BOSTON — On the heels of announcing its acquisition of Atlanta-based Carter just one week ago, Cassidy Turley has moved forward with another partnership, this time in Boston, by acquiring FHO Partners. FHO Partners will be formally known as Cassidy Turley FHO effective immediately and will transition to the Cassidy Turley name over time. “We are very pleased to welcome FHO Partners to the Cassidy Turley family,” says Mark E. Burkhart, CEO of Cassidy Turley. “We were attracted to FHO Partners' client-focused approach, strength in tenant representation and consulting, deep understanding of local commercial real estate submarkets and trends, excellent reputation and client roster.” Joe Stettinius, Cassidy Turley's president, agrees. “When Cassidy Turley came together in 2008, we realized there were five or six very important markets that we needed to have a presence in,” he adds. “Of those markets, Boston was near the very top for a couple reasons, one being its strong financial presence both on the investor and user side of the business. Plus, we had a lot of clients here already. So when we identified Boston, most important was having unbelievable partners in Boston who are really good at what they do.” And that’s where FHO …
Top Stories
SANTA MONICA, CALIF. — Watt Companies has launched a new acquisition arm, Watt Investment Partners, in response to what the company believes are new real estate investment opportunities in the Western United States. The new venture has committed an initial $60 million to invest in a variety of projects including retail, multifamily, performing and non-performing debt, and land for development. Former Watt President and CEO Jim Maginn will lead the new venture in collaboration with former Chief Investment Officer Dean Pentikis. “The real estate market has changed dramatically over the past few years, and this is truly an ideal time for Watt Companies to begin deploying capital, creating new joint ventures, and identifying acquisition opportunities in the marketplace,” said Maginn, who serves as senior managing partner for Watt Investment Partners. “We are expecting continued volatility for the foreseeable future, but that uncertainty is exactly what will create many different real estate opportunities for a nimble and flexible investment vehicle like Watt Investment Partners.” In its 60 year history, Watt Companies has developed homes for more than 100,000 families, built more than 8 million square feet of industrial and professional office space, developed more than 50 shopping centers, three hotels, and …
NEW YORK CITY — New York’s iconic Empire State Building has been awarded the LEED Gold for Existing Buildings certification. This distinction comes as further recognition from the $550 million Empire State ReBuilding program. The 1,454-foot-tall, 2.85 million-square-foot property is the tallest building in the U.S. to receive LEED certification. The Empire State Building is celebrating its 80th anniversary while nearing completion of its modernized renewal and repurposing. It is one of a small number of National Historic Landmarks to earn the LEED Gold designation, which was established by the U.S. Green Building Council (USGBC) and verified by the Green Building Certification Institute (GBCI). “LEED Gold certification is another win for us following our ground-breaking energy efficiency retrofit work,” said Anthony Malkin, Empire State Building Company. “It is my hope that all future LEED certifications for existing building projects will require demonstrable, quantifiable improvements in energy efficiency, delivering economic returns for building owners, tenants, and the communities in which they are located.” The Empire State Building ownership directed that sustainable practices be at the center of new operations and upgrades as part of the Empire State ReBuilding program. Low environmental impact operations procedures were put in place immediately following the …
BEACHWOOD, OHIO — Beachwood-based shopping center developer Developers Diversified Realty Corporation (NYSE: DDR) plans to officially change its name to DDR Corp., adopting its New York Stock Exchange ticker symbol and most commonly-referred identity, DDR, as its official brand name. The company also unveiled a new logo, tagline and brand identity, including in the launch of the new brand the tagline “Think Retail. Create Value.” “Our new name accurately reflects the fact that we have simplified our strategy, portfolio and capital structure,” said Daniel B. Hurwitz, president and chief executive officer of DDR. “The words 'developers' and 'diversified' no longer have primary significance in our company strategy. Ground-up development of new shopping centers, while still part of our business, no longer warrants top billing in our name. Furthermore, our focus on open-air, value-oriented shopping centers renders the word 'diversified' inaccurate.” DDR is an owner and manager of 546 primarily open-air shopping centers, operating a total of 126 million square feet in 41 states, Puerto Rico and Brazil, concentrated in high barrier-to-entry markets with stable populations and high growth potential. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company. DDR will remain an Ohio corporation, …
OWINGS MILLS, MD. — Owings Mills-based Chesapeake Realty Partners (CRP) is planning to construct five new apartment communities comprising 1,260 residences at a cost of $186.5 million. The properties are located in Maryland, Virginia and Pennsylvania. “Each of these properties serves communities with very favorable demographics,” says Josh E. Fidler, COO of Chesapeake Realty Partners. “In each area, employment is strong, the rental market is very tight, there is little or no new construction and transportation is easily accessible.” Overall, the company has a strong pipeline throughout the Mid-Atlantic region for multifamily development opportunities, planning to take advantage of the area’s current market strength. Each of the projects will be built to Energy Star and either NAHB for Homes or LEED standards. The projects currently underway are as follows: 1901 South Charles (below), a 193-unit project with attached, structured parking for 280 cars, located in the Federal Hill neighborhood of Baltimore City. 1901 South Charles recently closed on a $29 million loan insured by FHA under its 221(d)(4) new construction program. Development began July 13, and occupancy will commence in mid-2012. The Overlook (below), a community comprising 288 residences located in East Pennsboro Township, on the south shore of the …
