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PLEASANTON, CALIF. AND BOISE, IDAHO — Grocery store chains Albertsons and Safeway have agreed to merge in a $9 billion deal that will form a combined company with more than 2,400 stores nationwide. Following an expected close in the fourth quarter, the new entity will trail only Kroger (2,640) in number of locations. AB Acquisition LLC, the owner of grocery store chain Albertsons, has agreed to purchase all outstanding shares of competitor Safeway. Cerberus Capital Management, which leads the investment group that controls AB Acquisition, plans to merge the two chains. Safeway is currently the second-largest chain in the nation with 1,355 stores, while Albertsons ranks fifth with 1,075. “This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions throughout the country,” says Bob Miller, CEO of Albertsons. “It also brings together two great organizations with talented management teams. Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.” Further developments could be on the horizon, as the Albertsons-Safeway merger agreement includes a “go-shop” period, during which Safeway and its financial advisor Goldman …

FORT WORTH, TEXAS — The decision by RadioShack (NYSE: RSH) to close up to 1,100 underperforming stores this year was due to another quarter of poor performance, says CEO Joseph Magnacca. In the fourth quarter of 2013, Fort Worth-based RadioShack suffered a 19 percent decrease in same-store sales and a net loss of $191.4 million. That compares with a loss of $63.3 million in the fourth quarter of 2012. “Our fourth-quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues,” said Joseph Magnacca, RadioShack CEO, in a statement issued March 4. The 1,100 store shutterings more than doubles the 500 closures that the chain was considering in early February, as reported by the Wall Street Journal, and represents approximately one-fifth of the company’s 5,200 U.S. locations. While the specific locations of the closures have not been released, RadioShack has its largest presence in California (565 stores), Texas (408 stores), New York (342 stores), Florida (309 stores) and Pennsylvania (232 stores), according to USA Today. The company’s well-documented downfall has included the “Fix 1500” initiative, which resulted in the reassignment …

IRVINE AND SILICON VALLEY, CALIF. — Google Capital, a growth equity fund backed by Google, has invested $50 million in Auction.com LLC, a privately held online commercial and residential real estate marketplace. As part of the investment, one representative from Google Capital will join Auction.com’s board of directors and another will take a board observer position. “Google is the world’s greatest Internet company, and we’re thrilled to have the opportunity to work closely with them. This will give us an opportunity to tap into their deep expertise in digital marketing and mobile, as well as in building world-class products,” says Jeff Frieden, CEO and co-founder of Auction.com. “Over $7 billion of commercial and residential real estate traded through our online marketplace in 2013, and we believe that having Google Capital’s support will help us expand our industry leadership, and carve out a bigger share of the global real estate market.” Google Capital joins other shareholders in Auction.com, including Starwood Capital Group, Starwood Property Trust, Stone Point Capital and funds managed by affiliates of Fortress Investment Group. Auction.com annually handles tens of thousands of transactions for customers, ranging from large financial institutions to individuals and brokers. “Auction.com has quietly built one …

LAS VEGAS — Caesars Entertainment Corp. (NASDAQ: CZR) has agreed to sell Bally’s Las Vegas, The Cromwell, The Quad and Harrah’s New Orleans to Caesars Growth Partners LLC for $2.2 billion. The transaction, which is expected to close in the second quarter of this year, includes assumed debt of $185 million and committed project capital expenditures of $223 million. The sale is part of Caesar Entertainment Corp.’s repositioning of its three primary structures: Caesars Growth Partners, Caesars Entertainment Operating Co. Inc. (CEOC) and the six-property Caesars Entertainment Resort Properties (CERP) portfolio. “[These] asset sales mark an important step in our ongoing efforts to repair CEOC’s balance sheet,” says Gary Loveman, chairman and CEO of Caesars Entertainment. “Caesars Entertainment and Caesars Acquisition Co. [the managing member of Caesars Growth Partners] have a combined equity market capitalization of more than $5 billion. To build equity value, we have employed a full complement of operating and financial tools. “The company expects to deploy a similar array of tools to improve CEOC’s financial position and build additional equity value.” Bally’s Las Vegas, located on Las Vegas Boulevard, totals 2,810 rooms and suites and features a 66,200-square-foot casino. The Quad, also on Las Vegas Boulevard, …

NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG), a real estate investment trust (REIT) and New York City’s largest office landlord, has agreed to acquire Ivanhoe Cambridge’s stake in the 2.6 million-square-foot office headquarters of Citigroup Inc. in New York City. The office campus is located at 388-390 Greenwich St. in Manhattan’s Tribeca neighborhood. The transaction values the consolidated interest investment at nearly $1.6 billion. The deal is expected to close in the second quarter of this year. “We have enjoyed a successful partnership with Ivanhoe Cambridge at 388-390 Greenwich, capped by Citigroup’s recent lease extension, which was one of the largest lease transactions ever executed in New York,” says Andrew Mathias, president of SL Green. The 388 Greenwich building is a 39-story tower with unobstructed views of Manhattan’s skyline and the Hudson River. 390 Greenwich is an eight-story property that features 94,000-square-foot trading floors. The office campus is leased to an affiliate of Citigroup Inc., a leading global bank with 200 million customer accounts, through 2035. The lease agreement includes an option for Citigroup to acquire the Tribeca campus during a three-year window from Dec. 1, 2017 to Dec. 1, 2020. Citigroup does business in more than …

