Top Stories

BEACHWOOD, OHIO — DDR Corp. has agreed to pay $1.46 billion for full control of 30 shopping centers the company owns in a joint venture. The real estate investment trust based in Beachwood, Ohio, will buy a 95 percent stake in the properties from Blackstone Real Estate Partners VII. The portfolio is primarily composed of prime power centers, such as Shoppers World in Boston, Fairfax Towne Centre in Washington, D.C., and Riverdale Village in Minneapolis. The transaction is set to close later this year and is expected to significantly boost DDR's cash flow generated by the high-quality, large-format centers. “”We are very pleased to add these outstanding assets to our wholly owned portfolio,” says Daniel Hurwitz, DDR's chief executive officer. “It was our goal to accomplish this upon the initial formation of the venture with Blackstone, and we thank them for being outstanding partners. We look forward to our continued relationship.” DDR and Blackstone formed a joint venture in 2012 and purchased 46 shopping centers across 20 states for $1.4 billion. Top tenants by base rent at the properties include TJX Cos., Kohl's, PetSmart, Dick's Sporting Goods and Best Buy. Blackstone took a 95 percent stake in the joint venture, …

MIAMI BEACH, FLA. — Bjarke Ingels Group (BIG), an international partnership of architects, designers, builders and planners, has unveiled its plans for the 52-acre convention center redevelopment in Miami Beach. BIG’s vision for the new convention center is estimated to cost $1.1 billion, as reported by the South Florida Business Journal. The existing convention center, which is widely considered outdated, was built in 1957 and underwent a $92 million renovation in 1989. The Miami Heraldreports that BIG, along with development partner Portman-CMC, a partnership between Atlanta-based Portman Holdings and Miami-based CMC Group, are competing against South Beach ACE for the contract to redevelop the convention center. South Beach ACE’s construction estimate for its plan is proposed at $1.2 billion, according to the South Florida Business Journal. The Miami Beach City Commission is expected to select the winning project team in June, according to The Miami Herald. Portman-CMC’s construction plan calls for the city to be responsible for approximately $551 million of the development cost, while South Beach ACE’s plan calls for the city to be responsible for $625 million, according to the South Florida Business Journal. BIG has decided to plan the redevelopment of the existing convention center around a …

WATERTOWN, MASS. — Athenahealth Inc. has finalized its purchase of the Arsenal on the Charles, a 760,000-square-foot office campus in Watertown for $168.5 million. The 11-building complex, whose historic buildings date back 200 years, is located about 10 miles from downtown Boston The company, which provides electronic record and billing systems to hospitals and other medical industry clients, purchased the office campus from Boston-based Harvard University. In December, Athenahealth disclosed that it had agreed to pay $168.5 million to acquire the parcel from Harvard University. The campus already serves as Athenahealth’s headquarters, but executives say buying the property will allow them to expand the business in coming years. The company moved into the property in 2005 as a tenant and occupied 133,000 square feet. Due to its rapid growth, the company sought up to 500,000 square feet for its corporate headquarters. “The Arsenal on the Charles offers Athenahealth everything we could ask for in a headquarters. Its open and expansive architecture, outdoor campus feel, strong community, and proximity to Boston fit with our culture,” says Jonathan Bush, chairman and CEO of Athenahealth. Given the lack of existing product and the high expense of new construction, the Arsenal on the Charles …

WINSTON-SALEM, N.C. — Wexford Science & Technology LLC, Wake Forest Baptist Medical Center’s development partner in the Wake Forest Innovation Quarter, is investing $150 million to renovate two former Reynolds Tobacco buildings in downtown Winston-Salem. The investment brings Wexford’s total investment in the Innovation Quarter to more than $250 million, the largest capital investment in the history of downtown Winston-Salem, according to the company. The two buildings, formerly part of the “90 Series,” will be named 525 Vine and 635 Vine to represent their locations. Together, the two buildings will contain 473,000 square feet. The 230,000-square-foot 525 Vine will be developed for multi-tenant use, including labs, offices and educational facilities. Inmar, which operates commerce networks to connect retailers, manufacturers and service providers, will establish its corporate headquarters at 635 Vine. Wexford expects to complete the 243,000-square-foot renovation during the first quarter of 2014. “This is a further significant milestone in our progress to create a dynamic hub for innovation in medical science and information technology in Winston-Salem,” says Eric Tomlinson, chief innovation officer for the Wake Forest Baptist Medical Center and president of the Wake Forest Innovation Quarter. “We are delighted by Wexford's work and look forward to them working …

CLEVELAND — KeyBank Real Estate Capital, the commercial real estate business unit of KeyCorp (NYSE: KEY), has entered into a series of agreements that will substantially increase its commercial mortgage servicing business. KeyBank has agreed to purchase certain commercial mortgage servicing rights from Bank of America under a pact with Bank of America, N.A. As of March 31, Bank of America’s commercial mortgage servicing portfolio totaled approximately $110.5 billion. This transaction also includes a CMBS special servicing portfolio of about $14 billion. The transaction price was not disclosed. KeyBank will purchase substantially all of the third-party CMBS and special servicing rights from Bank of America's Global Mortgages & Securitized Products business. This portfolio also includes servicing for a variety of private investors and is subject to investor consent. The transaction, which is expected to close in the second quarter, does not impact Bank of America's commercial real estate banking business. Upon completion of this deal, KeyBank’s commercial mortgage servicing portfolio will be among the top three largest named servicers of commercial and multifamily loans in the U.S., with a servicing portfolio of approximately $205 billion. Simultaneously, KeyBank has entered into a long-term sub-servicing agreement with Berkadia Commercial Mortgage LLC. Under …

