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PHOENIX — Six months after announcing their merger, Spirit Realty Capital Inc. and Cole Credit Property Trust II Inc. (CCPT II) have finalized the $7.4 billion agreement, with the new company operating under the Spirit Realty Capital brand name. The stock, operating under the ticker symbol SRC, trades on the New York Stock Exchange. The stockholders of the companies approved the transaction at meetings that took place on June 12. The combined company is one of the largest publicly traded net-lease real estate investment trusts (REITs) in the United States, owning approximately 1,900 properties in 48 states. “The successful completion of this transformative merger establishes us as one of the leaders in the dynamic and attractive net-lease sector of the REIT market, which continues to be an area of increasing focus for institutional investors,” says Thomas H. Nolan Jr., chairman and CEO of Spirit Realty Capital. “By combining with CCPT II, we have made significant progress on the strategic objectives we articulated at the time of our IPO less than one year ago.” The management team of Spirit Realty Capital will lead the combined company, along with a nine-member board of directors, seven of whom are existing board members of …

NEW YORK CITY — Meridian Capital Group LLC has secured $230 million in acquisition financing for the purchase of Steinway Hall building, a 247,000-square-foot, 16-story office building on West 57th St. in Midtown Manhattan. The commercial real estate finance and advisory firm arranged the one-year, interest-only loan on behalf of the borrower, a partnership led by JDS Development Group. Aaron Appel and Moshe Majeski, managing directors of Meridian Capital, originated and executed the fixed-rate financing, which features two six-month extension options. According to the Wall Street Journal, Steinway Musical Instruments Inc. (NYSE: LVB) sold its interest in the Steinway Hall building to the partnership led by JDS Development Group in June. In the transaction, Steinway received a cash purchase price of $46.3 million. Steinway Hall, built in 1924, was designated and registered as a historic and cultural landmark in 2001. Since its construction, the building has been either fully or partially occupied by Steinway & Sons, the famous piano-maker. The façade of the building features an ornate carving above the grand window, and the main room of the building is a two-story rotunda with a domed ceiling. The property is situated between Sixth and Seventh avenues in Manhattan, with direct …

WASHINGTON, D.C. — The District of Columbia can say goodbye to a potential 4,000 new jobs — 3,000 permanent positions and 1,000 construction jobs — if the city council’s vote to pass the Large Retailer Accountability Act is approved by the mayor. The act, which imposes a $12.50 hourly living wage on businesses that have annual revenues of $1 billion or more and spaces greater than 75,000 square feet, has Walmart reconsidering its expansion plans in the city. The living wage is a 50 percent premium over Washington, D.C.’s current minimum wage of $8.25 an hour. The city council approved the bill last week by a vote of 8 to 5 despite threats from Walmart that the company would cancel plans for all six stores it had initially agreed to develop in the district. While three stores have yet to begin construction, Walmart is moving ahead with the three locations that are already under development. Two of the stores are expected to open this fall. Victor Hoskins, deputy mayor for planning and economic development in the District of Columbia, projects that a significant portion of the 4,000 jobs potentially lost would have been filled by residents of the district. Most …

BOSTON — KBS Strategic Opportunity REIT, a public non-traded real estate investment trust based in Newport Beach, Calif., has acquired 50 Congress Street, a 179,872-square-foot office building in Boston, for $51 million. The Nordblom Co. sold the 10-story building, which includes ground-floor retail. Burlington, Mass.-based Nordblom Co. has been affiliated with 50 Congress Street through ownership and management of the property for more than 60 years, according to Peter Nordblom, president of Nordblom Co. “It is a gem of a building,” he says. “We are particularly delighted with the community of companies within the building and pleased to be selling the property to such a quality operator.” HFF marketed the property on behalf of Nordblom Co. and arranged the $51 million sale to KBS. Built in phases between 1910 and 1915, the landmark office building is located in Boston’s financial district. The property’s infrastructure has been modernized and structurally retrofitted with updated amenities. Tenants include high-end gym Fisique and law fims Rice, Heard & Bigelow and Nichols & Pratt. “We are excited to have acquired this beautifully maintained building,” says Shep Wainwright, senior vice president of acquisitions for KBS Capital Advisors LLC, the REIT’s external advisor. “The high ceiling and …

