Top Stories

SAN DIEGO — Global real estate firm Hines says the 415,000-square-foot building under construction at La Jolla Commons in San Diego will become the nation's largest carbon-neutral office building to date. The 13-story tower will utilize a combination of high-performance building design, directed biogas and on-site fuel cells that will annually generate more electricity than tenants will use. The fuel cells, acquired from Bloom Energy, will generate approximately 5 million kilowatt hours of electricity annually, which is roughly the equivalent of energy required to power 1,000 San Diego homes. Methane needed to power the fuel cells will be acquired from carbon-neutral sources, such as landfills and wastewater plants, and placed into the national natural gas pipeline system. Houston-based Hines and equity partner J.P. Morgan Asset Management have teamed up to develop the project. Construction began in April 2012 and completion is scheduled for mid-2014. The building will be fully leased and occupied by LPL FInancial LLC, an independent broker-dealer, institutional service provider and wholly owned subsidiary of LPL Financial Holdings (NASDAQ: LPLA). Both Hines and engineering firm WSP Flack + Kurtz spent time researching available technology for the project. “LPL Financial at La Jolla Commons is one further step in …

RICHARDSON, TEXAS — Dallas-based KDC, a commercial real estate development and investment firm, plans to acquire 186 acres of land in Richardson to develop a $1.5 billion master-planned project. The mixed-use development, which will include office, healthcare, retail and multifamily components, will be located near the intersection of President George Bush Turnpike and Interstate 75 (North Central Expressway). Financing is in place for the development, but details aren’t available at this time. The Richardson City Council approved rezoning for the tract, which has paved the way for the project’s development. The project will be adjacent to the Dallas Area Rapid Transit (DART) Bush Turnpike Station on its red line. KDC anticipates closing on the land acquisition before the end of the year. “We started out with a vision of what this property could be and worked alongside the City of Richardson to make it happen,” says Steve Van Amburgh, CEO of KDC. “The development will have a great mix of amenities in a pedestrian friendly environment that is inviting to corporate users and the community.” “The site is one of the finest undeveloped properties in the Dallas/Fort Worth Metroplex, and perhaps in any major U.S. metropolitan area,” adds Walt Mountford, …

ALBANY, ORE. — Vintage Real Estate LLC has acquired the 406,500-square-foot Heritage Mall, an underperforming shopping center in Albany, from a consortium of lenders for an undisclosed sum. Albany is one of the fastest growing cities in Oregon. A major shopping destination for the city and Linn County, Heritage Mall features 52 major retailers, boutiques and restaurants. Among the retailers are Target, Sears, Ross Dress for Less and Old Navy, Maurices, rue21, Zumiez, Famous Footwear, GameStop and Bath & Body Works. Heritage Mall is located on 33 acres west of Interstate 5 and just north of Corvallis, home of Oregon State University and its more than 26,000 students. The mall, which opened in 1988, was remodeled in 2006 and currently is 50 percent occupied. This transaction removed $38 million in debt from the property. Heritage Mall, which opened in Albany, Ore., in 1988, was remodeled in 2006. Albany’s population of 50,158 has risen nearly 21 percent since 2000. However, the area’s unemployment rate stood at 10.4 percent in October, well above the national average. “We have the capacity, both in terms of capital and management, to reposition the mall and improve its performance by adding many national tenants,” says Fred …

SAN JOSE, CALIF. — The Sobrato Organization has sold the 508-unit Willow Lake Apartment Homes in San Jose for $148 million. Essex Property Trust Inc. (NYSE: ESS) purchased the community for approximately $291,000 per unit. Willow Lake was built in three phrases: 282 units in 1989, 126 units in 1990 and 100 units in 1997. The community offers a range of one-, two- and three-bedroom floor plans averaging 929 square feet. The property features a large lake, two resort-style pools and three spas, as well as a fitness center, community lounge and business center. Stan Jones, Phil Saglimbeni, and Sal Saglimbeni with Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap, represented the seller in the transaction. “With 12.5 percent rent growth over the last 12 months and an average occupancy of 96.4 percent, San Jose’s market fundamentals are strong and getting stronger,” says Jones. “Rental demand here is now at one of the highest levels since 2001, resulting in a year-over-year vacancy decline of 60 basis points. Furthermore, rental demand growth is predicted to exceed additions to existing stock.” The multifamily community is located with convenient access to Caltrain and the VTA Light Rail Network. It …

NEW YORK CITY — Cole Real Estate Investments has acquired Canarsie Plaza, a 278,000-square-foot shopping center located in the Canarsie neighborhood of Brooklyn in New York City. The $124 million transaction is one of Cole’s largest multi-tenant retail transactions of the year. Acadia Strategic Opportunity Fund II LLC was the seller. Built in 2011, the property is 96 percent occupied and is anchored by several well-known national tenants, including BJ’s Wholesale Club, Planet Fitness and PetSmart. The property also includes a number of additional specialty retailers such as Vitamin Shoppe, Dunkin’ Donuts, and T-Mobile. “This high-quality asset is attractively located in Brooklyn, a vibrant and densely populated borough of New York City,” says Thomas Roberts, executive vice president and head of real estate investments for Phoenix-based Cole. “Canarsie Plaza holds long-term leases with nationally recognized retailers who benefit from the positive retail traffic created by the location’s dense population and nearby public transportation.” Thomas Falatko, vice president of acquisitions, multi-tenant retail, represented Cole in the transaction. Andrew G. Scandalios, senior managing director of HFF, represented the seller. Cole primarily targets net-leased single-tenant and multi-tenant retail properties under long-term leases with creditworthy tenants, as well as single-tenant office and industrial properties, …

