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INDIANAPOLIS — Duke Realty has broken ground on the 274,000-square-foot Fifth Third Faculty Office Building, located at the planned 37-acre, $754 million Eskenazi Health campus in downtown Indianapolis. The 5-story building will house support functions for Wishard Health Services, including office space for administrative staff and Indiana University School of Medicine faculty physicians who will practice at the campus. Additionally, it will be used as workspace for research and various academic support programs. Completion of the Fifth Third building is slated for December 2013. St. Louis-based HOK Group and Indianapolis-based BSA LifeStructures are the architects for the project. Duke Realty is the construction and property manager. Along with an 11-story hospital tower and a planned ambulatory care building, the Fifth Third building will enable Eskenazi Health’s physicians and staff to be consolidated on one 1.2 million-square-foot campus. Duke Realty and Health and Hospital Corp. of Marion County (HHC), which operates the Wishard system, will jointly own the Fifth Third building and HHC will lease the property. Indianapolis-based Browning Investments also played a key role during the early stages of the Fifth Third project. Upon full completion, the new campus is expected to receive LEED Silver certification, making it the first …

NEW YORK CITY — LaSalle Hotel Properties (NYSE:LHO) has closed on the $396.2 million acquisition of the 934-room The Park Central Hotel, located on Seventh Avenue between West 55th and West 56th Streets in New York City. The company agreed to purchase the property from Highgate Holdings in June of 2011 for $405.5 million, but received a reduction in accordance with the terms of the purchase and sale agreement. “We are pleased to have finally closed on The Park Central Hotel,” said Michael D. Barnello, president and CEO of LaSalle Hotel Properties, in a statement. “We remain excited about this well-located New York City asset and our ability to acquire the hotel at an attractive purchase price.” The hotel, which was built in 1928, has undergone renovations totaling $33 million since 2004. LaSalle Hotel Properties intends to renovate the guestrooms, guest bathrooms, corridors and the hotel’s lobby, at an estimated cost of $30 million to $35 million. Construction will begin in late 2012 and completion is slated for 2013. Hotel amenities include the 88-seat Cityhouse, Bar Bella, 4,800 square feet of retail space and 14,000 square feet of meeting and function space, including an 8,500-square-foot ballroom. Atlanta-based Hodges Ward Elliott …

Glendale, Calif. — PS Business Parks (PSB) has acquired a 5.3 million-square-foot industrial portfolio of properties located in Northern California for $520 million. The seller was RREEF America REIT II Corp. and its affiliate, Northern California Industrial Portfolio Inc. Included in the portfolio are 18 multi-tenant business parks totaling 2.9 million square feet of light industrial space and 2.4 million square feet of flex space. “This portfolio acquisition significantly enhances PSB’s presence in Northern California, providing a strong concentration of parks in markets that are poised for continued recovery,” said Joseph Russell, Jr., president and CEO of Glendale-based PSB. “PSB has a deep understanding of these markets and we are confident their economic strength and stability will provide opportunities to great value from this unique opportunity.” The properties are located in the Bay Area, with concentrations in Oakland, Hayward, Fremont, Milpitas, San Jose, Santa Clara and Sunnyvale. The portfolio is approximately 82.2 percent leased to 216 tenants. Following the acquisition, PSB now owns 7.2 million square feet of multi-tenant industrial and flex space in 30 business parks in Northern California, or 26.3 percent of the company’s portfolio. In conjunction with the transaction, the company assumed a $250 million secured loan, …

Cleveland’s commercial real estate investment market enjoyed a sustained period of strong activity during the mid-2000s. Fueled by plentiful debt, a seemingly endless supply of buyers and no shortage of willing sellers, the overall sales volume grew to unprecedented levels, topping $1 billion for three consecutive years. While most industry professionals knew this level of activity, as well as the associated upward spiral in pricing, couldn’t last, few had any idea how swift and severe the market would turn. Three hallmark transactions help illustrate the height of the market in 2006-2007 and how far this market has since fallen. The story of each of these sales is profiled below. Duke’s Eastern Suburban Office Portfolio Duke Realty entered the Cleveland marketplace in the mid-1990s by acquiring an existing office portfolio. Over the next decade, the REIT quickly grew to be one of the largest office and industrial owners in the region. However, in 2006, Duke shocked the local market by announcing its intent to sell all of its local holdings and withdraw from the market. Duke sold off most of its holdings in smaller groups of properties and to a variety of buyers. One of the larger of these groups was …

EAST RUTHERFORD, N.J. — CBRE Global Investors has sold the 421,317-square-foot Metropolitan Center, a 15-story office building located at One Meadowlands Plaza in East Rutherford across from MetLife Stadium. An affiliate of KBS purchased the LEED Gold-certified property for $104.9 million. “The sale of Metropolitan Center is consistent with our overall value proposition — to aggressively reposition and operate high-quality real estate, creating exceptional environments for our tenants’ businesses while seeking to provide market-leading performance for our investors,” said Vance Maddocks, president of CBRE Strategic Partners U.S. When CBRE Strategic Partners acquired the property almost 2 years ago, the property was 72 percent leased. Metropolitan Center is now 98 percent leased to tenants including AEGIS Insurance, Hudson News, MWW Group, Cushman & Wakefield and Michael Kors. CBRE has been retained to lease and manage the property. “We are pleased with our success in repositioning Metropolitan Center through our signature 5-Star Worldwide service program and aggressive leasing campaign to increase value for our investor clients,” said Mark Zikakis, managing director of CBRE Investors, in a statement. Jeffrey Dunne, Kevin Welsh and Brian Schulz of CBRE’s New York Institutional Group, along with Don Sperling of CBRE’s Saddle Brook, N.J., office, represented both …

