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LOS ANGELES AND ORLANDO, FLA. — Parkway Properties (NYSE: PKY) and Thomas Properties Group Inc. (NYSE: TPGI) have signed a definitive merger agreement whereby Thomas Properties will merge into Parkway in a stock-for-stock transaction valued at $1.2 billion. The board of directors of each company unanimously approved the merger, which is expected to close by the end of the fourth quarter. Upon completion of the transaction, Parkway will assume Thomas Properties’ ownership interest in two office properties in Houston and five office properties in Austin. In addition, Parkway may take ownership of three assets in Northern Virginia that secure debt. “Parkway will be adding a portfolio of seven, high-quality assets totaling 4.9 million square feet, each located in one of Parkway’s targeted submarkets. This transaction will significantly expand and upgrade our presence in Houston and simultaneously will allow us to fulfill our stated strategy of expanding into the Austin market,” says James Heistand, president and CEO of Orlando-based Parkway. “We continue to believe that our markets are in the early stages of recovery, and this transaction will give us an attractive basis with potential opportunity to create additional value through occupancy gains and rental rate growth.” Upon consummation of the …

SAN FRANCISCO — Berkeley Point Capital LLC and Freddie Mac have arranged $325 million in refinancing for The Gateway, a 1,254-unit multifamily property with more than 62,000 square feet of ground-floor retail space in San Francisco’s central business district. The interest-only loan includes a 10-year term at a fixed rate of 3.38 percent. The property, built on nearly eight acres between 1965 and 1967, offers residents both city and San Francisco Bay views. Among the retail tenants are Safeway, Starbucks and Bank of America. The Gateway has been in the portfolios of Berkeley Point and Freddie Mac since 1997. The organizations previously refinanced the property in 1997 and 2005, and second mortgages were placed in 2001 and 2007. “This is a one-of-a-kind asset, and we wanted it to remain in our portfolio for at least another 10 years,” says Mitch Clarfield, originator of the loan and senior managing director at Berkeley Point. Due to their familiarity with the borrower and the asset, Berkeley Point and Freddie Mac were able to lock in the interest rate within 15 days of beginning negotiations. Berkeley Point was also able to extend the rate lock at minimal cost to the buyer, allowing for long-term …

HOUSTON — Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate, has acquired two Houston-area Westin hotels for approximately $220 million. The 24-story Westin Galleria sports 487 rooms and 71,000 square feet of meeting space, while the 21-floor Westin Oaks Houston offers 406 rooms and 23,500 square feet of meeting space, including a 4,500-square-foot banquet space that overlooks the downtown Houston skyline. Both properties are located in close proximity to the Galleria development, which offers more than 3 million square feet of retail. “The acquisition of these outstanding properties, the only hotels connected to the acclaimed Galleria mall complex, is an exciting step in our ongoing strategy to enhance our portfolio of upper-upscale hotels,” says Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc. “The Houston lodging market has continued to outperform the majority of the country, positioning these recently renovated properties for strong returns going forward.” Features of the Westin Galleria include an outdoor rooftop pool and Daily Grill restaurant, and the Westin Oaks Houston boasts the White Oak Kitchen + Drinks and Street Level Lobby Bar. Among the amenities found at either location are a business center, fitness center and concierge …

SAVANNAH, GA. — Premier Outlets, a division of Ben Carter Enterprises, has broken ground on the Outlet Mall of Georgia, a $200 million outlet development on Interstate 95 in Pooler, approximately 10 miles west of Savannah. The outlet mall will feature 500,000 square feet of restaurants, children's play areas and retail outlet stores. The project is expected to open in spring 2015. Savannah, located along the east coast of south Georgia, has more than 12 million visitors per year, according to Ben Carter, founder of Atlanta-based Ben Carter Enterprises. The site for the outlet mall has more than 25 million passing vehicles annually and its regional trade area encompasses more than 860,000 people. The new outlet center will contain more than 80 outlet stores and is projected to create approximately 800 to 900 permanent jobs for the Savannah area. In addition to the main retail venue, The Outlet Mall of Georgia is also offering about 45 acres of adjacent land for retail, restaurant and hotel development. Upon completion, the overall project will consist of approximately 1 million square feet. The groundbreaking ceremony, which was held on Tuesday, Sept. 3, included dignitaries Edna Branch Jackson, the mayor of Savannah; Mike Lamb, …

CHATTANOOGA, TENN. — CBL & Associates Properties Inc. (NYSE: CBL), a Chattanooga, Tenn.-based shopping center owner and developer, has sold three malls and related associated centers in a deal worth $176 million in cash. An offshore investor purchased the properties with an Atlanta-based partner, Hendon Properties, which will also oversee management and leasing at the malls. The properties include Georgia Square Mall and Georgia Square Plaza in Athens, Ga.; Panama City Mall and The Shoppes at Panama City in Panama City, Fla.; and Rivergate Mall and Village at Rivergate in Nashville. “We are pleased to complete the disposition of these assets, generating substantial equity and demonstrating our continued ability to effectively execute our capital plan,” says Stephen Lebovitz, president and CEO of CBL. Lebovitz says when combined with the $209 million in at-the-market proceeds generated through mid-year, as well as $44 million from the sale of office buildings completed earlier this year, CBL has raised more than $425 million in equity year-to-date. “This deliberate approach has allowed us to significantly reduce debt while minimizing dilution and strengthening our core portfolio.” Rivergate Mall and Village at Rivergate are located in Goodlettsville, Tenn., along Interstate 65 just north of Nashville. The 1.1 …