HOUSTON — A national developer known for large-scale mixed-use projects has announced plans for a $450 million development in Houston. San Diego-based OliverMcMillan plans to break ground this spring on River Oaks District, which will combine commercial and residential buildings on Westheimer Road, two blocks inside the Loop. The 15-acre site is about a half-mile from the Galleria Mall. Plans call for 270,000 square feet of retail, high-end restaurants, outdoor cafes and a movie theater, along with 100,000 square feet of office space. The developer will also construct 278 residential units. When the project was first announced in 2007, before the recession, it included two luxury hotels and a slightly higher square footage of retail, office and residential space, according to the Houston Business Journal. The Houston City Council granted OliverMcMillan a rebate of up to $19 million, provided that stores in the project generate that much in sales tax. OliverMcMillan says it will aim to create a “timeless environment” with walkable streets, a town center canopied by Texan Oak Trees, individualized storefronts and covered outdoor dining. The architectural design will also feature native Texas stones and design elements. “Houston is already a shopping, dining and residential investment destination for …

NEW YORK CITY — Related Cos. and OMERS Investment have teamed up to build Hudson Yards, a 26-acre mixed-use development that is expected to be the centerpiece of midtown Manhattan’s Central Business District expansion. Hudson Yards is reported to cost approximately $15 billion, according to multiple news sources. The site was once a rail yard and the largest single piece of undeveloped property in Manhattan. The partnership kicked off Hudson Yards’ construction on Tuesday by breaking ground on the 1.7 million-square-foot South Tower, a 47-story office building located at the northeast corner of 10th Avenue and 30th Street in Manhattan. Upon completion, Coach Inc., the New York City-based designer and maker of luxury handbags, will occupy nearly 740,000 square feet in the building to use as its global headquarters. “Coach continues to expand both in America and around the world, underscoring the need for a new global headquarters that is as modern and dynamic as the brand itself,” says Lew Frankfort, chairman and CEO of Coach Inc. “New York is part of Coach’s DNA and we are as bullish on the revitalization of the Hudson Yards neighborhood as we are on the unparalleled vibrancy and future of New York City.” …

MIAMI BEACH, FLA. — RLJ Lodging Trust (NYSE: RLJ) has agreed to acquire the 231-room Hilton Cabana Miami Beach for $71.6 million, or about $310,000 per key. The property opened as a hotel in the early 1950s and was closed and gutted in 2007 in anticipation of a condominium conversion. The conversion did not materialize and the property went into foreclosure. In 2011, the current owners purchased the property to develop a new hotel, which they expect to complete and open in the fourth quarter of 2013 as a Hilton. “We are thrilled to be entering the Miami Beach market. We see this acquisition as an excellent opportunity to enter a gateway market with multiple demand generators,” says Thomas Baltimore Jr., president and CEO of RLJ Loding Trust, a real estate investment trust based in Bethesda, Md. “Furthermore, the Hilton brand is underrepresented in this market which should provide for outsized performance from this hotel.” The hotel is located directly on the beach along the 6200 block of Collins Avenue in Miami Beach. Several of the buildings along Collins Avenue and Ocean Drive are historic in nature. Therefore, the market's strict regulatory environment will make new development difficult, according to …

PLANO, TEXAS — Granite Properties will break ground on Granite Park Four, a 300,000-square-foot, speculative office building, in the first quarter of 2013. The property will be the fourth Class A office building in Granite Park, Granite’s 3 million-square-foot master-planned development in the Upper Tollway/West Plano submarket. “There’s been virtually no construction here since 2008 and with Granite Park’s excellent accessibility and numerous surrounding amenities we feel strongly that Granite Park Four will be received well,” says Greg Fuller, chief operating officer of Granite Properties. Also slated for construction early next year is the 300-room Hilton Granite Park, which will be centrally located within the master-planned community. The conference hotel will offer 37,000 square feet of conference space. Granite Park Four and Hilton Granite Park have a combined value of more than $150 million, according to the Dallas Morning News. “We feel it’s the right time to move forward,” explains Fuller. “Vacancy in this submarket is 5 percent and the existing buildings in Granite Park are 95 percent leased.” BOKA Powell is the architect for Granite Park Four, which will take 14 months to build. Granite plans to choose a contractor for the building by mid-December. Granite Properties is a …

CHICAGO — Brennan Investment Group LLC, through a joint venture with Gatehouse Bank plc, has acquired a $178 million industrial portfolio. The 19 properties are located across 13 states. The portfolio is 100 percent leased to 16 tenants with a weighted-average remaining lease term of 14 years. The Royal Bank of Scotland plc provided Shariah-compliant financing for this second portfolio acquisition. Brennan and Gatehouse has acquired two portfolios totaling 39 properties with an aggregate purchase price of nearly $350 million. “We are pleased to complete our second acquisition with Gatehouse this year. U.S. industrial markets continue to demonstrate improving fundamentals, with nearly every major market posting positive absorption and rising occupancies,” says Michael Brennan, chairman and managing principal of Chicago-based Brennan Investment Group. “The acquisition of 19 critical-use facilities, located in major markets, provides our investment a high degree of predictability both now and in the future.” “We are pleased to complete another major acquisition with Brennan Investment Group,” says Fahed Boodai, chairman of the board of directors at Gatehouse Bank. “Gatehouse seeks to partner with best-in-class operators such as Brennan with demonstrated expertise in specific real estate sectors. This venture will capitalize on Brennan's expertise in U.S. industrial real …