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LOS ANGELES — In a massive deal, Hudson Pacific Properties Inc. (NYSE: HPP) has entered into a definitive asset purchase agreement to acquire the Equity Office Properties San Francisco Peninsula and Silicon Valley office portfolio from Blackstone Real Estate Partners V and VI. The stock and cash transaction is valued at $3.5 billion. The Equity Office Properties portfolio includes more than two dozen properties located in cities such as San Jose, Palo Alto, Burlingame and Redwood City, and totals approximately 8.2 million square feet. The portfolio’s occupancy and rents are approximately 10 percent and 15 percent below market, respectively, with approximately 60 percent of the leased square footage expiring by the end of 2017. The expiration of the leased properties will afford Hudson the opportunity to gain “substantial embedded net operating income growth,” according to the company. Los Angeles-based Hudson believes the deal will help position it as a leading West Coast office REIT. Following the deal’s closing, Hudson, which will effectively double in size, is expected to have an equity market capitalization of $3.7 billion and total enterprise value of approximately $6.5 billion. The purchase brings together two office portfolios with a combined asset base of 53 properties totaling …

NEW YORK — SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, and Prudential Real Estate Investors, the real estate investment management and advisory business of Prudential Financial Inc. (NYSE: PRU), have formed a joint venture for the ownership of condominium units at Tower 46, located at 55 W. 46th St. in Manhattan. The units span 347,000 square feet with office space on floors two and 22-34 and retail space at grade on 46th Street. SL Green announced its acquisition of the Class A asset for $295 million in September and completed that transaction in October. A fund managed by PREI on behalf of institutional investors now owns a 75 percent stake under the terms of the new joint venture, with SL Green keeping 25 percent ownership and retaining management and leasing responsibilities. “Prudential, our longtime partner at 100 Park Ave., shared our vision for this prime Midtown asset,” says Isaac Zion, co-chief investment officer of SL Green. “We are delighted to be partnering with them once again and look forward to creating value together.” Skidmore Owings & Merrill designed the tower, which was completed in 2013. The glass and steel structure features floor-to-ceiling windows on …

CHICAGO — Acadia Realty Trust (NYSE:AKR) has acquired an 88.4 percent interest in an 87,000-square-foot retail building along Chicago’s Magnificent Mile for $144.3 million. The four-story flagship property is located at 840 N. Michigan Ave. The space is fully occupied by H&M and Verizon. H&M has operated at the space since 2003. The apparel and accessories retailer recently signed a new 10-year term that expands its selling space by about 10,000 square feet at the below-grade concourse level. H&M’s flagship now totals 59,500 square feet. Verizon also rolled out its newest Destination Store at this location. The two-story, 10,000-square-foot space is Verizon’s largest store in the country and one of only two such experience stores, according to Acadia. “Flagship locations, such as 840 North Michigan Avenue, located in live-work-play-visit cities, enable our retailers to pair highly visible branding with access to thousands of shoppers daily,” says Joel Braun, Acadia’s CIO and executive vice president. “In our experience, retailers have been highly motivated to invest their own dollars to uniquely merchandise these flagship stores.” The building is located directly across the street from Water Tower Place. It is situated along the stretch of Michigan Avenue known as Magnificent Mile, a premier …

UNIONDALE, N.Y. — Arbor Commercial Funding LLC, a subsidiary of Arbor Commercial Mortgage and a national, direct commercial real estate lender, has announced the funding of 16 loans totaling $86.9 million across the western U.S. The loans were made under the Fannie Mae Delegated Underwriting & Servicing Loan, Fannie Mae DUS-Small Loan, Fannie Mae DUS Affordable Housing, Fannie Mae DUS Supplemental and Fannie Mae DUS-ARM 7/6 product lines. The loans stretch from Texas to California and were originated by Jay Porterfield of Arbor’s Plano, Texas office. “As a national direct lender, Arbor has comprehensive market expertise throughout the country, including in such multifamily hotbed markets as Colorado, California and Texas,” says Porterfield. The loans stretch from Texas to California and were originated by Jay Porterfield of Arbor’s Plano, Texas office. Here’s a look at each loan in detail: · Stonebridge Apartments, Modesto, Calif. – This 286-unit multifamily property received $16.75 million funded under the Fannie Mae DUSLoan product line. The 10-year refinance loan amortizes on a 30-year schedule. The property provides residents with a swimming pool, spa, clubhouse, playground and laundry room. · Hahn Triplexes, Modesto, Calif. – This 33-unit multifamily property received $3 million funded under the Fannie Mae DUSSmall …

CHICAGO — Georgetown Co. has purchased K2 Apartments in Chicago for $214.2 million. Locally based Fifield Cos. and its joint venture partner, Houston-based Wood Partners, sold the 496-unit, Class A luxury apartment development. Located at 365 N. Halsted St., K2 is 95 percent leased. Residences include a mix of studio, one-, two- and three-bedroom apartments, all with access to a full suite of amenities, including a state-of-the-art fitness center, 70-foot lap pool, theater room, bike storage for 200 bikes and a half-acre dog park. “K2 has been a smashing success since it debuted in early 2013,” says Steven Fifield, president of Fifield Cos. “Renters responded enthusiastically to our grandest design yet, and in less than two years we are near full occupancy. That is a testament to K2 and the strength of the luxury rental market. This lifestyle has shown no signs of slowing down and this investment by Georgetown will deliver for years to come.” Pete Evans of Moran & Co. represented Fifield Cos. and Wood Partners in the sale. The $214.2 million sale price marks the highest amount to be paid for a Chicago downtown apartment tower since December 2012, which marked the sale of another Fifield project, …

