Top Stories

LAUREL, MD. — A partnership between Greenberg Gibbons, Somera Capital Management and AEW Capital Management has begun construction on Towne Centre at Laurel, a $130 million mixed-use development at the site of the existing Laurel Mall site in Laurel. The joint venture is demolishing the 31-year-old mall to make way for the open-air center, which will feature 400,000 square feet of retail space and 435 residential units. “It’s exciting to begin transforming this property into a first-class destination,” says Brian Gibbons, chairman and CEO of Greenberg Gibbons, a retail and mixed-use developer operating in the Baltimore-Washington, D.C., region. “The time is right to breathe new life into this prime location, making way for the kinds of high-quality retailers and restaurants that the Laurel community deserves.” Town Centre at Laurel will include a grocery anchor, sporting goods tenant, movie theatre and other merchants and restaurants in a Main Street setting. Greenberg Gibbons has managed Laurel Mall for more than a year and had been creating plans for its redevelopment during that time. The developer was also finalizing the partnership between Somera and AEW as well. Greenberg has developed similar mixed-use destinations such as Hunt Valley Towne Centre and Annapolis Towne Centre. …

BALTIMORE — Beech Street Capital has secured $371 million in Freddie Mac CME loans for the recapitalization of nine multifamily properties, located in the Baltimore metro area and one property located in the Washington, D.C., region. The communities include two- to four-story, garden-style and townhome-style apartment buildings. Under the recapitalization, Kushner Cos. acquired approximately 25 percent in the ownership group from a Rockpoint Group Partnership, which retained the remaining interest. Westminster Management, an affiliate of Kushner Cos., will manage the properties. According to commercial real estate services firm Transwestern, the average apartment effective rent in Baltimore in the second quarter grew by 5.7 percent on a year-over-year basis. Meanwhile, the Class A vacancy in the second quarter registered 3.2 percent, down 130 basis points from this time last year. Meridian Capital Group originated the 10-year, fixed-rate loans with partial interest-only payments. Beech Street financed the transaction as part of its correspondent relationship with Meridian. The funds will pay off the remaining existing debt and preferred equity on the 5,517-unit portfolio, as well as fund immediate capital expenditure reserves and budgets. New York City-based Kushner Cos. has owned more than 35,000 apartments in the company’s 30-year history. In 2011, Kushner Cos. …

IRVINE, CALIF. — Goodman Group and the Canada Pension Plan Investment Board (CPPIB) have launched Goodman North America Partnership (GNAP), a logistics and industrial joint venture with a targeted equity amount of $890 million. “This latest partnership broadens CPPIB’s successful relationship with Goodman, with whom we hold investments in Australia, Hong Kong and China,” says Peter Ballon, vice president of real estate investments in America for Toronto-based CPPIB. “We believe that this joint venture will provide significant opportunities to invest in prime logistics and industrial locations across key American markets.” The partnership will initially focus on development-led opportunities, with value-add and stabilized assets to be considered over time. Targeted markets include Los Angeles, San Francisco, Seattle, New York, New Jersey and Philadelphia, however, other key logistics hubs based around inland ports, intermodals and tier-one ports will also be considered. “GNAP further builds on our relationship with CPPIB and reinforces our strategy of matching third-party capital with our development pipeline, enabling us to enter North America in a measured way,” says Greg Goodman, CEO of Sydney, Australia-based Goodman. “We will continue to work closely with our global customers to deliver high-quality logistics and industrial space, consistent with our prudent development approach.” …

NASHVILLE, TENN. — Harbor Group International (HGI) has made its fourth multifamily purchase in the past 15 months, acquiring a four-property apartment portfolio in Nashville for $130.5 million. The portfolio includes 1,593 apartments and HGI plans to spend $4.69 million, or about $2,900 per unit, in various exterior and interior upgrades. The deal reflects HGI's strategy of buying well-located apartment portfolios in improving markets, explains T. Richard Litton, Jr., HGI's president. “All four properties have occupancy levels above 90 percent and are poised to realize increased revenues as we implement our capital program and the Nashville market continues to improve,” says Litton. HGI's acquisition includes 627 units at Cherry Creek; 346 units at Arbors of Brentwood; 360 units at Cambridge at Hickory Hollow; and 260 units at Preakness. The transaction, HGI's fourth in the past year, follows the company's acquisition of a 1,218-unit apartment portfolio in Florida in June. In July 2011, the Norfolk, Va.-based private real estate and management firm purchased a 1,984-unit portfolio of six multifamily properties in Baltimore. “HGI is uniquely positioned to complete portfolio transactions thanks to our equity resources, a strong track record with similar acquisitions and the company's overall success rate,” says Litton. “We …

