Top Stories

AUSTIN, TEXAS — A joint venture between Thomas Properties Group (NASDAQ: TPGI) and the California State Teacher’s Retirement System (CalSTRS) has acquired an eight-building office portfolio totaling 3 million square feet for $859 million. The portfolio includes Frost Bank Tower, 300 W. 6th St., One American Center, San Jacinto Center and One Congress Plaza in downtown Austin and Westech 360, Park Centre and Great Hills Plaza in suburban Austin. “In keeping with our strategic plan to acquire wholly owned or equally controlled properties that are accretive to our after-tax cash flow, we are pleased with the opportunity to increase our investment in Austin and more particularly, in a group of assets that we consider to be crown jewels,” says James Thomas, CEO and chairman of Thomas Properties Group. “We are very encouraged by the continued strength in the Austin market and the prospects for future growth.” The seller was TPG-Austin Portfolio Syndication, a venture between Lehman Brothers Holdings, an offshore sovereign wealth fund and a previous joint venture between TPG/CalSTRS. A subsidiary of Thomas Properties Group is the managing member with a 50 percent interest and CalSTRS owns the other 50 percent. Thomas Properties Group has also entered into an …

NEW YORK CITY — Marriott has signed an agreement to open a 125-room Residence Inn at Metro Center Atrium, a mixed-use project located within the 42-acre Hutchinson Metro Center complex. The Marriott at Metro Center Atrium will be the first luxury hotel in the Bronx. “We’re thrilled that Marriott, one of the world’s premier hospitality companies, has chosen this location,” says Joseph Simone, president of Simone Development. “Metro Center Atrium is unique in the Bronx. There’s nothing quite like it available anywhere else in the borough, and adding this luxury hotel property further builds our momentum toward completion of this thriving mixed-use project.” Simone Development Cos. is developing the 370,000-square-foot Metro Center Atrium, which will include office, medical and retail space in addition to the hotel. The developer has also signed LA Fitness to a 43,000-square-foot lease. Completion of the Marriott is slated for 2014. “Today is a great day for the Bronx,” says James Vacca, New York City council member. “We welcome Marriott as the borough’s first hotel with open arms and hope that it is a signal of even more great things to come. Clearly Marriott has recognized that the Bronx is a destination for New Yorkers and …

GREENWICH, CONN. — Greenwich-based Wheelock Street Capital has acquired 15 hotels in two separate, unrelated transactions totaling $221 million. Wheelock acquired a 12-hotel portfolio from affiliates of Inland American Real Estate Trust for approximately $116 million in a deal that closed last Thursday. The next day, Wheelock closed on the acquisition of three full-service hotels from Sunstone Hotel Investors (NYSE:SHO) for approximately $105 million. “We are delighted to be adding this collection of high-quality hotels to our portfolio,” says Jonathan Paul, managing partner at Wheelock Street Capital. For the 12-property Inland transaction, GE Capital, Franchise Finance provided newly originated senior financing. The rest was financed through a combination of assumed CMBS loans. CBRE Group and Maxim Hotel Brokerage represented Inland in the transaction. The 12-property portfolio is located primarily in the Southeast with other hotels located in Arizona, Texas and Illinois. Ten of the 12 hotels are branded under long-term license agreements with affiliates of Hilton and Marriott International. The other two hotels are licensed by affiliates of Choice Hotels and Intercontinental Hotels Group. McKibbon Hotel Management and the North Central Group will manage the 12-property portfolio. For the three-property portfolio sold by Sunstone, Wheelock assumed the hotels’ existing CMBS …

NEW YORK CITY — Strategic Hotels & Resorts (NYSE: BEE) has closed on the previously announced $362.3 million purchase of the 509-room Essex House Hotel, located in New York City. “We are proud to once again be involved with this marquee asset, especially given its attractive deal terms, unique and enviable Central Park South location and tremendous upside potential,” says Laurence Geller, president and CEO of Strategic Hotels. The company established a joint venture agreement with an affiliate of KSL Capital Partners to fund the equity portion of the transaction. Strategic Hotels will own 51 percent of the joint venture. The partnership closed on a $190 million first mortgage loan from Bank of America to fund the balance of the purchase price. Construction will begin immediately on property improvement plans to distinguish the property under the JW Marriott flag. Additionally, Marriott International will begin operating the hotel tomorrow, Sept. 18. “Consistent with our strategy of being an opportunistic investor, we moved quickly to take advantage of this highly compelling opportunity,” Geller says. “We are thrilled to have both another irreplaceable asset with Marriott International and to launch a new partnership with KSL Capital Parters, one of the industry’s most admired …

ATLANTA — Atlanta-based developer Carter recently secured a string of major projects across the U.S. — totaling more than $100 million — and has unveiled a new brand identity. This month, the company started construction on the Highpoint at Columbus Commons, a $50 million residential and retail project in downtown Columbus. The 325,000-square-foot project is set for completion in 2013. Carter will also develop a $73 million mixed-use project in Cincinnati and a $40 million student housing complex in Oxford, Miss., known as Highland Square. Additionally, the company is planning about $100 million in deals in Louisiana and Oklahoma. Scott Taylor, Carter's president, says the projects are part of the company's new focus after selling its property management groups to Cassidy Turley last year. Carter's strategy now includes developing student housing, multifamily and mixed-use projects in core areas, along with an expanded consulting and advisory practice. “Our new developments in Ohio, Michigan and Mississippi are part of the plan we announced nine months ago and indicative of what Carter is today,” says Taylor. “As our firm changed, we needed to refresh our identity and brand, and we've done that well.” According to company leaders, Cater's new logo and tagline (Built …