NEW YORK — Blackstone (NYSE: BX) has announced that funds affiliated with Blackstone Real Estate Partners VI & VII have agreed to sell their wholly owned U.S. industrial platform, IndCor Properties, to affiliates of GIC, Singapore’s sovereign wealth fund, for $8.1 billion. As a result of this transaction, Chicago-based IndCor will no longer be pursuing an initial public offering (IPO). IndCor owns and operates a portfolio of 117 million square feet of industrial properties throughout the United States. IndCor’s assets are principally located in desirable infill industrial markets such as Seattle, Portland, Los Angeles, San Diego, Dallas, Houston, Denver Minneapolis, Chicago, Atlanta, Charlotte, Miami, Baltimore and Washington, D.C. “We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States,” says Tim Beaudin, CEO of IndCor Properties. “We are excited about the company’s future prospects under new long-term ownership with GIC.” The transaction is expected to close in the first quarter of 2015. Eastdil Secured, a wholly-owned subsidiary of Wells Fargo & Co., advised Blackstone in the transaction, along with Citigroup, Barclays and RBC Capital Markets. Blackstone’s real estate business was founded in 1991 and has more than $80 billion in investor …

MIAMI — Canyon Capital Realty Advisors has provided a $157 million senior construction loan to a joint venture between the Related Group of Florida and SBE Hotel Group to finance the development of the SLS Brickell Hotel & Residences. The 54-story, luxury mixed-use tower consists of a 124-room SLS-branded hotel and 453 SLS-branded residential condominiums located above the hotel. The hotel will include ground-floor restaurants from renowned chefs, including Michael’s by Michael Schwartz and The Bazaar by Jose Andres. The prices of the condominiums range from $400 to $500 per square foot, according to the sales office’s website. “Our hospitality expertise played a critical role in the borrower’s decision to work with us,” says Ronald Muzii Jr., the South Florida-based senior director of Canyon Capital Realty. “Related knew we were an experienced condominium construction lender, but SBE knew that Canyon had extensive nationwide hotel experience as well, which would be crucial in getting this deal done.” The mixed-use tower, which will open in fall 2016, features amenities such as property-wide Wi-Fi in all common areas and residences; multilingual staff; 24-hour valet parking and security service; as well as in-room dining services. The residences are currently sold out with a waitlist. …

NEW YORK — Massey Knakal has arranged the sale of The East Side Elevator Portfolio, consisting of five trophy assets on the east side of Manhattan, for $126 million. Stonestreet Properties sold the portfolio, which features one property in the East Village on 3rd Street and four properties on the Upper East Side and includes a total of 267 units. The properties were sold in two separate transactions. Trevi Retail purchased the four Upper East Side properties and buyers Nader and Lisa Shalom purchased the 3rd Street property. “The multifamily sector has always been the most active in the city, and today is no different. The interest in these properties was from every corner of the globe and from a widespread array of buyer types,” says Bob Knakal, chairman of Massey Knakal. Thomas Gammino Jr., Guthrie Garvin, Michael DeCheser and Knakal exclusively handled the transactions. The portfolio consists of 264 residential units, two commercial units, and one professional unit totaling approximately 144,043 square feet. Of the 264 units, 196 are fair market while 68 are rent stabilized. The unit mix consists of 59 studios, 152 one-bedrooms, 28 two-bedrooms, 19 three-bedrooms, and six four-bedrooms. The properties represent some of the most …

NEW YORK — Paramount Group Inc. (NYSE: PGRE), which specializes in owning and managing office properties in major markets, has completed its initial public offering of nearly 150.6 million shares of its common stock at a public offering price of $17.50 per share. The IPO has resulted in gross proceeds of $2.6 billion. The offering is the largest IPO ever for a U.S. real estate investment trust, according to Bloomberg, exceeding Douglas Emmett Inc.’s IPO in 2006, which raised $1.6 billion. According to Bloomberg, the shares climbed 3.9 percent to $18.18 on their first day of trading (Nov. 19) after the company sold them for $17.50 each. The IPO includes the full exercise of the underwriters’ option to purchase an additional 19.6 million shares of common stock. New York-based Paramount intends to use the net proceeds from the offering of $2.6 billion, after deducting underwriting discounts, commissions and offering expenses, to repay outstanding indebtedness and any applicable prepayment costs, exit fees, defeasance costs and settlement of interest rate swap liabilities associated with such repayment, as well as pay cash consideration in connection with its formation transactions. The company expects to use any remaining net proceeds for general corporate purposes, capital …

MILWAUKEE — Physicians Realty Trust (NYSE: DOC), a self-managed healthcare REIT based in Milwaukee, has entered into four separate purchase agreements in Georgia, Alabama, Washington, New York and Illinois totaling $123.2 million. In the Southeast, the REIT has partially closed on the purchase of a 309,865-square-foot portfolio of 13 medical office buildings for $34.5 million. Known as the Columbus Regional Medical Office Portfolio, 12 of the properties are located in Columbus, Ga., and one is located in Phenix City, Ala. The portfolio is 88 percent occupied, and 11 of the 13 properties are located adjacent to the 413-bed Columbus Regional Medical Center (CRMC) and the 219-bed Doctors Hospital, two of Columbus Regional Healthcare System’s (CRHS) short-term acute care hospitals. The portfolio features a mix of healthcare providers anchored by physician practice groups that are affiliated with CRHS and the Columbus Clinic. As part of the transaction, the CRHS-related leases totaling 45 percent of the overall portfolio’s base rental revenue have been renegotiated and extended to 10-year lease terms. Physicians Realty Trust has closed on 12 of the 13 buildings, with the final building expected to close by the end of 2014. “We are pleased to have the opportunity to work …