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CHICAGO — Debra Cafaro, chairman and CEO of Ventas Inc., the giant healthcare REIT, has observed a troubling trend in the pace of U.S. economic growth since the end of the Great Recession in June 2009. “The last four years, including this year, we’ve had this pattern where people have become more bullish on growth. Everybody thinks things are great, and it turns out to be a head fake. The growth peters out during the end of the year.” Cafaro, whose comments came last Thursday afternoon at the 23rd NIC National Conference for the seniors housing and care industry, turned to prominent economists Austan Goolsbee and Todd Buchholz for some answers. Cafaro moderated a panel focusing on fiscal and monetary policy. The three-day conference at the Sheraton Chicago Hotel & Towers that began Wednesday attracted 2,000 industry professionals, including owners, operators, lenders and brokers. Goolsbee, former chairman of the Council of Economic Advisers under President Barack Obama, is now a professor at the University of Chicago. Buchholz is the former director of economic policy under George H.W. Bush. Shape of recovery The approximate 2 percent annual growth in U.S. gross domestic product is anything but the V-shaped recovery many Americans …

NEW YORK — Boston Properties Inc. (NYSE: BXP) has completed the sale of its 45 percent ownership interest in Times Square Tower for $684 million. An affiliate of Norges Bank acquired the interest on behalf of Norway’s sovereign wealth fund, the Norwegian Government Pension Fund – Global. Times Square Tower is a 1.25 million-square-foot, Class A office tower that includes associated retail space and signage. Developed by Boston Properties and completed in 2004, the building was 99 percent leased at the time of the sale. Mortimer Zuckerman, executive chairman of Boston Properties, told the Wall Street Journal that the company was “extremely pleased to form a new and important relationship with such a strong and reputable organization as Norges Bank, while at the same time once again demonstrating our ability to create and realize value for our shareholders through our development and management expertise.” Boston Properties retains a 55 percent ownership interest, as well as property management and leasing duties following the sale. The REIT formed a joint venture with Norges Bank at the close of the deal. New York City holds the property’s ground lease, the term of which has 76 years remaining. Times Square Tower, which occupies a …

ATLANTA — Today’s perfect storm of low interest rates and availability of debt financing has many sellers garnering top dollar for properties. However, the recent increase in interest rates poses a big risk to the commercial real estate industry, says Dean Adler, co-founder and CEO of Philadelphia-based Lubert-Adler Partners LP, a real estate equity firm with more than $6.5 billion in equity and $16 billion of assets under management. “I think this is the most perilous, difficult market I’ve seen in the last five to 10 years,” says Adler. “If you buy a stabilized income stream today, and you are paying a much higher price for a lower cap rate because rates are low, you could really be whipsawed in three or four years after interest rates rise rapidly.” The insights from Adler came Tuesday morning during a commercial real estate finance and investment conference at the Westin Buckhead Hotel in Atlanta. The law firm of Morris, Manning & Martin LLP and France Media’s InterFace Conference Group jointly produced the daylong event, titled “How Can You Take Advantage of the Recovering Market?” The event attracted hundreds of investors, developers, lenders and financial intermediaries from across the Southeast. From left: Dr. …

HOUSTON — Inland American Real Estate Trust Inc., a non-traded REIT based in Oakbrook, Ill., has closed its sale of 14 Class A multifamily assets in Texas, Oklahoma and Kentucky. Charleston, S.C.-based Greystar, a national property management, investment and development company, purchased the communities from Inland for approximately $460 million, equating to about $105,000 per unit. “Both Inland and Greystar are first-class organizations and this transaction was accretive to both of them,” says David Oelfke, principal and broker of ARA’s Houston office. Atlanta-based ARA represented Inland in the portfolio disposition. “Inland had made strategic investments in the downturn between 2008 and 2011 and had a great basis in the properties, and Greystar has a great infrastructure to implement a value-add strategy on the portfolio. It’s a great win for both groups.” The multifamily portfolio consisted of 4,371 units, most of which are located in Houston (six). The remaining properties are located in Oklahoma City (four), San Antonio (two), Dallas (one) and Louisville, Ky (one). Each property in the portfolio has the opportunity for Greystar to upgrade interiors and community amenities. Oelfke brokered the sale of the assets located in Texas and Kentucky. Oelfke teamed up with David Burnett of Sperry …

