Top Stories

NAPA, CALIF., AND SAVANNAH, GA. — Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate Trust Inc., has acquired two Andaz hotels in Napa and Savannah for approximately $115 million. The properties mark the second and third Andaz hotels in Inland American’s portfolio, following the $53 million purchase of Andaz San Diego earlier this year. The hotels are part of Hyatt Hotel Corp.’s boutique lifestyle brand. A Hyatt affiliate will continue to manage the properties, both of which were built in 2009 and branded as Andaz hotels in 2012, but will not retain its ownership interest. “We are very pleased to be expanding our relationship with Hyatt through the acquisition of these boutique lifestyle hotels, operating under the exciting and growing Andaz brand,” says Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc. “The purchase of these hotels further exemplifies our strategy of seeking continued improvement in the quality and performance of our portfolio through targeted acquisitions, selective dispositions, superior asset management and thoughtful capital improvements.” The five-story Andaz Napa is located in downtown Napa’s West End district. The project includes 141 rooms, including 89 lofts and suites. The hotel offers 6,800 square …

PHOENIX— Cole Corporate Income Trust (CCIT) Inc. has acquired 12 single-tenant office and industrial properties for approximately $386.1 million, including corporate facilities in North Carolina, Tennessee, Virginia, Texas, New Jersey, Nevada, Arizona, California and Colorado. The assets include “mission-critical” facilities leased to corporate tenants. CCIT, a non-traded real estate investment trust (REIT), invests primarily in single-tenant, income-producing, corporate properties leased to creditworthy tenants under long-term net leases. Cole Corporate Income Advisors LLC, a subsidiary of Cole Real Estate Investments Inc. (NYSE: COLE), serves as external advisor to CCIT. “The diversified industries, geographic locations, remaining lease terms and strategic importance of the properties for the tenants made these solid acquisition targets,” says Thomas Roberts, executive vice president and head of real estate investments at Phoenix-based Cole Real Estate Investments. “We continue to identify opportunities that meet our stringent acquisitions criteria and satisfy our rigorous underwriting processes, while building a high-quality portfolio of net-leased office and industrial assets for CCIT,” adds Roberts. The 12 office and industrial properties CCIT acquired include: • two Amazon distribution warehouses totaling more than 2 million square feet combined in Murfreesboro, Tenn., and Chester, Va. The build-to-suit properties serve as regional distribution centers for the world's largest …

WASHINGTON, D.C.— HFF has arranged $99.2 million in construction financing for Atlantic Plumbing, a 375-unit, Class A mixed-use project under development in the U Street/North Shaw submarket of Washington, D.C. HFF worked on behalf of entities owned by The JBG Cos. and Walton Street Capital LLC to place the four-year loan, with extension options for an additional three years, with Capital One. The development is situated at the intersection of 8th Street and V Street N.W., two blocks from the U Street metro station. Slated for completion in early 2015, the property will include 375 units and 23,785 square feet of ground-floor retail, as well as artist studios in two separate buildings. Designed by New York architect Morris Adjmi, the project will feature one- and two-bedroom units averaging 716 square feet each. Community amenities include a state-of-the-art fitness center with yoga and spin area, lounge with bar and theater and electric car charging stations. Also, the rooftop of the property will feature gardens, a pool with panoramic city views, grilling stations and a movie screening area. Sue Carras, Walter Coker and Brian Crivella led the HFF debt placement team in the transaction. Headquartered in Chevy Chase, Md., The JBG Cos. …

BOSTON — Millennium Partners, a New York-based developer, has kicked off construction of its Millennium Tower and Burnham Building development in Boston’s Downtown Crossing neighborhood. Located at the site of the former Filene’s Department Store, the $630 million project consists of the 1912 Burnham Building and the 62-story, 450-unit mixed-use Millennium Tower. The 1.4 million-square-foot development will feature office space, street-level retail and luxury residential condominiums. “The Filene's site is synonymous with Downtown Boston,” said Boston Mayor Thomas Menino at the groundbreaking ceremony. “The start of construction celebrates the beginning of a new chapter in the history of this historic building and highlights the promising future that is in store for this neighborhood.” The Millennium Tower/Burnham Building project is located within walking distance of all five MBTA T lines and the South Station commuter rail terminal. Pedestrian count exceeds 51,000 persons per day, surpassing that of New York City's well-known Fifth Avenue and SoHo shopping destinations, according to Millennium Partners. Millennium Partners signed its first office lease for the development in April with Arnold Worldwide, a subsidiary of Havas Advertising. Arnold Worldwide is expected to occupy its office space in September 2014. Millennium Partners has also reached agreement with Roche …

AUSTIN, TEXAS — Brandywine Realty Trust (NYSE: BDN) and DRA Advisors LLC have formed a joint venture to acquire Brandywine’s portfolio of office properties in the Southwest submarket of Austin. The venture will pay $330 million for the assets, which total nearly 1.4 million square feet. The deal is expected to generate $271.6 million in proceeds for Brandywine, which plans to use the funds to fuel its growth and deleveraging strategy. Brandywine and DRA previously partnered on a similar transaction in 2007 involving a suburban Philadelphia office portfolio. The two companies will each own a 50 percent interest in the new joint venture. “Through our existing joint venture, we enjoy an excellent relationship with DRA Advisors and are excited to expand that platform into the Austin market,” says Gerald Sweeney, president and CEO of Brandywine. “The going forward equity commitment by both parties positions us well to continue growing our position as one of Austin’s leading landlords.” To date, the joint venture has secured $230.6 million of non-recourse debt through three mortgages, which have a weighted average maturity of five years and an expected weighted average interest rate of 3.75 percent. The properties to be acquired include the four-building Barton …

