project will be a welcome addition to downtown Los Angeles’s South Park neighborhood, and promises to help meet the demand for housing while injecting new life into a formerly underutilized site,” said Ken Lombard, vice chairman of investments and partner with Capri. “We are excited to be investing in one of the most active residential markets in Los Angeles and to play a role in the changing landscape of this diverse community.” The site of the development is one of several in downtown Los Angeles that Mack Real Estate Group, Mack Urban and AECOM Capital acquired in October 2013 for approximately $80 million. …

NEW YORK AND IRVING, TEXAS — American Realty Capital Hospitality Trust Inc. (ARC Hospitality), a non-traded, hotel-focused real estate investment trust (REIT) based in New York, has completed the previously announced acquisition of the Equity Inns Lodging Portfolio. ARC Hospitality purchased the portfolio from subsidiaries of Irving-based W2007 Grace Acquisition I Inc. and WNT Holdings LLC, which are affiliates of the Whitehall Real Estate Funds sponsored by Goldman Sachs. The total purchase price was $1.8 billion, which is the largest purchase by a non-traded REIT, according to Jonathan Mehlman, president and CEO of ARC Hospitality. “The Equity Inns purchase marks the largest acquisition in the history of the non-traded REIT industry, and propels ARC Hospitality into a leadership position among select-service lodging REITs in North America,” says Mehlman. The portfolio consists of 116 hotels totaling 13,744 rooms across 31 states, all franchised by Hilton Hotels & Resorts, Marriott International, Hyatt Hotels or InterContinental Hotels Group. The hotels include brands such as Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place and Holiday Inn. “In our opinion, Equity Inns offers compelling value among recently marketed and comparable select-service portfolios from the standpoint of both price per …

HOUSTON — The 2.4 million-square-foot Houston Galleria shopping center will undergo a $250 million renovation, according to mall owner Simon Property Group (NYSE: SPG). The Galleria is located at 5085 Westheimer Road. The comprehensive renovation is scheduled to begin this spring, though components of it have already begun. The renovation will include a new 200,000-square-foot flagship store for Saks Fifth Avenue. The new store will be located adjacent to Saks’ former location. The mall opened in 1970. The last time the Houston Galleria underwent a renovation/expansion was in 2006. Simon plans to turn the old space into a new multi-level mall extension that will feature 110,000 square feet of space to house 35 new retailers and restaurants. The extension will be anchored by Saks Fifth Avenue on one end and Neiman Marcus on the other. “This project will provide the unprecedented luxury shopping experience that the Houston market craves, with high-profile brands, unique restaurant choices and premiere amenities,” says David Simon, CEO of Simon Property Group. “The new flagship Saks Fifth Avenue will be the cornerstone of this high-end retail opportunity and will continue to anchor the Galleria in an even more impactful way.” Houston Galleria’s luxury wing will also …

PHOENIX — CBRE has negotiated the sale of the Apollo corporate headquarters campus. The complex spans 599,664 square feet and is a Class A, three-building, single-tenant office campus located at 4025, 4035, and 4045 S. Riverpoint Pkwy. The sale price was $183 million. In addition to negotiating the sale, CBRE arranged acquisition financing of behalf of the buyer. Barry Gabel, Chris Marchildon, Kevin Shannon, Ken White and Michael Moore of CBRE represented the seller, American Realty Capital Properties Inc. (ARCP), in the transaction. Crown Properties Inc. represented the buyer, Eric Apollo LLC. CBRE’s debt and structured finance team, including Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart, worked on behalf of the buyer and the lender, Goldman Sachs. “The metropolitan Phoenix investment market continues to post significant benchmarks towards full recovery,” says Gabel. “This property last traded at $283 per square foot in 2011, and this most recent sale marks a 7.6 percent increase at $305 per square foot. Investors recognize momentum in the market and we expect this is just the beginning of an active and healthy 2015.” The Apollo Group headquarters campus is 100 percent leased to Apollo Group Inc., a provider of higher education programs for working …

BETHESDA, MD. — RLJ Lodging Trust (NYSE: RLJ) has sold 24 hotels for $240 million. The sale price represents approximately a 7.9 percent capitalization rate on the hotels’ 2014 net operating income, including planned capital expenditures. The hotels, which were sold through a combination of individual and portfolio sales, were selected based on operating performance, market location, and pending capital requirements relative to RLJ’s long-term investment strategy. For the list of the hotels click here. RLJ Lodging Trust estimates that it saved approximately $65 million of pending capital expenditures through the sale of these assets. The 24 hotels were initially acquired as part of a large portfolio transaction in 2006. “We are very pleased with the execution of our capital recycling program. In total, we have now sold 39 hotels for approximately $370 million over the last 16 months and improved our overall portfolio metrics,” says Thomas Baltimore Jr., president and CEO of RLJ Lodging Trust. “We remain committed to creating long-term shareholder value through enhancing our portfolio’s quality and recycling capital into higher-growth markets.” The 2014 revenue per available room (RevPAR) of the 24 hotels sold was approximately $72, which represents more than a 40 percent discount to the …

NEW YORK — Simone Development Cos. plans to develop a $400 million, nearly 2 million-square-foot, mixed-use center in the Bronx that will feature office, academic and medical space. Simone has partnered with Empire State Development (ESD), New York State’s chief economic development agency, to deliver the project, which will be located on 33 acres on the soon-to-be-vacated, state-owned property located at 1500 Waters Place. The property is near the new planned Metro-North transit station in Morris Park. “This new mixed-use space marks a significant and profound investment in the Bronx,” said New York State Sen. Jeffrey Klein in a press release. “It’s projects like this that are bringing good-paying jobs to the community, creating opportunities for business to thrive and paving the way for future growth and economic success.” The economic impact of the project includes thousands of new permanent jobs, as well as 1,900 construction jobs. In addition to the new office space intended for medical services, the project will include a retail plaza, a 150-room hotel and 100,000 square feet of space for higher education, and will provide community meeting space and new recreational fields and amenities for the Morris Park community. “From medical and retail services, to …