Top Stories

BUFFALO, N.Y. — Sovran Self Storage Inc. (NYSE: SSS), a self storage real estate investment trust (REIT), has acquired seven self storage facilities in five separate transactions for a combined purchase price of $98.7 million. The properties total more than 575,000 square feet of rental space. Sovran Self Storage funded the acquisitions through advances on the company’s line of credit, proceeds from the sale of several properties and through the company’s at-the-market (ATM) stock offering program, a form of equity raise. Five properties were acquired during the fourth quarter of 2013 for a combined purchase price of $44.7 million and are all located in markets where the company already has a presence — one each in Connecticut, Texas and southeast Florida, and two in New Jersey. Early this year, the company purchased two additional facilities located in southeast Florida for a combined purchase price of $54 million. The newly acquired properties provide an upscale mix of amenities that include climate-controlled storage spaces, wireless Internet, as well as record and wine storage. All of the storage facilities will be rebranded under the Uncle Bob’s Self Storagename and fully integrated into the company’s operating platforms. “We are pleased to add these modern, …

DENVER — A joint venture between full-service real estate company Vestar and a fund advised by UBS Global Asset Management has acquired the Orchard Town Center retail development in the Denver suburb of Westminster for $123.5 million. The 914,000-square-foot, open-air property is anchored by national brands such as Super Target, JC Penney, Macy’s, AMC Theatres and REI. The acquisition marks Vestar’s entry into the Denver market. In the past 30 months, the company has purchased more than $1 billion in retail centers nationwide. “We are very bullish about these types of value-add opportunities and are aggressively seeking more properties like it in Denver and throughout the West,” says Ryan Desmond, director of acquisitions and development at Vestar. Forest City Enterprises Inc. was the seller in the all-cash transaction. The center, which was 89 percent leased at the time of the sale, is located on the northwest corner of Interstate 25 and 144th Avenue. Besides the aforementioned stores, tenants such as Forever 21, Chico’s, Victoria’s Secret, Eddie Bauer and Old Navy also occupy space at the property. Designed to replicate the atmosphere of a town square, the development features tree-lined paths bordered by restaurant, entertainment and specialty venues. “Orchard Town Center …

EWA BEACH, HAWAII — Terramar Retail Centers has purchased the Laulani Village Shopping Center, a newly developed, 223,000-square-foot neighborhood retail center in Ewa Beach in Oahu, for $99.5 million. Terramar, a privately held commercial real estate investment, management and development firm, purchased the asset from Property Development Centers, a subsidiary of Safeway Inc. “This is a strategic, high-quality addition to Terramar’s retail portfolio. Grocery-anchored retail centers like Laulani Village are solid, long-term performers and a top target for Terramar Retail Centers as we continue an aggressive expansion of our portfolio,” says Steve Bowers, president and CEO of Terramar Retail Centers. “The Ewa Beach area is experiencing prolific growth and the center has a dominant location with leading retailers in a region with very strong demographics and a large customer base.” A 60,000-square-foot Safeway anchors Laulani Village, which also features a 33,000-square-foot City Mill hardware store and 35 shops and restaurants, including Petco, Ross Dress for Less, Walgreens, Starbucks Coffee, Panda Express and Teddy’s Bigger Burger. Safeway and City Mill opened in 2012, while the remaining stores opened in 2013. The center is currently 89 percent occupied with additional stores to be completed and opened this year. Located on approximately 20 …

BLUFFTON, S.C. — Crescent Communities will invest $100 million to expand the Inn at Palmetto Bluff, a hotel on the South Carolina waterfront in Bluffton. The expansion will add 150 rooms to the property’s 50 individual cottages. The addition will also include a new spa, fitness center, meeting rooms, special event facilities and expanded dining facilities. Hotel management company Montage Hotels & Resorts will become the new operator of the expanded inn, effective Feb. 1. The property will then be rebranded as The Inn at Palmetto Bluff, a Montage Resort. “Crescent is thrilled to announce this significant investment to consecrate Palmetto Bluff as the quintessential southern experience,” says Todd Mansfield, CEO of Charlotte, N.C.-based Crescent Communities. “This expansion, along with Montage’s strong record of delivering extraordinary guest service, will enable Palmetto Bluff to continue providing award-winning hospitality while maintaining the original vision of this special place.” Phoenix-based The Athens Group will serve as development partner and manage the expansion. The design team includes Hart Howerton, HKS Hill Glazier Studio and Wilson Associates. The expansion and resulting growth in the surrounding community will have an economic impact of more than $500 million during the next 10 years, according to Crescent. Founded …

MALVERN, PA. — Liberty Property Trust (NYSE: LRY) has sold a 49-property office and industrial portfolio for $367.7 million. Greenfield Real Estate LLC purchased the properties, which are located in Jacksonville, Fla., Fort Washington, Pa., and Minnesota. The properties comprise approximately 140 acres and 4 million rentable square feet, including 1.9 million square feet of office space, 1.8 million square feet of industrial space and 274,000 square feet of flex space. This sale is part of a previously announced transaction in which Greenfield Real Estate is purchasing 97 total properties from Liberty for an aggregate $697.3 million. The 32 properties located in Jacksonville, which represent all of Liberty’s holdings in the market, total more than 2.1 million square feet. This portion of the portfolio includes the Executive Park and Liberty Business Park developments as well as 4190 Belfort Road, a four-story, 120,000-square-foot asset. The five properties in Fort Washington, which is a northern suburb of Philadelphia, total nearly 1 million square feet. This portion of the portfolio includes 1100 Virginia Drive, a 753,607-square-foot asset in Fort Washington Office Park. The 12 properties in Minnesota, which total approximately 916,000 square feet, are located in the Minneapolis suburbs of Oakdale, Plymouth, Eden …

