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NEW YORK CITY — Property Group Partners has sold a 154,953-square-foot office building, located at 148 Lafayette St. in SoHo, to Epic for $131.7 million. The New York City-based real estate firm paid $850 per square foot for the building, which is more than double the $390 per square foot the seller paid for the building in 2007. “The sale of 148 Lafayette St. validates our original strategy with this building,” said Jeffrey Sussman, founder and president of Property Group Partners. “With our partners, we recognized that a complete renovation and expansion would vastly improve this asset for both tenants and investors.” The 12-story building, which was designed by McKenzie Voorhees and Gmelin Architects in 1913, was originally an industrial building that housed printing presses and clothing manufacturers. In 2007, Property Group Partners retained Cook + Fox Architects for a full renovation and conversion of the property, including a new office lobby, covered entry, addition of new state-of-the-art mechanical, electrical, life safety and security systems, new operable tilt-and-turn windows and new restrooms, elevators and hardwood floors, as well as new retail storefronts. Additionally, a 5,327-square-foot penthouse with an accessible private green terrace was added to the roof, and the limestone …

INDEPENDENCE, MO. — A consent decree from the Federal Trade Commission (FTC) — stemming from the merger between CoStar Group and LoopNet — has paved the way for competing firm Xceligent to expand into the nation’s top 65 commercial real esate markets. The expansion plan is made possible by an investment from Stamford, Conn.-based dmg :: information (dmgi), a business-to-business information company. The new funds will enable Xceligent to match CoStar’s nationwide footprint. Xceligent currently employs 210 people and provides real estate information services to 30 markets in the U.S., including second-tier cities such as Milwaukee. Part of the FTC consent decree is for Xceligent to expand to 65 markets within the next 3 years. “For years, those who use commercial real estate information in metro areas like Chicago, New York, Washington, D.C., Miami, Seattle, and other top-tier markets have had to rely for the most part on a single source,” said Doug Curry, Xceligent’s founder and CEO. “Now, they will have a cost-effective, competitive alternative. “Our pricing strategy is based on the idea that with primary research being done in small towns in the Midwest … our cost structures are lower, allowing us to provide a similar level of …

BOSTON — Developers plan to break ground on the first phase of a $250 million redevelopment in Boston's Jackson Square this Saturday. The multi-phase project aims to reshape an entire neighborhood during the next several years. The project at 225 Centre St. calls for a building that will house 103 apartment units, more than 16,000 square feet of retail and an underground parking structure. It is the largest project within a 14-building redevelopment plan to rebuild Jackson Square, says Bart Mitchell, president and CEO of The Community Partners, the project developer. “The community is ready to see beautiful buildings in these vacant lots in the center of the neighborhood,” says Mitchell. Nearly 40 years ago, a failed highway expansion project bulldozed homes and businesses in the area, leaving much of the neighborhood vacant or underutilized. In the mid-1990s a consortium of community groups — including the Jamaica Plain Neighborhood Development Corp., Urban Edge and the Hyde Square Task Force — worked closely with city officials and developers to begin a comprehensive redevelopment plan, explains Mitchell. “There was an extensive community visioning process that involved hundreds of area residents,” he says. “They said what they would like to see in terms …

UNION, N.J., AND OAKLAND, CALIF. — Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced Wednesday that it has entered into a definitive agreement to acquire Oakland-based Cost Plus Inc. (NASDAQ: CPWM) in an all-cash transaction for $22 per share, or $495 million. Cost Plus is known for its selection of home décor, furniture and unique food offerings from all over the world. The retailer currently operates 259 stores in 30 states under four names, which include World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores. “The two companies have collaborated during the last 2 years with Bed Bath & Beyond selling Cost Plus World Market products in a few stores,” according to Laura Champine, analyst with Canaccord Genuity. The transaction will expand Bed Bath & Beyond's food offerings into the gourmet food and beverage categories. Additionally, Bed Bath & Beyond will provide greater scale and capital structure to support the 259 stores Cost Plus owns, she adds. “Financially, Cost Plus was performing okay, but not great,” says Jeff Green, a retail consultant and owner of Phoenix-based Jeff Green Partners. “I was a little concerned that they might be closing some stores. They did leave certain markets …

SANTA ROSA, CALIF. — Construction is under way on the 182,300-square-foot Sutter Medical Center of Santa Rosa (SMCSR), a $284 million replacement hospital located on Chanate Road in Santa Rosa. The hospital will replace the original Sutter Medical Center of Santa Rosa, which was built in 1938. The new hospital is slated to open in October 2014. HGA Architects and Engineers, working closely with northern California-based Unger Construction and Sutter Health, designed the property using integrated project delivery (IPD) methods, a team-based approach that streamlines the construction process and reduces building costs. “By using IPD methods, we created a platform to ensure that keystone patient experiences — such as lobby spaces and waiting rooms — as well as sustainability components, weren’t sacrificed due to budget constraints,” said Greg Osecheck, principal-in-charge of the project in HGA’s Sacramento office. “With new technology such as 3-D building information modeling (BIM), our team was able to conceptualize together to reduce unknowns, create opportunities for cost savings, and design a facility that will serve the Sutter Health community for years to come.” HGA has designed the new hospital to achieve LEED Silver certification with sustainable features such as a recycling program to reduce construction waste …