CHICAGO — Jones Lang LaSalle released a study this week of 40 office markets across North America, analyzing office rates and revealing the most expensive streets for space by the square foot. Sand Hill Road in Menlo Park, Calif., topped the list with average rents reaching almost $114 per square foot (psf), while iconic streets such as Fifth Avenue in New York runs at $97 psf and Pennsylvania Avenue in Washington, D.C. averages above $80 psf. “Rents for office space in these streets were almost 90 percent higher than the average rents in the same metropolitan area,” said John Sikaitis, senior vice president of research at Jones Lang LaSalle. “Location is everything in real estate, and this study proves it. Despite economic conditions, demand for these prime and often prestigious addresses continues to be high.” Across the 40 markets analyzed in the study, rents on the most expensive streets exceed the market average by 49.8 percent, and the rental figures reflect the highest office rents in each individual market. Below are the top five, as reported by the study: 1. Sand Hill Road, Menlo Park, Calif., $113.64 per square foot Situated at the epicenter of the technology universe, Sand Hill …
ST. LOUIS AND ATLANTA — Cassidy Turley has completed its acquisition of the brokerage and property management businesses of Atlanta-based Carter, a national firm with project development, commercial real estate services and investments departments. Effective immediately, Carter’s chairman and CEO, Bob Peterson, and its president, Scott Taylor, will have dual roles and provide leadership for both Carter and Cassidy Turley’s Atlanta and Tampa offices. Additionally, Carter’s former brokerage services and property and facility management groups will operate as Cassidy Turley. Carter will continue to focus on its existing national development, project management, investments, asset management and strategic consulting businesses under the “Carter” name brand. The acquisition allows Cassidy Turley to expand its service offerings, including investment sales, finance, tenant representation, project leasing and corporate services. Carter is one of the country’s largest commercial developers, with strong higher education, K-12, interiors, and corporate specialty practices, in addition to currently overseeing a $550 million portfolio. Carter’s asset management division manages more than $2.5 billion of third-party and Carter-owned assets. “Acquiring Carter gives us a significant presence in two major markets, Atlanta and Florida, strengthening our geographic footprint in the Southeast and making us a player here,” said Mark Burkhart, CEO of Cassidy …
WASHINGTON, D.C. — AP AG Portfolio, LLC, a joint venture between AREA Property Partners and Adler Group, has closed on the first stage of a $350 million purchase of a 3,087,945-square-foot portfolio of multi-tenant office and warehouse assets in the Washington, D.C. market throughout Northern Virginia, Washington D.C. and Maryland. The portfolio will be acquired through a series of transactions culminating in the acquisition of 18 premier properties. This first recently closed stage sold in three separate transactions totaling $235.8 million, comprising 2,284,272 square feet (more than 2 million square feet of industrial space and two office buildings). Washington Real Estate Investment Trust (“WRIT”) is selling the portfolio, which consists of industrial assets comprising the entirety of WRIT’s industrial division and some office properties. Current occupancy levels across all properties combined averages 79 percent. Paul Collins, Bill Collins, Drew Flood, Jud Ryan and James Cassidy of Cassidy Turley represented WRIT in the deal. “We are bullish on the greater Washington, D.C. area, and confident that this high-quality portfolio will further flourish under the hands-on asset management skills we bring to the table,” said AREA partner Steve Wolf. Wolf also noted that AREA and Adler Group are now the second largest …
NEWTON, MASS. — Newton-based Senior Housing Properties Trust (NYSE: SNH) has entered into an agreement to purchase nine large senior living rental communities for $478 million, including $164 million of assumed mortgage debt on certain communities. These communities are currently operated by Vi® as Classic Residence, and were formerly known as Classic Residence by Hyatt. Goldman Sachs & Co. represented Vi in the transaction. The nine properties are located in six states: four in Florida, and one each in Maryland, Nevada, New Jersey, New York and Texas. The communities include 2,226 living units: 1,708 independent living apartments, 471 assisted living suites and 47 suites where specialized Alzheimer services are provided; they are currently 87 percent occupied. “It’s not common in this industry to be able to do a significant transaction for multiple properties of this caliber and size,” says David J. Hegarty, president of SNH. “In addition, there’s been no meaningful new supply, virtually no financing for development, and the demographics are increasing demand in this sector. It will be a few more years before senior housing takes off, but it’s modestly improving now, and we want to capture that.” The 200-unit Vi Boca Raton, Fla., one of the nine …
TORRANCE, CALIF. — McCarthy Building Companies, Inc. is constructing the $300 million Torrance Memorial Medical Center Replacement Tower on the existing medical center site at 3330 Lomita Blvd. in Torrance, outside Los Angeles. McCarthy, which is the largest American-based healthcare builder in the U.S., has completed more than $2.4 billion in healthcare work in Southern California alone. The company is the general contractor for the 256-bed replacement project at Torrance Memorial, which entails construction of a seven level, 398,350-square-foot patient tower as well as a basement to house a central utility plant and a tunnel connecting the existing hospital to the new facility. Twelve new elevator systems and two exit stairs will be installed, and a 2,770-square-foot Emergency Generator building along with underground fuel oil storage tanks will be constructed on site. Exterior rendering of the nearly 400,000-square-foot, $300 million replacement tower at Torrance Memorial Medical Center in Torrance, Calif. Before construction could begin, McCarthy re-routed existing underground utilities servicing the tower around the new tower’s footprint. A new entrance to the existing facility was also built to allow for patient access from a new direction while the tower is under construction. “Because of the project’s unique challenges, construction will …