WASHINGTON, D.C. — In a win for big-box retailers looking to expand in the District of Columbia, Mayor Vincent Gray has vetoed the controversial Large Retailer Accountability Act. The city council voted in July to pass the act, which would have imposed a $12.50 hourly living wage on businesses that have annual corporate sales of more than $1 billion and spaces greater than 75,000 square feet. The living wage is a 50 percent premium over Washington, D.C.'s current minimum wage of $8.25 an hour. Mayor Gray vetoed the legislation, citing “that the bill is flawed and will fail to achieve the intended goals.” The city council approved the bill, claiming that it was a victory for income equality and low-income workers. The proposed law had big-box retailers, especially Walmart, reconsidering their plans to open stores in the District. Walmart threatened to cancel plans for the six stores it had agreed to develop if the bill became a law. “The bill is a job-killer, because nearly every large retailer now considering opening a store in the District has indicated that they will not come here or expand here if this bill becomes law,” the mayor wrote in a letter to the …

NEW YORK — The Orbach Group, an owner, developer, and manager of multifamily properties on the East Coast, has completed a large, two-part transaction in the Columbia South neighborhood of Manhattan’s Upper West Side, further positioning the firm as one of New York City’s single largest landlords. In the first transaction, The Orbach Group acquired a 33-building apartment portfolio in the Columbia South neighborhood of Manhattan’s Upper West Side, totaling 1,031 high-end rental units, for approximately $250 million. The seller was a joint venture between Heritage Real Estate Partners and Dune Capital. The Orbach Group then sold off 11 of those buildings totaling 499 units to two private buyers for approximately $100 million. The Orbach Group now owns and manages more than 1,500 apartment units in New York City and more than 5,500 units throughout its entire East Coast portfolio. Having netted 22 buildings totaling 532 units from this latest transaction and adding them to the firm’s existing portfolio, The Orbach Group now owns and manages 54 buildings in Columbia South between 101st Street and 114th Street alone, with plans to acquire additional properties. The newly acquired buildings include a mix of one-bedroom, two-bedroom, and three-bedroom units. Market rents will …

LOS ANGELES — The Yucaipa Cos., the investment firm founded by supermarket mogul Ron Burkle, has agreed to purchase the El Segundo, Calif.-based grocery chain Fresh & Easy. While the purchase price was undisclosed, the assets included in the transaction — more than 150 stores, located mostly in Southern California, and a distribution and production facility in Riverside — were valued at $362.2 million (£229.3 million) at the end of fiscal 2012. United Kingdom retailer Tesco (LSE: TSCO) is selling Fresh & Easy just six years after launching the brand. Of the 200 stores currently operating, 50 will close in the coming weeks, the remainder being acquired and run as a new business under Yucaipa. Tesco will lend approximately $126.4 million to the new business as part of the deal. “The decision we are announcing represents the best outcome for Tesco shareholders and Fresh & Easy’s stakeholders,” says Philip Clarke, CEO of Tesco. “It offers us an orderly and efficient exit from the U.S. market while protecting the jobs of more than 4,000 colleagues at Fresh & Easy.” Even with those 4,000 employees being transferred to the new business, approximately 400 will lose their jobs as a result of the …

OAKLAND, CALIF. — Thailand-based Land & Houses PCL has purchased Domain, a 264-unit luxury, transit-oriented apartment community in Oakland, for $103.2 million. The sales price equates to approximately $391,000 per unit. Institutional Property Advisors (IPA), the multifamily brokerage division of Calabasas, Calif.-based Marcus & Millichap that represents institutional and major private investors, arranged the sale on behalf of the seller, an affiliate of Berkshire Property Advisors. Stanford Jones, executive vice president of investments, and Philip Saglimbeni and Salvatore Saglimbeni, both vice presidents of investments at IPA, represented the seller in the transaction. Domain, which was completed in 2011, is the only luxury rental community in Oakland’s City Center neighborhood, according to Philip Saglimbeni. He also says that Oakland’s rental rates are on the rise. According to Marcus & Millichap’s most recent market report on Oakland’s multifamily market, effective rents will settle at $1,575 per month by the end of 2013, an annual increase of 3.3 percent. “In addition to the continually improving local employment fundamentals, various competing properties are now converting to for-sale condominiums. The combination of these factors suggests rental rates will continue to climb throughout the Oakland market,” says Saglimbeni. The community is located at 1389 Jefferson St., …

LAS VEGAS — A joint venture between Tristar Capital LLC and RFR Holding LLC has received $580 million in refinancing for the Miracle Mile Shops, a 501,522-square-foot mall located on the Las Vegas Strip. A lender group led by Cantor Commercial Real Estate provided the 10-year CMBS loan. JPMorgan and Citigroup were the other lenders in the financing, which was arranged by HFF. “HFF evaluated numerous financing alternatives to secure the optimal recapitalization terms, keeping in mind the significant value creation opportunities ahead for the mall,” says Michael Fuchs, co-founder of RFR Holding. “In the end, the financing provided us the desired flexibility and returns.” The New York City-based firms are using the loan to refinance existing debt and provide funds for additional improvements, including the renovation of the retail area surrounding the PH Live Theatre. In 2004, the joint venture acquired Miracle Mile Shops and immediately embarked on a $130 million renovation and rebranding program. The mall is currently 95 percent leased to more than 180 tenants, including many with sales exceeding $1,000 per square foot annually. Notable tenants include H&M, Urban Outfitters, GUESS, Gap, Cabo Wabo, Tommy Bahama and Quicksilver. “We have positioned Miracle Mile Shops as one …