MONTGOMERY, ALA., AND LITTLE ROCK, ARK. — Subscribing to the theory that the whole is greater than the sum of its parts, Summit Housing Partners and Bailey Properties have entered into a $1 billion merger to form BSR Trust LLC. The new entity will operate 111 multifamily communities comprised of 18,700 apartment units in 10 states in the Southeast, plus Oklahoma and Texas. Summit Housing Partners is a seasoned owner and operator of affordable and workplace housing. Headquartered in Montgomery, Alabama, Summit Housing’s portfolio includes approximately 14,600 apartment units spread across 93 apartment communities in 10 states in the Southeast and Southwest, according to the company’s website. The best way for the company to grow, reasoned Summit Housing’s management team, was to join forces with a regional firm that shared similar operating systems and customer philosophies. The company found its match in Bailey Properties, which owns and manages apartment communities in Little Rock, Arkansas; Shreveport, Louisiana; Houston and Longview, Texas. Based in Little Rock, the company’s portfolio includes 20 properties in three states. Although the boards of both companies have approved the deal, it is still subject to regulatory approval and project lender consent. The deal is expected to close …

The slowing pace of job creation is a major concern, says Hessam Nadji, managing director of research and advisory services for Marcus & Millichap, and the end result is that companies will remain conservative in their consumption of commercial real estate space. “Corporate profits continue to grow at a healthy pace, but corporate investment is stagnating.” Nadji’s comments are in response to the latest nonfarm payroll employment figures released by the Bureau of Labor Statistics last Friday that showed the U.S. economy added 115,000 jobs in April, well below economists’ expectations. The positive news is that the change in total nonfarm payroll employment for February was revised upward from 240,000 to 259,000, and the change for March was revised from 120,000 to 154,000. Even with the upward revisions, the emerging storyline on the jobs front is that momentum is dissipating, say real estate economists. They believe, however, that the recent softness is partly due to seasonal adjustment factors related to the warm winter. “The numbers, while disappointing, are strong enough to support the gradual recovery in commercial property demand across all sectors,” explains Nadji of Encino, Calif.-based Marcus & Millichap. “We are seeing a moderate rate of decline in vacancies …

WOODSTOCK, GA. — Developers have broken ground on a new outlet mall in Woodstock, approximately 35 miles northwest of Atlanta, which seeks to draw shoppers from a three-state area. In January, Chattanooga-based CBL & Associates and Horizon Group Properties of Norton Shores, Michigan, formed a joint venture to develop the Outlet Shoppes at Atlanta. The development is scheduled to open in August 2013. The 370,000-square-foot center was originally conceived as an outdoor lifestyle center, says the site's original developer and land owner, Bill Butler, of Ridgewalk Properties Group LLC. Cousins Properties, which had previously planned to build The Avenue, an upscale retail center, pulled out of the project under the weight of market conditions after the recent economic downturn. Another factor is that open-air malls had begun to fall out of favor, says Butler. “We are extremely pleased that Horizon Group and CBL stepped forward to finally complete the long-anticipated project,” says Butler. The site is located off I-575 at the new Ridgeway Parkway exit. The developers said they expect the shopping center could attract about 4 million shoppers a year from Georgia, Tennessee and Alabama. “It is located much closer to the residents of metro Atlanta than existing outlet …

WASHINGTON, D.C. — J.P. Morgan Asset Management has acquired two luxury high-rise apartment buildings, located in Washington, D.C., for $189.2 million. 909 at Capitol Yards, a 237-unit property located at 909 New Jersey Ave., sold for approximately $95.4 million, and the 246-unit Axiom at Capitol Yards, located at 100 Eye St. SE, sold for approximately $93.8 million. “These two properties represent the height of apartment living,” said Bill Roohan, vice chairman of CBRE. “Each offers a lavish amenity package that appeals to the deeply discerning renter seeking luxury, metro-accessible living and the rich amenities that continue to evolve in the exciting Capitol Riverfront neighborhood.” The properties include a variety of amenities such as clubrooms, swimming pools, fitness centers, business centers, conference rooms, designer kitchens, full-sized washers and dryers and walk-in closets. Axiom also features a sports lounge and 909 at Capitol Yards contains a resident pub with HDTV and billiards. Additionally, the properties are within walking distance of two Metrorail stations, as well as The Washington Nationals stadium. Roohan, along with Andy Boyer, Mike Muldowney, Jonathan Greenberg, Michael Rudolph, Brian Margerum, Robert Meehling and Martha Hastings of CBRE’s Washington, D.C., Multi-Housing team represented the sellers, 909 New Jersey Avenue LP. …

CHICAGO — John Hancock Real Estate, the U.S. unit of Manulife Real Estate (TSE: MFC), has purchased 150 North Michigan Avenue, a 41-story office tower located in the East Loop of Chicago’s CBD, for $102 million. With its diamond-shaped roofline and white exterior, the 661,482-square-foot, Class A tower is one of the most unique buildings in the Windy City. John Hancock purchased the property from SEB Investment GmbH, a German real estate fund manager. SEB purchased the office tower for approximately $113.2 million in 1999. John Hancock also owns and manages the 37-story 191 North Wacker Drive on Chicago’s West Loop and the 1 million-square-foot Schaumburg Corporate Center. “John Hancock has been looking for opportunities to grow its real estate investment portfolio, and in the last 12 months we’ve successfully acquired more than $700 million in real estate assets in several diverse markets and property types,” said Kevin Adolphe, COO of Manulife Financial Corp.’s investment division and president and CEO of Manulife Real Estate. “The purchase of 150 North Michigan Avenue supports John Hancock’s continuing strategy to invest in core real estate assets with solid long-term value, located in key markets throughout the United States. We are extremely pleased to …