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NEW YORK — Jones Lang LaSalle has completed the three-year, $1 billion transformation of Madison Square Garden in New York. The recent renovation is the most significant overhaul of the famous arena since initial construction of the venue in 1968. The Madison Square Garden Co. (MSG) selected Jones Lang LaSalle’s project and development services group to serve as project manager for the upgrades. The company worked closely with MSG staff to manage the overall strategic plan, master budget and schedule. “Over the past few years, Madison Square Garden, known as ‘The World’s Most Famous Arena,’ has been completely transformed,” says Raymond Quartararo, who led the JLL team. “The state-of-the-art facility now offers fans, players and entertainers the kind of truly remarkable experience they deserve. JLL strove to ensure that all the work was completed smoothly and discretely while the arena continued to host sporting events, concerts and other entertainment events.” The upgrades to Madison Square Garden include a new Seventh Avenue entrance, wider concourses, new food and entertainment amenities, more comfortable seating and improved sightlines. The venue also now features a new scoreboard, state-of-the-art lighting and sound, LED video systems and new suites/clubs. Work on the arena was a year-round …

SAN DIEGO — Essex Property Trust Inc. (NYSE: ESS) has acquired the Domain by Alta — San Diego, a 379-unit luxury apartment community in San Diego, for $121 million. Wood Partners sold the complex, which is located at 8795 Lightwave Ave. in the city’s Spectrum Center business park. The property opened in 2012 and is 80 percent leased. Domain by Alta — San Diego includes 23 studios, 197 one-bedroom and 159 two-bedroom units. The multifamily community contains two four-story buildings and a clubhouse built atop underground parking that can accommodate 750 vehicles. Community amenities include a landscaped pool area with waterfalls, cabanas, a spa and barbeque pits. The two-story clubhouse also features wireless work stations and a health club. “There are very few luxury, institutional quality apartment buildings available for purchase in San Diego County and this was a rare opportunity to acquire one,” says Brian Hansen, a director with Atlanta-based Wood Partners who oversees the company’s development projects in Southern California. “The market for luxury rental properties in San Diego is tight. Supply is low, demand is high and the economy is picking up steam.” There are more than 15,000 jobs within a two-mile radius of the complex, according …

SAN DIEGO, NEW YORK CITY AND SAN FRANCISCO — Prudential Real Estate Investors (PREI) has acquired three office properties totaling approximately 1.4 million square feet in San Diego, New York City and San Francisco following the close of its $430 million U.S. Property Fund V. Managed on behalf of German investors, the fund has also invested in multifamily properties in Phoenix, Houston and Dallas. Most recently, PREI agreed to acquire the Rio San Diego Plaza, a six-story, 190,000-square-foot office building in the Mission Valley suburb of San Diego, on behalf of the fund. Jones Lang LaSalle sold the 92 percent leased property for $56 million. The fund has also purchased 575 Lexington Ave., a 740,000-square-foot property in New York City, and 650 California St., a 461,000-square-foot property in San Francisco. Between the capital raised and 60 percent debt financing, the fund can invest more than $1 billion. “We are very pleased to have reached this level of equity commitments for continued U.S. investments,” says David Pahl, senior portfolio manager for PREI. “We’re grateful for the tremendous support and confidence our German investors place with us, and we are very optimistic about the investment environment over the next several years in …

SAN FRANCISCO — Jay Paul Co., a San Francisco-based real estate developer, has started construction on 181 Fremont, a 54-story condominium and office tower in San Francisco’s South of Market (SOMA) district. The $500 million development is Jay Paul Co.’s first urban high-rise project. The new high-rise will offer 411,000 square feet of Class A office space on 33 floors, and Park 181, the luxury residential component of the tower, will be located on floors 39 through 53. The project will also include 2,600 square feet of retail space on the first and fifth floors. The mixed-use tower is scheduled to open in early 2016. “As an iconic residential and office high-rise set to define San Francisco’s new downtown, 181 Fremont will be one of the most exclusive addresses in the nation,” says Jay Paul, principal of Jay Paul Co. “181 Fremont is located in the heart of the nation’s strongest office and residential market and, in alignment with the company’s philosophy of bringing best-in-class projects to fruition, will encourage a sustainable lifestyle for all who live and work there.” 181 Fremont will rise 802 feet, making the project the tallest mixed-use office and residential tower in San Francisco and …

OAK BROOK, ILL. — Inland Real Estate Corp. (NYSE: IRC) has entered into a joint venture with MAB American Retail Partners LLC to develop grocery-anchored shopping centers in select markets throughout the Southeast and Mid-Atlantic regions. The five-year development program will target demographically strong metropolitan areas in the Carolinas, Georgia, Florida, Virginia and Washington, D.C. Inland says the program could result in the construction of as many as 20 new grocery-anchored shopping centers with a total market value of $325 million. “We are very excited to enter into this joint venture, which furthers our strategic goals to enhance the quality and stability of our operating platform through growth and diversification of our geographic footprint and retailer base,” says Mark Zalatoris, president and CEO for Oak Brook, Ill.-based Inland Real Estate Corp. “Our development joint venture with MAB provides us with the opportunity to develop and acquire brand new, high-quality, grocery-anchored shopping centers after stabilization and at a discount to market value.” Under terms of the agreement, Inland has exclusive rights to all grocery-anchored, build-to-suit opportunities in the Southeast and Mid-Atlantic sourced by MAB, an affiliate of Melbourne, Australia-based MAB Corp. Inland will provide 90 percent of the equity required to …

