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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 …

ATLANTA — San Diego-based developer OliverMcMillan has secured a $167 million loan to finance the construction of Buckhead Atlanta, a mixed-use project located in Atlanta’s upscale Buckhead neighborhood. The loan will cover the full construction of the six-block, eight-acre complex, which includes luxury retail, residential and office space. Five lenders are involved, including PNC Bank N.A., CIT Finance LLC, Compass Bank, Regions Bank and SunTrust Banks. At approximately 1.5 million square feet, the completed project will include 300,000 square feet of upscale retail stores, restaurants and cafes, more than 100,000 square feet of office space and 370 luxury high-rise residences. While construction began in August 2012, pace on the project is now increasing, with shops expected to open in mid-2014. “We are so pleased to continue to move forward with great momentum,” says Morgan Dene Oliver, CEO of OliverMcMillan. “We’re extremely thankful to all of the talented individuals who have helped us to get to this point in realizing our vision for this world-class mixed-use project.” Located at the intersection of Peachtree and West Paces Ferry roads, Buckhead Atlanta will feature lush landscaping, pedestrian-friendly streets and varied storefronts to create a unique shopping district. Retailers will include a mix of …

LOS ANGELES — Capri Capital Partners LLC, on behalf of an institutional investor, and Kennedy Wilson (NYSE: KW) have acquired all of the leasehold interest in Esprit, a multifamily mixed-use project in Los Angeles, for $225 million. The 18-acre property includes 437 units and a 227-slip anchorage facility in Marina del Ray. The five-building apartment complex offers a range of studio to four-bedroom units that all feature views of the water, in-unit washer and dryers, 9-foot vaulted ceilings and private patios. The community also includes a pedestrian promenade that runs alongside the waterfront directly in front of the apartment complex. “Esprit is considered the finest multifamily mixed-use property in Marina del Rey, and an off-market transaction to acquire a property of this size and quality is very rare,” says Kurt Zech, president of Kennedy Wilson multifamily management group. “The property was stabilized at 94 percent occupancy in late 2012 after a lengthy three-year lease-up period and still has plenty of upside for rental growth in a steadily improving economy.” Beginning immediately, the companies will begin a series of renovations at Esprit to enhance the marketability of the asset. Capri and Kennedy Wilson will invest approximately $5.3 million in additional capital …

SANTA BARBARA, CALIF.— Chesapeake Lodging Trust (NYSE: CHSP) has acquired the fee simple interest in the Hyatt Santa Barbara and two adjoining properties, totaling 200 rooms for $61 million, or $305,000 per key. Chesapeake entered into a management agreement with HEI Hotels and Resorts to operate the hotel under a franchise agreement with a Hyatt affiliate. The property includes the 171-room Hyatt Santa Barbara, the 24-room Parkside Inn and a five-villa apartment building that is currently used for long-term, monthly lease stays. The hotel is located near the Pacific Ocean and is within walking distance to the shops and restaurants in downtown Santa Barbara. “We are very excited to acquire the recently renovated Hyatt Santa Barbara while we continue to grow our relationship with Hyatt,” says James Francis, president and CEO of Chesapeake. “The city is an extremely popular travel destination with its Mediterranean climate, miles of coastline and beaches, wineries, upscale shopping and restaurants.” Hyatt Hotels Corp. recently completed a $12 million renovation of the property, including all guestrooms, corridors, meeting spaces and the registration lobby. Chesapeake will reposition the restaurant and bar with a new design and service concept, drawing inspiration from the picturesque ocean front beach views. …