BIRMINGHAM, ALA. — Children’s of Alabama’s new $400 million, 760,000-square-foot Benjamin Russell Hospital for Children (BRHFC), has opened for patients. The hospital, which is the largest single medical facility expansion project in Alabama’s history, is located one block north of the existing facility in Birmingham. The completion makes Children’s of Alabama the third-largest pediatric hospital in the U.S. in terms of square footage. Children’s is also the state’s only freestanding pediatric hospital. BRHFC is named after Alabama entrepreneur Benjamin Russell (1876-1941), whose grandson and grandson’s wife, Ben and Luanne Russell, recently provided a $25 million endowment to the hospital. BRHFC’s opening allows Children’s to increase its licensed bed total from 275 to 332, with an additional 48 neonatal intensive care unit (NICU) bassinets. The combined bed/bassinet count ranks Children’s of Alabama in the Top 10 pediatric medical centers in the U.S. based on bed count. The new hospital offers something new to Children’s: all-private rooms in critical care units. These rooms feature a sleeper sofa, large wardrobe, safe and a special patient education/entertainment system. The new hospital also offers private, acute care rooms that are 30 percent larger than the rooms in the existing Children’s building. Each patient floor offers …

RICHMOND, VA. — Apartment Trust of America (ATA) has arranged a $536.5 million recapitalization that includes the acquisition of 21 apartment communities, valued at $485 million, as well as the issuance of $50 million of preferred stock and $1.5 million of common stock. Elco Landmark Residential Holdings (ELRH) and its affiliates and partners, including DeBartolo Development and the Florida Value Funds, are contributing the multifamily properties in exchange for $187 million of partnership interests in ATA’s operation partnership, $16 million in cash and the assumption of $282 million in debt on the properties. “Over the past six years, we have worked to create a high-quality portfolio that produces strong returns for stockholders and a fiscally prudent balance sheet,” says Stanley Olander, CEO of ATA, a publicly registered, non-traded real estate investment trust. In conjunction with the transaction, the company has been renamed Landmark Apartment Trust of America (LATA). Joseph Lubeck, CEO of ELRH, will become the executive chairman of LATA’s board of directors. Upon completion of the 6,100-unit portfolio, LATA will own a total of 36 properties totaling 10,000 units in the southern U.S. “We are pleased that our investors will now also benefit from the larger, more diverse group …

LOS ANGELES — Los Angeles-based developer G.H. Palmer Associates has retained Peak Campus Management as the property manager for the $250 million Lorenzo, a student housing development located less than a mile from the University of Southern California in Los Angeles. “The Lorenzo is an exciting addition to our portfolio of top-tier student housing communities,” says Bob Clark, president of Atlanta-based Peak Campus Management. “Our focused customer service will complement this world-class property, ensuring that each resident’s experience is unparalleled.” The project, which is currently under construction, will deliver approximately 2,000 beds in the summer of 2013 and another 1,658 beds by the summer of 2014. The apartments will be fully furnished with granite countertops, stainless steel Energy Star appliances including washers and dryers and wood plank flooring in the living room and bedrooms. Community amenities will include four resort pools with cabanas, three heated Jacuzzis, a three-story fitness center, five rooftop sundecks, two indoor basketball courts and a sand volleyball court. Additionally, the property will contain a virtual gaming and arcade room, a theater room, five libraries with computers and study rooms, an outdoor amphitheater and athletic field and a full service café. Maid service and dry cleaning will …

IRVING, TEXAS — Catlyn Capital Corp. and TDI Real Estate Holdings have closed on a $500 million joint venture platform to develop properties in the states of Texas, Arizona and Colorado. According to TDI, the platform “seeks to capitalize on the compelling market dynamics primarily in the multifamily sector created by the renter base, strong job growth and limited new supply.” The venture will focus exclusively on Class A investments in core markets. Recently, the two companies closed on a $50 million, 444-unit apartment development in Allen, Texas and a $65 million, 388-unit development in Scottsdale. The venture is finalizing construction plans on four additional communities, totaling 1,323 multifamily units, with a total cost of $185 million in the Phoenix, Dallas and Austin metro areas. “There are exceptional opportunities in the market for organizations with the experience and bench strength to identify and execute in this highly competitive field,” says Mark Bryant, TDI's president and CEO. “Our management team's 30-year track record of success will be an important factor in identifying and capitalizing on the best opportunities,” he adds. In addition to the joint venture, TDI currently has 800 units under construction valued at $200 million. Based in Irving, Texas, …

COVINGTON, GA. — Baxter International, a developer and manufacturer of healthcare products, has broken ground on a $1 billion biotechnology manufacturing facility located in Covington. The first phase of development will encompass more than 1 million square feet. The facility, which will employ approximately 1,500 people, will be used to manufacture plasma-based therapies that treat chronic and life-threatening illnesses. The integrated campus will include three main manufacturing buildings as well as support components such as a warehouse, utility buildings, administrative facilities and laboratories. “In a few years, Baxter team members working in facilities located on the ground where we are standing today will produce lifesaving biological treatments for patients around the world,” says Robert Parkinson Jr., chairman and CEO of Baxter International. The first phase of construction is expected to begin in the first quarter of 2013, with completion of the first buildings slated for 2015. Additional phases are expected to continue into 2016, and the plant is anticipated to begin commercial production in 2018. “Georgia supports Baxter’s mission to save lives, and this occasion is one of many milestones we look forward to celebrating with the company as it establishes a presence in Georgia,” says Gov. Nathan Deal. “Baxter’s …