WHIPPANY, N.J. — Bayer’s new 700,000-square-foot North American headquarters, located on the former 194-acre Alcatel-Lucent campus in Whippany, has opened. Bayer, a German chemical and pharmaceutical company, has invested a reported $250 million in the site. The new headquarters consolidates the company’s operations from Morristown, Montville and Wayne, N.J., and Tarrytown, N.Y., into one location. In 2010, Vision Equities and Rubenstein Partners acquired the property, which included 1.4 million square feet of obsolete office and laboratory space. In 2012, the partnership sold 94 acres to Bayer Healthcare. Bayer has relocated approximately 2,400 employees from four locations to Whippany, wrapping up the first phase of the redevelopment project. Vision Equities and Rubenstein Properties are planning a mixed-use development that will include retail, hospitality and residential uses for the 94-acre south campus parcel. “Moving forward, the second phase of development will generate years of construction jobs, retail commerce and new housing,” says Sam Morreale, managing partner and chief investor office for Mountain Lakes, N.J.-based Vision Equities. “The multiplicity of uses also will provide employment diversity and balance. Simply put, this campus provides a benchmark illustration of how strategic public/private partnerships can transform our state’s underutilized, antiquated facilities into vibrant, modern ‘live/work/play’ environments.” …

INDIANAPOLIS — Kite Realty Group Trust (NYSE: KRG ) has reached an agreement to acquire a portfolio of nine retail properties that total approximately 2 million square feet for $307 million in cash. Seven of the properties to be purchased are situated in the firm's existing markets of Florida, Georgia and Texas, while two are in a new market, Birmingham, Ala. Indianapolis-based Kite Realty says expansion in these markets enables it to build on its presence and operating experience. As of Sept. 30, the portfolio was 93.2 percent leased. “These properties will complement those in our existing portfolio and provide us with an opportunity to strategically increase our footprint in our targeted markets,” says John Kite, chairman and CEO of Kite Realty. “We believe there are significant value creation opportunities through the lease-up of vacant space, rollover of below market rents and the pursuit of redevelopment opportunities.” Approximately 1.5 million square feet, or 74 percent of the portfolio, is located in Florida, Georgia and Texas. Two of the properties, which include the 446,484-square-foot Trusville I & II property and the 66,165-square-foot Colonial Shoppes at Clay, are located in the Birmingham, Ala area. Major tenants at the properties include Winn Dixie, …

NEW YORK CITY — Investcorp’s U.S.-based real estate arm has acquired a group of office and retail properties in the greater Chicago, Los Angeles, Minneapolis and New York areas valued at $250 million. “This acquisition adheres to Investcorp's approach of targeting high-quality assets, located in major metropolitan areas characterized by economic growth,” says Herb Myers, managing director in Investcorp's real estate group. “In addition, our approach is to invest in assets that we believe will provide attractive yields soon after they are acquired.” The properties total more than 1.6 million square feet with an average occupancy rate of approximately 92 percent. “We believe that these properties also present an opportunity to improve their operating and leasing performance over a longer time horizon,” says Myers. The Chicago area properties include 1603 & 1629 Orrington Ave in Evanston, a northern suburb. The two-building office complex spans 339,000 square feet and benefits from its close proximity to Northwestern University, according to Investcorp. The company also acquired Mountaingate Plaza in Simi Valley, Calif. Situated on 25 acres in the greater Los Angeles area, the multi-tenant, 246,326-square-foot retail center is anchored by a grocery and drugstore and includes a connecting medical office facility. The Minneapolis …

BOCA RATON, FLA. AND NAPERVILLE, ILL. — Office Depot Inc. and OfficeMax Inc. have completed their merger, creating a global provider of office products, services and solutions. The combined company will use the name Office Depot Inc. and will trade on the New York Stock Exchange under the symbol ODP. In the 12 months ending at Sept. 28, 2013, Office Depot and OfficeMax had a combined revenue of approximately $17 billion. The new company now employs about 66,000 associates worldwide and operates in 59 countries with more than 2,200 retail stores, e-commerce sites and a business-to-business sales organization. The new Office Depot Inc. will utilize a global network of wholly owned operations, joint ventures, franchisees, licensees and alliance partners. Office supply retail is a category in transition, according to Michael Berne, president of MJB Consulting, a retail planning and real estate consulting firm based in New York City and Berkeley, Calif. “Even in the best of times, it was still a question whether the market needed three operators with Office Depot, OfficeMax and Staples,” says Berne. Berne expects that the merged company will shutter some of its existing stores, even though the Federal Trade Commission didn’t mandate the divestiture of …

OAK BROOK, ILL. — Inland American Lodging Group Inc. has acquired three luxury boutique hotels from Kimpton’s Hotel Monaco collection for a total purchase price of $189 million. The properties — Hotel Monaco Chicago, Hotel Monaco Denver and Hotel Monaco Salt Lake City — comprise a total of 605 rooms. With this purchase, Inland American has added 13 hotels to its portfolio in 2013. Kimpton Hotels & Restaurants will continue to manage these three properties. “This acquisition of three market-leading hotels in excellent condition enhanced our portfolio’s geographic diversification and complements our recent acquisitions in the boutique, luxury hotel space,” says Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc., based in Oak Brook, Ill. “We are thrilled to expand our new relationship with Kimpton as we increase our investment in upper-upscale and luxury hotels through the addition of these high-quality assets.” Hotel Monaco Chicago, located in the redeveloped 1912 Fisk Building at the corner of North Wabash Avenue and East Wacker Place in the downtown market, first opened in 1998. The 14-story building features 191 rooms, in-room spa services, a fitness center, the South Water Kitchen restaurant, and 4,100 square feet of meeting space. The six-story, 189-room …