CAMBRIDGE, MASS. — Behringer Harvard and Wood Partners have begun construction of a luxury multifamily community on a 2.4-acre site in Cambridge, a city northwest suburb of Boston. Behringer Harvard Multifamily REIT I Inc. has provided equity capital for development of the 392-unit apartment community. Tentatively called 22 Water Street, the community will include a 15-story residential high-rise. Construction is slated for completion in the first quarter of 2015. The multifamily community is adjacent to the proposed site of Massachusetts Bay Transportation Authority's (MBTA) relocated Lechmere Station, which provides commuter rail services to Boston and its western suburbs. The site is also close to NorthPoint, a 45-acre, master-planned neighborhood that is expected to provide 5.2 million square feet of mixed-use space. CambridgeSide Galleria mall, Kendall Square and TD Garden arena are all approximately one mile away. “We are pleased to be developing this outstanding community in Cambridge with Wood Partners,” says Mark Alfieri, COO of Behringer Harvard Multifamily REIT I. “We expect that convenient access to employment centers in Cambridge and downtown Boston will appeal to our future residents.” Developed and constructed by affiliates of Atlanta-based Wood Partners, the community will feature studio, one- and two-bedroom units, averaging 793 square …

DENVER — Continuing its aggressive expansion program, Value Place LLC has announced plans to develop nine new extended stay hotels in the Denver area with construction to start in early 2014. The company is working with Denver-based broker Steve Markey of David, Hicks & Lampert to explore possible sites and talk with landowners, brokers and commercial real estate firms. Value Place plans to invest more than $63 million to build the nine company-owned hotels, including about $13 million for land acquisition. “While many other hotel companies have stopped building new hotels, we are doing exactly the opposite,” says David Redfern, president of real estate development for Wichita, Kan.-based Value Place. “We don't go into a market and reflag an older hotel, or upgrade and rebrand it. We build every Value Place from the ground up to very exacting standards.” Why Denver? With the help of the Highland Research Group, a specialist in extended stay hotels, Value Place studied 64 markets across the United States for new development opportunities, explains Redfern. Denver ranked at the top of this list due to increasing demand for Value Place and a limited amount of supply or competition. Value Place intends to build the nine …

NEW YORK CITY — RFR Realty and Kushner Cos. have agreed to acquire a six-property portfolio in Brooklyn from the Watchtower Bible and Tract Society of New York Inc. for $375 million. RFR and Kushner, both headquartered in New York City, say they plan to partner with LIVWRK Holdings to reposition the properties as “tech-friendly” office spaces. “We are delighted to partner with Kushner Co. and team with LIVWRK to become the new stewards for these exceptional properties in this burgeoning neighborhood,” says Jason Brown, head of acquisitions at RFR. The 1.2-million-square-foot portfolio of commercial properties includes 117 Adams Street, 175 Pearl Street, 55 Prospect Street, 81 Prospect Street, 77 Sands Street and 90 Sands Street. Most of the sale is expected to close in September, but the 30-story hotel at 90 Sands St. will close separately in 2017, according to the New York Post. “These properties feature large, creative office space right in the heart of the growing Brooklyn tech triangle,” says Jared Kushner, CEO of Kushner Cos. “We look forward to playing a key role in the continued improvement of the neighborhood and advancement of the market.” Asher Abehsera of LIVWRK Holdings describes the portfolio acquisition as a …

ALPHARETTA, GA. — Formation Capital has acquired 36 seniors housing communities in 13 states for an aggregate purchase price of $400 million. The portfolio contains more than 2,600 units, including about 65 percent assisted living, 18 percent independent living and 16 percent memory care facilities. Senior Lifestyles Corp., Frontier Management, Prestige Senior Living and other senior living operators will manage the communities. “This transaction demonstrates Formation Capital’s continued focus on expanding its real estate footprint in private pay seniors housing,” says Brian Beckwith, CEO of Formation Capital. “We believe this portfolio presented a rare opportunity to acquire high-quality real estate managed by best-in-class operating partners. We are excited to begin new strategic relationships with Senior Lifestyles Corp. and Prestige Senior Living, and continue our strong relationship with Frontier Management.” Alpharetta-based Formation Capital is a private investment management firm focused on equity and debt healthcare investment opportunities. Since 1999, the company has invested more than $5.5 billion of capital in seniors housing and care, post-acute services and healthcare real estate. — Brittany Biddy

NEW YORK CITY — A subsidiary of the Hines U.S. Core Office Fund LP has closed on the previously announced sale of 499 Park Avenue and 425 Lexington Avenue in New York City for more than $1 billion combined. The sales generated a sizeable return on investment for Hines and its investors, according to Sherri Schugart, senior managing director, president and CEO of Hines’ Core Fund. The fund sold 499 Park Avenue, a 28-story, 300,000-square-foot boutique office building located at 59th Street and Park Avenue, to an institutional fund managed by American Realty Advisors. The property, designed by I.M. Pei & Partners, was completed in 1980. The fund sold 425 Lexington Avenue, a 31-story, 750,000-square-foot office building, to institutional investors advised by J.P. Morgan Asset Management. The property has been fully occupied since it’s opening in 1987. The original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, are still occupants of 425 Lexington. Murphy/Jahn designed the property. Eastdil Secured LLC and CBRE jointly represented the fund in both transactions. “We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan,” says Tommy Craig, senior managing director of Hines’ New …