ALCOA, TENN. — Alcoa (NYSE: AA), a leading producer of fabricated and primary aluminum, has broken ground on a $275 million expansion to its Tennessee Operations, a 2,000-acre complex in the city of Alcoa, Tenn., approximately 15 miles south of Knoxville. The company states the expansion will create 200 permanent full-time jobs when completed in mid-2015. In addition, construction will create approximately 400 temporary jobs. Physical specifications of the expansion have not been disclosed, but new facilities for the production of high-strength automotive aluminum have been confirmed, as well as conversion of some existing can sheet capacity to automotive capacity. “This investment will help auto manufacturers make safe, fuel-efficient vehicles that consumers want,” says Klaus Kleinfeld, Alcoa chairman and CEO. “At the same time, we’re bringing jobs to Tennessee and growing our value-added businesses. It’s a great day all around.” Previously, the Tennessee Operations site has been devoted to the production of can sheet aluminum for beverage cans. The complex currently includes a can reclamation plant and smelter for production of ingots (large solid aluminum bars); hot rolling facilities that reduce ingots to 1/8-inch thick coil; and a continuous cold mill which reduces the aluminum to the width used for …

NEW YORK — Time Equities has secured nearly $400 million in construction financing for the planned 63-story, retail/residential mixed-use tower in Lower Manhattan. The ambitious mixed-use project at 50 West Street was put on hold in 2008 in the wake of the financial crisis on Wall Street. Construction is set to begin this fall with completion expected in 2016. The firm is ready to move forward in part because the local market is so active. “Lower Manhattan has and will continue to outperform expectations,” says Francis Greenburger, chairman of Time Equities. “Given all that is happening in Lower Manhattan right now, we see demand for high-quality condos in the neighborhood continuing to grow in the years ahead.” Time Equities first purchased the 50 West Street site in 1983. Since the project stalled five years ago, plans for the building’s interiors have been redesigned and the hotel component originally included has been scrapped. The key piece fell in place when $398 million in total funding was secured. Elliott Management, a New York-based global investment fund led by Paul Singer with more than $21 billion in assets under management, has formed a joint venture with Time Equities and will invest $110 million. …

CHICAGO — The AFL-CIO Housing Investment Trust (HIT) has provided $32 million in financing toward a $42 million renovation of the 250-unit, 26-story apartment tower at 2101 S. Michigan Ave. in Chicago’s Near South Side. Built in 1971 with financial assistance from the Federal Housing Administration's grant program for affordable housing, the rehabilitation will include major upgrades to improve its energy efficiency. The renovation will include a new lobby, community room and on-site laundry facility, as well as energy-efficient appliances and new heating and cooling in the individual units. Rehabilitation work on the aging property will generate approximately 245 union construction jobs. “As older downtown neighborhoods experience growth with the corresponding demand for housing, it's very important to preserve and update existing units whenever possible,” says Stephanie Wiggins, executive vice president and chief investment officer for Washington, D.C.-based HIT. “The HIT's investment in 2101 South Michigan will help ensure that quality housing near Chicago's downtown Loop, with its employment opportunities and other amenities.” The apartment building, which is located in Chicago's South Loop neighborhood, includes a mix of studio to three-bedroom apartments with beginning rents ranging from $696 to $1,064 per month, according to Metroplex Inc., the property’s manager. A …

MILWAUKEE — Northwestern Mutual, a private life insurance company and real estate investor, has provided $233 million in loan refinancing for 19 apartment communities in four states across the Sun Belt and West Coast. The loan is a tranche of a $460 million portfolio, the remainder of which matures at a later date. Northwestern Mutual provided the loan to Atlanta-based Gables Residential, a real estate firm engaged in apartment community management, development, construction, acquisition and disposition. The 19 communities include three communities with 1,086 apartment homes in Atlanta; two communities with 512 apartment homes in Austin, Texas; three communities with 481 apartment homes in Dallas; four communities with 1,050 apartment homes in Houston; four communities with 1,114 apartment homes in South Florida; and three communities with 412 apartment homes in Southern California. “The strength of our general account portfolio allows us the flexibility to execute such a complex transaction, which will provide long-term value for our policyowners,” says Felix Figueroa, director of Northwestern Mutual Real Estate Investments. “The communities included in this transaction are diversified, well-located and have proven historical success.” Northwestern Mutual has the highest total cash value rate of return among major insurance companies, according to a statement …

HONOLULU — The Hawaii Community Development Authority (HCDA) has approved The Howard Hughes Corp.’s (NYSE: HHC) plans for two mixed-use towers as part of Phase I of the master-planned Ward Village in Honolulu. Ward Village, which is located in the heart of Kaka‘ako, is a 60-acre, 9.3 million-square-foot project. The development will include more than 4,000 residential units, along with more than 1 million square feet of retail and commercial space. Phase I is scheduled for a 2016 completion. “Our vision for Ward Village is to create an urban, master-planned community, which offers an exceptional living environment while honoring the area’s rich history and culture,” says David Weinreb, chief executive officer for The Howard Hughes Corp. “Beyond being one of our most significant assets, this redevelopment is already serving as a catalyst for the revitalization of Kaka‘ako.” The two towers will be located on land blocks 2 and 3. Land block 2 will contain approximately 171 one-, two- and three-bedroom units, in addition to 10 townhomes. Land block 3 will consist of approximately 312 units ranging from one- to three-bedroom floor plans. The building will also include 82 flats and townhomes. The Howard Hughes Corp. is seeking to achieve Leadership …