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 …
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COLUMBUS, OHIO — Red Roof Inns, Inc. recapitalized the ownership of its assets with support from hospitality industry partners, completing this recapitalization through the acquisition of 143 Red Roof Inn properties by a joint venture between affiliates of Five Mile Capital Partners and Westmont Hospitality Group. According to Bloomberg, the joint venture acquired $700 million of Red Roof Inns Inc. debt to gain control of the hotels. The 143 hotels total nearly 17,000 rooms, and this capitalization includes significant funding for renovations. The joint venture has committed more than $70 million for renovating and upgrading the portfolio with the brand’s new design elements. Five Mile Capital has deep hospitality experience, having been involved in Extended Stay America, Innkeepers and CNL Resorts. “This committed capital provides long-term stability to the company and highlights the fact that Red Roof is an attractive investment with a unique dual concept of an owner-operated, franchise-centered business,” said Andrew Alexander, president, Red Roof Inns, Inc. “Our strong belief in our own product as we build our franchise grants us the ability to maintain high standards in both realms.” All Red Roof properties involved in the recapitalization have entered into franchise agreements with Red Roof Franchising, LLC …
NEW YORK CITY — C-III Capital Partners LLC (C-III) has acquired the commercial real estate special servicing and CDO management businesses of JER Partners (JER), a private real estate investment management company. As a result of the acquisition, C-III will merge JER’s special servicing operations into its wholly-owned subsidiary, C-III Asset Management LLC, already a highly rated primary and special servicer of commercial real estate loans. JER is the named special servicer for $35.5 billion of commercial real estate loans, of which approximately $4 billion is currently in special servicing and under active management; including these loans, C-III is now the named special servicer for approximately 14,000 loans with an aggregate balance in excess of $152 billion, of which approximately $17 billion is currently in special servicing. “This acquisition strengthens C-III’s position as one of the top three special servicers in the country and advances our growth strategy,” said Andrew L. Farkas, chairman and CEO of C-III Capital Partners. “Special servicing is a key foundation of our strategy to create a fully diversified commercial real estate company.” “JER’s servicing portfolio, depth of experience and industry expertise will be a great fit with C-III,” added Paul Smyth, president of C-III Asset …
DURHAM, N.C. — Cary, N.C.-based Capital Associates has sold Keystone Technology Park, an 806,157 square foot, 11-building portfolio in Durham. Stephen Porterfield, on behalf of Capital Associates and its partners, engaged Cassidy Turley to arrange the transaction, and Paul Collins, Bill Collins, Drew Flood, Jud Ryan, James Cassidy, David Finger and Hillman Duncan of Cassidy Turley represented the seller. “Our loan on the property was maturing, and it was a question of getting new debt and locking it up for 10 years, or going ahead to sell,” says Porterfield, associate partner with Capital Associates. “We’ve been seeing a lot of interest in the Raleigh/Durham area for well leased core properties, and right now it’s on the map for folks in a way it hasn’t been, so that made sense of us.” The portfolio was acquired by Lionstone Cash Flow Real Estate Partners One, a $250 million equity venture between the Lionstone Group and the Teacher Retirement System of Texas. Lionstone was formed in 2001 by partners Tom Bacon, Dan Dubrowski, and Glenn Lowenstein. An industrial building located at 629 Davis Dr. in Durham, part of the portfolio that sold to Lionstone Cash Flow Real Estate Partners One. Keystone Technology Park …
ORANGE COUNTY, FLA. — In an effort to create connectivity and commerce in the western Orlando area, Boyd Development Corporation is under way on development of “Town Center East,” a mixed-use project with an expected investment of $940 million, located within the Horizon West area. According to the Orange County Government, Horizon West is a 23,000-acre special planning area located in southwest Orange County. In mid-July, Boyd and Stratford Land, a Dallas-based land investment firm, closed on approximately 600 acres of property in Horizon West situated on the northeast and southeast quadrants of the Western Beltway (SR 429) at the New Independence Parkway interchange. Once the initial planning phases are complete, Boyd/Stratford plans to position the property as a master-planned, mixed-use project. The land, which is bordered on the east by Lake Hancock, has more than two hundred acres of residential land with approximately three miles of lakefront. An aerial view of the land to become Town Center East in the Horizon West area of southwest Orange County, Fla. Town Center East will be built out in phases over the next 7 to 10 years as a mixed-use development with retail, office, hotel, institutional and lower, medium and higher density …
ATLANTA — BVT has finalized the sale of an 842,255-square foot retail portfolio to Multi-Employer Property Trust (MEPT), a $4.7 billion real estate equity fund. The deal included 10 grocery-anchored shopping centers valued at $130 million and located throughout the southeast and Texas. The transaction closed less than 60 days following contract execution. Chris Decouflé with CB Richard Ellis’ National Retail Investment Group in Atlanta represented BVT. Bentall Kennedy, one of North America’s largest real estate investment advisors, provided advisory services to MEPT. BVT retains the management contract for all properties within the portfolio. “The sale of this retail portfolio provided our fund investors with a sound return on their investment,” says Scott Farber, Vice President, BVT Management Services, Inc. “This portfolio includes quality retail properties in strong markets with dominant grocers that will continue to be great long-term assets.” More than half of the portfolio is located in metro Atlanta, with those five neighborhood centers encompassing more than 426,250 square feet: Bethany Village, Alpharetta, Ga. (pictured above) Dean Taylor Crossing, Suwanee, Ga. (pictured below) Kedron Village, Peachtree City, Ga. Tree Summit Village, Duluth, Ga. West Cobb Marketplace, Marietta, Ga. The remaining five properties, totaling 416,005 square feet, are situated …
