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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 …

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 …