MAUI, HAWAII – A partnership between Woodridge Capital Partners LLC and Colony Capital LLC has acquired The Ritz-Carlton, Kapalua Resort for an undisclosed sum. The AAA five-diamond resort is situated on 54 oceanfront acres within Maui’s Kapalua Resort. The showpiece features 463 guestrooms, including 107 residential suites. “The combination of The Ritz-Carlton brand, a welcoming and nurturing Hawaiian culture and the nature and magic of Maui will make an unbeatable combination,” says Thomas J. Barrack, Jr., Colony’s chairman and CEO. Built in 1992, the resort underwent a $190 million renovation in 2007, which included the introduction of The Ritz-Carlton residences. The new owners plan to make further enhancements to the resort. “We have great respect for the traditions of the islands,” says Michael Rosenfeld, Woodridge’s founder and president. “With its special character, remarkable location and precious natural resources, The Ritz-Carlton, Kapalua is a rare property that would be nearly impossible to duplicate today.” The property contains three restaurants, a lounge, a pool bar, café and The Beach House, an outdoor restaurant that is situated next to D.T. Fleming beach. The resort also contains 207,000 square feet of meeting space, including 35,000 square feet of indoor meeting space and 172,000 square …

CHICAGO — Ashford Hospitality Prime Inc. (NYSE: AHP) has acquired the 415-room Sofitel Chicago Water Tower hotel for $153 million, or $369,000 per key. The purchase price represents a cap rate of 6.8 percent on a forward 12-month basis. In 2013, the Sofitel Chicago Water Tower recorded revenue per available room (RevPAR) of $182, average occupancy of 82 percent and average daily rate (ADR) of $222. AHP, which was created in November of last year in a spin-off from Ashford Hospitality Trust, funded the acquisition with a five-year, $80 million non-recourse mortgage with a floating rate of LIBOR plus 2.3 percent. “Aside from being our first acquisition since the spin-off from Ashford Trust, the purchase of the Sofitel Chicago Water Tower is an extremely attractive transaction for Ashford Prime,” says Monty Bennett, AHP chairman and CEO. “We have gained a high-RevPAR luxury hotel in the heart of Chicago, a key U.S. gateway market. Additionally, the hotel will increase Prime’s overall average RevPAR and broaden our portfolio by market, brand and manager.” Located in the Gold Coast submarket of Chicago, the four-star hotel is in close proximity to the Magnificent Mile retail district. The American Institute of Architects recently included the …

BALA CYNWYD, PA. AND EDISON, N.J. — Keystone Property Group has agreed to acquire 12 office properties in the Tri-State area for $230.8 million from Mack-Cali Realty Corp. (NYSE: CLI). Keystone and Mack-Cali will form various joint ventures under which Keystone will pay $201.7 million in cash and the balance in the form of senior and subordinated equity. The portfolio totals 2.3 million square feet in New York, New Jersey and Connecticut. The deal will be the fifth transaction between Keystone and Mack-Cali in the last three years. In 2012 and 2013, Keystone acquired single office properties in Moorestown, N.J. and Blue Bell, Pa.; a portfolio of 14 office properties in suburban Philadelphia; and the 400,000-square-foot 100 Independence Mall West in the Philadelphia CBD, all from Mack-Cali via joint venture. “We continue to expand our relationship with Mack-Cali, leveraging the strengths of the partnership’s distinct capabilities to fill a void in the market for next-generation work environment that enable tenants to attract and retain top talent,” says Bill Glazer, president of Keystone. The Tri-State portfolio includes three buildings in Elmsford, N.Y.; two buildings in Tarrytown, N.Y.; three buildings in Montvale, N.J.; and one building each in Fairlawn, N.J.; Piscataway N.J.; …

DENVER — Denver-based multifamily developer Zocalo Community Development and its capital partner Principal Real Estate Investors have agreed to sell the 219-unit Cadence Union Station apartments to an institutional client of Invesco Real Estate. The sales price was undisclosed, but the Denver Business Journal reports that sources familiar with the deal have valued the transaction at approximately $70 million. Cadence Union Station is the first multifamily project to open in Denver's Union Station neighborhood. The apartment community welcomed its first residents in January and is currently 20 percent leased. “We had a distinct advantage by being the first to build in the Union Station neighborhood, acquiring what's arguably the best location and building an asset that we believe will show itself to be one of enduring value,” says David Zucker, principal of Zocalo Community Development. “Invesco's focus on the strength of Union Station, the location of Cadence and its quality are aligned with our development ethics. We sense in Invesco a shared commitment of stewardship, making them an apt purchaser of this incredible asset.” Zocalo will continue to mange and lease the property, which features a 13th story rooftop pool and fitness center and a community jazz room, complete with …

BETHESDA, MD. — RLJ Lodging Trust (NYSE: RLJ) has closed on the sale of a portfolio of 11 hotels in Colorado, Florida, Indiana, Michigan, Nevada and Texas for approximately $85 million. The Bethesda-based trust sold the assets to Sage Hospitality, according to media reports. The estimated combined 2013 revenue per available room (RevPAR) for the portfolio was approximately $68. The sale of the portfolio will improve the company’s RevPAR and geographic profile, according to RLJ Lodging Trust. “This transaction enabled us to make significant progress on our capital recycling program,” says Thomas Baltimore Jr., president and CEO. “The sale of these assets are immediately accretive to our portfolio’s RevPAR and the net proceeds will be reinvested into higher-yielding hotels, such as our recently announced Hyatt deal. We are very pleased by the demand we saw while marketing these assets and we remain committed to expanding our capital recycling program.” The hotels include: · the 125-room Hyatt House Colorado Springs in Colorado Springs, Colo. · the 90-room Courtyard Denver Southwest Lakewood in Lakewood, Colo. · the 102-room Residence Inn Denver Southwest Lakewood in Lakewood, Colo. · the 126-room SpringHill Suites Gainesville in Gainesville, Fla. · the 95-room Residence Inn Indianapolis Airport …