CHICAGO AND DALLAS — Chicago-based Brennan Investment Group, LLC and Dallas-based TriGate Capital, LLC have formed a programmatic joint venture to pursue industrial real estate investments across the United States. Brennan Investment Group is a private real estate investment firm that acquires, develops, and operates industrial properties in major metropolitan markets throughout the United States, led by chairman and co-founder Michael W. Brennan, the former CEO of First Industrial Realty Trust Inc. TriGate Capital is a national real estate private equity firm that manages a fully discretionary real estate fund, TriGate Property Partners, L.P., comprising primarily institutional investors. “We entered into the joint venture with TriGate based on a compatibility of philosophy,” says Brennan. “We both believe that we will see a generational investment opportunity and avenues for investments with significant area to create value.” Because of the industrial marketplace’s size, and because rents have declined and construction is down significantly, Brennan expects more opportunities to open not only for significant volume, but also for value creation as rents rise and fundamentals improve where there’s very little to no construction. “There are certain areas to find inefficiencies in the market, and opportunities to purchase from banks, or to do partnership …
PALM BEACH, FLA. — On Friday, August 19, Chatham Lodging Trust (NYSE: CLDT) and Cerberus Capital Management, L.P. terminated their commitment and obligation to acquire interests in 64 hotels owned by Innkeepers USA Trust and its affiliates. At that time, Chatham released a statement noting that the company and Cerberus jointly determined to terminate in accordance with terms and conditions of their May 16th agreement as a result of “the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect on Innkeepers' business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects.” On August 22, Innkeepers’ Chief Restructuring Officer Marc A. Beilinson contested the termination: “The company has no doubt that Cerberus/Chatham terminated the Commitment Letter inappropriately,” he said. “Accordingly, we are evaluating all legal and equitable remedies against Cerberus/Chatham.” According to the statement released by Innkeepers USA Trust and its affiliates, the notice of termination to purchase the equity in entities that own and operate 64 of the its hotels had no basis, and Beilinson contested the reasoning outlined in the statement from Chatham and Cerberus quoted above. “Throughout our restructuring process, Innkeepers has maintained normal business operations …
NEW YORK CITY — Accenture (NYSE: ACN) has agreed to acquire Zenta, a provider of residential and commercial mortgage processing services in the United States. In conjunction with the agreement, Accenture is launching Accenture Credit Services, a full-service consulting, technology and BPO capability that will expand its support for institutions in the residential mortgage, commercial real estate, leasing and automotive finance industries, of which Zenta’s mortgage processing capabilities will be a key component. Terms of the transaction were not disclosed, and the acquisition is subject to closing requirements. “The wave of regulations and a changing credit environment are redefining the competitive landscape of the mortgage industry,” said Terry Moore, global managing director of Accenture Credit Services. “In the residential mortgage business, low customer satisfaction, rising fulfillment costs, and falling pull-through rates — coupled with slower refinancing and purchase activity — are undercutting profitability. On the servicing side, regulatory changes are forcing operational transformation.” The acquisition is intended to address these challenges by combining Zenta’s resources in mortgage processing with Accenture’s services to financial institutions for designing and executing complex, large-scale business transformations, expanding Accenture’s ability to help lenders, servicers and REITs retool and streamline their operations. Headquartered in Dallas, Zenta …
ANN ARBOR, MICH. – Ann Arbor-based McKinley’s Residential Client Services team recently was appointed receiver for a 14-asset, 3,709-unit multifamily portfolio spanning six states, which not only reflects the company’s track record as but also represents McKinley’s first expansion into the Texas market. A breakdown of units by city is listed below: This appointment represents the 107th court appointment of McKinley to workout distressed real estate since the beginning of the financial crisis. As part of the assignment, McKinley has been appointed Receiver by US District Court for the Southern District of Texas. “We have extensive experience in receivership and workouts, and we’re very well known in distressed real estate circles for our ability to fix problems,” says Ken Polsinelli, chief real estate officer for McKinley. “Before the most recent recession, we staffed up because we saw it coming, and we went from 5 or 6,000 units to 15 or 20,000 quickly.” This appointment is also is one of the five largest multifamily assignments in the CMBS market in 2011. To put that in context, Polsinelli says there are hundreds of busted real estate loans and billions of dollars of distressed assets, particularly in CMBS. “For all the negative publicity …