ALEXANDRIA, VA. — Real estate investment company Lubert-Adler has teamed up with The Laramar Group to buy a 530-unit apartment complex in Alexandria for $78 million. The property, named Hunting Point, is located just south of Old Town Alexandria along the Potomac River. The Virginia Department of Transportation (VDOT) was the seller. VDOT acquired the property in 2002 through eminent domain to allow for construction of the new Woodrow Wilson Bridge. The state agency demolished one of the complex's three buildings and used a large portion of the property's available land for the bridge. Rents at the property remained relatively frozen under the agency's ownership, which are 30 to 40 percent below market rate, according to a press release by Lubert-Adler. It also hasn't been upgraded in years. “This was a flat tire that we can transform into a Class A apartment community,” says Dean Adler, co-founder of Lubert-Adler Partners LP, based in Philadelphia. “There is sentiment in the market that multifamily properties are overpriced and there are no longer opportunities to generate attractive profits. We have a contrary view. Stabilized assets may be overpriced, but value-add assets are on the rise because of the overleveraged environment since 2008. We …

NEW YORK CITY — Hines has announced that a subsidiary of the Hines U.S. Core Office Fund LP has selected buyers for 499 Park Avenue and 425 Lexington Avenue, two trophy office buildings in Manhattan. The individual sales prices weren’t disclosed, but the combined sales price totals more than $1 billion. Hines has entered into purchase and sales agreements with each of the buyers and is anticipating closing both transactions in the summer. “We are very pleased with the outcome of this competitive sales process,” says Sherri Schugart, senior managing director, as well as president and CEO of Hines’ Core Fund. “These trophy assets will deliver exceptionally strong returns to our investors.” Hines’ Core Fund selected an institutional fund managed by American Realty Advisors as the buyer of 499 Park Avenue, a 28-story, 300,000-square-foot boutique office building. American Realty Advisors has more than $5 billion in assets under management. The firm’s portfolio includes office, industrial, multifamily, retail and other properties nationwide. “499 Park is a one-of-a-kind asset, as is evidenced by the diversity and strength of bidders in this extremely active bidding process,” remarks Darcy Stacom, vice chairman and head of the Investment Properties group for CBRE’s New York office. …

NEW YORK CITY — Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT), with its owner and developer partners, have invested more than $400 million to revitalize its New York City portfolio of hotels. Newly renovated properties include the Sheraton brand’s flagship hotel Sheraton New York Times Square Hotel, W New York–Times Square, W New York–Union Square, W New York, The Westin New York at Times Square and The Westin New York Grand Central. Starwood, which has 21 hotels in New York City, has also expanded its New York City portfolio with the addition of three hotels, including The Chatwal hotel, Sheraton Tribeca New York Hotel and W New York–Downtown. “We have not only made a significant investment in our New York City hotels, but have also added even more breadth to our portfolio through strategic conversions in many of the city’s most dynamic neighborhoods,” says Mary Casey, senior vice president of sales, North America, of Starwood Hotels & Resorts. The Sheraton brand’s flagship hotel, Sheraton New York Times Square Hotel, completed its top-to-bottom renovation in March. Its fitness center, all 1,781 guestrooms and suites, public areas and meeting facilities have been renovated. The hotel’s 60,000 square feet of fully renovated …

BIRMINGHAM, ALA. — Multi Housing Advisors (MHA) has brokered the sale of five apartment communities, which total 1,060 units throughout Alabama, for an aggregate purchase price of approximately $68.2 million. Jimmy Adams and George Bacon of MHA’s Birmingham office represented an affiliate of Continental Properties in the sale of two Class A multifamily properties in northern Alabama. The complexes include the 360-unit Springs at Madison, which Somerset Partners acquired for $34.9 million, and the 276-unit Springs at Huntsville, which was acquired by Panther Properties for $25.5 million. Adams also represented a special servicer in the $1.25 million sale of the 152-unit Barrett in Mobile to JW Adcock Properties. Additionally, Bretwood LLC acquired the 130-unit Barrington Park and the 142-unit Manchester Park, both of which are located in Mobile, for a total of $6.5 million. Adams represented the seller, another special servicer, in the transactions. “These transactions demonstrate our proven ability to take a wide range of multifamily listings — from REO properties to Class A assets — and find the right private-capital buyers for them,” says Adams, a managing director of MHA who heads the firm’s Birmingham office. “The sales also highlight the significant increases in private-capital investments in the …

SIOUX CITY, IOWA— The Sioux City Hotel & Conference Center, a 12-story structure that includes 193 hotel rooms, 13,300 square feet of meeting space and what is believed to be the best views in town from the top-floor ballroom, is for up for sale. Investment sales specialist HVS Capital Corp. will market the hotel, which is located at 707 Fourth St. between the Historic Fourth Street entertainment district and the site of the planned $118.5 million Hard Rock Casino that is slated to break ground this July and open in September 2014. A list price for the hotel — which is connected via skyway to the convention center and Mercy Medical Center — was not disclosed. “The Hard Rock Casino development is the piece de resistance in Sioux City's downtown renaissance and will become an anthem for continued economic development efforts,” says Bill Sipple, executive managing director of Denver-based HVS Capital Corp., which brokers the sale of hotels and also finances the properties. “The Sioux City Hotel & Conference Center is poised to take its place in the revival,” Sipple continued. “An opportunistic buyer can acquire this hotel asset at significant discount to replacement cost, undertake renovations and affiliate the …