CHICAGO — Carey Watermark Investors Inc. (CWI), a New York-based, non-traded REIT, has acquired a 553-room, full-service hotel in downtown Chicago for $139 million. CWI purchased the Renaissance Chicago Downtown Hotel, which is located at 1 W. Wacker Drive across from the Chicago River, from the Royal Bank of Scotland Group PLC. The bank repossessed the property last year from Chicago-based private equity firm Walton Street Capital LLC, which owed $175 million in debt, according to Chicago Real Estate Daily. “Given an attractive purchase price, the growing Chicago market, and what we anticipate will be the positive impact of our planned capital improvements over the next two years, we believe that the investment will generate solid risk-adjusted returns for our investors,” says Michael Medzigian, CEO of CWI. The purchase price also includes an additional $27 million for renovations and other acquisition-related costs. The acquisition was financed with $90 million of debt. Constructed in 1991, the 533,323-square-foot hotel features 35,000 square feet of meeting space and 7,800 square feet of retail space. The Renaissance Chicago Downtown Hotel also includes an indoor pool and whirlpool, full-service spa, fitness and business centers and three food and beverage outlets — Great Street Restaurant, Bar …

GERMANTOWN, MD. — Developer Wood Partners has broken ground on Alta Liberty Mill, a $60 million multifamily community in the Washington, D.C., suburb of Germantown, Md. The 304-unit apartment complex will also include 11,900 square feet of retail space. Designed by Poole & Poole Architecture, the property will be located on 8.5 acres on Waters Road, directly across from the Germantown MARC commuter rail station. The three LEED-certified, five-story buildings will be accompanied by 454 surface parking spaces. Wood Partners expects leasing to begin in the fall of 2014 and the complex to be completed by fall of 2015. “This transit-oriented community will be far superior to anything available at comparable rental projects in the immediate submarket,” says Scott Zimmerly, director of the Mid-Atlantic region of Wood Partners. “Alta Liberty Mill is ideally located in rapidly developing Montgomery County, the third-largest biotechnology center in the United States.” The property will offer studio, one-, two- and three-bedroom layouts averaging 939 square feet. Thirty-eight of the units will be Moderately Priced Dwelling Units, leased at no more than 65 percent of the median income for the Washington, D.C., metropolitan statistical area, while the remaining units will be leased at market rate. Apartment …

MIAMI — The Related Group and Plaza Construction have broken ground on Icon Bay, a $118 million waterfront condominium property in Miami’s Biscayne Corridor. Architect Arquitectonica designed the 42-story, 750,000-square-foot building. Icon Bay will include 299 residences plus amenities such as a waterfront pool deck and infinity pool, fitness center, spa, clubroom, bay-front park and tennis courts. Floor plans range from one-bedroom units totaling 1,129 square feet to three-bedroom penthouse units totaling 3,038 square feet. The property is slated for completion in the first quarter of 2015. Interior elements include private elevator access, floor-to-ceiling windows, 9-foot ceilings on typical floors and 11-foot ceilings in penthouses. Kitchens feature European cabinetry, stone counters, stainless steel appliances and imported porcelain tile flooring, while bathrooms feature full-size mirrors, soaking tubs and glass-enclosed showers. Located at 460 N.E. 28th St., Icon Bay is in close proximity to the Wynwood Arts District, known for its galleries, gourmet food trucks and music scene. The property also offers easy access to the Midtown/Miami Design District, which features high-end retailers such as Armani Casa, Baltus and Ligne Roset. Nearby attractions include The Arsht Center for the Performing Arts, Miami Art Museum and sites of future projects Resorts World Miami …

CHICAGO — KBS Real Estate Investment Trust III (KBS REIT III), a public non-traded REIT based in Newport Beach, Calif., has closed on the purchase of 500 West Madison, an iconic, 1.5 million-square-foot mixed-use tower in Chicago, for $425 million plus closing costs. The purchase is KBS REIT III’s largest and brings its total acquisition volume to $1.26 billion. This is the first time the tower has been offered for sale. “We believe that 500 West Madison is a trophy-quality asset with highly unique work-style advantages that encompasses everything KBS REIT III looks for in an investment,” says Charles Schreiber, CEO of KBS REIT III. The mixed-use tower, also known as Citigroup Center, features office and retail components. The 40-story building is located in the city’s West Loop submarket, which ishome to the majority of newer Class A office developments within Chicago’s central business district (CBD). The property sits above Ogilvie Transportation Center, one of two main suburban train stations connecting the Chicago suburbs with downtown, and provides direct access to city trains, buses and expressways. The tower’s first two levels contain nearly 64,000 square feet of retail space with 45 stores and restaurants. The tower is also LEED Gold …

NEW YORK — Cushman & Wakefield Inc. has appointed Edward Forst as president and chief executive officer of the company, effective Jan. 6, 2014. Forst, 53, has more than 30 years of experience working in international asset management, capital markets and operation leadership positions. “Cushman & Wakefield is a powerful and iconic brand with unparalleled capabilities in providing creative and innovative real estate services and solutions to a global client base,” says Forst. “I am honored to lead Cushman & Wakefield and am particularly excited to work with this world-class team of professionals to build on the company's strengths and capitalize on the many opportunities ahead.” He succeeds Carlo Barel di Sant'Albano, who held the position as interim president and CEO of the firm for the past five months. Di Sant’Albano took over the position when Glenn Rufrano resigned as CEO in June. Forst joins the company following his tenure at Goldman, Sachs & Co. as global co-head of the firm’s investment management division and a member of its management committee. He was previously the firm’s chief administrative officer and most recently served as an advisor to Fenway Partners, a private investment firm. During the financial crisis, Forst was selected …