ATHENS, GA. — Ethicon, a surgical care goods provider, plans to invest $185 million to renovate and expand its Georgia facility, located at 655 Ethicon Circle in Cornelia, near Athens. The company is expected to create 75 positions by 2016. “Ethicon has been an important business partner and a growing member of Georgia’s health care products manufacturing community for more than 30 years, so this expansion speaks well of our state’s supportive business environment,” says Gov. Nathan Deal. “We look forward to the impact this expansion will have for the Athens-Clarke County community and for Georgia’s thriving healthcare industry.” The 100,000-square-foot expansion will complement the current facility in the production of suture raw materials. The building will be located on the current site of Ethicon’s sister company, Noramco, which manufactures pharmaceutical ingredients used in medications and medical devices. Additionally, Ethicon plans to make capital improvements to the Cornelia facility, which currently produces the majority of the world’s supply of surgical sutures. Both Ethicon and Noramco are subsidiaries of Johnson & Johnson. “We are pleased to be making this investment to enhance our suture manufacturing capabilities,” says Gary Pruden, worldwide chairman of the global surgery group at Johnson & Johnson Medical …

CARMEL, IND. — Senior Quality Lifestyles Corp. (SQLC) and its affiliate, Mayflower Communities, in a partnership with St. Vincent Health, have received financing through the sale of $119 million in revenue bonds for The Barrington of Carmel, a 501(c)3 nonprofit life care community under development in Carmel. B.C. Ziegler and Co. served as the bond underwriter for the transaction. “We are pleased to complete the successful financing of The Barrington and excited to have construction of the new community already underway,” says Charles Brewer, president and CEO of SQLC. “The Barrington will add to Carmel’s already superb reputation as one of the best places to live in the country.” The 264-unit seniors housing community is located at Guilford Road. The Barrington will contain 134 independent living apartments, 56 residential assisted living apartments, 26 memory support suites and 48 skilled nursing beds. Amenities will include fine dining, a bistro, fitness and wellness centers, creative arts studio, salon and spa, library, housekeeping and scheduled transportation. “The financing of The Barrington speaks highly of the reputation of SQLC and Mayflower within the financial community,” says Rich Scanlon, managing director of Ziegler Capital Markets, Senior Living Finance. “The expertise these two organizations bring to …

LAUREL, MD. — Brooklyn, N.Y.-based Hampshire Properties has purchased the 982-unit Laurel Square, a multifamily community located at 13301 Arden Way in Laurel, for $102 million. Bozzuto Group and Fannie Mae were the sellers. The buyer plans to invest $10 million for amenity upgrades. The property, which was constructed in 1970, is 88 percent occupied. Bozzuto acquired the property in June 2006 for $86 million from RIMSI Corp. Bill Roohan, Michael Muldowney, Michael Rudolph, Martha Hastings and Andrew Boyer of CBRE Group represented the sellers in the transaction. “With a 5.9 percent cap rate, this distinctive property demonstrates soaring interest in one of the region’s growing epicenters,” says Roohan, vice chairman of CBRE Group. “The base realignment moves surrounding Fort Meade are creating an increasingly strong center for affordable housing in Laurel and other fast-growing communities of the Baltimore-Washington corridor.” Hampshire Properties’ current holdings are valued in excess of $500 million. Savannah Duncan

SAN DIEGO — Chesapeake Lodging Trust (NYSE:CHSP) has purchased the 429-room Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira Road in San Diego, for $62 million. The hotel sits on a 19-acre, waterfront site that includes a 187-slip marina, which is currently 97 percent occupied. Chesapeake Lodging partially funded the purchase with available cash, while the balance was paid from its revolving credit facility. The purchase price equates to approximately $144,500 per key. “We are thrilled to expand our strategic relationship with Hyatt and purchase our second high-quality San Diego hotel, which is located directly on the bay with spectacular ocean views,” says James L. Francis, president and CEO of Chesapeake Lodging. “With the previous owner’s extensive renovation completed in 2007 and our planned $6 million softgood refresh, the Hyatt is the best positioned asset within the immediate marketplace.” The hotel features the full-service Blue Marble spa, the Red Marlin Restaurant Bar and Terrace with panoramic views, three lagoon-shaped pools each with its own 120-foot water slide, 37,000 square feet of meeting space and a water boat taxi service to a VIP entrance to Sea World. Most of the guestrooms average 400 square feet, while 137 of …

ESCONDIDO, CALIF. — Realty Income Corp. (NYSE: O) has signed an agreement to acquire all of the outstanding shares of American Realty Capital Trust (NASDAQ: ARCT), an owner and operator of single-tenant commercial properties, for $2.95 billion. The deal is expected to close in the fourth quarter of 2012 or in the first quarter of 2013. Realty Income will acquire 501 properties, bringing its total portfolio to more than 3,250 properties. Approximately 75 percent of the rental revenue at the properties stems from investment-grade tenants, including FedEx, Walgreens, CVS/pharmacy, the Government Services Administration, Dollar General, Express Scripts, PNC Bank and Whirlpool. “This acquisition comprehensively advances Realty Income’s strategic objectives of increasing its revenue generated by investment-grade tenants and further diversifying its portfolio outside of the retail industry,” says Tom Lewis, CEO of Escondido-based Realty Income. The acquisition will be financed by the buyer directly issuing $1.9 billion of its common stock to ARCT shareholders, the assumption of $526 million of debt and the immediate repayment of approximately $574 million of outstanding debt and transaction expenses. “This transaction will institutionalize the notion of durable, defensive dividends for our shareholders by allowing them to become owners on a very favorable basis of …