GREENVILLE, S.C., AND JACKSONVILLE, FLA. — BI-LO and Winn-Dixie Stores (NASDAQ: WINN) have plans to merge to create an organization of approximately 690 grocery stores in eight states in the Southeast. “We are very excited about the merger of BI-LO and Winn-Dixie,” said Randall Onstead, chairman of Greenville, S.C.-based BI-LO, in a statement. “With no overlap in our markets, the combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service.” BI-LO currently has 207 stores in North Carolina, South Carolina, Georgia and Tennessee, and Jacksonville-based Winn-Dixie has 480 stores in Florida, Alabama, Louisiana, Georgia and Mississippi. The stores will continue to operate under their current banners. Under the terms of the agreement, BI-LO will acquire all outstanding shares of Winn-Dixie stock in the merger, valued at $560 million. Shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, a premium of approximately 75 percent more than the closing price of Winn-Dixie common stock on Dec. 16, which was $5.43 a share, down from $6.92 a year ago. Upon completion of the merger, Winn-Dixie will become a …

MIAMI —Liberty Property Trust (NYSE: LRY) has plans to develop the 1.6 million-square-foot Miami International Tradeport, a $135 million industrial park located on Florida’s Turnpike, south of Okeechobee Road in Miami. Coconut Creek, Fla.-based Butters Construction & Development has been selected to oversee construction of the park. “We feel there is a tremendous opportunity for well-designed and located industrial product in Miami-Dade County, and we are excited to begin development and to grow our footprint in South Florida,” said Andy Petry, vice president and city manager for Malvern, Pa.-based Liberty. Currently, the company is moving through the entitlement process with final zoning approval anticipated in January. Institutional-grade warehouse and distribution space will be included in the park. Construction on the first speculative distribution buildings is slated to begin in late 2012, along with the basic infrastructure for the park. The project will be built in phases during the next 5 to 7 years, and will create 4,000 new construction jobs and 2,000 full-time jobs upon completion. “Miami is quickly becoming one of the top industrial gateway cities in the United States and is considered, along with Southern California, as one of the uber-core markets where all the institutional real estate …

CHICAGO — McShane Development Co. has launched Union Pointe, a 100-acre industrial and office business park in Woodridge, Ill., that offers build-to-suit sites for industrial and office users. Situated at the northeast quadrant of I-355 and I-55, Union Pointe is readily accessible from O’Hare International Airport, Midway Airport and DuPage County Airport and able to accommodate the needs of distribution, industrial and corporate office users. Edward Don & Co., a food service equipment and supplies distributor, has selected Union Pointe as the location for its new 362,500-square-foot office headquarters and distribution center. The family-owned firm, celebrating its 90th year in business, will relocate its operations and nearly 400 employees from its current facility. The contemporary facility will feature 55,000 square feet of office space, 32-foot clear height ceilings, 38 external docks, two drive-in doors and parking to accommodate 20 trailers and 380 vehicles. The two-story office and industrial building incorporates a modern ESFR sprinkler system and numerous sustainable features such as T-5 lighting throughout the warehouse. The facility, which will be leased to Edward Don & Co. for 20 years, is currently under construction and will be situated on a 20-acre parcel with prominent visibility along I-355 and I-55. Rosemont, …

NEW YORK CITY — Englewood, Colo.-based Archstone has purchased the 209-unit Eastbridge Landing, an apartment high-rise located at 377 E. 33rd St. in the Manhattan’s Kips Bay neighborhood, for $131 million. The sellers were Madison International Realty and RFR Holding. The building will be renamed Archstone Kips Bay. “Kips Bay and Murray Hill are among the most sought after neighborhoods in one of the most vibrant cities in America,” said Charles Mueller Jr., COO of Archstone, in a statement. “Our talented operations team is looking forward to adding even more value to the incredible location through our commitment to providing best-in-class customer service.” The building contains one-, two-, three- and four-bedroom apartments with large windows, city views, wood flooring, European cabinetry and granite countertops. Some units include washers and dryers, fireplaces and/or terraces. Amenities include a media room with a kitchen and a fully equipped fitness center. “We are extremely excited about being back in the business of acquiring incredible apartment communities in the best neighborhoods in the country,” said R. Scot Sellers, CEO of Archstone, in a statement. “Archstone Kips Bay will increase our presence in New York, one of our core markets, to 14 apartment communities.” Archstone focuses …

ST. LOUIS — Behringer Harvard and Kingsdell LP have secured a $59 million loan from PFP Holding Co. LLC for the refinancing of Chase Park Plaza in St. Louis. The floating-rate loan will replace the existing debt that has reached maturity. Chase Park Plaza is a roughly 1 million-square-foot, mixed-use complex, located in the Central West End of the city. It includes 338 hotel rooms, 82 condo units, and 51 corporate apartments. The property also has five food outlets and 35,000 square feet of retail space. Dallas-based Behringer Harvard purchased a 95 percent majority interest in the property in 2006. According to a Nov. 15 SEC filing, the three-year loan has two extension options of 12 months each. The loan bears an interest rate of LIBOR, capped at 3 percent, plus 6.75 percent. “The Chase Park Plaza is an irreplaceable luxury hotel that is on the cusp of capitalizing on the resurgence in demand and upturn of the St. Louis lodging market,” said Mathew Comfort, executive vice president of Jones Lang LaSalle, in a statement. “Anticipated gains in the the coming years represent a substantial opportunity for Behringer Harvard to capitalize on both increased RevPAR and NOI growth.” The Chase …