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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 …

CHICAGO — Roosevelt University has completed construction on the $123 million Wabash Building, a 32-story tower containing laboratories, classrooms, student life facilities and residential housing for the college. The building, which is located at 425 S. Wabash Ave. in Chicago, will open this Saturday, May 5. “The Wabash Building is special because it is a vertical campus that combines all in one structure 633 student residences, classrooms and laboratories, and student life facilities like a recreation center, meeting rooms, cafeteria and bookstore,” says Tom Karow, assistant vice president of public relations for Roosevelt University. “It is the second tallest university building in the country and the sixth tallest in the world.” The first floor of the building contains the offices of administration, financial aid and advising, as well as the bookstore. On the second floor is a 300-seat dining center, and the following four floors include offices and meeting rooms for student organizations and a fitness center. The tower includes seven conventional classrooms, three tiered classrooms and three auditorium-style classrooms, which increases Roosevelt’s classroom capacity in Chicago by 40 percent. Additionally, three floors include laboratories for physics, biology and chemistry studies. Floors 10 through 12 include the Heller College of …

NEW YORK CITY — Starwood Capital Group has unveiled a new luxury hotel brand, Baccarat Hotels & Residences, which the company says will fill a void at the very top end of the upscale hotel market. The brand shares the name of the world-renowned French crystal maker. Additionally, Starwood Capital and Tribeca Associates have announced plans to build the 46-story, 114-room Baccarat Hotel & Residences New York, located at 20 W. 53rd St. just off Fifth Avenue in New York City. Skidmore Owings & Merrill is the architecture firm for the project and Gilles et Boissier is the interior designer. The hotel, which is slated for completion in 2014, will cost $403 million to build, according to The Wall Street Journal. Some room rates are expected to exceed $800 a night. “A truly iconic luxury European brand now enters the hotel segment,” said Barry Sternlicht, chairman and CEO of Starwood Capital. “Baccarat’s name is synonymous with hand-crafted quality and a nearly 250-year-old pursuit of perfection. We’re excited to introduce a super luxury hotel to the world’s most important travel market, New York City.” The hotel will also feature luxury residences, which will include access to hotel services and amenities, as …

SUNBURY, PA. — Weis Markets (NYSE: WMK), a supermarket chain based in Sunbury, announced it will invest $125 million in building and renovating its stores this year — a 25 percent increase compared to 2011. The plan was announced during the company's annual shareholder meeting Thursday. Vice chairman Jonathan Weis says the budget includes two new stores and 18 major remodels. Among the projects underway this year is a new, 65,400-square-foot Weis Market in Fogelsville, Pa., which is currently under construction. The market will be the first grocery store for residents in the Fogelsville area and is slated to open in 2013. “In addition, we expect to soon complete the purchase of three Genuardi's units near Philadelphia, which we hope to reopen later this summer,” says Weis. The company agreed to buy the supermarkets from Safeway Inc. in February. The Pennsylvania stores are located in Conshohocken, Doylestown and Norristown, and will operate under the Genuardi's Family Markets name until the deal is finalized. Douglas Green, a principal at Philadelphia-based Michael Salove & Associates, a retail real estate brokerage firm, says the remodeling strategy undertaken by Weis will help the company remain competitive in today's marketplace. “Weis is certainly a very …

NEW YORK CITY — Jamestown Properties has purchased a 241,000-square-foot office building, located at 325 Hudson St. in New York City’s Hudson Square area, for $110 million. “325 Hudson St. is an example of Jamestown’s strategy to acquire properties in dynamic neighborhoods with opportunities to add value over time, especially in areas that show promise for media and technology,” said Michael Phillips, COO of Jamestown, in a prepared statement. “Hudson Square is the perfect example of such an area and we are excited to have yet another opportunity to add value in New York City.” The 10-story property is a former industrial building that was redeveloped in 1998 into a telecommunications center. The building offers special telecommunications features, including floors that can support 200 to 250 pounds per square foot and 12-foot ceilings. Jamestown has teamed up with Amerimar Enterprises and Hunter Newby as operating partners. Because of these features, the office building is home to many telecommunication and media tenants. In March, Pearson PLC, a publishing company focused on education materials, signed a 7,400-square-foot lease to become the building’s newest tenant. Jamestown has generated approximately $8 billion in strategic investments during the last 29 years. — Savannah Duncan