TYSONS CORNER, VA. — Northwestern Mutual, Prudential Mortgage Capital Co. and TIAA-CREF have each provided $283.3 million for a total of nearly $850 million in refinancing for Tysons Corner Center, a 1.9 million-square-foot super regional mall in Tysons Corner. The mall is considered one of the most successful malls in the country. “We are thrilled to have made a mortgage loan investment in Tysons Corner Center given the quality of the asset and strong sponsorship. The Macerich Company has once again demonstrated an ability to take a great asset and position it for future sales growth and value creation,” says Tom Zale, a managing director with Northwestern Mutual Real Estate Investments LLC. “This type of transaction enhances our dividend-paying capacity for policy owners while supporting economic growth in the communities in which we do business.” Tysons Corner Center is located at the dense intersection of Chain Bridge Route 123 and Capital Beltway/I-495. The 10.3-year loan carries a 4.1 percent interest rate. Not included in the collateral, but key to the property’s investment appeal, are a 22-story, Class A office tower; 429-unit, 30-story apartment building; and a 17-story hotel that are currently being developed on the property. They will each be …

CHICAGO — Harrison Street Real Estate Capital has completed the sale of a large portfolio of self-storage assets to Public Storage (NYSE: PSA), a publicly traded REIT. Industry sources report the total purchase price was approximately $315 million. The sale represents the largest portfolio transaction to date, surpassing a $300 million sale earlier this year. The portfolio consists of 43 properties in five states and was assembled over time by the firm from 2007-2012. The properties are located in Texas, North Carolina, South Carolina, Virginia and Georgia. At the time of the disposition, the 22,500-unit portfolio was more than 82 percent occupied. The assets were owned in a joint venture with Morningstar Properties and managed under the Morningstar Mini-Storage brand. Public Storage, which is headquartered in Glendale, Calif., is expected to rebrand the properties. “We are extremely pleased with the outcome of this portfolio sale,” says Christopher Merrill, co-founder, president and CEO of Harrison Street, a Chicago-based real estate private equity firm. “The strategy of rolling up our sleeves and working to build a portfolio over time proved to be quite successful for our limited partnerships.” Harrison Street, which was the majority owner, acquired or developed these assets across three …

LONG BEACH, CALIF. AND CHICAGO — Real estate investment trust HCP Inc. (NYSE: HCP) has named former Jones Lang LaSalle Inc. (JLL) executive Lauralee Martin as its new president and CEO. The REIT, one of the heavyweights in the seniors housing industry, owned $21.8 billion in healthcare assets, including seniors housing, life science, hospital and medical office facilities as of June 30. Long Beach-based HCP also elected Michael McKee, 67, the company’s lead director, as non-executive chairman. “The board believes Lauralee is the best choice to provide new leadership for the company and to execute its strategies to enhance long-term value for shareholders,” says McKee. Martin and McKee will replace James Flaherty, who became HCP's chairman and CEO in 2003. In a press release, the REIT stated Flaherty had been terminated, but offered no further details. “Jay was a substantial and successful force behind HCP’s considerable growth for more than a decade, and we wish him continued success,” says McKee. Flaherty will remain a member of the board. In a move to enhance the governance strength of HCP, the board decided to separate the chairman and CEO roles. “This is a pivotal time of challenges, transitions and consolidation for the …

MENLO PARK, CALIF. — St. Anton Partners and Facebook have teamed up to build Anton Menlo, a 394-unit, $120 million multifamily community in Menlo Park, a city within the San Francisco Bay Area. Facebook will fund 15 low-income units in the upscale apartment complex, which is located near the social media giant's headquarters at Bayfront Expressway and Willow Road. St. Anton Partners has included an additional 38 low-income units so the residences can be rented at affordable rates. In doing so, St. Anton Partners was able to increase the project's density under the city's density bonus law. Anton Menlo is the city's first significant new apartment building in more than 20 years. “It is a strategic collaboration,” says Ardie Zahedani, vice president of development at St. Anton Partners. “Facebook is getting involved because it is within walking distance to its campuses and there is a major housing shortage.” Facebook is paying Sacramento, Calif.-based developer St. Anton Partners to provide the below-market-rate apartments. Menlo Park requires commercial developers to contribute to its affordable housing stock because the low-income developments create jobs and a demand for housing, according to the San Jose Mercury News. The units will be income restricted for 55 …

ROCKVILLE, MD. — Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) has entered into four separate contacts with a single buyer to sell a 100 percent interest in its medical office portfolio and two office assets for nearly $501 million. The purchase price for the portfolio, which contains approximately 1.5 million square feet, equates to $329 per square foot. “Over the past decade, we have methodically grown our medical office portfolio into becoming one of the largest landlords of institutional-quality medical office properties in the Washington, D.C., metro area,” says George “Skip” McKenzie, president and CEO of Rockville-based WRIT. “With the completion of the medical office portfolio sale, we will be successfully exiting this business line, which has been extremely profitable for us over the past decade.” The portfolio includes 17 medical office buildings and two suburban office properties, 6565 Arlington Blvd. and Woodholme Center. Also included is a parcel in Alexandria, Va., which is being used as off-site/overflow parking for one of the medical office assets in the portfolio. In January, WRIT announced the proposed sale of the portfolio as a strategic opportunity to streamline the company’s business operations. With the disposition of the medical office portfolio, WRIT will …